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1
A
Project Report
On
“Fundamental analysis of top competitors of various sectors
in SENSEX
At
PVDS Financial Services.
2
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:
3
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.
4
PREFACE
Winter training cum project is the integral part of Management Course. Theoretical
knowledge only provides basic concept about the study. It doesn’t 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.
5
TABLE OF CONTENTS
S.NO. PARTICULARS PAGE
NO.
1 Executive Summary 7
2 Company Profile 9
3 Objective 11
4 Research methodology 12
5 Introduction
Overview of Indian stock market
Capital market reforms
Prominent stock exchanges in India
Introduction to fundamental analysis
Concept of intrinsic value
Economic cycle
13
6 Updates of economy 30
7 Company Analysis 37
8 Findings 88
9 Interpretations 90
10 Suggestions 91
11 Limitations 92
12 Bibliography 93
6
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 broker’s working process, So this helps in understanding how
practically the market works and in this project I’ve tried to explain some basic
concepts that most investors take for granted but that are crucial knowledge for
7
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 company’s
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 ratio’s 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 reader’s 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”
8
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.
9
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:
11
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
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
12
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
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
13
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 country’s 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
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
14
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 world’s most advanced secondary
markets within a year or two. The key ingredients that underlie market quality
in India’s 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
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 India’s stock exchanges have adopted
open electronic limit order.
15
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.
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
16
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
2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh crore)
which is one-tenth of the combined valuation of the Asia region. The market
was slow since early 2007 and continued till the first quarter of 2009.
A stock exchange has been defined by the Securities Contract (Regulation)
Act, 1956 AS AN ORGANIZATION, ASSOCIATION OR BODY OF
INDIVIDUALS ESTABLISHED FOR REGULATING, AND
CONTROLLING OF SECURITIES.
17
PROMINENT STOCK EXCHANGES IN INDIA
When an investor starts investing in the stocks or the commodity market he has
some prominent exchanges to invest in. Few important ones are as follows:
1. BSE (Bombay Stock Exchange): BSE is the oldest stock exchange in Asia
and has the greatest number of listed companies in the world, with 4700 listed
as of August 2007. Here the trading in stocks takes place. It is located at Dalal
Street, Mumbai, India. On 31 December 2007, the equity market capitalization
of the companies listed on the BSE was US$ 1.79 trillion, making it the largest
stock exchange in South Asia and the 12th largest in the world. BSE’s 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
August 2009) and is expected to become the biggest stock exchange in India in
terms of market capitalization by 2009 end. NSE’s 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
18
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
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
19
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 security’s 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 company’s 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?
• 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 company’s 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
20
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 doesn’t 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 company’s 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 isn’t 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.
In our context, quantitative fundamentals are numeric, measurable
characteristics about a business. It’s 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 company’s board members and key executives, its brand-name recognition,
patents or proprietary technology.
QUANTITATIVE MEETS QUALITATIVE
21
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 stock’s 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. It’s
tough to put your finger on exactly what the Coke brand is worth, but you can
be sure that it’s an essential ingredient contributing to the company’s 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 stock’s “real” value. After all, why would you be
doing price analysis if the stock market were always correct? In financial
jargon, this true value is known as the intrinsic value. For example, let’s say that
a company’s 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
22
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 don’t know if your estimate of intrinsic value is correct; and
2) You don’t 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.
We’re 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
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 stock’s 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
23
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 market’s 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.
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
24
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
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
25
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.
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
26
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,
'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
27
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.
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.
28
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
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
29
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.
Updates of economy
Indian Economy
Index of Industrial Production
30
IIP 2010
The Quick Estimates of Index of Industrial Production (IIP) has base year 1993-
94 for the month of April 2010. The revised annual growth for the period April-
March 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 sub-
sector expanded by 4.5% in August 2011, similar to the 4.7% growth recorded
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
31
August 2011 as well as various regulatory issues that have affected the sector in
the recent months
Industrial output decelerates sharply in Jul’11: India’s Index of Industrial
Production (IIP) growth declined to a 20-month low of 3.3% for the
month of July’11 primarily because of poor performance of capital goods
and manufacturing sector. Consequently, cumulative IIP growth during
Apr-Jul’11 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 ul’11 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 Jul’11 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 Jul’11, the steepest
after 23 months. In fact, it is the only sector posted a double digit
negative growth in Jul’11. Capital goods production continued to be
volatile compared to 38.2%
Growth a month ago and 40.7% a year ago. Cumulative growth during
AprJul’11 stood at 7.6% against 23.1% in the respective months of 2010.
Consumer goods, however, recovered to accelerate significantly to 6.2%
in Jul’11 from 2.3% in Jun’11 and 5.8% J ul’10.
Consumer durables registered healthy growth of 8.6% in J ul’11 against
1.5% in Jun’11, but remained lower than 14.8% observed in Jul’10. 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.
32
Basic goods’ growth improved significantly to 10.1% in Jul’11 from
7.5% in Jun’11 and 4.4% of J ul’10. On the other hand, Intermediate
goods went into negative zone and stood at -1.1% in J ul’11 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 Jul’11
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 Jul’11. 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 Jul’11.
33
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 the total domestic economy.
India Inflation Rate Chart (in %)
Year Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
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 9.70 8.33 9.47
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 5.47 7.87 7.81 7.75 7.69 8.33 9.02 9.77 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
34
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 short-
lasting 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.
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 June 17, 2011 July 2, 2010
17.1 17.1 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
35
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.
Foreign exchange reserve as on October 2011. Foreign Exchange Reserves
Item
As on Oct. 7, 2011
Variation over
Week End-March 2011End-December
2010Year
` CroreUS$ Mn.
` CroreUS$ Mn.
` CroreUS$ Mn.
` CroreUS$ Mn.
` CroreUS$ Mn.
1 2 3 4 5 6 7 8 9 10
Total Reserves 15,33,698 3,12,231 9,617 749 1,72,684 7,413 2,01,344 14,897 2,19,863 16,439
(a) Foreign Currency
Assets +13,58,533 2,76,462 9,537 763* 1,33,650 2,132 1,58,456 8,648 1,68,704 8,362
(b) Gold $ 1,40,266 28,667 — — 37,694 5,695 39,580 6,197 48,109 8,151
(c) SDRs @ 22,087 4,495 51 –9 1,686 –74 –666 –583 –851 –673
(d) Reserve Position in
the IMF**12,812 2,607 29 –5 –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.
36
@ 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.
Company analysis
1.HERO MOTO CORP
SCRIP ID : HEROMOTOCO
SCRIP CODE: 500182
GROUP: A
INDEX: SENSEX
INDUSTRY: 2/3 WHEELERS
FACE VALUE: 2
HERO MOTO CORP P&LProfit & Loss account of Hero Motocorp ------------------- in Rs. Cr. -------------------
37
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Income
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
Expenditure
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 0 885.03 669.98 563.27 558.99
Miscellaneous Expenses 1,824.65 280.64 205.9 190.36 206.11
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 16,808.83 13,084.39 10,594.45 8,963.10 8,707.19
Operating Profit
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 0 0 0 0 0
Profit Before Tax 2,404.76 2,831.73 1,781.46 1,410.28 1,246.10
Extra-ordinary items 0 0 0 0 0
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 0 0 0 0 0
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
Per share data (annualised)
Shares in issue (lakhs) 1,996.88 1,996.88 1,996.88 1,996.88 1,996.88
38
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
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
Sources Of Funds
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 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 2,916.12 3,425.08 3,760.81 2,946.30 2,430.12
Revaluation Reserves 0 0 0 0 0
Networth 2,956.06 3,465.02 3,800.75 2,986.24 2,470.06
Secured Loans 1,458.45 0 0 0 0
Unsecured Loans 32.71 66.03 78.49 132 165.17
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
Application Of Funds
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
39
Fixed Deposits 0 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 0 0 0 0 0
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
Miscellaneous Expenses 0 0 0 0 0
Total Assets
4,447.22 3,531.05 3,879.24 3,118.24 2,635.23
2. BAJAJ AUTO LIMITED
SCRIP ID : BAJAJAUT
SCRIP CODE: 532977
GROUP: A
INDEX: SENSEX
INDUSTRY: 2/3 WHEELERS
FACE VALUE: 2
BAJAJ AUTO P&LProfit & 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
Expenditure
Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50
40
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
Other Manufacturing Expenses 61.77 57.54 57.08 53.72 74.53
Selling and Admin Expenses 450.18 407.61 381.73 390.15 457.17
Miscellaneous Expenses 237.76 221.94 225.56 209.63 230.89
Preoperative Exp Capitalised -16.66 -15.67 -14.42 -23.04 -32.05
Total Expenses
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 0 0 0 1.12 0.39
Profit Before Tax 4,306.77 2,400.28 939.07 1,075.24 1,701.06
Extra-ordinary items 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
Total Value Addition 1,313.99 1,153.53 1,077.51 1,049.75 1,119.95
Preference Dividend 0 0 0 0 0
Equity Dividend 1,157.47 578.73 318.3 289.37 404.73
Corporate Dividend Tax 187.77 96.12 54.1 49.18 68.78
Per share data (annualised)
Shares in issue (lakhs) 2,893.67 1,446.84 1,446.84 1,446.84 1,011.84
Earning Per Share (Rs) 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
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
Sources Of Funds
Total Share Capital 289.37 144.68 144.68 144.68 101.18
Equity Share Capital 289.37 144.68 144.68 144.68 101.18
Share Application Money 0 0 0 0 0
41
Preference Share Capital 0 0 0 0 0
Reserves 4,620.85 2,783.66 1,725.01 1,442.91 5,433.14
Revaluation Reserves 0 0 0 0 0
Networth 4,910.22 2,928.34 1,869.69 1,587.59 5,534.32
Secured Loans 23.53 12.98 0 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
Application Of Funds
Gross Block 3,395.16 3,379.25 3,350.20 2,994.68 3,178.54
Less: Accum. Depreciation 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
Capital Work in Progress 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
Cash and Bank Balance 155.45 100.2 135.68 54.74 62.16
Total Current Assets 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
Total CA, Loans & Advances 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25
Deffered Credit 0 0 0 0 0
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
Total CL & Provisions 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
Miscellaneous Expenses 0 0 183.3 0 0
Total Assets
5,235.37 4,266.92 3,439.69 2,921.93 7,159.75
3.CIPLA
SCRIP ID : CIPLA
SCRIP CODE: 500087
GROUP: A
42
INDEX: SENSEX
INDUSTRY: PHARMACEUTICALS
FACE VALUE: 2
CIPLA P&LProfit & 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
Income
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
Expenditure
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 0 885.03 669.98 563.27 558.99
Miscellaneous Expenses 1,824.65 280.64 205.9 190.36 206.11
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 16,808.83 13,084.39 10,594.45 8,963.10 8,707.19
Operating Profit
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 0 0 0 0 0
Profit Before Tax 2,404.76 2,831.73 1,781.46 1,410.28 1,246.10
Extra-ordinary items 0 0 0 0 0
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
43
Total Value Addition 2,585.89 2,261.40 1,752.31 1,497.74 1,451.53
Preference Dividend 0 0 0 0 0
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
Per share data (annualised)
Shares in issue (lakhs) 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
Sources Of Funds
Total Share Capital
160.58 160.58 155.46 155.46 155.46
Equity Share Capital 160.58 160.58 155.46 155.46 155.46
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 6,443.40 5,744.54 4,186.32 3,591.39 3,071.84
Revaluation Reserves 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
Total Liabilities
7,054.34 5,919.16 5,290.99 4,336.35 3,359.83
44
Application Of Funds
Gross Block 3,929.00 2,895.44 2,693.29 2,201.79 1,799.71
Less: Accum. Depreciation 1,060.98 884.27 700.8 540.43 411.64
Net Block 2,868.02 2,011.17 1,992.49 1,661.36 1,388.07
Capital Work in Progress 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
Sundry Debtors
1,497.04 1,552.71 1,837.15 1,393.91 1,028.78
Cash and Bank Balance 83.56 60.32 52.84 79.12 56.33
Total Current Assets 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
Total CA, Loans & Advances 6,022.56 5,483.42 4,419.57 3,743.98 2,834.68
Deffered Credit 0 0 0 0 0
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
Total CL & Provisions 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
Miscellaneous Expenses 0 0 0 0 0
Total Assets 7,054.34 5,919.16 5,290.99 4,336.35 3,359.83
4. SUN PHARMASCRIP ID : SUNPHARMA
45
SCRIP CODE: 524715
GROUP: A
INDEX: SENSEX
INDUSTRY: PHARMACEUTICALS
FACE VALUE: 1
Profit & Loss account of Sun
Pharmaceutical Industries
------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 1,985.78 1,891.16 2,833.65 2,427.35 1,722.13
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
Expenditure
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
Other Manufacturing Expenses 62.81 52.9 43.93 35.21 25.08
Selling and Admin Expenses 505.7 439.11 494.98 415.35 370.2
Miscellaneous Expenses 27.69 31.92 18.06 14.62 18.85
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses 1,778.51 1,624.48 2,717.61 2,187.35 1,758.62
Operating Profit
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 0 0 0 0 0
Profit Before Tax 1,454.02 947.59 1,295.41 1,052.20 640.54
46
Extra-ordinary items 0 1.57 11.7 0 -0.05
PBT (Post Extra-ord Items) 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
Total Value Addition 849.66 746.02 755.72 622.74 544.14
Preference Dividend 0 0 0 0.05 0.08
Equity Dividend 362.45 284.79 284.79 217.47 130.01
Corporate Dividend Tax 58.8 47.3 48.4 37.2 18.25
Per share data (annualised)
Shares in issue (lakhs) 10,355.82 2,071.16 2,071.16 2,071.16 1,934.02
Earning Per Share (Rs) 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
SUN PHARMA LIMITED.
Balance Sheet of Sun Pharmaceutical
Industries
------------------- 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 103.56 103.56 103.56 103.56 98.07
Equity Share Capital 103.56 103.56 103.56 103.56 96.7
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 1.37
Reserves 6,576.97 5,614.42 5,047.86 4,104.06 2,351.42
Revaluation Reserves 0 0 0 0 0
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 0 0 0 79.64 1,047.76
47
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
Application Of Funds
Gross Block 1,268.76 1,159.76 1,061.90 935.03 838.7
Less: Accum. Depreciation 474.37 419.24 362.64 304.99 249.41
Net Block 794.39 740.52 699.26 630.04 589.29
Capital Work in Progress 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
Cash and Bank Balance 23.22 26.11 20.17 23.29 35.69
Total Current Assets 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
Total CA, Loans & Advances 2,989.66 1,694.04 2,743.66 2,911.62 2,191.88
Deffered Credit 0 0 0 0 0
Current Liabilities 449.37 388.45 696.34 845.73 345.23
Provisions 433.1 342.48 342.1 262.79 7.7
Total CL & Provisions 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
Miscellaneous Expenses 0 0 0 0 0
Total Assets 6,731.06 5,747.47 5,175.02 4,310.14 3,517.64
5. HDFC BANKSCRIP ID : HDFC BANK
SCRIP CODE: 500180
GROUP: A
INDEX: SENSEX
INDUSTRY: BANKS
FACE VALUE: 2
48
HDFC P&LProfit & 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
Income
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
Expenditure
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
Selling and Admin Expenses 2,510.82 3,395.83 2,851.26 974.79 727.53
Depreciation 497.41 394.39 359.91 271.72 219.6
Miscellaneous Expenses 5,205.97 3,169.12 3,197.49 3,295.22 2,113.28
Preoperative Exp Capitalised 0 0 0 0 0
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
Total Expenses
20,435.32 17,034.82 17,557.96 10,730.20 7,016.72
Net Profit for the Year 3,926.40 2,948.70 2,244.94 1,590.18 1,382.54
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 0 0 0 0 0
Equity Dividend 767.62 549.29 425.38 301.27 223.57
Corporate Dividend Tax 124.53 91.23 72.29 51.2 38
Per share data (annualised)
Earning Per Share (Rs) 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
49
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share Capital 465.23 457.74 425.38 354.43 319.39
Equity Share Capital 465.23 457.74 425.38 354.43 319.39
Share Application Money 0 0 400.92 0 0
Preference Share Capital 0 0 0 0 0
Reserves 24,914.04 21,064.75 14,226.43 11,142.80 6,113.76
Revaluation Reserves 0 0 0 0 0
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
Assets
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 0 0 0 0 0
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. SBISCRIP ID : SBI
SCRIP CODE: 500112
GROUP: A
INDEX: SENSEX
INDUSTRY: BANKS
FACE VALUE: 2
50
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
Income
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
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
Selling and Admin Expenses 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
Miscellaneous Expenses 12,479.30 7,888.00 8,810.75 7,058.75 7,173.55
Preoperative Exp Capitalised 0 0 0 0 0
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
Net Profit for the Year
B30- 9,166.05 9,121.23 6,729.12 4,541.31
Extraordionary Items 0 0 0 0 0
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
Preference Dividend 0 0 0 0 0
Equity Dividend 1,905.00 1,904.65 1,841.15 1,357.66 736.82
Corporate Dividend Tax 246.52 236.76 248.03 165.87 125.22
Per share data (annualised)
Earning Per Share (Rs) 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
Capital and Liabilities:
51
Total Share Capital 635 634.88 634.88 631.47 526.3
Equity Share Capital 635 634.88 634.88 631.47 526.3
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 64,351.04 65,314.32 57,312.82 48,401.19 30,772.26
Revaluation Reserves 0 0 0 0 0
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
Total Liabilities
12,23,736.20 10,53,413.73 9,64,432.08 7,21,526.31 5,66,565.25
Assets
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
Total Assets
12,23,736.20 10,53,413.74 9,64,432.08 7,21,526.32 5,66,565.24
7.HUL LTD.
SCRIP ID : HUL
SCRIP CODE: 500696
GROUP: A
INDEX: SENSEX
INDUSTRY: PERSONAL
PRODUCTS
FACE VALUE: 1
52
HUL LTD P&LProfit & 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
Income
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
Expenditure
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
Other Manufacturing Expenses 551.25 412.19 297.34 204.1 187.37
Selling and Admin Expenses
4,366.30 3,737.52 3,857.48 2,561.12 2,328.51
Miscellaneous Expenses 672.61 656.57 985.31 691.49 541.52
Preoperative Exp Capitalised
0 0 0 0 0
Total Expenses 17,320.50 14,990.89 17,973.67 11,966.19 10,568.30
Operating Profit
2,664.49 2,797.70 2,964.94 2,076.43 1,805.69
PBDIT 3,103.97 2,997.43 3,241.48 2,504.80 2,318.29
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 0 0 0 0 0
Profit Before Tax 2,882.90 2,806.42 3,020.86 2,340.94 2,177.40
Extra-ordinary items -3.06 43.97 48.53 1.67 -0.21
PBT (Post Extra-ord Items) 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
53
Total Value Addition 6,826.17 5,986.92 6,593.62 4,423.41 3,881.00
Preference Dividend 0 0 0 0 0
Equity Dividend 1,410.60 1,417.94 1,634.51 1,976.12 1,325.48
Corporate Dividend Tax 231.36 238.03 277.79 355.5 185.9
Per share data (annualised)
Shares in issue (lakhs)
21,594.72 21,816.87 21,798.76 21,774.63 22,067.76
Earning Per Share (Rs) 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
Sources Of Funds
Total Share Capital 215.95 218.17 217.99 217.75 220.68
Equity Share Capital 215.95 218.17 217.99 217.75 220.68
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 2,417.30 2,364.68 1,842.85 1,220.82 2,502.14
Revaluation Reserves 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 0 0 144.65 25.52 37.13
Unsecured Loans 0 0 277.3 63.01 35.47
Total Debt 0 0 421.95 88.53 72.6
Total Liabilities 2,633.92 2,583.52 2,483.46 1,527.77 2,796.09
Application Of Funds
Gross Block 3,759.62 3,581.96 2,881.73 2,669.08 2,462.69
Less: Accum. Depreciation 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
Capital Work in Progress 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
54
Sundry Debtors 943.2 678.44 536.89 443.37 440.37
Cash and Bank Balance 281.91 231.37 190.59 200.11 170.8
Total Current Assets 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
Total CA, Loans & Advances 6,494.19 5,818.89 6,040.05 3,681.11 3,555.09
Deffered Credit 0 0 0 0 0
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
Total CL & Provisions 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
Miscellaneous Expenses 0 0 0 0 0
Total Assets
2,633.92 2,583.52 2,483.46 1,527.76 2,796.09
8. ITC LTD.SCRIP ID : ITC
SCRIP CODE: 500875
GROUP: A
INDEX: SENSEX
INDUSTRY: CIGARETTES,TOBACCO
PRODUCTS
FACE VALUE: 1
ITC LTD P&LProfit & 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
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
55
Total Income 22,205.01 18,664.96 16,042.32 14,581.16 12,913.01
Expenditure
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
Other Manufacturing Expenses 560.57 413.79 402.88 73.52 65.32
Selling and Admin Expenses 2,408.03 2,093.87 1,684.41 1,609.33 1,299.17
Miscellaneous Expenses 1,120.89 1,008.91 516.9 682.72 601.28
Preoperative Exp Capitalised -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 0 0 0 0 0
Profit Before Tax 7,240.69 5,978.38 4,751.17 4,502.58 3,920.17
Extra-ordinary items 35.21 48.65 81.52 117.41 61.94
PBT (Post Extra-ord Items) 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
Total Value Addition 5,629.09 4,846.90 3,829.13 3,307.72 2,806.40
Preference Dividend 0 0 0 0 0
Equity Dividend 3,443.47 3,818.18 1,396.53 1,319.01 1,166.29
Corporate Dividend Tax 558.62 634.15 237.34 224.17 198.21
Per share data (annualised)
Shares in issue (lakhs) 77,381.44 38,181.77 37,744.00 37,686.10 37,622.23
Earning Per Share (Rs) 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
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
56
Sources Of Funds
Total Share Capital 773.81 381.82 377.44 376.86 376.22
Equity Share Capital 773.81 381.82 377.44 376.86 376.22
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 15,126.12 13,628.17 13,302.55 11,624.69 10,003.78
Revaluation Reserves 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 0 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
Total Liabilities
16,052.47 14,172.09 13,912.63 12,272.10 10,637.96
Application Of Funds
Gross Block 12,765.82 11,967.86 10,558.65 8,959.70 7,134.31
Less: Accum. Depreciation 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
Capital Work in Progress 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
Cash and Bank Balance 98.77 120.16 68.73 153.34 103.54
Total Current Assets 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
Total CA, Loans & Advances 10,592.28 8,463.31 8,450.99 7,306.99 6,281.07
Deferred Credit 0 0 0 0 0
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
Total CL & Provisions 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
Miscellaneous Expenses 0 0 0 0 0
Total Assets
16,052.47 14,172.09 13,912.63 12,272.10 10,637.96
57
9.INFOSYSSCRIP ID : INFY
SCRIP CODE: 500209
GROUP: A
INDEX: SENSEX
INDUSTRY: IT CONSULTING
& SOFTWARE
FACE VALUE: 5
INFOSYS P&LProfit & 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
Income
Sales Turnover 25,385.00 21,140.00 20,264.00 15,648.00 13,149.00
Excise Duty 0 0 0 0 0
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 0 0 0 0 0
Total Income 26,532.00 22,107.00 20,766.00 16,331.00 13,528.00
Expenditure
Raw Materials 23 22 20 18 22
Power & Fuel Cost 0 0 125 106 88
Employee Cost 12,464.00 10,356.00 9,975.00 7,771.00 6,316.00
Other Manufacturing Expenses 2,613.00 1,993.00 1,697.00 1,443.00 1,290.00
Selling and Admin Expenses 1,834.00 992 1,367.00 1,214.00 1,050.53
Miscellaneous Expenses 36 415 172 132 156.47
Preoperative Exp Capitalised
0 0 0 0 0
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
Interest 1 2 2 1 1
58
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 0 0 0 0 0
Profit Before Tax 8,821.00 7,520.00 6,714.00 5,100.00 4,135.00
Extra-ordinary items 0 0 -1 0 -5
PBT (Post Extra-ord Items) 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
Total Value Addition 16,947.00 13,756.00 13,336.00 10,666.00 8,901.00
Preference Dividend 0 0 0 0 0
Equity Dividend 3,445.00 1,434.00 1,345.00 1,902.00 649
Corporate Dividend Tax 568 240 228 323 102
Per share data (annualised)
Shares in issue (lakhs) 5,741.52 5,738.25 5,728.30 5,719.96 5,712.10
Earning Per Share (Rs)
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
Equity Share Capital 287 287 286 286 286
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 24,214.00 21,749.00 17,523.00 13,204.00 10,876.00
Revaluation Reserves 0 0 0 0 0
Networth 24,501.00 22,036.00 17,809.00 13,490.00 11,162.00
Secured Loans 0 0 0 0 0
Unsecured Loans 0 0 0 0 0
Total Debt 0 0 0 0 0
59
Total Liabilities 24,501.00 22,036.00 17,809.00 13,490.00 11,162.00
Application Of Funds
Gross Block 6,934.00 6,357.00 5,986.00 4,508.00 3,889.00
Less: Accum. Depreciation 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
Capital Work in Progress 499 409 615 1,260.00 957
Investments 1,325.00 4,636.00 1,005.00 964 839
Inventories 0 0 0 0 0
Sundry Debtors 4,212.00 3,244.00 3,390.00 3,093.00 2,292.00
Cash and Bank Balance 641 929 805 657 680
Total Current Assets 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
Total CA, Loans & Advances 23,150.00 17,242.00 15,732.00 12,326.00 9,040.00
Deffered Credit 0 0 0 0 0
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
Total CL & Provisions 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
Miscellaneous Expenses 0 0 0 0 0
Total Assets 24,501.00 22,036.00 17,809.00 13,490.00 11,162.00
8.TCS LTDSCRIP ID : TCS
SCRIP CODE: 532540
GROUP: A
INDEX: SENSEX
INDUSTRY: IT CONSULTING
& SOFTWARE
FACE VALUE: 2
60
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
Income
Sales Turnover 29,275.41 23,044.84 22,404.00 18,536.55 14,942.09
Excise Duty 0 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
Expenditure
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
Other Manufacturing Expenses 8,135.57 6,446.99 6,947.60 5,687.82 3,095.82
Selling and Admin Expenses 1,097.52 1,268.03 1,218.41 991.43 765.08
Miscellaneous Expenses 821.57 571.08 628.71 632.25 472.04
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses
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 0 0 0 0 0
Profit Before Tax 8,700.43 6,370.38 5,139.69 5,003.86 4,170.68
Extra-ordinary items 0 -13.98 -103.11 -37.52 -2.59
PBT (Post Extra-ord Items) 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
Total Value Addition 20,484.97 16,352.15 16,329.15 13,462.26 10,613.68
Preference Dividend 11 17 7 0.08 0
Equity Dividend 2,740.10 3,914.43 1,370.05 1,370.05 1,125.39
61
Corporate Dividend Tax 450.82 657.51 234.02 232.85 169.48
Per share data (annualised)
Shares in issue (lakhs) 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
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
Equity Share Capital 195.72 195.72 97.86 97.86 97.86
Share Application Money 0 0 0 0 0
Preference Share Capital 100 100 100 100 0
Reserves 19,283.77 14,820.90 13,248.39 10,806.95 7,961.13
Revaluation Reserves 0 0 0 0 0
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
Total Liabilities
19,620.61 15,152.36 13,486.62 11,023.06 8,109.73
Application Of Funds
Gross Block 6,030.16 4,871.21 4,359.24 3,240.64 2,315.36
Less: Accum. Depreciation 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
Capital Work in Progress 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
Cash and Bank Balance 224.77 212.31 479.93 402.24 314.66
Total Current Assets 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
Total CA, Loans & Advances 15,480.07 10,837.08 9,250.79 7,396.46 5,294.74
62
Deffered Credit 0 0 0 0 0
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
Total CL & Provisions 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
Miscellaneous Expenses 0 0 0 0 0
Total Assets 19,620.61 15,152.36 13,486.62 11,023.06 8,109.73
9.BHELSCRIP ID : BHEL
SCRIP CODE: 500103
GROUP: A
INDEX: SENSEX
INDUSTRY: GHEAVY
ELECTRICAL
EQUIPMENT
FACE VALUE: 2
BHARAT HEAVY ELECTRICALS P&LProfit & Loss account 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
Income
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
Expenditure
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
63
Employee Cost 5,396.71 6,449.17 2,991.27 2,602.30 2,366.93
Other Manufacturing Expenses 3,482.76 2,980.25 2,086.06 1,464.58 1,733.59
Selling and Admin Expenses 3,939.30 279.72 2,412.22 1,664.57 887.55
Miscellaneous Expenses 486.3 113.84 162.5 216.6 190.5
Preoperative Exp Capitalised 0 0 0 0 0
Total Expenses
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
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 0 0 0 0 0
Profit Before Tax 9,039.70 6,693.41 4,843.50 4,437.09 3,739.58
Extra-ordinary items 79.66 46.47 96.64 -12.69 -13.79
PBT (Post Extra-ord Items) 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
Total Value Addition 13,707.93 10,160.97 7,993.87 6,221.12 5,437.65
Preference Dividend 0 0 0 0 0
Equity Dividend 1,524.85 1,140.58 832.18 746.52 599.66
Corporate Dividend Tax 249.88 191.51 141.43 126.87 92.83
Per share data (annualised)
Shares in issue (lakhs) 4,895.20 4,895.20 4,895.20 4,895.20 2,447.60
Earning Per Share (Rs) 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
Sources Of Funds
Total Share Capital 489.52 489.52 489.52 489.52 244.76
Equity Share Capital 489.52 489.52 489.52 489.52 244.76
64
Share Application Money 0 0 0 0 0
Preference Share Capital 0 0 0 0 0
Reserves 19,664.3
2
15,427.84 12,449.29 10,284.69 8,543.50
Revaluation Reserves 0 0 0 0 0
Networth 20,153.8
4
15,917.36 12,938.81 10,774.21 8,788.26
Secured Loans 0 0 0 0 0
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 20,317.1
9
16,045.11 13,088.18 10,869.39 8,877.59
Application Of Funds
Gross Block 8,049.30 6,579.70 5,224.43 4,443.03 4,134.61
Less: Accum. Depreciation 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
Capital Work in Progress 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 10,963.0
3
9,235.46 7,837.02 5,736.40 4,217.67
Sundry Debtors 27,354.6
2
20,688.75 15,975.50 11,974.87 9,695.82
Cash and Bank Balance 1,430.15 865.08 1,950.51 1,511.02 2,068.91
Total Current Assets 39,747.8
0
30,789.29 25,763.03 19,222.29 15,982.40
Loans and Advances 13,267.0
7
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
Total CA, Loans & Advances 61,214.8
7
44,515.53 38,743.86 33,463.46 25,239.99
Deffered Credit 0 0 0 0 0
Current Liabilities 31,469.5
8
28,097.73 23,415.10 16,632.97 11,957.32
Provisions 15,030.3
7
4,417.98 4,975.58 7,608.68 5,708.25
Total CL & Provisions 46,499.9 32,515.71 28,390.68 24,241.65 17,665.57
65
5
Net Current Assets 14,714.9
2
11,999.82 10,353.18 9,221.81 7,574.42
Miscellaneous Expenses 0 0 0 0 0
Total Assets
20,317.1
9
16,045.11 13,088.18 10,869.39 8,877.59
11.LNTSCRIP ID : LNT
SCRIP CODE: 500510
GROUP: A
INDEX: SENSEX
INDUSTRY: CONSTRUCTION
&
ENGINEERING
FACE VALUE: 2
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
Income
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
66
Expenditure
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
Other Manufacturing Expenses 19,886.12 16,913.31 15,659.17 10,632.83 7,451.07
Selling and Admin Expenses 2,103.38 1,854.23 1,844.83 1,393.80 1,222.80
Miscellaneous Expenses 773.7 325.58 569.32 280.69 166.15
Preoperative Exp Capitalised -37.87 -36.25 -24.48 -11.42 -3.3
Total Expenses
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 0
Profit Before Tax 5,861.40 5,995.28 4,678.61 3,142.49 2,011.22
Extra-ordinary items -49.05 -45.13 -21.09 12.21 -5.34
PBT (Post Extra-ord Items) 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
Total Value Addition 25,965.31 21,770.09 20,503.25 14,196.59 10,403.06
Preference Dividend 0 0 0 0 0
Equity Dividend 882.84 752.75 614.97 495.32 368.25
Corporate Dividend Tax 112.82 110.25 101.83 76.26 53.34
Per share data (annualised)
Shares in issue (lakhs) 6,088.52 6,021.95 5,856.88 2,923.27 2,832.71
Earning Per Share (Rs) 65.01 72.66 59.45 74.35 49.53
Equity Dividend (%) 725 625 525 850 650
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
Sources Of Funds
Total Share Capital 121.77 120.44 117.14 58.47 56.65
Equity Share Capital 121.77 120.44 117.14 58.47 56.65
Share Application Money 368.31 25.09 0 0 0
67
Preference Share Capital 0 0 0 0 0
Reserves 21,334.05 18,142.82 12,317.96 9,470.71 5,683.85
Revaluation Reserves 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
Application Of Funds
Gross Block 8,897.02 7,235.78 5,575.00 4,188.91 2,876.30
Less: Accum. Depreciation 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
Capital Work in Progress 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
Cash and Bank Balance 1,518.98 1,104.89 693.13 779.86 993.68
Total Current Assets 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
Total CA, Loans & Advances 35,234.34 26,673.49 23,834.71 16,496.48 12,049.35
Deffered Credit 0 0 0 0 0
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
Total CL & Provisions 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
Miscellaneous Expenses 0 0 0.26 3.06 9.84
Total Assets 29,007.37 25,112.47 19,015.72 13,139.07 7,846.18
The company analysis is done on base of fundament analysis which is done on
the bases of:
• Edward Altman’s Z score
68
• Ratios
• Earnings Per Share
• Book Value
• Promoters’ Shareholding Pattern
EDWARD ALTMAN’S 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
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
69
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.
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
70
the first to apply a statistical method, t-tests to predict bankruptcy for a pair-
matched 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
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
71
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 VARIABLE
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:
Z > 2.99 -“Safe” Zone
1.8 < Z < 2.99 -“Grey” Zone
Z < 1.80 -“Distress” Zone
Z-SCORE ESTIMATED FOR PRIVATE FIRMS
72
T1 = (Current Assets-Current Liabilities) / Total Assets
T2 = Retained Earnings / Total Assets
T3 = Earnings before Interest and Taxes / Total Assets
T4 = Book Value of Equity / Total Liabilities
T5 = Sales/ Total Assets
Z' Score Bankruptcy Model:
Z' = .717T1 + .847T2 + 3.107T3 + .420T4 + .998T5
Zones of Discrimination:
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
T2 = Retained Earnings / Total Assets
T3 = Earnings before Interest and Taxes / Total Assets
T4 = Book Value of Equity / Total Liabilities
Z-Score Bankruptcy Model:
Z = 6.56T1 + 3.26T2 + 6.72T3 + 1.05T4
73
Zones of Discrimination:
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
T1 = Working Capital / Total Assets -0.298 -0.328 -0.158 -0.173 -0.109
T2 = Retained Earnings / Total Assets 0.417 0.263 0.098 0.160 0.116
T3 = Earnings Before Interest and Taxes / Total
Assets
0.622 0.596 0.317 0.430 0.265
T4 = Market Value of Equity / Total Liabilities 0.032 0.047 0.038 0.038 0.076
T5 = Sales/ Total Assets 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
2.HERO MOTO CORPZ score model Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets -1.032 -0.441 -0.254 -0.228 -0.199
T2 = Retained Earnings / Total Assets -0.038 0.010 0.227 0.189 0.197
T3 = Earnings Before Interest and Taxes / Total
Assets
0.553 0.777 0.452 0.439 0.456
T4 = Market Value of Equity / Total Liabilities 0.033 0.049 0.049 0.048 0.047
T5 = Sales/ Total Assets 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
74
3.CIPLAZ score model Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.328 0.329 0.399 0.372 0.423
T2 = Retained Earnings / Total Assets 0.104 0.156 0.117 0.126 0.153
T3 = Earnings Before Interest and Taxes / Total
Assets
0.182 0.233 0.235 0.197 0.245
T4 = Book Value of Equity / Total Liabilities 0.012 0.012 0.011 0.011 0.012
T5 = Sales/ Total Assets 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
4.SUN PHARMAZ score model Mar
'11
Mar
'10
Mar
'09
Mar
'08
Mar '07
T1 = Working Capital / Total Assets 0.109 0.132 0.095 0.144 0.095
T2 = Retained Earnings / Total Assets 0.152 0.107 0.189 0.185 0.142
T3 = Earnings Before Interest and Taxes / Total
Assets
0.023 0.044 0.016 0.046 -0.016
T4 = Book Value of Equity / Total Liabilities 0.010 0.048 0.048 0.047 0.036
T5 = Sales/ Total Assets 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
5.HDFCZ score model Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.0024 0.0419 -0.0284 -0.0124 -0.0497
T2 = Retained Earnings / Total Assets 0.0114 0.0108 0.0099 0.0097 0.0127
T3 = Earnings Before Interest and Taxes /
Total Assets
0.0865 0.0864 0.1018 0.0883 0.0911
75
T4 = Book Value of Equity / Total
Liabilities
0.0004 0.0004 0.0004 0.0004 0.0004
Z = 6.5T1 + 3.26T2 + 6.72T3 + 1.05T4 0.6344 0.8885 0.5316 0.5445 0.3307
6.SBIZ score model Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.014 0.015 -0.007 -0.022 -0.014
T2 = Retained Earnings / Total Assets 0.004 0.007 0.008 0.007 0.007
T3 = Earnings Before Interest and Taxes /
Total Assets
0.073 0.076 0.076 0.077 0.078
T4 = Book Value of Equity / Total
Liabilities
0.001 0.001 0.001 0.001 0.001
Z = 6.5T1 + 3.26T2 + 6.72T3 + 1.05T4 0.598 0.634 0.493 0.402 0.454
7.HULZ- SCORE MODEL Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets -0.846 -0.931 -0.477 -0.937 -0.430
T2 = Retained Earnings / Total Assets 0.340 0.303 0.349 -0.136 0.190
T3 = Earnings Before Interest and Taxes /
Total Assets
1.178 1.160 1.305 1.640 0.829
T4 = Book Value of Equity / Total Liabilities 0.005 0.005 0.004 0.004 0.004
T5 = Sales/ Total Assets 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
8.ITCZ- SCORE MODEL Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.038 0.064 0.087 0.108 0.092
T2 = Retained Earnings / Total Assets 0.096 0.017 0.134 0.147 0.144
T3 = Earnings Before Interest and Taxes /
Total Assets
0.497 0.471 0.384 0.405 0.404
T4 = Book Value of Equity / Total Liabilities 0.001 0.003 0.003 0.003 0.003
76
T5 = Sales/ Total Assets 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
9.INFOSYSZ- SCORE MODEL Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.114 0.099 0.149 0.168 0.162
T2 = Retained Earnings / Total Assets 0.122 0.198 0.251 0.190 0.281
T3 = Earnings Before Interest and Taxes /
Total Assets
0.390 0.378 0.416 0.419 0.413
T4 = Book Value of Equity / Total Liabilities 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
10.TCSZ- SCORE MODEL Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.056 0.013 0.045 0.149 0.170
T2 = Retained Earnings / Total Assets 0.246 0.112 0.247 0.285 0.325
T3 = Earnings Before Interest and Taxes /
Total Assets
0.472 0.452 0.413 0.496 0.557
T4 = Book Value of Equity / Total Liabilities 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
11.BHELZ score model Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.407 0.168 0.179 0.238 0.453
T2 = Retained Earnings / Total Assets 0.221 0.198 0.176 0.194 0.204
T3 = Earnings Before Interest and Taxes / Total
Assets
0.421 0.380 0.320 0.345 0.399
T4 = Book Value of Equity / Total Liabilities 0.020 0.020 0.020 0.020 0.040
77
T5 = Sales/ Total Assets 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
12.L&TZ score model Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
T1 = Working Capital / Total Assets 0.458 0.458 0.709 0.793 1.060
T2 = Retained Earnings / Total Assets 0.106 0.144 0.151 0.128 0.132
T3 = Earnings Before Interest and Taxes / Total
Assets
0.203 0.202 0.218 0.247 0.260
T4 = Book Value of Equity / Total Liabilities 0.012 0.012 0.011 0.025 0.026
T5 = Sales/ Total Assets 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
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 8
HERO MOTO
CORP
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 4
SUN PHARMA 0.711 0.802 0.995 1.161 0.755 0.885 3
HDFC 0.6344 0.8885 0.5316 0.5445 0.3307 0.586 2
SBI 0.598 0.634 0.493 0.402 0.454 0.516 1
78
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 5
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 9
BHEL 4.363 3.9 3.705 3.709 4.317 3.999 7
L&T 2.892 2.906 3.587 3.881 4.621 3.577 6
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.
PROMOTERS SHAREHOLDING (%)Companies 30-06-2011 31-03-2011 31-12-2010 Average Points
BAJAJ AUTO 50.02 50.02 49.66 49.9 5
HERO MOTO CORP 52.21 52.21 52.21 52.21 7
79
CIPLA 36.8 36.8 36.8 36.8 6
SUN PHARMA 63.72 63.72 63.72 63.72 10
HDFC 23.35 23.35 23.35 23.35 4
SBI 59.4 59.4 59.4 59.4 9
HUL 52.52 52.55 52.01 52.36 8
ITC 0 0 0 0 1.5
INFOSYS 16.04 16.04 16.04 16.04 3
TCS 74.08 74.05 74.05 74.06 12
BHEL 67.72 67.72 67.72 67.72 11
L&T 0 0 0 0 1.
5
CHANGE IN PROMOTERS SHAREHOLDING (%)Companies 30-03-2011-
31-06-2011
31-12-2010-
31-03-2011
Average Points
BAJAJ AUTO 0 0.36 0.18 12
HERO MOTO CORP 0 0 0 9
CIPLA 0 0 0 9
SUN PHARMA 0 0 0 9
HDFC 0 0 0 9
SBI 0 0 0 9
HUL 0.03 -0.54 -0.255 4
ITC 0 0 0 2
INFOSYS 0 0 0 9
TCS -0.03 0 -.015 5
BHEL 0 0 0 9
L&T 0 0 0 2
80
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
• Current Ratio
• Quick Ratio
• Debt Equity Ratio
Debt Coverage Ratios
• Total Debt to Owners Fund
81
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 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 Average Points
Bajaj Auto 40 40 22 20 40 32.4 11
Hero Moto Corp 105 110 20 19 17 54.2 12
Cipla 2.8 2 2 2 2 2.16 1
Sun Pharma 3.5 13.75 13.75 10.5 6.75 9.65 4
HDFC 16.5 12 10 8.5 7 10.8 5
SBI 30 30 29 21.5 14 24.9 9
HUL 6.5 6.5 7.5 -- 9 7.375 3
ITC 4.45 10 3.7 3.5 3.1 4.95 2
Infosys 60 25 23.5 33.25 11.5 30.65 10
TCS 14 20 14 14 11.5 14.7 7
82
BHEL 31.15 23.3 17 15.25 24.5 22.24 8
L&T 14.5 12.5 10.5 17 13 13.5 6
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 Average Points
Bajaj Auto 112.4 173.02 75.64 75.01 131.39 113.49 10
Hero Moto Corp 123.21 137.4 87.79 68.5 60.19 95.418 7
Cipla 15.96 17.2 16.02 10.96 10.57 14.142 2
Sun Pharma 1.48 12.14 3.9 9.59 -2.83 4.856 1
HDFC 160.36 106.25 92.36 107.32 86.19 110.5 8
SBI 255.39 229.63 230.04 173.61 147.72 207.28 12
HUL 91.18 81.45 94.06 -- 63.75 82.61 5
ITC 27.29 48.63 39.7 37.23 32.73 37.116 3
Infosys 146.56 128.3 120.59 86.78 73.98 111.24 9
TCS 44.82 34.06 61.52 51.35 43.95 47.14 4
BHEL 174.35 122.49 85.43 76.54 144.84 120.73 11
L&T 96.55 84.42 70.72 110.81 71.77 86.854 6
Profitability Ratios
Net Profit Margin (%)
Net Profit Margin= Net Income/Net Sales (Revenue)
83
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 Average Points
Bajaj Auto 19.8 14.23 7.4 8.32 12.66 12.482 5
Hero Moto Corp 9.8 14 10.3 9.27 8.58 10.39 2
Cipla 14.98 18.97 14.58 16.43 18.41 16.674 8
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 7
SBI 8.55 10.54 12.03 11.65 10.12 10.578 3
HUL 11.56 12.29 12.09 -- 12.58 12.13 4
ITC 22.91 21.3 21.18 21.5 21.4 21.658 9
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 6
L&T 8.82 11.56 10.06 8.54 7.74 9.344 1
Return on Capital Employed (ROCE )
Return on Capital Employed (ROCE)= Net Income/Capital Employed
Capital Employed = Average Debt Liabilities + Average Shareholders’ Equity
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 Average Points
Bajaj Auto 67.57 59.01 32.8 39.71 20.9 43.998 9
84
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 20.468 4
Sun Pharma 21 17.05 24.57 24.21 16.83 20.732 5
HDFC - - - - - 2
SBI - - - - - 2
HUL 102.47 106.78 118.59 -- 138.72 116.64 12
ITC 44.94 42.64 34.6 36.6 37.24 39.204 7
Infosys - - - - - 2
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 8
L&T 22.35 22.49 24.14 26.72 29.82 25.104 6
Debt Coverage Ratios
Total Debt to Owner’s fund
Total Debt to Owner′s fund= Total Debt/Owners Fund
Owner’s 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
holder’s 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 Mar'07 Average Points
Bajaj Auto 0.07 0.46 0.84 0.84 0.29 0.5 3
Hero Moto Corp 0.5 0.02 0.02 0.04 0.07 0.13 5
Cipla 0.07 0 0.22 0.15 0.04 0.096 6.5
Sun Pharma 0.01 0.01 0 0.02 0.44 0.096 6.5
HDFC 8.22 7.78 9.75 8.76 10.62 9.026 2
SBI 14.37 12.19 12.81 10.96 13.92 12.85 1
HUL 0 0 0.2 0 0.06 0.052 8
85
ITC 0.01 0.01 0.01 0.02 0.02 0.014 9
Infosys 0 0 0 0 0 0 12
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 4
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
Averag
e
Point
s
Bajaj Auto 40.27 39.63 56.72 44.78 38.24 43.928 8
Hero Moto Corp 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 3
Sun Pharma 30.44 36.95 26.33 25.11 23.57 28.480 5
HDFC 22.72 21.72 22.16 22.16 22.91 22.334 1
SBI 26.03 23.36 22.9 22.64 18.98 22.782 2
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 7
TCS 42.21 81.61 34.2 35.55 34.46 45.606 9
BHEL 29.52 30.9 31.02 30.54 28.67 30.130 6
L&T 25.15 19.72 20.58 26.29 30.04 24.356 4
Earnings retention ratio
86
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 Income−Dividends/Net Income
Earning Retention Ratio
COMPANIES Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 Average Points
Bajaj Auto 46.73 62.55 53.79 56.41 52.71 54.438 4
Hero Moto Corp -21.37 -25.86 60.01 47.19 46.62 21.318 2
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 8
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 1
ITC 17.06 -12.31 48.67 47.98 48.75 30.030 3
Infosys 37.34 70.67 74.6 50.17 79.91 62.538 6
TCS 57.73 19.37 70.74 62.47 64.34 54.930 5
BHEL 69.66 68.88 67.63 70.07 71.73 69.594 7
L&T 70.9 71.91 72.84 71.72 69.85 71.444 9
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
87
in accounting terms), plus additions or subtractions for owner’s salary,
discretionary, single occurrence, or non-cash expenses.
Adjusted Cash Flow Times
COMPANIES Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 Average Points
Bajaj Auto 0.12 0.69 1.68 1.4 1.36 1.05 9
Hero Moto Corp 0.62 0.03 0.06 0.13 0.19 0.206 6
Cipla 0.38 0 0.81 0.76 0.17 0.424 8
Sun Pharma 0.04 0.03 0.02 0.1 1.73 0.384 7
HDFC 47.14 50.14 54.91 54.14 42.6 49.786 11
SBI 100.71 79.54 75.05 72.64 84.87 82.562 12
HUL -- -- 0.17 -- 0.05 0.11 5
ITC 0.02 0.02 0.05 0.06 0.07 0.044 4
Infosys -- -- -- -- -- 1
TCS 0.01 0.01 0.01 0 0.01 0.008 2
BHEL 0.03 0.03 0.04 0.03 0.03 0.032 3
L&T 1.78 1.95 2.23 1.61 1.33 1.78 10
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,
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 Averag Point
88
e s
Bajaj Auto 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 8
Cipla 11.96 13.47 9.99 9.02 8.59 10.606 3
Sun Pharma 13.36 43.39 61.09 48.96 32.52 39.864 4
HDFC 84.4 64.42 52.77 44.87 43.29 57.950 6
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 2
ITC 6.45 10.64 8.65 8.28 7.18 8.240 1
Infosys 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 5
BHEL 122.8 88.06 64.11 58.41 98.66 86.408 9
L&T 65.01 72.66 59.45 74.35 49.53 64.200 7
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
Averag
e Points
Bajaj Auto 169.69 202.4 129.23 109.73 546.96 231.602 7
Hero Moto Corp 148.03 173.52 190.33 149.55 123.7 157.026 5
Cipla 82.25 73.55 55.86 48.2 41.52 60.276 3
Sun Pharma 64.51 276.08 248.72 203.15 126.58 183.808 6
HDFC 545.53 470.19 344.44 324.38 201.42 377.192 11
SBI 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 1
89
ITC 20.55 36.69 36.24 31.85 27.59 30.584 2
Infosys 426.73 384.02 310.9 235.84 195.41 310.580 9
TCS 99.53 76.72 136.38 111.43 82.35 101.282 4
BHEL 411.71 325.16 264.32 220.1 359.06 316.070 10
L&T 352.4 303.28 212.32 325.98 202.65 279.326 8
90
FINDINGS
Addition of above calculated ratio’s pointsCOMPANIES
DIVIDEN
D PER
SHARE
OPERATIN
G PROFIT
PER SHARE
NET
PROFIT
MARGIN ROIC
DEBT
COVERAGE
RATIO
DIVIDEN
D
PAYOUT
RATIO
RETENTION
RATIO TOTAL
BAJAJ
AUTO 11 10 5 9 3 8 4 50
HERO
MOTO
CORP 12 7 2 11 5 11 2 50
CIPLA 1 2 8 4 6.5 3 10 34.5
SUN
PHARMA 4 1 12 5 6.5 5 8 41.5
HDFC 5 8 7 2 2 1 12 37
SBI 9 12 3 2 1 2 11 40
HUL 3 5 4 12 8 12 1 45
ITC 2 3 9 7 9 10 3 43
INFOSYS 10 9 11 2 12 7 6 57
TCS 7 4 10 10 10.5 9 5 45.5
BHEL 8 11 6 8 10.5 6 7 56.5
L&T 6 6 1 6 4 4 9 36
91
Addition of additional ratio’s points
COMPANIESZ SCORE PROMOTER'S
HOLDING
CHANGE IN
PROMOTER'S
HOLDING
ADJUSTED
CASH
FLOW
TIMES
EARNING
PER
SHARE
BOOK
VALUE TOTAL
BAJAJ
AUTO
8 5 12
9 10 7 51
HERO
MOTO
CORP
11 7 8
6 8 5 45
CIPLA 4 6 8 8 3 3 32
SUN
PHARMA
3 10 8
7 4 6 38
HDFC 2 4 8 11 6 11 42
SBI 1 9 8 12 12 12 54
HUL 12 8 3 5 2 1 31
ITC 5 1.5 1.5
4 1 2
15
INFOSYS 10 3 8 1 11 9 42
TCS 9 12 4 2 5 4 36
BHEL 7 11 8 3 9 10 48
L&T 6 1.5 1.5 10 7 8 34
Overall rating C ompanies
companies
TOTAL
of first table
ratios
TOTAL of
last table
ratios
grand total ranking
BAJAJ AUTO 50 51 101 2
HERO MOTO
CORP
50 45 95 4
92
CIPLA 35 32 67 11
SUN PHARMA 42 38 80 7
HDFC 37 42 79 8
SBI 40 54 94 5
HUL 45 31 76 9
ITC 43 15 58 12
INFOSYS 57 42 99 3
TCS 56 36 92 6
BHEL 57 48 105 1
L&T 36 34 70 10
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 12th
rank.
93
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 company’s
share holding, company has good potential for growth. Because FIIs and
MFs have good research techniques to observer the companies’ financial
performance and that’s why they are willing to invest for particular
companies in India, but in today’s 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
market behaviour i.e. it should have qualities of Large cap, Small cap as
well as Midcap companies.
94
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.
95
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
Cnbc-Awaz