RISK-RETURN ANALYSIS OF FIVE SELECTED COMPANIES IN TELECOM SERVICE SECTOR - A STUDY CONDUCTED AT HEDGE EQUITIES LTD; KOCHI

P R O J E C T R E P O RT

Submitted to the Amrita Vishwa Vidyapeetham in partial fulfillment of the requirements for the award of the Degree of Master of Commerce (Finance and Systems)

BY AMAL MOHAN K H . A R . P 2 C O M 11 0 0 2

U n d e r t h e su p e r v i si o n of S mt . V I J AY L A K S H M Y K . V

Amrita School of Arts and Sciences Kochi 682024

DECLARATION

I hereby declare that this project work titled Risk-Return analysis of five selected companies in telecom service sector - A study conducted at Hedge Equities Ltd; Kochi is a record of original work done by me under the supervision and guidance of Smt. Vi j a y L ak sh my K . V and that this project work has not formed the basis for the award of any Degree/Diploma/Fellowship or similar title to any candidate of any university.

Place: Edappally Date:

Name and Signature of the Student Amal Mohan

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CERTIFICATE

This is to certify that the project work titled Risk-Return analysis of five selected companies in telecom service sector - A study conducted at Hedge Equities Ltd ; Kochi submitted to Amrita Vishwa Vidyapeetham in partial fulfillment of the requirements for the award of the Degree of Master of Commerce is a record of original work done by Amal Mohan under my supervision and guidance and that this project work has not formed the basis for the award of any Degree / Diploma / Fellowship or similar title to any candidate of any University.

(Seal)

Signature with Name and Designation of the Guide VIJAY LAKSHMY. K.V Assistant Professor Department of Commerce & Management

Submitted for the University Examination held on _________________________

Internal Examiner

External Examiner

Signature:

Signature

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ACKNOWLEDGMENT Any accomplishment requires the grace of God and the effort of many people and this project report is not different. I praise and thank God for showing me the way, protecting me and strengthening me. First of all, I am greatly indebted to Dr. U. Krishna Kumar , Director, Amrita School of Arts And Sciences Kochi, for being a source of inspiration throughout the study. My special thanks to Mr. Krishnan Thampi (HOD Research and Strategies Hedge Equities Ltd) and Mr. Benil Dani Alexander (Hedge Equities Ltd) for providing me an opportunity to work in Hedge Equities Ltd. Word of thanks is not enough to express my deep sense of gratitude to DR. M V. Kamalakshi , HOD of Commerce & Management, for giving the opportunity to prove my work. I express my sincere gratitude for her guidance and encouragement. My grateful acknowledgments are recorded to all the staff members of Hedge Equities Ltd, for the valuable support in the successful completion of this project. I take this opportunity to express my sincere thanks to Ms. Vijay Lakshmy K.V for her constant help and support, without which this report would not be possible. Credit goes to a great measure to my friends for their wholehearted help. Above all my prayers and thankfulness goes to Mata Amritanadamayi Devi, for her unilateral grace, which was the guiding star and inspiring force in this project work. Amal Mohan
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TABLE OF CONTENTS Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Chapter 1. Introduction 1.1 Introduction 1.2 Statement of the problem 1.3 Objectives 1.4 Methodology 1.5 Chapterisation schema 1.6 Limitations 2. Literature Review 2.1 Evolution of the Concept 2.2 Contributories 3. Profile of the Industry 3.1 Evolution 3.2 Features 3.3 Prospects 3.4 SWOT Analysis 4. Profile of the Organization 4.1 Brief History 4.2 Mission, Vision 4.3 Departmental Profile 4.4 Review of Present Performance 4.5 SWOT Analysis 5. Analysis and Interpretation 6. Findings, Conclusions and Suggestions Bibliography Annexure
Page No

1 2 4 4 5 6 7 8 9 23 29 30 34 37 40 42 43 48 48 56 64 67 127 140 142

LIST OF TABLES

Sl.No.

Table Name Bharti Airtel Ltd - five years half yearly

Table. No

Page. No

stock return and index return Idea cellular Ltd - five years half yearly

5.1.1

72

stock return and index return MTNL - five years half yearly stock

5.1.2

77

return and index return Reliance communications Ltd - five years half yearly stock return and index return Tata communications Ltd - five years

5.1.3

81

5.1.4

85

half yearly stock return and index return Bharti Airtel Ltd -Five Years Financial

5.1.5

89

Ratios Idea Cellular Ltd -Five Years Financial

5.2.6

93

Ratios MTNL - Five Years Financial Ratios Reliance Communication Ltd - Five

5.2.7

100

5.2.8

106

Years Financial Ratios Tata Communications Ltd - Five Years

5.2.9

114

10

Financial Ratios

5.2.10

120

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LIST OF CHARTS

Sl.No

Chart Name

Chart No.

Page No.

Bharti Airtel Ltd - half yearly stock return and index returns Bharti Airtel Ltd - five years stock movements Idea Cellular Ltd - half yearly stock return and index returns five years stock movements MTNL - half yearly stock return and index returns MTNL - five years stock movements Reliance Communications Ltd - half yearly stock return and index returns Reliance Communications Ltd - five years stock movements Tata Communications Ltd - half yearly stock return and index returns Tata Communications Ltd - five years stock movements Bharti Airtel Ltd - Net sales growth and PAT growth Bharti Airtel Ltd - Total Debt/Equity Ratio Bharti Airtel Ltd - Interest Coverage Ratio Bharti Airtel Ltd - Five years PE Ratio Bharti Airtel Ltd - Five years EBITM and PATM Bharti Airtel Ltd - Five years ROE

5.1.1

73

5.1.2

73

3 4 5 6 7

5.1.3 5.1.4 5.1.5 5.1.6 5.1.7

78 78 82 82 86

5.1.8

86

5.1.9

90

10

5.1.10

90

11

5.2.11

94

12

5.2.12

95

13 14 15 16

5.2.13 5.2.14 5.2.15 5.2.16

96 97 98 99

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17

Idea Cellular Ltd - Net sales growth and PAT growth Idea Cellular Ltd - Total Debt/Equity Ratio and Interest Coverage Ratio Idea Cellular Ltd - Five years PE Ratio Idea Cellular Ltd - Five years EBITM and PATM Idea Cellular Ltd - Five years ROE MTNL - Sales Growth MTNL - PAT Growth MTNL - Total Debt/Equity Ratio MTNL - Interest Coverage Ratio MTNL - Five years PE Ratio MTNL - Five years EBITM and PATM MTNL - Five years ROE Reliance Communications Ltd - Net sales growth and PAT growth Reliance Communications Ltd - Total

5.2.17

101

18 19 20 21 22 23 24 25 26 27 28 29

5.2.18 5.2.19 5.2.20 5.2.21 5.2.22 5.2.23 5.2.24 5.2.25 5.2.26 5.2.27 5.2.28 5.2.29

102 103 104 105 107 108 109 110 111 112 113 115

30

Debt/Equity Ratio and Interest Coverage Ratio

5.2.30

116

31

Reliance Communications Ltd - Five years PE Ratio Reliance Communications Ltd - Five years EBITM and PATM Reliance Communications Ltd - Five years ROE Tata Communications Ltd - Net sales growth and PAT growth

5.2.31

117

32

5.2.32

118

33

5.2.33

119

34

5.2.34

121

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35

Tata Communications Ltd - Total Debt/Equity Ratio

5.2.35

122

36

Tata Communications Ltd - Interest Coverage Ratio Tata Communications Ltd - Five years PE Ratio Tata Communications Ltd - Five years EBITM and PATM Tata Communications Ltd - Five years ROE

5.2.36

123

37

5.2.37

124

38

5.2.38

125

39

5.2.39

126

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