Fundamental Analysis of 5 IT Sector companies

Presented by : Maulik Patel (NR10072) Vijesh Thakkar (NR10107)

Content of Presentation
Introduction

Research Methodology
Company Profile Industry Profile Theoretical aspect of study Trend analysis Conclusion

Introduction
Recent Developments in Information Technology In India IT Infrastructure E-Governance Applications Steel Statistics Ministry's Official Website

Research Methodology
Objectives :
To know financial & liquidity position of

Information technology sector. To know the behavior of the individual investors towards IT companies share. Scope of the project: The scope of our project is fundamental analysis of IT sector companies To know the growth of these companies in the IT sector

Research Design: Our research design is descriptive in nature as it has fulfilled some objective. Method of Data Collection: Secondary sources: Newspaper, company database, Magazines, websites. Sampling Method: Sample Unit: IT Sector companies TATA consultancy Services, Wipro, Infosys, HCL Technologies, Tech Mahindra.

Company Profile
Introduction :

Arihant Capital Markets Limited, an ISO 9001:2008 Certified Company, is one of the leading financial services companies in India. It provide a gamut of products and services including securities and commodities broking, investment planning, financial planning, wealth management and merchant banking to a substantial and diversified clientele that includes individuals, corporations and financial institutions.

Arihant Capital Markets Ltd.

History :

Arihant Capital Markets Limited was established in 1994 by Mr. Ashok Kumar Jain, a Chartered Accountant. Arihant has followed a consistent growth path and has established itself as one of the leading broking houses of the country with the support and confidence of its clients, investors, employees and associates. It pride ourselves on our independence and continuous service since inception.

Industry Profile
5 IT sector companies : Infosys Tata consultancy services Wipro Tech Mahindra HCL technologies

Infosys

Infosys Technologies Ltd. (NASDAQ: INFY) provides consulting and IT services to clients globally - as partners to conceptualize and realize technology driven business transformation initiatives. With over 58,000 employees worldwide, it use a low-risk Global Delivery Model (GDM) to accelerate schedules with a high degree of time and cost predictability.

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Products :
Application Development and Maintenance
Corporate Performance Management Enterprise Quality Services

Infrastructure Services
Packaged Application Services Product Engineering Systems Integration

Per Share Ratio

Profitability Ratio

Liquidity Ratio

Tata consultancy services

Today, with a presence in 34 countries across 6

continents, & a comprehensive range of services across diverse industries, we are one of the world's leading Information Technology companies. Six of the Fortune Top 10 companies are among our valued customers Part of one of Asia's largest conglomerates - the TATA Group -, which, with its interests in Energy, Telecommunications, Financial Services, Chemicals, Engineering & Materials, provides us with a grounded understanding of specific business challenges facing global companies.

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Products :
Banking Accounting Insurance Financial services Security Manufacturing

Per Share Ratio

Profitability Ratio

Liquidity Ratio

Wipro
Wipro

Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of our clients. Wipro has 40+ Centers of Excellence that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award.

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Products :
B2B integration Web Methods Customer relationship management Clarify Oracle SAP

Siebel

Per Share Ratio

Profitability Ratio

Liquidity Ratio

Tech Mahindra
Tech Mahindra is part of the US $12.5 billion

Mahindra Group, in partnership with British Telecommunications plc (BT), one of the worlds leading communications service providers. Focused primarily on the telecommunications industry, Tech Mahindra is a leading global systems integrator and business transformation consulting organization. Tech Mahindra has recently expanded its IT portfolio by acquiring the leading global business and information technology services company, Mahindra Satyam (earlier known as Satyam Computer Services).

Per Share Ratio

Profitability Ratio

Liquidity Ratio

HCL
HCL Technologies is a leading global IT services

company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on transformational outsourcing, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO.

Per Share Ratio

Profitability Ratio

Liquidity Ratio

Theoretical aspect of study

Fundamental Analysis :
Fundamental analysis is the method of analyzing companies based on factors that affect their intrinsic value. As with the analysis of fixed income securities, equities may be analyzed on an expected future cash flow, or benefit, to the shareholder basis. When reading the financial papers one often encounters the term "intrinsic value". This concept is what is considered to be the corner stone of fundamental analysis.

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Fundamental analysis tools:
Eps (earning per share) Dps (dividend per share) P/E ratio (price earnings ratio) P/b ratio (price to book ratio) Net profit ratio Roe (return on equity) Current ratio Acid test ratio Debt to equity Return on assets Return on capital employee

Trend Analysis
Companie Net s Sales Tech Mahindra HCL Infosys Wipro TCS 4625. 4 12,13 6 22,74 2 27,29 7 30,02 9 PAT 703. 2 125 9 626 6 459 3 709 3 PBIDT M (%) 25.9 17.3 38.9 23.4 29.9 APAT M (%) 15.2 10.4 27.6 16.8 23.6 RONW P/E (%) 29 22.4 30.3 28.8 40.9 13.2 27.1 31.3 23.7 29 P/BV Mkt Cap. 3.2 5.2 8.7 6.5 12.5 9180.1 32,677.1 199,687.6 119,323.6 229,325.1

Conclusion
IT continues to develop rapidly as the key underlying

technologies of semiconductors, disk drives, and network communications improve at exponential rates. Constant improvements in the underlying technologies make possible new IT applications that affect all areas of society, including the economy, households, government, and the R&D enterprise. Throughout society, the utility of IT applications tends to advance much more slowly than the underlying technologies. As a result, the effects of IT on society often take place more slowly than visionaries predict. Nevertheless, the effectsdriven by the continual change in underlying technologiesare substantial over time