ashutosh agrawal_pg20095405 sip project

8/6/2019 Ashutosh Agrawal_pg20095405 Sip Project

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SHARE KHAN LIMITED

Economic, Industry, Company, technical Analysis of DLF LTD. ANDUNITECH LTD.

A detail stock analysis of DLF Ltd and Unitech Ltd.

Ashutosh Agrawal10/7/2010


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ContentsExecutive Summary .......................................................................................................................................... 5

Introduction of Stock Market .............................................................................................................................. 6

Range Of Product And Services ........................................................................................................................ 8

Company Profile .............................................................................................................................................. 10

SWOT ANALYSIS: .......................................................................................................................................... 16

ABSTRACT ..................................................................................................................................................... 17

Objectives ....................................................................................................................................................... 18

Introduction To Real Estate ............................................................................................................................. 18

Company Introduction ..................................................................................................................................... 20

RBI hikes short term rates : Interest rates on home, car and other retail loans are set to firm up in near

future as the Reserve Bank of India on Friday hiked the rates at which it takes deposits, and lends short-

term funds to banks by 25 basis points. took the decision to tighten money supply for containing the rising

inflation, which has touched 9.9% in February. ......................................................................................... 26

Standard Chartereds country head, Neeraj Swaroop, also termed RBIs decision to hike rates as a signa

to increase the lending rates. ................................................................................................................ 26

As per the above news Real estate sector noticed a fall in stock prices as interest rates are likely to hike.

................................................................................................................................................................. 26

Industry Analysis ............................................................................................................................................. 27

COMPANY ANALYSIS .................................................................................................................................... 36

RATIO ANALYSIS ........................................................................................................................................... 38

Technical Analysis ........................................................................................................................................... 50

CONCLUSION ................................................................................................................................................ 66

BIBLIOGRAPHY.............................................................................................................................................. 67


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SUMMER TRAINING REPORT ON:Share Khan Ltd.Project Title: Economic, Industry, Company, technical Analysis of DLFLTD. AND UNITECH LTD.

Submitted in partial fulfillment of the requirements of the two year

Post Graduate Programme (PGP).

Submitted by

ASHUTOSH AGRAWAL

Roll No: 2009 5405

Batch:2009-2011

IILM Institute for Higher Education


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Acknowledgement

"Sometimes our light goes out

But is blown into flame by another human being,

Each of us owes deepest thanks

To those who have rekindled this light"

No work is a single mans effort. Cooperation, guidance and coordination are required at various

levels for the successful completion of a project.

I take this opportunity to express my gratitude to all those people who have been instrumental in

successful completion of my project. I extend my sincere thanks to my mentor, Ms. Monica Mor, who

helped me in all possible ways and constantly encouraged me throughout my project. I also thank him

for his valuable guidance and for being understanding and supportive. I am particularly indebted to

Mr. Arvind Kumar, my company guide for his helpful guidance, comments and suggestions on

earlier reports and throughout my project. .

I would also like to express my gratitude towards my parents and friends, who have always been my

source of inspiration and motivation.


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Executive SummaryThe following report is on economic, industry, company, technical analysis of DLF Limited and

Unitech Limited along with a detailed stock analysis of both the companies.

The project begins with a look into the stock market considering taking into account the transaction

cycle and also the concept of online trading. Share khan is Indias leading financial firm. a complete

life-cycle of investment solution in Equities, Derivatives, Commodities, IPO, Mutual Funds, Depository

Services, Portfolio Management Services and Insurance. We also offer personalized wealth

management services for High Net worth individuals. Share khan complete industry analysis has

been covered in this report along with the SWOT Analysis objective analysis.

The following report peeps into the world of real estate taking two major companies like DLF and

UNITECH. Combining the two industries have tried to explain the scope of investment in the real

estate sector with Share khan being a guiding on how to go about it.

The report also covers both industry and economic analysis along with the PEST and SWOT of DLF

Limited and UNITECH. Based on the following assumptions are the ratio analysis and technica

analysis being done.


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Introduction of Stock Market

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The

earliest records of security dealings in India are meager and obscure. The East India Company was

the dominant institution in those days and business in its loan securities used to be transacted

towards the close of the eighteenth centaury.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in

Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers

recognized by banks and merchants during 1840 and 1850.The 1850's witnessed a rapid

development of commercial enterprise and brokerage business attracted many men into the field

and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of Europewas stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200

to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for

example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87).

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers

Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange

acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange

at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of exchanges were increased andat currently it reached to the figure of 24 stock exchanges.

Transaction cycle

y Decision to trade

y Placing ordery Trade Execution

y Clearing of Trades

y Settlement of trades

y Funds or Securities


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A person holding assets (Securities/Funds), either to meet his liquidity needs or to reshuffle his

holdings in response to changes in his perception about risk and return of the assets, decides to buy

or sell the securities. He selects a broker and instructs him to place buy/sell order on an exchange

The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade

cycle, the trades are netted to determine the obligations of the trading members securities/funds as

per settlement cycle. Buyer/seller delivers funds/ securities and receives securities/funds and

acquires ownership of the securities.

A securities transaction cycle is presented above. Just because of this Transaction cycle, the whole

business of Securities and Stock Broking has emerged. And as an extension of stock broking, the

business of Online Stock broking/ Online Trading/ E-Broking has emerged.

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a placein a street (now appropriately called as Dalal Street) where they would conveniently assemble and

transact business. In 1887, they formally established in Bombay, the "Native Share and Stock

Brokers' Association" (which is alternatively known as The Stock Exchange "). In 1895, the Stock

Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock

Exchange at Bombay was consolidated


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History Of Online Trading

Online stock trading is very old concept for big institutions who trade through private networks

owned by Reuter's "Instinet" and a system called "Posit" since 1969. But it becomes internet based

for lay men only in late 90s.

Funny, that actually idea was first time used by a company making Beer called "WIT beer"

to help its shareholders trade its shares. Thats how WIT Capital" was born which is considered

pioneer of this concept. It was made mainstream and household name by a offshoot of Charles

Schwab & Co called eSchwab which is used by millions of people in USA. Lot of NRI's i know playing

US stock market even when they come to India for holidays via website of Schwab.

There are other serious players like E*TRADE, DATEK online etc. All this companies ask you tostart account with US $5000 and you can buy and sell stock using these funds. They also issue

you a check book which you can use to make payments from this account. Or use their ATM card

to withdraw cash from your stock trading account.

Today practically every big name brokerage firm offers online stock trading as it reduces their costs

Earlier they had army of brokers on phone with clients executing trade, which is done by computers

accepting orders from clients directly. This firm now offers human access to high net worth accounts

and to rest at charge per trade.

Range Of Product and Services

Market Size: Growth of Online Brokerage market

In five years of its existence in India, online broking has grown to account for a tenth of the totatrading volumes. If the numbers are considered for only the retail segments, the growth is starker.

Almost half of the Rs 5,000 crore-6,000 crore daily market volumes on the NSE are accounted for by

non-retail entities such as foreign institutional investors, domestic institutions, mutual funds and

arbitrage traders. Institutions aren't online customers anyway. Of the rest of the retail segment

current estimates suggest that online broking reach is close to 30 per cent.


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As of September this year, there were 11.7 lakh Internet trading accounts registered with the NSE, of

which roughly 9.5 lakh are unique users. It's still a small proportion of the estimated 3 crore Internet

users in the country. As more surfers take to trading online, analysts expect their number to keep

doubling every year until 30-40 per cent of India's overall trades are done online, as is the case in

some mature Internet markets like South Korea's.

The Internet's effect here has more to do with the bandwidth it has created for both brokers and

clients. Banga, director of India bulls offers an example. "Traders from Ajmer use our online platform

It would otherwise have been prohibitively loss-making to open a branch there." Thanks to the new

channel, volumes are growing faster in the non-metros, where transparency is low in offline

trading. "These customers were made to pay higher charges by small brokers, since they weren't

aware of the market rates," says Vikas Shankar of Sharekhan.com. That is one of the reasons why

more than 60 per cent of Share khans online trading turnover comes from non-metros.

Formation of the National Stock Exchange (NSE):

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market

trading system on par with the international standards. On the basis of the recommendations of high-

powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by

Industrial Development Bank of India, Industrial Credit, and Investment Corporation of India

Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and

others.

Trading at NSE can be classified under two broad categories :

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions and

corporate bodies enter into high value transactions in financial instruments such as

government securities, treasury bills, public sector unit bonds, commercial paper, certificate of

deposit, etc.


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There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of themselves and

their clients. Participants include trading members and large players like banks who take direct

settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism, which

adopts the principle of an order-driven market. Trading members can stay at their offices and execute

the trading, since they are linked through a communication network. The prices at which the buyer

and seller are willing to transact will appear on the screen. When the prices match the transaction wilbe completed and a confirmation slip will be printed at the office of the trading member.

Company Profile

Share khan Ltd. Is one of the leading retail stock broking house of SSKI Group which is running

successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI Group,

which has over eight decades of experience in the stock broking business. Share khan offers its

customers a wide range of equity related services including trade execution on BSE, NSE,

Derivatives, depository services, online trading, investment advice etc. The firms online trading

and investment site - www.sharekhan.com was launched on Feb 8, 2000. The site gives

access to superior content and transaction facility to retail customers across the country. Known for

its jargon-free, investor friendly language and high quality research, the site has a registered base of

over one lakh customers. The content-rich and research oriented portal has stood out among its

contemporaries because of its steadfast dedication to offering customers best-of-breed technology

and superior market information. The objective has been to let customers make informed decisionsand to simplify the process of investing in stocks.

On April 17, 2002 Share khan launched Speed Trade, a net-based executable application tha

emulates the broker terminals along with host of other information relevant to the Day Traders. This

was for the first time that a net based trading station of this caliber was offered to the traders. In the


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last six months Speed Trade has become a de facto standard for the Day Trading community over

the net.

Share khans ground network includes over 800 centers in more than 300 cities in India which provide

a host of trading related services.

Share khan has always believed in investing in technology to build its business. The company has

used some of the best-known names in the IT industry, like Sun Microsystems, Oracle

Microsoft, Cambridge Technologies, Nexgenix, Vignette, VeriSign Financial Technologies India

Ltd, Spider Software Pvt. Ltd. To build its trading engine and content. The Morakhiya family holds a

majority stake in the company. HSBC, Intel & Carlyle are the other investors. With a legacy of

more than 80 years in the stock markets, the SSKI group ventured into institutional broking and

corporate finance 18 years ago. Presently SSKI is one of the leading players in institutional brokingand corporate finance activities. SSKI holds a sizeable portion of the market in each of these

segments. SSKIs institutional broking arm accounts for 7% of the market for Foreign Institutional

portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60

institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate

about 65% of the organizations revenue, with a daily turnover of over US$ 2 million. The

Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in

terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity

deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison,

Planetarium, and Shoppers Stop.


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Profile Of The Company

Name of the company : Share khan ltd.

Year of Establishment : 1925

Headquarter : Share Khan SSKI

A-206 Phoenix House

Phoenix Mills Compound

Lower Parel

Mumbai-Maharashtra, INDIA- 400013

Nature of Business : Service Provider

Services : Depository Services, Online Services

and Technical Research

Number of Employees : Over 3500

Website : www.sharekhan.com

Slogan : Your Guide to The Financial Jungle.

ACHIEVEMENTS OF SHAREKHAN:

y A Rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etc by

Business Today, January 2004 edition.

y Awarded Top Domestic Brokerage House four times by Euro money and Asia money.

y Pioneers of online trading in India amongst the top 3 online trading websites from India. Most

preferred financial destination amongst online broking customers.y Winners of Best Financial Website award.

y Indias most preferred brokers within 5 years. Awaaz customers Award 2005.


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Future Plans:

y 2, 00,000 plus retail customers being serviced through centralized call centers/ web solutions.y Branches / Semi branches servicing affluent / aggressive traders through high skill financia

advisor.

y 250 independent investment managers/ franchisee servicing 50,000 highly valued clients.

y New initiatives Portfolio management Services and commodities trading.

Vision:

To be the best retail brokering Brand in the retail business of stock market.

Mission:

To educate and empower the individual investor to make better investment decisions through quality

advice and superior service.

Share khan is infect:

y Among the top 3 branded retail service provider.

y No. 1 player in the online business.

y Largest network of branded broking outlets in the country serving more than 7, 00,000 clients.

A share khan outlet offers the following services:

y Online BSE and NSE executions (through BOLT and NEAT terminals)

y Free access to investment advice from share khans Research team.

y Share khan value line (a monthly publication with reviews of recommendations stocks to watch

out for etc.)

y Daily research reports and market review (High Noon & Eagle Eye)

y Pre-market Report

y Daily trading calls based on Technical Analysis

y Cool trading products (Daring Derivatives and Market Strategy)

y Personalized Advice

y Live Market Information

y Depository Services: Demat & Remat Transactions

y Derivatives Trading (Futures and Options)


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y Commodities Trading

y IPOs & Mutual Funds Distribution

y Internet-based Online Trading: Speed Trade

REASON TO CHOOSE SHAREKHAN LIMITED

Experience:

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the

Asia Money broker's poll held recently, SSKI won the 'India's Best Broking House for 2004 award

Ever since it launched Share khan as its retail broking division in February 2000, it has been

providing institutional level research and broking services to individual investors.

Technology:

Its online trading account one can buy and sell shares in an instant from any PC with an interne

connection. One can get access to its powerful online trading tools that will help him take complete

control over his investment in shares.

Accessibility:

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors

These services are accessible through its centers across the country over the internet (through thewebsite www.sharekhan.com) as well as over the Voice Tool.

Knowledge:

In a business where the right information at the right time can translate into direct profits, one can get

access to a wide range of information on Share khan limiteds content-rich portal. One can also get a

useful set of knowledge-based tools that will empower him to take informed decisions.

Convenience:

One can call its Dial-N-Trade number to get investment advice and execute his transactions. Sharekhan ltd. has a dedicated call-centre to provide this service via a Toll Free Number 1800-22-7500 &

1800-22-7050 from anywhere in India.


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Customer Service:

Share khan limiteds customer service team will assist one for any help that one may require relatingto transactions, billing, demat and other queries. Its customer service can be contacted via a

toll-free number, email or live chat on www.sharekhan.com.

Investment Advice:

Share khan has dedicated research teams of more than 30 people for fundamental and technica

researches. Its analysts constantly track the pulse of the market and provide timely investment advice

to its clients in the form of daily research emails, online chat, printed reports and SMS on their mobile

phone.

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED:

The different types of products and services offered by Share khan Ltd. are as follows:

y Equity and derivatives trading

y Depository services

y Online services

y Commodities trading

y

Dial-n-tradey Portfolio management

y Share shops

y Fundamental research

y Technical research

Financial products available at Share Khan:

y Equity

y

Derivativesy Mutual funds

y IPOs

y Bonds


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SWOT ANALYSIS:Strengths:

y It is a pioneer in online trading with a turn over of Rs.400crores and more than 800

peoples working in the organization.

y SSKI the parent company of Share Khan has more than eight decades of trust and credibility

in the Indian stock market. In the Asian Money Brokers poll SSKI won the Indias best broking

house for 2004 award.

y Share Khan provides multi-channel access to all its customers through a strong online

presence with www.sharekhan.com, 250 share shops in 130 cities and a call-center based

Dial-n-Trade facility

y

Share Khan has dedicated research teams for fundamental and technical research. Whichconstantly track the pulse of the market and provide timely investment advice free of cost to its

clients which has a strike rate of 70-80%.

Weaknesses:

y Localized presence due to insufficient investments for country wide expansion.

y Lack of awareness among customers because of non-aggressive promotional strategies (print

media, newspapers, etc).

y Lesser emphasis on customer retention.

y Focuses more on HNIs than retail investors which results in meager market-share as

compared to close competitors.

Opportunity:

y With the booming capital market it can successfully launch new services and raise its clients

base.

y It can easily tap the retail investors with small saving through promotional channels like print

media, electronic media, etc.

y As interest on fixed deposits with post office and banks are all time low, more and more small

investors are entering into stock market.

y Abolition of long term capital gain tax on shares and reduction in short term capital gain

is making stock market as hot destination for investment among small investors.

y Increasing usage of internet through broadband connectivity may boost a whole new breed of

investors for trading in securities.


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Threats:

y Aggressive promotional strategies by close competitors may hamper Share Khans acceptanceby new clients.

y Lack of sufficient branch-offices for speedy delivery of services.

y Other players are providing margin funds to investors on easy terms where as there is no such

facility in share khan.

y More and more players are venturing into this domain which can further reduce the earnings of

Share Khan.

ABSTRACT

Real Estate:

The Indian economy is steadily moving forward on its path to prosperity with economic developmentbeing the focal point of the progress. In the post liberalization era, India has attracted huge quantumof foreign direct investment on account of its excellent economic performance and recently real estatesector has also been deregulated and liberalized. Today India is seen as a prime destination for

investment by overseas investors across the board. India's favorable demographic and economicscenario makes it an attractive destination for the real estate investors.

Key Growth Drivers:

The propellants for the real estate sector are

y Growth of India's middle class creating demand for housing.y Strong demographic impetus: India has the second largest population in the world and the

growth rate of population is still rapid.

y Rising FDI levels has increased commercial space requirements by foreign firms.y Expansion of organized retail sector.y Easy availability of finance.


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the thing which they have promised to do although not legally obligated, and the bigger and moresuccessful the man who makes the promise the more surely will it be carried out. Important

obligations are often incurred upon the mere promise of a well-known man to sell an important pieceof property at a definite price, although no legal and enforceable obligation exist; and the promise isalways redeemed if it is made by a man who knows the business, and it is redeemed not merely fromaltruistic motives, but also for purely business reasons.

Divisions of the business The principal divisions of the real estate business are investment,operation and agency. These differ from one another according to the aims of the persons engagingin them and the methods by which those persons expect to make their gains. To conduct either of thefirst two divisions of the business, investment or operation, actual money capital is required. The mostimportant capital in the agency business is the good will of its customers, and that can be husbanded,increased and made very valuable.

Real estate, property and real property defined.Real estate is a form of property. Property is theright to possess and use. Real property, a technical legal word, is the right to possess and use landfor a time which may last for a life or lives or longer. All other property is, in the eyes of the law,personal property. A lease for 999 years, which is not measured by any life, but which must expire ata definite time, is less in term of time, in the eyes of the law, than a conveyance of a piece of land, theduration of which is measured by a life or by several lives.

When we speak of real property we use the words in their technical legal sense. When we speak ofreal estate as a commodity and as a business, it embraces the various parts of the business whichengage the attention of those who follow it as a vocation, and includes interests which in the eye of

the law are not real property, as for example, leases, mortgages, etc.

Every business has in view finally, commercial transactions resulting in the transfer of property ofsome kind; so in our study of the real estate business we have in mind the transfer of title to reaproperty, and among the various subjects we shall consider, are the interests which there may be inland, limitations on ownership, the making of a contract, the conveyances used, the liens which mayaffect a piece of propertyall of which have an important relation to a final commercial transactionthe transfer of title to real property.


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Company Introduction

(1) DLF LTD.

Chairman: - MR. K.P.SINGH

Company Secretary: - MR. HARI HARAN

Registered Office: - Shopping Mall, 3rdFloorArjun Marg, Phase-1,DLF City,

Gurgaon-122 002 (Haryana)

Head Office: - DLF Centre,

Sansad Marg,New Delhi-110 001

Vision: - To contribute significantly to building a new India and toBecome the worlds most valuable real estate company.


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Mission:- To build world class real estate businesses across fiveBusiness lines with the highest standards of professionalism,Ethics, quality and customer service

DLF LTD.

Going back to over six decades, the birth and history of the DLF Limited came to known. LateChaudhury Raghvendra Singh founded it as Raisina Cold Storage and Ice Company Private Limitedand Delhi Land and Finance Private Limited in 1946 and later on KP Singh promoted the DLFLimited. The company was incorporated in the year 1963 as American Universal Electric (India)Limited.

The DLF group is a leading real estate developer in India. The group has over 224 million sq. ft. ofexisting development and 748 million sq. ft. of planned projects. DLF is the company, whichcommitted to quality, trust and customer sensitivity, and deliver on promises with agility, financiaprudence and in tune with the highest global standards.The company has also entered into several strategic alliances with global industry leaders in differentsegment. DLF developed some of the first residential colonies in Delhi such as Krishna Nagar in EastDelhi, which was completed in the year 1949. The Homes business line involves a wide range ofproducts including condominiums, duplexes, row hoses and apartments of varying sizes, with a focuson the higher end of the market. DLF Super brand' ranking company, is the only company in India inthe Consumer validated category from the real estate sector to have been awarded this distinction.

During the year 1969 to 1974, the company formulated 22 urban colonies. The first Landmark reaestate developments project DLF Qutab Enclave was commenced in them year 1975, which has nowevolved into DLF City. DLF City is spread over 3,000 acres in Gurgaon and is an integrated township,which includes residential, commercial and retail Properties in a modern city infrastructure withschools, hospitals, hotels and shopping malls. It also boasts of the prestigious DLF Golf and CountryClub with night golfing facilities. In 1979, DLF United Limited amalgamates with American UniversaElectric (India) Limited. The company was renamed in 1980 as DLF Universal Electric Limited.Subsequently, on May 28, 1981, 'DLF Universal Electric Limited' was again renamed as DLFUniversal Limited. In 1982, the company ventured into Group Housing Projects. During the period1989, the company came to the campaign in Community Shopping Centers. Entry in 1st "A" officespace 'DLF Centre' was took place in 1991 at New Delhi.Constructed the 'DLF Corporate Park', first office Complex at DLF City Gurgaon, Haryana was in theyear 1996. As on 1999, the DLF Industries Limited (DLF Group Company) was amalgamated withDLF Universal Ltd. The next stride of the company was doorway organized retail complexes in theyear 2002. In 2003, the National Expansion into 11cities- IT parks, Homes, Retail, Special EconomicZones (SEZs) and Hotels was emerged.The company launched 12-acre Cyber City and also initiated IT parks in various metros. ThePremium Residential Complex launched in Magnolia by the company in the year 2005, received


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'Corporate Buildings Award' instituted by 'Indian Architect and Builder', a publication of JasubhaMedia Group, Mumbai in the same year and in 2006 DLF expanded in 29 cities across nation,

launched premium residential complex (park place) and joint venture signed between DLF UniversaLimited and U.K. based Laing O'Rourke Plc to form DLF Laing O'Rourke (India) Limited. On May 272006, the company changed its name from DLF Universal Limited to DLF Limited. The allianceagreement signed between DLF Ltd and Hilton International Company to incorporate a joint venturecompany in India to develop, own and acquire 50 to 75 hotels and services apartments and also a

joint venture with WSP Group Plc. for the purposes of providing engineering and design servicesenvironmental and infrastructure facilities and also project management services in the same year.The U.S.-based Prudential Financial, Inc (PFI) and the DLF Group, India's largest real estatedeveloper, signed an agreement to establish a joint venture company in India for provide a broadarray of mutual fund and investment products, including domestic and eventually international mutualfunds to Indian retail and institutional clients under in the name of "DLF Pramerica Asset Managers

Private Limited" on December 2007. As on January 2008 the company signed a Memorandum ofUnderstanding (MOU) with Gayatri Projects Ltd (GPL), one of the leading infrastructure companies inIndia, to develop roads and highway projects across the country worth at least Rs 1,000 crore everyyear and on April of the same year DLF Ltd and Hilton Hotels Corporation in India have signedmanagement agreements involving seven new hotel developments in the pipeline. This marks thesecond stage in the DLF-Hilton Joint Venture Company's overall strategic development plans to buildand develop 75 hotels in India in the next five to seven years. DLF Ltd, with over six decades ofexperience, is focusing on strengthening its lateral and vertical business drivers and charted it nextgrowth steps to retain its leadership position in India, already a major player in locations across thecountry, including metro and key urban centers. The group is capitalizing on emerging marketopportunities to deliver high-end facilities and projects to its wide base of customers by constantly

upgrading its internal skills and resource capabilities. In line with its current expansion plans, the DLFGroup has over 748 million sq. ft. of development across its businesses, including developed, ongoing and planned projects. This land bank is spread over 32 cities, mostly in metros and key urbanareas across India.To increase in corporate and consumer incomes, as well as foreign investment, DLF sees significanopportunities for growth in its three primary businesses such as Residential, Commercial and RetaiProperties Business. DLF's mission is to build a world-class real-estate development company withthe highest standards of professionalism, ethics and custom service.

Major Achievements of DLF:

DLF is the only company in India in the Consumer validated category from the real estate sector tohave been awarded 'Super brand' ranking.Received the 'Corporate Buildings Award' in March 2005 instituted by the leading construction designmagazine 'Indian Architect and Builders'

Awarded by Haryana Urban Development Authority (HUDA) for 'Excellence in HorticulturPreservation'


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(2) UNITECH LTD.Uniworld City, Mohali

Chairman:- MR. RAMESH CHANDRA

Company Secretary: - MR. DEEPAK JAIN

Registered Office:- 6,Community Centre,Saket Place,New Delhi-110017

Head Office: - D-3, District Centre,Saket Place,New Delhi-110017


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UNITECH LTD.

Unitech India Limited is one of the leading Indian real-estate development and town planningcompanies. It is estimated to be around Rs. 1600 Crores , one of the biggest real estate major in thecountry. Unitech was started in 1972 as a consultancy firm for foundation engineering. In last 30years of its existence, Unitech has created a special place for itself amongst the builders of thecountry. Unitech Builders are now known for its wonderful townships, entertainment hubs, recreationcenters, hotels, resorts, sub-cities development, shopping malls and residential units. In Gurgaon, theUnitech Builders are the second most successful group after DLF. The Gurgaon Mall, GreenwoodCenter, Gurgaon Central at Gurgaon and the Amusement Park are the evident examples of theexcellence of Unitech in the city.

INDIAS REAL GDP FROWTH RATE

The current economic crisis that has been observed around the entire globe has affected theemerging economies as well. India on the whole as per the economic indicators is not in recessionbut is definitely facing a slowdown with the rate of Growth of GDP would definitely be affectedHowever the general consensus is that we have already bottomed out and now the only way for theglobal economy would be up. Despite the developments the analysts believe that the global economyis not yet out of the woods. The unemployment rate in the developed countries is continuously on theascent which is not a very good sign.


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INDIAN PERSPECTIVE:The scene for India is not as ominous as the rest of the world due a variety of reasons the most

important being the relatively strong domestic demand & the burgeoning Indian middle class. India'sGDP growth in 2008-09 was one of the highest in the world and reflected the resilience of thecountry's growth impulses to a severe external shock as well as the impact of the policy response tocontain the adverse effects of the global economic crisis on domestic growth. Even in the recentlyconcluded meeting of the 100 CEOS & the Finance Minister, the outlook for the Indian economy hasbeen bullish even though the growth rate for the current fiscal quarter was expected to drop to 6%,the annual growth rate in GDP is expected to be at an optimistic 9%.

AGRICULTURE

Even though the agriculture sector saw a bounce back in the last quarter of 2008-09 the current

monsoon conditions are threatening the overall recovery of the economy. Delayed as well asinadequate southwest monsoon has put the kharif crops in jeopardy which accounts for 57% of thetotal agricultural produce. The food management is a big issue facing the country that needs to betackled & which might act as a drag on the overall economic growth.

INDUSTRIAL

The industries showed a good growth in July 2008, but registered a sharp decline in the second halfof the year with negative growth in December 2008 & March 2009. The infusion of liquidity in order tokick start the economy has its effect on the IIP with some of the sectors showing a phenomena

growth. The electricity sector recorded an appreciable increase whereas the mining & manufacturingrelated to food products has shown a decline.

INFRASTRUCTURE

The core infrastructure sector grew by a good 4.8% vis-a-vis the 3.5% growth shown in thecorresponding sectors for the previous year. The sectors which have shown a growth include thecement, coal & electricity. This augurs well for India in the long run as the fiscal stimulus wouldenable to complete the twin job of putting the economy back on the path of recovery coupled with thedevelopment of the infrastructure in India which has been a laggard for a long time.

MONETARY CONDITIONS:

The contractionary policy that the RBI has adopted to control the inflation would affect the real estatesector.


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RBI hikes short term rates : Interest rates on home, car and other retail loans are set to firm up innear future as the Reserve Bank of India on Friday hiked the rates at which it takes deposits, and

lends short-term funds to banks by 25 basis points. took the decision to tighten money supply focontaining the rising inflation, which has touched 9.9% in February.

CMD of a public sector bank said that RBIs decision to hike the rates is a clear indication to banks toraise their lending rates for containing inflation. However, he refused to give the time line for hiking ofthe rates, saying that it will be done sooner than later. However, he maintained around quarter apercentage points increase in the lending rates across the board.

Standard Chartereds country head, Neeraj Swaroop, also termed RBIs decision to hike rates as asignal to increase the lending rates.

As per the above news Real estate sector noticed a fall in stock prices as interest rates are likely tohike.


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MACROECONOMIC OUTLOOK

The macroeconomic outlook shown by the various global agencies indicates that there is going to berecessionary pressures that would remain prevalent throughout 2009 even though there are someindicators that are showing positive signs. The IMF has revised the growth projection for India from4.5% to 5.4% for the year 2009 even though the finance minister remains optimistic of enjoying a 9%growth.The various surveys that were done by Dun & Bradstreet, CII & NCAER indicate that there woulddefinitely be a change in the business sentiment with the gradual return to optimism for the businessThis business optimism is also seen through the huge rally that has been observed on the BSE &NSE.

Industry Analysis

The Real Estate industry in the recent past has been synonym to success. The Real Estate industryhas been growing in the tough times and supported the Indian economy to an extent that it todayalone stands at the second position in Indian Economy. With large revenue of twelve million dollarsthe Real Estate industry today is estimated to further expand at the rate of thirty percent per annum.With such huge growth facts and figures, the Real Estate Industry has now become a hub for all theaspiring professionals and attracts a large investment either long term or short term. The Real statesector offers various services to the clients and to other industries that revolve around the property. Itseems to be have not possible if with the out the Real Estate sector that we could enjoy the lavishapartments and excellent buildings for the various income groups that we notice walking down thestreet today. It is further the bless of the Real Estate Industry that we enjoy such marvelous

Infrastructure, as the Infrastructure and the Real Estate Industry goes hand in hand making thepresent India a viable destination for growth and prospects of growth. The Real Estate Industry beingthe second largest industry in the Indian economy salutes and grants an equal share of importance tothe related industries who have contributed in the making the Real Estate industry a promisingindustry for the Indian Economy to Rely on. Hence all the aligned industries like Interior Designing,

Architecture, Builders, Manufacturers and other related fields are granted an equal importance andrespect while one can talk about the Real Estate sector alone.

The Real Estate industry has contributed to the growth of the Indian economy without any doubt buton the same hand they have also contributed to the growth of an individual by supporting them withthe excellent jobs in the sector and prompting the knowledge and expertise of the existing key players

in the market. Hence the Real Estate industry has played a dual role in the growth factoras well aparfrom maintaining a large growth and development rate of India. It is the real Estate Industry that hasshaped previous India to a new aged modern India providing excellent facility with the hightechnology mechanism with the vision of growth of the sector with the growth of India. Today we findvarious sectors associating with the Real Estate that are partly or completely responsible to workhand in hand with the Real Estate industry. To conclude one can say that the Real Estate industry isblessed in the modern age to not only the human kind but also to the nation. With tremendous growth


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and development it has signified itself to be a potential sector that can grow and provide support toone and all with the services and development in various methods and factors. The Real Estate

industry aiming to gain the top position would develop in the future economy time with aim to providehome by 2020, which is also now an aim for largest year long festival of Real Estate, The Real IndiaFest.

EXISTING PLAYERS IN REAL ESTATE INDUSTRY

Followings are the existing players in the Indian real estate industry.

(1) KOLTE PATIL DEV.

(2) ORBIT CORPORATION

(3) PENINSULA LAND

(4) ACKRUTI CITY

(5) HDIL

(6) ANSAL PROPERTIES

(7) PARSVNATH DEVELOPERS

(8) ANANT RAJ INDUSTRY

(9) OMAXE

(10) DLF

(11) UNITECH

(12) PHOENIX MILLS

(13) GMR INFRASTRUCTURE

(14) IVRCL INFRA

(15) NAGARJUNA CONSTRUCTURE


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(16) HCC

(17) JP ASSOCIATES

(18) SOBHA DEVELOPERS

(19) INDIABULS REAL ESTATE


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FIVE FORCE MODEL OF REAL ESTATE INDUSTRYTHE FIVE


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THE FIVE FORCES:-

INDUSTRYCOMPETITORS

Rivalries naturally develop between companies competing in the same market. Competitors usemeans such as advertising, introducing new products, more attractive customer service andwarranties, and price competition to enhance their standing and market share in a specific industryTo Porter, the intensity of this rivalry is the result of factors like equally balanced companies, slowgrowth within an industry, high fixed costs, lack of product differentiation, overcapacity and price-cutting, diverse competitors, high stakes investment, and the high risk of industry exit. There are alsomarket entry barriers.

PRESSURE FROM SUBSTITUTE PRODUCTS

Substitute products are the natural result of industry competition, but they place a limit on profitabilitywithin the industry. A substitute product involves the search for a product that can do the samefunction as the product the industry already produces. Porter uses the example of security brokers,who increasingly face substitutes in the form of real estate, money-market funds, and insuranceSubstitute products take on added importance as their availability increases.

BARGAINING POWER OF SUPPLIERS

Suppliers have a great deal of influence over an industry as they affect price increases and producquality. A supplier group exerts even more power over an industry if it is dominated by a few

companies there are no substitute products, the industry is not an important consumer for thesuppliers, their product is essential to the industry, the supplier differs costs, and forward integrationpotential of the supplier group exists. Labor supply can also influence the position of the suppliers.These factors are generally out of the control of the industry or company but strategy can alter thepower of suppliers.

BARGAINING POWER OF BUYERS

The buyer's power is significant in that buyers can force prices down, demand higher quality productsor services, and, in essence, play competitors against one another, all resulting in potential loss ofindustry profits. Buyers exercise more power when they are large-volume buyers, the product is a

significant aspect of the buyer's costs or purchases, the products are standard within an industry,there are few changing or switching costs, the buyers earn low profits, potential for backwardintegration of the buyer group exists, the product is not essential to the buyer's product, and the buyerhas full disclosure about supply, demand, prices, and costs. The bargaining position of buyerschanges with time and a company's (and industry's) competitive strategy.


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POTENTIAL ENTRANTS

Threats of new entrants into an industry depend largely on barriers to entry. Porter identifies six majorbarriers to entry:

y Economies of scale, or decline in unit costs of the product, which force the entrant to enter ona large scale and risk a strong reaction from firms already in the industry, or accepting adisadvantage of costs if entering on a small scale.

y Product differentiation, or brand identification and customer loyalty.y Capital requirements for entry; the investment of large capital, after all, presents a significant

risk.y Switching costs, or the cost the buyer has to absorb to switch from one supplier to another.y Access to distribution channels. New entrants have to establish their distribution in a market

with established distribution channels to secure a space for their product.y Cost disadvantages independent of scale, whereby established companies already have

product technology, access to raw materials, favorable sites, advantages in the formgovernment subsidies, and experience.

PEST ANALYSIS OF REAL ESTATE INDUSTRY

PEST analysis of any industry sector investigates the important factors that are affecting the industryand influencing the companies operating in that sector. PEST is an acronym for political, economicsocial and technological analysis.

Political factors include government policies relating to the industry, tax policies, laws and regulationstrade restrictions and tariffs etc.

The economic factors relate to changes in the wider economy such as economic growth, interesrates, exchange rates and inflation rate, etc.

Social factors often look at the cultural aspects and include health consciousness, population growthrate, age distribution, changes in tastes and buying patterns, etc.

The technological factors relate to the application of new inventions and ideas such as R&D activity

automation, technology incentives and the rate of technological change.

The PEST Analysis is a perfect tool for managers and policy makers; helping them in analyzing theforces that are driving their industry and how these factors will influence their businesses and thewhole industry in general. Our product also presents a brief profile of the industry comprising ofcurrent market, competition in it and future prospects of that sector.


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SWOT ANALY

SIS OF

REAL ESTATE INDUSTRY

Study of the factors which may have an impact on business or industry either in a positive or in anegative way.

Strength is defined as any internal asset, technology, motivation, finance, business links, etc that canhelp to exploit opportunities and to fight off threats.

Weakness is an internal condition which hampers the competitive position or exploitation ofopportunities.

Opportunity is any external circumstance or characteristic which favors the demand of the system orwhere the system is enjoying a competitive advantage.

Threat is a challenge of an unfavorable trend or of any external circumstance. Which will unfavorablyinfluence the position of the system?

STRENGTH:-

y Employment and training opportunities in the field of construction.

y Private sector housing boom and commercial building demands.

y Construction of the multi building projects on the feasible locations in the country.

y Good structured national network facilitates the boom of construction industry.

y Low cost well- educated and skilled labour force is now widely available across the country

y Sufficient availability of raw material and natural resources in the country is supportive for theindustry.

y Real estate development is on high and it is attracting the focus of the industry.


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WEAKNESSES:-

y Distance between construction projects reduces business efficiency.

y Training itself has become a challenge.

y Changing skills requirements and an ageing workforce may accentuate the skills gap.

y Improve in long-term career prospects is highly required to encourage staff retention and newentrants.

y External allocation of large contracts becomes difficult.

y Lack of clearly define processes and procedures for construction and its management.

y Huge amount of money need to be invested in this industry and towards construction.

OPPORTUNITIES:-

y Continuous private sector housing boom will create more construction opportunities.

y Public sector projects through Public Private Partnerships will bring further opportunities.

y Developing supply chain through involvement in large projects is likely to enhance the chancesin construction.

y Renewable energy projects will offer opportunities to develop skills and capacity in newmarkets.

y More flexible training delivery techniques are now available.

y Financial supports like loan and insurance and growth in income of people is in support ofconstruction industry.

y Historical cultural heritages like the TAZ MAHAL encourage and provide a creative platform forthe industry.


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COMPANY ANALYSIS

In this project report for company analysis we have selected two major real estate companies whichare as follows:

1) DLF LTD.

2) UNITECH LTD.

DLF LTD.

GENERAL INFONMATION:-

Incorporation Year 1963

Registered Office Shopping Mall 3rd Floor, Arjun Marg Phase-I DLF City,Gurgaon, Haryana - 122002

Telephone 91-124-4334200

Fax 91-124-2355581

Chairman K P Singh

Managing Director T C Goyal

Company Secretary Subhash C Setia

Auditor Walker Chandiok & Co

Face Value 2

Market Lot 1

Listing Mumbai, NSE


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Registrar Karvy Computershare Pvt. Ltd

Plot No 17-24, Vittal Rao Nagar, Madhapur, and Hyderabad-500081

UNITECH LTD.

GENERAL INFORMATION:-

Incorporation Year 1971

Registered Office 6 Community Centre, Saket,New Delhi,New Delhi-110017

Telephone 91-11-26857331/26857330

Fax 91-11-26857338

Chairman Ramesh Chandra

Managing Director Sanjay Chandra

Company Secretary Deepak Jain

Auditor Goel Garg & Co.

Face Value 2

Market Lot 1

Listing Mumbai, NSE

Registrar Alankit Assignments Ltd2E/21 Alankit House, Anarkali Market,Jhandewalan Extn, New Delhi - 110055


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RATIO ANALYSIS

The analysis of financial statements aims to study the relationship amongst various factors in abusiness as disclosed in the financial statements for particular period trend of these factors can bestudied through the examination of such financial statements over a period of time. The study can bedone from different angles for a number of different end users of the financial data of a company.These end users may include shareholders, creditors, management, government and the financiaanalyst. The different end users are interested in different information with different objective. Forexample a shareholder is interested in the yield and safety of his capital invested in the company. Hismain concern is with the profitability and distribution of dividend apart from enhancement of the networth. Creditors view the companys financial data from the judging its repayment capacity and abilityof services the debt; where as a short-term creditor is interested in the companys liquid position,which he estimates by efficient fund and generation of competing profitability. In this way end usersstrive to analyses the data to fulfill their own respective objectives.

The most easy way to carry on such analysis is way of ratios, which help in reading the relationshipbetween factors at a sight, because interpretation of financial data shown in absolute figuresbecomes difficult. To study the changes over the years in the financial data is rendered easy by theuse of ratio analysis of financial data. Ratio measure the relationship between two figures and whichtwo figures and which two figures are compared with each other depends upon the objective ofcomparison.

Debt-Equity Ratio:-

This ratio is only another form of proprietary ratio and establishes relationship between the outsidelong-term liabilities and owners funds. It shows the proportion of long-term External Equities andInternal Equities.

Long term liabilities= ----------------------------- * 100

Shareholders funds


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YEAR DLF UNITECH

2007 7.54 3.1

2008 1.27 3.55

2009 0.76 1.6

DEBT EQUITY RATIO

YEAR

Comment:-

Debt-Equity ratio shows the proportion of debt and equity used by the company in its financiastructure. The above graph shows that in the financial year 2007 the debt-equity ratio of UNITECH

2 0 0 7 2 0 0

2 0 0

0

2

7

D

UNITECH


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and DLF is 3.1 and 7.54 respectively, which shows that DLF is using more debt in its financialstructure as compare to the UNITECH in proportion to shareholders funds. In the financial year 2008

and 2009 the UNITECH is using more debt in its financial structure as compare to DLF in proportionto shareholders funds. A wise mix of debt and equity can increase the return on equity for tworeasons:

1. Debt is generally cheaper than equity.2. Interest payments are tax-deductible expense, whereas dividends are paid from taxed profits. Inaddition, dividend payment attracts dividend distribution tax.

But excessive use of debt financing is risky. A company has a legal obligation to make interestpayments and to repay the principle at the due dates. If a company takes on so much debt that it

becomes unable to make the required interest and principal disbursements on time. The ratioindicates the extent of use of financial leverage. A high debt-to-equity ratio indicates aggressive useof leverage, and a highly leveraged company is more risky for creditors. A low ratio on the other handsuggests that the company is making little use of leverage and is too conservative. Here we can sayin 2007 DLF had a very high ratio hence DLF was a more risky firms for creditors. And at the time ofrecession DLF decided to reduce their risk and they started paying their debts by selling their assetsand revenues. On the other hand in 2008 Unitech had a high debt-to-equity ratio and soon theyrealize the risk and they also reduced their debt-to-equity ratio in 2009.

Current Ratio:-

This most widely used ratio shows the proportion of current assets to current liability. It is also knownas Working Capital Ratio as it is a measure of working capital available at a particular time. The ratiois obtained by dividing current assets by the current liabilities.

Current Assets= ------------------------------

Current Liabilities

YEAR DLF UNITECH

2007 1.91 1.31


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2008 1.93 1.37

2009 2.34 1.45

CURRENT RATIO

YEAR

0

0.5

1

1.5

2

2.5

2007 2008 2009

DLF

UNITECH


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Comment:-

The current ratio indicates the current assets and liabilities that company is using. Above graphshows that DLF is using more current assents as compare to the UNITECH in proportion to thecurrent liabilities in the financial years 2007, 2008 and 2009. It is widely used indicator of a companysability to pay its debts in short-term. It shows the amount of current assets a company has per rupeeof current liabilities. Here current assets include loan and advances and current liabilities includeprovisions.The increase in DLF current ratio means that in 2009 the company had more current assets to meetits current liabilities. This is the good news for the companys short- term creditors. So we can saythat DLF is in more strong position to cover its liabilities.

Debtors Ratio:-

The ratio shows the number of days taken to collect the dues of credit sales. It shows the efficiency orotherwise of the collection policy of the enterprise.

Debtors + Bills Receivable

= ----------------------------------------- * 365 daysCredit sales

YEAR DLF UNITECH

2007 11.32 28.77


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2008 6.67 6.7

2009 3.37 2.4


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DEBTORS RATIO

YEAR

Comment:-

The debtors ratio indicates the credit sales of the company. The number of days taken to collect thedues of credit sales. The above graph shows that both the companies are reducing the time period tocollect the dues of credit sales. Both the companies has reduced collection period, indicatingimprovement in collection. Company who takes fewer days to collect it dues has more turnover of itsmoney and can invest it further.

InterestC

overage Ratio:-The interest coverage ratio measures the ability of the company to meet its interest payments arisingfrom the debt

11.32

6.67

3.37

28.77

6.7

2.4

0

5

10

15

20

25

30

35

2007 2008 2009

DLF

UNITECH


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= Earnings Before interest and taxes (EBIT)------------------------------------------------

Interest

YEAR DLF UNITECH

2007 2.75 2.94

2008 7.97 4.47

2009 3.23 2.32


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INTEREST COVERAGE RATIO

Comment:-

The interest coverage ratio indicates the ability of the company to use the debt in its financia

structure. The ability of the company to meet interest payment arising from the debt. In the year 2007the DLF ratio is lower because in that year co. has used more debt as compare to the shareholdersfunds. The graph shows that the ability of interest payment of DLF is higher because of the earningsof the company as compare to the UNITECH. This is the measure of the protection available tocreditors or payment of interest charges by the company. The ratio shows whether the company hassufficient income to cover its interest requirements by a wide margin. The interest coverage ratio iscomputed by dividing profit before interest and tax by the interest expenses. A high ratio impliesadequate safety for payment of interest even if there were to be a drop in the companys earnings.

Return on Capital Employed:-

0

1

2

3

4

5

6

7

8

9

2007 2008 2009

DLF

UNITECH


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It is an index of profitability of business and is obtained by comparing net profit with capital employed.

The ratio is normally expressed in the percentage.

Net profit before interest & tax= -------------------------------------------* 100

Capital Employed

YEAR DLF (%) UNITECH (%)

2007 17.65 54.16

2008 26.34 2.34

2009 12.58 16.14


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Comment:-

The return on capital employed indicates what extent the management of the co. in able to collect

debt from the market. The graph shows that the return on capital employed of UNITECH is somewhat higher than the DLF.

NET PROFIT RATIO:-

The ratio is valuable for the purpose of ascertaining the over-all profitability of business and showsthe efficiency or otherwise of operating the business. It is the reverse of the operating ratio. Net Profit

After Interest & Tax= -----------------------------------------* 100

Net Sales

YEAR DLF (%) UNITECH (%)

17.65

26.34

12.58

54.16

2.34

16.14

0

10

20

30

40

50

60

2007 2008 2009

DLF (%)

UNITECH (%)


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The net profit ratio indicates the overall profitability of the company. The above graph shows the netprofit of DLF is lower in the year 2007 because the co. has used more debt and interest payment on

the debt. In the year 2008 and 2009 the net profit ratio of DLF is higher than UNITECH.

P/E RATIO:-

P/E ratio shows the price earning ratio. It take into consideration the market price and earning pershare. The formula is given bellow:

MARKET PRICE PER SHARE= ---------------------------------------

EPSDLF % UNITECH %

75% 41.78%

Comment:-The P/E ratio indicates price earning ratio. The current market price and earning par share is used forthe calculation of P/E ratio. The above graph indicates the price earning ratio of DLF is higher thanUNITECH.

Technical Analysis

What Is Technical Analysis?

Technical analysis is a security analysis technique that claims the ability to forecast the futuredirection of prices through the study of past market data, primarily price and volume. In its purestform, technical analysis considers only the actual price and volume behavior of the market orinstrument. Technical analysts, sometimes called "chartists", may employ models and trading rulesbased on price and volume transformations, such as the relative strength index, moving averagesregressions, inter market and intra-market price correlations, cycles or, classically, through

recognition of chart patterns.Technical analysis stands in distinction to fundamental analysis. Technical analysis "ignores" theactual nature of the company, market, currency or commodity and is based solely on "the charts," thatis to say price and volume information, whereas fundamental analysis does look at the actual facts ofthe company, market, currency or commodity. For example, any large brokerage, trading group, orfinancial institution will typically have both a technical analysis and fundamental analysis team.


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Just as there are many investment styles on the fundamental side, there are also many differenttypes of technical traders. Some rely on chart patterns; others use technical indicators and oscillators,

and most use some combination of the two. In any case, technical analysts' exclusive use of historicalprice and volume data is what separates them from their fundamental counterparts. Unlikefundamental analysts, technical analysts don't care whether a stock is undervalued - the only thingthat matters is a security's past trading data and what information this data can provide about wherethe security might move in the future.

MOVEMENT OF NIFTY AND DLF IN 2008 & 2009

MONTH( 2008 ) NIFTY DLF

JAN 6144.35 1071.25

FEB 5317.25 813.6

MAR 4953 713

APR 4739.55 626.9

MAY 5228.2 721.35


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JUN 4739.6 562.4

JULY 3896.55 362.15

AUG 4413.55 518

SEP 4348.65 495.2

OCT 3950.75 344.05

NOV 3043.85 254

DEC 2682.9 177.7


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JAN(2009 ) 3033.45 292.3

FEB 2766.65 153

MAR 2674.6 149.05

APR 2674.6 177.

MAY 3654 234

JUN 4529.9 414


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JULY 4340.9 327.95

AUG 4711.4 406

SEP 4625.35 414.15

OCT 5083.4 436.15

NOV 5083.4 340.55

DEC 5122 371.7


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MOVEMENT OF NIFTY AND UNITECH IN 2008 & 2009MONTH(2008 ) NIFTY UNITECH

JAN 6144.35 507.3

FEB 5317.25 373.2

MAR 4953 373.2


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APR 4739.55 275.1

MAY 5228.2 275.1

JUN 4739.6 275.1

JULY 3896.55 161

AUG 4413.55 168.9

SEP 4348.65 158.7

OCT 3950.75 115.5

NOV 3043.85 48.85

DEC 2682.9 24.25


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JAN( 2009 ) 3033.45 45.5

FEB 2766.65 29.15

MAR 2674.6 26.95


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APR 2674.6 37.2

MAY 3654 48.8

JUN 4529.9 92.7

JULY 4340.9 83.1

AUG 4711.4 94.8

SEP 4625.35 103.65

OCT 5083.4 105.35

NOV 5083.4 75

DEC 5122 89.4


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COMPARISION OF STOCK PRICES OF DLF ANDUNITECH (2008)

2008 DLF UNITECH

JAN 1071.25 507.3

FEB 813.6 373.2


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MAR 713 373.2

APR 626.95275.1

MAY 721.35 275.1

JUN 562.4 275.1

JULY 362.15 161

AUG 518 168

SEP 495.2 158.7

OCT 344.05 115.5

NOV 254 48.85


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DEC 177.7 24.25

2009 DLF UNITECH


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JAN 3033.45 45.5

FEB 2766.65 29.15

MAR 2674.6 26.95

APR 2674.6 37.2

MAY 3654 48.8

JUN 4529.9 92.7

JULY 327.95 83.1

AUG 406 94

SEP 414.15 103.65

OCT 436.15 105.35


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NOV 340.55 75

DEC 371.7 89.4

Comment:-The above graph shows the stock price movement of DLF and UNITECH from Jan. to Sept. Themovement is almost same in both the company but there is a high movement in the stock price of

DLF as compare to the movement in the stock price of UNITECH

COMPARISION OF EPS OF DLF AND UNITECH

YEAR 2007 2008 2009


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DLF 2.29 14.42 8.95

UNITECH 12.03 6.31 4.53

EPS COMPARISION

Comment:-The above graph indicates the earning per share of both the company. As compare tothe UNITECH the earning per share of DLF is higher in the year 2008 and 2009 but

D L F U N IT E C H

0

2

8

0

2


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Comments:-The above graph shows the dividend yield of both the company in the year 2008 and2009. As compare to UNITECH the dividend yield of DLF is higher in both years. Itshows that DLF is giving higher dividend to its shareholders as compare to UNITECH.

CONCLUSION

In the years ahead, the Real industry in India has to overcome various challenges with respect tohousing, environment, transportation, power or natural hazards.

Real Estate industry is growing at a faster rate in the India. The gains of large investments in themega-projects eventually will feedback to the construction industry itself in then form of bettereconomy and improved work conditions.

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U N IT E C H ! "

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The outstanding performance under demanding situations in the past will stand in good stead and

give confidence to the Indian real industry to bring about an overall development in the infrastructureof the nation.

we can conclude that the investment in DLF LTD and UNITECH LTD Is beneficial because both thecompanies are profit making and growing at a faster rate.

As compare to UNITECH Company the investment in DLF company is more beneficial because oft hemovement in the stock price of DLF company is more than UNITECH.

The Net Profit of the company is increasing and the Price Earning ratio is also higher than UNITECH.

BIBLIOGRAPHY

y Newspaper Articles

y Annual Report of Companies

y www.moneycontrol.com

y apollosindhoori.com

y

www.google.com

y www.scribed.com

y www.bseindia.com

y www.nseindia.com


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