INDIABULLS SECURITIES LTD FUNDAMENTAL ANALYSIS OF SECURITIES

Presented By: Niharika Singh MBA/4561/08 BIT Noida

OBJECTIVE OF THE STUDY

a) Comparatively analyze the different industry performance and selecting the appropriate security. b) Identify the returns of the securities in considering the risk, growth, and other related variables. c) Understand the factor influencing the security prices in different industries. d) Analyzing the environmental factors affects the security prices. e) Assess the future potential of the companies in the industry. f) And aid to investor in assessing the worth of the securities.

Research Methdology Descriptive Research Secondary Data SAMPLING DESIGN

Sample Design
Industry Company

Steel Industry IT Industry Automobile Industry Power Industry Pharma Industry Real-estate Cement Industry

Tata steel,SAIL,Jindal steel,JSW and Bhushan steel Wipro,Infosys,Tech Mahindra,3i Infotech,TCS Maruti Suzuki,Hero Honda,Ashok Leyland,M&M,Hindustan motors Reliance power,L&T,Jaiprakash Hydro,NTPC,Tata power Ranbaxy,Cipla,Dr. Reddy,Sunpharmaceutical,Dabur DLF, Shobha developers,Unitech,Lanco,Brigade ltd ACC Ltd,India cement,J.K cement,Ambuja cement,Ultratech Ltd

FUNDAMENTAL ANALYSIS
 To analyze the overall economy and securities markets.  To analyze the industry with in which a particular company operates.  Analysis of the company should be considered.

TYPES OF FUNDAMENTAL ANALYSIS

Economic analysis Industry analysis Company analysis

ANALYSIS AND FINDINGS

COMPANY ANALYSIS:
Mean of Profit Variance of Profit Risk co-efficient(beta) RATIOS Per Share Ratio Profitability Ratio Leverage Ratio Liquidity Ratio Balance Sheet Analysis

Steel Industry

Rs. In crore

Company

Tata steel Ltd

SAIL

Jindal Steel Bhushan Steel JSW Steel Ltd Ltd Ltd

Mean of profit

499

123

5410.6

607

123.18

Variance of profit

6.07

7.4

7.1

5.4

Risk coefficient(beta)

1.4

1.27

1.25

1.6

1.2

RATIOS
Per Share Ratio EPS Dividend Per Share Operating Profit Per Share Book value Per Share Profitability Ratio Operating Margin Return on long term funds Leverage Ratio Total debt/equity Fixed asset turnover ratio Liquidity Ratio Current Ratio Inventory Turnover ratio
3.92 10.84 1.73 8.62 1.56 7.01 1.66 4.4 0.58 9.26 1.07 1.2 0.12 1.31 0.9 0.9 2.84 1.44 1.01 0.81 64.14 16.00 112.85 296.65 14.81 3.70 27.28 55.69 90.47 4 149.12 243.71 19.98 2.5 196.68 382.68 24.81 14 179.43 394.99

41.94 17.16

28.19 44.47

42.76 26.6

19.98 10.26

29.46 19.22

Balance Sheet

Net Profit

4,687.03

6,119.17

1,536.48

412.79

458.50

Profit before tax(PBT)

7,066.36

11,468.73

1,502.51

538.93

2,484.12

Profit After tax(PAT)

4,447.90

7,310.27

1,392.87

417.69

1,639.05

Steel Industry
60,000.00 50,000.00 40,000.00 30,000.00 20,000.00 10,000.00 0.00 2004 2005 2006 2007 2008

T t steel JSW Bhu sh n td . J nd l S l

Sales growth of five Steel Company

Automobiles Industry

Sales growth of five Automobile Comapnies

I INDUS RY

c o CS I fo I fo c

Sales growth of five IT comapnies

Power Industry

N P L& a prakas e an e power Hydro power

Sales growth of five power comapnies

P arma euti al Industry

Sales growth of five Pharma companies

Real-estate Industry

F b a evel ers an td un te r ade

Sales growth of five Real-estate companies

Cement Industry

Sales growth of five Pharma comapnies

CONCLUSION
When come to the economic factors the global economies are getting interrelated, the Indian market will no longer be limited to domestic economic situation.  As far as the Indian economy is concerned, the GDP is the primary factor.

Positive correlation with the Sensex, which directly affects the overall market and followed by other factors.
There are many industries and each industries consists of several companies. These companies having different scenario based on current situation of economy. Therefore before investing any industry investor must analyze the industry and company. Here we have compared different seven industries on the basis of different financial terms.

SUGGESTIONS
 secrutiny of economy,industries and companies are must.

 The investor also should consider the budget decision and present years forecast of different sectors. Comparisons is also necessary because of companies perform well when potential opportunity exists for industry.  Even though the industry may perform well, the companies in the that particular industry may suffer form lack of ability or any other factor, one should scrutinize the performance of the company, in considering importantly, sales growth, leverages, betas, P/E ratio and market to book ratios. .  fundamental analysis even today holds good. It demands, may insist on information about the company. It requires subjecting a company.s performance and its financial statements to in-depth scrutiny. It also calls for the company and industry in which the company operates.