E2018 IJRAR July 2018, Volume 5, Issue 3 ...ijrar.org/papers/IJRAR1903212.pdf2016 2.82 3.34 4.80 2017 3.30 4.44 5.32 5. FINDINGS AND SUGGESTIONS 5.1 Findings: - In EPS Ratio TCS was

© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)

IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 663

“FUNDAMENTAL ANALYSIS OF SELECTED

STOCKS IN INDIAN STOCK MARKET”

Iwansh A. Christian

Research Scholar, Shri D.N. Institute of PG Studies in Commerce,

Anand – 388001. (Gujarat – India).

Dr. JayeshPoojara

Research Guide &Principal, Shri D.N. Institute of PG Studies in Commerce,

Anand – 388001. (Gujarat – India).

Abstract:

The main reason of this paper is to seek out right approach to

the analysis of exchange common in Asian nation and assume that moment during which Indian

investors had higher take action by victimization totally

different strategies throughout positive amount of your time. in addition I took at totally

different angles as well as the inspiration to get, dangers and therefore the equivocation practices

in Indian securities exchanges. This paper appearance at the investors' esteem is computed by

utilizing the financial proportions supported chosen organizations. Financial gain articulation,

accounting report and wage sheet amid specific day and age. I notice comparable results for

chosen companies.

Keywords: Fundamental Analysis, Stock Market.

1. INTRODUCTION

Before purchasing a stock in showcase we generally consider its future execution whether it

will produce salary or not in the coming future if this will create pay we give first inclination

to purchase that specific stock however in the event that this will doesn't create pay we don't

purchase. In other words before buying stock our prediction says yesthat will grow in

futurethen we decide to hold stock this is the common thinking of most of all investors but

for a value investor should not depend only prediction and they not always worry about the

present market price of specific stock.Financial specialist should first attempt to know the

stock is overestimated, disparaged or effectively esteemed in the share trading system.For

this investigation redress sensible estimation of a particular stock I track essential

examination in addition to central examination dependably give reasonable estimation of

specific stock in money markets.

It generally fitting carryout basic examination or research before making an offer in any

stock or any securities. For instance give a genuine case when we buy shoes from advertise

we wear it no less than two three times. We likewise check it is agreeable or not by strolling



two-three times in the event that we take mind by purchasing such a little thing why we are

so easygoing in interest in securities exchange. Well one reason is we don't comprehend

what key investigation is or how to do major examination of the specific stock. In the event

that this is the money so this paper is for those which are don't recognize what major

investigation is. I attempt my best for disclose how to do crucial examination improved the

situation any stock.In simple word Fundamental Analysis will support you to taking

decision.

What is Fundamental Analysis?

Fundamental Analysis = Fundamental value of the stock

For done any Fundamental Analysis you want to analysis a lot of data like CorporateModel,

Product Range, Competition, Financials, Historical Performance and Upcoming Prospects

which helps investors to making decisions.

How to do Fundamental Analysis.

- Cash Flow Statement

- Income Statement

- Balance Sheet

2. COMPANY PROFILE

For this study I have selected total 3 companies for Fundamental Analysis. This

companies is first 3 company of Top ten companies in Indian Stock market in other word

this companies also known as Blue Chip Companies is:

1. TCS

2. ITC Ltd.

3. HDFC Bank

Fundamental Analysis

Financial Statement

Revenue Growth Expense



1. TCS (Tata Consultancy Services):

- Founded in 1968 by division of Tata Sons Limited (50 years ago)

- Headquarters : Mumbai, Maharashtra.

- Operates : 46 countries.

- Type : Public.

- Services : IT, Business Consulting.

- Market Cap : ₹ 540920.24 Cr.

- Current Price : ₹ 2825.7

- Book value : ₹ 549.39

- Stock P/E : ₹ 21.15

- Face Value : ₹ 1

- Listed on : BSE and NSE.

2. ITC

- Founded : 24 August, 1910.

- Headquarters : Kolkata, West Bengal.

- Type : Public.

- Products : Consumer goods, Tobacco, Hotels, Papers.

- Market Cap : ₹ 317793.54 Cr.

- Current Price : ₹ 260.5

- Book Value : ₹ 43.96

- Stock P/E : ₹ 29.74

- Face Value : ₹ 1

- Listed on : BSE and NSE

3. HDFC Bank Ltd.:

- Founded : August, 1994.

- Headquarters : Mumbai, Maharashtra, India.

- Operates : India.

- Type : Public.

- Products : Consumer Banking, Corporate Banking, Insurance.

- Market Cap : ₹ 480623.88 Cr.

- Current price : ₹ 1853.

- Book Value : ₹ 393.83.

- Stock P/E : ₹ 28.82.

- Face Value : ₹ 2.

- Listed on : BSE and NSE.



3. RESEARCH METHODOLOGY

3.1Time period of the Study:

- Time period of the study: i.e. 2015-2017.

3.2 Objectives of the Study:

- Following are the main objectives of the this fundamental analysis

1. To briefly understand the TCS, ITC and HDFC Bank ltd.

2. To classify the supreme stock in this tree Blue Chip Companies.

3. To do Fundamental Analysis of chose Stock in securities exchange.

4. To identify most appropriate stock from value investors.

3.3 Source of Data Collection:

- Information mainly collected from selected company’s website, moneycontrol.com, NSE

and BSE websites etc.

- Balance sheet of selected companies.i.e. TCS, ITC Ltd. And HDFC Bank.

3.4 Choice of Analysis:

- To investigation of individual stock investigator generally lean toward Fundamental

Analysis.

- Ratio Analysis

EPS (Earning Per Share)

Dividend Per Share

Net Operating Profit Per Share

Total Book Value

3.5 Limitations of the study:

- Could not be enough to predict the future price movement.

- Only 3 years undertaken for this study.

- This study can be used only for short term decision making.

- Only 3 company selected for this study.

4. DATA ANALYSIS

1. EPS (Earning Per Share):



[VALUE]

[VALUE] 120.04

11.99 12.23 8.4

38.0444.9 46.85

0

20

40

60

80

100

120

140

2015 2016 2017

EPS (Earning Per Share)

TCS

ITC

HDFC

𝑬𝑷𝑺 =Net Income

Number of Shares

Year TCS ITC HDFC

2015 98.31 11.99 38.04

2016 117.11 12.23 44.90

2017 120.04 8.40 46.85

2. Dividend Per Share:

𝑫𝑷𝑺 =𝑇𝑜𝑡𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠

Total Number of Shares

Year TCS ITC HDFC

2015 79 6.25 15

2016 43.50 8.50 17

2017 47 4.75 18



3. Net Operating Profit per Share (Rs. in cr.)

𝑁𝑂𝑃𝑆 =Net Operating Income

Total Number of Shares

Year TCS ITC HDFC

2015 375.64 45.55 174.01

2016 435.76 45.78 195.62

2017 470.42 33 208.43

79

43.547

6.25 8.5 4.75

15 17 18

0

10

20

30

40

50

60

70

80

90

2015 2016 2017

Dividend Per Share

TCS

ITC

HDFC

375.64

435.76470.42

45.55 45.78 33

174.01195.62 208.43

0

50

100

150

200

250

300

350

400

450

500

2015 2016 2017

Net Operating Profit per Share

TCS

ITC

HDFC



4. Total Book Value:

𝑇𝐵𝑉 =Book Value

𝐸𝑃𝑆

Year TCS ITC HDFC

2015 2.36 3.19 5.17

2016 2.82 3.34 4.80

2017 3.30 4.44 5.32

5. FINDINGS AND SUGGESTIONS

5.1 Findings:

- In EPS Ratio TCS was the best perform by 2015-98.31, 2016-117.11 and 2017-12.04.

- In Dividend per Share Ratio ITC is not perform well by 2015-6.25, 2016-8.50 and 2017-

4.75.

- In Net Operating Profit per Share Ratio HDFC is also need to improve performance by

2015-174.01, 2016-195.62 and 2017-208.43.

- Total Book Value is mostly competitive in this three big cap companies.

- In overall performance TCS is the best stock for value of investors.

5.2 Suggestions:

- In Earning perShare Ratio ITC needs to improve to perform well in future.

- In Dividend per Share TCS perform well with the comparison of other two companies.

- Overall analysis says that TCS is the finest stock for investors and ITC and HDFC needs

to improve their performance in future.

- TCS is the perfect stock of investment and TCS give best value to investors.

2.362.82

3.3

3.19 3.344.44

5.174.8 5.32

0

1

2

3

4

5

6

2015 2016 2017

Total Book Value

TCS

ITC

HDFC



6. CONCLUSION

In Indian capital market without Fundamental examination there is hazard to underwrite in

any stock. In any case, In India Stock market had a decent and incredible execution in past

yet there is hazard to contribute on the premise on past execution that is I think about this

investigation for financial specialist in India. I for the most part pick this three organizations

or in other word to state top three organizations in India. At whatever point financial

specialist consider venture there need to some investigation for specific stock like

organization's situation in advertise and past execution. Additionally Fundamental Analysis

demonstrates the genuine estimation of the organization. In this my examination I

discovered TCs is the best stock for speculation Indian securities exchange and other two

organizations ITC and HDFC bank needs to perform well in future. I have attempted to

demonstrate the best stock or best organizations for interest in Indian securities exchange

and furthermore demonstrate the best organization in every one of the 3 organizations.

References:-

1) Ahmed S.Wafi, Hassan Hassan, Adel Mabrouk, “ Fundamental Analysis Models in

Financial markets- Review Study”

2) Ajit Kumar, “who gets what’s? Shareholder value of Acquires and Targets in Indian

takeover”

3) GopikishnaSuvanam&AmitTrivedi, “Imbalance created because of Structured product in

Indian equity Markets”

4) Piyush Kumar, N.R.Govida Sharma, “ Fundamental Analysis of a selected stock in

capital market industry”

5) VernikaCaljRusic, univ,bacc.oec, “ Fundamental and Technical Analysis on stock

market”

Webliography:

- www.google.com

- www.wikipedia.org

- www.investopedia.org

- www.screener.in

- www.moneycontrol.com

- www.nseindia,com

- www.profit.ndtv.com

- www.economictimes.com

http://www.google.com/

http://www.wikipedia.org/

http://www.investopedia.org/

http://www.screener.in/

http://www.moneycontrol.com/

http://www.nseindia,com/

http://www.profit.ndtv.com/

http://www.economictimes.com/

Documents

E2018 IJRAR July 2018, Volume 5, Issue 3 ...ijrar.org/papers/IJRAR1903212.pdf2016 2.82 3.34 4.80 2017 3.30 4.44 5.32 5. FINDINGS AND SUGGESTIONS 5.1 Findings: - In EPS Ratio TCS was