Sie sind auf Seite 1von 94

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c
ccc
EQUITY ANALYSIS
c
INDIA INFOLINE LIMITED
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 cc cc c  c
c
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c
SHAMEEM BEGUM
Roll No: 08N31E0048

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Mr. K Hari Krishna
Assoc. Professor Finance

MALLA REDDY COLLEGE OF ENGINEERING & TECHNOLOGY


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DECLARATION

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*c  ! c c c + !c  c  c ³EQUITY ANALYSIS´c c   c c

 c ,ccccc c  c cc c   c c c cc

 c  c c MASTER OF BUSINESS ADMINISTRATIONc c  c c  c

   cc  "cMALLAREDDY COLLEGE OF ENGINEERING AND

TECHNOLOGY"c ! -c

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c
c
c
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SHAMEEM BEGUM

c   


c c c
SUMMARY

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c   c c c  c  c c  c !. c c  !c c c c

c  ! -c  c c + !c c   c  c  c * c *c . c  c

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c !$ $! c 1-*-2c !cc  c  c c 0 c

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ACKNOWLEDGEMENT

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SHAMEEM BEGUM
c
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CONTENTS
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Chapter No. Name of the concept Page No.


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CHAPTER I - INTRODUCTIONc

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c c c
INTRODUCTION

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c. cc!,c , -c

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c! c"cc c,c c  c ccc cc  cc c cc
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ccc c cc -c c ! cc!cc.  cc ccc c c
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cAcc c.  c 4 !c c ! cc"c cc c-c  c  c  c c
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c c  ! c c  c  c - -"c  c c  ! c  c   cc
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cc!,@c c   cc c.  c.  c!c . cc

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NEED OF THE STUDY

c  c c  c ! c c + c  -c 2 c !c  c ! c c c c c
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!c -c  c  c c  c ! c . c c c  c  c c
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!,cc  c cc! "cc !c cc!,c   ccc  ! cc
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!c "c  cc! c³Equity´.
. cc  c!,Bc
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pc c! c cc. cc, c !c c  cc!  -c
pc c! c cc. cc, c ! c  c
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c. cc c c c-c c c ccc c c. cc
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c c c

OBJECTIVES OF THE STUDY

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pc   c c c  c  c !c c   c  c

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pc / c  c  !c c . c ! c c  3c c ! 3c

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pc   c c c !c ! 3c  c c  c  c  c c .  c c

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SCOPE OF THE STUDY

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+ !c c  c c c , c  c c c c -c 0  "c  c

cc cc ccc. c  -c

pc  ccc cc, cc! c. c!  c- -c  c

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METHODOLOGY

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c  c ccc  c c  cc !cc c  cc!c

c c  c  c !c !c  c / c c  c   c  . c c !! !c !c  c

! . cc . ccc  ! c!!-c

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 cc c + !c+ !. -c

 c   c c  c !,c  c  c   c c ! ! c  ! c c c  c

  ! c c  c c c


c   -c  c !,c  c ! c c c  c

 cc !c!,cc! c  cc c c!,c! -c c!,c

 c! c c c c ! -c

 c   c / c  c  c  c c !,c c , c c ;c  c  c c c

!,cc ccc. c 4. cc  c  c-c

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LIMITATIONS
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pc ccc c!! c  cc c1cc c.  -c

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pc  ccc cc c!  c. c  -c

pc   ccc c !ccc  c cc c/ cc c + !-c

pc  ccc! cc  cc c!c c c   !cc- -c c

c cc&<c-c

pc  cc!!c c cc c ccc. c  -c

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c c c
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CHAPTER II - REVIEW OF LITERATURE

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c c c
SECURITY ANALYSIS
c
*.  c !! c c c !c c  c c ! c   !c c  c c !,c

 ! c!  cc  !c! ccc.c ,c ! -c*c  cc! c

c   !"c  c c ! c!c c .  c c !!c  c  ! c

-cc

*.  c  ! c c ccc!c+ !. Ac

%-c c, c! c cc  c cc  c ! -c

'-c c  c. c! -c

  c c ! c  c  ! c c c c c ! -c c .  c c c ! c

 c c / c c   c ! -c  c  c !c c  ! c c c

 ! c ! cc.c- -c ccc !!cc

 c . c c !c !,c c    c c  c   c c  c  ! c c  c

 c c  c  c !,-c *c  c ! c c  c c !c    c   c c

"c c. cc c!,cc!  -c7 c. c!  c c ! ccc

 ccc.  cc!  -c# . "c+cc, c c..c.  cc  c

 "c c4cc! ! cc c ,c! c.. -c0 cc 4 c

c c cc ,c 4  cc c  cc  "cc c cc

  c !!c c c  c  c c c   c  c .c c c

!,-c

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c c c
c
FUNDAMENTAL ANALYSIS
c
0 c c c c  c c  ! c  c  c ! c .  c c c

!c   c  c c !!"c !"c .  c c  c  .c

! cc!ccc !c c!c cc cc . c  c

 c!c  -c*cc ccc !!"c cc! c!c

c c  c c    c  c . c c c ! 3c !,-c 0 c c

 !c! cc, c!cc! 3c!c  cc   cc c

!,c ! cc! !c. -c c c c  cc ccc c !!c

 $  ccc!c cc  cccc ! c.  -c

0 ccc c!   cc.  -c c!c  c  c

 c  c c c c c c .  c . c -%c c  c c  c c c

! "cc!c 4 ! c  c cc.  c c-cc

 c  c c cc  c c  !c. ccc  ! -c*ccc

c cc  ! c c cc cc ccc cc  -c c c

 !c !c  c  c .  c c , c c c  c  c  !c c  c c c c

  c c c  c  c c  c ! "c c  c  "c c  c

!-c*ccc,ccD $c !E-cc !c  ccc c

!!c!  "c c cc c! c 4 !cccc,c

c³economic-industry-company approach (EIC approach)´-c

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c c c
c cEIC approachc.. c c Bc

%-c 1!!cc

'-c * cc

;-c 2 cc

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%-cECONOMIC ANALYSISc
c
 c  . c c !!c !.c c c  !c c .  c c c -c *c  c

!c c  "c  c  c !c c  c 4 ! c c c  c c c

.! c. -c7 c c . cc !!c!.cc"c!,c ! c c"cc c

 c  . c c !!c !.c c  "c !,c ! c  c  c  ! c  c  c

,c c cc cc c -c ccc! c !!c .  c

c  cc c c . cc c!,c ! -cc

 c!c/ c! c !!c! c ccBcc

Gross Domestic Product (GDP): 56c! c c  cc cc c !-c*c

 c  c   c . c c  c c c  .! c ! c c  c !-c *c

!c c c ! c 4  "c c . c  !c .  c c

.  c 4  cc cc .! cc c 4  cc cc .! -c

 c c  cc !c c c c  !c  c c  c  ! c c  c

 c.  c!c 4 !c c.  cc -c c  c c  cc c

.  cc c!,c , -c

Savings and investment: *cc.cc c  c .  c!c c c

 c c c c  !c . -c !,c  , c c c ! c   c

!c  c . c  c  c . c c c !   c  -c . c  c   c

. c . c  c , c c  "c  "c c "c c  c c -c

 c. cc.  c  cc c !c !  c!,ccc c 4 -c

c   


c c c
c

Inflation:  cc c cc56"cc cc  cc!  "c c c

c c c  c . c  -c  c  !c c c c ! c  , c  c

 -c c!  cc c 4 ! c  cccc 4 ! cc! ccc

 c c  c  -c "c c !  c ! c c  c  c c .  c

 !-c c c !  "c c c c 4 c !c c   "c  c

 / c  c c cc  cc c ! cc -c

Interest rates:  c c  c !c c!cc! cc c -c c !  cc

 c  c  c c!cc! c c cc c -c c c

c . c c c  c  c  c  c  c  , c c  c  c  c c

  c  -c .c c !  c c !  c  !c c  c c  c

! cc -c

Tax structure: 1. c   c c  !"c  c  c !c  c c  c

5.  3c !  c   c  c 4c !-c 2! c c ! . c

. ccc! c c !  c.  ccc  ! c -c4c  3c

. c c . c !  c . -c  c  c c 4c 4  c c  !c c  c

cc c  -c

Infrastructure facilities: *  ! c ! c  c  c  c  c c c

 cc ! c ! -c c c  ,cc!!c cccc

 c c cc c !-c


 c cc  ccc  c!ccc

c   


c c c
c

c  c !-c , c c !c  ! c c c  c c  c c

. c  c  cc c -c5c  ! c! c !c c!,c

 , c. -c

c
-.cINDUSTRY ANALYSISc
c
c ccc  cc cc. c c ! !c ! cc !c

c ! c c !cc* c c cc cc  c   !cc

! c c  c c c c  c  c c  c  ! c c  c  c

!!"c, cF!  F-c*  !. cc !!c !!c"c c  c c

 c 4 ! cc  c  "cc c ! cc  c  ccc ! cc!ccc c  -c

c !cc !!cc c !!c! c ! c c ! cc  c.  cc c

 c ccc.c 4 !c

Industry Life Cycle:  c  c  c !! c   c c  c   c c c

5  ,-c c c!! cc c cc   cc c c  c -c

pc º   
 c  !. c c c c !cc  ccc

 c c  c  ! c c  c !c c -c  c  c  c  c !c

 !c c ! c c ! c  c  ! c !-c  c c  c

 . c! ccc c!  c .. cc -c c ! c

 cc .  c c "c  c c !cc!  cc !c -c

*c c "c c c !c c   !c !  c  c .  c  ! c  c

 ..c  cc,-c

c   


c c c
pc {     
 c  c  c c  c   ! c c  .. c  c

 c c   c  -c c!  cc. cc c! c

c  cc , c cc!c  ! -c c ! cc c

!cc . c  . c  c c c!cc !cc c

c !-c c!  c. c c c  ccc cc c

 ! c . c c  c   -c *c c . c c . c c  c  c c

  c!  -c

pc M          


 c c  c cc  cc c  c

c cc c c c c cc c c c  c c c c

 !c !c c  -c  c c  ! ! c c   c c  c

 ! -cc, c  "c ! !c.cc c !c ! c

c !c c  c  ! -c  c .  c . c c ! c  c  c

. cc, c ! cc c c cc c -c

pc    
c  c  c  c  ! c !c c  c   c c  c

!  cc c c ! -c*cc  cc.c.  cc c cc

 c c c  c . c c  c c -c *.  c c  c  c c

  c cc!  c cc cc! -c

Growth of the industry:  c !c  ! cc c cc cc c

c c c  c / -c  c c . c c  c c c c

!cc! c !!c! c . cc cc c -c

c   


c c c

Nature of competition:  cc! ccc  c! cc   c c

 c  c  c  ! c !"c c c c  c ! c c  c !!  c

! c !  -c  c !  @c c c c  c !c c  c c  c

c! c!c!-c*ccc c c  cc c / c

 ! "c c! cc c . -c c! cc ccc ! cc c

! c c  c !-c  c .  c   c .  c c  c !  c c c ! c c

/ c  c  , c  c c  c  ! c ! @c !c c c !  c c

c c c. c!  -c

c
SWOT analysis: 78c c  c  c   "c  , "c   c c

 c cc -c1. c.  cc! ccc78cc c c! c

 -c, c c! "c!  cc c c c 3c !c ! cc

  "c  ! c c  c  c c  c  , "c - -c ! c  ! c  c

 ccc  ! c! -c c  cc


cGcccc ccc  c

c  cccc c ccc -c*ccc c! c cc c

  cc/ -c

c c

c   


c c c
;-cCOMPANY ANALYSISc

*c c! cc c.  c c c . ccc c  c

c c! c c . c c  cc  c. cc c!,-c c ,cc

 c ! c c  c  ! c c  c !,c c / c c, c   c .  c

 !-c c  cc c. c c ! ccc cc! -c

Competitive edge of the company: + c   c c *c  c !  c c

 cc.c!  -c c c cc!  cc "cc c

!  c! c c+ c , c -c c! .  cc c! c!c c

 cc c  cc c Ac

pc M   
  c  , c  c c  c c  c   c c    c c

! 3c . c! . c cc c -c*c c , c c

c  "c c! cc  c cc c c! c !! -c c

!  c c  c  , c c  c !  c c , c !c  c

  "c c cc c  -c

pc ½    


c  c  c c c  c c , c  c   c c c

  c c c  c c  c c  -c *.  c  c  c

/ c c c c  c  ! c  c  c / c !  c c  c  c c

c c c!! c  cc c! cc c/ -c

pc à      


c *c c  c c  c  c .  "c c c . c  c  c

  -c ccc c , c c! c c ! c cc! "c

. cc c c c -c# ! c ccc cc c!  cc

c , c cc c!  3c , c -c

c   


c c c


Earnings of the company:  c ccc!  c c   cc c!cc

4  cc c ! cc  ! c c   -c 0  "c   cccc

!  c c !  c c  -c  c ! 3c  c  c . c !  c c c

  c c cc ! c cc  cc!-c# ! "c c.  cccc

 cc c "ccc/ c c   cc c! -c


Financial analysis:  c  c  ! c c !c  c c c ! c c c

c !c   -c c c c  c  ! c c  c  c . c  c

.  c  !cc c  ! c! 3c!,-c0!c  ccc

 c c c c ! 3c !c   c  c . c .  -c  c   c

. c c !cc! c cc c! 3c -c# !c

!c   c   c c !c  c  c c  c ! c  c c c

/ c c  ccc c! -c ccc  c cc cc

 c! c cc6 cc=c !!-c

 c! c cc cc c!c  cc!  c  c . c  c

 c  c  -c*cc, cc!c "c c! @c!ccc

c cc -c*cc  cc c  c "c c c! @c! c cc

 -c *c   c c c  c ! c  ! c c  c ! -c *c c   c  c  c

.  c c .c c ! c c 4! . c  c !  c c c ! c  ! -c

0 c c! c "cc cc c! c!cc c  cc c

 cc! c cc! c -c

c   


c c c
Ratio analysis:
ccc  c  cc  c 4  c !-c

0!c c . c  !c  c   c c  .c !c -c

0!c c c!! c c c! c cc ccc!!-c c

 c!c c  c 4  ccc ! c ccc -c


c / c c

c c c  "c!  cc -cc

c c.  c   c!c c! cc c "c . c "c

c .  c -c6 c c c cc   c c! c.  c  c

c  c c  c c  ! cc cc cc !c c c

  cc c ! -c c c c c c c c  cc "c

! c   c   "c ! c c ,c . "c ! c c !c "c c ! c c  "c

. c "c  cc "c  c. cc!c"cc c -c

c
a) Return on Assets (ROA)

8 c c !  c c  c !cc  c  c c  c c  c c  c  . c

-c

ROA = (Net Profit/Total income) x (Total income/Total Assets)

c c ! c  c  @c   !c !! -c 2  c !c . c  c c c

   Bc!c   "c c !c -c


8 cc c  c c,  c

! cc c! @c!  cc c! cc!! c   c  cc

  c    "c c c


8 c  c c  c c  c ! @c   -c
8 c

c  ccc!! c!c   c  c ! c c! 3c!  c

  c ! !-c c 4  c c c !  "c c  "c  . c c c  c

c   


c c c
! c 4 c c  c  , "c !  c c  , c  -c  c ! c c

! . c    c c  c c  c  c ! -c 7c c !! c !c

 c  "c


8 cc  c ! ccc  c c -cc

c
×) Return on Investment (ROI)

8*c c  c  c c ! c .  c c  "c - -"c c c .  c
c %c !  c c

 "c ! "c c c  c c  cc   c
-c'<c ,cc  c "c c

 c
8*cc'<H-cc c! cc  cc.  cccBc

Return on Investment (ROI) = (Net profit/Equity investments) x 100

cc c . cc c c  ! ccc c c  c "c  c c "c

  c c c -c c  cc  3c.  cc c!  cc

 c  cc c c cc c c -c c $ c!  ccc

c    c   c  c .  c c  c  c  c  !. c  c c c  c

.  cc, cc. cc c c  cc  -c

c) Return on Equity

 c c c   c c !c c c   @c .  c c !c

  -c c  cc c c c.  cc!c c.  c  cc   c

 c  c ! -c  c   c  c  "c  c   c c  c  ! c c  c

! cc c c  cc c + !c c! cc.  c-c

 c! cc  cc cccBc

c   


c c c
Return on equity = (Net profit to owners/value of the specific owner's

Contri×ution to the ×usiness) x 100

 c c c  c   c c  c c   c c  c .  c c ,c

c   c c  c ! c c  c c !c !c  c  c . c c c

. cc -c

c
d) Earnings per Share (EPSc

c c   cc c! cc   c c . c -c0 cc.  "c

  c  c  c c   c -c 16c c !! c c . c  c   c  c

cc cc cc c -c

 c! cc16cccBc

Earnings per share = Net profit/Num×er of shares outstanding

 c 16c c c c   c c c c  c !  c c 16c c  c

 c !  "c c . c c . c c  c !  . c   c  c   c  c c c

 -c16c!! c cc cc   c ! c  c cc   c  cc

 c! cc!  -c

c
e) Dividend per Share (DPS)

 c 4 c c  c c . c c  c   c c   c c  c  c c

. c c  -c  c . c c  c . c  c c c !c c  c  c

! cc c ccc!! ccBc

c   


c c c
c

Dividend per share = Total dividend payment / Num×er of shares outstanding

 c  c c . c !c . c  . c  c c  c   -c  c

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FINDINGS, SUGGESTIONS & CONCLUSION

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