Final

Risk & Return Analysis Of Sector Scripts
JAIN COLLEGE OF ENGINEERING

Belgaum -590014
Summer Project Report On Risk & Return Analysis of Sector Scripts

UNDER TAKEN AT
RELIANCE MONEY
BELGAUM Submitted in the partial fulfillment of the requirement for the Award of the
Master of Business Administration

During the Academic Year 2011-2012 Submitted by Mr. Basavaraj Moodalagi
USN Number 2JI10MBA13 Under the Guidance of External Guide Mr.Nithin K S Reliance Money. Belgaum Internal Guide Pro. Rohit Raj JGI Belgaum
JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI
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JAIN COLLEGE OF ENGINEERING (MBA)

Belgaum-5900 18 MASTER OF BUSINESS ADMINISTRATION
Certificate
Certified that the Summer Project carried out by Mr. Basavaraj.Moodalagi, USN 2JI10MBA13, a bonafied student of Jain College Of Engineering, Belgaum in partial fulfillment for the award of Master of Business Administration of the Visvesvaraya Technological University, Belgaum during the year 2011-12.
It is certified that all correction/suggestions indicated for internal Assessment have been incorporated in the Report. The project report has been approved as it satisfies the academic requirements in respect of project work prescribed for the said Degree.
Institute Guide (Prof. Rohit Raj) External Viva Name of the Examiners 1. 2.
Director (Dr. D.G.Kulkarni)
Signature with Date
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Declaration
I Basavaraj Moodalagi here by declare that the project report entitled At Reliance Money,Belagaum has been prepared by me during the year
2011-2012 under the guidance of Prof. Rohit Raj , management faculty of Jain College of Engineering, Belgaum. I also hereby declare that this project has not been submitted at any time to any other institute or university for award of any degree or diploma.
Place: Belgaum Date:
Mr. Basavaraj.Moodalagi (Jain College of Engineering, Belagaum)
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ACKNOWLEDGEMENT.
The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without mentioning the people who made it possible, whose constant guidance and encouragement served as a beckon of light. At the outset, I would like to place on record, my sincere thanks to all who have supported me through out to complete this project I firstly like to thank Mr. Vinod Aralikatti branch manager of Reliance Money Ltd and Mr. Ravi. from Reliance Money Ltd, Belguam for their kind permission to undertake this project. And I also thank to Mr. Nithin K.S. , Mr. Ravi J and Mr.Praveen for guiding me through out for my project completion. I am also sincerely thankful to all the members of organization, who at various instances have been very helpful in furnishing information and making this project possible. My Heartly thanks to our beloved Prof. Rohit Raj, who helped me through out the project. My thanks are due to Head of the Institute Dr.D.G.Kulakarni,Director Jain College of Engineering,MBA Dept. for his support and help throughout my project. I am indebted to my family for the strength and support they have given me and to all my friends who have pitched in to help me with numerous frills of this project Mr. Basavaraj.Moodalagi
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INDEX
S NO CONTENTS PART- A 1 2 3 4 5 6 7 Executive Summary Industry Profile Company Profile MC KINSEYS 7Ss MODEL SWOT Analysis Analysis of Financial Statement Learning experience in Reliance Money PART-B 8 9 10 11 12 13 14 15 16
17
Page No
6 7 8-18 19-24 25-26 27-29 30
Statement Of The Problem Objectives Of The Study Scope Of The Study Methodology Limitations Of The Study Analysis And Interpretation Findings Suggestions Bibliography Annexure
31
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PART-A
EXECUTIVE SUMMARY
India has registered a growth rate of 6-7 percent in FY 2009-10 and is one of the fastest growing economies in the world. It has emerged as the world's fastest growing wealth creator, thanks to a buoyant stock market and higher earnings. A number of Indian companies surpassed last year's net profit in just six months of the current fiscal, reflecting an accelerated growth in corporate earnings. Forty-four per cent of Top 100 Fortune 500 companies are present in India.The stock exchange comes in the secondary market. Stock exchange performs activities such as trading in share, securities. Stock broking industry is growing at an enormous rate, as more and more people are attracted towards stock exchanges with the hope of making profits. The project deals with a brief introduction to stock market, how to invest in stock market, as the investors are more concerned of return and they want to be far from risk so I have done the risk return analysis of six sectors and three companies in each sector. The core area of this project focuses on risk return analysis of sector scripts. Which tell an advisory about the risk level of each company in each sector? This project contains some elementary statistics which are used in calculation which help in drawing inferences.
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1. INDUSTRY PROFILE
This project pertains broadly to the financial service sector. In today's corporate and competitive world financial sector has the maximum growth and potential as compared to other sectors. Financial products have the maximum growth rate of 7080%while FMCG has maximum 12-15% of growth rate. In last few years, India has emerged as the one of the most rapidly growing economies in the world. India has been categorized with nations like Brazil, Russia and China (BRIC Nations) who are going to be the prime drivers of world economy in next few decades. Since the time, India first opened its gates to foreign investment (FDI & FII), there has been a complete turnaround. Now the traditional Hindu rate of growth is a thing of past and clocking 8%-9% GDP growth rate is the common norm. India along with other Asian powerhouse China makes for the fastest growing nations in the entire world. Even in the case of ongoing global recession, India has managed to perform far better than other nations.' Right from banking system to financial regularities, the country has thrived on discipline and out-performance. The booming Indian economy resulted in widespread growth and arrival of new industries. All these resulted in a most sparkling phenomenon in the form of financial market renovation of India. Financial services in India has' taken a giant leap from the days of standing in banks queue for several hours for opening a saving account or trying to get some fixed deposits (FD) done. The financial services have increased manifold and now people have the choice to choose the one that most suitably fits the bill. There are several services like broking firms, investment services, financial consulting, evergreen national banks, numerous private banks, mutual funds, car and home loans, equity market and other banking services. Services are many and offered by blue chip names of the industry.
Most of the companies in financial segment offer consultancy services and all the services of wide financial gamut.
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2. COMPANY PROFILE
An attempt is being mobilized to present a brief profile of Reliance Money. The discussion in this chapter has come to end with suitable conclusions. Reliance Group The reliance group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private sector enterprise, with the business in energy and materials value chain, Groups annual revenues are in excess of US$ 34 billion. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$300(Around Rs.140000). Over the next three and a half decades, he converted his fledgling enterprise into an Rs.60000 crore colossus_ an achievement that earned Reliance a place on the global fortune 500 list, the first ever Indian private company to do so. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, reliance pursued a strategy of backward vertical integration- in polyester, fibre intermediates, plastics petrochemicals, petroleum refining and oil and gas exploration and production to be fully integrated along the materials and energy value chain. The groups activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail. The group export products in excess of US$ 20 billion to 108 countries in the world. Major group companies are reliance industries limited (including main subsidiaries Reliance petroleum limited and reliance retail limited) and reliance industrial infrastructure limited.
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a) Background and Inception of Reliance Money

Reliance Money started operations in April 2007. The company is adding about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh customers and the traded volumes have crossed about Rs 1,200 crore It has tied up with Chicago-based Alaron Trading Corporation, a global, full-service commodity futures brokerage firm. !'Expanding our global presence, especially with a company of the stature of Reliance Money, allows Alaron to seamlessly embrace the rapid expansion in the futures market," Scott Slutsky,. Managing Director of Alaron Trading, told news agencies. Alaron's tradings platforms offer direct access to virtually every electronic and pit-traded contract in the world. Reliance Money will facilitate the trading process through its 88 branches and 2,200 outlets in India."Through this important window provided by Alaron, our customers in India will be in a position to readily trade international commodity futures in a cost effective, convenient, and secured manner," said Sudip Bandyopadhyay, Director of Reliance Money. The Reliance - Anil Dhirubhai Ambani Group is among India's top three private sector business houses on all major financial parameters, with a market capitalization of Rs.325,000 crores (US$ 8 billion), net assets in excess of Rs.115,OOO crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion). Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 20000 towns and 4.5 lakhs villages in India, and 5 continents across the world.
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b)Nature of the business carried:

Reliance money is carrying business such as it is giving a service of online trading with less brokerage Charge, and it also having financial products such as Life Insurance . General insurance giving investment facility in Equity, mutual fund, PMS, and also it is carrying a Money transfer and money exchange, and also dealing with gold coins.
c)Vision Mission and Quality Policy

Vision The vision of Reliance Money is to achieve & sustain market leadership; Reliance Money shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Reliance Money shall strive to meet and exceed customer's satisfaction and set industry standards. Mission The mission of the company is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership. position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics. Quality policy Talented, efficient and competent team of youngsters rolling out high profile applications for the global business community, keeping in mind true quality, total customer satisfaction, delivering on time, right time, every time.
Creatively involved in providing high quality products and services through: Responsiveness to customer needs. Provision of work satisfaction and promising careers. . Constant measurement and monitoring of all operations. Continuous improvements of procedures, products, and services; and Performance of operations in a responsible manner.
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d)Product and Service Profile
'Reliance Money provides a comprehensive platform, offering an investment avenue for a wide range of asset classes. Its Endeavour is to change the way India transacts in financial markets and avails financial services. Reliance Money currently offers its services in Broking and Distribution of Financial Services and Products. Equity Separate Dealing Room for HNI, Institutional & Corporate Clients at the branch office in Belgaum, managed by expert dealers Relationship Manager assigned for each large relationships. Tools that help plan investments, tax, retirement, etc. Risk profile analyzer Asset allocators to build an appropriate investment portfolio..
Equity and Commodity Derivative Trading and Clearing membership of BSE, NSE, MCX and NCDEX providing broking services in Equity, Equity & Commodity Derivatives Option of on-line as well as off-line trading Trading is completely secure with 3 levels of security i.e. User ill, Password and Security Token, which is available only with Reliance Money Portfolio Management Services (PMS) Investors get regular statements and updates on the investments
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Investors get access to Relationship Managers Financial Advisors through whom they dill interact with Fund Managers to discuss their portfolio
Wealth Management Services End to end Wealth Management Services. Assessing financial health and risk profiling of the client. Tax Advisory includes buying, selling, renting and valuation of properties.. Mutual Funds Distribution of equity and debt products from leading AMCs including structured products such as Portfolio Management Services. Financial Planning Through SIPs. Systematic Investment Plans (SIPs) SIP is a method to increase exposure to equities gradually over a long period of time say over 5-10 years by investing in equity funds by using the concept of rupee cost of averaging. Disciplined investing in equity funds over longer time frames coupled with power of compounding helps generate superior returns. SIP provides better downside protection as the amount invested each month is very small compared to the overall investment.
IPO IPO Distribution: Reliance Money distributes all IPOs (Book Building as well as Fixed Priced) pan India through its distribution channel (Online + Offline) and helps get IPO Investment benefits by providing end to end assistance Life and General Insurance Life Insurance Reliance Money provides Life Insurance that helps provide financial assurance and securities for your dependents and loved ones. Life Insurance products offer comprehensive financial solutions which besides offering financial security also provide opportunity for saving, investment and tax planning..
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General Insurance Reliance Money extends various General Insurance products with an exhaustive range of insurance policies that covers most risk including Motor, Health, property, Marine, Casualty, Credit and Liability Pure Gold Coin Gramm age: 0.5 gram, 1 gram, 5 gram and 8 gram, Pure Gold Swiss Coins Purity: 24 carat, 99.99% pure Fineness: 999.9 (Highest purity that can be achieved in Gold) Packaging: Available in a see through, tamper-proof packaging with a certificate of purity from Swiss Assayer Availability: All India, across all Reliance Money and Reliance World outlets Reliance General & Life Insurance:
Reliance General Insurance

Reliance General Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group and a Subsidiary of Reliance Capital, is one of the first non-life companies to get the license from the IRDA. Reliance General Insurance is India's fastest growing general insurance company and the top 3 private sector insurers and has 14% private sector market share. Reliance General Insurance has 200 branches across 171 cities and over 4600 intermediaries. It has around 3 million customers. Motor Insurance is the largest business. Health and SME are the fastest growing sector. Key Achievements Reliance General Insurance is 3rd Largest Pvt Sector Insurance Co with 100% Indian Equity 1st Private Sector Non Life Insurance Company to get licensed from the IRDA in October 2000 Solvency ratio of 1.88 much above the stipulated ratio of 1.50
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Balanced portfolio of all product classes with strong retail focus Written around 27 lac policies till Dec 09 and have settled around 2 lac claims Implementation of Process Excellence in form of BPMS and 6 Sigma efficiency standards & ISO Certified Company
Reliance Life Insurance
Reliance Money assists its clients in choosing a customized plan which will secure the familys future and their expenses post-retirement. Clients can choose from different plans of almost all Insurance Companies where they can invest their money. Clients can choose from products and services that channelize their savings and protect their needs while guaranteeing security and returns for life. A team of experts will suggest the best Insurance scheme which suits the clients requirement.
Reliance Life Insurance, a part of the Reliance - Anil Dhirubhai Ambani Group is India's fastest growing life insurance company and among the top 4 private sector life insurers with a market share of 10.2%. There are 4 million customers. Reliance Life Insurance is the highest number of policies sold in private sector. It has the vast distribution network of 1,247 branches and over 1,95,000 agents. It offers 26 products covering savings, protection & investment requirements. Reliance Life Insurance will endeavour to attain a leadership position in the market over the next few years, by further expanding and strengthening its distribution network and offering a diverse array of products to suit the varied and specific needs of individual customers.
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e) Area of Operation:
Reliance Money offers the services not only in Belgaum but also all over India. Reliance money is one of the leading brokerage and distributors of financial products in India. Operation in India As on March 31, 2011 Reliance Money had a distribution network of 10,350 outlets across5,165 locations in India. The Reliance Money had few overseas branches which includes Hong Kong, Malaysia, Muscat and Nigeria
f) Ownership pattern:
Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 in terms of net worth. Reliance Money, a Reliance Capital company, is part of the Reliance Anil Dhirubhai Ambani Group. It is a comprehensive financial services and solution provider providing customers with access to Equity, Equity and Commodity Derivatives, Portfolio Management Services, Mutual Funds, IPOs, Life and General Insurance and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. The largest braking house in India with over 2.5 million customers and a wide network of over 10,000 outlets and 20,000 touch points in5,000+ locations. The average daily volume on the stock exchanges is Rs. 2,000 Crores, representing approximately 3% of the total stock exchange volume. The Reliance - Anil Dhirubhai Ambani Group has a market capitalization of Rs.325, 000 crores(US$ 81 billion), net assets in excess of Rs.115,OOO Crores (US$ 29 billion), and net worth to the tune of Rs.55,000 Crores (US$ 14 billion). Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. It has a business presence that extends to over 20000 towns and 4.5lakhs villages in India and 5 continents across the world.
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g) Competitors Information:
Reliance Money is facing a stiff competition from following brokers in Belgaum city ICICI Direct, Share Khan, India Bulls HDFC Securities, RELIGARE,KOTAK Securities
h)Infrastructural facility:
The Reliance Securities ltd is located in Belgaum- congress road. The company has rented property: Total Area rented by the company is located Built in Area of the company : 2,000 square feet. : 2,000 square feet.
All the members of the company employees are good in communication. Also good information air technology support is available. Cleanliness is given utmost importance in the company. There are air- conditioners, proper lighting and ventilation and Tele communication facilities. The Reliance money company also provides Travel allowances, and Medical allowance facilities to the employees and parking facility is also available.
NETWORK The local area networks are deployed using Cat6 cables for data and Cat6 cables for voice with the fancily to create segregated virtual user and corporate LANS. More recently Reliance money has also started migrating to the MPLS network to connect with their branches and provide world class infrastructure at each of our location.
i)Key Achievements:
Reliance Money Belgaum Branch has got best performance branch in making Demat account and also in trading in zonal level in the year 2008-09. Best performing business for the year 2010-11&also highest revenue generator for commodity business in the year 2010-11.
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Work Flow Model:
Reliance money
Bank interface
Surveillance.
Administrative Server.
BSE/ NSE Terminal.
D P Interface.
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j)Future growth & prospects:

The growth of financial sector in India at present is nearly 8.5% per year. The rise in the growth rate suggests the growth of the economy. The financial policies and the', monetary policies are able to sustain a stable g rowth rate. The reforms pertaining to the monetary policies and
the macroeconomic policies over the last few years have influenced the Indian economy to the core. The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth of the financial sector in India. To maintain such a growth for along term the inflation has to come down further. The financial sector in India had an overall Growth of 15%, which has exhibited stability over the last few years, although several other markets across the Asian region were going through turmoil. The development of the system pertaining to the financial sector was the key to the growth of the same. With the opening of the financial market variety of products and services were introduced to suit the need of the customer. The Reserve Bank of India (RBI) played a dynamic role in the growth of the financial sector of India.
Future prospect of Reliance Money Reliance Money, the financial services arm of Reliance Capital Ltd, plans to launch portfolio management services (PMS), where managers will create a basket of stocks for each client, based on individual needs, for amounts as low as Rs5 lakhs.Such services are popular in India but, almost all the offerings of large finance companies target high net worth individuals (HNIs) with the ability to invest Rsl Crore and above Reliance Money, which helps clients invest in equities, derivatives and commodities, will typically offer such services for amounts between Rs5 lakhs and Rs75 lakhs; Rs5 lakhs is the smallest amount the industry's regulator mandates for PMS. Reliance Money will launch its PMS ion December and will especially target executives and professionals in metros and smaller towns.
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3) MC-KINSEY'S 7S Frame Work:

The 7-S model is better known as Mc-Kinsey 7-S. The Mc-Kinsey 7-S model is widely discussed framework for viewing the inter relationship of strategy formulation and implementation. It helps to focus manager attention on the importance of linking the chosen strategy to a variety of activities that can affect the implementation of strategy. Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful. Hard and soft elements The 7-S elements are distinguished in so called hard S's and soft S's. The four softS like Style, skill, staff and shared values are hardly feasible. Hard and soft elements of MC KINSEYS 7s model
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Hard elements "Hard" elements are easier to define or identify and management can directly influence them. These are strategy statements, organization charts and reporting lines and formal processes and IT systems. The hard elements like structure, system and strategy are feasible and easy to identify. Soft elements Soft elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The way the model is presented in below depicts the interdependency of the elements and indicates how a change in one affects all the others
Mc Kinneys 7-s framework with reference to company profile
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Now 7S can be understood pertaining to Reliance Money

1) Strategy: Strategy is the planning devise to maintain and build competitive advantage over the competition. The main strategies made by Reliance money The main strategy is to maintain the consistency in quality and provide good quality services to their clients. To attain global best practices and become world class financial services To Enterprise- guided by sophistication and maturity. To adapt new technologies fast. Reliance Money has 4 departments IN BELGAUM BRANCH and the details of the same are as following Marketing, HR, Operations, Administration department Administration Department Administrators are basically facilitators of the company. They take care of all the facilitating activities of all the departments. They help in coordinating different activities in an organization from selecting the location of the outlet to providing necessary infrastructure and maintaining the same. Main Activities of Administration Department: Selecting the location. Providing with the required infrastructures like computers, furniture, fittings &fixtures, air conditioners etc. Providing the storage facility. Looking after Marketing, Branding, and Legal, Sales and Distribution, payment of salaries and other payments required for the functioning of day to day activities its purpose to move towards greater degree of
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Sales and Distribution Department In Reliance Money sales and distribution department plays an important role in the following way Collecting the leads from the website, kiosks and trainees. Contacting the clients through direct contact or mails. Explaining the features of the products. Explain about the essential documents. Facilitate the customers with a Demo. Marketing Department Marketing is the delivery of customer satisfaction at a profit. Marketing, any other business function deals with customer. Creating customer value and satisfaction are the heart of the modem marketing. Therefore two fold goal marketing is to attract new customers by promising superiors value and to keep current customers by delivering satisfaction. In Reliance Money marketing highlights on Understanding consumer needs and wants. Value satisfaction and quality. Products and services. Exchange, transfer and relationship.
Human Resource Department HR Functions in Reliance Money: Talent acquisition Talent development Talent management Operation Department The role of operation department is to carry out the policies and underwriting works. The other functions include performing the day to day activities as well as smooth functioning of enterprise business.
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Following are the important functions of the operations department of Reliance Money Issuing the policies. Verification of the documents. Settling down the claims. Charges deduction. Dispatching the policy documents. Settling the customer's problems. Making records related with the customers. Follow up. Finance Department Responsibilities of Finance Department in Reliance Money are: To provide account and complete systematic information of financial activities To maintain all the books of account and other financial documents
2) Skills It means the actual skills and competencies of the employees working for the company and the company itself. 3) Style In Reliance Money the leadership is not much effective as the groups are not performing as real team. In the team also they have competition which affects the team culture. 4) Systems The systems consist of formal and informal procedures, including innovation systems, compensation systems. The systems also include data collection, storage and utilization for record and appraisal purposes. (Management information systems i.e. reports of various departments, financial information system i.e. marketing and sales information, employee information system. 5) Staff The staff of Reliance Money is divided into national head, regional head, zonal head cluster head and centre manager, and minimum education for the managers is master degree in MBA and work experience.
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Reliance money adopts various training facilities to, Upgrade the skills of the employees Enable the employees to contribute towards organizational objectives. Facilitating a self learning The company has developed skills and expertise in sales and marketing of Demat, insurance, and other products 6) Shared values Shared values also refer to the values and beliefs of the company. The value helps the members in the organization to achieve effective goals. The Reliance Money is committed to abide to the following values and responsibilities: Be a lean, responsive and learning organization. Continuously improve to achieve world-class standards and total customer satisfaction. Maintain cost effective service to the customer. Ensure a common culture and a common set of values throughout the organization Recognize individuals' contributions. Develop stronger leadership skills, greater teamwork and a global perspective.
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4) SWOT ANALYSIS Reliance Money Belgaum

SWOT analysis means analysis of the internal strengths and weakness of the Reliance money and also analysis of external opportunities and threats of the company.
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Strength:
On line share trading. Flexible organization Low brokerage services High speed trading Brand name of the Company. No hidden charges. Customer education center Convenient & Safe Single - Window Access Cost effective Value-Added services
Weaknesses:
No Service in Rural Segment. Clients are still comfortable with traditional way of trading. For the intraday system automatically sell the shares at 2.55p
Opportunities
More Potential Market. Awareness through Media. Foreign Direct Investments & Foreign Institutional Investors in Indian markets.
Threats
Market fluctuations Government polices and war atmosphere from neighboring countries. Competition from banks and insurance sectors. Indian market is still in the infant stages in online trading. Internet is not available in major part of the nation.
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5) ANALYSIS OF FINANCIAL STATEMENT
Key Financial Ratios of Reliance Capital
------------------- in Rs. Cr. ------------------Mar '07 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations 95.11 91.19 91.53 86.17 86.17 82.78 82.78 13.86 13.19 13.16 12.03 88.80 87.13 87.99 74.22 74.22 73.24 73.24 11.84 12.51 12.54 210.12 80.65 79.34 79.83 54.11 54.11 49.30 49.30 10.83 17.01 18.39 245.29 79.74 77.95 79.02 34.83 34.83 32.48 32.48 11.48 14.45 15.18 272.66 72.59 71.63 71.82 14.52 14.52 14.30 14.30 9.02 4.92 4.74 280.32 10.00 3.20 27.61 29.03 159.10 -10.00 3.50 31.58 35.56 182.47 -10.00 5.50 67.87 84.15 209.29 -10.00 6.50 95.45 119.69 228.78 -10.00 6.50 69.94 96.35 233.68 -Mar '11
Mar '08
Mar '09 Mar '10
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Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital
12.03 14.02
210.12 11.84
245.29 10.83
272.66 15.37
280.32 9.85
11.60 11.57 0.04 0.04
19.36 19.34 0.27 0.27
10.18 10.14 1.55 1.55
1.57 26.31 2.02 1.26
2.48 7.43 1.72 1.49
13.15 0.04 13.67 13.41
18.24 0.27 18.40 16.32
4.07 1.55 4.11 3.55
1.91 2.02 1.93 1.80
1.35 1.72 1.34 1.28
-28.50 --0.15 1.72 --1,044.8 8
-5.88 1,081.71 -0.13 2.95 --1,660.58
-9.41 --0.13 6.39 ---
-22.05 ---8.79 ---
-23.35 ---12.54 --1,216.9 3
1,831.07 1,412.84
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Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times 15.12 14.50 84.84 85.47 0.30 15.56 15.39 84.48 84.64 2.14 15.41 15.15 85.75 85.96 8.29 19.29 18.88 81.63 82.01 13.27 55.03 52.24 42.80 45.81 34.69 ----------1.11 ---2.14 ---5.06 --
Mar '06 Earnings Per Share Book Value 24.12 182.75
Mar '07
Mar '08 Mar '09
Mar '10 13.82 283.31
26.31 210.12
41.75 245.29
39.41 277.10
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6) Learning Experience
It was great working experience with Reliance money Belgaum. The company is well situated and it follows the policies and procedure every day. I got to know the function and various responsibilities of manager in the organization.
The company works from 9.00 AM to 3.30 pm every day expect Sunday, which the states the good time management. I learnt the trading system and process of buying and selling of securities (both inter day and intraday). I understood the application of theoretical concept in to decision making in the organization.
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PART-B
TITTLE OF THE STUDY: Risk and Return Analysis of Sector Scripts STATEMENT OF THE PROBLEM:
OBJECTIVES OF THE STUDY: A)Risk & Return Analysis of different sector scripts for a period of one year (1st April 2009 to 31th March 2010) B) Sub Objectives: 1) To find out the return & riskiness level of three different sectors i. IT Sector ii. Banking Sector iii. Pharmaceutical Sector 2) To find out which company is preferable for investors 3) To find out the return & riskiness level of the different sectors & which sector is preferable.
SCOPE OF THE STUDY:
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METHODOLOGY :
To carry out this project, secondary data are collected which includes Market price, Stock Index, Using tools like : Mean ()= X = x/N Beta ()= =
Nxy (x) (y) Nx - (x)2

2
Standard Deviation ()=
= (x x) 2 N
LIMITATIONS OF THE STUDY :

A study restricted to the Belgaum branch office which covers the Belgaum territory. And only selected sectors which are listed at NSE
Banking sector Cos:

1) State bank of India 2) ICICI Bank lt 3) Axis bank
IT Sector Cos :
1) Infosys 2) Wipro 3) Hcl
Pharmaceutical Sector Cos:

1) Ranbaxy 2) Dr. Reddys 3) Sun Pharma
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INTRODUCTION ABOUT TOPIC RISK AND RETURN:

A company, which has a high intrinsic worth, is not necessarily the best stock to buy. It may have no growth prospects or it may be overpriced .similarly a company that performs well during any one year may not be the best to buy .on the contrary, a company which has been badly for sometime might have turn the corner and it may be the best to buy, as its shares may be under prices and it has good prospects of growth hence an analysis of risk or return guides an investor in proper profitable investment. RETURN: Return is the primary motivating force that drives investment .it represents the reward for undertaking investment. Since the game of investing is about returns, measurement of realized return is necessary to assess how well the investment manager has done. In addition historical return is often used as an important input on estimating future return. THE COMPONENT OF RETURN: The return of an investment consists of two components. Current return the component that often comes to mind when one is thinking about return is the periodic cash flow such as dividend or interest generated by the investment .current return is measured as the periodic income in relation to the beginning price of the investment. Capital return the second component of return is reflected in the price change called the capital return, it is simply the price appreciation (or depreciation) divided by the beginning price of the assets. Thus total return =current return + capital return
RISK Risk refers to the possibility that the actual outcome of an investment will differ from its expected outcome .more specifically, most investors are concerned about the actual outcome being less than the expected outcome .the wider the range of possible outcomes the greater the risk. DIFFERENT TYPES OF RISK Forces that contribute to variance in return-price or dividend-constitute the element of risk. Some influence are external to the organization cannot be controlled other influence are internal to the organization that are controllable to a large extent .in an investment decision those factors which is uncontrollable is called systematic risk .on the other hand those factors are controllable and internal to the organization are called unsystematic risk these are the two broad categories of risk.
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SYSTEMATIC RISK. It is also called as undiversifiable risk or market risk. A good example of a systematic risk is market risk. The degree to which the stock moves with the overall market is called the systematic risk and denoted as beta. Risk caused by factors that affect the prices of virtually all securities, although in different proportions. Examples include changes in interest rates and consumer prices. Although it is not possible to eliminate systematic risk through diversification, it is possible to reduce it by acquiring securities MARKET RISK This is the most familiar of all risks. Also referred to as volatility, market risk is the day-to-day fluctuations in a stock's price. Market risk applies mainly to stocks and options. As a whole, stocks tend to perform well during a bull market and poorly during a bear market -volatility is not so much a cause but an effect of certain market forces. Volatility is a measure of risk because it refers to the behavior, or "temperament", of your investment rather than the reason for this behavior. Because market movement is the reason why people can make money from stocks, volatility is essential for returns, and the more unstable the investment the more chance there is that it will experience a dramatic change in either direction. Market risk is caused by investors reaction to the tangible as well as intangible events. Expectation of lower corporate profile in general may cause the larger body of common stocks to fall in price .investors are expressing their judgment that too much is being paid for earning in the light of anticipated events .the basis for the reaction is a set of real, tangible, events political, social or economic. INTEREST RATE RISK Interest rate risk is the risk that an investment's value will change as a result of a change in interest rates. This risk affects the value of bonds more directly than stocks. the root cause of interest rate risk lies in the fact that ,if the RBI increase or decrease the interest rate (repo rate ) the interest on government securities rise or fall ,the rate of return demanded on alternative investment vehicle ,such as stocks and bonds issued in the private sector ,rise or fall .in other words as the cost of money changes for nearly risk free securities, the cost of money to more risk prone issues will also change.
INFLATION RISK (PURCHASING POWER RISK) The loss of purchasing power due to the effects of inflation. When inflation is present, the currency loses its value due to the rising price level in the economy. The higher the inflation rate, the faster the money loses its value. LIQUIDITY RISK The uncertainty associated with the ability to sell an asset on short notice without loss of value. A highly liquid asset can be sold for fair value on short notice. This is because there are many interested buyers and sellers in the market. An illiquid asset is hard to sell because there there few interested buyers. This type of risk is important in some project investment decisions but is discussed extensively in Investment courses.
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FOREIGN EXCHANGE RISKS Uncertainty that is associated with potential changes in the foreign exchange value of a currency. There are two major types: translation risk and transaction risks. TRANSLATION RISKS Uncertainty associated with the translation of foreign currency denominated accounting statements into the home currency. This risk is extensively discussed in Multinational Financial Management courses. TRANSACTIONS RISKS Uncertainty associated with the home currency values of transactions that may be affected by changes in foreign currency values. This risk is extensively discussed in the Multinational Financial Management courses. UNSYSTEMATIC RISK Unsystematic risk are those risk which is firm specific or peculiar to a firm or industry the different type of unsystematic risk are discussing below. BUSINESS RISK The uncertainty associated with a business firm's operating environment and reflected in the variability of earnings before interest and taxes (EBIT). Since this earnings measure has not had financing expenses removed, it reflects the risk associated with business operations rather than methods of debt financing. This risk is often discussed in General Business Management courses. Business risk can be divided into two board categories: external and internal .internal business risk is largely associated with the efficiency with which a firm conduct its operation within the border operating environment imposed upon it .each firm has it s on internal risk, and the degree to which it is successful in coping with them is reflected in operating efficiency.
FINANCIAL RISK The uncertainty brought about by the choice of a firms financing methods and reflected in the variability of earnings before taxes (EBT), a measure of earnings that has been adjusted for and is influenced by the cost of debt financing. This risk is often discussed within the context of the Capital Structure topics. By Engaging in debt financing the firm changes the characteristics of the earning stream available to the common stock holders, specifically ,the reliance in debt financing ,called financial leverage ,has at least three important effect on common stock holders.1)increase the variability of their return 2)effect their expectation concerning to the return 3)increase the risk of being ruined .
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INVESTMENT Investment is the employment of the fund with aim of achieving additional growth in value. An investment is a sacrifice of current money or other resources for future benefits. It is the allocation of monetary resources to assets that are expected to yield gain or positive return over a given periods of time .it involves the commitment of resources which have saved or put away from current consumption in the hope that some benefits will accrue in future. The three key aspects of any investment are time capital gain and risk the sacrifice takes place now and is certain .the benefits are expected in the future and tend to be uncertain. Risk: investment is considered to involve limited risk and is confined to those avenues where the principle is safe. No investments are completely risk free Capital gain: If purchase of securities is preceded by proper investigation and analysis and review to receive a stable return over a period of time it is termed as investment. Time: A longer time, fund allocation is termed as investment. The investor constantly evaluates the work of a security. There has to be a constant review of securities to find out whether it is a suitable investment. The investment is an attempt to carefully plan, evaluate and allocate funds in various investments which offer safety of principal, moderate and continuous return and long term commitment. INVESTMENT DECISION In stock market parlance investment decision refers to making a decision regarding the buy and sell orders. As we know economic analysis or factors play in any investment decision which is made for making a gain and better returns. Economic analysis and forecasting company performance and of returns is necessary for making investment. Any investment is risky and such investment decision is difficult to make. It is based on availability of money and information on economy industry and company, share prices are ruled by expectation of the market and the market sentiments. As we know these decisions are influenced by availability of money and flow of information. What to buy and sell also depends on the fair value of shares and the extent of over valuation and under valuation. For making such a decision the common investors have to depend more up on a study of fundamental rather than technical, although technical are also important.
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INTRODUCTION ABOUT BETA & RETURN

Many efforts have been expended on developing a measure of risk and system for using this measure in assessing returns. The two key components of that have emerged Beta and the capital asset pricing model, which links risk that is Beta to the level of required return. Beta measures the non diversifiable risk. Beta shows how the price of a security responds to market forces. The more responsive the price of a security is to changes in the market, the higher will be its Beta. In simple Beta is calculated by relating the returns on security with the returns for the market. And the market return is calculated by the average return of a large sample of stock, such as the S&P 500 stock Index. The Beta for the overall market is equal to 1.00 and other betas can be positive or negative. Investor find Beta helpful is assessing systematic risk and understanding the impact market movements can have on the return expected from a share of stock.
For example: if the market is expected to provide a 10% rate of return over the next year, a stock having a beta of 1.80 would be expected to experience an increase in return of approximately 18% (1.80*10%) over the same period. This particular stock is much more volatile than the market as a whole.
Steps for calculating Beta:
Take the closing stock price of the various companies considered for analysis.
Take the Nifty price for the dates considered for analysis.
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Calculating the stock return: Y
(Closing price of current day) (closing price of previous day) Stock return = ---------------------------------------------------------------------------(Closing price of previous day)
This is denominated as Y which is a dependent variable as it directly dependent on the Index.
Calculating the Market Return: X
(Current days index price) (previous days index price) Market return = -------------------------------------------------------------------------(Previous days index price)
This is denominated as x which is the independent variable as index is considered as a market and it is always assumed as an independent variable.
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Calculate the squares of X and Y.
Finally compute the following formula and get the Beta N xy ( x) ( y) Beta () = ---------------------------N x2 ( x) 2
Analyzing the Beta

In Beta normally it is understood that, 1. If Beta>0 and Beta<0.75 it shows that the company falls in this category is of defensive kind moves below the growth rate of index but in the same direction. 2. Beta of the Company if its less than 1 and more than 0.75, it shows that the, the company is moderate in nature and it goes hand in hand with Index. 3. Beta of the company is greater than 1 it shows that, the company is Aggressive nature and going ahead of index in the same direction. 4. Here if the Beta is positive it shows the direct relationship with the Index. 5. If the beta is negative then it shows the inverse relationship with the index. EX: if nifty goes up by 100 points then the particular company will move by that many points of calculated beta.
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Brief Introduction Of Different Sectors INFORMATIONAL TECHNOLOGY (IT)SECTOR:

The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The ITITES industry has two major components: IT Services and business process outsourcing (BPO). The growth in the service sector in India has been led by the ITITES sector, contributing substantially to increase in GDP, employment, and exports. The sector has increased its contribution to India's GDP from 6.1% in 2009-10 to 6.4% in 2010-11. According to NASSCOM, the ITBPO sector in India aggregated revenues of US$88.1 billion in FY2011.The top seven cities that account for about 90% of this sectors exports are Bangalore, Chennai, Hyderabad, Mumbai, Pune, Delhi, Kolkata, Coimbatore and Kochi Export dominate the ITITES industry, and constitute about 77% of the total industry revenue.. This sector has also led to employment generation. Direct employment in the IT services and BPO/ITES segment was 2.3 million in 2009-10 and is estimated to reach nearly 2.5 million by the end of financial year 2010-11. Indirect employment of over 8.3 million job opportunities is also expected to be generated due to the growth of this sector in 2010-11.
TCS: TCS BPO is the second leading player in the outsourcing industry in India behind Genpact
according to Dataquest survey in August 2011.TCS's BPO arm had revenues of $925 million in the year that ended in March, and 34,000 employees Other than major Indian cities. TCS is planning to hire 60,000 Employees in Financial year 20112012
WIPRO: Wipro Limited (formerly Western India Products Limited(Amalner))

(BSE: 507685, NSE: WIPRO, NYSE: WIT is an Indian global IT services and consulting company headquartered in Bangalore, India. As of 2012, Wipro is the second largest IT services company by turnover in India, employing about 120,000 people worldwide as of December 2011. It provides outsourced research and development, infrastructure outsourcing, business process outsourcing (BPO) and business consulting services. The company operates in three segments: IT Services, IT Products, Consumer Care and Lighting.
HCL: HCL Technologies Limited (BSE: 532281, NSE: HCLTECHis a leading global IT
services company headquartered in Noida, India. It is primarily engaged in providing a range of software services, business process outsourcing and infrastructure services. HCL Technologies is fourth largest IT company in India and is ranked 48 in the global list of IT services providers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$3.7 billion, as on 30 Sept 2011 (on LTM basis), and employs more than 80,520 people of diverse nationalities. HCL Technologies has global network of offices in 26 countries.
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BANKING SECTOR:
The banking system in India is significantly different from that of other Asian nations because of the countrys unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. There are high levels of illiteracy among a large percentage of its population but, at the same time, the country has a large reservoir of managerial and technologically advanced talents. Between about 30 and 35 percent of the population resides in metro and urban cities and the rest is spread in several semi-urban and rural centers. SBI: (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking and financial services company in India by revenue, assets and market capitalization. Its a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2011, it had assets of US$ 370 billion with over 13,000 outlets including 150 overseas branches and agents globally. The government of India nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India. SBI is ranked #292 globally in Fortune Global 500 list in 2011. SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group, with over 16,000 branches, has the largest banking branch network in India ICICI: (NSE: ICICIBANK, BSE: 532174, NYSE: IBN) is an Indian diversified financial services company headquartered in Mumbai, Maharashtra. It is the second largest bank in India by assets and third largest by market capitalization. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,575 branches and 8,003 ATM's in India, and has a presence in 19 countries, including India. AXIS: (BSE: 532215, LSE: AXBC) is an Indian financial services firm that had begun operations in 1994, after the Government of India allowed new private banks to be established. As on the year ended 31 March 2009 the Bank had a total income of 13,745.04 crore (US$3.02 billion) and a net profit of 1,812.93 crore (US$398.84 million). The Bank has a very wide network of more than 1281 branches and Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs (as on 31st March, 2011).
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PHARMACEUTICAL SECTOR: In 2007, the Indian pharmaceutical industry looks ahead at a colorful horizon. Globally the Indian pharmaceutical industry ranks 4th in terms of volume and 13th in terms of value. Today, the sector is in the front rank of Indias science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. Overall, the industry is expected to grow at an average annual rate of about 15 to 20 per cent between 2005 and 2010. DR Reddy Dr. Reddys Laboratories Ltd. (DRL), in 1984, is the largest pharmaceutical company in India. The company has over 190 finished dosages and 60 API currently in production. As on 2006, Dr. Reddys Labs crossed US $500 M in revenues flowing from segments such as APIs, Branded Formulations and Generics with the former two segments accounting for almost 75% of revenues. Ranbaxy Ranbaxy Laboratories Limited is an Indian company incorporated in 1961. It is ranked among the top 10 generic companies worldwide. Ranbaxy presently competes with the maker of brandname Zocor, Merck and CO which has 180-day exclusivity at strengths and Dr. Reddy's Laboratories, also from India, whose authorized generic version is exempt from exclusivity. SUN PHARMA Sun Pharmaceutical Industries Ltd. (Sun Pharma) is a rising star of India's fast growing pharmaceuticals industry. In less than a decade, Sun has lifted itself into fifth position in the country's pharmaceuticals market. Sun manufactures a range of drugs for a range of medical specialties, treatments, and disorders.
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ANALYSIS AND INTERPRETATION CALCULATIONS: 1) INFORMATIONA TECHNOLOGY(IT) SECTOR ARITHMETIC MEAN: For the period of 1st April 2010 to 31st March 2011
Arithmetic Mean X= x/N X
TCS 37.93/12 3.16
Wipro -21.78/12 -1.81
HCL 27.80/12 2.31
GRAPHICAL REPRESENTATION:
X
4 3 2 1 0 -1 -2 -3
X TCS Wipro HCL
ANALYSIS AND INTERPRETATION: According to the data available in the table, as well as from we can say that TCS is giving good and highest return compare to others and WIPRO is giving lowest return.
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STANDARD DEVIATION: For the period of 1st April 2010 to 31st March 2011 Standard deviation = (x x) 2 N TCS 22.35/3.46 57.56/3.46 6.45 16.61 7.51 Wipro HCL 26.03/3.46
20 15 10 5 0 TCS Wipro HCL
ANALYSIS AND INTERPRETATION: According to the data and graph available we can say that WIPRO is having a highest risk compare to others. And TCS is one, which is having lowest risk.
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BETA: Beta = nxy (x) (y) nx2 - (x)2 TCS 1712.33/4039.86 0.42 Wipro 1035.83/4039.86 0.26 HCL 1023.77/ 4039.86 0.25
0.5 0.4 0.3 0.2 0.1 0 TCS Wipro HCL
ANALYSIS AND INTERPRETATION: According to the data and graph available we can say that both WIPRO and HCL are having strong relationship with market compare TCS.
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INTERPRETATION AND ANALYSIS OF IT SECTOR TCS Arithmetic Mean Standard Deviation Beta 3.16 6.45 0.42 Wipro -1.81 16.61 0.26 HCL 2.31 7.51 0.25
20 15 10 5 0 TCS -5 Wipro HCL Arithmetic Mean Standard Deviation Beta
ANALYSIS AND INTERPRETATION: 1) In Informational Technological sector TCS is giving highest return and having lowest return also it is having lowest risk compare to WIPRO and HCL. The second highest return and low risk is HCL. 2) In case of TCS is having less relationship with market compare to others. Even though it is having highest beta, its risk and return are more than WIPRO and HCL. 3) Comparing all the values of average return, standard deviation(risk) and beta(market relationship) of TCS it is quite good. So the script of TCS is the preferable one to investors.
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2) BANKING SECTOR ARITHMETIC MEAN:
Arithmetic Mean X= y/N
SBI 28.93/12
ICICI 7.73/12 0.64
AXIS 8.32/12 0.69
2.41
X
3 2.5 2 1.5 1 0.5 0 SBI ICICI AXIS X
INTERPRETATION AND ANALYSIS: Comparing the arithmetic mean of all the three banks which are shown in the diagram, SBI is showing the good return and it is highest to rest banks like ICICI and AXIS. And also ICICI bank is giving lowest return.
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STANDARD DEVIATION: Standard deviation = (x x) 2 N SBI 88.31/3 ICICI 85.25/3 AXIS 1040.57/3
29.43
28.41
10.75
35 30 25 20 15 10 5 0 SBI ICICI AXIS
INTERPRETATION AND ANALYSIS: Data in the diagram show that SBI is quit higher than icici and axis banks. It means that risk of SBI is more than other banks. And Axis bank is having less risk.
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BETA: Beta = nxy (x) (y) nx2 - (x)2 SBI 2622.1/3020.51 ICICI 2622.1/3020.51 AXIS 3426.119/3020.543
0.86
1.05
1.13
1.2 1 0.8 0.6 0.4 0.2 0 SBI ICICI AXIS
GRAPHICAL REPRESENTATION: The relationship of companies or banks shown in the diagram with the market is different, only SBI is having good relationship with market.
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INTERPRETATION AND ANALYSIS OF BANK SECTOR SBI Arithmetic Mean Standard Deviation Beta 2.41 29.43 0.86 ICICI 0.64 28.41 1.05 AXIS 0.69 10.75 1.13
35 30 25 20 15 10 5 0 SBI ICICI AXIS Arithmetic Mean Standard Deviation Beta
INTERPRETATION AND ANALYSIS: 1) In bank sector for whole one year SBI is giving a good and highest return and also risk factor is higher than other banks. Axis bank is having less risk and second highest return compare to ICICI and SBI. 2) In case of Axis the relationship with the market is not stronger than other. Even though Axis is having highest beta its return and risk is quite good to others. 3) Comparing all the values of return, risk and beta of all the banks Axis is the most preferable to the investors.
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1) PHARMACEAUTICAL SECTOR ARITHMETIC MEAN: Dr. Reddys 25.01/12 2.08
Arithmetic Mean X= x/N X
Ranbaxy -15.63/12 -1.27
SUN Pharma -65.52/12 -5.42
X
4 2 0 -2 -4 -6 Ranbaxy Dr. Reddys SUN Pharma X
INTERPRETATION AND ANALYSIS: The full one year average return of all the companies which are shown in the above diagram are compared each other. Only Dr. Reddys giving a good and highest return and others are having negative return.
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STANDARD DEVIATION: Standard deviation = (x x) 2 N Ranbaxy 38.18/3.46 11.02 Dr. Reddys 25.51/3.46 7.36 SUN Pharma 90.74/3.46 26.22
30 25 20 15 10 5 0 Ranbaxy Dr. Reddys SUN Pharma
INTERPRETATION AND ANALYSIS: The above data in the table and the diagram are showing the risk of the companies. Dr. Reddys having lowest risk compare to other and SUN Pharmaceutical is having highest risk.
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BETA: Beta = nxy (x) (y) nx2 - (x)2 Ranbaxy 3961.679/4039.85 0.98 Dr. Reddys 30.41/4039.85 0.007 SUN Pharma 8045.58/4039.85 1.99
2.5 2 1.5 1 0.5 0 Ranbaxy Dr. Reddys SUN Pharma
INTERPRETATION AND ANALYSIS: According to the above data and graph Dr. Reddys is having good and strongest relationship with market compare Ranbaxy and SUN pharmaceutical.
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INTERPRETATION AND ANALYSIS OF PHARMACEAUTICAL SECTOR Ranbaxy Arithmetic Mean Standard Deviation Beta -1.27 11.02 0.98 2.08 7.36 0.007 Dr. Reddys SUN Pharma -5.42 26.22 1.99
30 25 20 15 10 5 0 -5 -10 Ranbaxy Dr. Reddys SUN Pharma Arithmetic Mean Standard Deviation Beta
ANALYSIS AND INTERPRETATION: 1) In pharmaceutical sector Dr.Reddys giving highest return and having lowest risk compare to Ranbaxy and SUN pharmaceutical. 2) Dr. Reddys having good and strong relationship with market compare to others. 3) Comparing all the values of beta, risk and return of Dr.Reddys , Ranbaxy and SUN pharmaceutical , Dr. Reddys having highest return, lowest risk and strong market relationship. So it suggested that Dr.Reddys is preferable one to investors.
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ANALYSIS AMOUNG THE SECTORS:
1)
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FINDINGS
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SUGGESTIONS
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BIBLIOGRAPHY
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Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING

Summer Project Report On Risk & Return Analysis of Sector Scripts

Master of Business Administration

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING (MBA)

Director (Dr. D.G.Kulkarni)

Signature with Date

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

Place: Belgaum Date:

Mr. Basavaraj.Moodalagi (Jain College of Engineering, Belagaum)

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

6 7 8-18 19-24 25-26 27-29 30

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

a) Background and Inception of Reliance Money

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

b)Nature of the business carried:

c)Vision Mission and Quality Policy

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

d)Product and Service Profile

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

Risk & Return Analysis Of Sector Scripts

Reliance General Insurance

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

Reliance Life Insurance

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

Work Flow Model:

BSE/ NSE Terminal.

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

j)Future growth & prospects:

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

3) MC-KINSEY'S 7S Frame Work:

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

Mc Kinneys 7-s framework with reference to company profile

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts

Now 7S can be understood pertaining to Reliance Money

JAIN COLLEGE OF ENGINEERING, MBA DEPT. BELAGAVI

Risk & Return Analysis Of Sector Scripts