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TRANSCRIPT
© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 663
“FUNDAMENTAL ANALYSIS OF SELECTED
STOCKS IN INDIAN STOCK MARKET”
Iwansh A. Christian
Research Scholar, Shri D.N. Institute of PG Studies in Commerce,
Anand – 388001. (Gujarat – India).
Dr. JayeshPoojara
Research Guide &Principal, Shri D.N. Institute of PG Studies in Commerce,
Anand – 388001. (Gujarat – India).
Abstract:
The main reason of this paper is to seek out right approach to
the analysis of exchange common in Asian nation and assume that moment during which Indian
investors had higher take action by victimization totally
different strategies throughout positive amount of your time. in addition I took at totally
different angles as well as the inspiration to get, dangers and therefore the equivocation practices
in Indian securities exchanges. This paper appearance at the investors' esteem is computed by
utilizing the financial proportions supported chosen organizations. Financial gain articulation,
accounting report and wage sheet amid specific day and age. I notice comparable results for
chosen companies.
Keywords: Fundamental Analysis, Stock Market.
1. INTRODUCTION
Before purchasing a stock in showcase we generally consider its future execution whether it
will produce salary or not in the coming future if this will create pay we give first inclination
to purchase that specific stock however in the event that this will doesn't create pay we don't
purchase. In other words before buying stock our prediction says yesthat will grow in
futurethen we decide to hold stock this is the common thinking of most of all investors but
for a value investor should not depend only prediction and they not always worry about the
present market price of specific stock.Financial specialist should first attempt to know the
stock is overestimated, disparaged or effectively esteemed in the share trading system.For
this investigation redress sensible estimation of a particular stock I track essential
examination in addition to central examination dependably give reasonable estimation of
specific stock in money markets.
It generally fitting carryout basic examination or research before making an offer in any
stock or any securities. For instance give a genuine case when we buy shoes from advertise
we wear it no less than two three times. We likewise check it is agreeable or not by strolling
© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 664
two-three times in the event that we take mind by purchasing such a little thing why we are
so easygoing in interest in securities exchange. Well one reason is we don't comprehend
what key investigation is or how to do major examination of the specific stock. In the event
that this is the money so this paper is for those which are don't recognize what major
investigation is. I attempt my best for disclose how to do crucial examination improved the
situation any stock.In simple word Fundamental Analysis will support you to taking
decision.
What is Fundamental Analysis?
Fundamental Analysis = Fundamental value of the stock
For done any Fundamental Analysis you want to analysis a lot of data like CorporateModel,
Product Range, Competition, Financials, Historical Performance and Upcoming Prospects
which helps investors to making decisions.
How to do Fundamental Analysis.
- Cash Flow Statement
- Income Statement
- Balance Sheet
2. COMPANY PROFILE
For this study I have selected total 3 companies for Fundamental Analysis. This
companies is first 3 company of Top ten companies in Indian Stock market in other word
this companies also known as Blue Chip Companies is:
1. TCS
2. ITC Ltd.
3. HDFC Bank
Fundamental Analysis
Financial Statement
Revenue Growth Expense
© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 665
1. TCS (Tata Consultancy Services):
- Founded in 1968 by division of Tata Sons Limited (50 years ago)
- Headquarters : Mumbai, Maharashtra.
- Operates : 46 countries.
- Type : Public.
- Services : IT, Business Consulting.
- Market Cap : ₹ 540920.24 Cr.
- Current Price : ₹ 2825.7
- Book value : ₹ 549.39
- Stock P/E : ₹ 21.15
- Face Value : ₹ 1
- Listed on : BSE and NSE.
2. ITC
- Founded : 24 August, 1910.
- Headquarters : Kolkata, West Bengal.
- Type : Public.
- Products : Consumer goods, Tobacco, Hotels, Papers.
- Market Cap : ₹ 317793.54 Cr.
- Current Price : ₹ 260.5
- Book Value : ₹ 43.96
- Stock P/E : ₹ 29.74
- Face Value : ₹ 1
- Listed on : BSE and NSE
3. HDFC Bank Ltd.:
- Founded : August, 1994.
- Headquarters : Mumbai, Maharashtra, India.
- Operates : India.
- Type : Public.
- Products : Consumer Banking, Corporate Banking, Insurance.
- Market Cap : ₹ 480623.88 Cr.
- Current price : ₹ 1853.
- Book Value : ₹ 393.83.
- Stock P/E : ₹ 28.82.
- Face Value : ₹ 2.
- Listed on : BSE and NSE.
© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 666
3. RESEARCH METHODOLOGY
3.1Time period of the Study:
- Time period of the study: i.e. 2015-2017.
3.2 Objectives of the Study:
- Following are the main objectives of the this fundamental analysis
1. To briefly understand the TCS, ITC and HDFC Bank ltd.
2. To classify the supreme stock in this tree Blue Chip Companies.
3. To do Fundamental Analysis of chose Stock in securities exchange.
4. To identify most appropriate stock from value investors.
3.3 Source of Data Collection:
- Information mainly collected from selected company’s website, moneycontrol.com, NSE
and BSE websites etc.
- Balance sheet of selected companies.i.e. TCS, ITC Ltd. And HDFC Bank.
3.4 Choice of Analysis:
- To investigation of individual stock investigator generally lean toward Fundamental
Analysis.
- Ratio Analysis
EPS (Earning Per Share)
Dividend Per Share
Net Operating Profit Per Share
Total Book Value
3.5 Limitations of the study:
- Could not be enough to predict the future price movement.
- Only 3 years undertaken for this study.
- This study can be used only for short term decision making.
- Only 3 company selected for this study.
4. DATA ANALYSIS
1. EPS (Earning Per Share):
© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 667
[VALUE]
[VALUE] 120.04
11.99 12.23 8.4
38.0444.9 46.85
0
20
40
60
80
100
120
140
2015 2016 2017
EPS (Earning Per Share)
TCS
ITC
HDFC
𝑬𝑷𝑺 =Net Income
Number of Shares
Year TCS ITC HDFC
2015 98.31 11.99 38.04
2016 117.11 12.23 44.90
2017 120.04 8.40 46.85
2. Dividend Per Share:
𝑫𝑷𝑺 =𝑇𝑜𝑡𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
Total Number of Shares
Year TCS ITC HDFC
2015 79 6.25 15
2016 43.50 8.50 17
2017 47 4.75 18
© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 668
3. Net Operating Profit per Share (Rs. in cr.)
𝑁𝑂𝑃𝑆 =Net Operating Income
Total Number of Shares
Year TCS ITC HDFC
2015 375.64 45.55 174.01
2016 435.76 45.78 195.62
2017 470.42 33 208.43
79
43.547
6.25 8.5 4.75
15 17 18
0
10
20
30
40
50
60
70
80
90
2015 2016 2017
Dividend Per Share
TCS
ITC
HDFC
375.64
435.76470.42
45.55 45.78 33
174.01195.62 208.43
0
50
100
150
200
250
300
350
400
450
500
2015 2016 2017
Net Operating Profit per Share
TCS
ITC
HDFC
© 2018 IJRAR July 2018, Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR1903212 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 669
4. Total Book Value:
𝑇𝐵𝑉 =Book Value
𝐸𝑃𝑆
Year TCS ITC HDFC
2015 2.36 3.19 5.17
2016 2.82 3.34 4.80
2017 3.30 4.44 5.32
5. FINDINGS AND SUGGESTIONS
5.1 Findings:
- In EPS Ratio TCS was the best perform by 2015-98.31, 2016-117.11 and 2017-12.04.
- In Dividend per Share Ratio ITC is not perform well by 2015-6.25, 2016-8.50 and 2017-
4.75.
- In Net Operating Profit per Share Ratio HDFC is also need to improve performance by
2015-174.01, 2016-195.62 and 2017-208.43.
- Total Book Value is mostly competitive in this three big cap companies.
- In overall performance TCS is the best stock for value of investors.
5.2 Suggestions:
- In Earning perShare Ratio ITC needs to improve to perform well in future.
- In Dividend per Share TCS perform well with the comparison of other two companies.
- Overall analysis says that TCS is the finest stock for investors and ITC and HDFC needs
to improve their performance in future.
- TCS is the perfect stock of investment and TCS give best value to investors.
2.362.82
3.3
3.19 3.344.44
5.174.8 5.32
0
1
2
3
4
5
6
2015 2016 2017
Total Book Value
TCS
ITC
HDFC
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6. CONCLUSION
In Indian capital market without Fundamental examination there is hazard to underwrite in
any stock. In any case, In India Stock market had a decent and incredible execution in past
yet there is hazard to contribute on the premise on past execution that is I think about this
investigation for financial specialist in India. I for the most part pick this three organizations
or in other word to state top three organizations in India. At whatever point financial
specialist consider venture there need to some investigation for specific stock like
organization's situation in advertise and past execution. Additionally Fundamental Analysis
demonstrates the genuine estimation of the organization. In this my examination I
discovered TCs is the best stock for speculation Indian securities exchange and other two
organizations ITC and HDFC bank needs to perform well in future. I have attempted to
demonstrate the best stock or best organizations for interest in Indian securities exchange
and furthermore demonstrate the best organization in every one of the 3 organizations.
References:-
1) Ahmed S.Wafi, Hassan Hassan, Adel Mabrouk, “ Fundamental Analysis Models in
Financial markets- Review Study”
2) Ajit Kumar, “who gets what’s? Shareholder value of Acquires and Targets in Indian
takeover”
3) GopikishnaSuvanam&AmitTrivedi, “Imbalance created because of Structured product in
Indian equity Markets”
4) Piyush Kumar, N.R.Govida Sharma, “ Fundamental Analysis of a selected stock in
capital market industry”
5) VernikaCaljRusic, univ,bacc.oec, “ Fundamental and Technical Analysis on stock
market”
Webliography:
- www.google.com
- www.wikipedia.org
- www.investopedia.org
- www.screener.in
- www.moneycontrol.com
- www.nseindia,com
- www.profit.ndtv.com
- www.economictimes.com