rakesh summer training project

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Summer Training

Project Report

ON

EQUITY RESEARCH

Submitted for the partial fulfillment for the award of the

degree of

MASTER OF BUSINESS ADMINISTRATION(MBA)

Under the supervision of

Ms. Preeti Arrora (Branch Head)

(Nirmal Bang Securities Ltd.)

Submitted by:

Rakesh Kumar Shukla (03019103909)

Gitarattan International Business School

(Affiliated by Guru Gobind Singh Indraprastha

University)

Rohini, New Delhi-110085


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(2009-2011)

2

2010

Created By:

Rakesh kumar shukla(GIBS)

2009-11

EQUITY RESEARCHREPORT

(INFRASTRUCTURE)


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S U M M E R T R A I N I N G P R O J E C T

O N

EQUITY ANALYSISIn f ras t ruc ture

SUBMITTED TO:

SUBMITTED BY:

Firoj (Zonal Head) Rakesh Kumar Shukla

Nirmal Bang Securities

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CONTENTS

ACKNOWLEDGEMENT

5

EXECUTIVE SUMMERY

6

HISTORY OF THE STOCK BROKING INDUSTRY

7

BREIF COMPANY PROFILE

11

CHAPTER1: INTRODUCTION

19

INTRODUCTION

20

RATIONALE

21

OBJECTIVES

22

RESEARCH METHODOLOGY AND DESIGN

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CHAPTER 2: TECHNICAL ANALYSIS OVERVIEW

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24

CHAPTER 3: FUNDAMENTAL ANALYSIS OVERVIEW

31

CHAPTER 4: INFRASRUCTURE SECTOR

41

ECONOMIC OVERVIEW 42

CURRENT SCENARIO

43

INFRASTRUCTURE IN INDIA 44

BUDGET 2010 IMPACT

46

CHAPTER 5: ANALYSIS

47

DLF ANALYSIS

48

J P ACCOSIATE ANALYSIS

54

GMR INFRA ANALYSIS

61

FINDINGS & CONCLUSION

67

BIBLIOGRAPHY

68

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ACKNOWLEDGEMENT

To acknowledge is very great way to show your gratitude towards

the persons who have contributed in your success in one or other

way.

It is our personal belief that no report is the result of only its

authors efforts. There are many people who contribute something

or the other, and thus play significant role in laying the effective

report that is capable of achieving its purpose. Therefore, we would

like to take this opportunity to thanks all those people who helped

me in preparation of this project, guiding me towards the

achievement of its purpose.We find words inadequate to express my gratitude to

BRANCH MANAGER, Ms. Preeti Arrora to providing us an

opportunity to carry out our summer training as such a well reputed

and leading stock broking company NIRMAL BANG Pvt. Ltd.

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EXECUTIVE SUMMERY

We have undergone my summer training at NIRMAL BANG

SECURITIES Ltd. Nirmal Bang is one of the reputed and leading

company in India. Better known for its research, this company was

established on 1986.

During the training period we got the practical knowledge of

derivatives market and Equity markets. We noted that the

infrastructure companies are booming sectors in the market, the

investment in the infrastructure companies are more and there are

possibilities of this sectors price may rise more in the future, by

watching this we have decided previously that we will select theinfrastructure sector as our project. During the training session we

had studied the price rise and decline in this sectors every day. It

was a great excitement for us to sit in the dealing room and

practically viewing the trades taking process of the infrastructure

companies and other companies on TRADER TERMINAL.

This project constitutes the details of Equity Analysis of

infrastructure related companies listed in NSE and BSC .It alsoconsists of the Fundamental analysis and technical analysis of

these companies. We have done detail study and Research on these

three main companies JP ASSOCIATES, DLF, GMR.

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HISTORY OF THE STOCK BROKINGINDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history

dates back to nearly 200 years ago. 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 and at currently it reached to the

figure of 24 stock exchanges.

This was followed by the formation of associations /exchanges in

Ahmadabad (1894), Calcutta (1908), and Madras (1937).

In order to check such aberrations and promote a more orderly

development of the stock market, the central government

introduced a legislation called the Securities Contracts

(Regulation) Act, 1956. Under this legislation, it is mandatory on

the part of stock exchanges to seek government recognition. As ofJanuary 2002 there were 23 stock exchanges recognized by the

central Government. They are located at Ahmadabad, Bangalore,

Baroda, Bhubaneswar, Calcutta, Chennai, (the Madras stock

Exchanges), Cochin, Coimbatore, Delhi, Guwahati, Hyderabad,

Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai (the

National Stock Exchange or NSE), Mumbai (The Stock

Exchange), popularly called the Bombay Stock Exchange, Mumbai

(OTCExchange of India), Mumbai (The Inter-connected StockExchange of India), Patna, Pune, and Rajkot. Of course, the

principle bourses are the National Stock Exchange and The

Bombay Stock Exchange, accounting for the bulk of the business

done on the Indian stock market.

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BSE (BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as"BSE" was established in 1875 as "The NativeShare and Stock Brokers Association". It is theoldest one in Asia, even older than the Tokyo Stock

Exchange, which was established in 1878. It is thefirst Stock Exchange in the Country to have obtainedpermanent recognition in 1956 from the Govt. ofIndia under the Securities Contracts (Regulation) Act,1956.A Governing Board having 20 directors is the apexbody, which decides the policies and regulates theaffairs of the Exchange. The Governing Board

consists of 9 elected directors, who are from thebroking comm. Unity (one third of them retire everyear by rotation), three SEBI nominees, six publicrepresentatives and an Executive Director & ChiefExecutive Officer and a Chief Operating Officer.

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NSE (NATIONAL STOCK EXCHANGE)NSE was incorporated in 1992 and was given recognition as a

stock exchange in April 1993. It started operations in June 1994,

with trading on the Wholesale Debt Market Segment. Subsequently

it launched the Capital Market Segment in November 1994 as a

trading platform for equities and the Futures and Options Segment

in June 2000 for various derivative instruments.

MCX (MULTI COMMODITY EXCHANGE)MULTI COMMODITY EXCHANGE of India limitedis a new order exchange with a mandate for settingup a nationwide, online multi-commodity marketplace, offering unlimited growth opportunities tocommodities market participants. As a true neutral

market, MCX has taken several initiatives for users ina new generation commodities futures market in theprocess, become the countrys premier exchange.MCX, an independent and a de-mutualized exchangesince inception, is all set up to introduce a state ofthe art, online digital exchange for commoditiesfutures trading in the country and has accordingly

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initiated several steps to translate this vision intoreality.

NCDEX (NATIONAL COMMODITIES AND

DERIVATIVES EXCHANGE)NCDEX started working on 15th December, 2003. This exchange

provides facilities to their trading and clearing member at different

130 centers for contract. In commodity market the main

participants are speculators, hedgers and arbitrageurs.

Facilities Provided By NCDEX

NCDEX has developed facility for checking ofcommodity and also provides a wear housefacility

By collaborating with industrial partners,industrial companies, news agencies, banks anddevelopers of kiosk network NCDEX is able toprovide current rates and contracts rate.

To prepare guidelines related to special products

of securitization NCDEX works with bank.To avail farmers from risk of fluctuation in prices

NCDEX provides special services for agricultural.

NCDEX is working with tax officer to make cleardifferent types of sales and service taxes.

NCDEX is providing attractive products likeweather derivatives

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COMPANY PROFILE

Nirmal Bang- Founded in 1986 by Shri Nirmal Bang, the Nirmal

Bang Group is recognized as one of the largest retail broking

houses in India, providing an array of financial products and

services. The Group is headed by Mr. Dilip Bang and Mr. Kishore

Bang who bring forward industry expertise, insight and most

importantly, create an environment of unmatched commitment to

clients. We emphasize adequate, thorough research local and

world-wide developments, balancing these with the astute

discovery of intrinsic values, synergies and growth.

Nirmal Bang offers a full suite of products and services to

Corporate, Institutional and Individual clients. The range ofservices include:-

Capital Market Products

Private Equity

Corporate Advisory Services

Stock Broking - Institutional & Retail

Distribution of Financial Products

Fund Management (Managing Clients' Assets-Pension/PF

Fund Managers)

Research Group

We are registered members of the Bombay Stock Exchange

Limited (BSE), National stock Exchange of India Limited (NSE),

Multi Commodity Exchange of India Limited (MCX), National

Commodity & Derivatives Exchange Limited (NCDEX), National

Multi Commodity Exchange of India Limited (NMCE) and MCX

Stock Exchange Limited and are also depository participants ofNSDL and CDSL.

We believe in to create valuable relationships and provide the

best financial services most professionally.

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Areas Covered by Nirmal Bang in INDIA

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Services provided by Nirmal Bang

Prime Brokerage Services

EquityEquity Derivatives

Indices Derivatives

Commodity Derivatives

Depository Services

CDSL

Distribution Services

Mutual Fund Distribution

IPO Distribution

Insurance Product Distribution

Asset Management & Advisory Services

Portfolio Management Services

Portfolio Advisory ServicesStructured Trading Products with Innovative Ideas/strategies

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Memberships/Affiliations

National Stock Exchange of India Ltd (NSE)

The Stock Exchange, Mumbai (BSE)

Futures & Option Segment of NSE & BSE

SEBI Registered Portfolio Manager

Multi Commodity Exchange (MCX)

Depository Participants with CDSL

Distributors of Mutual Funds (AMFI),Insurance &

IPO's

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NIRMAL BANG consultant

As the flagship company of the NIRMAL BANG Group,NIRMAL BANG Private Limited has always remained at the helm

of organizational affairs, pioneering business policies, work ethic

and channels of progress. NIRMAL BANG believes that they were

best positioned to venture into that activity as a Depository

Participant. They were one of the early entrants registered as

Depository Participant with NSDL (National Securities Depository

Limited), the first Depository in the country and then with CDSL

(Central Depository Services Limited). Today, It service over 1Lac

customer accounts in this business spread across over 350

cities/towns in India and are ranked amongst the largest Depository

Participants in the country. With a growing secondary market

presence. It has transferred this business to NIRMAL BANG

SECURITIES PRIVATE LIMITED (NBSPL), their associate and

a member of NSE, BSE, MCX & NCDEX.

NIRMAL BANG --- Early Days

The birth of NIRMAL BANG was on a modest scale in 1986. It

began with the vision and enterprise of a small group of practicing

Chartered Accountants who founded the flagship company.

NIRMAL BANG Securities Private Limited. It started with

consulting and financial accounting automation, and carvedinroads. Since then, they have utilized their experience and

superlative expertise to go from strength to strengthto better

their services, to provide new ones, to innovate, diversify and in

the process, evolved NIRMAL BANG as one of Indias premier

integrated financial service enterprise.

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Thus over the last 20 years NIRMAL BANG has traveled the

success route, towards building a reputation as an integrated

financial services provider, offering a wide spectrum of services.

And they have made this journey by taking the route of quality

service, path breaking innovations in service, versatility in service

and finally totality in service.Their highly qualified manpower, cutting-edge technology,

comprehensive infrastructure and total customer-focus has secured

for them the position of an emerging financial services giant

enjoying the confidence and support of an enviable clientele across

diverse fields in the financial world.

Their values and vision of attaining total competence in their

servicing has served as the building block for creating a great

financial enterprise, which stands solid on their fortresses offinancial strength - their various companies. With the experience of

years of holistic financial servicing behind them and years of

complete expertise in the industry to look forward to, they have

now emerged as a premier integrated financial services provider.

And today, they can look with pride at the fruits of their mastery

and experience comprehensive financial services that are

competently segregated to service and manage a diverse range of

customer requirements.

Business Focus:-

The focus of the business is the Customer Customer service, Customer education, Customersupport, Customer relations and last but not the least

Customer acquisition. Trade execution transparency,timely settlements, risk monitoring and superiorservice shall have topmost priority, in the bestinterests of all concerned.

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BOARD OF DIRECTORS

NIRMAL BANG GROUP

NAME POSITION

Mr. Dilip M. Bang Director

Mr. Kishore M. Bang Director

Mr.Rakesh Bhandari Chartered Accountant

Mr. Deepak Agarwal Chartered Accountant

Mr.Suvinay Sharma Chartered Accountant

Mr.Naresh Samdani Chartered Accountant

Mr. Deepak Patel Chartered Accountant

Mr. Sunil Jain Chartered Accountant

Mr.Anup Agarwal Chartered Accountant

Mr.Brijmohan Bohra Chartered Accountant

Miss. Monika Bafna Chartered Accountant

Mr.Brijmohan Bohra Chartered Accountant

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Principal Activities Of

NIRMAL BANG GROUP

NIRMAL BANG Securities Private Limited

Member: National Stock Exchange of India Limited

Member: Bombay Stock Exchange Limited

Participant: National Securities Depository Limited

Participant: Central Depository Service (India) Limited

NIRMAL BANG Commodities Private Limited

Member - Multi Commodity Exchange of India Limited

Member - National Commodities and Derivatives Exchange Ltd.

BANG Equity Broking Private Limited

Member - Bombay Stock Exchange Ltd

Nadi Finance & Investment Private Limited

RBI registered Non Banking Finance Company

Publications of NIRMAL BANG

NIRMAL BANG- Beyond Market

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CHAPTER- 1

INTRODUCTION

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1.1 INTRODUCTION

Investing, like marriage, isn't something that should be entered into lightly.

Investing in equities gives high returns but they correspondingly have higher

risk also. Before we invest in a company, there are more than a few things

we need to know about it.

Securities Analysis

An analysis of securities and the organization and operation of their markets.

The determination of the risk reward structure of equity and debt securitiesand their valuation. Special emphasis on common stocks. Other topics

include options, mutual fluids and technical analysis.

Technical analysis is a method of predicting price movements and future

market trends by studying charts of past market action which take into

account price of instruments, volume of trading and, where applicable, open

interest in the instruments.

Fundamental analysis is a method of forecasting the future price movements

of a financial instrument based on economic, political, environmental andother relevant factors and statistics that will affect the basic supply and

demand of whatever underlies the financial instrument.

Main differences between the two types of analysis:

Fundamental analysis Technical analysis

Focuses on what ought to happen in a

market

Focuses on what actually happens in a

market

Factors involved in price analysis:

1. Supply and demand2.Seasonal cycles

3.Weather

4. Government policy

Charts are based on market action

involving:1.Price

2.Volume

3. Open interest (futures only)

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1.2 RATIONALE FOR THE STUDY

In an industry plagued with skepticism and a stock market increasingly

difficult to predict and contend with, if one looks hard enough there may still

be a genuine aid for the Day Trader and Short Term Investor.

The price of a security represents a consensus. It is the price at which one

person agrees to buy and another agrees to sell. The price at which an

investor is willing to buy or sell depends primarily on his expectations. If he

expects the security's price to rise, he will buy it; if the investor expects the

price to fall, he will sell it. These simple statements are the cause of a majorchallenge in forecasting security prices, because they refer to human

expectations. As we all know firsthand, humans expectations are neither

easily quantifiable nor predictable.

If prices are based on investor expectations, then knowing what a security

should sell for (i.e., fundamental analysis) becomes less important than

knowing what other investors expect it to sell for. That's not to say that

knowing what a security should sell for isn't important--it is. But there is

usually a fairly strong consensus of a stock's future earnings that the average

investor cannot disprove

Fundamental analysis and technical analysis can co-exist in peace and

complement each other. Since all the investors in the stock market want to

make the maximum profits possible, they just cannot afford to ignore either

fundamental or technical analysis.

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1.3 OBJECTIVES OF THE STUDY

Primary Objective:

To do equity analysis of chosen securities.

Sub-Objectives:

a) To justify the current investment in the chosen securities.

b) To understand the movement and performance of stocks.

c) To recommend increase/decrease of investment in a particular security.

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1.4 RESEARCH METHODOLOGY & DESIGN

TYPE OF STUDY

The research has been based on secondary data analysis. The study has beenexploratory as it aims at examining the secondary data for analyzing the

previous researches that have been done in the area of technical and

fundamental analysis of stocks. The knowledge thus gained from this

preliminary study forms the basis for the further detailed Descriptive

research. In the exploratory study, the various technical indicators that are

important for analyzing stock were actually identified and important ones

short listed.

SAMPLE DESIGNThe sample of the stocks for the purpose of collecting secondary data has

been selected on the basis of Random Sampling. The stocks are chosen in an

unbiased manner and each stock is chosen independent of the other stocks

chosen. The stocks are chosen from the Infrastructer Sector.

SAMPLE SIZEThe sample size for the number of stocks is taken as 3 for technical analysis

and fundamental analysis of stocks as fundamental analysis is veryexhaustive and requires detailed study.

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CHAPTER- 2

TECHNICAL ANALYSISA CONCEPTUAL OVERVIEW

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TECHNICAL ANALYSIS

Technical analysis can be conditionally divided into some main parts such

as:

Types of charts

Graphical methods Analytical methods

Technical analysis is concerned with predicting future price trends from

historical price and volume data. The underlying axiom of technical analysis

is that all fundamentals (including expectations) are factored into the market

and are reflected in exchange rates.

A technical analysis is based on three axioms:

Movement of the market considers everything

Movement of prices is purposeful

History repeats itself

SUPPORT AND RESISTANCE

Support is a level at which bulls (i.e., buyers) take control over the prices

and prevent them from falling lower.

Resistance, on the other hand, is the point at which sellers (bears) take

control of prices and prevent them from rising higher. The price at which a

trade takes place is the price at which a bull and bear agree to do business. It

represents the consensus of their expectations.

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Support levels indicate the price where the most of investors believe that

prices will move higher. Resistance levels indicate the price at which the

most of investors feel prices will move lower.

Role Reversal

When a resistance level is successfully broken through, that level becomes asupport level. Similarly, when a support level is successfully broken

through, that level becomes a resistance level.

DOW THEORY TRENDS:

The ideas of Charles Dow, the first editor of the Wall Street Journal, formthe basis of technical analysis. The Dow theory is a method of interpreting

and signaling changes in the stock market direction based on the monitoring

of the Dow Jones Industrial and Transportation Averages. Dow created the

Industrial Average, of top blue chip stocks, and a second average of top

railroad stocks (now the Transport Average). He believed that the behavior

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of the averages reflected the hopes and fears of the entire market. The

behavior patterns that he observed apply to markets throughout the world.

Three Movements

Markets fluctuate in more than one time frame at the same time:

Nothing is more certain than that the market has three well defined

movements which fit into each other.

The first is the daily variation due to local causes and the balance of

buying and selling at that particular time.

The secondary movement covers a period ranging from ten days to

sixty days, averaging probably between thirty and forty days.

The third move is the great swing covering from four to six years.

Bull markets are broad upward movements of the market that may last

several years, interrupted by secondary reactions. Bear markets are

long declines interrupted by secondary rallies. These movements are

referred to as the primary trend.

Secondary movements normally retrace from one third to two thirds

of the primary trend since the previous secondary movement.

Daily fluctuations are important for short-term trading, but are

unimportant in analysis of broad market movements.

Various cycles have subsequently been identified within these broad

categories.

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Primary Movements have Three Phases

The general conditions in the market:

Bull markets

Bull markets commence with reviving confidence as business

conditions improve.

Prices rise as the market responds to improved earnings

Rampant speculation dominates the market and price advances are

based on hopes and expectations rather than actual results.

Bear markets

Bear markets start with abandonment of the hopes and expectations

that sustained inflated prices.

Prices decline in response to disappointing earnings.

Distress selling follows as speculators attempt to close out their

positions and securities are sold without regard to their true value.

Trends

Bull Trends

A bull trend is identified by a series of rallies where each rally exceeds the

highest point of the previous rally. The decline, between rallies, ends above

the lowest point of the previous decline.

Successive higher highs and higher lows.

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The start of an up trend is signaled when price makes a higher low (trough),

followed by a rally above the previous high (peak):

Start = higher Low + break above previous High.

The end is signaled by a lower high (peak), followed by a decline below the

previous low (trough):

End = lower High + break below previous Low.

A bear trend starts at the end of a bull trend: when a rally ends with a lower

peak and then retreats below the previous low. The end of a bear trend is

identical to the start of a bull trend.

MOVING AVERAGES

Moving averages are one of the oldest and most popular technical analysis

tools. A moving average is the average price of a financial instrument over a

given time.

The moving average represents the consensus of investors expectations over

the indicated period of time.

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The classic interpretation of a moving average is to use it in observing

changes in prices. Investors typically buy when the price of an instrument

rises above its moving average and sell when it falls below its moving

average.

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CHAPTER- 3

FUNDAMENTAL ANALYSIS

A CONCEPTUAL OVERVIEW

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Fundamental analysis refers to the study of the core underlying elements

that influence the economy of a particular entity. It is a method of study that

attempts to predict price action and market trends by analyzing economic

indicators, government policy and societal factors (to name just a few

elements) within a business cycle framework.

I. ECONOMIC ANALYSIS:

POLITICO-ECONOMIC ANALYSIS:

No industry or company can exist in isolation. It may have splendid

managers and a tremendous product. However, its sales and its costs are

affected by factors, some of which are beyond its control - the world

economy, price inflation, taxes and a host of others. It is important,

therefore, to have an appreciation of the politico-economic factors that affect

an industry and a company.

II. INDUSTRY ANALYSIS

The importance of industry analysis is now dawning on the Indian investor

as never before.

1. BARRIER TO ENTRY

New entrants increase the capacity in an industry and the inflow of funds.

The question that arises is how easy is it to enter an industry?

There are some barriers to entry:

a) Economies of scale

b) Product differentiation

c) Capital requirement

d) Government policy

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2. THE THREAT OF SUBSTITUTION

New inventions are always taking place and new and better products replace

existing ones. An industry that can be replaced by substitutes or is threatened

by substitutes is normally an industry one must be careful of investing in. An

industry where this occurs constantly is the packaging industry -bottles

replaced by cans, cans replaced by plastic bottles, and the like. To ward off

the threat of substitution, companies often have to spend large sums of

money in advertising and promotion.

3. BARGAINING POWER OF THE BUYERSIn an industry where buyers have control, i.e. in a buyer's market, buyers are

constantly forcing prices down, demanding better services or higher quality

and this often erodes profitability.

4. BARGAINING POWER FOR THE SUPPLIERS

An industry unduly controlled by its suppliers is also under threat.

5. RIVALRY AMONG COMPETITORS

Rivalry among competitors can cause an industry great harm. This occurs

mainly by price cuts, heavy advertising, additional high cost services or

offers, and the like.

III. COMPANY ANALYSIS:

At the final stage of fundamental analysis, the investor analyzes the

company. This analysis has two thrusts:

How has the company performed vis--vis other similar companies and

How has the company performed in comparison to earlier years

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It is imperative that one completes the politico economic analysis and the

industry analysis before a company is analyzed because the company's

performance at a period of time is to an extent a reflection of the economy,

the political situation and the industry. What does one look at when

analyzing a company?

The different issues regarding a company that should be examined are:

The Management

The Company

The Annual Report, Ratios

THE MANAGEMENT:

The single most important factor one should consider when investing in a

company and one often never considered is its management. In India

management can be broadly divided in two types:

Family Management

Professional Management

THE COMPANY:

An aspect not necessarily examined during an analysis of fundamentals is

the company. A company may have made losses consecutively for two years

or more and one may not wish to touch its shares - yet it may be a good

company and worth purchasing into. There are several factors one should

look at.

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1. How a company is perceived by its competitors?

One of the key factors to ascertain is how a company is perceived by its

competitors. It is held in high regard. Its management may be known for its

maturity, vision, competence and aggressiveness. The investor must

ascertain the reason and then determine whether

the reason will continue into the foreseeable future.

2. Whether the company is the market leader in its products or in its

segment

Another aspect that should be ascertained is whether the company is the

market leader in its products or in its segment. When you invest in market

leaders, the risk is less. The

shares of market leaders do not fall as quickly as those of other companies.

There is a magic to their name that would make individuals prefer to buy

their products as opposed to others.

3. Company Policies

The policy a company follows is also important. What is their plan for

growth? What is its vision? Every company has a life. If it is allowed to live

a normal life it will grow upto a point and then begin to level out and

eventually die. It is at the point of leveling out that it must be given new life.

This can give it renewed vigour and a new lease of life.

THE ANNUAL REPORT:

The primary and most important source of information about a company is

its Annual Report. By law, this is prepared every year and distributed to the

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shareholders. Annual Reports are usually very well presented. A tremendous

amount of data is given about the performance of a company over a period

of time.

The Annual Report is broken down into the following specific parts:

A) The Director's Report,

B) The Auditor's Report,

C) The Financial Statements, and

D) The Schedules and Notes to the Accounts.

A. The Directors Report

The Directors Report is a report submitted by the directors of a company to

its shareholders, advising them of the performance of the company under

their stewardship.

1. It enunciates the opinion of the directors on the state of the economy and

the political situation vis--vis the company.

2. Explains the performance and the financial results of the company in the

period under review. This is an extremely important part. The results and

operations of the various separate divisions are usually detailed and

investors can determine the reasons for their good or bad performance.

3. The Directors Report details the company's plans for modernization,

expansion and diversification. Without these, a company will remain static

and eventually decline.

4. Discusses the profit earned in the period under review and the dividend.

Recommended by the directors. This paragraph should normally be read

with some skepticism, as the directors will always argue that the

performance was satisfactory. If adverse economic conditions are usually at

fault.

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5. Elaborates on the directors' views of the company's prospects in the

future.

6. Discusses plans for new acquisition and investments. An investor must

intelligently evaluate the issues raised in a Directors Report. Industry

conditions and the management's knowledge of the business must be

considered.

B. The Auditor's Report

The auditor represents the shareholders and it is his duty to report to the

shareholders and the general public on the stewardship of the company by its

directors. Auditors are required to report whether the financial statements

presented do, in fact, present a true and fair view of the state of the company.

Investors must remember that the auditors are their representatives and that

they are required by law to point out if the financial statements are not true

and fair..

C. Financial Statements

The published financial statements of a company in an Annual Report

consist of its Balance Sheet as at the end of the accounting period detailing

the financing condition of the company at that date, and the Profit and Loss

Account or Income Statement summarizing the activities of the company for

the accounting period.

BALANCE SHEET

The Balance Sheet details the financial position of a company on a particular

date; of the company's assets (that which the company owns), and liabilities

(that which the company owes), grouped logically under specific heads. It

must however, be noted that the Balance Sheet details the financial position

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on a particular day and that the position can be materially different on the

next day or the day after.

Sources of funds

Shareholders Funds

Share Capital

(i) Private Placement

(ii) Public Issue

(iii) Rights issues

RESERVES

i) Capital Reserves

ii) Revenue Reserves

LOAN FUNDS

i) Secured loans:

ii) Unsecured loans

Fixed Assets

INVESTMENTS

STOCK OR INVENTORIES

i) Raw materials

ii) Work in progress

iii) Finished goods

CASH AND BANK BALANCES

LOANS AND ADVANCES

PROFIT AND LOSS ACCOUNT

The Profit and Loss account summarizes the activities of a company during

an accounting period which may be a month, a quarter, six months, a year or

longer, and the result achieved by the company. It details the income earned

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by the company, its cost and the resulting profit or loss. It is, in effect, the

performance appraisal not only of the company but also of its management-

its competence, foresight and ability to lead.

RATIOS:

Ratios express mathematically the relationship between performance figures

and/or assets/liabilities in a form that can be easily understood and

interpreted.

No single ratio tells the complete story

Ratios can be broken down into four broad categories:

(A) Profit and Loss Ratios

These show the relationship between two items or groups of items in a profit

and loss account or income statement. The more common of these ratios are:

(B) Balance Sheet Ratios

These deal with the relationship in the balance sheet such as :1. Current assets to current liabilities.

2. Liabilities to net worth.

(C) Balance Sheet and Profit and Loss Account Ratios.

These relate an item on the balance sheet to another in the profit and loss

account such as:

1. Earnings to shareholder's funds.

2. Net income to assets employed.

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(D) Financial Statements and Market Ratios

These are normally known as market ratios and are arrived at by relative

financial figures to market prices:

1. Market value to earnings and

2. Book value to market value.

(a) Market value

(b) Earnings

(c) Profitability

The major ratios that are considered:

(i) Market value

(ii) Price- earnings ratio

(iii) Market-to-book ratio

(iv) Earnings

(v) Earning per share

(vi) Dividend per share

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CHAPTER- 4

OverviewINFRASRTUCTURE SECTOR

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ECONOMIC OVERVIEW

Indian Economy is among one of the fastest growing economy in the

World. It has registered a robust growth rate in past few years. But

weakening of U.S. Economy has an impact on Indian Economy too.

Indian economy has registered a GDP growth rate of 7.9 % in 2008-09 but it

slipped down to 7.5 % in the year 2009-10 which points out the negative

growth prospects for the industrial sector and the return expected from

investment in shares

Action taken to fight against the slowdown of the Economy,

Government of India took many fiscal as well as monetary actions.

Clubbed with fiscal & monetary actions, decreasing commodity prices,

decreasing crude prices and lowering interest rate, we expect that Indian

Economy could again register a decent growth rate in the year 2010-11.

In a globally uncertain economic environment, MR. PRANAB MUKHERJEE

has sought to address the immediate objective of economic growth by

committing significant investments to infrastructure and putting more

money in the consumers' hands. The target is to move to a 9% growth at

the earliest.

Finance Minister faced challenges of managing deficit and supportinggrowth in current budget. We feel he was able to balance both these aspects

by increasing excise duty by 2%, resulting in reducing fiscal deficit from

6.9% to 5.5%, and increasing planned expenditure by 18.4% as compared to

14.9% in the previous budget. The increase in excise duty by 2% will have

negative impact on sectors like cement, metal & FMCG as they may not be

able to pass on the cost. However, the impact will be neutral for sectors like

Pharma & Auto, which can pass the increased cost. In fact various auto

companies have already announced increase in prices. Aggressive increase

in slab for Personal Income tax will improve the purchasing power of

individuals and will help bring black money back into the system. Increasedpurchasing power will act positive for sectors like Auto, Retail,

Entertainment, Real Estate & FMCG companies.

The banking license to more players will act positive for strong

NBFCs like Reliance Capital, Bajaj Auto Finance, Mahindra & Mahindra

Finance, L&T Finance, IFCI etc. But the approval and implementation of

this policy will be major issue as RBI does not favor this policy. FM has

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increased the base for collection of Service Tax by bringing services like Air

Ticket, Rail Freight, Port Services etc, into the service tax net. The diesel

and petrol prices are increased by Rs.2.58 and Rs.2.67 respectively, which

will have direct impact on transportation of materials and will have negative

impact on overall economy. Overall FM has balanced the budget well and

will find acceptance from the equity market.

CURRENT SCENARIO

The Government has, till date, provided three fiscal stimulus packages to

restrict the impact of the global downturn on India. The total amount of

stimulus, according to the FM, has been to the tune of Rs.1.86trn or about

3.5% of FY10 GDP. Of these, significant amounts have been dedicated for

overall infrastructure development.

With private investment yet to pick up to the desired extent, the short term

requirement is for the public investments to be sustained and increased. The

FM has continued with the focus on investments and the plan expenditure has

been increased by 15% for the current fiscal.

IIFCL (India Infrastructure Finance Company Ltd) will now refinance 60%

of the loans provided by commercial banks for PPP projects in critical

sectors over the next fifteen to eighteen months. With this, IIFCL and banks

will now be in a position to support projects involving total investment of

Rs.1trn. Allocation for the National Highway Development Programme

(NHDP) has been increased by 23% over FY10BE.The allocation for railways has been increased from Rs.108bn in

interim budget for FY10 to Rs.158bn.

Allocation under Jawaharlal Nehru National Urban Renewal Mission

(JNNURM) has been increased by 87% to Rs.129bn as compared to

FY10BE.

Allocation for housing and provision of basic amenities to urban poor

has also been enhanced to Rs.40bn.

Allocations under Accelerated Power Development and Reform

Programme (APDRP) have been increased by 160% to Rs.20bn as compared

to FY10BE.

A blueprint will be developed for long distance gas pipelines leading to a

National Gas Grid to facilitate transportation of gas across the length and

breadth of the country.

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INFRASTRUCTURE IN INDIA

Infrastructure in India include transportation, agriculture, water management,

telecommunications, industrial and commercial development, power,

petroleum and natural gas, housing and other segments such as mining,

disaster management services, technology-related infrastructure.

Important sectors of Infrastructure in India:

Within the Infrastructure of India, the transportation sector is the most

important, including the aviation, ports, roads, rail system and logistics. The

agriculture sector comprises infrastructure-related storage facilities,

construction relating to agro-processing projects and reservation and storage

of perishable goods. Among others essential sectors, real-estate development,

including industrial parks, special economic zones, tourism and entertainmentcenters, educational institutions and hospitals and solid waste management

systems, also play significant role in Indian economy.

Finance for Infrastructure in India:

The rules for government-owned infrastructure companies for raising funds

through initial share offerings are made flexible by the Securities and

Exchange Board of India, which naturally will increase the flow of

investment in the Infrastructure of India. To bridge the wide gap between thepotential demand for infrastructure for high growth and the available supply,

there is urgent need for a close partnership between the public and private

sectors, with a vital role reserved for foreign capital. In India

infrastructure sector itself is becoming an attractive investment area for FDIs.

To encourage foreign funds flow into the Infrastructure in India, the Indian

Finance Ministry has allowed Foreign Institutional Investors(FIIs) also to

invest in unlisted companies. FIIs now can invest 100 per cent of their funds

in the Infrastructure in India. In order to make the core sector more attractive

for FDI, the Cabinet Committee on Foreign Investment (CCFI) has modifiedthe 49 percent cap on foreign equity in the infrastructure sector to make fund

mobilization easier. This major policy decision which will indirectly raise the

foreign equity investment in infrastructure sector to well over 51 per cent.

Besides, even if allocation in the Infrastructure in India is raised with a

greater inflow of FDI and a large participation of private sector, the

immediate problem will still remain, since, infrastructure is subjected to long

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gestation period. Consequently, the inadequacy of Infrastructure inIndia will

continue for quite some time, unless technology upgradation can be done in

the infrastructure production, including construction activities, for reducing

the gestation lags and simultaneously improving the quality of products. With

this infrastructure limitation any indiscriminate growth may

lead the economy of the country to a situation of over-heating and a further

rise in inflation.

Under the Infrastructure in India the most essential field in which there

should be development is in the urban infrastructure. Except for a few large

projects in a handful of cities, paucity of urban infrastructure projects is a

standing problem. Although city mass

transport systems and airports have found place in developmental plans,

essential services such as roads, drinking water, sewerage management,

drainage, and primary health are still greatly under developed.

However, with the economy growing at more than at the rate of 8 per cent,

the government is aiming at an economic growth rate of 8 per cent during the

Eleventh Plan (200812), for which the government is taking necessary steps

to develop the Infrastructure in India.

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Budget Impact on Sector: Infrastructure /ConstructionBudget proposal Sector Impact Company Impacted

Budget proposal Sector Impact Company Impacted

Increased allocation of Rs.1,73,552crs forinfrastructure development in the

country,which accounts for over 46 per centof the totalPlan allocations.

Positive as theinfrastructurecompanies will have

moreopportunities

Positive for most infra companiesincluding HCC, Patel Eng, NCC,Simplex, L&T

Raise in allocation of road transportby over 13per cent from Rs.17,520 crs toRs.19,894 crs

Positive forcompaniesexecutingroad projects

Positive for IRB Infra, L&T, IVRCL,NCC, GMR Infra, Patel Eng

Deduction of an additional amountof Rs.20,000for investment in long term infrastructure bondsover and above the existing limit of

Rs.1 lakh ontax savings.

Positive as this willencouragemore investment forinfracompanies

Positive for L&T, GMR Infra, GVKPower, IRB Infra

Thrust on increasing disbursementby IIFCL

Positive as financingfor infracompanies will beeasier

Positive for companies such asL&T, Gammon India, GMR Infra,IVRCL, IRB Infra

2 % increase in excise duty oncement on steel

This was in line withexpectations

Neutral for all major infracompanies

Monorail Projects for urbantransport to achieveproject import status at aconcessional basicduty of 5%

Positive as duty costwill comedown

Positive for L&T

Allocation for urban developmentincreased bymore than 75 per cent fromRs.3,060 crs toRs.5,400 crs in 2010 11.

Positive for Infracompaniespresent in urbandevelopment

Positive for NCC, L&T, Simplex,Unity Infra, Patel Eng, HCC

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CHAPTER- 5

INFRASRTUCTURE SECTOR

ANALYSIS

1

2

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3

.

Brief Company Profile : DLF BUILDING INDIA

Going back to over six decades, the birth and history of theDLF Limited came to known. Late Chaudhury RaghvendraSingh founded it as Raisina Cold Storage and Ice CompanyPrivate Limited and Delhi Land and Finance Private Limitedin 1946 and later on K P Singh promoted the DLF Limited.

The company was incorporated in the year 1963 as

American Universal Electric (India) Limited. The DLF group isa leading real estate developer in India. The group has over224 million sq. ft. of existing development and 748 millionsq. ft. of planned projects. DLF is the company, whichcommitted to quality, trust and customer sensitivity, anddeliver on promises wit...

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DLF developed some of the first residential colonies in Delhisuch as Krishna Nagar in East Delhi, which was completed in1949. Since then we have been responsible for thedevelopment of many of Delhis other well known urbancolonies, including South Extension, Greater Kailash, KailashColony and Hauz Khas.

Following the passage of the Delhi Development Act in 1957,the state assumed control of real estate developmentactivities in Delhi, which resulted in restrictions on privatereal estate colony development. We therefore commencedacquiring land at relatively low cost outside the areacontrolled by the Delhi Development Authority, particularlyin the district of Gurgaon in the adjacent state of Haryana.

This led to our first landmark real estate developmentproject DLF Qutab Enclave, which has now evolved into DLFCity. DLF City is spread over 3,000 acres in Gurgaon and isan integrated township, which includes residential,commercial and retail properties in a modern cityinfrastructure with schools, hospitals, hotels and shoppingmalls. It also boasts of the prestigious DLF Golf and CountryClub with night golfing facilities

Incorporation Year 1963

Chairman K P Singh

Managing Director T C Goyal

Company Secretary Subhash C Setia

Auditor Walker Chandiok & Co

Face Value 2

Market Lot 1

Telephone 91-124-4334200

Fax 91-124-2355581

Registered Office Shopping Mall 3rd Floor Arjun Marg Phase-IDLF City Gurgaon Haryana 122002

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RESEARCH REPORT

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P/E RATIO

Attribute Value Date

PE ratio 43.16 24/07/09

EPS (Rs) 9.12 Mar, 09

Sales (Rs crore) 55.53 Mar, 09

Face Value (Rs) 2

Net profit margin (%) 42.49 Mar, 08

Last dividend (%) 100 04/06/08

Return on average equity 22.84 Mar, 08

01-APR-2008 to 31-MAR-2009 (Annual)

Description Amount(Rs. inlakhs)

Net Sales/Income from Operations 5553.00

Other Operating Income -

Increase/Decrease in Stock in trade and work in progress -

Consumption of Raw Materials -9276.00

Purchase of traded goods -

Employees Cost 3461.00

Depreciation 2614.00

Other Expenditure 6115.00

Total Expenditure 2914.00

Profit from Operations before Other Income, Interest &Exceptional Items

2639.00

Other Income 24548.00

Profit before Interest & Exceptional Items 27187.00

Interest 22574.00

Profit after Interest but before Exceptional Items 4613.00

Exceptional items -

Profit(+)/Loss(-) from Ordinary Activities before tax 4613.00

Tax Expense 1627.00

Net Profit(+)/Loss(-) from Ordinary Activities after tax 2986.00

Extraordinary Items -

Net Profit (+) / Loss (-) for the period 2986.00

Dividend (%) -

Face Value (in Rs.) 2.00

Paid-up Equity Share Capital 33944.00

Reserves excluding Revaluation Reserves -

Basic EPS before Extraordinary items (in Rs.) .18

Diluted EPS before Extraordinary items (in Rs.) .18

Basic EPS after Extraordinary items (in Rs.) .18

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Diluted EPS after Extraordinary items (in Rs.) .18

Public Shareholding (Number of Shares) 194410993.00

Public Shareholding (%) 11.45

Promoter & Promoter group Number of Shares Pledged /

Encumbered

0.00

Promoter & Promoter group Shares Pledged / Encumbered

(as a % of total shareholding of Promoter and Promoter

Group)

-

Promoter & Promoter group Shares Pledged / Encumbered

(as a % total share capital of the company)

-

Promoter & Promoter group Number of Shares Non-encumbered

1502803120.00

Promoter & Promoter group Shares Non-encumbered (as a %of total shareholding of Promoter and Promoter Group)

100.00

Promoter & Promoter group Shares Non-encumbered (as a %total share capital of the company)

88.55

Capital structure OF DLF

From

Year

To

Year

Class Of

Share

Authorize

d Capital

Issued

Capital

Paid Up

Shares (No)

Paid Up

Face

Value

Paid Up

Capital

2008 2009EquityShare

214.75 214.75 1704832680 2 214.75

2007 2008Equity

Share214.75 214.75 1704832680 2 214.75


214.75 214.75 1529421080 2 214.75


39.5 37.88 37767997 10 37.77


4.5 3.62 3508007 10 3.51


4.5 3.62 3508007 10 3.51

2002 2003Equity

Share

4.5 3.62 3508007 10 3.51


4.5 3.62 3508007 10 3.51

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Cash flow DLF

Mar ' 05 Mar '

06

Mar ' 07 Mar ' 08 Mar ' 09

Net Profit Before Tax 96.88 347.90 620.33 3117.92 1808.77

Net Cash From Operating Activities 550.64 -64.36 -2626.83 -1505.81 1365.86

Net Cash (used in)/fromInvesting Activities

-579.89 -2146.23 -628.34 -6482.00 -1151.17

Net Cash (used in)/from Financing Activities 23.94 2251.52 3233.37 8945.90 -437.54

Net (decrease)/increase In Cash and CashEquivalents

-5.31 40.93 -21.80 958.09 -222.85

Opening Cash & Cash Equivalents 10.43 5.11 46.05 24.16 982.25

Net Profit Before Tax 96.88 347.90 620.33 3117.92 1808.77

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Brief Company Profile : J P ASSOCIATE

Registered

Office

Sector 128,Noida - 201304,UP.Email:[email protected]: www.jilindia.com

Management

Details

Chairperson and CEO: M. Gaur

Vice Chairperson: S. K. JainExecutive Vice Chairperson: S. K. SharmaDirectors: G. K. Arora, J. Gaur, R. N. Bhardwaj, S. C.Bhargava, B. K. Goswami, E. R. C. Shekar, B. K.Taparia, S. C. Gupta, M. S. Srivastava, P. Gaur, S.Gaur, S. D. Nailwal, R. K. Singh, R. Singh, A. K.Sahoo, B. Samal, J. Subbaiah

Business

Operation

Cement, engineering and construction

Background Jaiprakash Associates Ltd (JAL) is a part of the Jaypee

Group, which was founded in 1958 by Jaiprakash Gaur.In 2000, the group merged the Jaypee Rewa CementPlant and Jaypee Bela Cement Plant to form JaypeeCement Ltd. In 2003, JAL was formed by the merger ofJaiprakash Industries Ltd and Jaypee Cement Ltd.

Business Profile JAL has five divisions - cement, engineering &construction, energy, real estate & expressways, andhospitality. The company manufactures OPC & PPCcement and markets its product under two brands;Buland and Buniyad. In FY07, revenue from cement

stood at nearly 50% of the total, growing by almost48% y-o-y. Total cement production for the year stoodat 6.6 MMT. During FY07, the engineering andconstruction division - which focuses on developingriver valley and hydro-electric projects - contributedaround 44% to revenues and completed fivehydropower projects contributing over 4,000 MWhydropower to the National Grid. The remaining shareof revenue came from asbestos sheets, hospitality,

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power, and other segments.In 2007, the company entered into a JV with SAIL to setup a 2.2 MMTPA capacity slag-based cement plant.During 2007, the company applied for petroleumexploration license to foray into oil and gas exploration.In Mar 2007, the company entered into a production-

sharing contract with the GoI for the South Rewa oilblock, which it secured through a consortium. In Aug2007, the company entered into steel manufacture bytaking over the erstwhile Malvika Steel Ltd.

Company

Secretary

H. K. Vaid

Bankers Alhd Bank, AB, AEFB, Axis Bank, BoB, Bank of Bhutan, Bol,BoM, Canara, CBI, Corporation Bank, Export Import Bank ofIndia, HDFC, Indian Bank, Indian Overseas Bank, Industrial

Bank Limited, Industrial Bank Limited, Karur Vysya Bank,Karnataka Bank, Kotak Mahindra Bank, Oriental Bank ofCommerce, Punjab National Bank, Punjab & Sind Bank,Refidian Bank, Iraq, Royal Bank of Scotland, StandardChartered Bank, State Bank of India, State Bank ofHyderabad, State Bank of Indore, State Bank of Mysore,State Bank of Patiala, State Bank of Sikkim, State Bank of

Travancore, State Bank of Bikaner & Jaipur, Syndicate Bank,The Jammu & Kashmir Bank Limited, UCO Bank, Union Bankof India, United Bank of India, Yes Bank Limited

Auditors M. P. Singh & Associates

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RESEARCH REPORT

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P/E RATIO


PE ratio 31.88 27/07/09

EPS (Rs) 7.54 Mar, 09

Sales (Rs crore) 2,116.86 Jun, 09

Face Value (Rs) 2


Last dividend (%) 20 08/06/09


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Other Operating Income 19069.00

Increase/Decrease in Stock in trade and work in progress -10178.00

Consumption of Raw Materials 201831.00Purchase of traded goods -


Depreciation 33260.00



Profit from Operations before Other Income, Interest &Exceptional Items

164589.00

Other Income 599.00


Interest 70617.00


Exceptional items -Profit(+)/Loss(-) from Ordinary Activities before tax 94571.00

Tax Expense 43314.00




Minority Interest 9232.00

Shares of Associates -

Other Related Items -

Consolidated Net Profit (+) / Loss (-) for the period 42025.00

Dividend (%) -


Paid-up Equity Share Capital 28036.00Reserves excluding Revaluation Reserves 584984.00

Basic EPS before Extraordinary items (in Rs.) 3.03

Diluted EPS before Extraordinary items (in Rs.) 2.82

Basic EPS after Extraordinary items (in Rs.) 3.03

Diluted EPS after Extraordinary items (in Rs.) 2.82



Promoter & Promoter group Number of Shares Pledged /Encumbered

24420000.00

Promoter & Promoter group Shares Pledged / Encumbered (asa % of total shareholding of Promoter and Promoter Group)

3.35

Promoter & Promoter group Shares Pledged / Encumbered (asa % total share capital of the company)

1.74

Promoter & Promoter group Number of Shares Non-encumbered

703678767.00

Promoter & Promoter group Shares Non-encumbered (as a %of total shareholding of Promoter and Promoter Group)

96.65


50.20

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Capital structure OF JP ASSOCIATES

From

Year

To

Year

Class of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (No)

Paid Up

Face

Value

Paid Up

Capital

2007 2008 EquityShare

1,030.00 234.30 1171522417 2 234.30

2006 2007 EquityShare

1,030.00 219.24 219239654 10 219.24

2005 2006 Equity

Share

1,030.00 215.06 215057749 10 215.06

2004 2005 Equity

Share

980.00 176.22 176216981 10 176.22

2003 2004 Equity

Share

980.00 176.22 176216981 10 176.22

2002 2003 Equity

Share

980.00 176.22 176216981 10 176.22

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Cash flow JP ASSOCIATES

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Profit before tax 843.35 619.91 764.56 328.75 267.48

Net cashflow-operating activity 1,007.69 808.05 295.70 179.21 509.09

Net cash used in investing activity -4,225.27 -2,108.39 -238.12 -614.15 -565.66

Net cash used in fin. activity 3,603.21 1,060.35 879.75 939.34 55.02

Net inc/dec in cash and equivalent 385.63 -239.99 937.33 504.40 -1.53

Cash and equivalent begin of year 1,429.81 1,669.80 732.47 222.83 224.36

Cash and equivalent end of year 1,815.44 1,429.81 1,669.80 727.23 222.83

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Brief Company Profile: GMR INFRASRUCTURE

Management

Details

Group Chairman: G.M.Rao(GMRVF,MAG,corporate R I

tiCt relations)Business Chairperson: Kiran kumar G.(Airport)

Srinivasbommidala(Highways & urban infra)

B.V.N.Rao(energy &agriculture)

G.B.S.Raju(corporate &intemational)

GMR Group established in June 1978.

GMR Industries listed in 1992 & GMR Infrastructure listed in 2006 in bothBSE* & NSE*

The Group was engaged in Banking, Insurance, Breweries & IT, which weredivested off.

GMR Group has shifted focus to Infrastructure & Agri. Business and

expanding rapidly

The GMR Group is one of the leading and fastest growing private sector

organisations of India with interests in Infrastructure and Agri-business.

Founded in 1978, the Group is well diversified and professionally managed.

The core businesses of the Group are in the sectors of Infrastructure

comprising of Airports, Energy, Highways and Urban Infrastructure in addition

to the manufacturing sector, spanning the Agri-business like sugar and Ferro

alloys. The Group is also actively engaged in the areas of Education, Health

and Community Services through its Foundation, reaffirming its grass root

presence as a change agent of society, in the field of Corporate SocialResponsibility. Dedicated divsions, the GMR Varalakshmi Foundation, manned

by committed professionals oversee and manage these projects across the

country. With its recent foray into the Airport sector, the Group has

established itself as a front runner and pioneer in the core infrastructure

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The Groups specific projects are detailedhere:

Energy: Thermal

Hydro

Gas

Coal Mine

development

Highways & Urban infra Highways

SEZ

Property

Construction

Raxa (Security)

Aviation

Airports: Delhi International Airport

HyderabadInternationalAirport

International Business Sabiha Gokcen

International Airport Stake in InterGen N.V.

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RESEARCH REPORT

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P/E RATIO




Other Operating Income -

Increase/Decrease in Stock in trade and work in progress -

Consumption of Raw Materials -

Purchase of traded goods -


Depreciation 11.00



Profit from Operations before Other Income, Interest &

Exceptional Items

12196.00

Other Income 582.00


Interest 2379.00


Exceptional items -

Profit(+)/Loss(-) from Ordinary Activities before tax 10399.00

Tax Expense 632.00




Dividend (%) -


Paid-up Equity Share Capital 36413.00

Reserves excluding Revaluation Reserves 533809.00

Basic EPS before Extraordinary items (in Rs.) .54

Diluted EPS before Extraordinary items (in Rs.) .54

Basic EPS after Extraordinary items (in Rs.) .54

Diluted EPS after Extraordinary items (in Rs.) .54



PE ratio 274.11 27/07/09

EPS (Rs) 0.54 Mar, 09

Sales (Rs crore) 25.59 Mar, 09

Face Value (Rs) 2



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Promoter & Promoter group Number of Shares Pledged /Encumbered

258657887.00

Promoter & Promoter group Shares Pledged / Encumbered (as a

% of total shareholding of Promoter and Promoter Group)

18.97

Promoter & Promoter group Shares Pledged / Encumbered (as a

% total share capital of the company)

14.21

Promoter & Promoter group Number of Shares Non-encumbered 1105185900.00Promoter & Promoter group Shares Non-encumbered (as a % of

total shareholding of Promoter and Promoter Group)

81.03


60.70

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Capital structure OF GMR

From

Year

To

Year

Class Of

Share

Authorized

Capital

Issued

Capital

Paid Up

Shares (No)

Paid

UpFace

Value

Paid Up

Capital

2007 2008 Equity

Share

750.00 364.13 1820658088 2 364.13

2006 2007 Equity

Share

400.00 331.08 331084000 10 331.08

2005 2006 Equity

Share

400.00 264.44 264436814 10 264.44

Cash flow GMRMar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Profit before tax 65.54 5.27 35.51 24.23

Net cash flow-operating activity -56.55 -7.29 0.08 77.58

Net cash used in investing activity -4,250.19 -822.87 -67.32 -12.53

Net cash used in fin. activity 4,095.78 1,146.99 -43.95 26.00

Net inc/dec in cash and equivalent -210.97 316.83 -111.19 91.04

Cash and equivalent begin of year 319.12 2.29 113.48 22.43

Cash and equivalent end of year 108.15 319.12 2.29 113.48

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Findings & Conclusion

Stock Target Price (Rs) Recommendation

DLF 345 BUY

JP associate - HOLD

GMR Infra - HOLD

Current scenario suggests, markets are on a bullish run, especially in case of Infrastructure

Industry. Analysis suggests that all the chosen stocks ie DLF, JP associate and GMR Infra are

going to perform well, with huge potential of earnings for equity holders.

Stock P/E ratio

DLF 43.16

JP associate 31.88GMR Infra 274.11

BIBLIOGRAPHY

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Websites Referred:

www.dlf.com

www.gmr.org

www.jaypee.com

www.reuters.com

www.bseindia.com

www.nseindia.com

www.nirmalbang.com

www.moneycontrol.com

http://finance.yahoo.com

www.indiaearnings.moneycontrol.com

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