PRESENTED BY: SRI RAMYA.

INTRODUCTION
FUNDAMENTAL ANALYSIS:

Its a method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.
IT INCLUDES:.

Fundamental analysis is an attempt to study everything that can affect the securities value, including macroeconomic factors (like the over all economy and industry conditions) and company-specific factors(like financial condition and management).

OBJECTIVES:
To analyze the performance of stocks fundamentally from past 5 year.

To evaluate the scope of investing in that particular stock with respect to an investor. To find out the factors that had effected for major fluctuation in the stock. To know how functionally fundamental analysis works in taking investment decisions. To forecast the performance of that particular stock.

SCOPE OF THE STUDY: This study helps to know about the performance of the selected stocks in

depth. It gives a clear idea of both the factors that are of macro level and of company level effecting the stock performance.
DATA SOURCE:

This entire data is from secondary source.

SAMPLE DESIGN: I have taken the following stocks from the equity market

. BHEL(Bharat Heavy electrical limited) Dr Reddys Labs

LIMITATIONS:

There is no any scope of getting primary data because the entire

data is only available from the secondary source.

The data that is given by the company through its website is limited. Time limit.

Graphical interpretation:
3500

3000

2500

2000 bhel 1500 drreddys

1000

500

0 7/3/2006 7/3/2007 7/3/2008 7/3/2009 7/3/2010

ANALYSIS ON BHEL: Dividends have increased gradually from last 5 years for about 154%. From past 4 years they are maintaining very limited debt and so equity shareholders will be earning more. Now they are working on around 40000 crores worth projects. EPS had enormously increased to 122.80 which is 110% increased from last 4 years.

ANALYSIS ON DR.REDDYS:
Firstly speaking there has been enormous growth in health sector. Debt is more and it is almost triple when compared to previous years.

In spite of high debt, they have raised dividends for about 175% more from the previous years.
The entire sales and turn over increased by 36% as they have got spread globally and most of the projects are from US and European countries.

FINDINGS: BHEL

key drivers for its growth are acceleration capex. Recent success in super critical boiler had helped it in its growth of 22% in net profit of 1st quarter fy12. It is having a good operating leverage and good order book to sales ratio. At present it is advisable for the investors to invest in this stock.

Dr.Reddys:

It is estimated that there will be a substantial growth for this, because there going to be a boom in the health sector and so investing in this stock leads to good returns. core earnings of FY12-13 estimate is down graded by 7.8% - JP morgan. 1QFY12 revenue increased by 17.5%, EBIT increased by 12.3%,ebit margin at 13.8% was down 70bps.

pat increased 37% to Rs.2.9 bn aided mainly by a low tax rate.

BHEL is expected to perform well in near future as it has got high budget projects recently and the turnover and dividend payout ratio has also increased enormously, so it is desirable for an investor to invest in this particular company. DR.REDDYS is not surely expected to earn profits because it had got too much of debt which is almost triple the equity of it and so it is risky to invest but then it works investing in long run as it is spreading globally and spending more on R&D.