Fundamental Analysis of Various Competitors of Stock Market

A
Project Report
On
Fundamental analysis of top competitors of various sectors
in SENSEX
At
PVDS Financial Services.
DECLARATION
I, hereby, declare that the grand project titled, Fundamental analysis of top
competitors of various sectors in SENSEX. is original to the best of my knowledge
and has not been published elsewhere.
This is for the purpose of partial fulfilment of Balaji Institute of International
Business requirements for the award of the title of Post Graduate Diploma in
Management only.
PLACE:
DATE:
ACKNOWLEDGEMENT
I consider it a privilege to express a few words of gratitude and respect to all who
guided and inspired me in successful completion of this project.
I acknowledge my profound indebtedness and extend my deep sense of gratitude
to my guides Ms. Chetna Sharma(Manager PVDS Financial Services) for sharing
their knowledge and experience and providing valuable guidance, profound advice
and encouragement that has led to successful completion of this project.
I pay sincere thanks to Mr. Angad Padegaonkar(Proprietor PVDS Financial
Services) for giving me an opportunity and providing me the necessary facilities to
carry out the project work in their esteemed organization.
I am greatly indebted to my team members for their support and constant
encouragement and support throughout the project.
Lastly I would like to thank Prof. Col. A. Balasubramanian, Dean, BIIB and Dr.
Satish M Inamdar, Director, BIIB, for their technical and moral support required for
realization of this project.
PREFACE
Winter training cum project is the integral part of Management Course. Theoretical
knowledge only provides basic concept about the study. It doesnt guarantee
success in tackling problems. But this training gives practical exposure to the study.
It is from here we learn our flaws before actually starting the work. It adds to
knowledge and better understanding of organization. This project has greatly
helped me in giving shape to my different efforts of understanding the practice of
finance. The sweet and sore experiences are attempts to give me an initial exposure
in the practical field.
Perhaps I had no qualification and idea to present such type of report but I tried to
do my best to prepare it. When I started to write this project I felt, it needs capacity
and experience to do this work than I have. But taking it as a challenge, I decided to
do it. For me presenting this report is like a voyage. It is only the blessings of my
honourable teachers and elders by whom I inspired to complete this project work.
TABLE OF CONTENTS
S.NO.
PARTICULARS
PAGE
NO.
Executive Summary
Company Profile
Objective
11
Research methodology
12
Introduction
13
Overview of Indian stock market

Capital market reforms
Prominent stock exchanges in India
Introduction to fundamental analysis
Concept of intrinsic value
Economic cycle
Updates of economy
30
Company Analysis
37
Findings
88
Interpretations
90
10
Suggestions
91
11
Limitations
92
12
Bibliography
93
EXECUTIVE SUMMARY
This project report on fundamental analysis of top competitors of various
competitors in SENSEX is based on the understanding of fundamental
analysis and stock market.
During the internship program I have keenly observed the stock market
movement and brokers working process, So this helps in understanding how
practically the market works and in this project Ive tried to explain some basic
concepts that most investors take for granted but that are crucial knowledge for
a person just entering into the financial jungle. Not only that this project report
also seeks to educate the would-be investors in the various aspects of share
trading
Under project title firstly I found out 12 companies of SENSEX. Company
selection is based on the market capitalisation. The selected companys
securities are evaluated on the basis of fundamental analysis. Fundamental
analysis is worked on economic analysis, industry analysis and company
analysis, initially the economic trends are observed and then the z score test,
different types of ratios are calculated and earnings per share, book value and
share holding pattern of the companies are found in order to know the
performance of the company.
I might add here that the project highlights the important points as to in which
Midcap companies, an investor should invest in order to get a profitable return,
which can be seen from the targeted price of fundamental and technical
analysis.
I hope the project report shall succeed in satisfying the readers desire for
knowledge of the share market as well as in lending investor a helping hand as
they take your FIRST STEP into the world of investing.
Main purpose of investment is returns and liquidity, share market is less

preferred by investors due to lack of awareness. The major findings of this study
are that people are interested to invest in stock market but they lack knowledge.
CRITICAL SUCCESS FACTORS THAT COMES OUT OF THE

STUDY AS FOLLOWS
Importance of information- timely and accurately.
Responsiveness of the company.
Implementation.
Forecasting.
These all are helpful to increase the successive factors which find out during the
working positions.
The primary approach to study was exploratory research and descriptive
research was also carried out.
COMPANY PROFILE
PVDS Financial Services
Firm started by Mr. Angad Padegaonkar in the year 2011.PVDS Financial
Services is a one stop solution to all investment related queries. PVDS Financial
Services offer its customer stock broking, finance and insurance services.
The mission of the firm is to help the customer in identifying their investment
objective and to give good result in future by giving personalised services to
every client.
The company is aligned with specialised and experienced companies
1. Stock Broking: -
India Infoline
2. Health Plans: -
Star Health
Tata Aig
Bajaj Allianz
3. Life Insurance: -
Tata Aig
Lic
4. General Insurance: -
Tata Aig
Bajaj Allainz
5. Personal Loans: -
Fullerton
6. Auto Loan: -
Industrial Bank
7. Commercial Loan: -
Industrial Bank
10
OBJECTIVE:
PRIME OBJECTIVE:
Objective is to do fundamental analysis of 12 companies of 6 different sectors

of the Indian economy based on BSE.
SUBSIDIARY OBJECTIVES:
To understand the basics of stock market.
To understand how to start investing in stock market
To find out the science of selecting a particular scrip among the various scrip
traded in the stock market
11
Research methodology
TYPE OF RESEARCH
A descriptive research design has been used for the study.
SAMPLE SIZE:
Sampling size will be primarily consisting of the top TWELVE companies
listed in the BSE out of selected SIX sectors
SAMPLING METHOD:
The sampling method will be on the basis of the Fundamental Analysis of the
companies.
DATA SOURCES:
PRIMARY DATA:
1. BSE
2. NSE
SECONDARY DATA:
1. Annual reports of the companies
2. Ratios
3. Library Research
4. Internet
12
INTRODUCTION TO INDIAN STOCK

MARKET
There are 22 stock exchanges in India, the first being the Bombay Stock
Exchange (BSE), which began formal trading in 1875, making it one of the
oldest in Asia. Over the last few years, there has been a rapid change in the
Indian securities market, especially in the secondary market. Advanced
technology and online-based transactions have modernized the stock exchanges.
In terms of the number of companies listed and total market capitalization, the
Indian equity market is considered large relative to the countrys stage of
economic development. The number of listed companies increased from 5,968
in March 1990 to about 10,000 by May 1998 and market capitalization has
grown almost 11 times during the same period.
The debt market, however, is almost nonexistent in India even though there has
been a large volume of Government bonds traded. Banks and financial
institutions have been holding a substantial part of these bonds as statutory
liquidity requirement. The portfolio restrictions on financial institutions
statutory liquidity requirement are still in place. A primary auction market for
Government securities has been created and a primary dealer system was
introduced in 1995. There are six authorized primary dealers. Currently, there
are 31 mutual funds, out of which 21 are in the private sector. Mutual funds
were opened to the private sector in 1992. Earlier, in 1987, banks were allowed
to enter this business, breaking the monopoly of the Unit Trust of India (UTI),
which maintains a dominant position. Before 1992, many factors obstructed the
expansion of equity trading. Fresh capital issues were controlled through the
13
Capital Issues Control Act. Trading practices were not transparent, and there
was a large amount of insider trading. Recognizing the importance of increasing
investor protection, several measures were enacted to improve the fairness of
the capital market. The Securities and Exchange Board of India (SEBI) was
established in 1988.
Despite the rules it set, problems continued to exist, including those relating to
disclosure criteria, lack of broker capital adequacy, and poor regulation of
merchant bankers and underwriters. There have been significant reforms in the
regulation of the securities market since 1992 in conjunction with overall
economic and financial reforms. In 1992, the SEBI Act was enacted giving
SEBI statutory status as an apex regulatory body. And a series of reforms was
introduced to improve investor protection, automation of stock trading,
integration of national markets, and efficiency of market operations. India has
seen a tremendous change in the secondary market for equity. Its equity market
will most likely be comparable with the worlds most advanced secondary
markets within a year or two. The key ingredients that underlie market quality
in Indias equity market are:
Exchanges based on open electronic limit order book;
Nationwide integrated market with a large number of informed traders and
fluency of short or long positions; and
No counterparty risk.
Among the processes that have already started and are soon to be fully
implemented are electronic settlement trade and exchange-traded derivatives.
Before 1995, markets in India used open outcry, a trading process in which
traders shouted and hand signalled from within a pit. One major policy initiated
14
by SEBI from 1993 involved the shift of all exchanges to screen-based trading,
motivated primarily by the need for greater transparency. The first exchange to
be based on an open electronic limit order book was the National Stock
Exchange (NSE), which started trading debt instruments in June 1994 and
equity in November 1994. In March 1995, BSE shifted from open outcry to a
limit order book market. Currently, 17 of Indias stock exchanges have adopted
open electronic limit order.
CAPITAL MARKET REFORMS AND DEVELOPMENTS

Over the last few years, SEBI has announced several far-reaching reforms to
promote the capital market and protect investor interests. Reforms in the
secondary market have focused on three main areas: structure and functioning
of stock exchanges, automation of trading and post trade systems, and the
introduction of surveillance and monitoring systems. Computerized online
trading of securities, and setting up of clearing houses or settlement guarantee
funds were made compulsory for stock exchanges. Stock exchanges were
permitted to expand their trading to locations outside their jurisdiction through
computer terminals. Thus, major stock exchanges in India have started locating
computer terminals in far-flung areas, while smaller regional exchanges are
planning to consolidate by using centralized trading under a federated structure.
Online trading systems have been introduced in almost all stock exchanges.
Trading is much more transparent and quicker than in the past. Until the early
1990s, the trading and settlement infrastructure of the Indian capital market was
poor. Trading on all stock exchanges was through open outcry, settlement
systems were paper-based, and market intermediaries were largely unregulated.
15
The regulatory structure was fragmented and there was neither comprehensive
registration nor an apex body of regulation of the securities market. Stock
exchanges were run as brokers clubs as their management was largely
composed of brokers. There was no prohibition on insider trading, or fraudulent
and unfair trade practices. Since 1992, there has been intensified market reform,
resulting in a big improvement in securities trading, especially in the secondary
market for equity. Most stock exchanges have introduced online trading and set
up clearing houses/corporations. A depository has become operational for scrip
less trading and the regulatory structure has been overhauled with most of the
powers for regulating the capital market vested with SEBI. The Indian capital
market has experienced a process of structural transformation with operations
conducted to standards equivalent to those in the developed markets. It was
opened up for investment by foreign institutional investors (FIIs) in 1992 and
Indian companies were allowed to raise resources abroad through Global
Depository Receipts (GDRs) and Foreign Currency Convertible Bonds
(FCCBs). The primary and secondary segments of the capital market expanded
rapidly, with greater institutionalization and wider participation of individual
investors accompanying this growth. However, many problems, including lack
of confidence in stock investments, institutional overlaps, and other governance
issues, remain as obstacles to the improvement of Indian capital market
efficiency.
INTRODUCTION TO STOCK MARKET

Equity markets: The Indian Equity Market is more popularly known as the
Indian Stock Market. The Indian equity market has become the third biggest
after China and Hong Kong in the Asian region. According to the latest report
by ADB, it has a market capitalization of nearly $600 billion. As of March
16
2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh crore)
which is one-tenth of the combined valuation of the Asia region. The market
was slow since early 2007 and continued till the first quarter of 2009.
A stock exchange has been defined by the Securities Contract (Regulation)
Act, 1956 AS AN ORGANIZATION, ASSOCIATION OR BODY OF
INDIVIDUALS ESTABLISHED FOR REGULATING, AND
CONTROLLING OF SECURITIES.
PROMINENT STOCK EXCHANGES IN INDIA

When an investor starts investing in the stocks or the commodity market he has
some prominent exchanges to invest in. Few important ones are as follows:
1. BSE (Bombay Stock Exchange): BSE is the oldest stock exchange in Asia
and has the greatest number of listed companies in the world, with 4700 listed
as of August 2007. Here the trading in stocks takes place. It is located at Dalal
Street, Mumbai, India. On 31 December 2007, the equity market capitalization
of the companies listed on the BSE was US$ 1.79 trillion, making it the largest
stock exchange in South Asia and the 12th largest in the world. BSEs key
index is sensex.
2. NSE (National Stock Exchange): It is the largest stock exchange in India in

terms of daily turnover and number of trades, for both equities and derivative
trading. NSE has a market capitalization of around Rs 47, 01,923 crore (7
17
August 2009) and is expected to become the biggest stock exchange in India in
terms of market capitalization by 2009 end. NSEs key index is Nifty.
WHAT ARE STOCKS?

Plain and simple, stock is a share in the ownership of a company. Stock
represents a claim on the company's assets and earnings. As you acquire more
stock, your ownership stake in the company becomes greater. Whether you say
shares, equity, or stock, it all means the same thing. When you buy the shares of
a company you become one of the many owners of that much portion of a
company. In other words you own a part of the company.
HOW TO TRADE IN STOCKS?

An investor can open the required accounts (Demat and Trading) with a
registered broker with NSE or BSE (whichever exchange he want to deal with)
and start purchasing and selling the stock of his wish.
INTRODUCTION TO FUNDAMENTAL ANALYSIS

Fundamental analysis is the cornerstone of investing. In fact, some would say
that you aren't really investing if you aren't performing fundamental analysis.
Because the subject is so broad, however, it's tough to know where to start.
There are an endless number of investment strategies that are very different
from each other, yet almost all use the fundamentals. The goal of this tutorial is
to provide a foundation for understanding fundamental analysis. It's geared
primarily at new investors who don't know a balance sheet from an income
statement. While you may not be a "stock-picker extraordinaire" by the end of
this tutorial, you will have a much more solid grasp of the language and
18
concepts behind security analysis and be able to use this to further your
knowledge in other areas without feeling totally lost. The biggest part of
fundamental analysis involves delving into the financial statements. Also known
as quantitative analysis, this involves looking at revenue, expenses, assets,
liabilities and all the other financial aspects of a company. Fundamental analysts
look at this information to gain insight on a company's future performance. A
good part of this tutorial will be spent learning about the balance sheet, income
statement, cash flow statement and how they all fit together. But there is more
than just number crunching when it comes to analyzing a company. This is
where qualitative analysis comes in - the breakdown of all the intangible,
difficult-to-measure aspects of a company.
WHAT IS FUNDAMENTAL ANALYSIS?

In this section we are going to review the basics of fundamental analysis,
examine how it can be broken down into quantitative and qualitative factors,
introduce the subject of intrinsic value and conclude with some of the downfalls
of using this technique. The Very Basics When talking about stocks,
fundamental analysis is a technique that attempts to determine a securitys value
by focusing on underlying factors that affect a company's actual business and its
future prospects. On a broader scope, you can perform fundamental analysis on
industries or the economy as a whole. The term simply refers to the analysis of
the economic well-being of a financial entity as opposed to only its price
movements. Fundamental analysis serves to answer questions, such as:
Is the companys revenue growing?
Is it actually making a profit?
Is it in a strong-enough position to beat out its competitors in the future?
Is it able to repay its debts?
19
Is management trying to "cook the books"?
Of course, these are very involved questions, and there are literally hundreds of
others you might have about a company. It all really boils down to one question:
Is the companys stock a good investment? Think of fundamental analysis as a
toolbox to help you answer this question. Note: The term fundamental analysis
is used most often in the context of stocks, but you can perform fundamental
analysis on any security, from a bond to a derivative. As long as you look at the
economic fundamentals, you are doing fundamental analysis. For the purpose of
this tutorial, fundamental analysis always is referred to in the context of stocks.
FUNDAMENTALS: QUANTITATIVE AND QUALITATIVE

You could define fundamental analysis as researching the fundamentals, but
that doesnt tell you a whole lot unless you know what fundamentals are. As we
mentioned in the introduction, the big problem with defining fundamentals is
that it can include anything related to the economic well-being of a company.
Obvious items include things like revenue and profit, but fundamentals also
include everything from a companys market share to the quality of its
management. The various fundamental factors can be grouped into two
categories: quantitative and qualitative.
The financial meaning of these terms isnt all that different from their regular
definitions. Here is how the MSN Encarta dictionary defines the terms:
Quantitative capable of being measured or expressed in numerical terms.
Qualitative related to or based on the quality or character of something, often
as opposed to its size or quantity.
20
In
our
context,
quantitative
fundamentals
are
numeric,
measurable
characteristics about a business. Its easy to see how the biggest source of
quantitative data is the financial statements. You can measure revenue, profit,
assets and more with great precision. Turning to qualitative fundamentals, these
are the less tangible factors surrounding a business - things such as the quality
of a companys board members and key executives, its brand-name recognition,
patents or proprietary technology.
QUANTITATIVE MEETS QUALITATIVE

Neither qualitative nor quantitative analysis is inherently better than the other.
Instead, many analysts consider qualitative factors in conjunction with the hard,
quantitative factors. Take the Coca-Cola Company, for example. When
examining its stock, an analyst might look at the stocks annual dividend
payout, earnings per share, P/E ratio and many other quantitative factors.
However, no analysis of Coca-Cola would be complete without taking into
account its brand recognition. Anybody can start a company that sells sugar and
water, but few companies on earth are recognized by billions of people. Its
tough to put your finger on exactly what the Coke brand is worth, but you can
be sure that its an essential ingredient contributing to the companys ongoing
success.
THE CONCEPT OF INTRINSIC VALUE

Before we get any further, we have to address the subject of intrinsic value. One
of the primary assumptions of fundamental analysis is that the price on the stock
market does not fully reflect a stocks real value. After all, why would you be
doing price analysis if the stock market were always correct? In financial
21
jargon, this true value is known as the intrinsic value. For example, lets say that
a companys stock was trading at Rs.20. After doing extensive homework on
the company, you determine that it really is worth Rs.25. In other words, you
determine the intrinsic value of the firm to be Rs.25. This is clearly relevant
because an investor wants to buy stocks that are trading at prices significantly
below their estimated intrinsic value. This leads us to one of the second major
assumptions of fundamental analysis: in the long run, the stock market will
reflect the fundamentals. There is no point in buying a stock based on intrinsic
value if the price never reflected that value. Nobody knows how long the long
run really is. It could be days or years.
This is what fundamental analysis is all about. By focusing on a particular
business, an investor can estimate the intrinsic value of a firm and thus find
opportunities where he or she can buy at a discount. If all goes well, the
investment will pay off over time as the market catches up to the fundamentals.
The big unknowns are:
1) You dont know if your estimate of intrinsic value is correct; and
2) You dont know how long it will take for the intrinsic value to be reflected in
the marketplace.
CRITICISMS OF FUNDAMENTAL ANALYSIS

The biggest criticisms of fundamental analysis come primarily from two groups:
proponents of technical analysis and believers of the efficient market
hypothesis. Technical analysis is the other major form of security analysis.
Were not going to get into too much detail on the subject.
Put simply, technical analysts base their investments (or, more precisely, their
trades) solely on the price and volume movements of securities. Using charts
and a number of other tools, they trade on momentum, not caring about the
22
fundamentals. While it is possible to use both techniques in combination, one of

the basic tenets of technical analysis is that the market discounts everything.
Accordingly, all news about a company already is priced into a stock, and
therefore a stocks price movements give more insight than the underlying
fundamental factors of the business itself. Followers of the efficient market
hypothesis, however, are usually in disagreement with both fundamental and
technical analysts. The efficient market hypothesis contends that it is essentially
impossible to produce market-beating returns in the long run, through either
fundamental or technical analysis. The rationale for this argument is that, since
the market efficiently prices all stocks on an ongoing basis, any opportunities
for excess returns derived from fundamental (or technical) analysis would be
almost immediately whittled away by the markets many participants, making it
impossible for anyone to meaningfully outperform the market over the long
term.
QUALITATIVE FACTORS - THE COMPANY

Before diving into a company's financial statements, we're going to take a look
at some of the qualitative aspects of a company. Fundamental analysis seeks to
determine the intrinsic value of a company's stock. But since qualitative factors,
by definition, represent aspects of a company's business that are difficult or
impossible to quantify, incorporating that kind of information into a pricing
evaluation can be quite difficult. On the flip side, as we've demonstrated, you
can't ignore the less tangible characteristics of a company.
In this section we are going to highlight some of the company-specific

qualitative factors that you should be aware of.
23
1 BUSINESS MODEL
You should understand the business model of any company you invest in. The
"Oracle of Omaha", Warren Buffett, rarely invests in tech stocks because most
of the time he doesn't understand them. This is not to say the technology sector
is bad, but it's not Buffett's area of expertise; he doesn't feel comfortable
investing in this area. Similarly, unless you understand a company's business
model, you don't know what the drivers are for future growth, and you leave
yourself vulnerable to being blindsided like shareholders of Boston Chicken
were.
2 COMPETITIVE ADVANTAGES
Another business consideration for investors is competitive advantage. A
company's long-term success is driven largely by its ability to maintain a
competitive advantage - and keep it. Powerful competitive advantages, such as
Coca Cola's brand name and Microsoft's domination of the personal computer
operating system, create a moat around a business allowing it to keep
competitors at bay and enjoy growth and profits. When a company can achieve
competitive advantage, its shareholders can be well rewarded for decades.
3 MANAGEMENT
Just as an army needs a general to lead it to victory, a company relies upon
management to steer it towards financial success. Some believe that
management is the most important aspect for investing in a company. It makes
sense - even the best business model is doomed if the leaders of the company
fail to properly execute the plan. So how does an average investor go about
evaluating the management of a company? This is one of the areas in which
individuals are truly at a disadvantage compared to professional investors. You
24
can't set up a meeting with management if you want to invest a few thousand
dollars. On the other hand, if you are a fund manager interested in investing
millions of dollars, there is a good chance you can schedule a face-to-face
meeting with the upper brass of the firm. Every public company has a corporate
information section on its website. Usually there will be a quick biography on
each executive with their employment history, educational background and any
applicable achievements. Don't expect to find anything useful here. Let's be
honest: We're looking for dirt, and no company is going to put negative
information on its corporate website.
4 CORPORATE GOVERNANCE
Corporate governance describes the policies in place within an organization
denoting the relationships and responsibilities between management, directors
and stakeholders. These policies are defined and determined in the company
charter and its bylaws, along with corporate laws and regulations. The purpose
of corporate governance policies is to ensure that proper checks and balances
are in place, making it more difficult for anyone to conduct unethical and illegal
activities.
QUALITATIVE FACTORS - THE INDUSTRY

Each industry has differences in terms of its customer base, market share among
firms, industry-wide growth, competition, regulation and business cycles.
Learning about how the industry works will give an investor a deeper
understanding of a company's financial health.
25
1 CUSTOMER
Some companies serve only a handful of customers, while others serve millions.
In general, it's a red flag (a negative) if a business relies on a small number of
customers for a large portion of its sales because the loss of each customer
could dramatically affect revenues. For example, think of a military supplier
who has 100% of its sales with the U.S. government. One change in government
policy could potentially wipe out all of its sales. For this reason, companies will
always disclose in their 10-K if any one customer accounts for a majority of
revenues.
2 MARKET SHARE
Understanding a company's present market share can tell volumes about the
company's business. The fact that a company possesses an 85% market share
tells you that it is the largest player in its market by far. Furthermore, this could
also suggest that the company possesses some sort of "economic moat," in other
words, a competitive barrier serving to protect its current and future earnings,
along with its market share. Market share is important because of economies of
scale. When the firm is bigger than the rest of its rivals, it is in a better position
to absorb the high fixed costs of a capital-intensive industry.
3 INDUSTRY GROWTHS
One way of examining a company's growth potential is to first examine whether
the amount of customers in the overall market will grow. This is crucial because
without new customers, a company has to steal market share in order to grow.
In some markets, there is zero or negative growth, a factor demanding careful
consideration. For example, a manufacturing company dedicated solely to
creating audio compact cassettes might have been very successful in the '70s,
26
'80s and early '90s. However, that same company would probably have a rough
time now due to the advent of newer technologies, such as CDs and MP3s. The
current market for audio compact cassettes is only a fraction of what it was
during the peak of its popularity.
4 COMPETITIONS
Simply looking at the number of competitors goes a long way in understanding
the competitive landscape for a company. Industries that have limited barriers to
entry and a large number of competing firms create a difficult operating
environment for firms. One of the biggest risks within a highly competitive
industry is pricing power. This refers to the ability of a supplier to increase
prices and pass those costs on to customers. Companies operating in industries
with few alternatives have the ability to pass on costs to their customers. A great
example of this is Wal-Mart. They are so dominant in the retailing business, that
Wal-Mart practically sets the price for any of the suppliers wanting to do
business with them. If you want to sell to Wal-Mart, you have little, if any,
pricing power.
5 REGULATIONS
Certain industries are heavily regulated due to the importance or severity of the
industry's products and/or services. As important as some of these regulations
are to the public, they can drastically affect the attractiveness of a company for
investment purposes. In industries where one or two companies represent the
entire industry for a region (such as utility companies), governments usually
specify how much profit each company can make. In these instances, while
there is the potential for sizable profits, they are limited due to regulation.
27
ECONOMIC CYCLE
Countries go through the business or economic cycle and the stage of the cycle
at which a country is in has a direct impact both on industry and individual
companies. It affects investment decisions, employment, demand and the
profitability of companies.
The four stages of an economic cycle are:

Depression
Recovery
Boom
Recession
1 DEPRESSION
At the time of depression, demand is low and falling. Inflation rate is high and
so are interest rates in the market. Companies, crippled by high borrowing and
falling sales, are forced to curtail production, close down plants built at times of
higher demand, and let workers go. The whole economy gets ruined during this
period. All the well established companies turns from profitable trend to the
loss making companies and the companies in the developing stage goes into the
liquidation.
2 RECOVERY
During this phase, the economy begins to recover. Investment begins a new and
the demand grows. Companies begin to post profits. Conspicuous spending
begins once again. Once the recovery stage sets in fully, profits begin to grow at
a higher proportionate rate. More and more new companies are floated to meet
28
the increasing demand in the economy. Companies which were well established
and were earning losses starts making profits again and the economy starts
regaining its position. If this is the case in some particular industry than many
new companies are also attracted towards this industry and the economy starts
growing and this stage and achieves the targeted growth slowly and gradually.
3 BOOM
During this phase of economy the demand of the stock reaches at an all time
high. Investment is also high. Interest rates are low. There is a great demand of
the stock in the market. But, gradually as time passes, the company tries to
increase the supply o the stock in the market. So, when supply begins to exceed
the demand prices that had been rising begin to stabilize and even fall. Slowly
and gradually the market stabilizes and the boom phase matures and prices also
get stabilized with the changing situations of the market.
RECESSION
In the recession phase the economy slowly begins to downturn. Demand starts
falling. Interest rates and inflation rate is too high. Companies start finding it
difficult to sell their goods. The overall industry suffers a lot during this phase
of the economy. The recession is due to various reasons. No particular reason
can be mentioned as such. The well established companies also have to suffer a
lot due to recession period. The market price of all the goods of almost all the
industries falls to a great extent.
29
Updates of economy
Indian Economy
Index of Industrial Production
IIP 2010
The Quick Estimates of Index of Industrial Production (IIP) has base year 199394 for the month of April 2010. The revised annual growth for the period AprilMarch 2009-10 stands at 10.4% over the corresponding period of the pervious
year. The Indices of Industrial Production for the Mining, Manufacturing and
Electricity sectors for the month of April 2010 stand at 197.0, 341.5, and 246.9
respectively, with the corresponding growth rates of 11.4%, 19.4% and 6.0% as
compared to April 2009.
As per Use-based classification, the Sectoral growth rates in April 2010 over
April 2009 are 8.8% in Basic goods, 72.8% in Capital goods and 10.8% in
Intermediate goods. The Consumer durables and Consumer non-durables have
recorded growth of 37.0% and 6.6% respectively, with the overall growth in
Consumer goods being 14.5%.
IIP 2011
In terms of the sectoral classification, IIP growth in August 2011 was led by a
healthy 9.5% growth of electricity generation, a sharp improvement as
compared to the 1.0% growth recorded in August 2010. The manufacturing subsector expanded by 4.5% in August 2011, similar to the 4.7% growth recorded
30
in August 2010. While the pace of manufacturing growth in August 2011 was
sluggish, it represents an improvement relative to the 3.2% growth in July 2011.
Moreover, the combined weight of the sub-sectors of manufacturing that
underwent a contraction declined to 23.2% in August 2011 from 26.9% in July
2011. IIP growth in August 2011 was dampened by a 3.4% de-growth of the
mining & quarrying sub-sector as compared to the 5.9% expansion recorded in
August 2010; mining activity was affected by the heavy monsoon rainfall in
August 2011 as well as various regulatory issues that have affected the sector in
the recent months
Industrial output decelerates sharply in Jul11: Indias Index of Industrial
Production (IIP) growth declined to a 20-month low of 3.3% for the
month of July11 primarily because of poor performance of capital goods
and manufacturing sector. Consequently, cumulative IIP growth during
Apr-Jul11 stood at 5.8% against 9.7% of the corresponding period a year
ago.
Manufacturing sector, with the highest weight in IIP, witnessed
significant decline in growth to a 20-month low of 2.3% in J ul11 from
10.3% a month ago and 10.8% a year ago. Mining sector grew at 2.8%
when compared with -1.0% of the previous month and 8.7% in the same
month a year ago. On the other hand, Electricity witnessed robust growth
of 13.1% in Jul11 as against 7.9% of the previous month and 3.7% in the
same month of previous year.
Capital goods under performed with 15.2% fall in Jul11, the steepest
after 23 months. In fact, it is the only sector posted a double digit
negative growth in Jul11. Capital goods production continued to be
volatile compared to 38.2%
31
Growth a month ago and 40.7% a year ago. Cumulative growth during
AprJul11 stood at 7.6% against 23.1% in the respective months of 2010.
Consumer goods, however, recovered to accelerate significantly to 6.2%
in Jul11 from 2.3% in Jun11 and 5.8% J ul10.
Consumer durables registered healthy growth of 8.6% in J ul11 against
1.5% in Jun11, but remained lower than 14.8% observed in Jul10. The
No n-durables growth also improved to 4.1% from 3.0% of the previous
month and from -0.9% in the same period of previous year.
Basic goods growth improved significantly to 10.1% in Jul11 from
7.5% in Jun11 and 4.4% of J ul10. On the other hand, Intermediate
goods went into negative zone and stood at -1.1% in J ul11 from 0.6%
a month before and significantly lower than 8.5% a year before.IIP
growth dips to 20-month low of3.3% in Jul11
Growth contributors at two-digit level: 15 out of the 22 two-digit
industries posted positive growth in July 2011. Office, accounting &
computing machinery posted the highest growth of 38.3%, followed by
Basic metals with 18.9%, other transport equipment with 17.5% and Food
products and beverages with 14.4% in Jul11.
In contrast to this,
Electrical machinery & apparatus n.e.c. posted 46% reduction in output

followed by Medical, precision & optical instruments, watches and clocks
with 12.5% fall, Tobacco products with 9% fall and Textiles with 5.6%
reduction in Jul11.
32
Inflation Rate in India

The inflation rate in India was last reported to be 9.72 percent in September of
2011. Since the year of 1969 till the year of 2010, the average inflation rate in
India was 7.99 percent. The inflation rate of the country reached an historical
high of 34.68 percent during the month of September in the year of 1974. The
lowest was recorded in the month of May in the year of 1976. It was reported to
be as low as -11.31. The inflation rate in general refers to the rise in the prices
measured against the purchase power at a standard level. The best known
measure of Inflation is the CPI which measures the consumer prices. The GDP
deflator
also
measures
inflation
in
33
the
total
domestic
economy.
India Inflation Rate Chart (in %)

Year Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
2011
9.35
9.54
9.68
9.70
9.56
9.44
9.22
9.78
9.72
2010
16.22 14.86 14.86 13.33 13.91 13.73 11.25 9.88
9.82
2009
10.45 9.63
8.03
8.70
8.63
9.29
11.89 11.72 11.64 11.49 13.51 14.97
2008
5.51
7.87
7.81
7.75
7.69
8.33
5.47
9.02
9.77
Oct
Nov
Dec
9.70
8.33
9.47
10.45 10.45 9.70
Inflation in India in Future

It is expected that the emerging markets, including India, will perform well
withstanding challenges like higher inflation as well as the rising prices of the
oils. It is assumed that the price of the commodity will continue to maintain the
upward march since the developing countries are maintaining a very strong
growth momentum motivated by the by robust consumption. The emerging
markets will continue to do well. The strong growth momentum is accelerating
the growth. Indian economy is expected to grow at 8 percent in this fiscal year
2011-12. The developed markets are growing at the rate of 1.6 percent. The
emerging markets are experiencing the bull nature. The bear nature is shortlasting in these economies. This bull phase is going through a 20 year high. The
growing price of oil in the country is the factor behind the growth of the price of
all other commodities in India.
34
MONEY SUPPLY
MUMBAI, July 15 (Reuters) - India's M3 money supply rose an annual 17.1
percent as on July 1, unchanged from June 17, the central bank said on Friday.
M3 MONEY SUPPLY GROWTH
(versus year ago, in pct)
July 1, 2011
17.1
June 17, 2011

17.1
July 2, 2010
15.3
Money supply was 68,122.86 billion rupees as of July 1, compared with

66,860.02 billion rupees on June 17 and 57,821.41 billion rupees on July 2,
2010, the central bank said in its weekly statistical supplement.
EXCHANGE RATE
The rupee slightly depreciated against the dollar in the month of October. As on
14 October 2011, 1 dollar = 48.81 rupees
Foreign Exchange Reserves

The FOREX reserves accumulated in October 2011 was USD 312231 million.
Last year the in the same month the reserves were USD 294158 million.
35
Foreign exchange reserve as on October 2011

. Foreign Exchange Reserves
Variation over
As on Oct. 7, 2011
Item
` Crore
Total Reserves
(a) Foreign Currency
Assets +
(b) Gold $
(c) SDRs @
(d) Reserve Position in
the IMF**
US$
Mn.
Week
` Crore
3
End-March 2011
US$
` Crore
Mn.
4
US$
Mn.
6
End-December
Year
2010
` Crore
US$
Mn.
` Crore
US$
Mn.
10
15,33,698
3,12,231
9,617
749
1,72,684
7,413
2,01,344
14,897
2,19,863
16,439
13,58,533
2,76,462
9,537
763*
1,33,650
2,132
1,58,456
8,648
1,68,704
8,362
1,40,266
28,667
37,694
5,695
39,580
6,197
48,109
8,151
22,087
4,495
51
1,686
74
666
583
851
673
12,812
2,607
29
346
340
3,974
635
3,901
599
+ Excludes `1,867 crore/US$ 380 million invested in foreign currency denominated bonds issued by IIFC (UK).
* Foreign currency assets expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies (such as Euro,
Sterling, Yen) held in reserves. For details, please refer to the Current Statistics section of the RBI Bulletin.
** Reserve Position in the International Monetary Fund (IMF), i.e., Reserve Tranche Position (RTP) which was shown as a memo item from
May 23, 2003 to March 26, 2004 has been included in the reserves from the week ended April 2, 2004 in keeping with the international best
practice.
@ Includes SDR 3,082.5 million (equivalent to US$ 4,883 million) allocated under general allocation and SDR 214.6 million (equivalent to
US$ 340 million) allocated under special allocation by IMF done on August 28, 2009 and September 9, 2009, respectively.
$ Includes `31,463 crore (US$ 6,699 million) reflecting the purchase of 200 metric tonnes of gold from IMF on November 3, 2009.
36
Company analysis
1.HERO MOTO CORP

SCRIP ID :
HEROMOTOCO
SCRIP CODE:
500182
GROUP:
INDEX:
SENSEX
INDUSTRY:
2/3 WHEELERS
FACE VALUE:
HERO MOTO CORP P&L

Profit & Loss account of Hero Motocorp
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sales Turnover
20,662.39
16,856.43
13,553.23
12,048.30
11,553.47
Excise Duty
1,420.30
1,016.85
1,227.85
1,703.29
1,647.52
Net Sales
19,242.09
15,839.58
12,325.38
10,345.01
9,905.95
Other Income
345.03
290.69
222.14
216.3
197.68
Stock Adjustments
27
-11.54
22.09
-14.14
3.2
Total Income
19,614.12
16,118.73
12,569.61
10,547.17
10,106.83
Raw Materials
14,222.94
10,822.99
8,842.14
7,465.36
7,255.66
Power & Fuel Cost
100.47
81.05
73.7
56.55
52.45
Employee Cost
618.95
560.32
448.65
383.45
353.81
Other Manufacturing Expenses
41.82
454.36
354.08
304.11
280.17
Selling and Admin Expenses
885.03
669.98
563.27
558.99
Miscellaneous Expenses
1,824.65
280.64
205.9
190.36
206.11
Preoperative Exp Capitalised
Total Expenses
16,808.83
13,084.39
10,594.45
8,963.10
8,707.19
2,460.26
2,743.65
1,753.02
1,367.77
1,201.96
Income
Expenditure
37
Operating Profit
PBDIT
2,805.29
3,034.34
1,975.16
1,584.07
1,399.64
Interest
-1.85
11.14
13.04
13.47
13.76
PBDT
2,807.14
3,023.20
1,962.12
1,570.60
1,385.88
Depreciation
402.38
191.47
180.66
160.32
139.78
Other Written Off
Profit Before Tax
2,404.76
2,831.73
1,781.46
1,410.28
1,246.10
Extra-ordinary items
PBT (Post Extra-ord Items)
2,404.76
2,831.73
1,781.46
1,410.28
1,246.10
Tax
476.86
599.9
499.7
442.4
388.21
Reported Net Profit
1,927.90
2,231.83
1,281.76
967.88
857.89
Total Value Addition
2,585.89
2,261.40
1,752.31
1,497.74
1,451.53
Preference Dividend
Equity Dividend
2,096.72
2,196.56
399.38
379.41
339.47
Corporate Dividend Tax
340.14
371
67.87
64.48
57.69
Shares in issue (lakhs)
1,996.88
1,996.88
1,996.88
1,996.88
1,996.88
Earning Per Share (Rs)
96.55
111.77
64.19
48.47
42.96
Equity Dividend (%)
5,250.00
5,500.00
1,000.00
950
850
Book Value (Rs)
148.03
173.52
190.33
149.55
123.7
Per share data (annualised)
HERO MOTO CORP

Balance Sheet of Hero Motocorp
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
39.94
39.94
39.94
39.94
39.94
Equity Share Capital
39.94
39.94
39.94
39.94
39.94
Share Application Money
Preference Share Capital
Reserves
2,916.12
3,425.08
3,760.81
2,946.30
2,430.12
Revaluation Reserves
Networth
2,956.06
3,465.02
3,800.75
2,986.24
2,470.06
Secured Loans
1,458.45
Unsecured Loans
32.71
66.03
78.49
132
165.17
Sources Of Funds
38
Total Debt
1,491.16
66.03
78.49
132
165.17
Total Liabilities
4,447.22
3,531.05
3,879.24
3,118.24
2,635.23
Gross Block
5,538.46
2,750.98
2,516.27
1,938.78
1,800.63
Less: Accum. Depreciation
1,458.18
1,092.20
942.56
782.52
635.1
Net Block
4,080.28
1,658.78
1,573.71
1,156.26
1,165.53
Capital Work in Progress
125.14
48.14
120.54
408.49
189.92
Investments
5,128.75
3,925.71
3,368.75
2,566.82
1,973.87
Inventories
524.93
436.4
326.83
317.1
275.58
Sundry Debtors
130.59
108.39
149.94
297.44
335.25
Cash and Bank Balance
71.52
1,863.48
217.49
130.58
35.26
Total Current Assets
727.04
2,408.27
694.26
745.12
646.09
Loans and Advances
783.48
438.46
325.8
196.37
268.04
Fixed Deposits
43.73
2.08
0.51
0.52
Total CA, Loans & Advances
1,510.52
2,890.46
1,022.14
942
914.65
Deffered Credit
Current Liabilities
5,316.40
3,965.69
1,678.93
1,455.57
1,171.50
Provisions
1,081.07
1,026.35
526.97
499.76
437.24
Total CL & Provisions
6,397.47
4,992.04
2,205.90
1,955.33
1,608.74
Net Current Assets
-4,886.95
-2,101.58
-1,183.76
-1,013.33
-694.09
4,447.22
3,531.05
3,879.24
3,118.24
2,635.23
Application Of Funds
Total Assets
2. BAJAJ AUTO LIMITED

SCRIP ID :
BAJAJAUT
SCRIP CODE:
532977
GROUP:
INDEX:
SENSEX
INDUSTRY:
2/3 WHEELERS
FACE VALUE:
39
BAJAJ AUTO P&L

Profit & Loss account of Bajaj Auto
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sales Turnover
17,386.51
12,420.95
9,310.24
9,856.66
10,741.91
Excise Duty
934.71
607.7
610.07
1,029.51
1,321.67
Net Sales
16,451.80
11,813.25
8,700.17
8,827.15
9,420.24
Other Income
1,176.00
22.5
-6.2
170.27
567.16
Stock Adjustments
82.79
47.6
-24.49
67.85
-0.9
Total Income
17,710.59
11,883.35
8,669.48
9,065.27
9,986.50
Raw Materials
11,965.30
8,187.11
6,502.10
6,760.04
6,969.50
Power & Fuel Cost
86.61
70.35
60.89
69.2
79.34
Employee Cost
494.33
411.76
366.67
350.09
310.07
61.77
57.54
57.08
53.72
74.53
450.18
407.61
381.73
390.15
457.17
237.76
221.94
225.56
209.63
230.89
-16.66
-15.67
-14.42
-23.04
-32.05
13,279.29
9,340.64
7,579.61
7,809.79
8,089.45
Operating Profit
3,255.30
2,520.21
1,096.07
1,085.21
1,329.89
PBDIT
4,431.30
2,542.71
1,089.87
1,255.48
1,897.05
Interest
1.69
5.98
21.01
5.16
5.34
PBDT
4,429.61
2,536.73
1,068.86
1,250.32
1,891.71
Depreciation
122.84
136.45
129.79
173.96
190.26
Other Written Off
1.12
0.39
Profit Before Tax
4,306.77
2,400.28
939.07
1,075.24
1,701.06
46.77
26.87
18.72
59.32
26.6
PBT (Post Extra-ordinary Items)
4,353.54
2,427.15
957.79
1,134.56
1,727.66
Tax
1,011.02
710.12
301.61
378.78
490.09
Reported Net Profit
3,339.73
1,702.73
656.48
755.95
1,237.96
1,313.99
1,153.53
1,077.51
1,049.75
1,119.95
Preference Dividend
Equity Dividend
1,157.47
578.73
318.3
289.37
404.73
187.77
96.12
54.1
49.18
68.78
2,893.67
1,446.84
1,446.84
1,446.84
1,011.84
115.42
117.69
45.37
52.25
122.35
Equity Dividend (%)
400
400
220
200
400
Book Value (Rs)
169.69
202.4
129.23
109.73
546.96
Expenditure
Total Expenses
40
BAJAJ AUTO LIMITED

Balance Sheet of Bajaj Auto
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
289.37
144.68
144.68
144.68
101.18
289.37
144.68
144.68
144.68
101.18
Reserves
4,620.85
2,783.66
1,725.01
1,442.91
5,433.14
Networth
4,910.22
2,928.34
1,869.69
1,587.59
5,534.32
Secured Loans
23.53
12.98
6.95
22.46
Unsecured Loans
301.62
1,325.60
1,570.00
1,327.39
1,602.97
Total Debt
325.15
1,338.58
1,570.00
1,334.34
1,625.43
Total Liabilities
5,235.37
4,266.92
3,439.69
2,921.93
7,159.75
Gross Block
3,395.16
3,379.25
3,350.20
2,994.68
3,178.54
1,912.45
1,899.66
1,807.91
1,726.07
1,904.94
Net Block
1,482.71
1,479.59
1,542.29
1,268.61
1,273.60
149.34
120.84
106.48
34.74
107.62
Investments
4,795.20
4,021.52
1,808.52
1,857.14
6,447.53
Inventories
547.28
446.21
338.84
349.61
309.7
Sundry Debtors
362.76
272.84
358.65
275.31
529.83
155.45
100.2
135.68
54.74
62.16
1,065.49
819.25
833.17
679.66
901.69
Loans and Advances
3,891.66
2,291.29
1,567.09
1,099.68
2,925.24
Fixed Deposits
401.04
1.21
1.19
1.33
21.32
5,358.19
3,111.75
2,401.45
1,780.67
3,848.25
Deffered Credit
Current Liabilities
2,624.35
2,218.06
1,378.20
1,185.19
1,683.46
Provisions
3,925.72
2,248.72
1,224.15
834.04
2,833.79
6,550.07
4,466.78
2,602.35
2,019.23
4,517.25
Net Current Assets
-1,191.88
-1,355.03
-200.9
-238.56
-669
183.3
5,235.37
4,266.92
3,439.69
2,921.93
7,159.75
Sources Of Funds
Total Assets
41
3.CIPLA
SCRIP ID :
CIPLA
SCRIP CODE:
500087
GROUP:
INDEX:
SENSEX
INDUSTRY:
PHARMACEUTICALS
FACE VALUE:
CIPLA P&L
Profit & Loss account of Hero Motocorp
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sales Turnover
20,662.39
16,856.43
13,553.23
12,048.30
11,553.47
Excise Duty
1,420.30
1,016.85
1,227.85
1,703.29
1,647.52
Net Sales
19,242.09
15,839.58
12,325.38
10,345.01
9,905.95
Other Income
345.03
290.69
222.14
216.3
197.68
Stock Adjustments
27
-11.54
22.09
-14.14
3.2
Total Income
19,614.12
16,118.73
12,569.61
10,547.17
10,106.83
Raw Materials
14,222.94
10,822.99
8,842.14
7,465.36
7,255.66
Power & Fuel Cost
100.47
81.05
73.7
56.55
52.45
Employee Cost
618.95
560.32
448.65
383.45
353.81
41.82
454.36
354.08
304.11
280.17
885.03
669.98
563.27
558.99
1,824.65
280.64
205.9
190.36
206.11
Total Expenses
16,808.83
13,084.39
10,594.45
8,963.10
8,707.19
2,460.26
2,743.65
1,753.02
1,367.77
1,201.96
PBDIT
2,805.29
3,034.34
1,975.16
1,584.07
1,399.64
Interest
-1.85
11.14
13.04
13.47
13.76
PBDT
2,807.14
3,023.20
1,962.12
1,570.60
1,385.88
Depreciation
402.38
191.47
180.66
160.32
139.78
Other Written Off
Income
Expenditure
Operating Profit
42
Profit Before Tax
2,404.76
2,831.73
1,781.46
1,410.28
1,246.10
2,404.76
2,831.73
1,781.46
1,410.28
1,246.10
Tax
476.86
599.9
499.7
442.4
388.21
Reported Net Profit
1,927.90
2,231.83
1,281.76
967.88
857.89
2,585.89
2,261.40
1,752.31
1,497.74
1,451.53
Preference Dividend
Equity Dividend
2,096.72
2,196.56
399.38
379.41
339.47
340.14
371
67.87
64.48
57.69
1,996.88
1,996.88
1,996.88
1,996.88
1,996.88
Earnings Per Share (Rs)
96.55
111.77
64.19
48.47
42.96
Equity Dividend (%)
5,250.00
5,500.00
1,000.00
950
850
Book Value (Rs)
148.03
173.52
190.33
149.55
123.7
CIPLA
Balance Sheet of Cipla
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
160.58
160.58
155.46
155.46
155.46
160.58
160.58
155.46
155.46
155.46
Reserves
6,443.40
5,744.54
4,186.32
3,591.39
3,071.84
8.97
8.97
8.97
8.97
8.97
Networth
6,612.95
5,914.09
4,350.75
3,755.82
3,236.27
Secured Loans
2.95
0.41
2.79
16.98
7.25
Unsecured Loans
438.44
4.66
937.45
563.55
116.31
Total Debt
441.39
5.07
940.24
580.53
123.56
7,054.34
5,919.16
5,290.99
4,336.35
3,359.83
Gross Block
3,929.00
2,895.44
2,693.29
2,201.79
1,799.71
1,060.98
884.27
700.8
540.43
411.64
Sources Of Funds
Total Share Capital
Total Liabilities
43
Net Block
2,868.02
2,011.17
1,992.49
1,661.36
1,388.07
253.07
684.24
366.32
233.12
73.19
Investments
570.28
265.1
81.32
94.75
117.8
Inventories
1,883.16
1,512.58
1,398.32
1,120.49
978.6
1,497.04
1,552.71
1,837.15
1,393.91
1,028.78
83.56
60.32
52.84
79.12
56.33
3,463.76
3,125.61
3,288.31
2,593.52
2,063.71
Loans and Advances
2,558.23
2,357.29
1,131.10
1,150.30
695.81
Fixed Deposits
0.57
0.52
0.16
0.16
75.16
6,022.56
5,483.42
4,419.57
3,743.98
2,834.68
Deffered Credit
Current Liabilities
1,150.72
1,177.11
1,177.00
980.05
643.78
Provisions
1,508.87
1,347.66
391.71
416.81
410.13
2,659.59
2,524.77
1,568.71
1,396.86
1,053.91
Net Current Assets
3,362.97
2,958.65
2,850.86
2,347.12
1,780.77
Total Assets
7,054.34
5,919.16
5,290.99
4,336.35
3,359.83
Sundry Debtors
4. SUN PHARMA
SCRIP ID :
SUNPHARMA
SCRIP CODE:
524715
GROUP:
INDEX:
SENSEX
INDUSTRY:
PHARMACEUTICALS
FACE VALUE:
Profit & Loss account of Sun
------------------- in Rs. Cr. -------------------
Pharmaceutical Industries
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
1,985.78
1,891.16
2,833.65
2,427.35
1,722.13
Income
Sales Turnover
44
Excise Duty
52.39
46.07
59
58.84
59.57
Net Sales
1,933.39
1,845.09
2,774.65
2,368.51
1,662.56
Other Income
1,365.95
765.98
1,276.22
914.83
750.26
Stock Adjustments
-1.99
30.91
23.78
17.38
41.41
Total Income
3,297.35
2,641.98
4,074.65
3,300.72
2,454.23
Raw Materials
928.85
878.46
1,961.89
1,564.61
1,214.48
Power & Fuel Cost
39.4
47.38
50.44
37.36
31.14
Employee Cost
214.06
174.71
148.31
120.2
98.87
62.81
52.9
43.93
35.21
25.08
505.7
439.11
494.98
415.35
370.2
27.69
31.92
18.06
14.62
18.85
Total Expenses
1,778.51
1,624.48
2,717.61
2,187.35
1,758.62
152.89
251.52
80.82
198.54
-54.65
PBDIT
1,518.84
1,017.50
1,357.04
1,113.37
695.61
Interest
0.59
0.44
2.77
5.06
8.8
PBDT
1,518.25
1,017.06
1,354.27
1,108.31
686.81
Depreciation
64.23
69.47
58.86
56.11
46.27
Other Written Off
Profit Before Tax
1,454.02
947.59
1,295.41
1,052.20
640.54
1.57
11.7
-0.05
1,454.02
949.16
1,307.11
1,052.20
640.49
Tax
70.22
50.51
30.12
38.16
11.61
Reported Net Profit
1,383.80
898.65
1,265.29
1,014.04
628.93
849.66
746.02
755.72
622.74
544.14
Preference Dividend
0.05
0.08
Equity Dividend
362.45
284.79
284.79
217.47
130.01
58.8
47.3
48.4
37.2
18.25
10,355.82
2,071.16
2,071.16
2,071.16
1,934.02
13.36
43.39
61.09
48.96
32.52
Equity Dividend (%)
350
275
275
210
135
Book Value (Rs)
64.51
276.08
248.72
203.15
126.58
Expenditure
Operating Profit
45
SUN PHARMA LIMITED.
Balance Sheet of Sun Pharmaceutical
------------------- in Rs. Cr. -------------------
Industries
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
103.56
103.56
103.56
103.56
98.07
103.56
103.56
103.56
103.56
96.7
1.37
Reserves
6,576.97
5,614.42
5,047.86
4,104.06
2,351.42
Networth
6,680.53
5,717.98
5,151.42
4,207.62
2,449.49
Secured Loans
50.53
29.49
23.6
22.88
20.39
Unsecured Loans
79.64
1,047.76
Total Debt
50.53
29.49
23.6
102.52
1,068.15
Total Liabilities
6,731.06
5,747.47
5,175.02
4,310.14
3,517.64
Gross Block
1,268.76
1,159.76
1,061.90
935.03
838.7
474.37
419.24
362.64
304.99
249.41
Net Block
794.39
740.52
699.26
630.04
589.29
228.06
92.15
75.95
33.43
31.91
Investments
3,601.42
3,951.69
2,694.59
1,843.57
1,057.49
Inventories
618.26
570.14
486.74
389.63
333.38
Sundry Debtors
542.62
553.29
680.03
1,055.44
310
23.22
26.11
20.17
23.29
35.69
1,184.10
1,149.54
1,186.94
1,468.36
679.07
Loans and Advances
577.88
383.34
311.42
394.13
345.82
Fixed Deposits
1,227.68
161.16
1,245.30
1,049.13
1,166.99
2,989.66
1,694.04
2,743.66
2,911.62
2,191.88
Deffered Credit
Current Liabilities
449.37
388.45
696.34
845.73
345.23
Provisions
433.1
342.48
342.1
262.79
7.7
Sources Of Funds
46
882.47
730.93
1,038.44
1,108.52
352.93
Net Current Assets
2,107.19
963.11
1,705.22
1,803.10
1,838.95
Total Assets
6,731.06
5,747.47
5,175.02
4,310.14
3,517.64
5. HDFC BANK
SCRIP ID :
HDFC BANK
SCRIP CODE:
500180
GROUP:
INDEX:
SENSEX
INDUSTRY:
BANKS
FACE VALUE:
HDFC P&L
Profit & Loss account of HDFC Bank
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Interest Earned
19,928.21
16,172.90
16,332.26
10,115.00
6,889.02
Other Income
4,433.51
3,810.62
3,470.63
2,205.38
1,510.24
Total Income
24,361.72
19,983.52
19,802.89
12,320.38
8,399.26
Interest expended
9,385.08
7,786.30
8,911.10
4,887.12
3,179.45
Employee Cost
2,836.04
2,289.18
2,238.20
1,301.35
776.86
2,510.82
3,395.83
2,851.26
974.79
727.53
Depreciation
497.41
394.39
359.91
271.72
219.6
5,205.97
3,169.12
3,197.49
3,295.22
2,113.28
Operating Expenses
8,045.36
7,703.41
7,290.66
3,935.28
2,590.66
Provisions & Contingencies
3,004.88
1,545.11
1,356.20
1,907.80
1,246.61
20,435.32
17,034.82
17,557.96
10,730.20
7,016.72
3,926.40
2,948.70
2,244.94
1,590.18
1,382.54
Income
Expenditure
Total Expenses
Net Profit for the Year
47
Extraordionary Items
-2.65
-0.93
-0.59
-0.06
-0.35
Profit brought forward
4,532.79
3,455.57
2,574.63
1,932.03
1,455.02
Total
8,456.54
6,403.34
4,818.98
3,522.15
2,837.21
Preference Dividend
Equity Dividend
767.62
549.29
425.38
301.27
223.57
124.53
91.23
72.29
51.2
38
84.4
64.42
52.77
44.87
43.29
Equity Dividend (%)
165
120
100
85
70
Book Value (Rs)
545.53
470.19
344.44
324.38
201.42
HDFC BANK
------------------- in Rs. Cr. ------------------Balance Sheet of HDFC Bank
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
465.23
457.74
425.38
354.43
319.39
465.23
457.74
425.38
354.43
319.39
400.92
Reserves
24,914.04
21,064.75
14,226.43
11,142.80
6,113.76
Net Worth
25,379.27
21,522.49
15,052.73
11,497.23
6,433.15
Deposits
2,08,586.41
1,67,404.44
1,42,811.58
1,00,768.60
68,297.94
Borrowings
14,394.06
12,915.69
2,685.84
4,478.86
2,815.39
Total Debt
2,22,980.47
1,80,320.13
1,45,497.42
1,05,247.46
71,113.33
Other Liabilities & Provisions
28,992.86
20,615.94
22,720.62
16,431.91
13,689.13
Total Liabilities
2,77,352.60
2,22,458.56
1,83,270.77
1,33,176.60
91,235.61
Cash & Balances with RBI
25,100.82
15,483.28
13,527.21
12,553.18
5,182.48
Balance with Banks, Money at Call
4,568.02
14,459.11
3,979.41
2,225.16
3,971.40
Advances
1,59,982.67
1,25,830.59
98,883.05
63,426.90
46,944.78
Investments
70,929.37
58,607.62
58,817.55
49,393.54
30,564.80
Gross Block
5,244.21
4,707.97
3,956.63
2,386.99
1,917.56
Accumulated Depreciation
3,073.56
2,585.16
2,249.90
1,211.86
950.89
Net Block
2,170.65
2,122.81
1,706.73
1,175.13
966.67
Capital Work In Progress
Capital and Liabilities:
Assets
48
Other Assets
14,601.08
5,955.15
6,356.83
4,402.69
3,605.48
Total Assets
2,77,352.61
2,22,458.56
1,83,270.78
1,33,176.60
91,235.61
6. SBI
SCRIP ID :
SBI
SCRIP CODE:
500112
GROUP:
INDEX:
SENSEX
INDUSTRY:
BANKS
FACE VALUE:
Profit & Loss account of SBI
.------------------ in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Interest Earned
81,394.36
70,993.92
63,788.43
48,950.31
39,491.03
Other Income
14,935.09
14,968.15
12,691.35
9,398.43
7,446.76
Total Income
96,329.45
85,962.07
76,479.78
58,348.74
46,937.79
Income
Expenditure
Interest expended
48,867.96
47,322.48
42,915.29
31,929.08
23,436.82
Employee Cost
14,480.17
12,754.65
9,747.31
7,785.87
7,932.58
12,141.19
7,898.23
5,122.06
4,165.94
3,251.14
Depreciation
990.5
932.66
763.14
679.98
602.39
12,479.30
7,888.00
8,810.75
7,058.75
7,173.55
Operating Expenses
31,430.88
24,941.01
18,123.66
14,609.55
13,251.78
Provisions & Contingencies
8,660.28
4,532.53
6,319.60
5,080.99
5,707.88
Total Expenses
88,959.12
76,796.02
67,358.55
51,619.62
42,396.48
B30-
9,166.05
9,121.23
6,729.12
4,541.31
Extraordionary Items
Profit brought forward
0.34
0.34
0.34
0.34
0.34
Total
7,370.69
9,166.39
9,121.57
6,729.46
4,541.65
Net Profit for the Year
49
Preference Dividend
Equity Dividend
1,905.00
1,904.65
1,841.15
1,357.66
736.82
246.52
236.76
248.03
165.87
125.22
116.07
144.37
143.67
106.56
86.29
Equity Dividend (%)
300
300
290
215
140
Book Value (Rs)
1,023.40
1,038.76
912.73
776.48
594.69
SBI BANK
Balance Sheet
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
635
634.88
634.88
631.47
526.3
635
634.88
634.88
631.47
526.3
Reserves
64,351.04
65,314.32
57,312.82
48,401.19
30,772.26
Net Worth
64,986.04
65,949.20
57,947.70
49,032.66
31,298.56
Deposits
9,33,932.81
8,04,116.23
7,42,073.13
5,37,403.94
4,35,521.09
Borrowings
1,19,568.96
1,03,011.60
53,713.68
51,727.41
39,703.34
Total Debt
10,53,501.77
9,07,127.83
7,95,786.81
5,89,131.35
4,75,224.43
Other Liabilities & Provisions
1,05,248.39
80,336.70
1,10,697.57
83,362.30
60,042.26
12,23,736.20
10,53,413.73
9,64,432.08
7,21,526.31
5,66,565.25
Cash & Balances with RBI
94,395.50
61,290.87
55,546.17
51,534.62
29,076.43
Balance with Banks, Money at Call
28,478.65
34,892.98
48,857.63
15,931.72
22,892.27
Advances
7,56,719.45
6,31,914.15
5,42,503.20
4,16,768.20
3,37,336.49
Investments
2,95,600.57
2,85,790.07
2,75,953.96
1,89,501.27
1,49,148.88
Gross Block
13,189.28
11,831.63
10,403.06
8,988.35
8,061.92
Accumulated Depreciation
8,757.33
7,713.90
6,828.65
5,849.13
5,385.01
Net Block
4,431.95
4,117.73
3,574.41
3,139.22
2,676.91
Capital Work In Progress
332.23
295.18
263.44
234.26
141.95
Other Assets
43,777.85
35,112.76
37,733.27
44,417.03
25,292.31
12,23,736.20
10,53,413.74
9,64,432.08
7,21,526.32
5,66,565.24
Capital and Liabilities:
Total Liabilities
Assets
Total Assets
50
7.HUL LTD.
SCRIP ID :
HUL
SCRIP CODE:
500696
GROUP:
INDEX:
SENSEX
INDUSTRY:
PERSONAL
PRODUCTS
FACE VALUE:
HUL LTD P&L

Profit & Loss account OF HUL LTD
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Dec '07
Dec '06
12 mths
12 mths
15 mths
12 mths
12 mths
Sales Turnover
20,598.89
18,462.34
21,927.23
14,937.88
13,189.70
Excise Duty
908.98
693.22
1,422.95
1,057.32
945.68
Net Sales
19,689.91
17,769.12
20,504.28
13,880.56
12,244.02
Other Income
439.48
199.73
276.54
428.37
512.6
Stock Adjustments
295.08
19.47
434.33
162.06
129.97
Total Income
20,424.47
17,988.32
21,215.15
14,470.99
12,886.59
Raw Materials
10,494.33
9,003.97
11,380.05
7,542.78
6,687.30
Power & Fuel Cost
274.74
244.34
301.37
198.89
180.79
Employee Cost
961.27
936.3
1,152.12
767.81
642.81
551.25
412.19
297.34
204.1
187.37
4,366.30
3,737.52
3,857.48
2,561.12
2,328.51
672.61
656.57
985.31
691.49
541.52
17,320.50
14,990.89
17,973.67
11,966.19
10,568.30
2,664.49
2,797.70
2,964.94
2,076.43
1,805.69
3,103.97
2,997.43
3,241.48
2,504.80
2,318.29
Income
Expenditure


Total Expenses
Operating Profit
PBDIT
51
Interest
0.24
6.98
25.32
25.5
10.73
PBDT
3,103.73
2,990.45
3,216.16
2,479.30
2,307.56
Depreciation
220.83
184.03
195.3
138.36
130.16
Other Written Off
Profit Before Tax
2,882.90
2,806.42
3,020.86
2,340.94
2,177.40
-3.06
43.97
48.53
1.67
-0.21
2,879.84
2,850.39
3,069.39
2,342.61
2,177.19
Tax
573.87
648.36
572.94
417.14
321.8
Reported Net Profit
2,305.97
2,202.03
2,500.71
1,769.06
1,855.37
6,826.17
5,986.92
6,593.62
4,423.41
3,881.00
Preference Dividend
Equity Dividend
1,410.60
1,417.94
1,634.51
1,976.12
1,325.48
231.36
238.03
277.79
355.5
185.9
21,594.72
21,816.87
21,798.76
21,774.63
22,067.76
10.68
10.09
11.47
8.12
8.41
Equity Dividend (%)
650
650
750
900
600
Book Value (Rs)
12.19
11.84
9.45
6.61
12.34
HUL
Balance Sheet of Hindustan Unilever
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Dec '07
Dec '06
12 mths
12 mths
15 mths
12 mths
12 mths
Total Share Capital
215.95
218.17
217.99
217.75
220.68
215.95
218.17
217.99
217.75
220.68
Reserves
2,417.30
2,364.68
1,842.85
1,220.82
2,502.14
0.67
0.67
0.67
0.67
0.67
Networth
2,633.92
2,583.52
2,061.51
1,439.24
2,723.49
Secured Loans
144.65
25.52
37.13
Unsecured Loans
277.3
63.01
35.47
Total Debt
421.95
88.53
72.6
Total Liabilities
2,633.92
2,583.52
2,483.46
1,527.77
2,796.09
Sources Of Funds
52
Gross Block
3,759.62
3,581.96
2,881.73
2,669.08
2,462.69
1,590.46
1,419.85
1,274.95
1,146.57
1,061.94
Net Block
2,169.16
2,162.11
1,606.78
1,522.51
1,400.75
299.08
273.96
472.07
185.64
110.26
Investments
1,260.68
1,264.08
332.62
1,440.81
2,522.22
Inventories
2,811.26
2,179.93
2,528.86
1,953.60
1,547.71
Sundry Debtors
943.2
678.44
536.89
443.37
440.37
281.91
231.37
190.59
200.11
170.8
4,036.37
3,089.74
3,256.34
2,597.08
2,158.88
Loans and Advances
1,099.72
1,068.31
1,196.95
1,083.28
1,150.06
Fixed Deposits
1,358.10
1,660.84
1,586.76
0.75
246.15
6,494.19
5,818.89
6,040.05
3,681.11
3,555.09
Deffered Credit
Current Liabilities
6,264.21
5,493.97
4,440.08
4,028.41
3,362.52
Provisions
1,324.98
1,441.55
1,527.98
1,273.90
1,429.71
7,589.19
6,935.52
5,968.06
5,302.31
4,792.23
Net Current Assets
-1,095.00
-1,116.63
71.99
-1,621.20
-1,237.14
2,633.92
2,583.52
2,483.46
1,527.76
2,796.09
Total Assets
8. ITC LTD.
SCRIP ID :
ITC
SCRIP CODE:
500875
GROUP:
INDEX:
SENSEX
INDUSTRY:
CIGARETTES,TOBACCO
PRODUCTS
FACE VALUE:
ITC LTD P&L

Profit & Loss account OF ITC LTD
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
53
Income
Sales Turnover
30,633.57
26,399.63
23,247.84
21,467.38
19,519.99
Excise Duty
9,512.74
7,832.18
8,262.03
7,435.18
7,206.16
Net Sales
21,120.83
18,567.45
14,985.81
14,032.20
12,313.83
Other Income
775.76
545.05
426.21
516.5
276.22
Stock Adjustments
308.42
-447.54
630.3
32.46
322.96
Total Income
22,205.01
18,664.96
16,042.32
14,581.16
12,913.01
Raw Materials
8,601.13
7,140.69
6,864.96
6,307.79
5,807.48
Power & Fuel Cost
421.68
387.34
394.12
309.9
253
Employee Cost
1,178.46
1,014.87
903.37
745
630.15
560.57
413.79
402.88
73.52
65.32
2,408.03
2,093.87
1,684.41
1,609.33
1,299.17
1,120.89
1,008.91
516.9
682.72
601.28
-60.54
-71.88
-72.55
-112.75
-42.52
Total Expenses
14,230.22
11,987.59
10,694.09
9,615.51
8,613.88
Operating Profit
7,199.03
6,132.32
4,922.02
4,449.15
4,022.91
PBDIT
7,974.79
6,677.37
5,348.23
4,965.65
4,299.13
Interest
78.11
90.28
47.65
24.61
16.04
PBDT
7,896.68
6,587.09
5,300.58
4,941.04
4,283.09
Depreciation
655.99
608.71
549.41
438.46
362.92
Other Written Off
Profit Before Tax
7,240.69
5,978.38
4,751.17
4,502.58
3,920.17
35.21
48.65
81.52
117.41
61.94
7,275.90
6,027.03
4,832.69
4,619.99
3,982.11
Tax
2,287.69
1,965.43
1,565.13
1,480.97
1,263.07
Reported Net Profit
4,987.61
4,061.00
3,263.59
3,120.10
2,699.97
5,629.09
4,846.90
3,829.13
3,307.72
2,806.40
Preference Dividend
Equity Dividend
3,443.47
3,818.18
1,396.53
1,319.01
1,166.29
558.62
634.15
237.34
224.17
198.21
77,381.44
38,181.77
37,744.00
37,686.10
37,622.23
6.45
10.64
8.65
8.28
7.18
Equity Dividend (%)
445
1,000.00
370
350
310
Book Value (Rs)
20.55
36.69
36.24
31.85
27.59
Expenditure
54
Balance Sheet of ITC
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
773.81
381.82
377.44
376.86
376.22
773.81
381.82
377.44
376.86
376.22
Reserves
15,126.12
13,628.17
13,302.55
11,624.69
10,003.78
53.34
54.39
55.09
56.12
57.08
Networth
15,953.27
14,064.38
13,735.08
12,057.67
10,437.08
Secured Loans
1.94
11.63
5.57
60.78
Unsecured Loans
97.26
107.71
165.92
208.86
140.1
Total Debt
99.2
107.71
177.55
214.43
200.88
16,052.47
14,172.09
13,912.63
12,272.10
10,637.96
Gross Block
12,765.82
11,967.86
10,558.65
8,959.70
7,134.31
4,420.75
3,825.46
3,286.74
2,790.87
2,389.54
Net Block
8,345.07
8,142.40
7,271.91
6,168.83
4,744.77
1,333.40
1,008.99
1,214.06
1,126.82
1,130.20
Investments
5,554.66
5,726.87
2,837.75
2,934.55
3,067.77
Inventories
5,267.53
4,549.07
4,599.72
4,050.52
3,354.03
Sundry Debtors
907.62
858.8
668.67
736.93
636.69
98.77
120.16
68.73
153.34
103.54
6,273.92
5,528.03
5,337.12
4,940.79
4,094.26
Loans and Advances
2,173.89
1,929.16
2,150.21
1,949.29
1,390.19
Fixed Deposits
2,144.47
1,006.12
963.66
416.91
796.62
10,592.28
8,463.31
8,450.99
7,306.99
6,281.07
Deferred Credit
Current Liabilities
5,668.10
4,619.54
4,121.59
3,619.76
3,113.01
Provisions
4,104.84
4,549.94
1,740.49
1,645.33
1,472.84
9,772.94
9,169.48
5,862.08
5,265.09
4,585.85
Net Current Assets
819.34
-706.17
2,588.91
2,041.90
1,695.22
16,052.47
14,172.09
13,912.63
12,272.10
10,637.96
Sources Of Funds
Total Liabilities
Total Assets
55
9.INFOSYS
SCRIP ID :
INFY
SCRIP CODE:
500209
GROUP:
INDEX:
SENSEX
INDUSTRY:
IT CONSULTING
& SOFTWARE
FACE VALUE:
INFOSYS P&L
Profit & Loss account OF INFOSYS
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sales Turnover
25,385.00
21,140.00
20,264.00
15,648.00
13,149.00
Excise Duty
Net Sales
25,385.00
21,140.00
20,264.00
15,648.00
13,149.00
Other Income
1,147.00
967
502
683
379
Stock Adjustments
Total Income
26,532.00
22,107.00
20,766.00
16,331.00
13,528.00
Raw Materials
23
22
20
18
22
Power & Fuel Cost
125
106
88
Employee Cost
12,464.00
10,356.00
9,975.00
7,771.00
6,316.00
2,613.00
1,993.00
1,697.00
1,443.00
1,290.00
1,834.00
992
1,367.00
1,214.00
1,050.53
36
415
172
132
156.47
Total Expenses
16,970.00
13,778.00
13,356.00
10,684.00
8,923.00
Operating Profit
8,415.00
7,362.00
6,908.00
4,964.00
4,226.00
PBDIT
9,562.00
8,329.00
7,410.00
5,647.00
4,605.00
Income
Expenditure
56
Interest
PBDT
9,561.00
8,327.00
7,408.00
5,646.00
4,604.00
Depreciation
740
807
694
546
469
Other Written Off
Profit Before Tax
8,821.00
7,520.00
6,714.00
5,100.00
4,135.00
-1
-5
8,821.00
7,520.00
6,713.00
5,100.00
4,130.00
Tax
2,378.00
1,717.00
895
630
352
Reported Net Profit
6,443.00
5,803.00
5,819.00
4,470.00
3,783.00
16,947.00
13,756.00
13,336.00
10,666.00
8,901.00
Preference Dividend
Equity Dividend
3,445.00
1,434.00
1,345.00
1,902.00
649
568
240
228
323
102
5,741.52
5,738.25
5,728.30
5,719.96
5,712.10
112.22
101.13
101.58
78.15
66.23
Equity Dividend (%)
1,200.00
500
470
665
230
Book Value (Rs)
426.73
384.02
310.9
235.84
195.41

INFOSYS
Balance Sheet of Infosys
------------------- in Rs. Cr. -------------------
12 mths
12 mths
12 mths
12 mths
12 mths
Sources Of Funds
Total Share Capital
287
287
286
286
286
287
287
286
286
286
Reserves
24,214.00
21,749.00
17,523.00
13,204.00
10,876.00
Networth
24,501.00
22,036.00
17,809.00
13,490.00
11,162.00
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
24,501.00
22,036.00
17,809.00
13,490.00
11,162.00
57
Gross Block
6,934.00
6,357.00
5,986.00
4,508.00
3,889.00
2,878.00
2,578.00
2,187.00
1,837.00
1,739.00
Net Block
4,056.00
3,779.00
3,799.00
2,671.00
2,150.00
499
409
615
1,260.00
957
Investments
1,325.00
4,636.00
1,005.00
964
839
Inventories
Sundry Debtors
4,212.00
3,244.00
3,390.00
3,093.00
2,292.00
641
929
805
657
680
4,853.00
4,173.00
4,195.00
3,750.00
2,972.00
Loans and Advances
5,273.00
4,201.00
3,303.00
2,804.00
1,241.00
Fixed Deposits
13,024.00
8,868.00
8,234.00
5,772.00
4,827.00
23,150.00
17,242.00
15,732.00
12,326.00
9,040.00
Deffered Credit
Current Liabilities
2,056.00
1,995.00
1,544.00
1,483.00
1,162.00
Provisions
2,473.00
2,035.00
1,798.00
2,248.00
662
4,529.00
4,030.00
3,342.00
3,731.00
1,824.00
Net Current Assets
18,621.00
13,212.00
12,390.00
8,595.00
7,216.00
Total Assets
24,501.00
22,036.00
17,809.00
13,490.00
11,162.00
8.TCS LTD
SCRIP ID :
TCS
SCRIP CODE:
532540
GROUP:
INDEX:
SENSEX
INDUSTRY:
IT CONSULTING
& SOFTWARE
FACE VALUE:
58
Profit & Loss account OF TCS
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sales Turnover
29,275.41
23,044.84
22,404.00
18,536.55
14,942.09
Excise Duty
0.39
2.08
2.83
2.12
Net Sales
29,275.41
23,044.45
22,401.92
18,533.72
14,939.97
Other Income
486.44
182.1
-456.24
440.45
216.04
Stock Adjustments
-0.87
-1.38
1.73
-0.04
-2.79
Total Income
29,760.98
23,225.17
21,947.41
18,974.13
15,153.22
Raw Materials
17.75
23.75
53.67
45.81
22.02
Power & Fuel Cost
240
183.62
164.34
135.57
93.89
Employee Cost
10,190.31
7,882.43
7,370.09
6,015.19
6,186.85
8,135.57
6,446.99
6,947.60
5,687.82
3,095.82
1,097.52
1,268.03
1,218.41
991.43
765.08
821.57
571.08
628.71
632.25
472.04
20,502.72
16,375.90
16,382.82
13,508.07
10,635.70
Operating Profit
8,771.82
6,667.17
6,020.83
5,025.61
4,301.48
PBDIT
9,258.26
6,849.27
5,564.59
5,466.06
4,517.52
Interest
20.01
9.54
7.44
3.42
3.43
PBDT
9,238.25
6,839.73
5,557.15
5,462.64
4,514.09
Depreciation
537.82
469.35
417.46
458.78
343.41
Other Written Off
Profit Before Tax
8,700.43
6,370.38
5,139.69
5,003.86
4,170.68
-13.98
-103.11
-37.52
-2.59
8,700.43
6,356.40
5,036.58
4,966.34
4,168.09
Tax
1,130.44
737.89
340.37
457.58
410.8
Reported Net Profit
7,569.99
5,618.51
4,696.21
4,508.76
3,757.29
20,484.97
16,352.15
16,329.15
13,462.26
10,613.68
Preference Dividend
11
17
0.08
Equity Dividend
2,740.10
3,914.43
1,370.05
1,370.05
1,125.39
450.82
657.51
234.02
232.85
169.48
19,572.21
19,572.21
9,786.10
9,786.10
9,786.10
Earnings Per Share (Rs)
38.62
28.62
47.92
46.07
38.39
Equity Dividend (%)
1,400.00
2,000.00
1,400.00
1,400.00
1,150.00
Income
Expenditure
Total Expenses
59
Book Value (Rs)
99.53
76.72
136.38
111.43
82.35
TCS
Balance Sheet of Tata Consultancy Services
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sources Of Funds
Total Share Capital
295.72
295.72
197.86
197.86
97.86
195.72
195.72
97.86
97.86
97.86
100
100
100
100
Reserves
19,283.77
14,820.90
13,248.39
10,806.95
7,961.13
Networth
19,579.49
15,116.62
13,446.25
11,004.81
8,058.99
Secured Loans
35.87
29.25
32.63
9.27
41.76
Unsecured Loans
5.25
6.49
7.74
8.98
8.98
Total Debt
41.12
35.74
40.37
18.25
50.74
19,620.61
15,152.36
13,486.62
11,023.06
8,109.73
Gross Block
6,030.16
4,871.21
4,359.24
3,240.64
2,315.36
2,607.98
2,110.69
1,690.16
1,300.11
854.75
Net Block
3,422.18
2,760.52
2,669.08
1,940.53
1,460.61
1,345.37
940.72
685.13
889.74
757.85
Investments
5,795.49
7,893.39
5,936.03
4,509.33
3,252.04
Inventories
5.37
6.78
16.95
17.19
12.06
Sundry Debtors
4,806.67
3,332.30
3,717.73
3,747.01
2,799.80
224.77
212.31
479.93
402.24
314.66
5,036.81
3,551.39
4,214.61
4,166.44
3,126.52
Loans and Advances
5,063.51
4,101.84
3,910.85
3,104.74
1,925.74
Fixed Deposits
5,379.75
3,183.85
1,125.33
125.28
242.48
15,480.07
10,837.08
9,250.79
7,396.46
5,294.74
Deffered Credit
Current Liabilities
3,932.39
3,352.74
3,604.18
2,525.56
1,750.46
Provisions
2,490.11
3,926.61
1,450.23
1,187.44
905.05
6,422.50
7,279.35
5,054.41
3,713.00
2,655.51
Net Current Assets
9,057.57
3,557.73
4,196.38
3,683.46
2,639.23
Total Liabilities
60
Total Assets
19,620.61
15,152.36
13,486.62
11,023.06
8,109.73
9.BHEL
SCRIP ID :
BHEL
SCRIP CODE:
500103
GROUP:
INDEX:
SENSEX
INDUSTRY:
GHEAVY
ELECTRICAL
EQUIPMENT
FACE VALUE:
BHARAT HEAVY ELECTRICALS P&L

Profit & Loss account of Bharat Heavy
------------------- in Rs. Cr. -------------------
Electricals
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sales Turnover
44,002.76
34,613.43
28,504.05
21,775.60
19,058.33
Excise Duty
1,980.00
1,387.18
1,889.69
2,234.52
1,695.44
Net Sales
42,022.76
33,226.25
26,614.36
19,541.08
17,362.89
Other Income
1,015.31
1,085.73
1,023.88
1,023.12
482.32
Stock Adjustments
127.35
786.65
1,151.54
827.33
181.37
Total Income
43,165.42
35,098.63
28,789.78
21,391.53
18,026.58
Raw Materials
19,887.45
17,752.74
15,587.43
10,400.69
8,561.41
Power & Fuel Cost
402.86
337.99
341.82
273.07
259.08
Employee Cost
5,396.71
6,449.17
2,991.27
2,602.30
2,366.93
3,482.76
2,980.25
2,086.06
1,464.58
1,733.59
3,939.30
279.72
2,412.22
1,664.57
887.55
486.3
113.84
162.5
216.6
190.5
33,595.38
27,913.71
23,581.30
16,621.81
13,999.06
Operating Profit
8,554.73
6,099.19
4,184.60
3,746.60
3,545.20
PBDIT
9,570.04
7,184.92
5,208.48
4,769.72
4,027.52
Income
Expenditure
Total Expenses
61
Interest
54.73
33.5
30.71
35.42
43.33
PBDT
9,515.31
7,151.42
5,177.77
4,734.30
3,984.19
Depreciation
475.61
458.01
334.27
297.21
244.61
Other Written Off
Profit Before Tax
9,039.70
6,693.41
4,843.50
4,437.09
3,739.58
79.66
46.47
96.64
-12.69
-13.79
9,119.36
6,739.88
4,940.14
4,424.40
3,725.79
Tax
3,088.13
2,326.35
1,799.31
1,565.06
1,311.09
Reported Net Profit
6,011.20
4,310.64
3,138.21
2,859.34
2,414.70
13,707.93
10,160.97
7,993.87
6,221.12
5,437.65
Preference Dividend
Equity Dividend
1,524.85
1,140.58
832.18
746.52
599.66
249.88
191.51
141.43
126.87
92.83
4,895.20
4,895.20
4,895.20
4,895.20
2,447.60
122.8
88.06
64.11
58.41
98.66
Equity Dividend (%)
311.5
233
170
152.5
245
Book Value (Rs)
411.71
325.16
264.32
220.1
359.06
BHARAT HEAVY ELECTRICALS

Balance Sheet of Bharat Heavy Electricals
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
489.52
489.52
489.52
489.52
244.76
489.52
489.52
489.52
489.52
244.76
Reserves
19,664.32
15,427.84
12,449.29
10,284.69
8,543.50
Networth
20,153.84
15,917.36
12,938.81
10,774.21
8,788.26
Secured Loans
Unsecured Loans
163.35
127.75
149.37
95.18
89.33
Total Debt
163.35
127.75
149.37
95.18
89.33
Total Liabilities
20,317.19
16,045.11
13,088.18
10,869.39
8,877.59
Sources Of Funds
62
Gross Block
8,049.30
6,579.70
5,224.43
4,443.03
4,134.61
4,648.82
4,164.74
3,754.47
3,462.21
3,146.31
Net Block
3,400.48
2,414.96
1,469.96
980.82
988.3
1,762.62
1,550.49
1,212.70
658.47
306.58
Investments
439.17
79.84
52.34
8.29
8.29
Inventories
10,963.03
9,235.46
7,837.02
5,736.40
4,217.67
Sundry Debtors
27,354.62
20,688.75
15,975.50
11,974.87
9,695.82
1,430.15
865.08
1,950.51
1,511.02
2,068.91
39,747.80
30,789.29
25,763.03
19,222.29
15,982.40
Loans and Advances
13,267.07
4,801.24
4,616.67
7,366.17
5,517.59
Fixed Deposits
8,200.00
8,925.00
8,364.16
6,875.00
3,740.00
61,214.87
44,515.53
38,743.86
33,463.46
25,239.99
Deffered Credit
Current Liabilities
31,469.58
28,097.73
23,415.10
16,632.97
11,957.32
Provisions
15,030.37
4,417.98
4,975.58
7,608.68
5,708.25
46,499.95
32,515.71
28,390.68
24,241.65
17,665.57
Net Current Assets
14,714.92
11,999.82
10,353.18
9,221.81
7,574.42
20,317.19
16,045.11
13,088.18
10,869.39
8,877.59
Total Assets
11.LNT
SCRIP ID :
LNT
SCRIP CODE:
500510
GROUP:
INDEX:
SENSEX
INDUSTRY:
CONSTRUCTION
&
ENGINEERING
FACE VALUE:
63
Profit & Loss account of Larsen and Toubro
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Sales Turnover
44,055.55
37,187.50
34,249.85
25,280.49
17,983.37
Excise Duty
398.84
317.31
393.31
334.38
338.08
Net Sales
43,656.71
36,870.19
33,856.54
24,946.11
17,645.29
Other Income
1,781.28
2,321.67
1,612.58
616.69
459.8
Stock Adjustments
559.49
-422.99
105.11
746.17
121.76
Total Income
45,997.48
38,768.87
35,574.23
26,308.97
18,226.85
Raw Materials
12,372.32
9,593.53
9,316.38
8,256.46
5,320.98
Power & Fuel Cost
355.45
334.08
456.39
365.25
308.13
Employee Cost
2,884.53
2,379.14
1,998.02
1,535.44
1,258.21
19,886.12
16,913.31
15,659.17
10,632.83
7,451.07
2,103.38
1,854.23
1,844.83
1,393.80
1,222.80
773.7
325.58
569.32
280.69
166.15
-37.87
-36.25
-24.48
-11.42
-3.3
38,337.63
31,363.62
29,819.63
22,453.05
15,724.04
Operating Profit
5,878.57
5,083.58
4,142.02
3,239.23
2,043.01
PBDIT
7,659.85
7,405.25
5,754.60
3,855.92
2,502.81
Interest
1,199.23
995.37
770
501.83
331.46
PBDT
6,460.62
6,409.88
4,984.60
3,354.09
2,171.35
Depreciation
575.81
383.65
284.83
195.94
160.13
Other Written Off
23.41
30.95
21.16
15.66
Profit Before Tax
5,861.40
5,995.28
4,678.61
3,142.49
2,011.22
-49.05
-45.13
-21.09
12.21
-5.34
5,812.35
5,950.15
4,657.52
3,154.70
2,005.88
Tax
1,858.47
1,577.02
1,176.19
982.05
601.87
Reported Net Profit
3,957.89
4,375.52
3,481.66
2,173.42
1,403.02
25,965.31
21,770.09
20,503.25
14,196.59
10,403.06
Preference Dividend
Equity Dividend
882.84
752.75
614.97
495.32
368.25
112.82
110.25
101.83
76.26
53.34
6,088.52
6,021.95
5,856.88
2,923.27
2,832.71
65.01
72.66
59.45
74.35
49.53
Equity Dividend (%)
725
625
525
850
650
Income
Expenditure
Total Expenses
64
Book Value (Rs)
352.4
303.28
212.32
325.98
202.65
LNT
Balance Sheet of Larsen and Toubro
------------------- in Rs. Cr. ------------------Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
12 mths
12 mths
12 mths
12 mths
12 mths
Total Share Capital
121.77
120.44
117.14
58.47
56.65
121.77
120.44
117.14
58.47
56.65
368.31
25.09
Reserves
21,334.05
18,142.82
12,317.96
9,470.71
5,683.85
22.13
23.29
24.59
25.9
27.93
Networth
21,846.26
18,311.64
12,459.69
9,555.08
5,768.43
Secured Loans
1,063.04
955.73
1,102.38
308.53
245.4
Unsecured Loans
6,098.07
5,845.10
5,453.65
3,275.46
1,832.35
Total Debt
7,161.11
6,800.83
6,556.03
3,583.99
2,077.75
Total Liabilities
29,007.37
25,112.47
19,015.72
13,139.07
7,846.18
Gross Block
8,897.02
7,235.78
5,575.00
4,188.91
2,876.30
2,220.82
1,727.68
1,421.39
1,242.47
1,122.83
Net Block
6,676.20
5,508.10
4,153.61
2,946.44
1,753.47
785
857.66
1,040.99
699
471.22
Investments
14,684.82
13,705.35
8,263.72
6,922.26
3,104.44
Inventories
1,577.15
1,415.37
5,805.05
4,305.91
3,001.14
Sundry Debtors
12,427.61
11,163.70
10,055.52
7,365.01
5,504.64
1,518.98
1,104.89
693.13
779.86
993.68
15,523.74
13,683.96
16,553.70
12,450.78
9,499.46
Loans and Advances
19,499.23
12,662.55
7,198.85
3,861.10
2,449.14
Fixed Deposits
211.37
326.98
82.16
184.6
100.75
35,234.34
26,673.49
23,834.71
16,496.48
12,049.35
Deffered Credit
Current Liabilities
26,139.56
19,443.77
15,211.04
11,892.75
8,362.01
Provisions
2,233.43
2,188.36
3,066.53
2,035.42
1,180.13
28,372.99
21,632.13
18,277.57
13,928.17
9,542.14
Net Current Assets
6,861.35
5,041.36
5,557.14
2,568.31
2,507.21
0.26
3.06
9.84
Total Assets
29,007.37
25,112.47
19,015.72
13,139.07
7,846.18
Sources Of Funds
65
The company analysis is done on base of fundament analysis which is done on

the bases of:
Edward Altmans Z score

Ratios
Earnings Per Share
Book Value
Promoters Shareholding Pattern
EDWARD ALTMANS Z SCORE

The Z-score formula for predicting bankruptcy was published in 1968 by
Edward I. Altman. He was then an Assistant Professor of Finance at New York
University, and, in 2009, is still a professor at NYU, now as a long-tenured one.
The Z-score is a formula involving multiple variables that measures the
financial health of a company. The formula may be used to predict the
probability that a firm will go into bankruptcy within two years. Z-scores are
still used occasionally as an easy-to-calculate control measure for the financial
distress status of companies in academic studies about other topics.
ESTIMATION OF THE FORMULA

The Z-score is a linear combination of four or five common business ratios,
weighted by coefficients that were estimated by Altman's application of the
statistical method of discriminate analysis to a dataset of publicly held
manufacturers. Altman first identified a set of firms which had declared
bankruptcy, and he then collected a matched sample of firms which had
66
survived, with matching by industry and approximate size (assets).The

estimation was originally based on data from publicly held manufacturers, but
has since been re-estimated based on other datasets for private manufacturing,
non-manufacturing and service companies.The original data sample consisted of
66 firms, half of which had filed for bankruptcy under Chapter 7. All businesses
in the database were manufacturers and small firms with assets of <$1 million
were eliminated.
THE ORIGINAL Z-SCORE FORMULA WAS AS FOLLOWS:

Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5.
Where,
T1 = Working Capital / Total Assets.
It measures liquid assets in relation to the size of the company.
T2 = Retained Earnings / Total Assets.
It measures profitability that reflects the company's age and earning power.
T3 = Earnings before Interest and Taxes / Total Assets.
It measures operating efficiency apart from tax and leveraging factors. It
recognizes operating earnings as being important to long-term viability.
T4 = Market Value of Equity / Book Value of Total Liabilities.
It adds market dimension that can show up security price fluctuation as a
possible red flag.
T5 = Sales/ Total Assets.
It is standard measure for turnover (varies greatly from industry to industry).
Altman found that the ratio profile for the bankrupt group fell at -0.25 avg, and
for the non-bankrupt group at +4.48 avg.
67
PRECEDENTS
Altman's work built upon research by accounting researcher William Beaver
and others. In the 1930s and on, Mervyn and others had collected matched
samples and assessed that various accounting ratios appeared to be valuable in
predicting bankruptcy. William Beaver's work, published in 1966 and 1968, was
the first to apply a statistical method, t-tests to predict bankruptcy for a pairmatched sample of firms. Beaver applied this method to evaluate the importance
of each of several accounting ratios based on univariate analysis, using each
accounting ratio one at a time. Altman's primary improvement was to apply a
statistical method, discriminant analysis, which could take into account multiple
variables simultaneously.
ACCURACY AND EFFECTIVENESS

Some studies measuring the effectiveness of the Z-score have shown the model
to be accurate with >70% reliability (Eidleman). What is usually meant by
accuracy is the percentage of firms that are classified correctly, within the
estimation sample, when the Z-score values for firms are translated into yes/no
predictions for whether each turns out to be bankrupt. Because the parameters
of the model are estimated based on the same sample, and because the sample
itself is not randomly selected, it is not reasonable to project that the formula
will achieve similar accuracy when applied for making predictions about other
firms.
From about 1985 onwards, the Z-scores gained wide acceptance by auditors,
management accountants, courts, and database systems used for loan evaluation
(Eidleman). The formula's approach has been used in a variety of contexts and
68
countries, although it was designed originally for publicly held manufacturing

companies with assets of more than $1 million. Later variations by Altman take
into account the book value of privately held shares, and the fact that turnover
ratios vary widely in non-manufacturing industries.
The Altman Z-Score model is not recommended for use with financial firms;
because these firms often have off-balance sheet liabilities that aren't captured
by the financial statement data used in the Altman Z-Score model. There are
market-based formulas used to predict the default of financial firms (such as the
Merton Model), but these have limited predictive value because they rely on
market data (fluctuations of share and options prices to imply fluctuations in
asset values) to predict a market event (default, i.e., the decline in asset values
below the value of a firm's liabilities).
ORIGINAL
Z-SCORE
COMPONENT
DEFINITIONS
DEFINITION WEIGHTING FACTOR

T1 = Working Capital / Total Assets
T2 = Retained Earnings / Total Assets
T3 = Earnings before Interest and Taxes / Total Assets
T4 = Market Value of Equity / Total Liabilities
T5 = Sales/ Total Assets
Z Score Bankruptcy Model:

Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
Zones of Discrimination:
69
VARIABLE
Z > 2.99 -Safe Zone

1.8 < Z < 2.99 -Grey Zone
Z < 1.80 -Distress Zone
Z-SCORE ESTIMATED FOR PRIVATE FIRMS
T1 = (Current Assets-Current Liabilities) / Total Assets

T4 = Book Value of Equity / Total Liabilities
Z' Score Bankruptcy Model:

Z' = .717T1 + .847T2 + 3.107T3 + .420T4 + .998T5
Z' > 2.9 -Safe Zone
1.23 < Z < 2. 9 -Grey Zone
Z' < 1.23 -Distress Zone
Z-SCORE ESTIMATED FOR NON-MANUFACTURER INDUSTRIALS &

EMERGING MARKET CREDITS
T1 = (Current Assets-Current Liabilities) / Total Assets
70

Z-Score Bankruptcy Model:

Z = 6.56T1 + 3.26T2 + 6.72T3 + 1.05T4
Z > 2.6 -Safe Zone
1.1 < Z < 2.6 -Grey Zone
Z < 1.1 -Distress Zone
Here we calculated Z score for 12 companies which were short listed and it is
shown in below tables.
1.BAJAJ AUTO
Z score model
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
-0.298
-0.328
-0.158
-0.173
-0.109
0.417
0.263
0.098
0.160
0.116
T3 = Earnings Before Interest and Taxes / Total
0.622
0.596
0.317
0.430
0.265
0.032
0.047
0.038
0.038
0.076
3.142
2.769
2.529
3.021
1.316
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
5.437
4.736
3.542
4.474
2.267
Assets
2.HERO MOTO CORP

Z score model
71
-1.032
-0.441
-0.254
-0.228
-0.199
-0.038
0.010
0.227
0.189
0.197
0.553
0.777
0.452
0.439
0.456
0.033
0.049
0.049
0.048
0.047
4.327
4.486
3.177
3.318
3.759
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
4.877
6.560
4.709
4.781
5.325
Assets
3.CIPLA
Z score model
0.328
0.329
0.399
0.372
0.423
0.104
0.156
0.117
0.126
0.153
0.182
0.233
0.235
0.197
0.245
0.012
0.012
0.011
0.011
0.012
0.896
0.947
0.989
0.969
1.060
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
2.041
2.336
2.414
2.246
2.594
Mar
Mar
Mar
Mar
Mar '07
'11
'10
'09
'08
0.109
0.132
0.095
0.144
0.095
0.152
0.107
0.189
0.185
0.142
0.023
0.044
0.016
0.046
-0.016
0.010
0.048
0.048
0.047
0.036
0.287
0.321
0.536
0.550
0.473
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
0.711
0.802
0.995
1.161
0.755
Assets
4.SUN PHARMA
Z score model
Assets
72
5.HDFC
Z score model
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
0.0024
0.0419
-0.0284
-0.0124
-0.0497
0.0114
0.0108
0.0099
0.0097
0.0127
T3 = Earnings Before Interest and Taxes /
0.0865
0.0864
0.1018
0.0883
0.0911
0.0004
0.0004
0.0004
0.0004
0.0004
0.6344
0.8885
0.5316
0.5445
0.3307
Z score model
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
0.014
0.015
-0.007
-0.022
-0.014
0.004
0.007
0.008
0.007
0.007
0.073
0.076
0.076
0.077
0.078
0.001
0.001
0.001
0.001
0.001
0.598
0.634
0.493
0.402
0.454
Total Assets
T4 = Book Value of Equity / Total
Liabilities
Z = 6.5T1 + 3.26T2 + 6.72T3 + 1.05T4
6.SBI
Total Assets
T4 = Book Value of Equity / Total
Liabilities
Z = 6.5T1 + 3.26T2 + 6.72T3 + 1.05T4
7.HUL
Z- SCORE MODEL
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
-0.846
-0.931
-0.477
-0.937
-0.430
0.340
0.303
0.349
-0.136
0.190
1.178
1.160
1.305
1.640
0.829
0.005
0.005
0.004
0.004
0.004
7.476
6.878
8.256
9.086
4.379
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
10.821
10.011
12.474
13.176
6.862
Total Assets
73
8.ITC
Z- SCORE MODEL
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
0.038
0.064
0.087
0.108
0.092
0.096
0.017
0.134
0.147
0.144
0.497
0.471
0.384
0.405
0.404
0.001
0.003
0.003
0.003
0.003
1.316
1.310
1.077
1.143
1.158
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
3.135
2.966
2.639
2.814
2.804
Z- SCORE MODEL
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
0.114
0.099
0.149
0.168
0.162
0.122
0.198
0.251
0.190
0.281
0.390
0.378
0.416
0.419
0.413
0.017
0.017
0.017
0.017
0.018
Z = 6.5T1+3.26T2+6.72T3+1.05T4
3.826
3.918
4.691
4.613
4.861
Z- SCORE MODEL
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
0.056
0.013
0.045
0.149
0.170
0.246
0.112
0.247
0.285
0.325
0.472
0.452
0.413
0.496
0.557
0.005
0.005
0.010
0.010
0.010
Z = 6.5T1+3.26T2+6.72T3+1.05T4
4.345
3.495
3.882
5.239
5.915
Total Assets
9.INFOSYS
Total Assets
10.TCS
Total Assets
74
11.BHEL
Z score model
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
0.407
0.168
0.179
0.238
0.453
0.221
0.198
0.176
0.194
0.204
0.421
0.380
0.320
0.345
0.399
0.020
0.020
0.020
0.020
0.040
2.166
2.157
2.178
2.003
2.147
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
4.363
3.900
3.705
3.709
4.317
Z score model
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
0.458
0.458
0.709
0.793
1.060
0.106
0.144
0.151
0.128
0.132
0.203
0.202
0.218
0.247
0.260
0.012
0.012
0.011
0.025
0.026
1.519
1.481
1.801
1.924
2.292
Z = 1.2T1 + 1.4T2 + 3.3T3 + .6T4 + .999T5
2.892
2.906
3.587
3.881
4.621
Assets
12.L&T
Assets
Combine Altman Z Score Model Rating
Companies
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
Average
Points
BAJAJ AUTO
5.437
4.736
3.542
4.474
2.267
4.091
75
HERO MOTO
4.877
6.56
4.709
4.781
5.325
5.250
11
CIPLA
2.041
2.336
2.414
2.246
2.594
2.326
SUN PHARMA
0.711
0.802
0.995
1.161
0.755
0.885
HDFC
0.6344
0.8885
0.5316
0.5445
0.3307
0.586
SBI
0.598
0.634
0.493
0.402
0.454
0.516
HUL
10.821
10.011
12.474
13.176
6.862
10.669
12
ITC
3.135
2.966
2.639
2.814
2.804
2.872
INFOSYS
3.826
3.918
4.691
4.613
4.861
4.382
10
TCS
3.826
3.918
4.691
4.613
4.861
4.382
BHEL
4.363
3.9
3.705
3.709
4.317
3.999
L&T
2.892
2.906
3.587
3.881
4.621
3.577
CORP
PROMOTERS SHAREHOLDING PATTERN

In this we take promoters portion in the shareholding. As promoters are main
owners or controllers of any company, they have in-depth knowledge of every
activity of the company. Also after the scam of Satyam Computer Services Ltd
investors are keener to know about the shareholding pattern. Also they are eager
to know the portion of promoters. So if company is not performing well, the
promoters will stop investing or holding their position in company. And that
thing can be understand by seeing reduction in shareholding pattern.
76
PROMOTERS SHAREHOLDING (%)

Companies
30-06-2011
31-03-2011
BAJAJ AUTO
50.02
50.02
49.66
49.9
HERO MOTO CORP
52.21
52.21
52.21
52.21
36.8
36.8
36.8
36.8
SUN PHARMA
63.72
63.72
63.72
63.72
10
HDFC
23.35
23.35
23.35
23.35
SBI
59.4
59.4
59.4
59.4
HUL
52.52
52.55
52.01
52.36
INFOSYS
16.04
16.04
16.04
16.04
TCS
74.08
74.05
74.05
74.06
12
BHEL
67.72
67.72
67.72
67.72
11
1.
CIPLA
ITC
L&T
31-12-2010 Average
Points
1.5
CHANGE IN PROMOTERS SHAREHOLDING (%)

Companies
30-03-2011-
31-12-2010-
Average
Points
31-06-2011
31-03-2011
BAJAJ AUTO
0.36
0.18
12
HERO MOTO CORP
CIPLA
SUN PHARMA
HDFC
SBI
HUL
0.03
-0.54
-0.255
ITC
INFOSYS
77
TCS
-0.03
-.015
BHEL
L&T
Ratio Analysis
Ratio analysis involves establishing financial relationship between components
of financial statements. Ratios are relationships expressed in mathematical
terms between the items of financial statements.
We are doing the fundamental analysis for the shareholders or investors
perspectives so many other ratios described below will help them to get better
investment ideas.
To do the fundamental analysis we had taken 12 ratios, Z Score Model, books
values, earning per shares and market capitalization of the last 5 financial year
starting from April 2005 to end on March 2009. In total we fundamentally
analyze 60 companies of 10 sectors of Indian Economy which divided top 6
companies from each sectors.
Ratios can be classified into the following categories:

Investment Valuation Ratios
Dividend per Share
Operating Profit per Share
Profitability Ratios
Net Profit Margin
Return on Capital Employed
Liquidity and Solvency Ratios
78
Current Ratio
Quick Ratio
Debt Equity Ratio
Debt Coverage Ratios
Total Debt to Owners Fund
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
Earning Retention Ratio
Adjusted Cash Flow Times
Investment valuation ratios

This analysis looks at a wide array of ratios that can be used by investors to
estimate the attractiveness of a potential or existing investment and get an idea
of its valuation. This ratio help the investors to value the firm (returns) in terms
of bonus, dividend, Net Profit per share their face values free reserves etc. In
short the return given or amount given to the shareholders or investors, shown
by this ratio
Dividend per Share or Dividend Yield
Dividend Yield= Annual Dividend per Share/Stock Price per Share
A stock's dividend yield is expressed as an annual percentage and is calculated
as the company's annual cash dividend per share divided by the current price of
the stock. The dividend yield is found in the stock quotes of dividend-paying
companies.
Dividend Per Share
COMPANIES
Bajaj Auto
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
Average
Points
40
40
22
20
40
32.4
11
Hero Moto Corp
105
110
20
19
17
54.2
12
Cipla
2.8
2.16
79
Sun Pharma
3.5
13.75
13.75
10.5
6.75
9.65
16.5
12
10
8.5
10.8
SBI
30
30
29
21.5
14
24.9
HUL
6.5
6.5
7.5
--
7.375
ITC
4.45
10
3.7
3.5
3.1
4.95
Infosys
60
25
23.5
33.25
11.5
30.65
10
TCS
14
20
14
14
11.5
14.7
31.15
23.3
17
15.25
24.5
22.24
14.5
12.5
10.5
17
13
13.5
HDFC
BHEL
L&T
Net Operating Profit per Share

Net Operating Profit per Share=Net Operating Profit after Tax (NOPAT) /Total
Share Capital. It shows the net profit which investors will going to earn on each
shares they held in the company.
Operating Profit per share
COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
112.4
173.02
75.64
75.01
131.39
113.49
10
123.21
137.4
87.79
68.5
60.19
95.418
15.96
17.2
16.02
10.96
10.57
14.142
1.48
12.14
3.9
9.59
-2.83
4.856
HDFC
160.36
106.25
92.36
107.32
86.19
110.5
SBI
255.39
229.63
230.04
173.61
147.72
207.28
12
HUL
91.18
81.45
63.75
82.61
ITC
27.29
48.63
39.7
37.23
32.73
37.116
146.56
128.3
120.59
86.78
73.98
111.24
44.82
34.06
61.52
51.35
43.95
47.14
174.35
122.49
85.43
76.54
144.84
120.73
11
96.55
84.42
70.72
110.81
71.77
86.854
Bajaj Auto
Hero Moto Corp
Cipla
Sun Pharma
Infosys
TCS
BHEL
L&T
94.06 --
80
Average Points
Profitability Ratios
Net Profit Margin (%)
Net Profit Margin= Net Income/Net Sales (Revenue)
Investors can easily see from a complete profit margin analysis that there are
several income and expense operating elements in an income statement that
determine a net profit margin. It behoves investors to take a comprehensive look
at a company's profit margins on a systematic basis.
Net Profit Margin

COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
19.8
14.23
7.4
8.32
12.66
12.482
9.8
14
10.3
9.27
8.58
10.39
Cipla
14.98
18.97
14.58
16.43
18.41
16.674
Sun Pharma
42.46
33.99
31.43
31.01
26.69
33.116
12
HDFC
16.09
14.76
11.35
12.82
13.57
13.718
SBI
8.55
10.54
12.03
11.65
10.12
10.578
HUL
11.56
12.29
12.09
--
12.58
12.13
ITC
22.91
21.3
21.18
21.5
21.4
21.658
Infosys
24.31
26.36
27.52
27.37
28.05
26.722
11
TCS
25.44
24.13
20.74
24.11
25
23.884
10
BHEL
13.99
12.55
11.36
13.87
13.51
13.056
8.82
11.56
10.06
8.54
7.74
9.344
Bajaj Auto
Hero Moto Corp
L&T
Average Points
Return on Capital Employed (ROCE)

Return on Capital Employed (ROCE)= Net Income/Capital Employed
Capital Employed = Average Debt Liabilities + Average Shareholders Equity
81
This measure narrows the focus to gain a better understanding of a company's

ability to generate returns from its available capital base.
Return on Capital Employed (%)
COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
Bajaj Auto
67.57
59.01
32.8
39.71
20.9
43.998
Hero Moto Corp
55.82
75.07
43.33
41.57
43.48
51.854
11
Cipla
16.22
22.16
22.39
18.17
23.4
21
17.05
24.57
24.21
16.83
HDFC
SBI
HUL
102.47
106.78
118.59
--
138.72
116.64 12
ITC
44.94
42.64
34.6
36.6
37.24
TCS
44.38
42.46
43.27
42.92
49.87
44.580
10
BHEL
44.25
41.37
36.95
41.56
42.84
41.394
L&T
22.35
22.49
24.14
26.72
29.82
25.104
Sun Pharma
Infosys
Average Points
20.468 4
20.732
39.204
7
2
Debt Coverage Ratios

Total Debt to Owners fund
Total Debt to Owners fund= Total Debt/Owners Fund
Owners fund = Total Assets - Current Liabilities - Long Term Loans
Total debt includes current liabilities and loans outstanding

This ratio indicates the liabilities and outstanding on the share capital or share
holders fund the more the ratio the less preference for investment is given by
the share holders and portfolio -manager.
Total debt to Owner's fund
COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
82
Mar'07
Average
Points
Bajaj Auto
0.07
0.46
0.84
0.84
0.29
0.5
0.5
0.02
0.02
0.04
0.07
0.13
Cipla
0.07
0.22
0.15
0.04
0.096
6.5
Sun Pharma
0.01
0.01
0.02
0.44
0.096
6.5
HDFC
8.22
7.78
9.75
8.76
10.62
9.026
14.37
12.19
12.81
10.96
13.92
12.85
0.2
0.06
0.052
0.01
0.01
0.01
0.02
0.02
0.014
TCS
0.01
0.01
0.01
0.01
0.01
0.01
10.5
BHEL
0.01
0.01
0.01
0.01
0.01
0.01
10.5
L&T
0.33
0.37
0.53
0.38
0.36
0.394
Hero Moto Corp
SBI
HUL
ITC
Infosys
12
Cash Flow Indicator Ratios
Dividend Payout Ratio

Dividend Payout Ratio= Total Dividend Payment/Net Profit
This ratio shows the yearly dividend paid by the company out of their net profit.
With the help of this ratio we can get the idea how much company keep the
profit for their own expansion and how much they give it to their shareholders.
Dividend Payout Ratio Net Profit
COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
40.27
39.63
56.72
44.78
38.24
43.928
126.39
115.04
36.45
45.86
46.29
74.006
11
Cipla
27.23
17.31
23.41
25.92
27.22
24.218
Sun Pharma
30.44
36.95
26.33
25.11
23.57
28.480
HDFC
22.72
21.72
22.16
22.16
22.91
22.334
SBI
26.03
23.36
22.9
22.64
18.98
22.782
HUL
71.2
75.2
76.47
--
131.8
88.668
12
ITC
80.24
109.63
50.06
49.45
50.53
67.982
10
Infosys
62.28
28.84
27.03
49.77
19.85
37.554
Bajaj Auto
Hero Moto Corp
83
Average Points
TCS
42.21
81.61
34.2
35.55
34.46
45.606
BHEL
29.52
30.9
31.02
30.54
28.67
30.130
L&T
25.15
19.72
20.58
26.29
30.04
24.356
Earnings retention ratio

It gives the percentage of a publicly-traded company's post-tax earnings that are
not paid in dividends. Most earnings retained are re-invested into the company's
operations. Tracking year-on-year earnings retention ratios is important to
fundamental analysis to investigate whether a company is increasing or
decreasing its rate of re-investment. The earnings retentions ratio is calculated
thusly:
Earning Retention Ratio= Net IncomeDividends/Net Income
Earning Retention Ratio
COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
46.73
62.55
53.79
56.41
52.71
54.438
-21.37
-25.86
60.01
47.19
46.62
21.318
Cipla
72.22
81.97
81.93
71.2
71.28
75.720
10
Sun Pharma
68.65
64.28
73.11
74.55
74.08
70.934
HDFC
77.29
78.25
77.79
77.83
77.11
77.654
12
SBI
74.03
76.67
77.11
77.33
80.97
77.222
11
HUL
22.71
21.25
18.5
--
-39.13
5.8325
ITC
17.06
-12.31
48.67
47.98
48.75
30.030
Infosys
37.34
70.67
74.6
50.17
79.91
62.538
TCS
57.73
19.37
70.74
62.47
64.34
54.930
BHEL
69.66
68.88
67.63
70.07
71.73
69.594
70.9
71.91
72.84
71.72
69.85
71.444
Bajaj Auto
Hero Moto Corp
L&T
84
Average Points
Adjusted Cash Flow

To determine the profitability value a business falls into, it is necessary to
determine the Adjusted Cash Flow of that business. The Adjusted Cash Flow
is equivalent to its earnings before interest, depreciation, and taxes (EBIDT
in accounting terms), plus additions or subtractions for owners salary,
discretionary, single occurrence, or non-cash expenses.
Adjusted Cash Flow Times

COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
Bajaj Auto
0.12
0.69
1.68
1.4
1.36
1.05
Hero Moto Corp
0.62
0.03
0.06
0.13
0.19
0.206
Cipla
0.38
0.81
0.76
0.17
0.424
Sun Pharma
0.04
0.03
0.02
0.1
1.73
0.384
47.14
50.14
54.91
54.14
42.6
49.786
11
100.71
79.54
75.05
72.64
84.87
82.562
12
--
--
0.17
--
0.05
0.11
0.02
0.02
0.05
0.06
0.07
0.044
--
--
--
--
--
TCS
0.01
0.01
0.01
0.01
0.008
BHEL
0.03
0.03
0.04
0.03
0.03
0.032
L&T
1.78
1.95
2.23
1.61
1.33
1.78
10
HDFC
SBI
HUL
ITC
Infosys
Average Points
Earnings Per Share

Earnings per Share=Profit after Tax/Weighted Average no of Equity Shares
Earnings per share shown the earning for the investor means per share how
much profit is earned by the investor shown with the help of this indicator. So,
85
it is obvious that the more the Earning per share more investors are interested
and better the company give to their shareholder.
Earnings Per Share
COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
115.42
117.69
45.37
52.25
122.35
90.616
10
Hero Moto Corp
96.55
111.77
64.19
48.47
42.96
72.788
Cipla
11.96
13.47
9.99
9.02
8.59
10.606
Sun Pharma
13.36
43.39
61.09
48.96
32.52
39.864
84.4
64.42
52.77
44.87
43.29
57.950
SBI
116.07
144.37
143.67
106.56
86.29
119.39
12
HUL
10.68
10.09
11.47
8.12
8.41
9.754
ITC
6.45
10.64
8.65
8.28
7.18
8.240
112.22
101.13
101.58
78.15
66.23
91.862
11
TCS
38.62
28.62
47.92
46.07
38.39
39.924
BHEL
122.8
88.06
64.11
58.41
98.66
86.408
L&T
65.01
72.66
59.45
74.35
49.53
64.200
Bajaj Auto
HDFC
Infosys
Average Points
Book Values
Book value is the accounting value of a firm. It has two main uses:
1. It is the total value of the company's assets that shareholders would
theoretically receive if a company were liquidated.
2. By being compared to the company's market value, the book value can
indicate whether a stock is under- or overpriced.
BOOK VALUE
COMPANIES
Mar'11
Mar'10
Mar'09
Mar'08
Mar'07
Average Points
Bajaj Auto
169.69
202.4
129.23
109.73
546.96
231.602
Hero Moto Corp
148.03
173.52
190.33
149.55
123.7
157.026
Cipla
82.25
73.55
55.86
48.2
41.52
60.276
Sun Pharma
64.51
276.08
248.72
203.15
126.58
183.808
86
HDFC
545.53
470.19
344.44
324.38
201.42
377.192
11
1,023.40
1,038.76
912.73
776.48
594.69
869.212
12
HUL
12.19
11.84
9.45
6.61
12.34
10.486
ITC
20.55
36.69
36.24
31.85
27.59
30.584
426.73
384.02
310.9
235.84
195.41
310.580
99.53
76.72
136.38
111.43
82.35
101.282
411.71
325.16
264.32
220.1
359.06
316.070
10
352.4
303.28
212.32
325.98
202.65
279.326
SBI
Infosys
TCS
BHEL
L&T
87
FINDINGS
Addition of above calculated ratios points
COMPANIES
DIVIDEND
OPERATING
NET
DEBT
DIVIDEND
PER
PROFIT PER
PROFIT
COVERAGE
PAYOUT
RETENTION
SHARE
SHARE
MARGIN
RATIO
RATIO
RATIO
ROIC
TOTAL
BAJAJ
11
10
50
CORP
12
11
11
50
CIPLA
6.5
10
34.5
PHARMA
12
6.5
41.5
HDFC
12
37
SBI
12
11
40
HUL
12
12
45
ITC
10
43
10
11
12
57
TCS
10
10
10.5
45.5
BHEL
11
10.5
56.5
L&T
36
AUTO
HERO
MOTO
SUN
INFOSYS
88
Addition of additional ratios points

ADJUSTED
Z SCORE
COMPANIES
BAJAJ
CHANGE IN
CASH
EARNING
PROMOTER'S
PROMOTER'S
FLOW
PER
BOOK
HOLDING
HOLDING
TIMES
SHARE
VALUE
12
AUTO
HERO
11
TOTAL
10
51
45
32
38
MOTO
CORP
CIPLA
SUN
10
PHARMA
HDFC
11
11
42
SBI
12
12
12
54
HUL
12
31
ITC
1.5
1.5
15
10
11
42
TCS
12
36
BHEL
11
10
48
L&T
1.5
1.5
10
34
INFOSYS
Overall rating Companies

TOTAL
companies
BAJAJ AUTO
TOTAL of
of first table
last table
ratios
ratios
50
grand total
51
101
89
ranking
HERO MOTO
50
45
95
CIPLA
35
32
67
11
SUN PHARMA
42
38
80
HDFC
37
42
79
SBI
40
54
94
HUL
45
31
76
ITC
43
15
58
12
INFOSYS
57
42
99
TCS
56
36
92
BHEL
57
48
105
L&T
36
34
70
10
CORP
INTERPRETATION OF TABLES
The points to the company in the particular ratio or test is given on the basis of
performance of the company in that particular test.12 is the highest point given
to any company and 1 is the lowest point.
Example- In earning per share the company having the highest earning per share
ratio is given 12 points and the company having lowest earning per share is
given 1 points.
The above 3 tables the summary of points given to the company on various tests
and ratios and the last table shows the aggregate marks given to the companies
on various test. On the basis of points the company scoring highest points is
given 1st rank i.e. BHEL, and the company scoring the least points is given 12 th
rank.
90
Findings & suggestions

CRITICAL SUCCESS FACTORS THAT COMES OUT OF THE
STUDY AS FOLLOWS
Importance of information- timely and accurately.
Responsiveness of the company.
Implementation.
Forecasting.
These all are helpful to increase the successive factors which find out
during the working positions.
Investors can also analysis the shareholding pattern of different
companies. The Experts in stock market speak that if foreign institutional
investors and Mutual Funds hold high percentage in total companys
share holding, company has good potential for growth. Because FIIs and
MFs have good research techniques to observer the companies financial
performance and thats why they are willing to invest for particular
companies in India, but in todays scenario when European market is
crashing due to debt crisis, investors holding those shares which some
FIIS are holding will lead to greater risk, as any time the FIIS can sell of
their shares and due to huge selling the price of shares will crash.
While preparing the portfolio, the investors should consider Midcap
companies also, if they are providing good returns. The portfolio of the
investors should be diversified in such a way that it consist the whole
91
market behaviour i.e. it should have qualities of Large cap, Small cap as
well as Midcap companies.
LIMITATIONS OF PROJECT
Insufficient time because of this limit period, I have chosen only twelve
companies which is giving good return. But in market there are lots of
securities which offering more return as comparing with selected
securities. So, that could not be find out from the overall point of view
best investment opportunities in selected companies from that sector.
Due to insufficient data given in the financial statement, some financial
ratio could not be found out.
Indian stock market is not stable. It keeps on fluctuating so ratio derived
today may not consider as useful tool of valuation tomorrow.
As the study is depending on the information from the different sources,
the reliability of study is depending on the reliability of information.
92
BIBLIOGRAPHY
BOOKS
Investment analysis and portfolio management Prasanna Chandra
Research methodology -C.R. Kothari, VIKASH PUBLICATION.
Investors point news-IIFL
WEBSITES
http://www.nseindia.com/
http://www.bseindia.com/
http://economictimes.indiatimes.com/
http://www.investopedia.com/
TV- CHANNELS:
Ndtv-Profit
93
Cnbc-Awaz
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Fundamental Analysis of Various Competitors of Stock Market

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A

Overview of Indian stock market

Main purpose of investment is returns and liquidity, share market is less

CRITICAL SUCCESS FACTORS THAT COMES OUT OF THE

Objective is to do fundamental analysis of 12 companies of 6 different sectors

INTRODUCTION TO INDIAN STOCK

CAPITAL MARKET REFORMS AND DEVELOPMENTS

INTRODUCTION TO STOCK MARKET

PROMINENT STOCK EXCHANGES IN INDIA

2. NSE (National Stock Exchange): It is the largest stock exchange in India in

WHAT ARE STOCKS?

HOW TO TRADE IN STOCKS?

INTRODUCTION TO FUNDAMENTAL ANALYSIS

WHAT IS FUNDAMENTAL ANALYSIS?

Is management trying to "cook the books"?

FUNDAMENTALS: QUANTITATIVE AND QUALITATIVE

QUANTITATIVE MEETS QUALITATIVE

THE CONCEPT OF INTRINSIC VALUE

CRITICISMS OF FUNDAMENTAL ANALYSIS

fundamentals. While it is possible to use both techniques in combination, one of

QUALITATIVE FACTORS - THE COMPANY

In this section we are going to highlight some of the company-specific

QUALITATIVE FACTORS - THE INDUSTRY

The four stages of an economic cycle are:

Electrical machinery & apparatus n.e.c. posted 46% reduction in output

Inflation Rate in India

India Inflation Rate Chart (in %)

16.22 14.86 14.86 13.33 13.91 13.73 11.25 9.88

11.89 11.72 11.64 11.49 13.51 14.97

10.45 10.45 9.70

Inflation in India in Future

June 17, 2011

Money supply was 68,122.86 billion rupees as of July 1, compared with

Foreign Exchange Reserves

Foreign exchange reserve as on October 2011

1.HERO MOTO CORP

HERO MOTO CORP P&L

------------------- in Rs. Cr. ------------------Mar '11

Power & Fuel Cost

Other Manufacturing Expenses

Selling and Admin Expenses

Preoperative Exp Capitalised

Other Written Off

Profit Before Tax

PBT (Post Extra-ord Items)

Reported Net Profit

Total Value Addition

Corporate Dividend Tax

Shares in issue (lakhs)

Earning Per Share (Rs)

Equity Dividend (%)

Book Value (Rs)

Per share data (annualised)

HERO MOTO CORP

------------------- in Rs. Cr. ------------------Mar '11

Total Share Capital

Equity Share Capital

Share Application Money

Preference Share Capital

Less: Accum. Depreciation

Capital Work in Progress

Cash and Bank Balance

Total Current Assets