TRAINING REPORT

ON
Stock Performance Analysis Of
Infosys
Submitted to:
Satyug Darshan Institute of Engineering and Technology
By:
SANCHITA SHARMA
Roll No.
Batch 2016 -2019
In Partial Fulfillment of
Bachelor of Business Administration
(IIFSB)
MAHARSHI DAYANAND UNIVERSITY
ROHTAK (HARYANA)
(November, 2016)

Satyug Darshan Institute of Engineering and Technology

Bhupani Lalpur Road, Village Bhupani
Faridabad - 121002, NCR, Haryana, India
 DECLARATION

I, Sanchita Sharma hereby declare that this summer training report is

the record of authentic work carried out by me during the period from
---------- to -------and has not been submitted to any other University
or Institute for the award of any degree / diploma etc.

(Signature)
Sanchita Sharma

Date:
 BONAFIDE CERTIFICATE

This is to certify that Sanchita Sharma of Satyug Darshan Institute of

Engineering and Technology has successfully completed the project work
titled Stock Performance Analysis Of Infosys in partial fulfillment of
requirement for the completion of Bachelor in Business Administration (BBA
IIFSB) course as prescribed by the Maharshi Dayanand University, Rohtak,
(HARYANA).

This project report is the record of authentic work carried out by her during
the period from ------- to -------. She has worked under my guidance.
(Signature)
Mrs. Vineeta Aggrawal
Assistant Professor, BBA Department
Project Guide (Internal)
Date:
Counter signed by

(Signature)

Mr. Ravi Bakshi

Department Coordinator (BBA Department)
Date:
 ACKNOWLEDGEMENT

It is a matter of great pleasure for me in submitting the project report on

STOCK PERFORMANCE ANALYSIS OF INFOSYS for the fulfillment of the
requirement of my course.
I am thankful to the owe a deep gratitude to all those who helped me in
preparing this report .Words seem to be inadequate to express my sincere
thanks to Mrs. VINEETA AGGARWAL for the valuable guidance , constructive
criticism , untiring efforts and immense encouragement during the entire
course of the study due to which my efforts have been rewarded .
Also not to be forgotten are the lecturers of BBA IIFSB who contribute their
ideas and suggestions.
 TABLE OF CONTENT

S.NO PARTICULARS PAGE NO.

1 Introduction to the study

2 Company Profile

3 Literature review

3 Research Methodology
Objectives of the Study
Scope of the Study
Research Design
Method of Data Collection
Limitations of the Study

4 Data Analysis & Interpretation

5 Findings,Conclusion and Suggestions

6 Bibliography

7 Annexure
 Chapter 1
INTRODUCTION
 INTRODUCTION

An investor means people who invest savings. Investment is an activity which is different
from saving.
Saving means putting money aside, bit by bit. You usually save up to pay for something
specific, like a holiday, a deposit on a home, or to cover any emergencies that might crop up,
like a broken boiler. Saving usually means putting your money into cash products, such as a
savings account in a bank or building society. The fine habit makes India a "saving" country.
Overall, our Household savings rate is impressive amongst other countries in the world at
26%. But, this savings rate has been coming down with the rise in urban, upwardly mobile
middle class over last ten years whereas Investing is a process whereby one puts away
"surplus" money to generate more money(returns) for us in the future. Key word here is
surplus. Meaning after you have put away enough money for the things you really really
need(Must-do). For example, you might invest in stocks, property, or shares in a fund.
In investing, one key factor is rate of return. Obviously, this becomes an important factor as
this is sole reason of deploying money in this manner.

The methods used for stock analysis and make investment decisions fall into two very broad
categories: fundamental analysis and technical analysis. Fundamental analysis involves
analyzing the characteristics of a company in order to estimate its value. Technical analysis
takes a completely different approach; it doesn't care one bit about the "value" of a company
or a commodity.

Despite all the fancy and exotic tools it employs, technical analysis really just studies supply
and demand in a market in an attempt to determine what direction, or trend, will continue in
the future. In other words, technical analysis attempts to understand the emotions in the
market by studying the market itself, as opposed to its components.

What is Stock?
Stocks allow you to own a portion of a public corporation. Initially, they are sold by the
original owners of a company to gain additional funds to help the company grow. This is
called the Initial Public Offering. The owners sell control of the company to the stockholders.
After the IPO, the shares are resold on the stock market.

Stock prices are driven by expectations of corporate earnings, or profits.

If traders think the company's earnings are high, or will rise further, they bid up the price of
the stock. One way that stockholders make a return on their investment is when they buy a
stock low, and sell it high. Conversely, if the company does poorly, then the shares decrease
in value, and the stockholders lose part or sometimes even all of their investment when they
sell.
A second way that stockholders profit is if the company pays a dividend. These are usually
quarterly payments distributed to stockholders on a per share basis. The company's board of
directors pays dividends out of earnings. It is a way to reward stockholders, who are the
actual owners of the company, for their investment. It's especially important for companies
that are profitable, but may not be growing quickly.

Types of Stocks
Common and preferred are two very different types of stock. As we will see, companies issue
the two stocks for different reasons. The risk and potential reward to the investor can also be
very different.
Common stock represents ownership in a company. By owning part of the company, you
share in both the good times and the not-so-good times of the company. A benefit of being an
owner includes the receipt of any dividends paid by the company. Also, if the company
experiences growth of sales and profits, hypothetically, the dividend and stock price will
increase, increasing your investment performance.
In addition, most common stock is classified as 'voting stock,' which allows stockholders to
vote for (or against) the board of directors and various shareholder proposals. It is important
to note that common stock dividends are never guaranteed, and neither is share price
appreciation.
Common stock certificates have historically been issued, like the one for Gerber you're
looking at on screen now, but due to progressive technology, most shares are now
electronically issued.

Preferred stock typically is a debt instrument of a company. When purchasing preferred

stock, think as though you are loaning the company money. When loaning money to a friend,
you expect to be paid back with interest. Preferred stock works in a very similar fashion. It
may be issued at $25 per share and may trade on the stock market.
However, instead of sharing in the profits through hopefully increasing dividends and share
price growth, preferred stock owners (similar to bondholders) receive fixed dividend
payments. Some preferred stock may be convertible to common stock, but this depends on
the way the preferred stock was issued.
Preferred stock dividends typically must be paid prior to a corporation issuing dividends to
common stock holders. As a result, for this risk premium, common stockholders typically
experience greater returns than preferred stock holders. It is important to note that past
performance of common stocks and preferred stocks is not a guarantee of future performance.

Stock Market ?
It is a place where shares of pubic listed companies are traded. The primary market is where
companies float shares to the general public in an initial public offering (IPO) to raise capital.
 Once new securities have been sold in the primary market, they are traded in the secondary
marketwhere one investor buys shares from another investor at the prevailing market price
or at whatever price both the buyer and seller agree upon. The secondary market or the stock
exchanges are regulated by the regulatory authority. In India, the secondary and primary
markets are governed by the Security and Exchange Board of India (SEBI).

A stock exchange facilitates stock brokers to trade company stocks and other securities. A
stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place
of the stock buyers and sellers. India's premier stock exchanges are the Bombay Stock
Exchange and the National Stock Exchange.

As of January 31st, 2015, the fifteen biggest stock exchanges in the world by market
capitalization of listed securities are:

1. The New York Stock Exchange - Located in New York City; $19.223 trillion
in listed market capitalization.
2. NASDAQ - Short for the "National Association of Securities Dealers
Automated Quotation", this electronic stock exchange is located in New York City; $6.831
trillion in listed market capitalization.
3. London Stock Exchange - Located in London, England; $6.187 trillion in
listed market capitalization.
4. Tokyo Stock Exchange - Formally known as the Japan Exchange Group,
located in Tokyo, Japan; $4.485 trillion in listed market capitalization.
5. Shanghai Stock Exchange - Located in Shanghai, China; $3.986 trillion in
listed market capitalization.
6. Hong Kong Stock Exchange - Located in Hong Kong, Hong Kong; $3.325
trillion in listed market capitalization.
7. Euronext - Located throughout Europe (France, Portugal, The Netherlands,
and Belgium); $3.321 trillion in listed market capitalization.
8. Shenzhen Stock Exchange - Located in Shenzhen, China; $2.285 trillion in
listed market capitalization.
9. TMX Group - The Canadian stock exchange is located in Toronto, Canada;
$1.939 trillion in market capitalization.
10. Deutsche Brse - The German stock exchange, located in Frankfurt,
Germany; $1.762 trillion in market capitalization.
11. Bombay Stock Exchange - Located in Mumbai, India; $1.682 trillion in
market capitalization.
12. National Stock Exchange of India - Located in Mumbai, India; $1.642
trillion in market capitalization.
13. SIX Swiss Exchange - The Zurich stock exchange, located in Zurich,
Switzerland; $1.516 trillion in listed market capitalization.
14. Australian Securities Exchange - Located in Sydney, Australia; $1.516
trillion in listed market capitalization.
 15. Korea Exchange - The South Korean stock exchange located in Seoul, South
Korea; $1.251 trillion in listed market capitalization.

BSE ( Bombay Stock Exchange )

The Bombay Stock Exchange (BSE) is Asia's oldest stock exchange. Based in
Mumbai, India, BSE was established in 1875 as the Native Share & Stock Brokers'
Association. Prior to that brokers and traders would gather under banyan trees to
conduct transactions.

BSE functions as the first-level regulator in the securities market, providing

monitoring and surveillance mechanisms that are able to detect irregularities and
manipulations in stock prices. The Exchange also provides counter-party risk
management in all transactions that take place on its trading platform through its
clearing and settlement services. Shares of more than 5,000 companies are traded
on BSE. In addition to equity and debt, the Exchange allows for trading of mutual
fund units and derivatives.

Bombay Stock Exchange was recognized as an exchange under the Securities

Contracts (Regulation) Act in 1957. Its benchmark index, the Sensitive Index
(Sensex) was launched in 1986. In 1995, the BSE launched its fully automated
trading platform called BSE On-Line Trading system (BOLT) which fully replaced
the open outcry system.

In 2005, the Exchange changed from being simply an association of brokers to

became a corporate entity. The administrative structure of the Exchange is headed
by a board of directors, below which is a governing council and management that
presides over its day-to-day functioning.

NEED FOR BSE

BSE is one of the factors Indian Economy depends upon. BSE has played a major role in the
development of the country. Through BSE, Foreign Investors have invested in India. Due to
inward flow of foreign currency then, the Indian economies have started showing the upward
trend towards the development of the country.BSE provides employment for many people.
Trading in BSE is also a business for a few, their family income depends on it that is the
reason why when scandals occur in the stock market it not only affects the companies listed
but also affects many families. In the few extreme cases, it is observed that the bread winner
of a family tends to suicide due to the losses occurred. In most of major industrial cities all
over the world, where the businesses were evolving and required investment capital to grow
and thrive, stock exchanges acted as the interface between Suppliers and Consumers
of capital. One of the key advantages of the stock exchanges is that they are efficient medium
for raising resources and channelling savings from the general public by the way of issue of
Equity / Debt Capital by joint stock companies which are listed on stock exchanges. Not to
forget that the taxes and other statutory charges paid by BSE are substantial and make a
sizeable contribution to the Government exchequer (Financial resources; funds). For
example, transactions on the stock exchanges are subject to stamp duties, which are paid to
the State Government. The annual revenue from this source ranges from Rs 75
100croresWith the opening up of the financial markets to Foreign Investors a number of
foreign institutional investors and brokers have established a sizeable presence in Mumbai.

He sells security in the hope that he will be able to buy them back at lesser price. It is also
called short selling.
 Chapter 2
COMPANY PROFILE
Infosys
In increasing globalised world, significant complexity and uncertainty is getting attached to
the unprecedented economic crisis. The Indian economy has also been impacted by the
recessionary trends, with a slowdown in the GDP growth to 7%. The focus and exponential
growth in the market has partially offset this fall and insulated the country, resulting in net
overall momentum. With this momentum the economy is revived mostly and now growing at
7.2% rate. The IT industry in India has today become a growth engine for the economy,
contributing substantially to increase in the GDP, urban employment and export, to achieve
the vision of a young and resilient India. During the year, the sector maintained its double
digit growth rate and was a net hirer. This growth has been fueled by increasing
diversification in the geographic base and industry verticals, and adaptation in the service
offerings portfolio. While the effects of the economic crisis are expected to linger in the near
term future, the Indian IT industry has displayed resilience and tenacity in countering the
unpredictable conditions and reiterating the viability of Indias fundamental value
proposition. Consequently, India has retained its leadership position in the global sourcing
market.
While the current mood is that of cautious optimism, the industry is expected to witness
sustainable growth over a two-year horizon, going past its USD 60 billion export target in
FY2011. While the industry has significant headroom for growth, competition is increasing,
with a number of countries creating enabling business environments aimed at replicating
Indias success in the IT industry.

Introduction

Infosys Technologies Limited (BSE: 500209, NASDAQ: INFY) is a multinational

information technology services company headquartered in Bangalore, India. It is one of

India's largest IT companies with 104,850 professionals (including subsidiaries) as of Mar 31,

2009.It has offices in 22 countries and development centers in India, China, Australia, UK,

Canada and Japan

History

Infosys was founded on July 2, 1981 in Pune by N. R. Narayana Murthy and six others:

Nandan Nilekani, N. S. Raghavan, Kris Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok

Arora, with Raghavan officially being the first employee of the company. Murthy started the

company by borrowing INR 10,000 from his wife Sudha Murthy. The company was
incorporated as "Infosys Consultants Pvt Ltd.", with Raghavan's house in Model Colony,

north-central Pune as the registered office.

In 1982, Infosys opened an office in Bangalore which soon became its headquarters.

Infosys went public in 1993. Interestingly, Infosys IPO was undersubscribed but it was

"bailed out" by US investment banker Morgan Stanley which picked up 13% of equity at the

offer price of Rs. 95 per share. The share price surged to Rs. 8,100 by 1999 making it the

costliest share on the market at the time. At that time, Infosys was among the 20 biggest

companies by market capitalization on the Nasdaq well ahead of Adobe Systems, Novell and

Lycos.

According to Forbes magazine, since listing on the Bombay Stock Exchange till the year

2000, Infosys' sales and earnings compounded at more than 70% a year. In the year 2000,

President of the United States Bill Clinton complimented India on its achievements in high

technology areas citing the example of Infosys.

In 2001, it was rated Best Employer in India by Business Today. Infosys won the Global

MAKE (Most Admired Knowledge Enterprises) award, for the years 2003, 2004 and 2005,

being the only Indian company to win this award and is inducted into the Global Hall of

Fame for the same.

Infosys was rated best employer to work for in 2000, 2001, and 2002 by Hewitt Associates.

In 2007, Infosys received over 1.3 million applications and hired less than 3% of applicants.

BusinessWeek reported that Infosys, along with Wipro and Tata accounted for nearly 80% of

the [H-1B] visa petitions approved in 2007 for the top 10 participants in the program.
In April 2009, Forbes rated Infosys among the 5 best performing companies in the software

and services sector in the world.In 2009, Infosys was considered one of the BusinessWeek's

50 Most Innovative Companies.

From December 2008 till April 2009, Infosys has fired over 2500 employees on account of

bad performance. The company has been hit hard by lower revenue from a crisis hit European

and North American market. On Aril 15, 2009 Infosys reported its first ever sequential fall in

its revenue in a decade during the March 2009 quarter.

Infosys serves various industries through its Industrial Business Units (IBU), such as:

Banking & Capital Markets (BCM)

Communications, Media and Entertainment (CME)
Energy, Utilities and Services (EUS)
Insurance, Healthcare and Life Sciences (IHL)
Manufacturing (MFG)
Retail, Consumer Product Goods and Logistics (RETL)
New Markets and Services (NMS) : Non US and Non European markets, SaaS,
Learning Services
India Business Unit (IND)

In addition to these, there are Horizontal Business Units (HBUs)

Consulting (CS)
Enterprise Solutions (ES): ERP, CRM, HCM, SCM, BI/DW, BPM-EAI
Infrastructure Management Services (IMS)
Product Engineering and Validation Services (PEVS)
Systems Integration (SI)
Finacle : Core Banking Product

Management - Infosys
Name Designation

N R Narayana Murthy Chairman & Chief Mentor

S Gopalakrishnan Managing Director & CEO

Deepak M Satwalekar Independent Director

Omkar Goswami Independent Director

Claude Smadja Independent Director

David L Boyles Independent Director

K Dinesh Director

Srinath Batni Director

Name Designation

Nandan M Nilekani Co-Chairman

S D Shibulal Director & COO

Marti G Subrahmanyam Independent Director

Rama Bijapurkar Independent Director

Sridar A Iyengar Independent Director

Jeffrey S Lehman Independent Director

T V Mohandas Pai Director

Kundapur Vaman Kamath Additional Director

LISTING DETAILS - INFOSYS TECHNOLOGIES

 Key Dates

Year Ending Month Mar

AGM Date (Month) Jun

Book Closure Date (Month) Jun

Listing Information

Face Value Of Equity Shares 5

Market Lot Of Equity Shares 1

BSE Code 500209

NSE Code INFOSYSTCH

BSE Group A

Whether The Company Forms A Part Of The Following Indices -

Sensex Yes

Nifty Yes

BSE-100 Yes

BSE-200 Yes

S&P CNX 500 Yes

CNX Midcap No

CNX FMCG No

Listing On
 Listed On The Stock Exchange, Mumbai, National
Stock Exchange of India Ltd., NASDAQ
Stock Exchange

Share Holding Pattern

CATEGORIES ( PROMOTERS AND NON PROMOTERS)

Shareholding as on : 30/06/2009 31/03/2009 31/12/2008

Face Value 5.00 5.00 5.00

No. Of % No. Of % No. Of %

Shares Holding Shares Holding Shares Holding

PROMOTER'S HOLDING
Indian Promoters 94484978 16.49 94484978 16.49 94484978 16.50

Sub Total 94484978 16.49 94484978 16.49 94484978 16.50

NON PROMOTER'S HOLDING

Institutional Investors
Mutual Funds and UTI 23826059 4.16 20519719 3.58 22620828 3.95

Banks Fin. Inst. and 23671621 4.13 23801421 4.16 26785309 4.68
Insurance

FII's 204337813 35.66 199664124 34.86 188936523 32.99

Sub Total 251835493 43.95 243985264 42.59 238342660 41.62

Other Investors
Private Corporate 22579774 3.94 20085568 3.51 21334356 3.73
Bodies

NRI's/OCB's/Foreign 4956706 0.86 5105579 0.89 5204554 0.91

Others

Others 107579021 18.77 112433187 19.63 112274054 19.61

Sub Total 135115501 23.58 137624334 24.03 138812964 24.24

General Public 91623205 15.99 96735467 16.89 101000901 17.64

Grand Total 573059177 100.00 572830043 100.00 572641503 100.00

Dividends Declared
Announcement Effective Dividend Dividend Remarks
Date Date Type (%)

15-04-09 04-06-09 Final 270.00 -

25-09-08 16-10-08 Interim 200.00 -

15-04-08 29-05-08 Final 545.00 (Final Dividend 145% +

Special Dividend 400%)

26-09-07 18-10-07 Interim 120.00 -

13-04-07 06-06-07 Final 130.00 AGM

28-09-06 19-10-06 Interim 100.00 -

14-04-06 25-05-06 Final 770.00 Silver Jubilee special

dividend of Rs. 30 per
share (600% on par value
of Rs. 5 per share) & final
dividend of Rs. 8.50/- per
share (170% on an equity
share par value Rs. 5/-).

23-09-05 17-10-05 Interim 130.00 -

14-04-05 01-06-05 Final 130.00 Final dividend of Rs. 6.50

per share (130% on an
equity share par value
Rs. 5/-).

01-10-04 18-10-04 Interim 100.00 (100% on a par value of

Rs.5/- per share)

13-04-04 26-05-04 Final 2,300.00 Final dividend of Rs. 15/-

per share (300% on an
equity share par value
Rs. 5/-) & Special one-
time dividend of Rs. 100/-
 per share (2000% on an
equity share par value of
Rs. 5/-). (Revised)

Bonus History
Announcement Bonus Record Ex-Bonus Date
Date Ratio Date

14-04-2006 1:01 14-07- 13-07-2006

2006

13-04-2004 3:01 2/7/2004 1/7/2004

25-01-1999 1:01 5/3/1999 8/2/1999

18-06-1997 1:01 12/9/1997 19-08-1997

30-06-1994 1:01 15-09- 19-08-1994

1994

COMPETITORS:

Competition
Last Market Sales Net Total
Price Cap. Profit Assets

(Rs. cr.) Turnover

Infosys 2,190.65 125,537.21 20,264.00 5,819.00 17,809.00

TCS 540.8 105,846.51 22,404.00 4,696.21 13,486.62

Wipro 564.9 82,795.01 20,987.30 2,973.80 17,528.90

HCL Tech 306.45 20,540.01 4,675.09 997.31 3,465.91

Oracle 1,752.45 14,680.17 2,212.62 695.71 2,812.65

Financ

Mahindra 113.9 13,388.96 8,137.28 1,715.74 7,381.31

Satyam

Mphasis 561.75 11,737.29 1,451.55 264.51 1,173.90

Tech 916 11,163.06 4,357.76 986.65 1,880.90

Mahindra

Financial 1,547.25 7,099.35 334.32 368.6 1,868.83

Tech

Patni 423.2 5,421.48 1,550.45 389.15 2,522.94

Computer