PROJECT REPORT

The Faculty of Management Studies TITLE A BRIEF STUDY OF EQUITY RESEARCH

Submitted by: AMIT SHRIVASTAVA BITS AND BITES COMPUTERS SIKKIM MANIPAL UNIVERSITY RAIPUR(CG)

Corporate Guide : Mr.Praveen Soni Branch Manager

Faculty Guide: Ms. ALKA

Authentication Certificate
To Whom It May Concern This is to certify that the Internship Dissertation titled EQUITY RESEARCH___ is a bonafide work carried out by me at INDIABULLS_. The matter embodied in the dissertation report has not been submitted earlier for award of any degree or diploma to the best of my knowledge and belief.

Signature of the Intern Name of the Intern AMIT SHRIVASTAVA

Training organisations certificate

To Whom It May Concern This is to certify that the Internship Dissertation , titled _EQUITY RESEARCH_ done by Mr.AMIT SHRIVASTAVA is a bonafide work carried out by her at INDIABULLS SECURITIES LTD(JAIPUR) under my guidance. The matter embodies in this dissertation has not been submitted earlier for award of any degree or diploma to the best of my knowledge and belief. Signature of the Intern Name of the Intern Date AMIT SHRIVASTAVA Signature of the guide Designation

ACKNOWLEDGEMENT
First and foremost I would like to express my sincere gratitude to Mr.Laxman Sharma, Asst.Vice President, Indiabulls Securities Ltd. Jaipur Branch for providing me an opportunity to work in this organization as a project trainee. I am grateful to corporate guide Mr.Praveen Soni, Branch Manager, who has been an inspiration for me, who has shown me the light of corporate world, who has guided me eloquently during my project work and who has been my mentor through out my project. I express my deep sense of gratitude to faculty guide Ms.ALKA for his constant support and valuable suggestions. I would also like to pay our acknowledgements to all the corporate executives, for taking out time from their busy schedule and providing us with relevant information, which contributed significantly to our project analysis, specially Mr,Hemant Joshi and Vimal Sharma in operations for her support and encouragement. Finally, I would also like to thank all my dear friends for their kind cooperation, advice and encouragement during the long and arduous task of preparing this report and carrying out the project. And last but not the least, my family members whose blessings, inspiration and encouragement have resulted in the successful completion of this project.

EXECUTIVE SUMMARY
An Indiabulls security limited is one of the leading companies in the financial market. It has made a significant place in stock market by its operations in different services. For knowing more about the stock market the industrial scenario was done and to know about the company, its operations and its position the organization profile is being included as a important part of this project. The main objective of this project is to find out about equity research, fundamental and technical analysis of company to find the position of shares. In this project important equity tools are used. Real Estate has emerged as an increasing favoured avenue for investment in India. The real estate sector in India is on a high growth path. While the Indian real estate market is not as transparent and liquid as more mature markets. India Bulls Real Estate was demerged from its parent company India Bulls Financial in 2006. It has lately started operations and is poised to be one of the largest listed real estate companies in India. It deals across residential and commercial real estate projects. The objective of the project is to decide whether to invest or not in India Bulls Real Estate. To arrive at a conclusion the Fundamental and Technical analysis of India bulls Real Estate is done. Investors looking to gain from short term investments may look towards other players in the Real Estate Sector. India Bulls Real Estate is still to earn from its core business. Fundamentally investing for short term in India Bulls Real Estate isnt advisable.

However long term investors can look forward to invest in India Bulls, many of its projects are located in Mumbai, Delhi and Chennai. And we all know that these cities lack space, which would increase earnings for the company when these projects are completed and sold/rented. The Earning per Share would definitely increase in the long run, it is being interpreted by the technical and fundamental analysis of India bulls Real Estate.

CONTENTS

1. Introduction a. Industry scenario b. Organisation profile c. Problem definition/objectives of the study d. Detail study 2. Body of the dissertation a. Research methodology b. Data analysis and interpretation c. Findings and solutions proposed d. Suggestions for implementation
3. Summary and conclusion

4. References and bibliography

INDUSTRIAL SCENARIO
The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are the two primary exchanges in India. In India, in addition, there are 22 Regional Stock Exchange. However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80 percent of the equity volume traded in India. The average daily turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April-August 1999). NSE has around 1500 shares listed with a total market capitalization of around Rs9, 21,500 crore (Rs 9215-bln). The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,68,000 crore (Rs 9680-bln). Both exchanges have a different settlement cycle, which allows investors to shift their positions on the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P NSE50 Index (Nifty), which consist of fifty stocks. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE on Line Trading) and NEAT (National Exchange Automated Trading) System. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. The scrips traded on the BSE have been classified into A, B1, B2, C, F, and Z groups. The A group shares represent those, which are in the carry forward system (Badla). The F group represents the debt market(fixed income securities) segments. The Z group scrips are the blacklisted companies. The C group covers the odd lot securities in A, B1 & B2 groups and right renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FII and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd. The securities market has essentially three categories of participants, viz., the issuer of securities, the investors in the securities and the intermediaries. The issuers are the borrowers or deficit savers, who issue securities to raise funds. The investors, who are surplus savers, deploy their savings by subscribing to these securities. The intermediaries are the agents who match the needs of users and suppliers of funds for a commission. These intermediaries function to help both the issuers and investors to achieve their respective goals. There are large variety and number of intermediaries providing various services in the Indian securities market. The securities market has two interdependent and inseparable segments, the new issues (primary) market and the stock (secondary) market.

Primary market
In this primary market, new securities are dealt. This is called IPO. Like whenever the company requires funds for its any operation it issues shares, debentures, bonds and preference shares etc. to raise fund from public. The company may require funds for any reason may be for establishment reason or may be for expansion reason. So this market of IPO is called primary market.

Secondary market
Once investors have purchased new issues, they change hands in the secondary markets. There are actually two broad segments of the secondary markets the organized exchanges

and the over-the-customer (OTC) market. The primary middlemen in the secondary market are brokers and dealers. Broker act as an agent while dealer as a principal in a transaction. Organized stages are physical market place where the agent of buyers and sellers operate through the auction process. In secondary market there is the process of trading, in trading securities are sold and purchased by investors. For the trading accomplishment there is a settlement cycle called rolling settlement cycle. In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. At NSE and BSE, trades in rolling settlement are settled on a T+2 basis i.e. on the 2 nd working day. Typically trades taking place on the Monday are settled on the Wednesday, Tuesdays trades settled on Thursday and so on.

Trading
Trading is the process of buying or selling different type of securities in stock market. In these stock markets daily there are many transaction held on the basis of trading. When investor buys any kind of securities, his main motive is to make profit out of that by selling it on the high prices. This all process of selling and buying is called trading. In India there is two type of trading available. These two types are: -

Online share trading

Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet known as online brokers, they allow you to buy and sell shares via Internet.Investors can have complete control of their stock investing actions, now that they have the convenience of buying and selling shares on the NSE online and in real time. Each individual has access to the latest information and tools to analyse any stock investment decision. Plus the power to execute the sale or purchase right before them on their personal computer screen. There are 3 types of online trading service:

Intraday Cash Margin Margin Trading

Margin Trading is nothing but borrowing money to invest in stocks, Here the investor borrows money from his/her broker to invest in stocks through the same broker. The margin here is the money actually borrowed from the broker. The margin loan can be up to 50% of the total amount invested. This effectively means that you can invest in shares worth Rs 100 by borrowing Rs 50 from your broker. This is called buying shares on a 50% margin. If the value of the shares goes down, the investor has to pay a maintenance margin to bring the margin up to 40% of the market value of the shares. This margin is paid when the broker makes a margin call to the investor, and investor has to pay the difference between current margin and maintenance margin to take it to 40%. If the margin

falls below 30%, the broker has the discretion of liquidating the clients holdings and thus recovering the loan advanced

Competition within the industry

Competition within this industry is very high, there are lots of new companies coming in this business, although indiabulls has good reputation but competition is so high that it affect Indiabuls securities Ltd also. This market is centre of attraction to new entrepreneur because it is already successful market and it is for sure that it will grow further, and there are many opportunities lying ahead in the way. But although it is successful industry competition affects the major players, and indiabulls is one of the successful players of this industry. It is working very efficiently to fight back with competition and challenging its competitors by satisfying its customers at most level of their satisfaction. It has many competitors which are providing different type of services. The brief introduction of its competitors is given below: 5paisa. Com 5paisa is the trade name of India Info line Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Info line Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in e-broking space in India. Their key products are investor terminal and trade terminal. Its special feature is that it is not charging any kind of AMC which provides comfortable tariff card to its clients. It provides the facility of margin for intraday and delivery as well as. ICICI Direct.com ICICI Direct.com is the most comprehensive website, which allows its clients the opportunity to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. They offer their clients a product for every investment need. This provide the facility of cash trading, margin trading, margin plus trading, spot trading and BTST facility to its clients. It also provides the facility of margin and funding for facilitating its clients to trade with more money.

Sherkhan Sherkhan is also one of the close competitors of Indiabulls. It facilitate its clients in many ways. Although it is not as big as Indiabulls, ICICI Direct.com, etc, but it is still going forward speedly by winning the trust of its customers. Its product range includes classic trade, speed trade and speed trade plus. Which facilitate its client during trading. It has also the procedure for providing the margin and funding the trade. Ananad Rathi AnandRathi (AR) is a leading full service securities firm providing the entire range of financial services. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of

equities, commodities, mutual funds and insurance - all of which are supported by powerful research teams. Its products includes Demat and Trading accounts. It only provides margin for intraday to its clients, it does not provide funding for delivery.

ORGANISATION PROFILE Introduction to Indiabulls Business Group :

Indiabulls is Indias leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000

Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls Group is one of the top 15 business houses in country with business interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power sector. Indiabulls Group companies are listed in Indian and overseas markets and have a market capitalization of over USD 7 billion. The Networth of the Group exceeds USD 2 billion. Indiabulls Group companies enjoy highest ratings from CRISIL, a subsidiary of Standard and Poors. Indiabulls has been conferred the status of a Business Superbrand by The Brand Council, Superbrands India.This all is because of hard work and dedication of the employees of indiabulls. Indiabulls group has taken very smart and intellectual people as their employee ,so that these people can serve upto the best level to the group . Here in this group the working infrastructure is considered very important, because if the working condition will be good and modern then it will be easy for employees to work for long hours with full spirit and enthusiasm. As now a day employees are mobile because there are many opportunities for talented people, so to retain the talent in the organization it is required to provide some additional facilities. It is important that employee feel themselves comfortable and familiar in the organization. In present conditions, employees put more of their emphasis on the working condition of the organization and if we want employees to work properly then we have to take care of all the important aspect that are related to them. This is becoming the culture now a days to facilitate the employees for having the healthy organization because employees are considered the valuable assets not a machinery, and to retain the talent is the main task of organization and Indiabulls group understand and follow that very well And in return of their efficient hard work and dedication this group is providing them all the facilities that are required to have a sophisticated life style.

Growth history of Indiabulls

2000-01

Indiabulls Financial Services Ltd. established Indias one of the first trading platforms with the development of an in house team.

2001-03

Indiabulls expands its service offerings to include Equity, F&O, Wholesale Debt, Mutual fund, IPO distribution and Equity Research. Indiabulls ventured into Insurance distribution and commodities trading. Company focused on brand building and franchise model.

2003-04

2004-05

Indiabulls came out with its initial public offer (IPO) in September 2004. Indiabulls started its consumer finance business. Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate.

Indiabulls won bids for landmark properties in Mumbai.

2005-06

Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development. Merrill Lynch and Goldman sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. Indiabulls is a market leader in securities brokerage industry, With around 31% share in online trading, Farallon Capital and its affiliates, the worlds largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2% stake.

2006-07

Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crore to develop residential apartments. Indiabulls Financial Services Ltd. is included in the prestigious Morgan Stanley Capital International Index (MSCI). Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd. Indiabulls ventured into commodity brokerage business. Indiabulls has received an in principle approval from Government of India for development of multi product SEZ in the state of Maharashtra. Dev Property Development plc., has subscribed to new shares and has also acquired a minority shareholding from the Company. Indiabulls Financial Services Ltd. Board resolves to Amalgamate and demerge Indiabulls Securities Limited.

Indiabulls Financial Service :

Indiabulls Financial Services Limited, the parent company from which Indiabulls Real Estate and Indiabulls Securities were demerged, is Indias leading Non-Banking Finance Companies (NBFC) which is primarily into extending retail and commercial loans and distribution of third party products. IBFSL is amongst 68 companies constituting MSCI Morgan Stanley India Index. IBFSL is also part of CLSAs model portfolio of 30 Best Companies in Asia. The lending business of IBFSL is rapidly growing with loan assets of Rs. 104,410 million as of 31 March, 2008.

Indiabulls Real Esate Limited :

Indiabulls Real Estate Limited (IBREL) with projects covering a total land area in excess of 10000 acres is one of the largest listed real estate companies in India and a leading national player across multiple realty and infrastructure sectors. IBREL projects include High-end Office and Commercial Spaces, Premium Residential Developments, Integrated Townships, Luxury Resorts and Special Economic Zones. IBREL is partners with internationally renowned consultants and construction companies for its developments at various stages of execution. IBREL partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate .Indiabulls Real Estate further plans to raise capital with an equity issue in Singapore in the coming few months.

Indiabulls securities Ltd.

Indiabulls securities ltd is indias leading retail financial services company with 135 locations spread across 65 cities. It was founded in mid 1999 by Rajiv Rattan, Saurabh Mittal and Sameer Gehlaut, IIT- Delhi graduates. The branches of indiabulls is spread all across the length and breadth of the country. In jaipur alone indiabulls have 5 branches namely: 1)Ganpati plaza complex 2)Malviya nagar 3)Jahri bazaar 4)vaishali nagar 5)Raja park Although all these five offices works individually and handle great amount of work in their offices but if we talk about the main office in jaipur city then it is situated in Ganpati plaza complex. This handle all the other branches very efficiently. Indiabulls securities Ltd offers a full range of financial services and product ranging from equities to insurance to enhance your wealth and hence achieve your financial goals. Indiabulls securities ltd is lead by a highly regarded management team that has invested crores of rupees into a world class infrastructure that provides the clients with real time service and accesses to all information and products. Indiabulls securities Ltds professional network offers a real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. Indiabulls securities ltd is highly profitable and rapidly growing business and is managed by a highly motivated, qualified and talented team. Indiabulls securities ltd collaborates with all associated fields that are doing very best. Indiabulls securities ltd is one of the very few who conform to the stringent norms of the National Stock Exchange and hence are approved to provide online and real time trading experience. With indiabulls.com investors can have complete control of their stocks investing actions, now that they have the convenience of buying and selling shares on the NSE online and in real time . Each individual has access to the latest information and tools to analyze.

Indiabulls securities Ltd. Has diverse growing revenue streams:

Brokerage services for cash equities, debt markets and derivatives. Margin lending business.Indiabulls has developed a sophisticated real-time risk management system to monitor and manage this portfolio to earn attractive spreads with minimal risk. New business areas such as insurance brokerage & investment management.

Financial services and products offered by company

Indiabulls securities Ltd. Is one of the indias leading company in Indian security market. It is running successfully in this severe competitive market conditions, because it is providing different type of financial services and product to its clients in a most efficient and admirable manner. It is offering full range of financial services and product ranging from equities to insurance to enhance the wealth of its clients and by doing this it is achieving its goal to satisfy the clients at the most level. It offers it services in these many way: Mutual Funds:

Mutual Funds being a popular investment avenue have an entire section to itself. The Indiabulls Mutual Funds section simplifies the task of selecting funds; based on investor objective, risk appetite and the funds past returns. VALUE RESEARCH gives investors an exclusive analysis of all mutual funds in India. Armed with this and the Indiabulls Fund Finder, investor can find the fund just right for you. Based on criteria and not some one elses. Investor can even download Mutual funds forms and its all -free. Insurance: As a part of their endeavour to provide its clients with world class products and services , indiabulls gives the clients the opportunity to avail of the whole range of birla sunlife insurance products through the indiabulls network of 700 relationship managers over 135 locations nationwide. Which mean that the clients can take care of life,while taking care of their business. Equity : In equity range also indiabulls offer different type of products. Following are These products: Normal indiabulls Power indiabulls Equity analysis. Normal Indiabulls Web Based Connection: A connection is made through the website and get the script of 20 companies. The trading is done through the site of Indiabulls Securities limited. Power Indiabulls Power indiabulls is an extremely sophisticated trading application that brings a dealer's trading terminal right on to the clients desktop. Indiabulls is dedicated to empower Active Traders through Personal service and advanced trading technology. Power Indiabulls

provides users with an extremely powerful fully integrated Market Watch functionality. Users can open multiple grid based Market Watch screens. These screens can be given user-defined names and can have any number of scrips added to them. Power Indiabulls presents the user with a highly powerful charting package. User can open charts for any number of scrips using the right-click menu. One of the most distinctive features of Power Indiabulls is extremely fast and convenient order entry. Equity analysis Through equity analysis service indiabulls helps its clients in deciding which share to buy, in which share to invest , which share to retain and which share to sale.

Swot analysis of indiabulls

Strength : Indiabulls takes no AMC (annual maintenance charge) from the subscribed clients unlike others. Brokerage offered by India bulls is very competitive and negotiable.

It offers finely designed and secured software made in java applet and hence is not easy to break. Relationship officers are affable and very cooperative while advising the clients for making the investments. India bulls is not only confined to the share trading but it is also well established into sectors like insurance, personal loans, etc. Indiabuls have very efficient, hardworking and dedicated employees, which is one of the main strength for the entire group. Indiabulls is a well known group, it has a good reputation and goodwill in market, which helps this to growth further. Indibulls provides vast variety of services to its clients so it is gaining the trust of its clients. Weakness : Registration kit offered by India bulls is long & typical enough to be filled independently. India bulls offers a complete kit of RS 900 including opening of DMAT account and the trading charges i:e do not offer the provision of opening of DMAT account alone. Complete automation in buying & selling of the securities offer inevitable trouble to the computer illiterate in the beginning.

 ICICI & HDFC banks who also offer the DMAT account can easily procure the faith of the customers as they being the household name and have been big market player since long. Opportunities : Indiabulls is gaining ground as it has started its business real estate also by the purchase of Jupiter mills and Elphinstone mills in Bombay at prime locations which will add values to the Indiabulls financial services Ltd. Take over of the Indiabulls stake by the Amaranth groups (US based group) has helped it to gain an international recognition. As the interest of people in securities market is increasing day by day, so provide god platform to indiabulls to growth in this market further. As indiabulls is a well known group, everyone trust group entirely so this trust and goodwill provide the opportunity to diversify further in different kind of business. Threats : Higher attrition rate of the marketing executives is a serious threat to the India bulls as it accounts for the wastage of the time and the resources of the organization. Increase in the registration fee from RS 700 to RS 900, despite of the increase in the charge of NSDL & CDSL annoys the forthcoming clients for subscription. The biggest threat one can perceive is the disproportionate rise in the number of the clients and the carpet area of the office in Jaipur branch which creates difficulty in the operations. The increasing competition in securities market is creating a threat to indiabulls, as now many new firms are also entering in this business. Clients have to face a great difficulty and are left in confusion when a relationship officer who registered him quits the job, which take away the confidence of the future potential clients. With the increase in the number of the clients under a relationship manager ,it is more often seen that small investors find themselves ignored which could prove to be failure in the long run

OBJECTIVE OF THE STUDY

The stock exchange of the country are the important part of the capital market. It provides the investors a platform to invest indifferent securities. The well regulated stock exchange is in the interest of both the cos as well as the investors. In our country the stock exchange provide a good leverage to the capital market, but it is not very easy to get profit out of this market, for this we need to get knowledge of this market. The knowledge of this market can be obtained by doing equity research. Equity research is very important for the students of management.

As I have done my summer internship in indiabulls securities limited. The following are the objectives, which I kept in my mind while doing in indiabulls securities limited:1. To know practical concept about equity research 2. To study the general operations of the indiabullls securities limited 3. To impart knowledge about the general working of the stock exchange It is then followed by company analysis in which the profile of the company and financial position of indiabulls real estate are analyzed along with the fundamental and technical analysis.

DETAIL STUDY OF EQUITY RESEARCH

Equity research forms an integral part of the share trading experience. Equity research decides the stance one would take in the share trading industry. Forecasting scrip performance requires much more characterstics and skills than just advance arithmetical ability. It requires split-hair analysis of the market. To do so one also need excellent understanding of the market.

Equity Analysis

Indiabulls Equity Analysis provides premium research on 400+ companies updated daily. Indiabulls Equity Analysis provides clients with an objective stock rating system for more than 400+ stocks An unbiased approach to help in deciding which shares to buy and sell. Includes third party opinions to facilitate more informed investing decisions.

Parameters
Provides its clients in short and precise the companys background, stock price, asset class, ratings along with the 3rd party opinions. 1.Overview: Contains precise information about the industry (cement, pharmaceutical, IT, etc), current stock price, asset class (large cap; mid cap; small cap) and 52-week high-low 2. Company background /details: Indiabulls equity analysis provides the user with a basic company background that includes: - Services and products offered - Client profile - Core competence - Achievements and its relative position (market share) in the Industry. 3. Equity Ratings: Ratings are based on a set of parameters, which are as follows: Fundamentals - Assessed on parameters like net profit margin and ROE (Return on Equity). Valuation - Assesses the attractiveness of a particular stock. Higher the current value of the company, lower is its future attractiveness. Risk - Assessed on parameters like price volatility, liquidity of the stock, debt/equity ratio, etc. Momentum - Assesses the potential of the stock to keep performing at a stronger than market level in the future. The more the number of buy/buy-hold recommendation the better the momentum rating for the company

4. Current consensus opinion: Perspective from the viewpoint of the Analyst, which are used to generate ratings for each company (scrip wise). This includes the following: Third party opinion Only for companies researched by some analysts Parameters include Buy, Buy/Hold, Hold, Weak/Hold, Sell, and No opinion

5. Fundamental information: Under this parameter the companys share is compared with the industry and market which is based on the following parameters: -Revenue: Income generated from sales of the product. -Market capital: Number of shares * market price -Price/sales: Stock's current price / revenue per share -Profit margin (%): This parameter is an indicator of profitability, which is calculated as: Net earnings after taxes/revenues -ROE (%) Return on Equity: This is useful in comparing the profitability of a company to other firms in the same industry and this calculated as: Net income/shareholders equity -Long Term Debt/Equity: A measure of financial leverage indicating the proportion of equity and debt used by the company to finance its assets. -Dividend Yield: This parameter indicates the income generated by a share. -Beta: A measure of volatility for systematic risk of a security compared to the market.

Fundamental Analysis : India Bulls Real Estate Limited

In this part of the Analysis Ratios would be applied to analyse the Firms financial statements. The analysis will cover a time range to determine trends such as growth in earnings. In addition to this the ratios will be compared with similar firms namely DLF, Omaxe, Parsavnath and Unitech. This would determine the firms position within the Real estate industry. Balance Sheets of FY 2007 will be used (to enable comparisons within the same time range as FY 2008 Balance Sheets are not available for all the companies.) Profit and loss Statements along with recently declared Results of March 2008 will be utilized. Indiabulls Real Estate Ltd. : Balance Sheet (Crores)
0703-(12)
SOURCES OF FUNDS Owner's Fund Equity Share Capital Share Application Money Preference Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Total USES OF FUNDS Fixed Assets Gross Block Less : Revaluation Reserve Less : Accumulated Depreciation Net Block Capital Work-in-progress Investments Net Current Assets Current Assets, Loans & Advances Less : Current Liabilities & Provisions Total Net Current Assets Miscellaneous expenses not written 35.94 11.51 296.24 1,106.49 0.92 141.05 1,592.15

0612-(8)
33.74 0.00 296.24 903.63 166.31 303.02 1,702.94

25.44 0.00 0.81 24.64 0.22 594.41

26.52 0.00 0.38 26.14 0.70 0.00

1,782.69 809.81 972.88 0.00

2,203.35 527.24 1,676.11 0.00

Total Note : Book Value of Unquoted Investments Market Value of Quoted Investments Contingent liabilities Number of Equity shares outstanding (in Lacs)

1,592.15 594.41 0.00 60.08 1,796.75

1,702.95 0.00 0.00 0.00 1,686.75

Indiabulls Real Estate Ltd. : Income Statement (Crores)

0703-(12)
Income : Operating Income Expenses Material Consumed Manufacturing Expenses Personnel Expenses Selling Expenses Adminstrative Expenses Expenses Capitalised Cost Of Sales Operating Profit Other Recurring Income Adjusted PBDIT Financial Expenses Depreciation Other Write offs Adjusted PBT Tax Charges Adjusted PAT Non Recurring Items Other Non Cash adjustments Reported Net Profit Earnigs Before Appropriation Equity Dividend Preference Dividend Dividend Tax Retained Earnings 13.91

0612-(8)
0.00

-17.45 17.75 3.67 0.01 9.97 0.00 13.95 -0.03 31.57 31.54 5.29 0.80 0.40 25.05 11.95 13.10 0.00 0.00 13.10 13.10 0.00 11.62 1.79 -0.31

0.00 0.00 1.43 0.00 5.29 0.00 6.72 -6.72 7.52 0.80 2.07 0.31 0.00 -1.58 6.11 -7.69 0.00 0.00 -8.47 -7.69 0.00 6.17 0.87 -14.72

Sales Trend
Sales : IBREALEST in Crores

Sales Comparison with other Companies in this sector

Quarterly Sales Break up of India Bulls Real Estate (In Crores) : March 08 June 07 Sales 6.42 28.81 Dec 07 6.10 Sept 07 6.45

India Bulls Real Estate was demerged from its parent company India Bulls in 2006. As compared to other existing companies it had started operations much later. Real Estate is a sector in which income or in this case sales generation takes time (2 to 5 years). This is due to the time taken to acquire land and erect structures. This is evident from 372% growth in sales in March 08 from December 07. India Bulls registered the biggest growth in percentage terms but its sale is marginal as compared to other players in the industry. However India Bulls is the fourth largest Real Estate Company by Market Capitalization in India.

Operating Profit :

The Company in the year ended 2007 had an operating Income of 13.91 Crores after deducting operating expenses its operating profit was -0.03 Crores. However the company had Reported Net Profit of 13.10 Crores. This is due to the fact that the company had an income worth Rs 31.57 Crores from other sources. It earned the following from : Dividend From Mutual Fund : 6.482 Crores Interest in Corporate Deposits : 16.84 Crores Interest on Fixed Deposits : 8.262 Crores Miscellaneous Loss / Income : -1.3 Lacs Again in the recently released results for the year ended 2008, we have the following data : Financials Of India Bulls Real Estate for the year ended 2008 (In Crores) Income From Operations 140.65 Income from other Sources 624.00 Total Income 764.00 Net Profit 400.24 Its again very interesting to note that more than 81% of the income is generated from other sources. A business to survive in the long run should generate income from its core activities. Operating income in 2007 -2008 has increased by 911% from 13.91 Crores to 140.65 Crores and Income from other sources by 1912% from 31.57 Crores to 624 Crores. However in the near future as the company progresses with its projects its operating income should increase and income from other sources should decrease

Pie Chart Showing Sources of Income for year ended 2008

Ratio and Capital Analysis : Summary of various Ratios

Ratios EPS Dividend Per Share (Rs) Return On NetWorth (%) Return On Capital employed(%) Operating Profit Margin(%) Gross Profit Margin(%) Net Profit Margin(%) Current Ratio Quick Ratio Long term debt to equity Total Debt to equity Interest Cover (times) Assets Turnover Ratio Number of days of net working capital Inventory Turnover Ratio Export as percent of Total Sales IBREALEST 0.14 0 0.12 1.91 -0.24 -6 28.79 2.2 1.96 0.38 0.38 5.96 0.54 25170.31 0.79 0 DLF 2.72 2 62.15 15.35 59.76 58.91 28.38 2.5 1.36 8.74 10.37 2.77 3.01 1849.36 0.33 18.06 Unitech Omaxe 11.07 9.17 0.5 1 84.71 39.72 30.39 23.11 56.83 29.17 56.64 28.79 39.22 13.17 0.94 2.77 0.93 0.76 3.11 2.74 3.11 2.85 7.5 2.97 24.45 24.59 -34.07 448.5 85.69 0.7 0.08 0.54

Summary of Capital Structure IBREALEST DLF Equity Share Capital 35.94 305.88 Share Application Money 11.51 0 Preference Share Capital 296.24 0 Reserved And Surplus 1,106.49 346.92 Secured Loans 0.92 6,242.81 Unsecured Loans 141.05 526.48 Total 1,592.14 7,422.10

Unitech 162.34 0 0 998.66 2,839.67 765.39 4,766.06

Omaxe 154.95 0 0 166.32 883.3 30.77 1,235.34

Analysis Of Ratios
Earning Per Share : Earning per share is maximum for Unitech (11.07) and minimum for India Bulls Real Estate (.14). The Earning per share for India Bulls may have been negative if income from other sources. However India Bulls Real Estate is company which has commenced operations lately, with increase in operating income in the future the EPS would also rise. Return On Capital Employed : The ratio indicates how efficiently are long term funds being employed to generate profit. Long term funds here include both the owners equity and long term liabilities (non current liabilities). A higher ratio would indicate more efficient use of funds. Unitech gives a return of 30% on capital employed where as India Bulls Real Estate gives a return of 2%. This would improve once the sales of the company pick up on completion of its projects. Gross Profit Margin : The ratio indicates the percentage of Gross Profit as compared to total sales. This would flucate with change in cost of raw material, inefficient utilization of raw materials and resources. A gross profit margin lower than the industry, would show deficiency in the above or inefficient sales. The industry average stands at about 45 55% and India Bulls has a gross profit margin of -6%. It shows that its direct expenses exceed revenues, which is the case in new businesses. Net Profit Margin : India Bulls has a net profit margin 29%, higher than Omaxe and higher than DLF by 0.41%. This indicator depicts a picture entirely different from the profitability ratios discussed above. In other profitability ratios India Bulls Real Estate lagged behind and was no where near the industry average. This is due to the fact that India Bulls Real Estate generates income from other sources (discussed previously) and due to being new in the business has a small sales base. Current Ratio And Quick Ratio : The ratio indicates the ability of a firm to pay back its short term liability. The current ratio is within lines with the Industry average. A ratio of

2.2 indicates that for every Rs 1 of current liability the company has current assets worth Rs 2.2. The quick ratio of the company is slightly on the higher side as compared to the industrial average. This shows excess liquidity. This is due to the fact that India Bulls Real Estate being new in the business wont have much of stock (of raw materials) with itself. This considerably pushes up the Quick Ratio. Long Term Debt to Equity and Total Debt to Equity : India Bulls Total Debt to Equity ratio of .38 indicates for every Rs invested in equity there stands a debt of Rs 0.38. As the long term debt to equity and total debt to equity stand to be the same it indicates that the company has not taken any short term loans. This ratio of the company is one of the lowest in the industry. When compared with DLF whose ratio stand at 8.74 and 10.37, India Bulls Real Estate has majorly funded its project through equity. This offers a opportunity to India Bulls Real Estate in the future. In the future when its revenues increase it would have the option to apply financial leverage to increase shareholders wealth, thereby improving its EPS, and return on equity. Interest Cover : The ratio indicates by how much times a firms EBIT must decline so that its incapable in paying its interest obligations. Higher the ratio the better. India Bulls has a ratio of 5.97 times. Its above industry standards as the firm has not employed debt in its capital structure. If it does so in the very near future (when revenues arent as strong) it would see a considerable decline in its Interest coverage ratio as well a increase in Debt to Equity ratio. Assets Turnover Ratio : Asset turnover ratio of 0.54 for India Bulls Real Estate indicate that for every rupee it invests in a asset it generates a sale of Rs 0.54. However this ratio may mislead us when we compare it with companies in the Industry who have been functioning since long as the value of assets is net of depreciation. This will result in higher ratios for older firms and a lower ratio for firms like India Bulls Real Estate, who have started operations recently. Number of Days of Net Working Capital : Larger the number of days in working capital cycle the higher would be the amount required to be invested in working capital. The number of days shows the time it would take for a firm to turnaround its capital invested in working Capital. A period of 25170 days for India Bulls Real Estate is unrealistic in the long run. The firm has long holding periods of work in progress and raw materials. Once the firm starts rolling out its product for sale it would have shortened its working capital cycle.

Technical Analysis
In this section we would analyse the share of India Bulls Real Estate using technical tools namely : 1. Moving Averages
2. Relative Strength Index 3. Price Oscillator 4. stochastics

Moving Average

Series1 : share price Series2: 60 days moving average X axis 1-225: days in number starting from 28thjune 2007 to 30th may 2008 Analysis : Selling Signals : Moving average analysts recommend selling stock if : If daily price moves down through a moving average, price fails to rise for many month Moving average line flattens and stock price drops down through moving average line Stock price temporarily rises above a declining moving average line Stock price falls through moving average line and turns around only to fall again without penetrating above moving average line We notice sell signals at about 218, 211, 141 and 148 176. Buy Signals : Moving average analysts recommend buying stock if Moving average line flattens and stock price moves up through moving average line

Price of stock falls (temporarily) below moving average line that is rising Stock price is above moving average line, falls, turns around and rises again without penetrating moving average line

There are no recent buying signals. Hence in the end we may conclude that Moving Average analysis in the past few months are indicating only sell signals and no buy signals.

Relative Strength Index

X Axis 1-291 : Days in number starting from 20th April 2007 to 30th May 2008

Analysis : Wilder (Founder of RSI) recommended using 70 and 30 and overbought and oversold levels respectively. Generally, if the RSI rises above 30 it is considered bullish for the underlying stock. Conversely, if the RSI falls below 70, it is a bearish signal. Some traders identify the long-term trend and then use extreme readings for entry points. If the long-term trend is bullish, then oversold readings could mark potential entry points. April 2007 and early May 2007 show overbought signals since than the RSI has gradually declined to near about 50 and is dwindling there on. This shows uncertainty in the mind of investors.

Price Oscillator

Red line shows the price oscillator Blue line shows daily stock price Analysis Moving average analysis typically generates buy signals when a short-term moving average (or the security's price) rises above a longer-term moving average. Conversely, sell signals are generated when a shorter-term moving average (or the security's price) falls below a longer-term moving average. In this graph buy arrow sign when the price oscillator roses above zero and sell arrow when the indicator fall below zero. This is the price oscillator effectiveness. Because the price oscillator is a trend is a trend following indicator it does on outstanding job of keeping you on the right side of the market during trending period( as shown by arrow A) However during less decisive period the price oscillator produce small lossess as shown by arrow B

Stochastics

Analysis It is developed by george c. lane in late 1950. It is a technical momentum indicator that compares a security closing price to its price range over a given period. In this the filled sticks shows the price more than yesterdays price and blank sticks indicates the price less then yesterdays price.. In this if prices rises above 70 it shows overbought position( sell) and if prices fall below 50 it shows buy position.

Final Interpretation
From the above analysis of balance sheet, ratios and technical aspects we easily can interpret that , Investors looking to gain from short term investments may look towards other players in the Real Estate Sector. India Bulls Real Estate is still to earn from its core business (Its income mainly being generated from other sources of Income). Fundamentally investing in India Bulls Real Estate isnt advisable. Earning per share is at a risk of dilution after issue of fresh capital . However long term investors can look forward to invest in India Bulls,as many of its projects are located in Mumbai, Delhi and Chennai. And you all know that these cities lack space, which would increase earnings for the company when these projects are completed and sold/rented. The Earning Per Share would definitely increase in the long run.

RESEARCH METHODOLOGY Objective of the study

The following are the objectives, which I kept in my mind while doing in indiabulls securities limited:4. To know practical concept about equity research 5. To study the general operations of the indiabullls securities limited 6. To impart knowledge about the general working of the stock exchange

Type of research Sample size Type of sampling Data type Data collection technique and tools

Exploratory 40 Stratified Sampling Primary Quesstionairre and personal interview

DATA ANALYSIS AND INTERPRETATION

Q1 How much portion of your saving you invest/would invest in share market? a) 30% of the respondents go with upto 20% b) 32% of the respondents go with 20% to 40% c) 25% of the respondents go with 40% to 60% d) 13% of the respondents go with above 60% Majority of the respondents say that they would like to invest in share market upto 20% to 40% of their savings. Pie chart representation:

upto 20% 20% - 40% 40% - 60% above 60%

Q2 You invest/ would invest in stock market because a) 47% of the respondents go with higher returns b) 10% of the respondents go with faster returns c) 25% of the respondents go with easy liquidity d) 18% of the respondents go with depends on market Majority of the respondents say that they would like to invest in stock market because of higher returns. Pie chart representation:

higher returns faster returns easy liquidity depends on market

Q3 Taking the factors like security, rate of returns and time in consideration which among the following you rate as per the best option? a) 13% of the respondents go with bank Fds b) 5% of the respondents go with small saving schemes c) 15% of the respondents go with bonds d) 42% of the respondents go with equities/derivatives e) 25% of the respondents go with mutual funds Majority of the respondents rated equities / derivatives as the best option among the factors like security, rate of returns and time consideration. Pie chart representation:

Bank FD's Small saving schemes bonds equities/derivatives mutual funds

Q4 What are the basis upon which people decide to invest in stock market? a) 32% of the respondents go with technical analysis b) 13% of the respondents go with market calls/tips c) 8% of the respondents go with popularity of security d) 47% of the respondents go with goodwill of the company( DLF,L&T) Majority of the respondents took goodwill of the company as the basis to decide to invest in stock market. Pie chart representation:

Technical analysis Market calls/tips Popularity of security Goodwill of the company (DLF, L&T)

Q5 Which one you prefer most? a) 70% of the respondents go with technical analysis b) 30% of the respondents go with market tips/ market calls Majority of the respondents preferred technical analysis the most than the market tips/market calls. Pie chart representation:

Technical analysis Market tips/Market calls

Q6 How much you believe on technical analysis of stock or how much right results can be acquired by doing the technical analysis of any scrip? a) 13% of the respondents go with upto 40% b) 17% of the respondents go with 40%-50% c) 62% of the respondents go with more then 50% d) 8% of the respondents go with Does not believe at all Majority of the respondents believe on technical analysis of stock about more than 50%. Pie chart representation:

upto 40% 40% - 50% more than 50% does not believe at all

Q7 Is it beneficial for investors to use technical analysis, if yes then why? Some of the respondents said that it is beneficial for investors to use technical analysis .different respondents gives different response . To get secure returns and for hedging To get higher returns It is easy to understand They know about the company EPS, promoters and balance sheet In this investor decide better stock to invest

Nifty and scrip sport level and stock loss provide technical analysis For investing in the market technical analysis is a good option, they know about the past trend of shares, its behaviour and time of ups and down in the market. It is done by experts It is based on previous trend of shares It will gives us approx idea to enter and exit in market It provide accurate result It is based on scientific methods to calculate results It is the best choice available for the investor It provides idea regarding any scrip It provides estimation of good scrip

Q8 What are the tools that you offenly used in doing the technical analysis of equity shares? some are using the tools like meta stock, price oscillator, falkan, moving average and stochaustics. Majority of the respondents are go with the moving average

Q9 Is the technical analysis is easy to understand even a simple investor? a) 15 respondents go with yes b) 25 respondents go with no Majority of the respondents believe that the technical analysis is easy to understand even a simple investor. Bar chart representation:

30 25 20 15 10 5 0 yes no
Series1

Q10 If market tips/ market calls are the main base to choose the scrip then why? Different respondants gives different response. Some of the respondants said yes because It is easy to understand They know company history very well It is interepreted by experts It is based on recent movements of shares Lesser knowledge about the market They dont know about technical analysis For any investor it is good base because traders only can understand technical analysis

Q11 Is there any anxiety among investors to know about the technical analysis? a) 24 respondents go with yes b)16 respondents go with no Majority of the respondents believe that yes anxiety is very well found among investors to know about the technical analysis. Bar chart representation:

30 25 20 15 10 5 0 yes no Series1

Q12 If your base to choose the scrip is market calls/ market tips, then what are the sources you trust upon most? a) 8% of the respondents go with Market tips by securities (like indiabulls) based co,s on mobiles b) 45% of the respondents go with T.V channels like CNBC c) 47% of the respondents go with stock brokers Majority of the respondents say that if their base is to choose the scrip is market calls/market tips, then the sources they will trust upon are share brokers.

Pie chart representation:

market tips by securities based co.s on mobiles TV channels like CNBC Stock brokers

Q.13. Upto what percent market tips are correct according to you? a) 67% of the respondents go with 30% or less b) 10% of the respondents go with 30%-50% c) 10% of the respondents go with 50%-60% d) 13% of the respondents go with More then 60% Majority of the respondents say that 30% or less percent of market tips are correct according to them.

Pie chart representation:

30% or less 30% - 50% 50% - 60% more than 60%

Q14 Do you think will securities market grow as the awareness of equity research will be more popular? a) 40 respondents go with yes b) none respondents go with no All of the respondents believe that securities market will grow as the awareness of equity research will be more popular. Bar chart representation:

45 40 35 30 25 20 15 10 5 0 yes no Series1

Q15 Do you think with the growth in securities market, the awareness about equity research will increase? a) 40 respondents go with yes b) none respondents go with no All of the respondents think that with the growth in securities market, the awareness about equity research will increase.

Bar chart representation:

45 40 35 30 25 20 15 10 5 0 yes no Series1

FINDINGS AND SOLUTIONS

After conducting the research at Indiabulls branch at Jaipur on Equity research, many stages are undertaken as guidance towards appearing at conclusion like interaction with staff, questionnaire survey and percentage analysis. As the questionnaire are targeted to get filled by general public who keeps interest in investment and have an idea about equity. So I got the opportunity to know certain facts

about this securities market. Whatever conclusions I have drawn from this research part are mentioned below: Presently in India, securities market is not so much established and popular, there is only a small portion of people who are being an active part of this market as an investor. Most of the people invest only 20% to 40% of their savings in this market and their basic criteria to invest in this market is achieving higher returns. Most of the investors want to enjoy higher returns by investing in this market. Most of the investors, who are investing in this securities market are choosing the securities on the basis of goodwill of the company although they prefer & believe that technical analysis produces good and accurate results but still as these technical analysis is not so easy to understand they choose their securities on the basis of the reputation of the company. If we look upon those people who are using technical analysis then we will find that most of the people who choose the securities by doing technical analysis are using moving average as the most easy and suitable tool. There are also some people who are investing in securities market by using market calls and tips as the base to choose the securities, but they are not so much sure about the result of these market calls and tips, they didnt believe that these calls and tips are so much fruitful but as they are not very much aware regarding the technical tools, they have to use market calls and tips. It is the belief of investors that technical analysis is not very easy to understand, but as the securities market is growing day by day so investors are trying to understand these technical tools or we can say that now people are being interested to learn about technical analysis. It is a good indication that people are now interested and excited to know about technical analysis of securities and they want to choose the securities on the basis of technical analysis so all the companies related to securities market like Indiabulls should encourage and motivate their known investors and clients to use technical analysis, they should educate and tell the use of most easy technical tools to them.

SUGGESTION FOR IMPLEMENTATION

1) As I have done my summer internship in equity market and whatever little bit knowledge I had acquired from this market on the basis of that knowledge I can say that investor should prefer technical analysis of shares before investing in share market because technical analysis provide more accurate result 2) The another reason to go with technical analysis is that technical analysis is based on truly scientific research 3) As in the time period of my summer internship there is a great panic in the stock market and from that period I can interpret that at the time of panic people should go with intraday not delivery because there are lots of uncertainty in the market at that time period.

SUMMARY AND CONCLUSION

This securities market is about to grow in future very much with the growth of equity research. There is very high competition in this market, there are many companies which are providing different type of services to their clients and, this market is centre of attraction to new entrepreneur because it is already successful market and it is for sure that it will grow further, and there are many opportunities lying ahead in the way. Indiabulls securities limited is an active and well known participant of this securities market, this is achieving great success by working very hard with dedication. There is very good staff in this organization so it may facilitate its clients in many ways, although there is competition but still it is doing its own work and providing services to their clients up to the best extent. Equity analysis is very important service of indiabulls that it is providing to its clients. It provides the suggestion that which security is good for the purpose of investment. For this project purpose, I have been gone through with a research that has been conducted in jaipur with a sample size of 40 investors and on the basis of this research; I can conclude that most of the people believe that technical analysis can provide more suitable and desirable results to them. People are interested to now about this technical analysis part, for this we just need to aware and encourage them.

REFERENCES AND BIBLIOGRAPHY 1)www.nseindia.com 2)www.wikipedia.com 3)www.google.com 4)www.indiabulls.com 5)www.answers.com 6)www.5paisa.com 7)www.icicidirect.com