“FUNDAMENTAL ANALYSIS OF IT SECTOR COMPANIES IN INDIA”

By :

Vishal Moradiya

Enrollment NO : 107920592027

M.B.A. – 1, Semester - II

TOPICS COVERED

Objectives of the study Introduction IT industry Economic analysis Industry analysis SWOT analysis Research methodology Ratio analysis Findings Conclusions Bibliography

OBJECTIVES OF THE STUDY

• To know the company position.• To analyze that which IT Company is good compare to other IT company

SCOPS OF THE STUDY

• Market research.• Identify the IT Sector in market.

INTRODUCTION

Stock Markets are driven by various factors. The working of stock exchanges in india

started in 1875. with 318 persons. Bombay stock exchange in 1965. The 30 stock sensitive index. In 1990 the BSE crossed the 1000 mark. NSE was incorporated in 1992. Market practise, infrastructures, technology,

risk management, investor services,

“SOUTH GUJARAT SHARE AND SHARE BROKERS LIMITED”

Whole time director – Mr. Bhadresh G. Kapadiya 31st march 1995 which was first financial year completed. Loss of Rs. 80,000 In surat at 23 July 1996 at belgiam chambers. There are more then 16,000 holders which having debate A/c

in sgssl. Company has a computer to computer link CMR approach….

1. speed & Quality in System

2. consistency of services quality

3. professional approach

4. fulfilling the client’s need

IT INDUSTRY

The Information Technology Association of America (ITAA):

  “ the study, design, development,

implementation, support or management of computer- based information systems, particularly software applications and computer hardware.”

IT SECTOR – AN OVERVIEW

IT Services Engineering Services BPO – Services E – Business

IT = SUCCESS FACTORS

The Indian Education System High Quality Human Resource Competitive Costs

THE INDIAN IT INDUSTRY

Market Size 2011 – US$ 80 billion (exports) Outsourcing 4 million technical workers, 67,785 computer software professionals Domestic Market 2009-10 5.3 per cent. laptop market is expected to grow by 37 per cent in 2011 Government Initiatives

ECONOMIC ANALYSIS

Gross Domestic Product

Inflation

Inflation in India is based on Wholesale Price Index. June 23, 2011 =9.13%

Sectors 2009-10 2010-11

Agriculture 0.4 5.4

Industry 8.0 8.1

Services 10.1 9.6

ECONOMIC ANALYSIS (CONT.)

Interest Rates:

lower interest rate for the brokers who are doing business with borrowed money.

Foreign Investment

 During the period April-February 2010-11, FDI flows into India totalled US$ 25.9 billion. Admittedly, FDI flows in 2010-11 have seen a slowdown from the previous year.

IT SECTORS

Zero Customs duty Plants to setting- ANDHRA PRADESH,BIHAR, Create New National Knowledge Centers, The govt. is trading to reduce the

international communication cost.

Challenges for Indian economic in 2011 Getting inflation under control

INDUSTRY ANALYSIS

Major players in IT – ITES sector Infosys Technologies Ltd. Tata Consultancy Services. Wipro Technologies. HCL Intel GE IBM Dell Microsoft

INDUSTRY ANALYSIS (CONT,)

Advantages in india Cost advantage Ease of scalability Quality of services Infrastructure

Segment Growth(%)

Hardware 5.9

Software 8.5

Services(IT) 6

Services(BPO) 10

SWOT ANALYSIS

WEAKNESS

Absence of practical knowledge

Less Research and Development

Contribution of IT sector is small

STRENGTHS

Highly skilled human resource Low wage structure Quality of work Indian time zone

SWOT ANALYSIS (CONT.)

OPPORTUNITIES high quality IT

education market increasing number

of working age people

Upcoming international players in the market

THREATS Lack of data security

systems IT development

concentrated in a few cities only

English language barrier

MARKET CAPITALIZATION

Companies Mkt.Cap. (In Rs. Cr.)

INFOSYS 1,69,868.48

TCS 1,32,576.57

WIPRO 1,02,839.74

TECH MAHINDRA 91,398.84

Business research is a systematic inquiry whose objective

PROBLEM STATAEMENT:

“Fundamental Analysis of the IT Companies”.

RESEARCH OBJECTIVE:

PRIMARY OBJECTIVES:

SECONDARY OBJECTIVES:

RESEARCH METHODOLOGY

RESEARCH DESIGN

My research design is descriptive.

IMPORTANCE OF THE STUDY

Benefit to the investors

DATE COLLECTION:

Primary Data Collection: Survey Secondary Data Collection: Internet, Books, Magazines, News Paper, Television

RATIO ANALYSIS

Meaning of accounting ratio:- “A ratio is simply one number expressed in terms of

another, it is an expression of relationship spelt out by dividing one figure by another.”

Uses or utility of ratio: Utility to management: Utility of Shareholders and Investors:- Utility to Employees:- Utility to Government and/or RBI:-

Current ratio Debt- equity ratio Net profit ratio Dividend Per Share

I have founded several different types of ratio as follows

CURRENT RATIO:-

DEBT- EQUITY RATIO :-

NET PROFIT RATIO :-

DIVIDEND PER SHARE :-

FINDINGS

The infrastructure of is also very good for the IT sector. the India it industry is growing at 34% to 36% The Infosys, TCS, Tech Mahindra are big giant of Indian

IT Industry. the current ratio the quick ratio is very high of Infosys

company. the Infosys is doing business by own money. I would suggest invest Infosys technologies. The market position of Wipro is also weak so the investor

should sell its share.

CONCLUSION

INFOSYS – Stood First

TATA CUNSUTANCY SERVICES - second

TECH MAHINDRA – third

WIPRO – fourth rank - because but the EPS, DPS, profit ratio low so the Wipro getting the fourth rank.

Sr. No. Book Name Author Edition

1 Financial management “I.M.PANDEY” 9th edition

2 Research methodology “R. KOTHARI” 2nd edition

WEBSITES :-

http://www.infy.comhttp://www.TCS.comhttp://www.wipro.comhttp://www.nse.comhttp://www.bse.comhttp://www.moneycontrol.com

BIBLIOGRAPHY

THANK YOU