1.

EXECUTIVE SUMMARY
EQUITY ANALYSIS is the systematic study of the performance of companies in stock
market with help of fundamental analysis and technical analysis. Euity analysis consists
of fundamental analysis ! technical analysis. "hile decision in in#estment of shares
should $e $ase on actual mo#ement of shares price measured more in money !
percenta%e term ! nothin% else.

In euity analysis& calculations are $ased on 'A(TS ! not on )*+E. The su$,ect of
euity analysis is an attempt to determine future share price mo#ement with the help of
-ATI* ANALYSIS& STU.Y *' /-A+). Euity analysis does not discuss how to $uy
! sell shares& $ut does discuss the methods& which ena$les the in#estor to arri#in% at
$uyin% ! sellin% decision.
The Technical Approach to in#estment is essentially a reflection of the idea that prices
mo#es in a trend that are determined $y the chan%in% attitude of in#estors toward a
#ariety of economic& monetary& political and psycholo%ical forces. The art of technical
analysis& for it is an art& is to identify a trend re#ersal at a relati#ely early sta%e and ride
on that trend until the wei%ht of the e#idence shows or pro#es the trend has re#ersed.
0
INTRODUCTION TO BSE AND NSE
1om$ay Stock E2chan%e Limited is the oldest stock e2chan%e in Asia with a rich
herita%e. +opularly known as 31SE4& it was esta$lished as 3 The Nati#e Share ! Stock
1rokers Association 4 in 0567. It is the first stock e2chan%e in country to o$tain
permanent reco%nition in 0879 from the /o#ernment of India under the Securities
(ontracts :-e%ulation; Act& 0879. The E2chan%e<s pi#otal and pre=eminent role in the
de#elopment of the Indian capital market is widely reco%ni>ed and its inde2& SENSE?& is
tracked worldwide. Earlier an Association of +ersons :A*+;& the E2chan%e is now a
demutualised and corporati#e entity incorporated under the pro#isions of the (ompanies
Act& 0879& pursuant to the 1SE :(orporatisation and .emutuali>ation; Scheme& @AA7
notified $y the Securities and E2chan%e 1oard of India :SE1I;.
"ith demutuali>ation& the tradin% ri%hts and ownership ri%hts ha#e $een de linked
effecti#ely addressin% concerns re%ardin% percei#ed and real conflicts of interest. The
E2chan%e is professionally mana%ed under the o#erall direction of the 1oard of
.irectors. The 1oard comprises eminent professionals. -epresentati#es of Tradin%
Bem$ers and the Bana%in% .irector of the E2chan%e. The 1oard is inclusi#e and is
desi%ned to $enefit from the participation of market intermediaries.

The E2chan%e has a nation=wide reach with a presence in C06 cities and towns of India.
The systems and processes of the E2chan%e are desi%ned to safe%uard market inte%rity
and enhance transparency in operations. .urin% the year @AAC=@AA7& the tradin% #olumes
on the E2chan%e showed ro$ust %rowth.

The E2chan%e pro#ides an efficient and transparent market for tradin% in euity& de$t
instruments and deri#ati#es. The 1SE *n Line Tradin% System :1*LT; is a proprietary
system of the E2chan%e and is 1S 6688=@=@AA@ certified. The sur#eillance and clearin%
and settlement functions of the E2chan%e are IS* 8AA0D@AAA certified.
@
SENSEX THE BAROMETER OF INDIAN CAPITAL MARKETS
'or the premier Stock E2chan%e that pioneered the stock $rokin% acti#ity in Indian& 0@5
years of e2perience seems to $e a proud milestone. A lot has chan%ed since 0567 when
E05 persons $ecame mem$ers of what today is called 3The Stock E2chan%e& Bum$ai4 $y
payin% a princely amount of -e0. Till the decade of ei%hties& there was no scale to
measure the ups and downs in the Indian stock market. The Stock E2chan%e& Bum$ai
:1SE; in 0859 came out with a stock inde2 that su$seuently $ecame the $arometer of
the Indian stock market.
'irst compiled in 0859& SENSE? is a $asket of EA constituent stocks representin% a
sample of lar%e& liuid and representati#e companies. The $ase year of SENSE? is 0865=
68 and the $ase #alue is 0AA. The inde2 is widely reported in $oth domestic and
international markets throu%h print as well as electronic media. The entry and e2it of any
specific stock depends on the market capitali>ation of the top EA companies in the market
and are from different sectors.
NATIONAL STOCK EXCHANGE
The National Stock E2chan%e :NSE; is India<s leadin% stock e2chan%e co#erin% #arious
cities and towns across the country. NSE was set up $y leadin% institutions to pro#ide a
modern& fully automated screen=$ased tradin% system with national reach. The E2chan%e
has $rou%ht a$out unparalleled transparency& speed ! efficiency& safety and market
inte%rity. It has set up facilities and procedures.
NSE has played a catalytic role in reformin% the Indian securities market in terms of
microstructure& market practices and tradin% #olumes. The market today uses state=of=art
information technolo%y to pro#ide an efficient and transparent tradin%& clearin% and
settlement mechanism& and has witnessed se#eral inno#ations in products ! ser#ices #i>.
demutuali>ation of stock e2chan%e %o#ernance& screen $ased tradin%& +rofessionalisation
of tradin% mem$ers& fine=tuned risk mana%ement systems& emer%ence of clearin%
corporations to assume counter party risks& market of de$t and deri#ati#e instruments and
intensi#e use of information technolo%y. I.1I ! other financial institution with paid
euity capital of -s @7 cores set up NSE. It started operation in "holesale de$t market in
Fune 088C ! in euity& in No# 088C.
E
2. COMPANY PROFILE
KBB INVESTMENTS

G11 INHESTBENTS is a financial ser#ices enterprise that $rin%s in#estors an array
of financial products& all under one roof. This is in#estor<s one stop financial shop.
C
KBB
INVESTMENTS
Stock Bok!"# D!$t!%&t!o"
S'(!c'$
Pot)o*!o
M+"+#','"t.
E-&!t!'$.
co,,o/!t!'$. )o'0
t+/!"# $'(!c'$.
D!$t!%&t!o" 1o&$'
)o )!"+"c!+*
2o/&ct$.
M+"+#!"# 2ot)o*!o$
o) ,'/!&, +"/ %!#
!"('$to$.
ANGEL BROKING LTD
G11 INHESTBENTS are channel partners of An%el 1rokin% Ltd.& one of the ma,or
$rokin% houses and lead sponsors of (N1( TH 05 in#estor camp& to offer in#estors
Euity& 'utures ! (ommodities tradin% platform. G11 INHESTBENTS are associates
of all Butual 'und )ouses. G11 INHESTBENTS help in#estors choose a Butual fund
$ased on study of the 'und performance. G11 INHESTBENTS are a%ency to ma,or
Insurance companies to $rin% to in#estors Life Insurance& /eneral Insurance& ULI+ and
other insurance products.
)owe#er G11 INHESTBENTS are not here ,ust to sell in#estment products. It is
foremost effort to educate in#estors of the concept and functionality of e#ery financial
product. G11 INHESTBENTS $rin% to li%ht the associated risk ! returns& $enefits !
draw$acks. G11 INHESTBENTS remain transparent of hidden costs and also related
Income Ta2 implications.
As the relationship with in#estors matures& G11 INHESTBENTS endea#or to know
in#estors more& their financial o$li%ations& current cash flow and understand their future
e2pected financial needs. Upon this& usin% 'und 'low (alculator G11 INHESTBENTS
craft in#estor<s financials and su%%est them in#estment a#enues $est suited to their needs.
E'+B is a uniue ser#ice G11 INHESTBENTS offer. G11 INHESTBENTS take pride
to mana%e in#estors Euity and 'utures portfolio with in#estors ha#in% no worries of the
$ulls and $ears of the stock markets. 1ased on G11 INHESTBENT<S tireless research
and ad#ice of e2perts G11 INHESTBENTS pool in#estor<s money in potential stocks to
e2ploit the hi%her returns of the stock Barket.
7
3HY KBB INVESTMENTS45
Stron% industry focus leadin% to inno#ati#e and informed
strate%ic ser#ices.
Lon% term relationships with $oth strate%ic and financial
$uyer community.
.eep understandin% of Indian market and clients.
Stron% momentum=si%nificant increase in market share in
last @ years.
Increase in num$er of franchise and clients.
Transparent and speedy transaction.
.edicated focus on medium clients.
(omprehensi#e ran%e of financial products and ser#ices.
"orkin% with leadin% $rokin% firms:An%el 1rokin% Ltd;.
Tie up with many mutual fund and financial ser#ices
pro#ider.
G11 INHESTBENT is committed to $e in#estor<s friend in their financial %rowth !
prosperity. G11 INHESTBENTS look forward to ha#e a lon%=term $usiness association
offerin% in#estors a complete transparency in their conduct.
9
E2perienced
mana%ement
'ast %rowin%
'ranchise
(omprehensi#e
fin. ser#ices.
sseser#ices
Strate%ic partners
6. OB7ECTIVES
It was %ood opportunity to familiari>e myself with the stock market i.e. the capital market
! its co=relation with economical en#ironment throu%h 3E8UITY RESEARCH4. The
analysis of euity %i#es me the opportunity to understand thorou%hly this $eha#ioral
patterns of different euity ! o#erall capital market.
The main o$,ecti#es of the pro,ect research is as follows.
0. To study the euity analysis and o$tain the knowled%e of euity market
@. To study the present $eha#iors ! predictin% the future $eha#ior of euity in stock
market.
E. *$tain the knowled%e a$out how to select the companies for in#estment.
C. To analy>e the performance of a company throu%h 1alance Sheet ! Technical
%raph of their shares.
RATIONALE
The present market scenario is not %ood as compare to situation prior to si2 months. Now
it is showin% some resistance from in#estors as well as financial institutions. 1ut some
of the research firms showed that Share Barket will $e the fastest %rowin% in India as
compare to %lo$al markets.
'rom last two years share market was in $oom. Now it is possi$le for the in#estors to
trade from their own place. As compare to last two years where there was a %rowth in the
num$er of share $rokers and market analysts& which is sta$ili>in% now. Bedia is playin%
an important role in these re%ards. As inflation is on rise& rate of return of different
%o#ernment securities and $ank fi2ed deposits are not #aryin% accordin%ly %i#in%
ne%ati#e rate of return. Now the common man is also thinkin% of some in#estment in
6
share market. Too many in#estors in#est their money for the short span& the intention is
speculati#e
9. RESEARCH METHODLOGY
Fo,+t!o" o) "''/ )o 2o:'ct ;ok
"hen I %ot introduced to the primary information on stock market I was attracted $y
make easy money nature of the market. 1ut after acknowled%in% the risk in#ol#ed and
the #olatility of the market I stepped do %round. The only way out for this was the
thorou%h study of the stock market and analysis of #arious in#estment options.
L!t'+t&' $&('<
The first step forward was the Literature sur#ey as much as possi$le. I went throu%h
#arious $ooks and ma%a>ines related to in#estment analysis. I could collect a lot of data
and theory from academic $ooks& %o#ernment reports& ma%a>ines& newspaper& etc.
D'('*o2!"# ;ok!"# 1<2ot1'$!$
"orkin% hypothesis is a tentati#e assumption made in order to draw out and test it<s
lo%ical and empirical conseuences. They pro#ide focal point for research. They also
affect the manner in which test must $e conducted in analysis of data and directly the
uality of data which is reuired to $e analy>ed.
I de#eloped workin% hypothesis in followin% waysD
.iscussion with collea%ues and e2perts on stock market and it<s functionin%.
E2amination of data and records
-e#iew of similar studies and their results
Throu%h personal o$ser#ations and in#esti%ation
5
Co**'ct!o" o) /+t+
P!,+< $o&c' !"c*&/'$45
0; .iscussion with $ranch mana%er
@; .iscussion with e2perts
E; Questionnaires for in#estors
C; Li#e tradin% in the market
S'co"/+< $o&c' !"c*&/'$45
0; Harious $ooks related to stock market
@; 1ooks related to 'inancial Bana%ement
E; "e$ sites were used as the #ital information source
A"+*<$!$ o) /+t+
The data collected from primary and secondary resources was well or%ani>ed and made
ready for analysis. Analysis of the data was made throu%h the application of #arious
statistical and analytical methods. The interrelationship $etween #arious parts of the data
was found out. The necessary interpretation was drawn out of it. In this way usin%
different statistical methods& the data collected was $ein% analy>ed and important and
rele#ant information was $ein% e2tracted from it.
After analysis and thereof interpretation tri%%ered off new uestions which in turn %a#e
new hori>ons to the pro,ect work.
G11 INHESTBENTS felt need of e#aluatin% the price patterns of leadin% scripts mainly
from the different sector companies and also interested in determinin% the trends alon%
with price performance in near future. This euity analysis will facilitate to in#estor for
profita$le in#estment.
8
=. E8UITY ANALYSIS
=. +. FUNDAMENTAL ANALYSIS
A in#estor& while $uyin% stock& has the primary purpose of %ain. If he in#ests for a short
period of time& it is speculati#e $ut when he holds it for a fairly lon% period of time&
the anticipation is that he would recei#e some return on his in#estment. The
fundamental analysis is a method of findin% out the future price of a stock& which
an in#estor wishes to $uy. The method for forecastin% the future $eha#iors of
in#estment and the rate of return on them is clear throu%h an analysis of the $road
economic forces& industry analysis& the company analysis and ratio analysis.
A. I")*&'"c' o) t1' 'co"o,< o" t1' co,2+"<.

T1'$' +' t1' )o**o;!"# )+cto4 5
0. Economic /rowth
@. +opulations
E. Bonsoons and A%riculture +roduction
C. Natural resources and a#aila$ility of raw material
7. Industrial +roductions
9. Inflation
6. Interest rate
5. 'orei%n e2chan%e reser#e
8. 1alance of payment position
0A. 1ud%et deficits
00. +u$lic de$t and forei%n de$t
0@. .omestic sa#in% and capital output rate
0E. Employments
0C. Ta2ation policies
07. Infrastructure facilities
0A
09. /o#ernment policies
06. +olitical Sta$ility
05. International de#elopments
08. (apital formations
@A. Sa#in% pattern
@0. Economic indicators
@@. 'orei%n direct in#estments
@E. -upee=.ollar 'luctuation
@C. Stock News

B. I"/&$t!+* A"+*<$!$.
The industry analysis should take into account the followin% factors that influence
the performance of the company& whose share prices are to $e analy>ed.
Po/&ct L!"'.
It is also necessary to know the industries with a hi%h %rowth potential like
computers& electronics& chemicals& diamonds& te2tiles etc. and whether the
industry is in the priority sector of the key industry %roup of capital %oods or
consumers %oods %roup.
R+; M+t'!+* +"/ I"2&t$.
Under these head& we ha#e to look in to industries dependin% on imports of scare
raw materials& competition from other companies and industries and the $arriers
to entry of new company& protection from forei%n competition& import and e2port
restriction etc.
00
C+2+c!t< I"$t+**'/ +"/ Ut!*!>'/.
The demand for industrial product in the economy is estimated $y the plannin%
commission and the /o#ernment& and the units are %i#en licensed capacity on the
$asis of these estimates.
I"/&$t< C1++ct'!$t!c$.
It included whether the industry is cyclical& fluctuatin% of sta$le. It is also
important whether industry produce seasonal product or 'B(/. It also includes
demand of product& frei%ht char%es& cost of production& ad#ertisement cost& skill
of operation& profita$ility.
D',+"/ +"/ M+k't.
It includes demand of the product in the market and price of raw material and
other input cost like frei%ht& electricity& season& monsoon& etc. if the nature of
product is such as dru%s& fertili>er or other consumer %oods& whose price and
distri$ution control $y /o#ernment.
Go('",'"t Po*!c< ;!t1 '#+/ to I"/&$t<
/o#ernment +olicy is announced in the industrial policy resolution and
su$seuent announcement from time to time $y the /o#ernment. The +olicy
strate%y as laid down in the fi#e years plans accordin% to plannin% commission
and e2pected demand in the economy.
M+"+#','"t.
If the promoters and the mana%ement are efficient and capa$le of steerin% the
company throu%h the difficult days such mana%ement likes TATA ! 1I-LA& who
ha#e reputation& $uildup their companies on the stron% foundation. The
mana%ement has to $e assessed in the terms of their capa$ilities& popularity&
honesty and inte%rity.
0@
=. %. TECHNICAL ANALYSIS

The methods used to analy>e securities and make in#estment decisions fall into two #ery
$road cate%oriesD F&"/+,'"t+* A"+*<$!$ +"/ T'c1"!c+* A"+*<$!$. 'undamental analysis
in#ol#es analy>in% the characteristics of a company in order to estimate its #alue.
Technical analysis takes a completely different approachI it doesn<t care one $it a$out the
3(+*&'4 of a company or a commodity. Technicians :some time called chartists; are only
interested in the price mo#ement in the market.
.espite all the fancy and e2otic tools it employs& technical analysis relies on ,ust studies
of $&22*< +"/ /',+"/ in a market in an attempt to determine what direction& or t'"/&
will continue in the future. In other words& technical analysis attempts to understand the
emotions in the market $y studyin% the market it self& as opposed to its components. If
you understand the $enefits and limitation of technical analysis it can %i#e you a new set
of tools or skills than will ena$le you to $e a $etter trader or in#estor.
DEFINITION
Technical analysis is a method of e#aluatin% the securities $y analy>in% the statistics
%enerated $y the market acti#ity& such as past price and (o*&,'. In technical analysis&
analysts use charts and other tools to identify 2+tt'"$ that can su%%est future acti#ity.
Fust as there are many in#estment styles on fundamental side& there is also much different
type of technical traders. Some rely on chart patterns. In any case& technical analysts
e2clusi#e use of historical price and #olume data& is what separates them from their
fundamental counterparts. Unlike fundamental analysts& technical analysts don<t care
whether a stock is under#alued or o#er#alued the only thin% that matter is a security<s
past tradin% data and what information this data can pro#ide a$out where the security
mi%ht mo#e in the future
0E
A$$&,2t!o"$4
1. T1' M+k't D!$co&"t$ E('<t1!"#
A ma,or criticism of technical analysis is that it only considers price mo#ement& i%norin%
the fundamental factors of the company. )owe#er& technical analysis assumes that& at any
%i#en time& a stocks price reflects e#erythin% that has or could affect the company=
includin% fundamental factors. Technical analysts $elie#e that the company<s
fundamentals& alon% with $roader economic factors and market psycholo%y& are all priced
into the stock& remo#in% the need to actually consider these factors separately.
This only lea#es the analysis of price mo#ement& which technical theory #iews as a
product of supply and demand for a particular stock in the market.
2. P!c' Mo('$ I" T'"/$
In technical analysis& price mo#ements are $elie#ed to follow trends. This means that
after a trend has $een esta$lished& the future price mo#ement is more likely to $e in the
same direction as the trend that to $e a%ainst it. Bost technical tradin% strate%ies are
$ased on this assumption.
6. H!$to< T'"/$ To R'2'+t It$'*)
Another important idea in technical analysis is that history tends to repeat itself& mainly
in terms of price mo#ement. The repetiti#e nature of price mo#ement is attri$uted to
market psycholo%yI in other words& market participants tend to pro#ide a consistent
reaction to similar market stimuli o#er time. Technical analysis uses chats patterns to
analy>e market mo#ements and understand trends. Althou%h many of these charts ha#e
$een use for more than 0AA years they are still $elie#ed to $e rele#ant $ecause they
illustrate patterns in price mo#ements that often repeat themsel#es.
0C
L!"' c1+t$
A style of charts that is created $y connectin% a series of data points to%ether with a line.
This is the most $asic type of charts used in finance and connectin% a series of past prices
to%ether with a line %enerally creates it.
B+ c1+t
A style of chart used $y some technical analysts& on whom as illustrated $elow& the top of
the #ertical line indicates the hi%hest price a security traded at durin% the day& and the
$ottom represents the lowest price. The closin% price is displayed on the ri%ht side of the
$ar& and the openin% price is shown on the left side of the $ar. A sin%le $ar like the one
$elow represents one day of tradin%.

These are the most popular type of chart used in technical analysis. The #isual
representation of price acti#ity o#er a %i#en period of time is used to spot trends and
patterns.
07
C+"/*'$t!ck
A price chart that displays the hi%h& low& open and close for a security each day o#er a
specified period of time.
There are many tradin% strate%ies $ased upon patterns in candlestick chartin%.

09
T'c1"!c+* +"+*<$!$4
T1' &$' o) t'"/
*ne of the most important concepts in technical analysis is that of trend. The meanin% in
finance isn<t all that different from the %eneral definition of the term= a trend is really
nothin% more than the %eneral direction in which a security or market is headed.

T1' I,2ot+"c' o) T'"/
It is important to $e a$le to understand and identify trends so that you can trade with
them rather than trade a%ainst them. Two important sayin%s in technical analysis are 3 the
trend is your friend4 and 3 don<t $uck the trend4 Illustratin% how important trend analysis
is for technical trade.

T<2'$ o) T'"/
There are three types of trendD
Up Trends
.owntrends
SidewaysJ )ori>ontal Trends
As the names imply& when each successi#e peak and trou%h is hi%her& is referred to as an
upward trend. If the peaks and trou%hs are %ettin% lower. It is a downtrend. "hen there is
little mo#ement up or down in the peaks and trou%hs& it<s a sideways or hori>ontal trend.
If you want to %et really technical& you mi%ht e#en say that a sideways trend is actually
not a trend on its own& $ut a lack of a well=defined trend in either direction. In any case&
the market can really only trend in these three waysD up& down or nowhere.
06
U2t'"/
.escri$es the price mo#ement of a financial asset when the o#erall direction is upward. A
formal uptrend is when each successi#e peak and trou%h is hi%her than the ones found
earlier in the trend.


Notice how each successi#e peak and trou%h is located a$o#e the pre#ious ones. 'or
e2ample& the peak at trend is hi%her than the peak at uptrend. The uptrend will $e deemed
$roken if the ne2t low on the chart falls $elow trend.

Do;"t'"/
05

.escri$es the price mo#ement of a financial asset when the o#erall direction is
downtrend. A formal downtrend occurs when each successi#e peak and trou%h is lower
than the ones found earlier in the trend.
Notice how each successi#e peak and trou%h is lower than the pre#ious one. 'or e2ample&
the low trend is lower than the low at +oint. The downtrend will $e deemed $roken once
the price closes a$o#e the hi%h at hi%h direction trend.
.owntrend is the opposite of uptrend.

H'+/ +"/ S1o&*/'$ P+tt'"
A technical analysis term used to descri$e a chart formation in which a stocks priceD
0 -ises to a peak and su$seuently declines.
@. Then& the price rises a$o#e the former peak and a%ain declines
E. And finally& rises a%ain& $ut not to the second peak& and declines once
more.
The 'irst and Third peaks are shoulders& and second peak forms the head.
The 3)ead =and KShoulders4 pattern is $elie#ed to $e one of the most relia$le trend
re#ersal patterns.

08
Mo(!"# A('+#'5 MA
An indicator freuently used in technical analysis showin% the a#era%e #alue of a
security<s price o#er a set of period. Bo#in% a#era%es are %enerally used to measure
momentum and define areas of possi$le support and resistance.
The mo#in% a#era%e line of price of the stock under consideration helps a in#estor in
followin% ways to take $uy or sell decisionsD
"hen the actual market price line cuts the mo#in% a#era%e line of price from
$elow it the ri%ht time to $uy.
"hen the actual market price line cuts the mo#in% a#era%e line of price from
a$o#e it the ri%ht time to sell.
@A
Do; T1'o<
.ow Theory asserts that ma,or market trends are composed of three phasesD
0; A" Acc&,&*+t!o" P1+$'D The accumulation phase is a period when in#estors Lin
the knowL are acti#ely $uyin% :sellin%; stock a%ainst the %eneral opinion of the
market. .urin% this phase& the stock price does not chan%e much $ecause these
in#estors are in the minority a$sor$in% :releasin%; stock that the market at lar%e is
supplyin% :demandin%;.
@; A P&%*!c P+t!c!2+t!o" P1+$'4 E#entually& the market catches on to these astute
in#estors and a rapid price chan%e occurs. This occurs when trend followers and
other technically oriented in#estors participate.
E; A D!$t!%&t!o" P1+$'D Second phase continues until rampant speculation occurs.
At this point& the astute in#estors $e%in to distri$ute their holdin%s to the market.
E**o!tt 3+(' t1'o<
The wa#e principle posits that collecti#e in#estor psycholo%y :or crowd psycholo%y;
mo#es from optimism to pessimism and $ack a%ain. These swin%s create patterns& as
e#idenced in the price mo#ements of a market at e#ery de%ree of trend.
+ractically all de#elopments which result from :human; socialeconomic processes follow
a law that causes them to repeat themsel#es in similar and constantly recurrin% serials of
wa#es or impulses of definite num$er and pattern. -. N. Elliott& in Nature<s LawD The
Secret of the Uni#erse ElliottMs model says that market prices alternate $etween fi#e
wa#es and three wa#es at all de%rees of trend& as the illustration shows. As these wa#es
de#elop& the lar%er price patterns unfold in a self=similar fractal %eometry. "ithin the
dominant trend& wa#es 0& E& and 7 are Lmoti#eL wa#es& and each moti#e wa#e itself
su$di#ides in fi#e wa#es. "a#es @ and C are Lcorrecti#eL wa#es& and su$di#ide in three
wa#es. In a $ear market the dominant trend is downward& so the pattern is re#ersedNfi#e
wa#es down and three up. Boti#e wa#es always mo#e with the trend& while correcti#e
wa#es mo#e opposite it.
@0
?. +. INDUSTRY ANALYSIS IT SECTOR
The Indian IT ser#ices market has witnessed stron% %rowth o#er the past few years& on
the $ack of increased offshore outsourcin% initiati#es from %lo$al corporations. Bore and
more %lo$al corporations are tryin% to impro#e their cost efficiency and& thus&
outsourcin% their technolo%y reuirements to low=cost countries like India. In fact& it is
the offshore component that has $een seein% impressi#e traction& dri#en $y increasin%
acceptance of the O%lo$al deli#ery model<. "hile the rupee<s appreciation a%ainst the US
dollar and risin% wa%es ha#e taken some toll on the companies< profita$ility& the fact that
demand now seems to $e shiftin% from low=end ser#ices to hi%h=end ones& like IT
consultin%& packa%e implementation and systems inte%ration& seems to au%ur well for the
lar%er and more technolo%y intensi#e players in the sector
BUDGET 2@@A5@B MEASURES RELATED TO IT SECTOR
The $ud%et has allocated -s 0&95A crore to the .epartment of Information
Technolo%y in @AA5=A8 as a%ainst -s 0&7AA crore in @AA6=A5 and has announced
three new schemes namelyD
0. Two schemes for esta$lishin% 0AA&AAA $road$and internet=ena$led (ommon
Ser#ice (entres in rural areas and State "ide Area Networks :S"AN; with
(entral assistance. This is already under implementation. -s 6&7AA crore is
allocated for common ser#ice centre and -s 67A crore for S"AN.
@. New scheme with $ud%etary allocation of -s @67 $n launched for State .ata
(entres.
(ustomised software has $een $rou%ht under the ser#ice ta2 net and will attract
0@P ser#ice ta2
E2cise duty has $een increased on packa%ed software from 5P to 0@P to $rin% it
at par with customised software.
@@
BUDGET IMPACT
ITJITES sector will $enefit lar%ely $ecause of increase spendin% on education&
which will result in lar%e talent pool of professionals. This spendin% on education
will also help in reducin% the supply side constraints that is currently faced $y the
leadin% companies in hirin% uality professionals
The ser#ice ta2 on customised software is a ne%ati#e for technolo%y companies
$ut it will $e passed on to the clients.
COMPANY IMPACT
"hile the Tier=I IT companies will not $e se#erely impacted as they can easily
mo#e to SEQ& it is the mid tier IT companies which will feel the heat.
(ompanies like NIIT Technolo%ies and BindTree (onsultin% will $e ad#ersely
impacted from April @AA8 onwards when the ta2 $enefits end. These companies
will find it difficult to mi%rate to SEQ& as it would entail hu%e cash outflow.
(ompanies like NIIT& Educomp Solutions and E#eronn Systems& which are
functionin% in the e=learnin% area will $enefit due to the increased thrust on
education to raise the talent pool in the country.
Tulip IT ser#ices will $enefit due to implementation of S"AN pro,ects
KEY POSITIVES
Mo(!"# &2 t1' (+*&' c1+!"4 Indian software companies are consistently
$roadenin% their portfolio of offerin%s and mo#in% fast up the #alue chain. /i#en
that traditional ser#ices& such as application de#elopment and maintenance
:A.B;& are %ettin% commoditised& it is imperati#e for these companies to mo#e
hi%her up the #alue chain into areas like consultin%& packa%e implementation and
systems inte%ration. Not only will this help Indian companies %et hi%her $illin%
rates from their clients& it will also %i#e them an opportunity to work closely with
the top mana%ements of client companies.
Mo(!"# &2 t1' (+*&' c1+!"4 Indian software companies are consistently
$roadenin% their portfolio of offerin%s and mo#in% fast up the #alue chain. /i#en
that traditional ser#ices& such as application de#elopment and maintenance
:A.B;& are %ettin% commoditised& it is imperati#e for these companies to mo#e
hi%her up the #alue chain into areas like consultin%& packa%e implementation and
systems inte%ration. Not only will this help Indian companies %et hi%her $illin%
@E
rates from their clients& it will also %i#e them an opportunity to work closely with
the top mana%ements of client companies.
KEY NEGATIVES
H!#1 '*!+"c' o" t1' US ,+k't$4 The US marketMs share in IndiaMs software and
ser#ices e2ports is fairly hi%h& at around 9AP to 97P. E#en thou%h it has come
down a little durin% the last year $ut such a lar%e de%ree of dependence on a
sin%le %eo%raphical location spells hi%h risk for the Indian software sector. *#er
that& the $acklash in the US a%ainst outsourcin% of ,o$s to low=cost countries like
India has raised some medium=term concerns for Indian software companies.
D'c'+$!"# co,2't!t!(' +/(+"t+#'$4 Increasin% competition from %lo$al
technolo%y ma,ors has not only threatened the Indian IT industryMs cost leadership&
Indian software companies ha#e also $een made to face intense competition for
talent. All these pressures mean flat $illin% rates and hi%her employee costs %oin%
forward. This is likely to affect mar%ins and& conseuently& the profita$ility of
Indian companies. The 1+* ser#ice pro#iders ha#e achie#ed maturity in practices
like relationship mana%ement and knowled%e mana%ement. They need to
di#ersify to employee en%a%ement& process impro#ement& recruitment& mi%ration
plannin% and workforce mana%ement. If this is not done& the IT companies could
find maintainin% the current client satisfaction le#el as challen%in%.
H!#1 +t'$ o) +tt!t!o"4 )i%h attrition& especially in the middle and senior
positions& continue to dama%e the performance of Indian software companies to a
certain e2tent. The a#era%e industry rate is around 05P which when compared to
other industries is on the hi%her side. The companies& in a $id to o#ercome hi%h
attrition rates& are recruitin% science %raduates and trainin% them& which means
hi%her trainin% cost and loss of $illa$le hours. Apart from competition for talent
from BN( technolo%y ma,ors& internal factors like ,o$ dissatisfaction and hi%her
aspirations :in case of 1+* companies; ha#e led to such hi%h attrition rates in the
Indian software sector.

INFOSYS
@C
Infosys Technolo%ies Ltd :Infosys; was incorporated on Fuly @& 0850& as a pri#ate ltd
company. It $ecame pu$lic limited company. To $ecame pu$lic limited company on Fune
088@ and su$seuently the name was also chan%ed to Infosys Technolo%ies Ltd. It was
the first Indian company to $e listed on American Stock E2chan%e. The company is one
of India<s leadin% information technolo%ies :IT; ser#ices companies. Enterprise Ser#ices&
+roduct -!. ser#ices and (onsultin% Ser#ices. The company is ha#in% its )eaduarters
in 1an%lore and has 06 offshore de#elopment facilities like Aerospace ! .efense&
Automoti#e& and 1ankin% ! (apital Barkets. (ommunication Ser#ices& Ener%y&
Insurance& )ealthcare& Bedia& Transportation Ser#ices etc.& Infosys Technolo%ies came
out with an I+* in 'e$. 088E at a premium of -s 87 for a face #alue of -s 0A per share.
Since then& it has issued three $onus issues :each in the ratio of 0D0; and split its face
#alue of -s 7 each. In 'e$ @AAA& the A.-s were split in the ratio of @D0. In @AAC=A7 the
company has si%ned up 0E9 new clients and had a total client $ase of CE5 at the end of
the year. The company<s product='INA(LE& is an inte%rated core $ankin% solution that is
centrali>ed& muliti=currency and multi=lan%ua%e=ena$led& functionally rich& and addresses
$oth retail and corporate $ankin% reuirements. .urin% @AA@& /*I has raised the
in#estment limit in an Indian (ompany for 'II from C8P to the ma2imum le#el appro#ed
$y '.I and the ma2imum limit for the software industry as appro#ed $y '.I is 0AAP at
present& the company is in the plan of increasin% the limit of such in#estment to 0AAP. In
@AA9 The (ompany has completed the construction of an employee trainin% facility in
Bysore& India to further enhance our employee trainin% capa$ilities. The Bysore Trainin%
comple2 wills accommodate C&7AA trainees at a time.


B+*+"c' S1''t
@7
M+ C @A M+ C @D M+ C @? M+ C @=
SOURCES OF FUNDS
O;"'C$ F&"/
Euity Share (apital @59.AA @59.AA 0E5.AA 0E7.@8
Share Application Boney A.AA A.AA A.AA A.AA
+reference Share (apital A.AA A.AA A.AA A.AA
-eser#es ! Surplus 0E&@AC.AA 0A&569.AA 9&678.AA 7&0A9.CC
Lo+" F&"/$
Secured Loans A.AA A.AA A.AA A.AA
Unsecured Loans A.AA A.AA A.AA A.AA
Total 0E&C8A.AA 00&09@.AA 9&586.AA 7&@C0.6E

USES OF FUNDS
F!0'/ A$$'t$
/ross 1lock C&7A5.AA E&558.AA @&5E6.AA @&05@.6@
Less D -e#aluation -eser#e A.AA A.AA A.AA A.AA
Less D Accumulated .epreciation 0&5E6.AA 0&6E8.AA 0&@67.AA 0&AA7.5@
Net 1lock @&960.AA @&07A.AA 0&79@.AA 0&069.8A
(apital "ork=in=pro%ress 0&@9A.AA 876.AA 760.AA E06.7@

I"('$t,'"t$ 89C.AA 5E8.AA 569.AA 0&E@5.6A

N't C&'"t A$$'t$
(urrent Assets& Loans ! Ad#ances 0@&E@9.AA 8&ACA.AA 9&0A7.AA E&69C.97
Less D (urrent Lia$ilities ! +ro#isions E&6E0.AA 0&5@C.AA @&@06.AA 0&EC9.AC
Total Net (urrent Assets 5&787.AA 6&@09.AA E&555.AA @&C05.90
Biscellaneous e2penses not written A.AA A.AA A.AA A.AA
Total 0E&C8A.AA 00&09@.AA 9&586.AA 7&@C0.6E
Not' 4
1ook Halue of Unuoted In#estments 89C.AA 5E8.AA 569.AA 0&E@5.6A
Barket Halue of Quoted In#estments A.AA A.AA A.AA A.AA
(ontin%ent lia$ilities 9AE.AA 96A.AA 7@E.AA @58.56
Num$er of Euity shares outstandin% :in Lacs; 7&608.89 7&60@.0A @&677.77 @&6A7.60
K'< R+t!o$
@9
M+ C @A M+ C @D M+ C @? M+ C @=
PER SHARE RATIOS

Ad,usted E + S :-s.; 65.A9 97.C@ 8A.97 95.E5
.i#idend +er Share EE.@7 00.7A C7.AA 00.7A

Net +rofit Bar%in :P; @6.E6 @5.A7 @9.06 @6.@5

LEVERAGE RATIOS

Lon% Term .e$t J Euity A.AA A.AA A.AA A.AA
Total .e$tJEuity A.AA A.AA A.AA A.AA
*wners fund as P of total Source 0AA.AA 0AA.AA 0AA.AA 0AA.AA
'i2ed Assets Turno#er -atio E.C6 E.E5 E.05 E.@A

LI8UIDITY RATIOS

(urrent -atio E.EA C.89 @.67 @.5A
(urrent -atio :Inc. ST Loans; E.EA C.89 @.67 @.5A
Quick -atio E.@5 C.80 @.6E @.66
In#entory Turno#er -atio A.AA A.AA A.AA A.AA

PAYOUT RATIOS

.i#idend payout -atio :Net +rofit; C8.66 08.57 75.E@ 05.C5
Earnin% -etention -atio 7A.06 68.80 CE.C5 5A.85
InterpretationsD
(urrent ratio is hi%h. )ence& it shows hu%e $locka%e of funds in current assets&
Le#era%e ratios shows that company has no de$t capital. The total capital is
contri$uted $y shareholders. This makes it safe to in#est.
.i#idend payout ratio is fairly %ood.

I")o$<$ (!$5E5(!$ IT ,+:o$.
@6

M+ C @A
INFOSYS TCS 3IPRO
-eported E+S :-s.; 65.A9 C9.A6 @A.89
.i#idend +er Share EE.@7 0C.AA 9.AA
Net +rofit Bar%in :P; @6.E6 @C.00 06.08
-eported -eturn *n Net "orth :P; EE.0E C0.EC @9.70
-eturn *n lon% Term 'unds :P; E6.66 C@.89 @E.E@
Lon% Term .e$t J Euity A A.A0 A.EE
(urrent -atio E.E 0.88 @.7C
.i#idend payout -atio :Net +rofit; C8.66 E7.77 EE.C6
Earnin% -etention -atio 7A.06 9@.C6 99.7E
I"t'2't+t!o"$4
1. EPS +"/ DPS !$ 1!#1'$t )o I")o$<$.
2. I")o$<$ !$ + )&**< o;"'/ co,2+"<.
6. T1' c&'"t +t!o !$ co,2++t!('*< 1!#1.
P!c' F*&ct&+t!o"$ o) I")o$<$ T'c1
@5
@8
G+21 No.1
T'c1"!c+* +"+*<$!$ o) I")o$<$ T'c1"o*o#< *t/.
'rom the chart of Infosys Technolo%y Ltd we can say that script is ha#in% $earish trend
as it is $reakin% new lows& it may further %o down.
F&"/+,'"t+*4 5
EA
0. There is a fluctuation in euity di#idend. There is no fi2ed policy re%ardin%
payment of di#idend.
@. -upee .ollar 'luctuation= As most of software companies in India ha#in% their
clients in the a$road& mostly in USA. Therefore& their earnin% are in dollars. 1ut
currently dollar is %ettin% stron% as compare to rupee& so company can %et more
rupee in return of dollars which they %et from their clients. So company is
currently lookin% in %ood position in dollar K rupee fluatuation.
E. In India& salary of software professional will $e increasin%& and it will mar%inally
affect profit of companies and $ecause of that& E+S will $e come down.
C. Infosys technolo%y Ltd. *n Fuly @AA6 has announced that it has si%ned a multi=
million dollar outsourcin% contract with -oyal +hilips Electronics. The deal with
+hilips reinforces the company<s leadership position in transformation $ased 1+*
ser#ices. The company<s 1+* has si%nificant %rowth o#er 6AP in re#enues and an
increase in client $ase of o#er one=third in 'Y @AA6.
7. /ross +rofit -atio of the (ompany is sta$le from last fi#e years. It is a %ood si%n
of consistency and smooth workin% of the company.
9. The Net +rofit -atio is constant for last four years. It means company has %ood
'uture.
6. 1ut due to current slowdown in world economy and mainly America& it will affect
the $usiness of Infosys and as a whole to IT and ITES industry.
?. %. INDUSTRY ANALYSIS ENGINEERING SECTOR
E0
"orld=class infrastructure has emer%ed as one of the most important necessities for
unleashin% hi%h and sustained %rowth and alle#iation of po#erty in any economy. And
with poor infrastructure to support other %rowth initiati#es& the Indian economy continues
to $e a la%%ard when compared to its de#elopin% peers. 'rom a policy perspecti#e&
howe#er& there has $een a %rowin% consensus that a pri#ate=pu$lic partnership is reuired
to remo#e difficulties concernin% the de#elopment of infrastructure in the country. The
realisation finally seems to $e settin% in. This makes the future of the Indian en%ineerin%
sector e2tremely $ri%ht. Apart from hi%hway de#elopment and construction and
modernisation of airports& the potential for the sector lies in the oil and %as space& where
hi%h %lo$al demand has led to increased action in e2ploration and production acti#ities. .
)owe#er& scale and e2ecution capa$ilities remain the mantras for success.
BUDGET 2@@A5@B MEASURES RELATED TO ENGINEERING SECTOR
-a,i# /andhi /rameen Hidyutikaran Yo,ana to $e continued durin% the Ele#enth
+lan period with a capital su$sidy of -s @5A $nI allocation of -s 77 $n for 'YA8.
-s 5 $n to $e pro#ided for Accelerated +ower .e#elopment and -eforms +ro,ect
:A+.-+; in 'YA8.
+roposal to set up a national fund for transmission and distri$ution :T!.; reform
in the power sector.
E2emption from CP additional duty of customs has $een withdrawn on power
%eneration pro,ects :other than me%a power pro,ects;& transmission& su$
transmission and distri$ution pro,ects& and specified %oods for hi%h #olta%e
transmission pro,ects.
(ustom duty on pro,ect imports reduced from 6.7P to 7P
Initiati#es like skill de#elopment pro%ramme and settin% up of industrial trainin%
institutes to $e taken
.efense allocation to $e increased $y 0AP
E2cise duty $ein% e2empted on end=use $asis& on refri%eration euipment
:consistin% of compressor& condenser units& e#aporator& etc; a$o#e @ T- :tonne
refri%eration; utilisin% power of 7A G" and a$o#e.
E@
+arent company allowed to set=off the di#idend recei#ed from its su$sidiary
company a%ainst di#idend distri$uted $y the parent companyI pro#ided that the
di#idend recei#ed has suffered ..T and the parent company is not a su$sidiary of
another company. cale and e2ecution capa$ilities remain the mantras for success
BUDGET IMPACT
A%%ressi#eness in allottin% UB++s to prospecti#e $idders e2pected to $e helpful
for en%ineerin% companies pro#idin% euipments and E+( ser#ices for power
plants.
Settin% up of a national fund for T!. reforms to aid %rowth prospects of
euipment suppliers and T!. pro,ect de#elopers.
-emo#al of e2emption from additional customs duty on power %eneration&
transmission and distri$ution pro,ects to increase cost for companies importin%
such pro,ects& which shall conseuently $e $eneficial for domestic pro,ect
de#elopers. )owe#er& on the other hand& reduction in custom duty on pro,ect
imports to nullify the impact.
Initiati#es like skill de#elopment pro%ramme and settin% up of industrial trainin%
institutes to reduce talent crunch for en%ineerin% companies& which are reportin%
hi%h le#els of attrition
Increase in defense allocation to aid prospect of companies pro#idin% defense
euipments and technolo%ies.
COMPANY IMPACT
Allocation of UB++s to support %rowth if euipment and ser#ice pro#iders like
1)EL& L!T and Siemens.
EE
/reater focus on the T!. front to $e $eneficial for A11& Siemens& (rompton
/rea#es& Emco& 1harat 1i,lee. Also& companies pro#idin% T!. pro,ect ser#ices
like Fyoti Structures and Galpataru Transmission to $enefit.
-emo#al of e2emption from additional customs duty on power %eneration&
transmission and distri$ution pro,ects to $enefit domestic companies like 1)EL&
L!T& Siemens and -eliance Ener%y.
Skill de#elopment initiati#es to pare pressure of attrition from companies like
L!T and 1)EL.
Increase in defense allocation to aid prospects of Tata +ower& L!T and 1harat
Electronics.
KEY POSITIVES
Po;' 2*+<4 Since power utilities are one of the $i%%est consumers :%eneration&
transmission and distri$ution; for en%ineerin% companies& reforms introduced in
the power sector like pri#atisation of SE1s will help in stren%thenin% the order
$ook si>e. )u%e addition in power %eneration capacity& in order to meet the
demand supply %ap will $e a $i% positi#e for the sector.
I")+$t&ct&' /'('*o2,'"t4 The %o#ernment is focusin% on de#elopment of
infrastructure like housin%& airports& roads and ports. This will $e $i% positi#e for
en%ineerin% and construction companies.
I"/&$t!+* F+ctG4 Industrial di#isions of en%ineerin% companies are likely to
$enefit from the increased focus on automation and capacity addition plans drawn
$y the India Inc.
KEY NEGATIVES
EC
C+2t!(' co,2't!t!o"4 .uty free import of T!. euipments $y capti#e power
%eneration units& if allowed $y %o#ernment& can ha#e some impact on mar%ins of
the T!. ma,ors $ecause of competition.
P'o2*' 2o%*',4 En%ineerin% companies& across the $oard& are facin% trou$led
times retainin% key employees. This is due to increased le#els of competition for
talent from BN(s& who ha#e deep pockets and thus $etter payin% capa$ilities. As
a result of increasin% le#els of attrition& some companies are facin% e2ecution
issues.
L H T Lt/.
E7
Larsen ! Tou$ro Limited :L!T; is a technolo%y=dri#en en%ineerin% and construction
or%ani>ation& and one of the lar%est companies in IndiaMs pri#ate sector. It has additional
interests in manufacturin%& ser#ices and Information Technolo%y. A stron%& customer=
focused approach and the constant uest for top=class uality ha#e ena$led the (ompany
to attain and sustain leadership in its ma,or lines of $usiness across se#en decades.
L!T has an international presence& with a %lo$al spread of offices. A thrust on
international $usiness o#er the last few years has seen o#erseas earnin%s %rowin% to 05
per cent of total re#enue. "ith factories and offices located around the country& further
supplemented $y a wide marketin% and distri$ution network& L!TMs ima%e and euity
e2tends to #irtually e#ery district of India.
L!T $elie#es that pro%ress must necessarily $e achie#ed in harmony with the
en#ironment. A commitment to community welfare and en#ironmental protection
constitute an inte%ral part of the corporate #ision.
H!$to<
The e#olution of L!T into the countryMs lar%est en%ineerin% and construction
or%ani>ations is amon% the more remarka$le success stories in Indian industry. The
company was founded in 1om$ay :Bum$ai; in 08E5 $y two .anish en%ineers& )ennin%
)olck=Larsen and Soren Gristian Tou$ro = $oth of whom were stron%ly committed to
de#elopin% IndiaMs en%ineerin% talent and ena$lin% it to meet the demands of industry.
1e%innin% with the import of machinery from Europe& L!T rapidly took on en%ineerin%
and construction assi%nments of increasin% sophistication. Today& the company sets
en%ineerin% $enchmarks in terms of scale and comple2ity.
B+*+"c' S1''t
E9
M+ C @A M+ C @D
M+ C
@?
M+ C
@=
SOURCES OF FUNDS
O;"'C$ F&"/
Euity Share (apital 75.C6 79.97 @6.C5 @7.85
Share Application Boney A.AA A.AA A.AA A.AA
+reference Share (apital A.AA A.AA A.AA A.AA
-eser#es ! Surplus 8&C6A.60 7&95E.57 C&75E.E@ E&E0@.@7
Lo+" F&"/$
Secured Loans EA5.7E @C7.CA C97.68 68E.6@
Unsecured Loans E&@67.C9 0&5E@.E7 856.65 0&A97.EC
Total 0E&00E.06 6&505.@7 9&A9C.E6 7&086.@8

USES OF FUNDS
F!0'/ A$$'t$
/ross 1lock C&055.80 @&569.EA @&EAA.95 @&0A9.77
Less D -e#aluation -eser#e @7.8A @6.8E @8.E6 EA.8A
Less D Accumulated .epreciation 0&@C@.C6 0&0@@.5E 85@.@@ 0&A58.7C
Net 1lock @&8@A.7C 0&6@7.7C 0&@58.A8 859.00
(apital "ork=in=pro%ress 988.AA C60.@@ @59.A9 97.5@

I"('$t,'"t$ 9&8@@.@9 E&0AC.CC 0&808.7@ 89A.6A

Net (urrent Assets
(urrent Assets& Loans ! Ad#ances 09&C89.C5 0@&AC8.E7 8&998.0E 5&89@.9C
Less D (urrent Lia$ilities ! +ro#isions 0E&8@5.06 8&7C@.0C 6&0@0.C0 7&506.56
Total Net (urrent Assets @&795.E0 @&7A6.@0 @&7C6.6@ E&0CC.66
Biscellaneous e2penses not written E.A9 8.5C @0.85 E8.58
Total 0E&00E.06 6&505.@7 9&A9C.E6 7&086.@8
Not' 4
1ook Halue of Unuoted In#estments 9&9C@.5@ @&806.00 0&58E.8@ 8@9.09
Barket Halue of Quoted In#estments 0&CAE.8@ 0&@58.C9 888.@8 7E6.8C
(ontin%ent lia$ilities CA7.E7 @6A.@@ EA7.78 9@7.0A
Num$er of Euity shares outstandin% :in Lacs; @&8@E.@6 @&5E@.60 0&E6E.59 0&@88.@C
K'< R+t!o$
E6

M+ C
@A
M+ C
@D
M+ C
@?
M+ C
@=
PER SHARE RATIOS

Ad,usted E + S :-s.; 98.0E C8.E9 78.5A CC.A0
.i#idend +er Share 06.AA 0E.AA @@.AA @6.7A

PROFITABILITY RATIOS

*peratin% Bar%in :P; 0@.85 00.7@ 5.9E 6.99
/ross +rofit Bar%in :P; 0@.08 0A.90 6.80 6.AA
Net +rofit Bar%in :P; 5.7C 6.6C 9.98 6.EE

LEVERAGE RATIOS

Lon% Term .e$t J Euity A.@6 A.@C A.@7 A.E5
Total .e$tJEuity A.E6 A.E9 A.E0 A.77
*wners fund as P of total Source 6@.99 6E.C@ 69.AE 9C.@E
'i2ed Assets Turno#er -atio 9.A8 9.@0 9.7A 9.E@

LI8UIDITY RATIOS

(urrent -atio 0.05 0.@9 0.E9 0.7C
(urrent -atio :Inc. ST Loans; 0.A8 0.09 0.@5 0.EC
Quick -atio A.59 A.8E 0.AE 0.0@
In#entory Turno#er -atio 9.AA 9.00 9.87 7.8@

PAYOUT RATIOS

.i#idend payout -atio :Net +rofit; @9.@8 EA.AC EC.A7 C0.E@
.i#idend payout -atio :(ash +rofit; @E.89 @9.86 EA.68 E6.87
Earnin% -etention -atio 60.6@ 98.57 75.A7 @5.58
(ash Earnin%s -etention -atio 6C.CA 6@.87 9@.58 E5.EE
I"t'2't+t!o"$
Earnin% retention ratio is consistently risin% which indicates company<s e2pansion
plans and other in#estments.
(urrent ratio is less than standard @D0. There is increase in current lia$ilities.
L H T (!$5E5(!$ ot1' E"##. M+:o$
E5
M+ C @A
L H T Lt/. BHEL B1++t E*'. Lt/.
-eported E+S :-s.; 6C.E7 75.C0 0AE.EC
.i#idend +er Share 06 07.@7 @A.6A
Net +rofit Bar%in :P; 5.7C 0E.56 08.E7
-eported -eturn *n Net "orth :P; @@.50 @9.7E @7.76
-eturn *n lon% Term 'unds :P; @5.6E C0.79 EC.58
Lon% Term .e$t J Euity A.@6 A.A0 A.AA
(urrent -atio 0.05 0.E5 0.6E
.i#idend payout -atio :Net +rofit; @9.@8 EA.7C @E.CE
Earnin% -etention -atio 60.6@ 6A.A6 6C.C7
I"t'2't+t!o"$4
(urrent ratio is low
Net profit is also comparati#ely low
L ! T is a pri#ate sector company while 1)EL and 1EL are +SUs. E#en then the performance of L !
T is impressi#e.
P!c' F*&ct&+t!o"$ o) $1+'$ o) L+$o" H To&%o Lt/.
E8
CA
G+21 No.9
T'c1"!c+* A"+*<$!$D The chart of Larson ! Tou$ro shows a %ood support at @0AA le#els
from which the stock price re#ersed and is mo#in% north wards. Also the stock is
$reakin% new resistances and hopes to %row at faster rate.

F&"/+,'"t+*4 5
0. Larsen ! Tou$ro Ltd :L!T; has announced that the (ompany has secured two
more .esi%n and 1uild contracts from .elhi Betro -ailway (orporation
:.B-(; for the construction of the under%round station at Saket :.elhi; and a
tunnel as part of its +hase II +ro,ect.
@. Larsen ! Tou$ro Ltd has announced that the (ompany has $a%%ed an order for
-s. 85A corers for the supply and installation of 1last 'urnace from Tata Steel
for its pro,ect in Galin%ana%ar& *rissa.
E. Larsen ! Tou$ro Ltd :L!T; %oin% to set up IT special economic >one with
Arun E2cello at Hallancheri& Tamilnadu.
C. The company currently has order $ook worth -s. C09AA corers.
C0
?. c. INDUSTY ANALYSIS TELECOM SECTOR
The telecommunication industry is %rowin% at a $reak neck speed with leadin% players
lappin% up mo$ile su$scri$ers $y millions month on month. The country<s telecom
market is the Cth lar%est in the world in terms of wireless su$scri$ers and 7th lar%est in
terms of total telecom su$scri$ers :SourceD 1harti Airtel presentation;. After %rowin% its
wireless :/SB and (.BA; su$scri$er $ase to o#er @AA m $y the end of .ecem$er @AA6&
the country is e2pected to take the num$er to 7AA m telecom su$scri$ers $y the end of
Barch @A0A. This %rowth is likely to $e aided $y the a#aila$ility of cheaper handsets&
focus of re%ulatory measures to take telephony to rural markets& lower tariffs and %eneral
$uoyancy in the economy.
BUDGET 2@@A5@B MEASURES RELATED TO TELECOM SECTOR
-oll out of national rural employment %uarantee scheme to all 789 districts in
India with a pro#ision of -s 09A $n.
Specified inputs and raw materials for manufacture of specified electronicsJ IT
hardware items ha#e $een e2empted from e2cise duty.
Additional duty of 0P to $e le#ied on imported mo$ile phones towards national
calamity contin%ency reser#e.
(ounter#ailin% duty on wireless data modem cards with e2empted $y way of
e2cise duty e2emption. These %oods are already e2empt from customs duty.
)owe#er& CP additional duty of customs will $e attracted.
Internet telecommunication ser#ice $rou%ht under the ser#ice ta2 net.
(ustoms duty on con#er%ence products to $e reduced from 0AP to 7P.
+arent company allowed to set=off the di#idend recei#ed from its su$sidiary
company a%ainst di#idend distri$uted $y the parent companyI pro#ided that the
di#idend recei#ed has suffered ..T and the parent company is not a su$sidiary of
another company.
C@
BUDGET IMPACT
-oll out of national rural employment %uarantee scheme to all 789 districts in
India to aid faster penetration of mo$iles.
E2emption from e2cise duty for specified inputs and raw materials for
manufacture of specified electronicsJ IT hardware to lower the network cost for
telecom ser#ice pro#iders.
Additional duty on imported mo$ile phones to make handsets e2pensi#e& thus
prohi$itin% a faster acceptance.
-eduction in customs duty on con#er%ence products to help esta$lish parity
$etween de#ices used in the informationJcommunication sector and the
entertainment sector.
+arent company allowed to set=off the di#idend recei#ed from its su$sidiary
company a%ainst di#idend distri$uted $y the parent companyI pro#ided that the
di#idend recei#ed has suffered ..T and the parent company is not a su$sidiary of
another company.
COMPANY IMPACT
"ider rollout of national rural employment %uarantee scheme to aid faster
penetration of mo$iles and conseuently faster %rowth of 1harti Airtel& -eliance
(ommunications and Hodafone in these areas.
Lower network euipment costs to $enefit mo$ile ser#ice players like 1harti
Airtel& Hodafone& Idea and -eliance (ommunications.
Additional duty on imported mo$ile phones to restrict #olume :su$scri$er; %rowth
for mo$ile ser#ices companies& thou%h not in a ma,or way.
CE
-eduction in customs duty on con#er%ence products to help companies like 1harti
Airtel and reliance (ommunications in lowerin% their costs for .T) e2pansion.
KEY POSITIVES
Co""'ct!"# I"/!+4 The telecom sector has $een one of the fastest %rowin% sectors
in the Indian economy in the last C years. This has $een witnessed due to stron%
competition that has $rou%ht down tariffs as well as simplification of policy
en#ironment that has promoted healthy competition amon% #arious players. .ue
to this reason& telecom density in the country has risen to nearly @AP at the end of
Fanuary @AA5& from E.7P in Fanuary @AA0.
ItC$ !"#!"# ,o%!*'4 The Indian mo$ile sector has $een %rowin% rapidly and has
emer%ed as the fastest %rowin% market in the whole world. (urrently of a si>e of
o#er @AA m su$scri$ers :/SB plus (.BA;& this sector is e2pected to reach a si>e
of nearly 7AA m su$scri$ers $y the year @A0A. The increasin% monthly addition to
the su$scri$er $ase :currently at around 6 to 5 m; is indicati#e of the same.
Bo+/%+"/ 2&$14 The %o#ernment is e2pected to increase its thrust on the use of
Internet. This will come a$out as +( penetration increases. "e e2pect to see some
positi#e measures $ein% initiated to increase $road$and usa%e in the country.
KEY NEGATIVES
S2'ct&, ;o'$4 The telecom sector continues to e2pand at a rapid pace addin%
co#era%e and increasin% teledensity as more and more people %et connected.
)owe#er& as su$scri$er $ase continues to swell and the need for wireless data
transfers o#er mo$ile %rows& the operators are likely to face increased shorta%e of
spectrum a#aila$ility :as they are facin% now;. This pro$lem is especially acute in
ur$an areas& which ha#e %ot hi%her teledensity.
H!#1*< t+0'/ $'cto4 The (*AI has indicated that the telecom sector& especially
the cellular ser#ices se%ment& continues to pay #ery hi%h duties and le#ies.
CC
(urrently& the sector is payin% duties and le#ies under #arious heads includin%
annual license fees& spectrum char%es and access deficit char%e. In addition to the
a$o#e& si%nificant le#ies are also imposed on the industry on account of sales ta2&
ser#ice ta2 and import duties on handsets and other telecom hardware.
B1+t! A!t'*
1harti AirtelD=Telecom %iant 1harti Airtel is the fla%ship company of 1harti Enterprises.
The 1harti /roup& has a di#erse $usiness portfolio and has created %lo$al $rands in the
telecommunication sector. 1harti has recently forayed into retail $usiness as 1harti -etail
+#t. Ltd. under a BoU with "al=Bart for the cash ! carry $usiness. It has successfully
launched an international #enture with EL -othschild /roup to e2port fresh a%ri products
e2clusi#ely to markets in Europe and USA and has launched 1harti A?A Life Insurance
(ompany Ltd under a ,oint #enture with A?A& world leader in financial protection and
wealth mana%ement. Airtel comes to you from 1harti Airtel Limited& India<s lar%est
inte%rated and the first pri#ate telecom ser#ices pro#ider with a footprint in all the @E
telecom circles. 1harti Airtel since its inception has $een at the forefront of technolo%y
and has steered the course of the telecom sector in the country with its world class
products and ser#ices. The $usinesses at 1harti Airtel ha#e $een structured into three
indi#idual strate%ic $usiness units :S1U<s; = Bo$ile Ser#ices& Airtel Telemedia Ser#ices
! Enterprise Ser#ices. The mo$ile $usiness pro#ides mo$ile ! fi2ed wireless ser#ices
usin% /SB technolo%y across @E telecom circles while the Airtel Telemedia Ser#ices
$usiness offers $road$and ! telephone ser#ices in 8C cities. The Enterprise ser#ices
pro#ide end=to=end telecom solutions to corporate customers and national ! international
lon% distance ser#ices to carriers. All these ser#ices are pro#ided under the Airtel $rand
C7
B&$!"'$$ /!(!$!o"45
Bo$ile Ser#icesD=
1harti Airtel offers /SB mo$ile ser#ices in all the @E=telecom circles of India and
is the lar%est mo$ile ser#ice pro#ider in the country& $ased on the num$er of
customers
Airtel Telemedia Ser#icesD=
The %roup offers hi%h speed $road$and internet with a
$est in class network. "ith Landline ser#ices in 8C cities we help you stay in touch
with your friends ! family and the world.
Enterprise Ser#ices:(orporates;D=
The %roup focuses on deli#erin%
telecommunications ser#ices as an inte%rated offerin% includin% mo$ile& $road$and
! telephone& national and international lon% distance and data connecti#ity ser#ices
to corporate& small and medium scale enterprises
Enterprise Ser#ices:(arrier Ser#ices;D=
The (ompany compliments its mo$ile and
$road$and ! telephone ser#ices with national and international lon% distance
ser#ices. It has o#er E7&A09 route kilometers of optic fi$re on its national lon%
distance network. 'or international connecti#ity to east& it has a su$marine ca$le
landin% station at. 'or international connecti#ity to the west& the (ompany is a
mem$er of the South East Asia=Biddle East="estern Europe K C :SEA=BE="E=C;
consortium alon% with 07 other %lo$al telecom operators.
C9
B+*+"c' S1''t
M+ C @A M+ C @D M+ C @? M+ C @=
SOURCES OF FUNDS
O;"'C$ F&"/
Euity Share (apital 0&586.80 0&587.8E 0&58E.55 0&57E.E6
Share Application Boney 76.9E EA.AA 0@.0E @.6@
+reference Share (apital A.AA A.AA A.AA A.AA
-eser#es ! Surplus 05&@5E.5@ 8&707.@0 7&CE6.C@ @&967.E5
Lo+" F&"/$
Secured Loans 7@.C@ @99.C7 @&59E.E6 E&878.55
Unsecured Loans 9&706.8@ 7&ACC.E9 0&8E@.8@ 0&AEC.C0
Total @9&5A8.6A 09&670.87 0@&0E8.6@ 8&7@7.69

USES OF FUNDS
F!0'/ A$$'t$
/ross 1lock @5&007.97 @9&7A8.8E 06&870.6C 0E&@CA.9E
Less D -e#aluation -eser#e @.0E @.0E @.0E @.0E
Less D Accumulated .epreciation 8&A57.AA 6&@AC.EA C&8CC.59 E&C67.9C
Net 1lock 08&A@5.7@ 08&EAE.70 0E&AAC.67 8&69@.59
(apital "ork=in=pro%ress @&670.A5 @&E67.5@ @&EC0.@7 88C.C9

I"('$t,'"t$ 0A&87@.57 6A7.5@ 608.6A 8E0.8A

Net (urrent Assets
(urrent Assets& Loans ! Ad#ances 5&CE8.E5 7&CA9.50 E&EE5.55 @&C59.E0
Less D (urrent Lia$ilities ! +ro#isions 0C&E9@.EE 00&AC@.96 6&@6@.5A C&6A5.0@
Total Net (urrent Assets =7&8@@.87 =7&9E7.59 =E&8EE.8@ =@&@@0.5A
Biscellaneous e2penses not written A.@A @.99 6.8C 75.E7
Total @9&5A8.6A 09&670.87 0@&0E8.6@ 8&7@7.66
Not' 4
1ook Halue of Unuoted In#estments 8&E68.9@ 75A.CE C69.7@ C9A.5E
Barket Halue of Quoted In#estments 0&76C.@8 0@7.57 @CE.88 C6@.60
(ontin%ent lia$ilities 6&0CA.78 6&907.AC C&6CA.EC E&A06.@9
Num$er of Euity shares outstandin% :in Lacs; 05&868.A6 05&878.EC 05&8E5.68 05&7EE.96
C6
K'< R+t!o$

M+ C
@A
M+ C
@D
M+ C
@?
M+ C
@=
PER SHARE RATIOS

Ad,usted E + S :-s.; EC.A5 @0.@A 0A.9A 9.@8
.i#idend +er Share A.AA A.AA A.AA A.AA

PROFITABILITY RATIOS

*peratin% Bar%in :P; C0.E6 CA.97 E7.59 E9.50
/ross +rofit Bar%in :P; @8.A5 @6.C6 @E.0C @C.@8
Net +rofit Bar%in :P; @E.88 @@.C9 06.5A 0C.5E

LEVERAGE RATIOS

Lon% Term .e$t J Euity A.EA A.CE A.90 A.85
Total .e$tJEuity A.E@ A.C9 A.97 0.0A
*wners fund as P of total Source 67.CE 95.@C 9A.C7 C6.77
'i2ed Assets Turno#er -atio 0.AE A.6C A.6@ A.6C

LI8UIDITY RATIOS

(urrent -atio A.75 A.C5 A.C7 A.7@
(urrent -atio :Inc. ST Loans; A.79 A.C6 A.CC A.C6
Quick -atio A.77 A.C6 A.CC A.C5
In#entory Turno#er -atio C7E.A9 E6E.E7 9EC.7@ @76.5A

PAYOUT RATIOS

.i#idend payout -atio :Net +rofit; A.AA A.AA A.AA A.AA
Earnin% -etention -atio 0AA.AA 0AA.AA 0AA.AA 0AA.AA
I"t'2't+t!o"$
.i#idend paid $y the company is >ero and the E+S is on constant increase.
(urrent ratio is less than standard @D0. There is increase in current lia$ilities.
C5
The company has reduced it<s de$ts o#er a period of time which is makin% it safe
to in#est.
B1+t! A!t'* (!$5E5(!$ ot1' 2*+<'$
M+ C @A
BHARTI AIRTEL IDEA C'**. RCOMM
-eported E+S :-s.; E@.8 E.89 0@.7E
.i#idend +er Share A A.AA A.67
Net +rofit Bar%in :P; @E.88 07.EE 06.C7
-eported -eturn *n Net "orth :P; EA.8C @8.C5 0A.C0
-eturn *n lon% Term 'unds :P; @5.7@ 05.8@ 00.50
Lon% Term .e$t J Euity A.E 0.7C A.C5
(urrent -atio A.75 A.78 0.97
.i#idend payout -atio :Net +rofit; A A.AA 6.AA
Earnin% -etention -atio 0AA 0AA.AA 80.E9
I"t'2't+t!o"$4
E+S is hi%hest for Airtel.
Net profit is hi%hest.
Earnin% retention ratio is 0AA& which indicate internal in#estments and e2pansions
and di#ersifications plans.

C8
P!c' )*&ct&+t!o"$ o) A!t'*45
7A
T'c1"!c+* +"+*<$!$45
The stock has corrected in ,uly and is now lookin% stron%. The %raph
has shown that the stock is makin% new hi%hs and is e2pected to %row further.
F&"/+,'"t+* A"+*<$!$45
0. The sales of the company has shown a %ood %rowth in last four uarters.
@. The total e2penditure is $ein% reducin% from last four uarters which shows the
initiati#es of cost cuttin% in the company.
E. Net profit as well as E+S of company is increasin% and well o#er the industry
standards.
C. (ompany is $iddin% for E/ ser#ices in India which will increase its re#enue to a
%reat e2tend.
7. (ompany has also si%ned a deal with Apple to $rin% i+hones in India.
9. 1harti Airtel partners with 07 %lo$al telecom ma,ors to $uild Europe India
/ateway :EI/;& a ca$le system from India to United Gin%dom which will %i#e
company a strate%ic ad#anta%e.
70
?. /. INDUSTRY ANALYSIS ENERGY SECTOR
Ener%y security occupies a hi%h priority on the %o#ernment a%enda. In order to accelerate
hydrocar$on disco#eries& increased emphasis has $een laid on E!+ throu%h se#eral
rounds of NEL+. They ha#e yielded $enefits in the form of hu%e %as disco#eries in the
G/ $asin and oil disco#eries in -a,asthan. If the on%oin% NEL+ HII is any indication& we
e2pect the %o#ernment to continue with its policies fa#orin% e2ploration acti#ities. The
midstream se%ment will $e a direct $eneficiary of increased #olumes. Thus& prospects of
the upstream and midstream oil and %as sector look $ri%ht. The downstream se%ment
howe#er& continues to suffer on account of %o#ernment re%ulations. Till a sustained
reduction in the crude oil prices is o$ser#ed& the prospects of the oil marketin% companies
lar%ely hin%e on adhoc %o#ernment policies
BUDGET 2@@A5@B MEASURES RELATED TO ENERGY SECTOR
'orei%n in#estment of USR E.7 to 5 $n e2pected for e2ploration of new $locks
under NEL+ HII.
(ustoms duty e2emption withdrawn on naphtha used in the manufacture of
polymers. It will $e ta2ed S 7 P. Naphtha imported for the production of
fertilisers will remain e2empt.
Ad #alorem e2cise duty on un$randed petrol and un$randed diesel replaced $y an
eui#alent specific duty of -s.0.E7 per litre. There will $e only a specific duty of
-s 0C.E7 per litre on un$randed petrol and -s C.9A per litre on un$randed diesel.
(entral Sales Ta2 reduced from EP to @P from April 0& @AA5.
.i#idend ta2 paid $y parent company allowed to $e set off a%ainst the same paid
$y its su$sidiary
7@
BUDGET IMPACT
+olymer industry will $e ne%ati#ely impacted& as costlier Naphtha will push its
cost structure upwards.
+olymer in turn is used in a host of downstream sectors such as plastics and
paints& which will face mar%in pressures.
*il downstream se%ment will continue to suffer under reco#eries from petroleum
products as the $ud%et does not address either product prices or the e2cise duties.
COMPANY IMPACT
The polymer se%ment of -IL and /AIL will $e ad#ersely impacted& as the raw
material costs will %o up. /i#en that the petrochemical se%ments had a $ad
EQ'YA6& this de#elopment comes at a $ad time.
No respite for +SU oil marketin% companies=I*(& )+(L& 1+(L.
The announcement on di#idend ta2 will $enefit I*(& )+(L and 1+(L as they
ha#e refineries as su$sidiaries.
/AIL will $enefit from the reduction in (ST as natural %as falls under inter state
trade.
KEY POSITIVES
E02*o+to< $&cc'$$4 India has seen a spate of successful oil and %as disco#eries
o#er the past C=7 years. This could $e attri$uted to fa#oura$le %o#ernment policies
for the E!+ se%ment. "ith the success of NEL+& e2ploration acrea%e is increasin%
at a fast clip. )owe#er& a #ast ma,ority of the e2ploration acrea%e remains
e2plored or poorly e2plored& which promises %ood potential for disco#eries in the
future. "hile India is likely to remain dependent on imports for oilI
7E
commerciali>ation of natural %as reser#es will reduce the im$alance in the
demand supply scenario for the same.
Ro%&$t /',+"/ #o;t14 .emand for petroleum products is dependent on the
le#el of economic acti#ity in an economy. "ith the Indian economy e2pected to
re%ister decent %rowth %oin% forward& the demand for petroleum products is likely
to $e on the hi%her side. Boreo#er& the per capita consumption of oil products in
India is one of the lowest in the world& lea#in% a lot of scope for demand %rowth.
KEY NEGATIVES
R'#&*+to< 1!"/+"c'$4 A+B :administered pricin% mechanism; was dismantled
in @AA@& with a #iew to mo#e towards market=determined prices of petroleum
products. )owe#er& the su$seuent steep rise in the crude oil prices had forced
%o#ernment to re%ulate the prices once a%ain. Thus& profita$ility of downstream
companies continues to reel under se#ere pressure.
S&%$!/< %&/'"4 Upstream players :*N/(& /AIL and *IL; continue to share
EEP of the %ross under=reco#eries on the sale of sensiti#e petroleum products.
This has constrained the %rowth in their profita$ility to a lar%e de%ree. Boreo#er&
$oth the upstream as well as downstream se%ments continue to suffer from lack of
#isi$ility due to the ad=hoc su$sidy sharin% mechanism.
Lo;' t+!)) 2ot'ct!o"4 India has a surplus refinin% capacity& which is likely to
further increase o#er the ne2t few years due to #arious $rownfield and %reenfield
pro,ects undertaken $oth $y pu$lic sector as well as pri#ate sector enterprises.
7C
ONGC
P!o"''!"# E))ot$45
*N/( is the only fullyKinte%rated petroleum company in India& operatin% alon% the
entire hydrocar$on #alue chainD
)olds lar%est share of hydrocar$on acrea%es in India.
(ontri$utes o#er 65 per cent of Indian<s oil and %as production.
A$out one tenth of Indian refinin% capacity.
(reated a record of sorts $y turnin% Ban%alore -efinery and +etrochemicals
Limited around from $ein% a stretcher case for referral to 1I'- to the 1SE Top
EA& within a year.
Interests in LN/ and product transportation $usiness.
St+t'#!c V!$!o"45 2@@152@1@
To focus on core $usiness of E!+& *N/( has set strate%ic o$,ecti#es ofD
.ou$lin% reser#es :i.e. accretin% 9 $illion tonnes of *T*E/;.
Impro#in% a#era%e reco#ery from @5 per cent to CA per cent.
Tie=up @A BBT+A of euity )ydrocar$on from a$road.
The focus of mana%ement will $e to monetise the assets as well as to assetise the money.
77
G*o%+* R+"k!"#45
*N/( is the only (ompany from India in the 'ortune Ba%a>ine<s list of the "orld<s
Bost Admired (ompanies @AA6. *N/( is 8th position in the Industry of Binin%& crude
oil production.
U *N/( ranks @E8th position in the presti%ious 'or$es /lo$al @AAA and
Numero Uno rankin% amon%st Indian (ompanies.
U *N/( ranks E98th position in 'ortune /lo$al 7AA list for the year @AA9
$ased on -e#enues.
U *N/( retains Numero Uno position from India in terms of +rofits with
o#erall %lo$al rankin% of 0@0st.
U *N/( ranks @0st amon% the top 7A pu$licly traded (ompanies in *il ! /as
Industry& $ased on the year=end :@AA6; market (apitali>ation $y +'( Ener%y.
79
B+*+"c' S1''t
SOURCES OF FUNDS
O;"'C$ F&"/
Euity Share (apital @&0E5.58 @&0E5.58 0&C@7.8E 0&C@7.8E
Share Application Boney A.AA A.AA A.AA A.AA
+reference Share (apital A.AA A.AA A.AA A.AA
-eser#es ! Surplus 95&C65.70 78&657.AC 7@&7EE.6C C7&C08.C8
Lo+" F&"/$
Secured Loans A.AA A.AA A.AA A.AA
Unsecured Loans 0@&C5@.60 07&0A8.A6 0@&6@@.90 8&809.@@
Total 5E&0AA.00 66&AEE.AA 99&95@.@5 79&690.9C

USES OF FUNDS
F!0'/ A$$'t$
/ross 1lock 76&C9E.65 7@&AE5.A6 C6&55@.E7 C@&85E.57
Less D -e#aluation -eser#e A.AA A.AA A.AA A.AA
Less D Accumulated .epreciation C9&8C7.66 CE&085.87 CA&ACA.07 E6&0C6.E@
Net 1lock 0A&705.A0 5&5E8.00 6&5C@.@A 7&5E9.7E
(apital "ork=in=pro%ress C0&07C.9E E6&68C.09 EE&E6E.8@ @5&5E5.E7

I"('$t,'"t$ 7&588.7A 7&6A@.A7 C&555.76 C&AE9.96

Net (urrent Assets
(urrent Assets& Loans ! Ad#ances C8&5EE.0C 5E&65C.65 96&5C8.C@ 77&ECA.A8
Less D (urrent Lia$ilities ! +ro#isions @C&868.A6 78&9A0.05 C6&9E5.06 E6&5@0.09
Total Net (urrent Assets @C&57C.A6 @C&05E.9A @A&@00.@7 06&705.8E
Biscellaneous e2penses not written 96E.8A 70C.A9 E99.EC 7E0.09
Total 5E&0AA.00 66&AE@.85 99&95@.@5 79&690.9C
Not' 4
1ook Halue of Unuoted In#estments A.AA @&8C7.76 @&0E@.0A 0&@5A.08
Barket Halue of Quoted In#estments A.AA 8&868.50 0E&E97.7@ 00&569.@A
(ontin%ent lia$ilities @9&AA9.6E EC&076.06 E@&8A6.60 @9&78E.C7
Num$er of Euity shares outstandin% :in Lacs; @0&E55.8@ @0&E55.6E 0C&@78.EC 0C&@78.EC
76
K'< R+t!o$

M+ C
@A
M+ C
@D
M+ C
@?
M+ C
@=
PER SHARE RATIOS

Ad,usted E + S :-s.; 69.@5 65.98 86.5A 8A.97
.i#idend +er Share E@.AA E0.AA C7.AA CA.AA

PROFITABILITY RATIOS

*peratin% Bar%in :P; 7A.E0 C8.C6 79.07 7A.89
/ross +rofit Bar%in :P; EE.80 CE.98 C5.0@ C6.AA
Net +rofit Bar%in :P; @7.67 @7.68 @5.8E @6.@9

LEVERAGE RATIOS

Lon% Term .e$t J Euity A.06 A.@E A.@E A.06
Total .e$tJEuity A.06 A.@C A.@E A.@0
*wners fund as P of total Source 5C.86 5A.E5 5A.8@ 5@.7E
'i2ed Assets Turno#er -atio 0.AC 0.0A 0.A0 0.A5

LI8UIDITY RATIOS

(urrent -atio 0.88 0.C0 0.C@ 0.C9
(urrent -atio :Inc. ST Loans; 0.88 0.CA 0.C@ 0.CA
Quick -atio 0.59 0.@5 0.@5 0.EE
In#entory Turno#er -atio 06.@5 07A.9C 0@0.A9 @C5.9A

PAYOUT RATIOS

.i#idend payout -atio :Net +rofit; C6.8C C5.57 7A.6A C8.80
Earnin% -etention -atio 7A.8@ 7C.78 C6.7C C8.55
I"t'2't+t!o"$
Net profit is near a$out constant for last couple of years.
.i#idend payout ratio is also constant.
(urrent ratio is close to standard @D0.
75
ONGC (!$5+5+(!$ RIL
M+ C @A
ONGC RIL
-eported E+S :-s.; 65.A8 0EE.59
.i#idend +er Share E@ 0E.AA
Net +rofit Bar%in :P; @7.67 0C.C7
-eported -eturn *n Net "orth :P; @E.56 @C.99
-eturn *n lon% Term 'unds :P; EA.CE 06.05
Lon% Term .e$t J Euity A.06 A.E7
(urrent -atio 0.88 0.EC
.i#idend payout -atio :Net +rofit; C6.8C 8.5A
Earnin% -etention -atio 7A.8@ 59.A0
I"t'2't+t!o"$4
.i#idend +er Share is more than -IL.
(urrent ratio is as per standard reuirement.
-eturn on Net "orth and -eturn on lon% Term 'unds is more than -IL.
78
P!c' )*&ct&+t!o"$ o) ONGC45
9A

90
T'c1"!c+* A"+*<$!$45
The company is showin% %ood support at around -s5AAJshare
which it didn<t crosso#er twice. This %i#es us impression that now it will ha#e a $ull run
and which is shown $y the %raph. Also the new tar%et of the company is $een %i#en to -s
0EAA in ne2t two months.
F&"/+,'"t+* A"+*<$!$45
0. (ompany has shown a su$stantial %rowth in net sales as well as decrease in the
e2penditure which is a #ery rare.
@. The E+S of the company has increased to a %reat e2tend as compared to the last
three uarters which is a #ery %ood si%n for the company.
E. (ompany declared di#idend of -s 0CJshare which is 0CAP and hi%hest %i#en $y a
%o#ernment $ased company.
C. (ompany posted a net profit of -s. 079.C@8 $illion& the )i%hest $y any Indian
company.
7. (ompany contri$uted o#er -s. @59 $illion to the e2cheuer.
9@
9. (ompany is %o#ernment $ased and hence has to adhere to the %o#ernment
policies and cannot take it<s own ma,or decision.
6. *il fluctuation in international markets affects the company a lot $ecause the oil
prices in India are not directly linked to international prices.
5. /o#ernment %i#es oil $onds as su$sidies to these company& which are ha#in%
maturity lot further& hence affectin% liuidity of the company.
9E

D. RESEARCH STUDY OF INVESTORS.
1. 31'' /o <o& !"('$t <o& ,o"'<I
In the -eliance money& I ha#e asked @AA people where you like in#ests your money.
I"('$t,'"t t<2'$ No. o) '$2o"/'"t$ P'c'"t+#'
Stock market CA @A
1ank '.. 9A EA
-eal estate 5A CA
Butual funds @A 0A
Total @AA 0AA
T+%*'. 1
G+21 ?
I"t'2't+t!o"4
'rom the a$o#e ta$le ! pie chart& it represent that people in#est only @A P of money in
Stock market ! 0AP in Butual 'unds. CAP of people %enerally interested in -eal estate
and 1ank '.. EAP. 1ecause the chances of risk and losses are minimum than Stock
Barket ! Butual 'unds. E#en the returns are more in Stock Barket ! Butual 'unds& $ut
due safety people prefer -eal estate and 1ank '...
2. Ho; ;!** <o& /'c!/' + co,2+"< )o !"('$t,'"tI
9C
S'*'ct!o" o) co,2+"< )o
!"('$t,'"t
No. o) R'$2o"/'"t$ P'c'"t+#'
*wn .ecision EA 07
1roker Ad#ice 5C C@
Speculation C9 @E
-esearch -eports CA @A
@AA 0AA
T+%*' 2
G+21 D
I"t'2't+t!o"4 'rom the a$o#e ta$le ! pie chart it represents that C@P of people take
Ad#ice of 1roker while in#estment in stocks& and @EP of people in#est on the $asis of
speculation& and @AP on $asis of -esearch -eports $y Technical analyst and 07P in#est
on there own decision. 1ut many e2perts feel that if people in#est money in stock market
$y -esearch -eport then chances of profit is hi%h and losses are minimum $ecause
-esearch -eport %i#e %ood su%%estion and already they ha#e calculated risk in stocks so
it will $e $eneficial while in#estment. If in#estment on the $asis of speculation the
chances of losses are hi%h and profits minimum. If you do not ha#e& any knowled%e of
stock market so should ask to your 1roker who will ad#ice you in $etter way $ecause
these people ha#e %ood knowled%e than us.
6. 31+t k!"/ o) t+/!"# <o& /oI
T<2'$ o) T+/!"# No. o) R'$2o"/'"t P'c'"t+#'
Intra day 59 CE
Short term CC @@
97
Bedium Tradin% @@ 00
Lon% term Tradin% C5 @C
@AA 0AA
T+%*' 6
G+21 A
I"t'2't+t!o"4 'rom the a$o#e /raph ! +ie chart it represent that CEP people do
intraday in which the profit and risk $oth are the hi%h $ut many research su%%est that
it is always $etter to in#estment of money in lon% term than short term or medium
term or intraday :i.e. speculations;. If we in#est money on lon%=term $asis then
returns are %ood ! the risk is minimum. Therefore& it is always %ood in#est money
for lon%=term $asis
9. 31+t +' t1' )+cto$ /o <o& co"$!/' ;1!*' $'*'ct!o" o) co,2+"<I
F+cto co"$!/' )o
$'*'ct!o" o) co,2+"<
No. o) R'$2o"/'"t$ P'c'"t+#'
'undamental Analysis 59 CE
Technical Analysis CC @@
1oth @A 0A
99
Speculation 7A @7
@AA 0AA
T+%*' 9
G+21 B
I"t'2't+t!o"D 'rom the a$o#e /raph ! +ie chart it represent that CEP of people
take the help of fundamental and @@P of people take the help of technical analysis $y
which the risk can $e calculated and profit can $e ma2imi>e. )owe#er& e#en that @7P
of people in#est on the $asis of speculation& which is risky. 0AP are people in#est
money $y $oth :i.e. fundamentally and technical; $y which prediction can $e %ood. If
people in#est money on the $asis of analysis then the risk can $e minimi>e and profit
can $e ma2imi>e.

=. 31'' ;!** <o& ,o$t 2')' to !"('$t <o& ,o"'<I
Mo$t 2')' co,2+"!'$ No. o) R'$2o"/'"t$ P'c'"t+#'
Lar%e cap 0A7 7@.7
Bid cap CA @A
Small cap 77 @6.7
@AA 0AA
96
T+%*' =
G+21 1@
I"t'2't+t!o"D 'rom the a$o#e /raph ! ta$le& we can say that 7AP percent of people
like to in#est money in 1lue (hips companies $ecause the #olumes of tradin% and %ood
results are more. Therefore& the profit is more. Bid cap and small& %i#e minimum profit
than $lue chips or lar%e cap.
?. 31!c1 Co,2+"!'$ $1+'$ ;!** <o& %&<I
L!k' to !"('$t !" $'cto$ No. o) R'$2o"/'"t P'c'"t+#'
Auto 00A 77P
1ankin% 9A EAP
En%ineerin% EA 07P
@AA 0AA
95
T+%*' ?
G+21 11
I"t'2't+t!o"D 'rom the a$o#e /raph ! chart& we can say that 77P of people prefer
Auto Sector for in#estment $ecause these companies are stron% $y fundamentally and it
ha#e lar%e market than others. After that& EAP of people prefer $ankin% sector it has lar%e
market capitali>ation and after that& 07P of people like to in#est in En%ineerin%
companies.

A. CONCLUSION
'undamental analysis holds that no in#estment decision should $e without
processin% and analy>in% all rele#ant information. It stren%th lies in the fact the
information analy>ed is real as opposed to hunches or assumptions. *n the other hand&
while fundamental analysis deals with tan%i$le fact& it does not tend to i%nore the fact that
human $ein%s do not always act rationally. Barket prices do sometimes de#iate from
fundamentals. +rices rise or fall due to insider tradin%& speculation& rumor& and a host of
No. of Respondent
55%
30%
15%
Auto
Banking
Engineering
98
other factors. This is true to an e2tent& $ut stren%th of fundamental analysis is that an
in#estment decision is arri#ed at after analy>in% information and makin% lo%ical
assumptions and deductions. 'urthermore& fundamental analysis ensures that one does not
recklessly $uy or sell shares= especially $uy.
'undamental analysis can $e #alua$le& $ut it should $e approached with caution.
If you are readin% research written $y a sell=side analyst& it is important to $e familiar
with the analyst $ehind the report. "e all ha#e personal $iases& and e#ery analyst has
some sort of $ias. There is nothin% wron% with this& and the research can still $e of %reat
#alue. *ne should also $e aware of all the latest e#ents and de#elopments which directly
or indirectly affect the prices of the stock in the stock market.
B. LIMITATIONS OF STUDY
To understand the o#erall workin% of share market& the period of 9A days is not
enou%h.
Boreo#er& #ery few in#estor and a%ents ha#e a detail knowled%e of the study.
A study is conducted in Nasik only& which restrict the scope of the market study.
6A
The data pro#ided $y the in#estors and the a%ents can<t $e held true as 0AAP
correct.
The study was conducted to understand with respect to fundamental and technical
analysis& which is a part of the euity share market.
1@. B!%*!o#+21<
Book$4
In#estment Analysis ! +ortfolio Bana%ement= +rasanna (handra.
In#estment mana%ement= A.H. A#adhani
N';$ P+2'$4
Economic Times
Times of India.
60
M+#+>!"'$4
(apital Barket
.alal Street
3'%$!t'$4
www.kotaksecurities.com
www.wikipedia.com
www.moneycontrol.com
www.euitymaster.com
www.$seindia.com
www.incredi$lecharts.com

6@