Beruflich Dokumente
Kultur Dokumente
Submitted by:
ABHISEKH GHOSH
Under the guidance of:
SABEENA DESHPANDE
Declaration
I hereby declare that the project entitled Equity Research on Four Wheeler submitted for
the PGDM course in Finance under the guidance of Prof. SABEENA DESHPANDE, is my
original work and the project has not formed the basis for the award of any degree, fellowship
or any other similar title.
ABHISEKH GHOSH
B2F14
1 | Page
ACKNOWLEDGEMENT
I would like to thanks BIRLA SUN LIFE, giving me this excellent opportunity to learn the
realities of the equity market and research. The two months of training provided me with
good exposure and provided me with a holistic learning experience.
I would like to thank my guide, Prof. SABEENA DESHPANDE for his valuable guidance.
He was ever willing to be of help and guide and supported me throughout the tenure of the
project.
I feel privileged to have come in contact and worked alongside such wonderful people.
Finally I would also like to express my gratitude towards all the member ISBS Pune & all my
friends who helped me directly or indirectly in successful completion of this report.
The project EQUITY RESEARCH ON FOUR WHEELER SECTOR is based on the EIC
model. The Economic analysis includes a countrys economic analysis. The Industry analysis
includes sector analysis based on different aspects such as porter 5 forces, government
initiatives for the particular sector. The company Analysis focus on companys management
team, its vision, financial analysis.
The project work includes valuation of the share prices of the Four wheeler companies like
Tata motors And Maruti Suzuki. .The valuation is based on the EIC model where in the
prices of the shares are estimated according to the expected growth in the sector and adjusting
the shortcomings of the sector. The estimation of Price earning is according to the historical
analysis approach wherein the past PEs have been tracked down and used to value and
estimate the companys future prices of share.
The main idea behind conducting equity research is to find out the overall working and trend
of Entertainment sector and to find out promising scripts and Entertainment sector companies
to invest .It involves predicting the future prices.
On the basis of financial analysis and valuation the findings of the study is that Tata motors
and Maruti Suzuki both seems to be a good option for Investment .Both are in a positive
trend with almost all macro factors and political favours in their favour. On the financial
analysis part of is good in terms of liquidity, profitability and also in leverage
TABLE OF CONTENTS
Sr.No
Contents
Page nos.
Introduction
6-7
Industry overvies
8-9
3 | Page
Company profile
10-11
Literature review
12-13
Objective
14
Research Methodology
15-18
About co.
19-29
30-37
38-39
10
Limitations
40
11
Recommendation
41
12
Annexture
42-59
INTRODUCTION
Introduction
What is Project?
The project to analyse the equity data of Tata motors and Maruti
Suzuki .
Definition and purpose of the project
The purpose of the project:
1) To analyse the primary and secondary data
2) To study the awareness level of customers
3) To explore new market for the company.
4 | Page
INDUSTRY OVERVIEW
The automobiles sector is compartmentalized in four different sectors which are as follows:
Passenger Vehicles which include passenger cars, utility vehicles and multipurpose vehicles
6 | Page
Austria based motorcycle manufacturer KTM, the established makers of Harley Davidson from
the US and Mahindra & Mahindra have set up manufacturing bases in India. Furthermore,
according to internal projections by Mercedes Benz Cars, India is set to become Mercedes
Benzs fastest-growing market worldwide ahead of China, the US and Europe.
The world standing for the Indian automobile sector, as per the Confederation of the Indian
industry is as follows:
Except for the two-wheelers, all other segments in the industry have been weakening. There is a
negative impact on the automakers and dealers who offered high discounts in order to push
sales. To match the decline in demand, automakers have resorted to production cuts and layoffs, due to which capacity utilization for most automakers remains at a dismal level.
7 | Page
Despite the comprehensive market being under extreme burden, the luxury car market has
observed a robust double-digit hike during the year 2013-2014, as a result of rewarding new
launches at compelling lower price points. Further, with the measured increases in the price of
diesel, the overall market continues to shift towards petrol-fuelled cars. This has lead to the
growth in sales of the 'Mini' segment of the PV market by of 5.5%
Fuel economy and demand for greater fuel efficiency is a major factor that
affects consumer purchase decision that will bring leading companies across twowheeler and four-wheeler segment to focus on delivering performance-oriented
products.
Sturdy legal and banking infrastructure
Increased affordability, heightened demand in the small car segment and the
surging income of the Indian population
India is the third largest investor base in the world
The Government technology modernization fund is concentrating on
establishing India as an auto-manufacturing hub.
Availability of inexpensive skilled workers
Industry is perusing to elevate sales by knocking on doors of women, youth,
rural and luxury segments
Market segmentation and product innovation
8 | Page
COMPANY PROFILE
Birla Sun Life Insurance Company Limited (BSLI) was established in 2000 as a joint venture
between the Aditya Birla Group, a well-known and trusted name globally amongst Indian
conglomerates and Sun Life Financial Inc., leading international financial services
organization from Canada.
With an experience of over 9 years, BSLI has significantly contributed to the growth and
development of life insurance industry in India. BSLI currently ranks amongst top 5 private
life insurance companies in the country. Known for its innovation and industry benchmarks,
BSLI has several firsts to its credit. BSLI was the first Indian Insurance Company to
introduce Free Look Period and the same was made mandatory by IRDA for all other life
insurance companies. In addition to this BSLI also pioneered the launch of Unit Linked Life
Insurance plans amongst the private players in India. To establish creditability and
transparency, BSLI enjoys the prestige to be the originator of practice to disclose portfolio on
monthly basis. These development benefits have helped BSLI be closer to its policy holders
expectations which gets further accentuated by the compete bouquet of insurance products
(viz. pure term plan, life stage products, health plan and retirement plans) that the company
offers.
In addition to this, the extensive reach through its network of 600 branches and 1 75,000
empanelled advisors. The impressive combination of domain expertise, product range, reach
and ears on ground, h elped BSLI cover more than 2 million lives since it commenced
operations and establish a customer base spread across more than 1500 towns and cities in
India. To ensure that customers have an impeccable experience, BSLI ensured lowest
outstanding claims ratio of 0.00% for FY 2008-09. BSLI also has the best Turnaround Time
according to LOMA on all claim Parameters. Such services are well supported by sound
financials that BSLI has. The AUM of BSLI stood at Rs. 8165 crores as on February 28,
2009, while as on March 31, 2009, the company has a robust capital base of Rs. 2000 crores.
9 | Page
Protection Plans
Savings Plans
Child Plans
Investment Plans
Retirement Plans
Group Plans
Rural Plan
Literature Review
Insurance is a must because of the uncertain future adversities of life. Accidents, illnesses,
disability etc are facts of life that can be extremely devastating. Other than the
hospitalization, medication bills these may run up its the aftermath of the incident, the
physical well being of the individual that has to be taken into consideration. Will the
individual be in a position to earn as before?
10 | P a g e
A pertinent question, But what if he is not? Disability can be taken care of by insurance. Your
family will not have to go through the grind due to your present inability.
You think twice before taking the plunge into buying insurance. Is buying insurance a
necessity now? Spending an 'extra' amount as premium at regular intervals where you do not
see immediate benefits does not seem a necessity at the moment.
May be later well you could be wrong. Buying Insurance cannot be compared with any other
form of investment. Insurance gives you a life long benefit and the returns will definitely
come but only when you need it the most i.e. at the right time.
Besides buying insurance early in life is one of the wise decisions you could take. Because
the premium you would be paying would be comparatively lower.
MARKETING STRATEGY
Birla Sun Life Insurance will continue with its strategy of having a targeted approach in the
Indian market, said Donald Stewart, chairman and chief executive officer, Sun Life Financial
Services. Birla Sun Life is a joint venture between Aditya Birla group and Sun Life
Financial of Canada.
In an interview to the The Economic Times , Mr Stewart said that the fact that Birla Sun Life
had the highest average sum assured among all life insurers in India was a reflection of the
company's targeted approach. Although scale was important to be viable in India, Birla Sun
Life would attempt to achieve scale only after it has built a strong base through targeted sales.
In the new markets, companies have to be very careful in new risks since it takes several
years to see whether the persistency in business holds on," said Mr Stewart referring to the
high rate of policy lapsation witnessed in some other Asian countries.
Unlike some other players who have tried to be a player in the mass market from day one
Birla Sun Life has been targeting largely high net worth individuals. Sun Life would also be
looking at opportunities in the pension market in India through a variety of ventures. Mr
Stewart said that for pensions the company would look at resources from the Birla Sun Life's
insurance and asset management ventures in India and if regulations required would float a
separate arm for pensions.
Today, Sun Life Financial Services is a completely different entity from the time when it
signed an understanding with the Aditya Birla group four years ago. After its group in '00,
which gave it the courage to acquire existing companies, Sun Life has been on an acquisition
spree.
The company has concluded the acquisition of another Canadian insurer Clarica in May, and
gone on to acquire Keyport Life Insurance and Independent Financial Marketing Group a
distribution company in US. The company, which was one-third the size of CIBC, is now
much bigger than the North American financial institution and is almost as big as Toronto
Dominion Bank financial group.
Following these acquisitions Sun Life Financial is the seventh largest North American insurer
in terms of market capitalisation. According to Mr Stewart, Sun Life will continue to look at
acquisitions in US. "Our future focus is to continue to widen our base in US as the Canadian
market is significantly smaller than the US. As far as Asia is concerned much of the focus is
on organic growth," said Mr Stewart. Birla Sun Life would look at achieving a dominant
11 | P a g e
OBJECTIVES
Objectives are:
12 | P a g e
. Further, for better future growth, will suggest rational and scientific
approach for companies to assess and analyze their intrinsic value,
practical risk, exposure and to visualize competitive and
comparative efficiency and their profitability position which can be
considered as a judicious recommendation for improvements of
their performance.
RESEARCH METHODOLOGY
Primary Source:
Questionnaire
Personal Interview
Secondary Source:
Internet
This
chapter
deals
with
the
methodology:
1. Research Aim
2. Research Objectives
3. Research Methodology
14 | P a g e
fowling
issues
related
to
research
DETERMINE INFORMATION
NEEDED
FOLLOW
PREPRATION
OF UP
REPORT
RECOMMENDATION
The data that has been collected for this report is primary.
6.3 Collection of primary data
Primary data is collected keeping in mind with the specific data
requirement of research study. They are essentially field data by using
an appropriate survey technique. When a field study covers the entire
15 | P a g e
6.3.2 Observation
This method implies the collection of information by way of own
observation without interviewing respondents. The observation method is
the most commonly used method especially in studies relating to
behavioral sciences. In a way we all observe things around us, but this
sort of observation is not scientific observation. Observations become a
scientific tool and the method of data collection for the research.
6.4 Sampling plan
Convenience Sampling
Convenience sampling, as name implies is based on the convenience of
the researcher who is to select a sample. Convenience sampling is one in
which the researcher select the most accessible population members.
Respondents in the sample are included in it merely on account of their
being available on the spot where the survey is in progress. These
types of samples are used primarily for reasons of convenience. It is used
for exploratory research and speedy situations.
6.4.1 Sampling method Non probability convenience sampling.
16 | P a g e
classified
i.e.
grouped
qualitatively
and
quantitatively
classifying
is
represented
in
the
form
of
tables
i.e.
17 | P a g e
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive
Company) is an Indian multinationalautomotive manufacturing company headquartered
in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include
passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It
is the world's 17th-largest motor vehicle manufacturing company, fourth-largest truck
manufacturer, and second-largest bus manufacturer by volume.[3]
Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, Thailand, and the United Kingdom. It has research and development
centres in Pune, Jamshedpur, Lucknow, and Dharwad, India,chintalapudi and in South Korea,
Spain, and the United Kingdom. Tata Motors' principal subsidiaries purchased the British
premium car maker Jaguar Land Rover (the maker of Jaguar, Land Rover, and Range Rover
cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has
a bus-manufacturing joint venture withMarcopolo S.A. (Tata Marcopolo), a constructionequipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery),
and a joint venture with Fiat which manufactures automotive components and Fiat and Tata
branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,
becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile.[4] In 1998, Tata launched the first fully indigenous Indian passenger
car, the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors
acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in
2004 and purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange.
Tata Motors is ranked 287th in the 2014 Fortune Global 500 ranking of the world's biggest
corporations.
18 | P a g e
Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly Daewoo
Commercial Vehicle Company) is a commercial vehicle manufacturer headquartered in
Gunsan, Jeollabuk-do, South Korea, and a wholly owned subsidiary of Tata Motors. It is the
second-largest heavy commercial vehicle manufacturer in South Korea and was acquired by
Tata Motors in 2004. The principal reasons behind the acquisition were to reduce Tata's
dependence on the Indian commercial vehicle market (which was responsible for around 94%
19 | P a g e
Tata Marcopolo
Tata Marcopolo
A Tata Marcopolo bus in use inChandigarh, India
Tata Marcopolo is a bus-manufacturing joint venture
between Tata Motors (51%) and the Brazil-based Marcopolo S.A. (49%). The joint venture
manufactures and assembles fully built buses and coaches targeted at developing mass rapid
transportation systems. It uses technology and expertise in chassis and aggregates from Tata
Motors, and know-how in processes and systems for bodybuilding and bus body design from
Marcopolo. Tata Marcopolo has launched a low-floor city bus which is widely used by
Chandigarh, Kolkata, Chennai, Coimbatore, Delhi, Hyderabad, Mumbai, Lucknow, Pune,
21 | P a g e
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SWOT ANALYSIS
Strengths
The internationalisation strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into the new
market. The benefit is that Tata has been able to exchange expertise. For example after the
Daewoo acquisition the Indian company leaned work discipline and how to get the final
product right first time.
The company has a strategy in place for the next stage of its expansion. Not only is it
focusing upon new products and acquisitions, but it also has a programme of intensive
management development in place in order to establish its leaders for tomorrow.
The company has had a successful alliance with Italian mass producer Fiat since
2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and
knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and
the companies have an agreement to build a pick-up targeted at Central and South America.
Weaknesses
The companys passenger car products are based upon 3rd and 4th
generation platforms, which put Tata Motors Limited at a disadvantage
with competing car manufacturers.
Despite buying the Jaguar and Land Rover brands (see opportunities
below); Tata has not got a foothold in the luxury car segment in its
domestic, Indian market. Is the brand associated with commercial vehicles
and low-cost passenger cars to the extent that it has isolated itself from
lucrative segments in a more aspiring India?
23 | P a g e
Opportunities
In the summer of 2008 Tata Motors announced that it had successfully purchased the
Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the Worlds
luxury car brand have been added to its portfolio of brands, and will undoubtedly off the
company the chance to market vehicles in the luxury segments.
Tata Motors Limited acquired Daewoo Motors Commercial vehicle business in 2004
for around USD $16 million.
Nano is the cheapest car in the World retailing at little more than a motorbike.
Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the
answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models
will cost up to 85 times more than a standard Nano!
Threats
Other competing car manufacturers have been in the passenger car business for 40, 50
or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean
production.
Sustainability and environmentalism could mean extra costs for this low-cost
producer. This could impact its underpinning competitive advantage. Obviously, as Tata
globalises and buys into other brands this problem could be alleviated.
Since the company has focused upon the commercial and small vehicle segments, it
has left itself open to competition from overseas companies for the emerging Indian luxury
segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-based
24 | P a g e
plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury
cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian
market has become a target for other global competitors including Maruti Udyog, General
Motors, Ford and others.
Omni
Gypsy
Zen Estilo
Wagon R
Versa
A Star
Ritz
SX4
26 | P a g e
Dzire
Grand Vitara
Ertiga
Celerio
SWOT ANALYSIS
Maruti Suzuki is the market leader in India and has an amazing brand equity. Maruti is
known for the service it provides and is synonymous with Maruti 800 the longest running
small car in India. Here is a SWOT of maruti suzuki, its strengths, weaknesses, opportunities
and threats.
Strengths
Major strength of MUL is having largest network of dealers and after sales service
centers in the country.
Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units from
7,65,533 units in the previous fiscal. It recently attained the 10million domestic sales mark.
MUL is the first automobile company to start second hand vehicle sales through its
True-value entity.
Weaknesses
27 | P a g e
Low interior quality inside the cars when compared to quality players
likeHyundai and other new foreign players like Volkswagen,Nissan etc.
The management and the companys labor unions are not in good terms. The recent
strikes of the employees have slowed down production and in turn affecting sales.
Opportunities
MUL has launched its LPG version of Wagon R and it was a good move
simultaneously
MUL can start R&D on electric cars for a much better substitute of the fuel.
Export capacity of the company is giving new hopes in American and UK markets
Threats
MUL recently faced a decline in market share from its 50.09% to 48.09 % in the
previous year(2011)
Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many
small players like Volkswagen- polo. Ford has shown a considerable increase in market share
due to its Figo.
Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats
to its respective competitors segment
28 | P a g e
29 | P a g e
TATA MOTORS
5-Yr Chart
High
Rs
605
3,790
16.0%
Low
Rs
403
1,866
21.6%
Rs
816.5
1,681.7
48.5%
Rs
43.5
126.0
34.5%
Rs
85.1
209.3
40.6%
Rs
25.00
0.0%
0.9
0.0%
Rs
174.8
805.0
21.7%
3,218.68
302.08
1,065.5%
0.6
1.7
36.7%
11.6
22.4
51.7%
5.9
13.5
43.9%
2.9
3.5
82.1%
19.8
0.0%
Rs m
1,622,376
854,282
189.9%
No. of employees
`000
73.5
NA
Total wages/salary
Rs m
255,490
16,710
1,529.0%
Avg. sales/employee
Rs Th
35,761.9
NM
Avg. wages/employee
Rs Th
3,476.8
NM
Rs Th
1,903.3
NM
Net Sales
Rs m
2,627,963
508,014
517.3%
Other income
Rs m
8,987
8,650
103.9%
Total revenues
Rs m
2,636,951
516,664
510.4%
Gross profit
Rs m
392,387
68,441
573.3%
Dividend payout
Avg Mkt Cap
INCOME DATA
30 | P a g e
Rs m
133,886
25,153
532.3%
Interest
Rs m
48,615
2,178
2,232.1%
Rs m
218,873
49,760
439.9%
Minority Interest
Rs m
-868
-12
7,231.7%
Rs m
134
180
74.6%
Rs m
-1,847
Tax
Rs m
76,429
11,854
644.8%
Rs m
139,863
38,074
367.3%
14.9
13.5
110.8%
34.9
23.8
146.6%
5.3
7.5
71.0%
Current assets
Rs m
1,017,584
86,964
1,170.1%
Current liabilities
Rs m
1,002,720
89,824
1,116.3%
0.6
-0.6
-100.5%
1.0
1.0
104.8%
Inventory Days
Days
41
19
211.6%
Debtors Days
Days
17
212.5%
Rs m
1,124,226
143,796
781.8%
Share capital
Rs m
6,438
1,510
426.3%
"Free" reserves
Rs m
611,696
232,489
263.1%
Net worth
Rs m
562,619
243,184
231.4%
Rs m
560,713
2,783
20,147.8%
Total assets
Rs m
2,386,580
344,786
692.2%
Interest coverage
5.5
23.8
23.1%
1.0
8,708.6%
1.1
1.5
74.7%
Return on assets
7.9
11.7
67.6%
Return on equity
24.9
15.7
158.8%
Return on capital
23.6
21.2
111.3%
Exports to sales
1.5
9.0
16.8%
Imports to sales
0.7
8.4
8.5%
Exports (fob)
Rs m
39,802
45,857
86.8%
Imports (cif)
Rs m
18,915
42,919
44.1%
Fx inflow
Rs m
55,848
46,329
120.5%
31 | P a g e
Rs m
34,002
77,959
43.6%
Net fx
Rs m
21,846
-31,630
-69.1%
From Operations
Rs m
351,829
65,391
538.0%
From Investments
Rs m
-345,189
-45,810
753.5%
Rs m
52,014
-20,035
-259.6%
Net Cashflow
Rs m
45,004
-454
-9,912.7%
Indian Promoters
34.3
0.0
Foreign collaborators
0.0
56.2
10.1
14.0
72.4%
FIIs
27.0
22.0
122.9%
ADR/GDR
21.3
0.0
Free float
7.3
7.8
93.6%
356,574
100,212
355.8%
6.5
0.0
CASH FLOW
Share Holding
Shareholders
Pledged promoter(s) holding
Current Valuations
TATA MOTORS MARUTI SUZUKI
32 | P a g e
TATA MOTORS/
MARUTI SUZUKI
9.5
31.5
P/BV
Dividend Yield
33 | P a g e
2.0
5.4
0.0
0.6
34 | P a g e
35 | P a g e
36 | P a g e
INTERPRETATION
INTERPRETATION
INTERPRETATION
INTERPRETATION
INTERPRETATION
The
net cash flow of Tata Motors has increased from 25534 in 2011 to 45004
The
Netearning
profit
of
Tata
Motors
has
decreased
fromfrom
7.6 in1924.5
2011 toin
2015
peritper
share
of
Tata
Motors
has decreased
from
inThe
permargin
share
ofgenerating
Tata
Motors
has
decreased
it means
that
is
revenue
over decreased
the years
.
sales
The
cash
flow
share
of more
Tata
Motors
has
5.3
in
2015
which
indicates
lowthat
margin
of
safety
, higher
risk
that
146.1
in
2011
to 43.5
in 2015
it
means
that
its
profitability
2011
to
816.5
in
2015
it
means
the
company
is
les
active
The
net
cash
flow
of
Maruti
Suzuki
has
decreased
from
23693
in
2011
to from
219.5
in
2011
to
85.1
in
2015
which
is
due
to
a
decline
in
sales
will
erase
and
result
in
net
loss.
has
decreased
over
the
years.
over
the
years
.
454 indecrease
2015 which
means
that
the revenueof
generation
is less from 2011 to
inper
sales
orof
collection
less
revenue.
Netearning
profit
of
Suzuki
has
increased
fromfrom
6.4 in1281.1
2011
The
share
Maruti
Suzuki
has
increased
from
2015
The
sales
permargin
share
of Maruti
Maruti
Suzuki
has
increased
The
cash
flow
per
share
of
Maruti
Suzuki
has
increased
to
7.5
in
2015
which
indicates
higher
margin
of
safety
82.5 in
to in
126
.0 in
it that
means
profitability
has
in 2011
to 2011
1681.7
2015
it 2015
means
theits
company
is more
increased
uver
the
years
from
118.2
2011 to 209.3 in 2015 which may be due
acticve
over
the in
years.
Net Cash Flow
=
Cash
received
Cash
payment of more revenue.
to increase
or collection
Net profit
margin = in
netsales
profit/net
sales*100
EPS
= NPAT
/Revenue
nos. of C.F
equity
Sales
per
share
= Total
/ average
shares
o/s o/s
Cash
flow Pre
p/s
=div
( opening
pre div)/
shares
Maharashtra Scooters and Maruti Suzuki India have showed the excellent
performance in total income. The industry mean of total income is
Rs.44343.59 crores during the study period
e. Total Expenses of selected automobile companies TVS Motors (Rs.
17159.10 crores), SML Isuzu (Rs. 12087.11 crores), Maharashtra Scooters
(Rs. 7530.18 crores) have huge total expenses when compared with
industry average. Mahindra & Mahindra, Tata Motors, Hindustan Motors
have less growth in total Please purchase PDF Split-Merge on
www.verypdf.com to remove this watermark.
f . Operating Profit of selected automobile companies Tata Motors, SML
Isuzu, Maruti Suzuki India have outperformed when compared with the
growth of the industry since their average of operating profit is much
higher than its industry average. Most of the companies have growth in
their operating profit except Force Motors, Hindustan Motors, Mahindra &
Mahindra, Tata Motors and Majestic auto because these companies have
negative growth
h. Net profit of selected automobile companies TVS Motors, SML Isuzu, Maruti Suzuki India
have performed well since their growth is above the industry growth. Honda Siel Cars,
Hyundai Motors and Majestic auto have negative growth when compared with all other
companies. Force Motors, TVS Motors and Maruti Suzuki India showed the highest growth
in net profit during the period under study. Performance of various Ratio A. Profitability
Ratios i. Material cost composition to sales ratio indicates that the MSL, FML, HMIL have
spent more amount for materials in total cost of production. The growth in material cost is
also high in these companies. The mean of this ratio indicates that SML has higher material
cost to sales ratio when compared to other companies. Material cost of most of the companies
comes around 70% of its sales. Please purchase PDF Split-Merge on www.verypdf.com to
remove this watermark. 262 ii. Labour cost composition to sales ratio was lowest for VST,
HMC, M&M and HMIL. This shows that these companies have efficient labour force. The
mean of this ratio reveals that MSL (163.68%) has highest labour cost during the study
period. iii. ALL, AAL, HML have highest growth in selling and distribution cost composition
to sales ratio when compared to other companies. SIL, HMC, AAL showed the lowest selling
and distribution cost composition to sales ratio. These companies have good practice for sales
and distribution of their products. iv. The mean of expenses as composition of total sales was
highest of. 248.32 % for MSL compared to other companies.
39 | P a g e
LIMITATIONS
This study has been conducted purely to understand Equity analysis for investors.
Detailed study of the topic was not possible due to limited size of the project.
There was a constraint with regard to time allocation for the research study i.e. for a
period of 45 days.
Suggestions and conclusions are based on the limited data of five years
40 | P a g e
Maruti suzuki can offer better product design and style to influence
customer buying preference in favor .
Tata motors and maruti Suzuki can focus on brand building activity
to avoid price war.
Thou Tata motors has better network of dealer in the area but they
should focus on dealer efficiency & dealer performance.
Maruti Suzuki should focus on Internet media to reach more & more
customers.
41 | P a g e
offered
in
the
market
at
low
42 | P a g e
Annexture
(Rs in Cr)
Mar' 11
Mar' 15
Mar' 14
Mar' 13
Mar' 12
643.78
643.78
638.07
634.75
637.71
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
19,351.40
SOURCES OF FUNDS
Owners' Fund
Equity Share Capital
4,803.26
4,450.01
5,877.72
6,915.77
7,708.52
Unsecured Loans
15,277.71 10,065.52
8,390.97
4,095.86
6,929.67
Total
34,627.30
21,002.78
USES OF FUNDS
Fixed Assets
Gross Block
Less: Revaluation Reserve
22.87
23.31
23.75
24.19
12,190.56 10,890.25
9,734.99
8,656.94
7,585.71
Net Block
13,392.88
Capital Work-in-progress
22.87
4,036.67
3,799.03
22,624.21
11,131.98
14,350.14
19,538.96
-3,867.63
-6,361.88
-6,739.40
-8,912.10
-5,188.82
0.00
0.00
0.00
0.00
0.00
34,627.30
22,276.13
Investments
6,040.79
6,355.07
4,752.80
43 | P a g e
275.36
253.07
204.82
299.54
379.18
19,084.08
6,346.14
(Rs in Cr)
Mar' 15
Mar' 14
Mar' 13
Mar' 12
Mar' 11
36,294.74
34,288.11
44,765.72
54,306.56
47,088.44
27,489.01
26,412.31
33,620.80
40,457.95
34,692.83
833.35
820.83
910.42
785.14
612.51
3,091.46
2,877.69
2,837.00
2,691.45
2,294.02
0.00
0.00
0.00
0.00
0.00
6,118.40
5,088.43
5,689.19
6,194.47
4,823.94
0.00
0.00
0.00
0.00
0.00
Cost Of Sales
37,532.22
35,199.26
43,057.41
50,129.01
42,423.30
Operating Profit
-1,237.48
-911.15
1,708.31
4,177.55
4,665.14
1,881.41
3,833.03
2,088.20
574.08
422.97
643.93
2,921.88
3,796.51
4,751.63
5,088.11
Financial Expenses
1,611.68
1,337.52
1,387.76
1,218.62
1,383.70
Depreciation
2,603.22
2,070.30
1,817.62
1,606.74
1,360.77
0.00
0.00
0.00
0.00
0.00
-3,570.97
-485.94
591.13
1,926.27
2,343.64
764.23
-1,360.32
-126.88
98.80
384.70
-4,335.20
874.38
718.01
1,827.47
1,958.94
-403.75
-539.86
-416.20
-585.24
-147.12
0.00
0.00
0.00
0.00
0.00
-4,738.95
334.52
301.81
1,242.23
1,811.82
Income :
Operating Income
Expenses
Material Consumed
Manufacturing Expenses
Personnel Expenses
Selling Expenses
Adminstrative Expenses
Expenses Capitalised
44 | P a g e
-3,761.36
1,677.31
1,965.72
3,321.15
3,745.95
Equity Dividend
0.00
555.16
566.17
1,097.68
1,081.43
Preference Dividend
0.00
0.00
0.00
0.00
0.00
Dividend Tax
0.00
93.40
79.03
183.02
192.80
-3,761.36
1,028.75
1,320.52
2,040.45
2,471.72
Retained Earnings
(Rs in Cr)
Mar' 15
Mar' 14
Mar' 13
Mar' 12
Mar' 11
-4,738.95
334.52
301.81
1,242.23
1,811.82
-2,562.67
2,463.46
2,258.44
3,653.59
1,505.56
601.74
2,552.91
991.50
144.72
-2,521.88
2,631.53
-5,033.81
-4,045.69
-4,235.59
1,648.42
663.27
-6.89
-714.07
-432.50
635.87
198.68
205.57
919.64
1,352.14
716.27
861.95
198.68
205.57
919.64
1,352.14
To
Year
Year
2014
2015
45 | P a g e
Class
Of
Share
Equity
Share
Authorized
Issued
Capital
Capital
(Crores)
(Crores)
900.00
643.88
Paid Up
Shares (Nos)
3,218,680,067
Paid Up
Paid Up
Face
Capital
Value
(Crores)
2.00
643.74
2013
2014
2012
2013
2011
2012
2010
2011
2009
2010
2008
2009
2007
2008
2006
2007
2005
2006
2004
2005
2003
2004
2002
2003
2001
2002
2000
2001
1999
2000
1998
1999
1996
1998
1995
1996
46 | P a g e
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
900.00
643.88
3,218,680,067
2.00
643.74
900.00
638.02
3,190,115,771
2.00
638.02
900.00
634.71
3,173,546,570
2.00
634.71
900.00
634.61
634,613,990
10.00
634.61
900.00
570.56
570,557,544
10.00
570.56
900.00
514.01
514,008,314
10.00
514.01
450.00
385.50
385,503,954
10.00
385.50
450.00
385.37
385,373,885
10.00
385.37
410.00
382.83
382,834,131
10.00
382.83
400.00
361.75
361,751,751
10.00
361.75
400.00
352.96
352,958,130
10.00
352.96
350.00
319.89
319,784,387
10.00
319.78
350.00
319.89
319,782,395
10.00
319.78
350.00
255.92
255,856,343
10.00
255.86
300.00
255.92
255,856,343
10.00
255.86
300.00
255.92
255,856,832
10.00
255.86
300.00
255.92
255,920,932
10.00
255.92
300.00
241.89
241,884,646
10.00
241.88
Share
1994
1995
1993
1994
1992
1993
1992
1993
1991
1992
1991
1992
1990
1991
1989
1990
1987
1989
1983
1984
1982
1983
1981
1982
1978
1979
1977
1978
1975
1977
1971
1974
1967
1971
47 | P a g e
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
200.00
137.06
137,062,019
10.00
137.06
200.00
128.84
128,844,214
10.00
128.84
145.50
139.61
114,453,700
10.00
114.45
145.50
139.61
14,372,540
7.50
10.78
145.50
117.47
106,437,808
10.00
106.44
145.50
117.47
22,059,800
5.00
11.03
145.50
103.67
103,673,600
10.00
103.67
145.50
103.67
103,673,600
10.00
103.67
145.50
103.67
10,366,501
100.00
103.67
55.50
52.87
5,286,732
100.00
52.87
55.50
40.92
4,092,197
100.00
40.92
55.50
40.92
4,092,197
100.00
40.92
3.55
2.92
2,922,998
10.00
2.92
25.50
18.90
1,889,856
100.00
18.90
17.50
15.75
1,574,880
100.00
15.75
17.50
15.11
1,510,915
100.00
15.11
15.05
14.35
1,434,928
100.00
14.35
1966
1967
1965
1966
1963
1965
1962
1963
1959
1962
1955
1957
1950
1955
1948
1950
1945
1948
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
Equity
Share
13.00
12.30
1,229,630
100.00
12.30
13.00
12.00
1,199,582
100.00
12.00
13.00
12.00
999,935
100.00
10.00
13.00
10.00
799,993
100.00
8.00
8.00
8.00
799,538
100.00
8.00
5.00
5.00
500,000
100.00
5.00
4.00
3.00
300,000
100.00
3.00
4.00
2.00
200,000
100.00
2.00
4.00
2.00
20,000
1,000.00
2.00
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Networth
Secured Loans
48 | P a g e
Mar '14
Mar '13
Mar '12
Mar '11
12 mths
12 mths
12 mths
12 mths
12 mths
151.00
151.00
0.00
0.00
23,553.20
23,704.20
0.00
151.00
151.00
0.00
0.00
20,827.00
20,978.00
0.00
151.00
151.00
0.00
0.00
18,427.90
18,578.90
0.00
144.50
144.50
0.00
0.00
15,042.90
15,187.40
0.00
144.50
144.50
0.00
0.00
13,723.00
13,867.50
0.00
180.20
180.20
23,884.40
Mar '15
1,685.10
1,685.10
22,663.10
Mar '14
1,389.20
1,389.20
19,968.10
Mar '13
1,078.30
1,078.30
16,265.70
Mar '12
170.20
170.20
14,037.70
Mar '11
12 mths
12 mths
12 mths
12 mths
12 mths
26,076.90
0.00
13,817.60
12,259.30
1,882.80
12,814.00
22,435.00
0.00
11,644.60
10,790.40
2,621.40
10,117.90
19,633.90
0.00
9,834.70
9,799.20
1,940.90
7,078.30
14,678.30
0.00
7,157.60
7,520.70
611.40
6,147.40
11,718.60
0.00
6,189.20
5,529.40
862.50
5,106.80
Inventories
2,615.00
1,705.90
1,840.70
1,796.50
1,415.00
Sundry Debtors
1,069.80
1,413.70
1,469.90
937.60
824.50
18.30
629.70
775.00
2,436.10
2,508.50
3,703.10
3,749.30
4,085.60
5,170.20
4,748.00
2,891.80
3,256.70
3,830.20
2,852.50
2,178.40
0.00
0.00
0.00
0.00
0.00
6,594.90
7,006.00
7,915.80
8,022.70
6,926.40
0.00
0.00
0.00
0.00
0.00
Current Liabilities
8,013.60
6,996.90
5,892.00
5,338.00
3,861.60
Provisions
1,653.00
875.70
874.10
698.50
525.80
9,666.60
7,872.60
6,766.10
6,036.50
4,387.40
-3,071.70
-866.60
1,149.70
1,986.20
2,539.00
0.00
0.00
0.00
0.00
0.00
Application Of Funds
Gross Block
Less: Revaluation Reserves
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Fixed Deposits
Total CA, Loans & Advances
Deferred Credit
Miscellaneous Expenses
49 | P a g e
Total Assets
Contingent Liabilities
23,884.40
22,663.10
19,968.10
16,265.70
14,037.70
9,228.60
7,210.20
8,193.30
6,108.00
6,384.80
784.70
694.45
615.03
525.68
479.99
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Init. Contribution Settler
Preference Share Application Money
Employee Stock Opiton
Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Minority Interest
Policy Holders Funds
Group Share in Joint Venture
Total Liabilities
Mar '14
Mar '13
Mar '12
Mar '11
12 mths
12 mths
12 mths
12 mths
12 mths
151.00
151.00
151.00
144.50
144.50
151.00
151.00
151.00
144.50
144.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
24,167.40 21,345.40 18,876.80 15,530.00 14,164.30
24,318.40 21,496.40 19,027.80 15,674.50 14,308.80
0.00
0.00
0.00
0.00
0.00
330.80 1,865.30 1,568.80 1,262.20
315.00
330.80 1,865.30 1,568.80 1,262.20
315.00
13.40
12.20
10.60
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
24,662.60 23,373.90 20,607.20 16,936.70 14,623.80
Mar '15
Mar '14
Mar '13
Mar '12
Mar '11
12 mths
Application Of Funds
Gross Block
Less: Revaluation Reserves
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
50 | P a g e
26,515.30
0.00
14,025.80
12,489.50
1,890.10
13,297.70
2,674.40
12 mths
12 mths
12 mths
12 mths
5,322.10
711.61
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses
51 | P a g e
5,502.20
629.89
3,333.90
542.54
2,861.80
495.27
Mar '15
Mar '14
Mar '13
Mar '12
Mar '11
12 mths
12 mths
12 mths
12 mths
12 mths
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
12 mths
12 mths
12 mths
12 mths
12 mths
6,712.90
7,544.50
206.00
7,338.50
2,470.30
0.00
4,868.20
0.00
4,868.20
1,157.00
3,711.20
8,000.50
0.00
755.20
153.80
5,095.90
5,918.80
175.90
5,742.90
2,084.40
0.00
3,658.50
0.00
3,658.50
875.50
2,783.00
7,091.20
0.00
362.50
61.60
4,229.60
5,042.00
189.80
4,852.20
1,861.20
0.00
2,991.00
0.00
2,991.00
598.90
2,392.10
6,612.90
0.00
241.70
41.10
2,513.00
3,339.80
55.20
3,284.60
1,138.40
0.00
2,146.20
0.00
2,146.20
511.00
1,635.20
4,874.70
0.00
216.70
35.10
3,638.50
4,147.30
25.00
4,122.30
1,013.50
0.00
3,108.80
0.00
3,108.80
820.20
2,288.60
4,545.80
0.00
216.70
35.10
3,020.80
122.85
500.00
784.70
3,020.80
92.13
240.00
694.45
3,020.80
79.19
160.00
615.03
2,889.10
56.60
150.00
525.68
2,889.10
79.21
150.00
479.99
------------------- in Rs. Cr. ------------------Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
52 | P a g e
2991.0
0
4301.1
0
3491.0
0
12
mths
4868.2
0
6410.6
0
4499.9
0
1962.1
0
3658.5
0
4903.5
0
4892.9
0
2146.2 3108.8
0
0
2229.4 2819.4
0
0
2918.3 343.00
0
-65.90 -966.30
616.50
752.10
-51.40
-55.30 -156.20
-72.40
2410.3
0
69.70
125.00
281.20
18.30
69.70
125.00
2508.5
98.20
0
2436.1 2508.5
0
0
508,022
445,235
48,682
36,585
Tax expense
11,570
8,755
37,112
27,830
173,849
153,043
(792)
210,169
180,873
Appropriations:
General reserve
3,711
2,783
Proposed dividend
7,552
3,625
53 | P a g e
1,538
197,368
616
173,849
FINANCIAL HIGHLIGHTS
The total revenue (net of excise) was Rs. 508,022 million as againstRs. 445,235 million in
the previous year showing an increase of 14 per cent. Sale of vehicles in the domestic market
was 1,170,702 units ascompared to 1,053,689 units in the previous year showing an increase
of 11 per cent. Total number of vehicles exported was 121,713 units ascompared to 101,352
units in the previous year showing an increase of 20 percent.
Profit before tax (PBT) was Rs. 48,682 million against Rs. 36,585 million showing an
increase of 33 per cent and profit after tax (PAT) stood at Rs. 37,112 million against Rs.
27,830 million in the previous year showing an increase of 33 per cent. Price earning ratio
(based on last quoted price on NSE) as on 31st March 2014 and 31st March 2015 was
21.40 and 30.10 respectively.
The Government of India came out with an ''offer for sale'' at a price of Rs. 125/- per share in
2003. The market capitalisation as on 31st March 2014 and 31st March 2015 was Rs. 595,400
million and Rs. 1,117,394 million respectively. This is based on market price of the
Company''sshares (BSE closing) of Rs. 1,971 and Rs. 3,699 as at 31st March 2014 and 31st
March 2015 respectively. The share price of the Company increased by 2859 percent as on
31st March 2015 vis-a-vis the price of
allotted shares at the time of said offer for sale.
.
54 | P a g e
Fiscal 2014
Gross revenue
39,524.34
37,758.00
36,294.74
34,288.11
Total expenditure
37,094.75
34,754.86
(800.01)
(466.75)
Other income
1,881.41
3,833.03
FINANCIAL RESULTS
1,081.40
3,366.28
Finance cost
1,611.68
1,353.18
Cash profit
(530.28)
2,013.10
3,040.69
2,499.04
(3,570.97)
(485.94)
403.75
539.86
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(3,974.72)
764.23
(4,738.95)
(1,025.80)
(1,360.32)
334.52
(4,738.95)
334.52
(4,738.95)
334.52
APPROPRIATIONS
Profit / (loss) for the year
Balance brought forward from
previous year
Amount available for appropriations
977.59
1,342.79
(3,761.36)
1,677.31
33.45
Other Reserves
Dividend (including dividend
distribution tax)
(93.40)
(3,667.96)
666.27
977.59
Fiscal 2014
FINANCIAL RESULTS
Gross revenue
266,345.25
236,626.43
262,796.33
232,833.66
Total expenditure
220,682.51
195,415.09
42,113.82
37,418.57
Other income
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898.74
828.59
43,012.56
38,247.16
4,861.49
4,749.44
Cash profit
38,151.07
33,497.72
16,263.80
13,643.37
21,887.27
19,854.35
184.71
985.38
21,702.56
18,868.97
7,642.91
14,059.65
14,104.18
(73.36)
(113.16)
13,986.29
4,764.79
13,991.02
APPROPRIATIONS
Profit / (loss) for the year
13,986.29
13,991.02
40,530.48
27,305.87
54,516.77
41,296.89
21.00
54.45
Other Reserves
39.52
21.88
(30.92)
57 | P a g e
54,487.17
690.08
40,530.48
BIBLIOGRAPHY
WEBSITE1- http://www.moneycontrol.com/india/stockpricequote/media-entertainment/pvr/PVR
2- http://www.moneycontrol.com/financials/pvr/profit-loss/PVR#PVR
3-http://www.moneycontrol.com/india/stockpricequote/mediaentertainment/inoxleisure/INO01
4- http://www.moneycontrol.com/financials/inoxleisure/profit-loss/INO01#INO01
5- Money works for me
6- EquityMaster.com
7- Official Website Of Companies
8- Tradeeconomies.com
9- ibef.orf
10- ICICI direct
11- Refer to the Report
12- Interview of CEO
Questionnaire
58 | P a g e
2. What is your opinion about product design and style of Tata motors?
a. Excellent
b. Very Good
c. Good
d. Fair
e. Poor
3. What is your opinion about product design and style of Maruti
Suzuki ?
a. Excellent
b. Very Good
c. Good
d. Fair
e. Poor
4. Pricing of Tata motors isa. Affordable
b. Higher
5. Tata motors has best network dealer in Pimpri-Chinchwad regiona. Strongly Agree
b. Agree
c. Neither agrees nor disagree d. Disagree
e. Strongly disagree
6. Maruti Suzuki has best network dealer in Pimpri-Chinchwad regiona. Strongly Agree
b. Agree
c. Neither agrees nor disagree d. Disagree
e. Strongly disagree
From which media you get the information about Tata motors
a. Print Media
c. Internet
11.
?
b. Advertisement
d. Opinion leader
b. Broadcast Media
d. Outdoor Media
From which media you get the information about Maruti suzuli
a. Print Media
c. Internet
b. Broadcast Media
d. Outdoor Media
12.
Comparing all the benefits of Tata motoes, you would include
Tata in your choice set while making purchasing decisiona. Definitely
b. Probably
c. Not Sure
d. Probably Not
e. Definitely Not
13.
Comparing all the benefits of Maruti suzuki, you would include
Tata in your choice set while making purchasing decisiona. Definitely
b. Probably
c. Not Sure
d. Probably Not
e. Definitely Not
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