FUNDAMENTAL

&
TECHNICAL ANALYSIS
 ANALYSIS
ANALYSIS

FUNDAMENTAL TECHNICAL
 FUNDAMENTAL

MACROECONOMIC INDUSTRY COMPANY

 Company Snapshot
 Industry : Telecommunication
service
 Sector : Mobile Services,
Broadband &
Telephone Services
 Scrip Symbol (NSE) : BHARTIARTL
Scrip Number (BSE) : 532454
 Recent Stock Price : 756.30
 52 wk High (NSE) : 1,184.20
 52 wk Low (BSE) : 651.00
 MACROECONOMIC

 GDP
 Inflation
 Per Capita Income
 Infrastructure Facility
 Savings
 Monsoons
 Political Equations
 INDUSTRY ANALYSIS
OPERATOR SUBSCRIBER BASE MARKET SHARE
(Mn.) (%)
Bharti Airtel 62.0 24.7
R.Com. 45.8 18.2
Bsnl+Mtnl 39.5 15.7
Vodafone 44.1 17.6
Idea Cellular 24.0 9.6
TTSL 19.7 7.9
Aircel 10.6 4.2
Spice 4.2 1.7
Communication
BPL 1.3 0.5
TOTAL 251.2 100
 COMPANY RATIOS
1. Current ratio = Current Asset
Current Liability

Year Mar 08 Mar 07 Mar 06

End
Current 0.53 0.46 0.46
ratio
2. Debt-Equity Ratio: Debt
Equity

Year Mar 08 Mar 07 Mar 06

End
Debt 0.38 0.54 0.83
equity
3 Return on capital employed (ROCE) = Earning before Interest and Tax
Capital Employed

YR End Mar 08 Mar 07 Mar 06

ROCE 34.88 34.03 22.55

4 Earning per share (EPS) = Net profit after Tax – Pref. dividend
No. of equity shares

YR End Mar 08 Mar 07 Mar 06

EPS 32.90 21.27 10.62

5 Price earning ratio (P/E) = Market price per share
EPS

Yr Ended Mar 08 Mar 07 Mar 06

PE Ratio 21.92 35.88 38.87

6 Return on Equity capital (ROE) = NPAT- Pref. share dividend

Equity share capital

Yr Ended Mar 08 Mar 07 Mar 06

ROE 39.53 43.04 31.82

7 Share Holders Equity Ratio = Share Holder Equity

Total assets
Yr Ended Mar 08 Mar 07 Mar 06

Share 75.44% 68.24% 60.45%

Equity Ratio

8 Capital Gearing Ratio = Fixed Interest funds

Equity share Fund

Yr Ended Mar 08 Mar 07 Mar 06

CGR 32.55% 46.53% 65.40%

9 Book Value = Paid up Equity Cap + Reserve and surplus
No of Shares

Yr Ended Mar 08 Mar o7 Mar 06

Book Value 106.34 60.19 38.71

 Airtel Business
 Mobile Services
 Broadband & Telephone Services
 Enterprise Services - Carriers
 Enterprise Services – Corporate
 Major Agreement & Alliance
With
 Microsoft
 Google
 Nokia
 IBM
 Threat & Opportunities

OPPORTUNITIES
 A strong economy and a growing market
 New technologies
 Strong strategic partnerships

TREAT
 Increased Competitions
 TECHNICAL ANALYSIS

 Technical analysis is a financial markets

technique that has ability to forecast the future
direction of security prices through the study of
past market data, primarily price and volume

 Technical Analysis deals with probabilities,

never certainties.
 Basic Assumptions
 The market discounts everything.
- Technical analysts believe that the company's fundamentals, along with broader
economic factors and market psychology, are all priced into the stock,

 Price moves in trends.

- Price will tend to move in the direction of past movement.

 History tends to repeat itself.

- people will continue to make the same mistake they had made in past.
 SIMPLE ANALOGY

 In a shopping mall, a fundamental analyst

would go to each store, study the product
that was being sold, and then decide
whether to buy it or not. Where as , a
technical analyst would sit on a bench in
the mall and watch people go into the
stores. Disregarding the intrinsic value of
the products in the store, his or her
decision would be based on the patterns
or activity of people going into each store
 Candle Sticks
 A price chart that displays the high, low, open, and close
for a security each day over a specified period of time.
 Originated in Japan.
 It is used to identify price pattern.
 Moving Averages
 An indicator frequently showing the average value of a security's
price over a set period.
 Moving averages are used to emphasize the direction of a trend and
to smooth out price and volume fluctuations, or "noise", that can
confuse interpretation
 upward momentum is confirmed when a short-term average (e.g.15-
day) crosses above a longer-term average (e.g. 50-day). Downward
momentum is confirmed when a short-term average crosses below
a long-term average.
Fundamental V/S Technical
 Charts vs. Financial Statements

 Time Horizon

 Trading Versus Investing

 CONCLUSION
 Technical analysis and Fundamental
analysis are Opposite poles of investing.
But if both technical & fundamental
Analysis are used together Wisely a great
success can be experience.