ANALYSIS OF STOCK MARKET l Finance.doc

7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc

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Analysis of Stock Market

Summer InternshipSummer Internship

PROJECTPROJECT

ONON

Analysis of stock market

Submitted To- Mr. Nitish Dipankar

Prepared By-

Namit Agrawal

MBA (GEN), Sec E

A0101907262

Amity Business School

1Amity Business School


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Acknowledgements

I pay my sincere regards to Mr. Nitish Dipankar, Area Sales Manager, Retail

Liabilities, Wealth Management, Consumer Banking, Standard Chartered, for

guiding me throughout the project with his valuable insights, and giving me the

opportunity to work on this wonderful project, which helped me to analyze and

interpret the performance of various companies in terms of fundamental attributes

and market sentiments, hone my thinking ability and gain a deeper insight into

their business model. I acknowledge, with due respect, the continuous guidance

he provided without which, the completion of this project work would not have

been possible.

I am also grateful to the HOD, Finance, Amity Business School, Amity

University, Noida and my faculty guide Prof. S. K. Malhotra, who not only

guided me throughout the project but also provided the much needed inspiration

and motivation.

Namit Agrawal

A0101907262

MBA (GEN.), ABSAU



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Abstract

The aim of this project work is to analyze and present the findings about financial

performance of some Indian companies both on their internal business front and the stock

markets. The objective is to judge their performance and chart out future projections and

potentials which in turn would help to recommend the investors whether to sell, hold or

accumulate the stocks of these companies.

The project included the collection of daily turnover and trading of the companies on the

largest two bourses of India NSE and BSE. The information from these was used to do

the Technical Analysis i.e.to calculate and judge the market sentiment about the

companies.

The Balance sheets, P&l accounts and Income statements of the companies were used to

do the Fundamental Analysis to find out the internal story and performance of the

company.

Corporate News and other information helped in judging the future growth prospects of

the companies and their prospective effects on the overall market sentiment.

Overall the project was an excellent opportunity to look into the unseen and to gain a lot

of information and knowledge about valuations, business trends, performance and to get a

glimpse of what is to come in the future. Based on the current scenario, an attempt has

been made using modern techniques to forecast the future earnings and value creation of

the researched companies.



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Table of Contents

S.no. Topic Page No.

1. Introduction 5

2. Economic Growth & GDP 6

3. Per capita income and consumption 7

4. Industry and Infrastructure 8

5. IIP 10

6. Population and Growing Middle Class 12

7. Research Model - CANSLIM 15

8. Research Methodology 16

9. Companies and respective sector 17

10. Company Analysis - Factors 18

11. Bharti Airtel 19

12. DLF 25

13. HUL 30

14. ICICI Bank 37

15. Infosys Technologies 42

16. Larsen & Toubro 47

17. Reliance Infrastructure 52

18. RIL 57

19. Conclusions 63

20. Implications for future Research 65

21. References 66



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Introduction

India is experiencing a good economic growth. This has led to the increase in the number

of people earning handsome income. These people are attracted to invest in the stocks

and securities of various companies in the share market as they see appreciation of their

investments in them. But the stocks should not be bought on mere speculation as they

could seriously erode the wealth if not selected properly and if the timing is not

appropriate.

The objective of the project is to analyze the fundamentals and the future potential of the

various companies and provide useful information and insights to the investors as to

whether they should invest in a particular stock and for what frame of time. Various

models and practices which are time tested and used extensively by professional analysts

and investment companies have been used for the above expressed purpose.



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MACROECONOMIC FACTORS

Economic growth and GDP:

The countrys GDP at current market prices is projected at Rs. 46, 93,602 crore in 2007-

08 by the Central Statistical Organization (CSO). Thus, in the current fiscal year, the size

of the Indian economy at market exchange rate will cross US$ 1 trillion. At the nominal

exchange rate (average of April-December 2007) GDP is projected to be US$ 1.16

trillion in 2007-08. Per capita income at nominal exchange rate is estimated at US$

1,021. According to the World Bank system of classification of countries as low income,

middle income and high income, India is still in the category of low income countries.

The (per capita) GDP at purchasing power parity is conceptually a better indicator of the

relative size of the economy than the (per capita)GDP at market exchange rates. There

are, however, practical difficulties in deriving GDP at PPP, and we now have two

different estimates of the PPP conversion factor for 2005. Indias GDP at PPP is

estimated at US$ 5.16 trillion or US$ 3.19 trillion depending on whether the old or new

conversion factor is used. In the former case, India is the third largest economy in the

world after the United States and China, while in the latter it is the fifth largest (behind

Japan and Germany).

GDP at factor cost at constant 1999-2000 prices is projected by the CSO to grow at 8.5

per cent in 2008-09. This represents a deceleration from the unexpectedly high growth of

9.4 per cent, 9.6 per cent and 8.7 per cent respectively, in the previous three years. With

the economy modernizing, globalizing and growing rapidly, some degree of cyclical

fluctuation is to be expected.



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Per capita income and consumption:

Economic growth, and in particular the growth in per capita income, is a broad

quantitative indicator of the progress made in improving public welfare. Per capita

consumptionis another quantitative indicator that is useful for judging welfare

improvement.The pace of economic improvement has moved up considerably during the

last five years(including 2007-08). Since 2003, there has been a sharp acceleration in the

growth of per capita income, almost doubling to an average of 7.2 per cent per annum

(2003-04 to 2007-08).This means that average income would now double in a decade,

well within one generation, instead of after a generation (two decades). The growth rate

of per capita income in 2007-08 is projected to be 7.2 per cent, the same as the average of

the five years to the current year.

Per capita private final consumption expenditure has increased in line with per capita

income. The growth rate has almost doubled to 5.1 per cent per year from 2003-04 to

2007-08, with the current years growth expected to be 5.3 per cent, marginally higher

than the five year average. The average growth of consumption is slower than the average

growth of income, primarily because of rising saving rates, though rising tax collection

rates can also widen the gap (during some periods). Year to year changes in consumption

also suggest that the rise in consumption is a more gradual and steady process, as any

sharp changes in income tend to get adjusted in the saving rate.

Per capita income and consumption (in 1999-2000 prices):

Income is taken as GDP at market prices.

Consumption is PFCE.

Per capita is obtained by dividing these by population.


Year Income Consumption

2007-08 Rs. Growth (%) Rs. Growth (%)

29,78

6

7.2 17,145 5.3


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Industry and infrastructure:

The industrial sector witnessed a slowdown in 2007-08. The growth of 9 per cent whenviewed against the back drop of the robust growth witnessed in the preceding four years,

suggests that there is a certain degree of moderation in the momentum of the industrial

sector. The consumer durable goods sector in particular has shown a distinct slowdown.

This is linked to the hardening of interest rates and therefore to the conditions prevailing

in the domestic credit sector. In contrast, the capital goods industry has sustained strong

growth performance during 2007-08.

At the product group level, the moderation in growth has been selective. Industries like

chemicals, food products, leather, jute textiles, wood products and miscellaneous

manufacturing products witnessed acceleration in growth, while basic metals, machinery

and equipments, rubber, plastic and petroleum products and beverages and tobacco

recorded lower but strong growth during 2007-08. Other industries including textiles

(except jute textiles), automotives, paper, non-metallic mineral products and metal

products slowed down visibly during the period. Within automobiles, while passenger

cars, scooters and mopeds witnessed buoyant growth, the production of motor cycles and

three wheelers slackened.

The picture with regard to forward-looking variables such as investment, particularly in

the corporate sector, has been encouraging. Corporate profitability during 2007-08 on the

whole increased in the manufacturing sector except for certain groups like textiles, food

products and beverages. Higher profits backed by sound balance sheets were also

reflected in an increase in the planned corporate investment. The outstanding gross bank

credit to the industrial sector which had increased slowly, picked up in later months to

touch 8.3 per cent during 2007-08. These developments are also reflected in the robust

growth of the capital goods sector. The continued buoyancy in industrial and corporate

investment thus reflects the confidence in the growth prospects of the industrial sector.



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Accompanying the recent moderation in industrial growth, the growth performance of

some segments of the infrastructure sector during 2007-08 such as power generation and

movement of railway freight, as also the production of universal intermediates like steel,

cement and petroleum, have shown a subdued performance. In the power sector, though

the planned capacity addition is unlikely to be achieved, the growth in capacity seen in

the current year is distinctly higher than in the previous years. The movement of cargo

handled by major ports and air cargo (exports and imports) has showed improved

performance as compared to the corresponding period last year. With increased rural

penetration of mobile telephony, the telecom sector has continued its strong growth.

The recent moderation in the growth of the industrial sector has raised concerns in some

quarters about the sustainability of the high growth of the sector. To deal with the

situation emerging from the slowdown of some export oriented sectors of relatively low

import intensity including textiles, handicrafts, leather, etc, the Government took certain

measures to tide over the situation in the short run. But it needs to be emphasized that,

over the medium term, there is little choice but to improve productivity, even if there are

issues pertaining to the exchange rate of currencies of competing countries.



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Index of Industrial Production:

Index of Six Infrastructure Industries (Base: 1993-94=100):

The Index of Six core-infrastructure industries having a combined weight of 26.7 per

cent in the Index of Industrial Production (IIP) with base 1993-94 registered a growth of

5.6% during April-March 2007-08.

Crude Oil production (weight of 4.17% in the IIP) registered a growth of 0.4%.

Petroleum refinery production (weight of 2.00% in the IIP) registered a growth of 6.5%.

Coal production (weight of 3.2% in the IIP) registered a growth of 6.0%.

Electricity generation (weight of 10.17% in the IIP) registered a growth of 6.3%.

Cement production (weight of 1.99% in the IIP) registered a growth of 8.1%.

Finished (carbon) Steel production (weight of 5.13% in the IIP) registered a growth of

5.1%.

The slowdown in the growth of Index for Industrial Production (IIP) has resurrected

concerns about lower growth in India Incs earnings, given that the manufacturing sectors

account for a major portion of the Indian stock market capitalization (over 60 per cent ofS&P CNX 500).

The growth for the full year 2007-08 has witnessed moderation.

While the slowdown in growth has been widely perceived to be a result of a higher base,

other factors suggest that there is more to the slowdown than just a base effect.

A recent survey by CII-ASCON for instance, suggests an increase in the number of

sectors that have witnessed negative growth in 2007-08 as compared with 2006-07. The

survey has reported that out of 104 sectors under coverage, sectors with a negative

growth have increased by 16.3 per cent in the recent year, compared with an 11.2 per cent

increase in FY07.



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Both the IIP numbers and the survey clearly indicate slowing output (and thus off take) in

the consumer durables sector. Steep increases in lending rates over the past couple of

years appear to have moderated the demand for two and four-wheelers as well as

electronic goods.

Current prime lending rates according to the RBI data stand at 12.75-13.25 per cent,

which is a steep 200 basis points increase over rates that prevailed in March 2006. The

IIP numbers reflect negative growth in the consumer durables segment for 2007-08. The

survey also indicates that majority of the sectors that witnessed negative growth fall

under the consumer durables industry. This is not surprising as two-wheeler and car-

makers have reported lower growth in off take during the fiscal.

While the basic, intermediate and capital goods sectors have also witnessed a tapering

down in growth, they appear to have fared better than consumer goods. The survey, for

instance, suggests that close to 50 per cent of the sectors that have witnessed production

growth of over 20 per cent are from the capital goods industry. Amidst pressure from

higher raw material costs as a result of spiralling inflation, increased fuel costs and higher

cost of borrowing, the core sectors appear to have put up a better show. This suggests that

slowing off take has not yet trickled down to the capital goods and other feeder

industries; but the next few months may have to be watched on that.

The silver lining for India Inc, from this slowdown, may yet lie in the export-oriented

sectors, especially IT services, as a rapidly depreciating rupee may bolster realizations for

these sectors.



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Effect of Population and Growing Middle Class:

Inspite of the IIP not showing very impressive figures during 2007-08, there is still

confidence in the economy. This is primarily due to the huge burgeoning middle class

population of the country and the increasing level of the earnings of the people. In fact,

the domestic consumption of the country is steadily increasing at a rapid pace. The

country has been able to maintain the GDP of 9% upwards and 8.7% for the last 4 fiscals

and the previous fiscal respectively. This shows that the economy is indeed in a balanced

position and poised to maintain the growth.

Though there have been some news from different quarters about lowering of the

business due to the slowing down of the world economy especially U.S. economy and the

Rupee appreciation, the fact is that the economy will continue to be led by domestic

consumption. There will be some impact of the U.S. slowdown but it will not be large

enough to offset out growth path. As for the concerns regarding Rupee appreciation, the

currency is loosening its strength against the dollar and is now trading at a comfortable

level and thus will not affect the exporters negatively.

It is important to here that the major part of the population of the country i.e.58.5 croreapprox. is in the 15-59 years age bracket and having the earning potential. There are 54

crore people below the 25years of age and it is an important fact because this group will

earn, spend and will eventually drive the growth of the country in the times to come. The

following figures illustrate the facts.



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ESTIMATED POPULATION OF INDIA 2008

In thousands (000')

S No. India and State / Union territory*

Persons Males Females

INDIA (TOTAL) 1,147,677 592,245 555,432

1 Jammu & Kashmir 12,366 6,423 5,943

2 Himachal Pradesh 6,550 3,328 3,222

3 Punjab 26,591 14,162 12,429

4 Chandigarh* 1,063 598 465

5 Haryana 23,772 12,763 11,009

6 Delhi* 17,076 9,357 7,719

7 Rajasthan 64,641 33,589 31,052

8 Uttar Pradesh 190,891 99,894 90,997

9 Uttaranchal 9,497 4,836 4,661

10 Bihar 93,823 48,677 45,14611 Jharkhand 30,010 15,436 14,574

12 Sikkim 594 317 277

13 Arunachal Pradesh 1,200 632 568

14 Nagaland 2,187 1,146 1,041

15 Manipur 2,627 1,329 1,298

16 Mizoram 980 506 474

17 Tripura 3,510 1,801 1,709

18 Meghalaya 2,536 1,285 1,251

19 Assam 29,929 15,421 14,508

20 West Bengal 87,869 45,278 42,591

21 Orissa 39,899 20,214 19,865

22 Madhya Pradesh 69,279 36,057 33,222

23 Chhattisgarh 23,646 11,935 11,711

24 Gujarat 56,408 29,358 27,050

25 Dadra & Nagar Haveli* 262 150 112

26 Maharashtra 106,894 55,492 51,402

27 Andhra Pradesh 82,180 41,449 40,731

28 Karnataka 57,399 29,145 28,254

29 Goa 1,628 825 803

30 Daman & Diu* 188 116 72

31 Lakshadweep* 69 35 3432 Kerala 34,232 16,638 17,594

33 Tamil Nadu 66,396 33,298 33,098

34 Pondicherry* 1,074 537 537

35 Andaman & Nicobar Islands* 411 218 193



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DEMOGRAPHIC PROFILE:


Age Groups Persons Males Females

6 years and below 163,819,614 84,999,203 78,820,411

Proportion to total population (%) 15.9 16.0 15.9

7 to 14 years 199,791,198 104,488,119 95,303,079


15 to 59 years 585,638,723 303,400,561 282,238,162


60 years and above 76,622,321 37,768,327 38,853,994

Proportion to total population (%) 7.5 7.1 7.8Age Not Stated 2,738,472 1,500,562 1,237,910



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Research Model - CANSLIM

CANSLIMmodel is a method for selecting and analyzing the performance of acompany over various parameters. This model has been used for the purpose of research.

The full form of the model is as follows:

C Current quarterly earnings.

A Annual earning increases over the last years.

N New products, management, new highs and lows.

S Small supply and large demand i.e. future profitability.

L Leaders and laggard stocks. (using relative index as a guide).

I Institutional support and sponsorship.

M Determining market direction by reviewing market averages daily.



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Research Methodology

The research has been done by selecting the companies which are the representative of a

particular sector on the basis of overall market capitalization, stocks having the highest

liquidity and turnover both on the NSE and BSE. A caution was thus taken and by

thorough approach the best companies were selected so as to portray a genuine picture of

the sector. With the help of SPSS Package and using the quantitative techniques, the

statistical analysis has been done.

The following analysis has been done for all the 8 companies:

1. Fundamental analysis.

2. Ratio analysis.

3. Future growth and earnings analysis.

4. Statistical analysis.

5. Technical analysis.



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Companies and Respective Sector

The 8 companies from the most important sectors which form the foundation

of the economy have been studied and analyzed. They are:

1. Bharti Airtel Telecommunications.

2. DLF- Realty.

3. HUL FMCG.

4. ICICI Bank Banking.5. Infosys Technologies IT.

6. Larsen &Toubro Capital Goods & Engineering.

7. Reliance Infrastructure Power and Energy.

8. RIL Oil and Gas.



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Company analysis

The analysis of each company has been done in the following heads and

sequence:

1. Score card.

2. Stock price movements.

3. Company profile.

4. Business.5. Shareholding pattern.

6. Financials.

7. Future growth potential.

8. Mutual funds invested in the company.

9. Valuations and risks.

10. Rating.



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Bharti Airtel Limited

SECTOR: TELECOMMUNICATIONS

SCORE CARD:

All the values as on NSE on 27/06/08


Standard Deviation 37.5

Institutional Holding (%) 29.56

Dividend Yield 0.87

P/E 22.83

Market Capitalization(Rs Cr) 145645

CMP(Rs.) 747.95

52 week - high 1184.20

52 week - low 701.00

Face value (Rs.) 10.00


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STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE) :

X - axis: No. of days

Y - axis: Value in Rs.



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BHARTI AIRTEL

COMPANY PROFILE:

Airtel comes from Bharti Airtel Limited, Indias largest integrated and the first private

telecom services provider with a footprint in all the 23 telecom circles. It was established

as a Public Limited Company on July 07, 1995.

Bharti Airtel since its inception has been at the forefront of technology and has steered

the course of the telecom sector in the country with its world class products and services.

It is having a Customer Base comprising of 64,370,434 GSM mobile and 2,319,509

telemedia customers (Status as at month ended April 30, 2008). The businesses at Bharti

Airtel have been structured into three individual strategic business units (SBUs) - Mobile

Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides

mobile & fixed wireless services using GSM technology across 23 telecom circles while

the Airtel Telemedia Services business offers broadband & telephone services in 94

cities. The Enterprise services provide end-to-end telecom solutions to corporate

customers and national & international long distance services to carriers. All these

services are provided under the Airtel brand. The group focuses on delivering

telecommunications services as an integrated offering including mobile, broadband &

telephone, national and international long distance and data connectivity services to

corporate, small and medium scale enterprises.

BUSINESS:

The company is having a Customer Base comprising of 64,370,434 GSM mobile and

2,319,509 telemedia customers (Status as at month ended April 30, 2008).The mobile

business provides mobile & fixed wireless services using GSM technology across 23



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telecom circles while the Airtel Telemedia Services business offers broadband &

telephone services in 94 cities. The Company compliments its mobile and broadband &

telephone services with national and international long distance services. It has over

35,016 route kilometers of optic fibre on its national long distance network. For

international connectivity to east, it has a submarine cable landing station at. For

international connectivity to the west, the Company is a member of the South East Asia-

Middle East-Western Europe 4 (SEA-ME-WE-4) consortium along with 15 other

global telecom operators.

SHAREHOLDING PATTERN:

Face value 10.00

No. Of Shares % Holding

Indian Promoters 859986028 45.31

Foreign Promoters 390363150 20.57

Sub total 1250349178 65.88

Institutional investors

Banks Fin. Inst. and Insurance 46114765 2.43

FII's 474252686 24.99

Sub total 560980300 29.56

Other investorsPrivate Corporate Bodies 38391925 2.02

NRI's/OCB's/Foreign Others 22428844 1.18

Others 2521706 0.13

Sub total 63342435 3.34

General public 23235493 1.22

Grand total 1897907406 100.00

FINANCIALS:



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E = Expected, *for (07-08 and 06-07)

FUTURE GROWTH POTENTIAL:

The growing population of the country along with the betterment in earnings of the

people has resulted in a boom for the telecommunications industry as there is widespread

need and application of these services. The company has been growing at an unabated

pace for the last three years and hopes to carry on the momentum. The company was

recently in talks with the MTN Group of South Africa for a possible merger but the talksfell through as there was the offer of reverse merger and acquisition by MTN which was

not acceptable to the company. The company is however open to alliances and has a

strategic alliance with SingTel. The investment made by SingTel is one of the largest

investments made in the world outside Singapore, in the company. The companys

mobile network equipment partners include Ericsson and Nokia. In the case of the

broadband and telephone services and enterprise services (carriers), equipment suppliers

include Siemens, Nortel, Corning, among others. The Company also has an information

technology alliance with IBM for its group-wide information technology requirements

and with Nortel for call center technology requirements. The call center operations for the

mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech &

Mphasis.


2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 34,699.74 25,703.51 44.47 17,794.43 11,228.68Operating profit 12,838.78 10,501.03 47.55 7,116.95 3,881.83

Net profit 7,980.94 6,244.20 54.82 4,033.22 2,012.07

OPM 37.00 40.85 85Bps 40.00 34.57

NPM 23.00 24.07 152Bps 22.55 17.82

EPS(Rs.) 42.05 32.90 54.68 21.27 10.62

ROE - NA - 35.35 27.47
http://www.singtel.com/http://www.singtel.com/


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MUTUAL FUNDS INVESTED IN THE COMPANY:

Scheme % of scheme asset size

JM Telecom Sector Fund - Growth

31.99

JM Telecom Sector Fund - Dividend31.99

Birla Sun Life New Millenium Fund -Growth

9.01

Birla Sun Life New Millenium Fund -Dividend

9.01

UTI Contra Fund - Growth7.02

VALUATIONS AND RISKS:

The stock is currently trading at a P/E ratio of 22.83.

For the year ending FY 09, the company is expected to report earnings per share of

Rs.42.05.

Thus at the current Market Price of Rs.747.95, the stock is trading at a one year forward

P/E of 17.78.

RATING: HOLD

http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052145&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052145&schemeplancode=2066


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DLF Limited

SECTOR: REALTY

SCORE CARD:





Dividend Yield 0.94

P/E 9.80


CMP(Rs.) 425.10

52 week - high 1225.00

52 week - low 422.40

Face Value (Rs.) 2.00


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STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):





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COMPANY PROFILE:

The DLF group is a leading real estate developer in India. With over six decades of

excellence, DLF is a name synonymous with global standards, new generation

workspaces and lifestyles. The Group has a distinction of developing commercial projects

and technology parks that are at par with the best in the world. DLF has pioneered some

of the best-known urban housing and retail destinations in Delhi including South

Extension, Greater Kailash, Rajouri Garden, Model Town, Hauz Khas and Kailash

Colony.The Group is also establishing partnerships with reputed leaders in the field of

education, healthcare, and hospitality services. DLF has also earmarked the infrastructure

sector and foresees the infrastructure vertical to create new source of revenues and

growth to the group. The key focus areas of vertical are construction of expressways,

highways, airports and other key infrastructure projects.

BUSINESS:

The group has over 224 million sq. ft. of existing development and 748 million sq. ft. of

planned projects. The company has also entered into several strategic alliances with

global industry leaders. The core business traditionally has been into three prime

divisions: Homes, Offices and Shopping Malls. To these DLF has added three more

divisions: Hotels, Infrastructure and SEZs. 220 million square feet of area has been

developed as colonies and townships in the past, including 17 million square feet ofresidential properties.32 million square feet is developed/under development. Several

world-class projects are in the pipe-line. Currently 26 million sq. ft. of rentable

commercial space is possessed by the company. IT Parks are being developed at

Gurgaon, Noida, Chandigarh, Kolkata, Bangalore, Hyderabad, Chennai, Pune,

Bhubaneshwar and Nagpur.



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FINANCIALS:



Face Value 2.00

No. of Shares % Holding


Sub total 1503043120 88.16

Institutional Investors


FII's 128841616 7.56

Sub total 139862476 8.20

Other investors

Private Corporate Bodies 9882408 0.58


Others 398623 0.02

Sub total 11578219 0.68


Grand total 1704705880 99.99

2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 11,065.76 5,532.88 388.13 1,133.48 291.65

Operating profit 4,426.30 3,081.06 346.53 690.00 46.35

Net profit 3,319.73 2,590.28 536.57 406.91 26.70

OPM 40.00 55.69 -518Bps 60.87 15.89

NPM 30.00 42.75 1428Bps 28.47 -

EPS(Rs.) 19.47 15.19 471.05 2.66 15.21

ROE - NA - 62.15 35.26


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World-class construction and design is a part of the companys policy and it has made the

following steps in this direction.

Extensive arrangements with Indias top designers, for example, Hafeez

Contractor, Mohit Gujral, WSP. Finest network of experienced contractors and

suppliers like LOR, L&T, Shapoorji Pallonji, BL Kashyap.

9 million square feet of saleable area under construction

Plans to develop around 70 million square feet of residential projects across

country in next 3 years.

Upcoming Premium housing - in major metros :

Chanakyapuri project in Delhi

Public Private Partnership (PPP) to develop residential project along with Delhi

Development Authority (DDA)

Township development in Gurgaon, Amritsar, Goa, Mumbai, Pune, Chennai

375 million square feet of residential space under planning.

DLF Golf and Country Club, an exclusive 18-hole par 72 Arnold PalmerSignature Golf Course landscaped by internationally acclaimed architect Belt

Collins. It is India's first night Golf Course, ranked as the best in the Country, and

amongst the leading Golf Courses in Asia.



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Birla Fixed Term Plan - Series AG - Growth37.93

Birla Fixed Term Plan - Series AG - IP -Growth

37.93

Birla Fixed Term Plan - Series AG -Dividend

37.93

Birla Fixed Term Plan - Series AG - IP -Dividend

37.93

Birla Fixed Term Plan - Series AD - Growth19.04




Rs.19.47


P/E of 21.83.

RATING: SELL.

http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053548&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053548&schemeplancode=2066


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Hindustan Unilever Limited

SECTOR: FAST MOVING CONSUMER GOODS

SCORE CARD:





Dividend Yield 4.32

P/E 25.84


CMP(Rs.) 208.55

52 week - high 255.85

52 week - low 169.00



32/72







33/72


COMPANY PROFILE:

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods

company, with leadership in Home & Personal Care Products and Foods & Beverages.

HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out

of three Indians. With 35 Power Brands, HUL meets everyday needs for nutrition,

hygiene, and personal care. HUL is also one of the country's largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government of India. The

Parent company, Unilever, holds 52.10% of the equity. It is a Fortune 500 transnational

which sells Foods and Home and Personal Care brands in about 100 countries worldwide.

HUL has traditionally been a company, which incorporates latest technology in all its

operations.

BUSINESS:

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,

Kwality Wall's are household names across the country and span many categories -

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary

products. They are manufactured over 40 factories across India. The operations involve

over 2,000 suppliers and associates. HUL's distribution network comprises about 4,000

redistribution stockists, covering 6.3 million retail outlets reaching the entire urban

population, and about 250 million rural consumers.

Major Brands of HUL:

Personal wash: Lux, Breeze, Lifebuoy, Dove, Liril, Pears, Hamam, Rexona.



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Laundry: Surf Excel, Rin, Wheel

Skin Care: Fair &Lovely, Ponds, Vaseline

Hair Care: Sunsilk Naturals, Clinic

Oral Care: Pepsodent, Closeup

Deodorants: Axe, Rexona

Colour Cosmetics: Lakme

Ayurvedic: Ayush

Tea: Brooke Bond, Lipton

Coffee: Brooke Bond Bru

Foods: Kissan, Annapurna, Knorr

Ice Cream: Kwality Walls



Face value 1.00


Promoters holding

Foreign Promoters 1134849460 52.11

Sub total 1134849460 52.11



FII's 330009896 15.15

Sub total 661001438 30.35

Other investors



Directors/Employees 198946 0.01

Govt. 20 -

Others 1172543 0.05

Sub total 27077411 1.24

General public 355051027 16.30Grand total 2177979336 100.00


35/72


FINANCIALS:


2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 15,775.41 13,717.75 13.34 12,103.39 11,060.55Operating profit 2,050.80 1,885.70 14.42 1,648.06 1,443.33

Net profit 2,129.68 1,923.79 3.68 1,855.37 1,364.06

OPM 13.00 13.75 13Bps 13.62 13.05

NPM 13.50 13.57 -132Bps 14.89 12.00

EPS(Rs.) 9.78 8.83 4.99 8.41 6.20

ROE - NA - 122.97 68.14


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Home to over 700 million people, rural India comprises not only over 70% of India's

billion-strong population, but also over 12% of the world's population. The rural

population already accounts for substantial consumption of Fast Moving Consumer

Goods and also consumer durables. About 50% of the sales of soaps & detergents are

generated in rural India. Similarly, almost half the demand for black & white television

sets, pressure cookers, table fans, sewing machines also comes from there.

But the potential is even larger, both in terms of consumption and penetration. The fact

that 70% of the population accounts for only 50% of even relatively well-penetrated

categories, like soaps & detergents, indicates the enormous scope of consumption-led

growth in these categories. Therefore such categories will derive growth out of increased

usage. In categories, which are relatively less penetrated, like personal products, rural

Hindustan Unilever's distribution network is recognized as one of its key strengths. Its

focus is not only to enable easy access to our brands, but also to touch consumers with a

three-way convergence - of product availability, brand communication, and higher levels

of brand experience. HUL's products, manufactured across the country, are distributed

through a network of about 7,000 redistribution stockists covering about one million

retail outlets. The distribution network directly covers the entire urban population.



Franklin FMCG Fund - Growth8.18

Franklin FMCG Fund - Dividend8.18

BOB Growth Fund - Growth8.12

BOB Growth Fund - Dividend8.12

http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067


37/72


ING Dividend Yield Fund - Growth5.35




Rs.9.78.


P/E of 21.32.

RATING: HOLD

http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052001&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052001&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052001&schemeplancode=2066


38/72


ICICI Bank Limited

SECTOR: BANKING

SCORE CARD:





Dividend Yield 3.22

P/E 22.84


CMP(Rs.) 652.15

52 week - high 1455.50

52 week - low 675.10



39/72







40/72


ICICI BANK

COMPANY PROFILE:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$

100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended

March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian

stock exchanges in terms of free float market capitalization. The Bank has a network of

about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. The Bank

currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Unites

States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International

Finance Centre and representative offices in United Arab Emirates, China, South Africa,

Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established

branches in Belgium and Germany.

BUSINESS:

The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence

in 18 countries. ICICI Bank is India's second-largest bank with total assets of Rs.

3,997.95 billion (US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58

billion for the year ended March 31, 2008. ICICI Bank is second amongst all the

companies listed on the Indian stock exchanges in terms of free float market

capitalization. ICICI Bank offers a wide range of banking products and financial servicesto corporate and retail customers through a variety of delivery channels and through its

specialised subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management.



41/72


ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).


FINANCIALS:



Face Value 10.00


Promoters holding - -



FII's 448624885 40.32

Sub total 638977003 57.43Other investors



Others 317963554 28.58

Sub total 388514197 34.92


Grand total 1112687495 100.00

2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 40,024.84 30,788.34 33.89 22,994.29 14,306.13

Operating profit 24,014.90 19,729.57 40.15 14,077.37 7,710.91Net profit 4,802.98 4,157.73 33.68 3,110.22 2,540.07

OPM 60.00 64.08 286Bps 61.22 53.90

NPM 12.00 10.50 -25Bps 10.75 13.17

EPS(Rs.) 43.16 37.37 8.06 34.58 28.55

ROE - NA - 12.79 11.43


42/72



The company is moving ahead strongly and the future of the company is indeed bright.

The growing middle class of the country is a major prospective client category which

seems to speed up the business turnover and base.





Birla Dynamic Bond Fund - Retail Plan - Growth254.53

Birla Dynamic Bond Fund - Retail Plan - Dividend-Quarterly254.53

Standard Chartered Fixed Maturity Plan - 18 Months Series 1- A - Growth

99.55

Standard Chartered Fixed Maturity Plan - 18 Months Series 1- B - Growth

99.55

Standard Chartered Fixed Maturity Plan - 18 Months Series 1- A - Dividend

99.55
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2181http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2181http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053586&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053586&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2067


43/72




Rs.43.16.Thus at the current Market Price of Rs.652.15, the stock is trading at a one year forward

P/E of 15.11.

RATING: ACCUMULATE.

Infosys Technologies Limited

SECTOR: INFORMATION TECHNOLOGY

SCORE CARD:




Dividend Yield 2.33

P/E 22.23


CMP(Rs.) 1705.45

52 week - high 2141.95

52 week - low 1255.00



44/72


All the values as on NSE on27/ 06/08



45/72







46/72


COMPANY PROFILE:

Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with

US$ 250. Today, it is a global leader in the "next generation" of IT and consulting with

revenues of over US$ 4 billion. Infosys has a global footprint with over 40 offices and

development centers in India, China, Australia, the Czech Republic, Poland, the UK,

Canada and Japan. Infosys has over 91,000 employees. Infosys takes pride in building

strategic long-term client relationships. Over 97% of their revenues come from existing

customers. Fortune ranked Infosys as 10th among Top Companies for Leaders 2007.

Infosys defines designs and delivers technology-enabled business solutions that help

Global 2000 companies win in a Flat World. Infosys also provides a complete range of

services by leveraging the domain and business expertise and strategic alliances with

leading technology providers.

BUSINESS:

Infosys' service offerings spanbusiness and technology consulting, application services,

systems integration,product engineering,custom software development, maintenance, re-

engineering, independent testing and validation services,IT infrastructure services and

business process outsourcing.The refreshing approach of the company to consulting has

been recognized by the industry and leading business publications. In July 2007,

Consulting Magazine named Romil Bahl, managing director and co-founder of Infosys

Consulting, Inc., among its list of 2007 Annual Top 25 Consultants. In January 2006,

Forrester Research named Infosys among the leading Indian IT Services companies

offering consulting services. The report said: "Infosys is best positioned to offer high-

value management consulting skills."

http://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/locations.asphttp://www.infosys.com/flat-world/business/default.asphttp://www.infosys.com/about/alliances/default.asphttp://www.infosys.com/industries/default.asphttp://www.infosys.com/consulting-services/default.asphttp://www.infosys.com/IT-services/application-services/default.asphttp://www.infosys.com/IT-services/systems-integration/default.asphttp://www.infosys.com/engineering-services/product-engineering/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/IT-services/independent-validation-services/default.asphttp://www.infosys.com/IT-services/infrastructure-services/default.asphttp://www.infosys.com/BPO-services/default.asphttp://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/locations.asphttp://www.infosys.com/flat-world/business/default.asphttp://www.infosys.com/about/alliances/default.asphttp://www.infosys.com/industries/default.asphttp://www.infosys.com/consulting-services/default.asphttp://www.infosys.com/IT-services/application-services/default.asphttp://www.infosys.com/IT-services/systems-integration/default.asphttp://www.infosys.com/engineering-services/product-engineering/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/IT-services/independent-validation-services/default.asphttp://www.infosys.com/IT-services/infrastructure-services/default.asphttp://www.infosys.com/BPO-services/default.asp


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Face Value 5.00

No. of Shares % of HoldingIndian Promoters 94495978 16.52

Sub total 94495978 16.52



FII's 190821914 33.36

Sub total 231576661 40.49

Other investors



Others 112512428 19.67

Sub total 145730341 25.48


Grand total 571995758 100.00


48/72


FINANCIALS:



Infosys' services and business solutions are strengthened by alliances with leading

technology partners. It recommends technologies to the client based on what is best for

the client. In a marketing alliance, Infosys and the alliance partner jointly deliver business

solutions which leverage Infosys' industry, functional and technical expertise, Infosys'

Global Delivery Model and the alliance partner's technology and services. In a

technology alliance, Infosys works with an alliance partner to build business and

technical competency in the alliance partner's technology through training, engagement

with the alliance partner's technical support and development teams and the development

of tools and methodologies at Infosys' Centers of Excellence.



Franklin Infotech Fund - Growth40.59

Franklin Infotech Fund - Dividend40.59

UTI Growth Sector Fund - Software - Growth21.36

UTI Growth Sector Fund - Software - Dividend21.36


2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 17,995.20 15,648.00 19.00 13,149.00 9,028.00

Operating profit 5,038.66 4,963.00 17.52 4,223.00 2,989.00

Net profit 4,678.75 4,470.00 18.16 3,783.00 2,421.00

OPM 28.00 31.72 -40Bps 32.12 33.11

NPM 26.00 27.37 -60Bps 27.97 26.40

EPS(Rs.) 81.79 78.15 18.15 66.14 87.72

ROE - NA - 33.89 35.10
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2067


49/72


SBI Magnum Sector Funds Umbrella - IT -Growth

9.05




Rs.81.79.


P/E of 20.85.

RATING: HOLD.

Larsen &Toubro

SECTOR: CAPITAL GOODS AND ENGINEERING

SCORE CARD:

http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066


50/72






Dividend Yield 0.84

P/E 31.44


CMP(Rs.) 2265.80

52 week - high 4690.00

52 week - low 2055.55



51/72







52/72


COMPANY PROFILE:

Larsen & Toubro (L&T) is a technology-driven USD 7 billion company that infuses

engineering with imagination. It offers a wide range of advanced solutions, services and

products. L&T's in-house capabilities in technology development are complemented by

tie-ups with world leaders. It provides state-of-the-art products & solutions to a large and

diverse customer base. L&T was founded in Bombay (Mumbai) in 1938 by two Danish

engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly

committed to developing India's engineering capabilities to meet the demands of

industry. Beginning with the import of machinery from Europe, L&T rapidly took on

engineering and construction assignments of increasing sophistication. Today, the

company sets global engineering benchmarks in terms of scale and complexity.

BUSINESS:

Larsen & Toubro (L&T) is a technology-driven USD 7 billion company that infuses

engineering with imagination. It offers a wide range of advanced solutions, services and

products. Larsen & Toubro Limited (L&T) is a technology, engineering, construction and

manufacturing company. It is one of the largest and most respected companies in India's

private sector.

Seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of

business.



53/72



FINANCIALS:

2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 34,003.10 25,187.48 40.71 17,900.59 14,883.68

Operating profit 3,740.34 2,814.63 61.15 1,746.54 957.50

Net profit 2,720.00 2,173.42 54.91 1,403.02 1,012.14

OPM 11.00 11.17 141 Bps 9.76 6.43

NPM 8.00 8.43 79Bps 7.64 6.56

EPS(Rs.) 93.09 74.34 24.81 49.53 73.66

ROE - 27.50 3.02 24.48 22.05



Face Value 2.00


Promoters holding - -



FII's 48556421 16.61

Sub total 158743787 54.30

Other investors



Directors/Employees 3232312 1.11

Others 49278207 16.86

Sub total 66009495 22.58


Grand total 292197996 99.96


54/72



With the economic progress of the country and the prospects of the other businesses

looking good, the company hopes to continue with the current momentum. The following

points illustrate its achievements and a glimpse of what is to come.

L&T-Paul Wurth Consortium Commissions Indias Largest Blast Furnace at Jamshedpur.

L&T Bagged Electrical Project Orders worth Rs. 6,350 million in the Gulf Region.

L&T and GE Energy entered Control System Partnership Agreement.



ICICI Prudential FMP S 39 - 3 M Plan A -Growth

99.61

ICICI Prudential FMP S 39 - 3 M Plan A -Dividend

99.61

BOB Balance Fund - Growth26.55

BOB Balance Fund - Dividend26.55

Baroda Global Fund - Growth14.92




Rs.93.09.


P/E of 24.3.

RATING: ACCUMULATE (STRONGLY RECOMMENDED).

http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl02%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl04%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl05%24lbl_newsname%27%2C%27%27%29/http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl02%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl04%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl05%24lbl_newsname%27%2C%27%27%29/http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066


55/72


Reliance Infrastructure Limited

(formerly Reliance Energy)

SECTOR: POWER AND ENERGY

SCORE CARD:





Dividend Yield 1.19

P/E 22.53


CMP (Rs) 886.55

52 week - high 2641.00

52 week - low 562.00



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Reliance Infrastructure

COMPANY PROFILE:

Reliance Energy Limited, now Reliance infrastructure limited incorporated in 1929, is a

fully integrated utility engaged in the generation, transmission and distribution of

electricity. It ranks among Indias top listed private companies on all major financial

parameters, including assets, sales, profits and market capitalization. The companys

Vision is to be amongst the most admired and most trusted integrated utility companies in

the world, delivering reliable and quality products and services to all customers at

competitive costs, with international standards of customer care thereby creating

superior value for all stakeholders and also to set new benchmarks in standards of

corporate performance and governance through the pursuit of operational and financial

excellence, responsible citizenship and profitable growth.

BUSINESS:

A constituent of the Reliance Anil Dhirubhai Ambani Group, Reliance Energy is India s

foremost private sector utility with aggregate estimated revenues of Rs 9,500 crore

(US$2.1 billion)and total assets of Rs 10,700 crore (US$2.4 billion). Reliance Energy

distributes more than 21 billion units of electricity to over 25 million consumers in

Mumbai, Delhi, Orissa and Goa, across an area that spans 1,24,300 sq.kms. It generates

941 MW of electricity, through its power stations located in Maharashtra, Andhra

Pradesh, Kerala, Karnataka and Goa.Reliance Energy companies currently pursue several

gas, coal, wind and hydro-based power generation projects in Maharashtra, Uttar

Pradesh, Arunachal Pradesh and Uttaranchal with aggregate capacity of over 13,510

MW. These projects are at various stages of development.



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FINANCIALS:



Face Value 10.00



Sub total 85028643 35.95



FII's 43858727 18.54

Sub total 98759602 41.75

Other investors

Private Corporate Bodies 15652015 6.62NRI's/OCB's/Foreign Others 1448686 0.61

Govt. 81368 0.03

Others 6088813 2.57

Sub total 23270882 9.84


Grand total 236530262 100.00

2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 7,891.46 6,313.17 10.89 5,692.95 3,998.22

Operating profit 631.31 495.37 3.10 480.45 712.32

Net profit 1,104.80 991.33 23.69 801.45 730.89OPM 8.00 7.85 -59Bps 8.44 17.82

NPM 14.00 13.22 103Bps 12.19 15.86

EPS(Rs.) 46.70 42.07 27.32 35.06 34.42

ROE - NA - 9.27 9.24


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The company has a number of projects in the hand and is poised to become a giant in the

times to come. This was evident from the IPO issue of the company of approx.3 billionwhich was Indias largest IPO so far. The IPO was oversubscribed by about 89 times.

Though due to the overall market correction, the price could not be maintained and the

promoter offered a bonus issue of 3:5 shares to the shareholders to remain invested and

be confident of the fundamentals of the company. The real power of the company will be

unleashed after a few years when the projects are completed and start generating much

more revenue for the company.





BOB Growth Fund - Growth8.70

BOB Growth Fund - Dividend8.70

Taurus INFRA-TIPS - Growth8.23

Taurus INFRA-TIPS - Dividend8.23

Reliance NRI Equity Fund - Growth8.07
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051816&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051816&schemeplancode=2066


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Rs.46.70.


P/E of 18.98.

RATING: ACCUMULATE FOR A LONG TERM INVESTMENT.

Reliance Industries Limited

SECTOR: OIL & GAS

SCORE CARD:




Dividend Yield 0.59

P/E 16.69


CMP(Rs.) 2182.65

52 week - high 3298.00

52 week - low 1676.10



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X - axis: No. of daysY - axis: Value in Rs.



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COMPANY PROFILE:

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest

private sector enterprise, with businesses in the energy and materials value chain. Group's

annual revenues are in excess of US$ 34 billion. The flagship company, Reliance

Industries Limited, is a Fortune Global 500 company and is the largest private sector

company in India.Backward vertical integration has been the cornerstone of the evolution

and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a

strategy of backward vertical integration - in polyester, fibre intermediates, plastics,

petrochemicals, petroleum refining and oil and gas exploration and production - to be

fully integrated along the materials and energy value chain.The Group's activities span

exploration and production of oil and gas, petroleum refining and marketing,

petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.

BUSINESS:

The company is a significant contributor to India's economic growth:

Revenues equivalent to 3% of Indias GDP

13.4% of Indias total exports

4.9% of the Government of Indias indirect tax revenues

6.7% of the total market capitalization in India

Weightage of 16.5% in the BSE Sensex

Weightage of 12.5% in the Nifty Index



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Face Value 10.00



Sub total 746704874 51.37



FII's 259136306 17.83

Sub total 384091089 26.42

Other investors



Govt. 3742983 0.26Others 53954815 3.71

Sub total 141531017 9.74


Grand total 1453648601 100.00


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FINANCIALS:



2008-09 E 2007-08YoY

Chg(%)*2006-07 2005-06

Net Sales 1,74,086.25 1,39,269.0 25.60 1,10,886.00 89,124.00Operating profit 29,246.49 23,306.00 27.98 18,210.00 14,299.00

Net profit 26,112.93 19,458.00 78.38 10,908.00 9,069.00

OPM 16.80 16.73 31Bps 16.42 16.04

NPM 15.00 13.88 406Bps 9.82 10.10

EPS(Rs.) 179.63 133.82 71.02 78.25 65.06

ROE - 20.10 0.61 19.49 20.08


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The company has made various oil and gas discoveries in the recent times and these are

considered to drive the success of the company in the times to come.

Credit Ratings of the company clearly reflect the confidence the world has in the

companys prospects.

Rating Agency Instrument Rating

CRISIL Long Term Debt AAA

Fitch Long Term Debt Ind AAA

CRISIL Short Term Debt P1+

CRISIL Working Capital Debt AAA

Moody's International Debt Baa2

S&P International Debt BBB

Fitch International Debt BBB -




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Rs.179.63.


P/E of 12.15.



Baroda Global Fund - Growth18.04

Baroda Global Fund - Dividend18.04

Franklin India Index Fund - BSE Sensex Plan -Growth

16.01

Franklin India Index Fund - BSE Sensex Plan -Dividend

16.01

Tata Index Fund - Sensex Plan (A) - Growth 15.87
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051244&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051244&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051244&schemeplancode=2066


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RATING: ACCUMULATE.



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Conclusions

Based on the research done, the following conclusions and ratings are given for the

various companies under consideration.

1. Bharti Airtel Hold. The company is doing well and looks forward to increasing both

business penetration and profits thus creating value for the shareholders. Hence the rating

- hold.

2. DLF Sell. Though the company is going at a decent pace, there doesnt seem to be

much appreciation in the stock in the near future. Only the investors having a long term

orientation are advised to hold the stock.

3. HUL Hold. The FMCG sector which is traditionally a slow growth sector is seeing a

good growth due to rising middle class. The company seems to capitalize on this

opportunity. Hence the rating- Hold.

4. ICICI Bank Accumulate. The Banking sector though is suffering from interest rate

hardening, the performance of the second largest Bank of India has been better than its

peers. The company has strong growth base and a large consumer base to cater and seems

to be well positioned. Hence the rating accumulate.

5. Infosys Hold. The IT bellwether of the country has seen mixed response and faced

challenges on export front due to Rupee appreciation. Now the situation as the currency



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has depreciated making the exports viable again and the company looks in a comfortable

position. Hence the rating Hold.

6. L&T Accumulate. The company is experiencing rapid progress due to infrastructure

and Engineering requirements boom and is in a perfect position to achieve brilliant

results in the future. Hence the rating Accumulate.

7. Reliance Infrastructure Accumulate. The company has various projects in its kitty

and is approaching towards them at a reasonable pace. Though the company will take

some time to come in full swing, the overall future scenario of the company is extremely

well. Hence the rating Accumulate for a long term investor.

8. RIL Accumulate. The company is one of the best companies of the country and is

constantly creating new benchmarks. The companys refining capacity will become very

large once the $5 Billion plant in Jamnagar gets completed in the coming months. The

company seems to be poised to grow and perform and crate value for the shareholders.

Hence the rating Accumulate.



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Implications for Future Research

The research on the above stocks has been done for the period 5th May to 27th June and

the results and findings are reported as based on this period. During this period, the way

the stocks performed on the bourses and the news and recent events which occurred in

the company were taken into consideration.

All the findings and conclusions thus pertain to the aforesaid period and are applicable

for the near future. The stock market sentiments and companys policies and business

keep on experiencing fluctuations and change with time. The model of research used

done is widely accepted and implemented by professional financial advisors. Any further

research on the subject may involve more complicated models like Tobins Q ratio, PEG

ratio and Markowitz Criterion etc.



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References

Books:

Chandra P. (2008). Financial Management. (TMH)

Pandey I.M. (2007). Financial Management. (VIKAS)

Levin I. Richard &Rubin S.David. (2006). Statistics For Management. (PHI)

Newspapers:

The Economic Times

Business Standard

Magazines:

Capital Markets

Business Today

Outlook Money

Value Research

Internet:

Websites of NSE, BSE, RBI, SEBI, CSO, Bharti Airtel, DLF, HUL, ICICI, Infosys,

L&T, Reliance Infrastructure, RIL, money.rediff, money control, google etc.

Documents

ANALYSIS OF STOCK MARKET l Finance.doc