“A STUDY ON EQUITY ANALYSIS OF SELECTED IT COMPANIES AT

KARVY STOCK BROKING , TIRUPATI”

A PROJECT REPORT
Submitted in the partial fulfillment of the

requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

G. KUSHAL
(Reg. No. 451998050)

Under the Guidance of

Mr.S.RAJA., M.B.A., (Ph.D)

ASSISTANT PROFESSOR

(2018-2020)
 CERTIFICATE

This is to certify that the project report entitled “A STUDY ON EQUITY

ANALYSIS OF SELECTED IT COMPANIES AT KARVY STOCK
BROKING, TIRUPATI” is a bonafide work done and submitted by Mr.
G.KUSHAL (Reg.no. 451998050) in partial fulfillment of the requirement for the
award of the degree of master of business administration by the accord business
school affiliated to S.V.UNIVERSITY, Tirupati during 2018-2020.

PRINCIPAL

PROJECT GUIDE

(Mr.S.RAJA, M.B.A.,(Ph.D))
 ACKNOWLEDGEMENT

An Endeavour over a long period can be successful only with the advice and support well-
wishers. I take this opportunity to express my gratitude and appreciation for all of them.

I am very thankful to the management and our principal Dr. K.NAGARAJU

for giving this opportunity to carry out the project work.

I express deep sense of gratitude to my internal guide Mr.S.RAJA M.B.A.,(Ph.D) and

project coordinator Mr.N.BALAJI, MBA., Ph.D, Associate professor, for giving me an
opportunity to do this final project, who guided me constantly and shared infinite time and
interest and helped me at all times to enable me to carry out my project with confidence.

I am extremely thankful to Mr.A. RAJA SEKHAR, BRANCH MANAGER,KARVY

STOCK BROKING,TIRUPATI for providing me an opportunity to undergo the project
internship at the esteemed organization.

Last but not the least my sincere thanks to the other faculty members of our college, my
parents, family members and friends for their continuous support, inspiration and encouragement
without which this project would not have been success.
 TABLE OF CONTENTS

CHAPTER
INDEX PAGE NO.
NO
1. INTRODUCTION 1-5
1.1INDUSTRY PROFILE 6-10
1.2COMPANY PROFILE 11-18
1.3REVIEW OF LITERATURE 19-22
2. RESEARCH METHODOLOGY
2.1 NEED FOR THE STUDY 23
2.2 SCOPE OF THE STUDY 24
2.3 OBJECTIVES OF THE STUDY 25
2.4 RESEARCH DESIGN 26
2.5 LIMITATIONS OF THE STUDY 27
3. DATA ANALYSIS AND INTERPRETATION 28-45
4. FINDINGS, SUGGESTIONS &CONCLUSION
4.1 FINDINGS 46
4.2 SUGGESTIONS 47
4.3 CONCLUSION 48
ANNEXURE
SYNOPSIS
BIBLIOGRAPHY

LIST OF TABLES

TABLE PAGE
TITLES
NO. NO.
3.1 Returns of HCL Technologies for the period of 2014-2019 30
Returns of Oracle finance service software for the period of 2014-
3.2 31
2019
3.3 Returns of Tech Mahindra for the period of 2014-2019 32
3.4 Returns of NIFTY 50 for the period of 2014-19 33
Comparision of the annual returns of 5 companies with NIFTY
3.5 35
for the period of 2014-19
3.6 Standard Deviation and Variance of HCL Technologies 36
Standard Deviation and Variance of Oracle finance service
3.7 37
software
3.8 Standard Deviation and Variance of Tech Mahindra 38
3.9 Standard deviation of all the selected companies 39
3.10 Variance of all the companies 40
3.11 Beta value of HCL Technologies 41
3.12 Beta value of Oracle finance service software 42
3.13 Beta value of Tech Mahindra 42
3.14 Ranking for beta calculation 43
3.15 Alpha value of all the selected companies 45

LIST OF GRAPHS

PAGE
S.NO. GRAPH
NO.
3.1 Returns of HCL Technologies for the period of 2014-2019 30
Returns of Oracle finance service software for the period of 2014-
3.2 31
2019
3.3 Returns of Tech Mahindra for the period of 2014-2019 32
3.4 Returns of NIFTY 50 for the period of 2014-19 33
Comparision of the annual returns of 3 companies with NIFTY for
3.5 35
the period of 2014-19
3.9 Standard deviation of all the selected companies 39
3.14 Comparision of Beta value of all the companies 43
 SYNOPSIS

A STUDY ON EQUITY ANALYSIS OF FIVE SELECTED AUTOMOBILE SECTOR

STOCKS AT INDIABULLS, HYDERABAD.

Internal Guide Presented By External Guide

Mr. N. Balaji, Shaik Rabbani Mr. S.Satish Kumar
Associate Professor, M.B.A. 3rd Semester, Branch Manager,
Accord Business School. Accord Business INDIABULLS, Hyderabad.
School.

INTRODUCTION

Most of the investors commonly make poor investment decision caused by mental biases and
emotions. All the investors make their investment with an avowed objective of increasing their
wealth. Among the various investment opportunities equity market is said to be one of the most
rewarding investment options even though it involves more risk. Since the risk is very high on
such investment, the investors need to make equity analysis that helps them to know about the
nature of those equity shares and those industries where they park their money. Therefore the
equity analysis will help the potential investors in taking a rational and informed investment
decision.

INDUSTRY PROFILE:

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai. Incorporated in 1992, the NSE has developed into a sophisticated, electronic
market, which ranked fourth in the world by equity trading volume in 2015. NSE was the first
exchange in the country to provide a modern, fully automated screen-based electronic trading
system which offered easy trading facility to the investors spread across the length and breadth of
the country. Vikram Limaye is Managing Director & Chief Executive Officer of NSE.

COMPANY PROFILE

TYPE Public company

Industry Financial Services,

Founded January 2000

Headquarters Gurgaon, India

Sameer Gehlaut
(Chairman & Founder)
Key people
Gagan Banga
(Vice-Chairman & MD)
Financial Services, Real
Estate, Pharmaceutical, Construction
Products
Equipment Leasing, LED Lights and
Facilities sector
Revenue RS.22,114 crore (2018)
Number of employees 16,000 (2018)
Indiabulls Housing FinanceLtd.

Divisions Indiabulls Ventures Ltd.

Indiabulls Real Estate Ltd.

Website www.Indiabulls.com

REVIEW OF LITERATURE:

Stock market is an important part of the economy of a country. Whenever a company

wants to raise funds for further expansion or setting up a new business venture, they have to take
either a loan from a financial organization or they have to issue shares through the stock market
is important from both the industry’s point of view as well as the investor’s point of view .

DEFINITION
According to Husband and Dockerary “Stock exchanges are privately organized markets
which are used to facilitate trading in securities”

RESEARCH METHODOLOGY:

NEED FOR THE STUDY:

Indian automobile industry is one of the most preferred sectors by the investors
since it is considered as a world’s largest and fastest growing sector. Many automakers have
started to invest in this sector. Among the equities listed on Indian stock exchange, the equity of
automobile industry is considered to be one of the most rewarding securities. Similar to its
reward it involves high-risk characteristics also. Therefore while making an investment in the
automobile sector, a clear equity analysis is needed. This research on equity analysis of
automobile industry in Indian stock market provides sufficient information for the potential
investors in taking a rational and informed investment decision.

OBECTIVES OF THE STUDY

 The objective of this project is to deeply analyze our Indian Automobile Industry for
investment purpose by monitoring their performance on the basis of historical data.
 To analyze the return and risk of the selected shares of automobile sector.
 To study the movement of equity share prices of 5 automobile companies i.e. Maruthi
Suzuki, Tata Motors, Mahindra & Mahindra, Hero Moto Corp and Ashok Leyland during
2014-2019.
 To provide necessary suggestions for the investors in the automobile sector for better
decision making based on the study.

SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The project is based
on tools like average returns, standard deviation, variance, alpha and beta. Further,
 The Study is based on information of last five years.(2014-19)
 The analysis is made by taking into consideration 5 automobile companies i.e. Maruthi
Suzuki, Tata Motors, Mahindra & Mahindra, Hero Moto Corp and Ashok Leyland. .

RESEARCH DESIGN

DATA COLLECTION:

This study is completely based on secondary data mainly collected from the website of
NSE (https://www.nseindia.com/). In addition to that, the data has also been collected from
published sources and also from websites, newspapers (Business Standard. Economic Times),
and Report by Management Scholars, Researchers etc.
 SELECTED SAMPLE COMPANIES:
 Maruthi Suzuki, Tata Motors,Mahindra & Mahindra, Hero Moto Corp and Ashok
Leyland.
 ANALYTICAL TOOLS FOR DATA ANALYSIS:
 Return, Standard deviation, Variance, Beta and Alpha.

LIMITATIONS OF THE STUDY:

 This study has been conducted purely to understand Equity analysis for investors.
 The study is limited to the automobile companies having equities.
  The analysis was completely based on the secondary data collected from the website of
NSE, published literature, annual reports, etc., and so the findings of the study entirely
depend on the accuracy of such data.
 The study is restricted to analysis of only 5 automobile companies in INDIA.
 There was a constraint with regard to time allocation for the research study i.e. for a
period of 45 days.

DATA ANALYSIS AND INTERPRETATION

STATISTICAL TOOLS

1. AVERAGE RETURNS, STANDARD DEVIATION , VARIANCE , BETA AND

ALPHA OF SELECTED AUTOMOBILE SECTOR STOCKS

AVERAGE STANDARD
COMPANY VARIANCE BETA ALPHA
RETURNS DEVIATION

TATA
MOTORS -2.84 38.03 1446.06 1.73 - 17.67

M&M -5.06 20.94 438.68 0.54 - 14.48

MARUTI
SUZUKI 3.62 17.03 289.86 -0.01 -3.13

HERO 35.01 42.00 1764.13 2.11 17.98

ASHOK
LEYLAND 56.45 93.71 8780.77 2.48 37.62

FINDINGS
 During the period of study, among all the selected companies, The Average Returns of
Ashok Leyland is high i.e. 56.45% whereas, it is low for M &M i.e., -5.06%.
  The Standard Deviation is high for Ashok Leyland i.e., 93.71% and low for Maruti
Suzuki i.e., 17.03% bearing a least risk.
 The Variance of Ashok Leyland is high i.e., 8780.77 involving a high risk and it is low
for Maruti Suzuki i.e., 289.86.
 Ashok Leyland has a beta value of more than 1 i.e., 2.48. It shows that the market risk of
Ashok Leyland is very high and Maruti Suzuki is having a lower beta value i.e., low risk
(-0.01) when compared to remaining companies
 The Alpha Value is high for Ashok Leyland with 37.62. Therefore, it has a potential of
gaining a high return.

SUGGESTIONS

 Risk takers can choose ASHOK LEYLAND for investing, as it has high returns (56.45) and
high risk (93.71) when compared to other selected companies.
 Risk averters can go with the option of investing in Maruti Suzuki, because it is providing a
maximum return (3.62) at a minimum risk of (17.03)
 HERO MOTO CORP is holding a high risk (42) and minimum returns (35.01). It shows
that it is one of the best options for the risk takers.
 Through the calculation of alpha, the Tata motors(-17.67) , M & M (-14.48) and Maruti
suzuki (-3.13) are the least performing stocks in making better returns.

CONCLUSION

In order to achieve the objective of maximizing the return, the investors need to consider
both risk factor and return potential of various companies under consideration. Equity analysis is
one of the most important techniques used to measure the risk and return factor of equities of
different companies.

 From the point of return, it is suggested to buy Ashok Leyland

 From the point of risk, it is advised to select Maruti Suzuki
 Among all other companies, Ashok Leyland and Hero Moto Corp are the best companies
to invest because they are providing high returns with minimal risk

BIBLIOGRAPHY
TEXT BOOKS:

S.NO. NAME AUTHOR PUBLISHER

Security analysis Prentice Hall

1 and portfolio S.Kevin India Learning
management Private Limited

WEBSITES

www.nseindia.com

www.moneycontrol.com

yahoofinance.com

Investopedia

indiabulls.com

tatamotors.com

m&m.com
marutisuzuki.com

ashokleyland.com

heromotocorp.com

CHAPTER-1

INTRODUCTION

1.1 INDUSTRY PROFILE

1.2 COMPANY PROFILE

1.3 REVIEW OF LITERATURE

CHAPTER-2

RESEARCH METHODOLOGY

2.1 OBJECTIVES OF THE STUDY

2.2 NEED FOR THE STUDY

2.3 SCOPE OF THE STUDY

2.4 RESEARCH DESIGN

2.5 LIMITATIONS

CHAPTER – 3

DATA ANALYSIS

&
 INTERPRETATION

CHAPTER – 4

FINDINGS

SUGGESTIONS
CONCLUSION

ANNEXURE

SYNOPSIS
BIBLIOGRAPHY