View
226
Download
0
Category
Preview:
Citation preview
7/31/2019 Project Report on tata steel shares
1/28
1.DETERMINANTS OF SHARE PRICES OF STEEL INDUSTRY
FOR 2007 AND 2011- BASED ON PROFITABILITY RATIOSA
FACTOR ANALYSIS APPROACH
2.COMPARISONS OF PERFORMANCE FROM 2007 TO 2011 OF
TOP FIVE PLAYERS IN STEEL INDUSTRY- ANOVA
APPROACH
PLAYERS :
STEEL AUTHORITY OF INDIA LIMITED(SAIL)
TATA STEEL(TISCO)
ELECTROSTEEL CASTING LIMITED
JINDAL STEEL LIMITED
LLOYD STEEL
7/31/2019 Project Report on tata steel shares
2/28
ABSTRACT
The following project tries to examine the primary profitability factors responsible for affecting steel industry in India. Further this paper
attempts to investigate the relative influence of the factors affecting share prices of steel industry and thereby categorizing them. i considered
the following determinants gp margin, np margin, operating profit, return on capital employed, return from long term funds, cash margin etc.
.With the help of multiple regression model and applying Factor analysis the primary factors are traced out. Then using anova i have ranked the
companies and tried to evaluate their performance.
In my project, i have estimated the relationship between share prices of steel industry and some other important profitability factors and got
some interesting results related to this. i have taken into consideration the Multicollinearity problem among different independent variables
and attempted to eliminate it. i have used statistical methods to do the analysis based on yearly basis database of different profitability factors.
Finally i got some relationships of those factors with share prices of steel industry. In my analysis i found that return on capital employed along
with Factor 1i.e; operational efficiency and Factor score 2i.e; investors return are significantly affecting share prices of steel industry.
Key words:Share prices, profitability ratios, Multiple Regression analysis, Multicollinearity , Factor Analysis, Anova.
SOFTWARES USED: SPSS, MS EXCEL.
7/31/2019 Project Report on tata steel shares
3/28
STUDENTS INVOLVED
1.RONAL MUKHERJEE (11/MBA/64)
UNDER THE GUIDANCE OF
Dr. Gautam Bandyopadhyay
Associate Professor, NIT,
Durgapur, India
math_gb@yahoo.co.in
7/31/2019 Project Report on tata steel shares
4/28
STEPS INVOLVED IN THE RESEARCH
1. CHECKING THE DISTRIBUTION WHETHER NORMAL OR NOT.
2. SHOWING THAT REGRESSION FAILED
3. FACTOR ANALYSIS FOR YEAR 20114. REGRESSION SUCCESSFUL FOR THE FACTORS
5. NAME THE FACTORS
6. FACTOR ANALYSIS FOR YEAR 2007
7. REGRESSION SUCCESSFUL FOR THE FACTORS
8. NAME THE FACTORS
9. RANK THE COMPANIES USING THE FACTORS FOR 2007 USING ANOVA10. RANK THE COMPANIES USING THE FACTORSFOR 2011 USING ANOVA
11. COMPARE THEIR INDIVIDUAL GROWTH OR DECLINE.
7/31/2019 Project Report on tata steel shares
5/28
STEP 1
One-Sample Kolmogorov-Smirnov Test
shareprice
operating profit
margin
profit before
interest and
tax gross profit margin cash profit margin
adjusted cash
profit margin
net profit
margin adjusted net margin
return on capital
employed
return on net
worth adjusted return on net worth
N 25 25 25 25 25 25 25 25 25 25
Normal Parametersa
Mean -19.7200 24.8132 18.1760 13.8124 16.5976 16.6052 12.5348 12.5236 21.5336 20.0532 19.8
Std. Deviation 173.35717 18.05262 13.99259 14.84098 10.61080 10.60423 9.86017 9.88793 18.38057 8.55207 9.11
Most Extreme Differences Absolute .205 .121 .137 .162 .129 .129 .168 .160 .123 .145 .
Positive .176 .121 .109 .108 .108 .100 .132 .131 .123 .145 .
Negative -.205 -.101 -.137 -.162 -.129 -.129 -.168 -. 160 -.076 -.070 -.
Kolmogorov-Smirnov Z 1.023 .604 .685 .810 .644 .643 .842 .799 .614 .725 .
Asymp. Sig. (2-tailed) .246 .858 .736 .527 .802 .803 .477 .546 .845 .670 .
a. Test distribution is Normal.
Since the sig values are all greater than .05 therefore it represents a normal distribution. Hence the following cases of REGRESSION
and FACTOR ANALYSIS and ANOVA can be done.
STEP 2
7/31/2019 Project Report on tata steel shares
6/28
Table showing that regression failed
Variables Entered/Removed
b
Model
Variables
Entered
Variables
Removed Method
1 return on long
term funds,
adjusted return
on net worth,
operating profit
margin, gross
profit margin,
cash profit
margin, profit
before interest
and tax, return
on capital
employed, return
on net worth,
adjusted net
margin, adjusted
cash profit
margina
. Enter
a. Tolerance = .000 limits reached.
b. Dependent Variable: shareprice
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .512a
.263 -.264 194.90958
7/31/2019 Project Report on tata steel shares
7/28
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .512a
.263 -.264 194.90958
a. Predictors: (Constant), return on long term funds, adjusted return
on net worth, operating profit margin, gross profit margin, cash profit
margin, profit before interest and tax, return on capital employed,
return on net worth, adjusted net margin, adjusted cash profit margin
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Constant) 142.384 134.737 1.057 .309
operating profit margin 1.083 5.585 .113 .194 .849 .156 6.421
profit before interest and tax -19.248 24.454 -1.554 -.787 .444 .014 73.967
gross profit margin 1.624 4.382 .172 .371 .716 .244 4.099
cash profit margin -220.856 264.498 -13.518 -.835 .418 .000 4.976E3
adjusted cash profit margin 204.591 261.086 12.515 .784 .446 .000 4.843E3
adjusted net margin 41.308 46.804 2.356 .883 .392 .007 135.310
return on capital employed 4.352 28.008 .373 .155 .879 .009 109.150
return on net worth -44.369 47.137 -2.189 -.941 .363 .010 102.661
adjusted return on net worth 40.967 49.139 2.155 .834 .418 .008 126.825
return on long term funds -7.485 23.856 -.727 -.314 .758 .010 101.845
a. Dependent Variable: shareprice
Since all values of tolerance are less than .5 then we can conclude that multicollinearity occurs. This is also evident from the fact that
all t values lie between -2 to +2 and vif values are greater than 2.So factor analysis can be done.
7/31/2019 Project Report on tata steel shares
8/28
STEP 3
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .738
Bartlett's Test of Sphericity Approx. Chi-Square 749.184
df 55
Sig. .000
The KMO Bartlett Test Statistic is equal to 0.738 which exceeds 0.5 and hence, the Null hypothesis of spherical matrix is rejected. This conclusion is
further supported by Bartlett Test of sphericity where the 2 statistic is significant at 5% level. Hence non spherical correlation matrix confirms the
presence of multicollinearity.
Table showing factor analysis for year 2011.
Correlation Matrixa,b,c
operating profit
margin
profit before
interest and tax gross profit margin cash profit margin
adjusted cash profit
margin net profit margin
adjusted net
margin
return on capital
employed return on net worth
adjusted return on
net worth
return on long term
funds
Correlation operating profit margin 1.000 .996 .996 .975 .976 .985 .986 .802 -.126 -.187 .801
profit before interest and tax .996 1.000 1.000 .958 .959 .988 .989 .810 -.190 -.256 .795
gross profit margin .996 1.000 1.000 .960 .961 .990 .991 .818 -.200 -.265 .803
cash profit margin .975 .958 .960 1.000 1.000 .971 .974 .863 -.115 -.155 .884
adjusted cash profit margin .976 .959 .961 1.000 1.000 .972 .974 .862 -.117 -.156 .883
net profit margin .985 .988 .990 .971 .972 1.000 1.000 .879 -.249 -.312 .863
adjusted net margin .986 .989 .991 .974 .974 1.000 1.000 .877 -.241 -.303 .862
return on capital employed .802 .810 .818 .863 .862 .879 .877 1.000 -.550 -.567 .988
return on net worth -.126 -.190 -.200 -.115 -.117 -.249 -.241 -.550 1.000 .989 -.459
adjusted return on net worth -.187 -.256 -.265 -.155 -.156 -.312 -.303 -.567 .989 1.000 -.461
7/31/2019 Project Report on tata steel shares
9/28
return on long term funds .801 .795 .803 .884 .883 .863 .862 .988 -.459 -.461 1.000
a. Only cases for which year = 2011 are used in the analysis phase.
b. Determinant = .000
Determinant shows that value is tending to zero which shows factor analysis can be available.
Total Variance Explaineda
Compon
ent
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 8.628 78.438 78.438 8.628 78.438 78.438 8.170 74.269 74.269
2 2.026 18.414 96.852 2.026 18.414 96.852 2.484 22.584 96.852
3 .326 2.968 99.820
4 .020 .180 100.000
5 7.575E-16 6.887E-15 100.000
6 2.607E-16 2.370E-15 100.000
7 2.138E-16 1.943E-15 100.000
8 1.563E-16 1.421E-15 100.000
9 4.128E-18 3.752E-17 100.000
10 -2.574E-16 -2.340E-15 100.000
11 -3.780E-16 -3.437E-15 100.000
Extraction Method: Principal Component Analysis.
a. Only cases for which year = 2011 are used in the analysis phase.
7/31/2019 Project Report on tata steel shares
10/28
Rotated Component Matrixa,b
Component
1 2
operating profit margin .989
profit before interest and tax .975
gross profit margin .976
cash profit margin .994
adjusted cash profit margin .994
net profit margin .978
adjusted net margin .980
return on capital employed .822 -.512
return on net worth .994
adjusted return on net worth .980
return on long term funds .836
7/31/2019 Project Report on tata steel shares
11/28
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
b. Only cases for which year = 2011 are used in the
analysis phase.
STEP 4
Table showing that regression model can be fitted after factor analysis.
Variables Entered/Removedb,c
Model
Variables
Entered
Variables
Removed Method
1 return on capital
employed,
REGR factor
score 2 for
analysis 1,
REGR factor
score 1 for
analysis 1a
. Enter
a. All requested variables entered.
b. Dependent Variable: shareprice
c. Models are based only on cases for which year =
2011
Model Summary
Model
R
R Square
Adjusted R
Square
Std. Error of the
Estimate
year = 2011
(Selected)
1 .999a
.997 .988 4.76754
a. Predictors: (Constant), return on capital employed, REGR factor score 2
for analysis 1, REGR factor score 1 for analysis 1
7/31/2019 Project Report on tata steel shares
12/28
Coefficientsa,b
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 6.010 7.676 .783 .577
REGR factor score 1 for
analysis 1 .748 8.162 .017 .092 .942
REGR factor score 2 for
analysis 1-16.885 5.418 -.387 -3.116 .198
return on capital employed 3.062 .911 .732 3.362 .184
a. Dependent Variable: shareprice
b. Selecting only cases for which year = 2011
STEP 5
Name of the first factor operational
efficiency.
Name of the second factor - investorsreturn
STEP 6
Table showing factor analysis for the year 2007
Correlation Matrixa,b,c
operating profitmargin
profit beforeinterest and tax gross profit margin cash profit margin
adjusted cash profitmargin net profit margin
adjusted netmargin
return on capitalemployed return on net worth
adjusted return onnet worth
return on long termfunds
Correlation operating profit margin 1.000 .989 .644 .998 1.000 .966 .970 .958 .725 .737 .680
profit before interest and tax .989 1.000 .713 .991 .991 .993 .995 .986 .728 .740 .746
gross profit margin .644 .713 1.000 .653 .649 .756 .746 .771 .854 .838 .996
cash profit margin .998 .991 .653 1.000 .999 .974 .976 .957 .709 .718 .692
adjusted cash profit margin 1.000 .991 .649 .999 1.000 .970 .973 .959 .720 .730 .687
7/31/2019 Project Report on tata steel shares
13/28
net profit margin .966 .993 .756 .974 .970 1.000 1.000 .986 .707 .716 .788
adjusted net margin .970 .995 .746 .976 .973 1.000 1.000 .989 .709 .720 .777
return on capital employed .958 .986 .771 .957 .959 .986 .989 1.000 .764 .782 .791
return on net worth .725 .728 .854 .709 .720 .707 .709 .764 1.000 .997 .843
adjusted return on net worth .737 .740 .838 .718 .730 .716 .720 .782 .997 1.000 .825
return on long term funds .680 .746 .996 .692 .687 .788 .777 .791 .843 .825 1.000
a. Only cases for which year = 2007 are used in the analysis phase.
b. Determinant = .000
Total Variance Explaineda
Compon
ent
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 9.445 85.862 85.862 9.445 85.862 85.862 6.290 57.185 57.185
2 1.144 10.402 96.263 1.144 10.402 96.263 4.299 39.078 96.263
3 .366 3.332 99.595
4 .045 .405 100.000
5 4.386E-16 3.987E-15 100.000
6 2.920E-16 2.655E-15 100.000
7 1.069E-17 9.719E-17 100.000
8 -7.4 74E-17 -6.795E-16 100.000
9 -1.7 26E-16 -1.569E-15 100.000
10 -2.664E-16 -2.422E-15 100.000
11 -7.791E-16 -7.083E-15 100.000
Extraction Method: Principal Component Analysis.
a. Only cases for which year = 2007 are used in the analysis phase.
7/31/2019 Project Report on tata steel shares
14/28
Rotated Component Matrixa,b
Component
1 2
operating profit margin .919
profit before interest and tax .904
gross profit margin .897
cash profit margin .923
adjusted cash profit margin .921
net profit margin .883
adjusted net margin .889
return on capital employed .849 .506
7/31/2019 Project Report on tata steel shares
15/28
return on net worth .872
adjusted return on net worth .852
return on long term funds .866
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
b. Only cases for which year = 2007 are used in the
analysis phase.
STEP 7
Table showing that regression can be done
Variables Entered/Removedb,c
Model
Variables
Entered
Variables
Removed Method
1 REGR factor
score 2 for
analysis 2,
REGR factor
score 1 for
analysis 2, return
on capital
employeda
. Enter
a. All requested variables entered.
b. Dependent Variable: shareprice
c. Models are based only on cases for which year =
2007
Model Summary
Model
R
R Square
Adjusted R
Square
Std. Error of the
Estimate
year = 2007
(Selected)
1 .997a
.993 .973 57.60850
a. Predictors: (Constant), REGR factor score 2 for analysis 2, REGR factor
score 1 for analysis 2, return on capital employed
7/31/2019 Project Report on tata steel shares
16/28
Coefficientsa,b
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) -2193.668 318.228 -6.893 .092
return on capital employed 87.685 13.217 3.543 6.634 .095
REGR factor score 1 for
analysis 2-1318.124 161.024 -3.771 -8.186 .077
REGR factor score 2 for
analysis 2-742.661 98.723 -2.125 -7.523 .084
a. Dependent Variable: shareprice
b. Selecting only cases for which year = 2007
STEP 8
Name of the first factor operational efficiency.
Name of the second factor- investors
return
STEP 9
Now we will compare the performance of the companies within the five year period and rank them using ANOVA.
For 2007
ANOVA
Sum of Squares df Mean Square F Sig.
REGR factor score 1 for
analysis 2
Between Groups 24.848 4 6.212 93.382 .000
Within Groups 1.330 20 .067
Total 26.179 24
REGR factor score 2 for
analysis 2
Between Groups 8.134 4 2.034 4.463 .010
Within Groups 9.113 20 .456
Total 17.247 24
7/31/2019 Project Report on tata steel shares
17/28
return on capital employed Between Groups 5849.219 4 1462.305 12.946 .000
Within Groups 2259.066 20 112.953
Total 8108.285 24
Multiple Comparisons
Tukey HSD
Dependent Variable (I) companyname (J) companyname
Mean Difference
(I-J) Std. Error Sig.
95% Confidence Interval
Lower Bound Upper Bound
REGR factor score 1 for
analysis 2
sail tisco -1.61467646*
.16312347 .000 -2.1028030 -1.1265499
jindal -1.27227978*
.16312347 .000 -1.7604063 -.7841533
lloyd 1.17571199*
.16312347 .000 .6875855 1.6638385
electrosteel casting -.08577095 .16312347 .984 -.5738975 .4023556
tisco sail 1.61467646*
.16312347 .000 1.1265499 2.1028030
jindal .34239667 .16312347 .259 -.1457298 .8305232
lloyd 2.79038844*
.16312347 .000 2.3022619 3.2785150
electrosteel casting 1.52890550*
.16312347 .000 1.0407790 2.0170320
jindal sail 1.27227978*
.16312347 .000 .7841533 1.7604063
tisco -.34239667 .16312347 .259 -.8305232 .1457298
lloyd 2.44799177*
.16312347 .000 1.9598652 2.9361183
electrosteel casting 1.18650883*
.16312347 .000 .6983823 1.6746354
lloyd sail -1.17571199*
.16312347 .000 -1.6638385 -.6875855
tisco -2.79038844*
.16312347 .000 -3.2785150 -2.3022619
jindal -2.44799177*
.16312347 .000 -2.9361183 -1.9598652
electrosteel casting -1.26148294*
.16312347 .000 -1.7496095 -.7733564
electrosteel casting sail .08577095 .16312347 .984 -.4023556 .5738975
tisco -1.52890550*
.16312347 .000 -2.0170320 -1.0407790
jindal -1.18650883*
.16312347 .000 -1.6746354 -.6983823
lloyd 1.26148294*
.16312347 .000 .7733564 1.7496095
REGR factor score 2 for
analysis 2
sail tisco 1.45905167*
.42691390 .020 .1815653 2.7365380
jindal .70403294 .42691390 .485 -.5734534 1.9815193
lloyd 1.18775419 .42691390 .076 -.0897321 2.4652405
electrosteel casting 1.54360645*
.42691390 .013 .2661201 2.8210928
tisco sail -1.45905167*
.42691390 .020 -2.7365380 -.1815653
jindal -.75501873 .42691390 .418 -2.0325051 .5224676
7/31/2019 Project Report on tata steel shares
18/28
lloyd -.27129748 .42691390 .967 -1.5487838 1.0061888
electrosteel casting .08455478 .42691390 1.000 -1.1929315 1.3620411
jindal sail -.70403294 .42691390 .485 -1.9815193 .5734534
tisco .75501873 .42691390 .418 -.5224676 2.0325051
lloyd .48372125 .42691390 .787 -.7937651 1.7612076
electrosteel casting .83957351 .42691390 .317 -.4379128 2.1170598
lloyd sail -1.18775419 .42691390 .076 -2.4652405 .0897321
tisco .27129748 .42691390 .967 -1.0061888 1.5487838
jindal -.48372125 .42691390 .787 -1.7612076 .7937651
electrosteel casting .35585226 .42691390 .917 -.9216341 1.6333386
electrosteel casting sail -1.54360645*
.42691390 .013 -2.8210928 -.2661201
tisco -.08455478 .42691390 1.000 -1.3620411 1.1929315
jindal -.83957351 .42691390 .317 -2.1170598 .4379128
lloyd -.35585226 .42691390 .917 -1.6333386 .9216341
return on capital employed sail tisco -14.45600 6.72171 .238 -34.5699 5.6579
jindal -19.42800 6.72171 .061 -39.5419 .6859
lloyd 22.89200*
6.72171 .021 2.7781 43.0059
electrosteel casting 7.83400 6.72171 .770 -12.2799 27.9479
tisco sail 14.45600 6.72171 .238 -5.6579 34.5699
jindal -4.97200 6.72171 .944 -25.0859 15.1419
lloyd 37.34800*
6.72171 .000 17.2341 57.4619
electrosteel casting 22.29000*
6.72171 .025 2.1761 42.4039
jindal sail 19.42800 6.72171 .061 -.6859 39.5419
tisco 4.97200 6.72171 .944 -15.1419 25.0859
lloyd 42.32000*
6.72171 .000 22.2061 62.4339
electrosteel casting 27.26200*
6.72171 .005 7.1481 47.3759
lloyd sail -22.89200*
6.72171 .021 -43.0059 -2.7781
tisco -37.34800*
6.72171 .000 -57.4619 -17.2341
jindal -42.32000*
6.72171 .000 -62.4339 -22.2061
electrosteel casting -15.05800 6.72171 .206 -35.1719 5.0559
electrosteel casting sail -7.83400 6.72171 .770 -27.9479 12.2799
tisco -22.29000*
6.72171 .025 -42.4039 -2.1761
jindal -27.26200*
6.72171 .005 -47.3759 -7.1481
lloyd 15.05800 6.72171 .206 -5.0559 35.1719
7/31/2019 Project Report on tata steel shares
19/28
The mean difference is significant at the 0.05 level.
Homogeneous Subsets
REGR factor score 1 for analysis 2
Tukey HSD
companyname N
Subset for alpha = 0.05
1 2 3
lloyd
5
-
1.3669562
E0
sail
5
-
1.9124418
E-1
electrosteel casting
5
-
1.0547323
E-1
jindal5
1.0810356
E0
tisco5
1.4234323
E0
Sig. 1.000 .984 .259
Means for groups in homogeneous subsets are displayed.
Ranking based on operational efficiency- 1.Tisco
2. Jindal
3 Electrosteel casting
4. Sail5. Lloyd
7/31/2019 Project Report on tata steel shares
20/28
REGR factor score 2 for analysis 2
Tukey HSD
companyname N
Subset for alpha = 0.05
1 2
electrosteel casting
5
-
1.1619264E
0
tisco
5
-
1.0773716E
0
lloyd 5 -.8060741 -.8060741
jindal 5 -.3223529 -.3223529
sail 5 .3816801
Sig. .317 .076
Means for groups in homogeneous subsets are displayed.
Ranking based on investor return 1 Sail
2. Jindal
3. Lloyd
4. Tisco5. Electrosteel casting
return on capital employed
Tukey HSD
companyname N
Subset for alpha = 0.05
1 2 3
lloyd 5 -1.9900
electrosteel casting 5 13.0680 13.0680
sail 5 20.9020 20.9020
tisco 5 35.3580
7/31/2019 Project Report on tata steel shares
21/28
jindal 5 40.3300
Sig. .206 .770 .061
Means for groups in homogeneous subsets are displayed.
Ranking based on capital employed 1. Jindal
2. Tisco
3. Sail
4 Electrosteel casting
5. lloyd
Step 10
For 2011
ANOVA
Sum of Squares df Mean Square F Sig.
REGR factor score 1 for
analysis 1
Between Groups 28.249 4 7.062 42.285 .000
Within Groups 3.340 20 .167
Total 31.590 24
REGR factor score 2 for
analysis 1
Between Groups 14.805 4 3.701 6.065 .002
Within Groups 12.206 20 .610
Total 27.011 24
return on capital employed Between Groups 3888.273 4 972.068 13.908 .000
Within Groups 1397.838 20 69.892
Total 5286.111 24
Multiple Comparisons
7/31/2019 Project Report on tata steel shares
22/28
Tukey HSD
Dependent Variable (I) companyname (J) companyname
Mean Difference
(I-J) Std. Error Sig.
95% Confidence Interval
Lower Bound Upper Bound
REGR factor score 1 for
analysis 1
sail tisco -.50430049 .25847083 .324 -1.2777420 .2691410
jindal -.72893562 .25847083 .071 -1.5023772 .0445059
lloyd 2.10874521*
.25847083 .000 1.3353037 2.8821867
electrosteel casting 1.09136464
*
.25847083 .003 .3179231 1.8648062
tisco sail .50430049 .25847083 .324 -.2691410 1.2777420
jindal -.22463514 .25847083 .905 -.9980767 .5488064
lloyd 2.61304570*
.25847083 .000 1.8396042 3.3864872
electrosteel casting 1.59566512*
.25847083 .000 .8222236 2.3691067
jindal sail .72893562 .25847083 .071 -.0445059 1.5023772
tisco .22463514 .25847083 .905 -.5488064 .9980767
lloyd 2.83768083*
.25847083 .000 2.0642393 3.6111224
electrosteel casting 1.82030026*
.25847083 .000 1.0468587 2.5937418
lloyd sail -2.10874521*
.25847083 .000 -2.8821867 -1.3353037
tisco -2.61304570
*
.25847083 .000 -3.3864872 -1.8396042
jindal -2.83768083*
.25847083 .000 -3.6111224 -2.0642393
electrosteel casting -1.01738057*
.25847083 .007 -1.7908221 -.2439390
electrosteel casting sail -1.09136464*
.25847083 .003 -1.8648062 -.3179231
tisco -1.59566512*
.25847083 .000 -2.3691067 -.8222236
jindal -1.82030026*
.25847083 .000 -2.5937418 -1.0468587
lloyd 1.01738057*
.25847083 .007 .2439390 1.7908221
REGR factor score 2 for
analysis 1
sail tisco -.01160045 .49408122 1.000 -1.4900766 1.4668757
jindal -.94308569 .49408122 .345 -2.4215618 .5353904
lloyd .28782533 .49408122 .976 -1.1906508 1.7663014
electrosteel casting 1.45337608 .49408122 .055 -.0251000 2.9318522
tisco sail .01160045 .49408122 1.000 -1.4668757 1.4900766
jindal -.93148524 .49408122 .356 -2.4099613 .5469909
lloyd .29942578 .49408122 .972 -1.1790503 1.7779019
electrosteel casting 1.46497653 .49408122 .053 -.0134996 2.9434526
jindal sail .94308569 .49408122 .345 -.5353904 2.4215618
tisco .93148524 .49408122 .356 -.5469909 2.4099613
7/31/2019 Project Report on tata steel shares
23/28
lloyd 1.23091102 .49408122 .132 -.2475651 2.7093871
electrosteel casting 2.39646177*
.49408122 .001 .9179857 3.8749379
lloyd sail -.28782533 .49408122 .976 -1.7663014 1.1906508
tisco -.29942578 .49408122 .972 -1.7779019 1.1790503
jindal -1.23091102 .49408122 .132 -2.7093871 .2475651
electrosteel casting 1.16555076 .49408122 .168 -.3129254 2.6440269
electrosteel casting sail -1.45337608 .49408122 .055 -2.9318522 .0251000
tisco -1.46497653 .49408122 .053 -2.9434526 .0134996
jindal -2.39646177*
.49408122 .001 -3.8749379 -.9179857
lloyd -1.16555076 .49408122 .168 -2.6440269 .3129254
return on capital employed sail tisco 12.77600 5.28742 .152 -3.0459 28.5979
jindal 10.85400 5.28742 .278 -4.9679 26.6759
lloyd 37.68000*
5.28742 .000 21.8581 53.5019
electrosteel casting 19.87800*
5.28742 .010 4.0561 35.6999
tisco sail -12.77600 5.28742 .152 -28.5979 3.0459
jindal -1.92200 5.28742 .996 -17.7439 13.8999
lloyd 24.90400*
5.28742 .001 9.0821 40.7259
electrosteel casting 7.10200 5.28742 .669 -8.7199 22.9239
jindal sail -10.85400 5.28742 .278 -26.6759 4.9679
tisco 1.92200 5.28742 .996 -13.8999 17.7439
lloyd 26.82600*
5.28742 .000 11.0041 42.6479
electrosteel casting 9.02400 5.28742 .452 -6.7979 24.8459
lloyd sail -37.68000*
5.28742 .000 -53.5019 -21.8581
tisco -24.90400*
5.28742 .001 -40.7259 -9.0821
jindal -26.82600*
5.28742 .000 -42.6479 -11.0041
electrosteel casting -17.80200*
5.28742 .023 -33.6239 -1.9801
electrosteel casting sail -19.87800*
5.28742 .010 -35.6999 -4.0561
tisco -7.10200 5.28742 .669 -22.9239 8.7199
jindal -9.02400 5.28742 .452 -24.8459 6.7979
lloyd 17.80200*
5.28742 .023 1.9801 33.6239
*. The mean difference is significant at the 0.05 level.
7/31/2019 Project Report on tata steel shares
24/28
Homogeneous Subsets
REGR factor score 1 for analysis 1
Tukey HSD
companyname N
Subset for alpha = 0.05
1 2 3
lloyd
5
-
1.4828676
E0
electrosteel casting
5
-
4.6548698
E-1
sail5
6.2587766
E-1
tisco5
1.1301781
E0
jindal 5 1.3548133
E0
Sig. 1.000 1.000 .071
Means for groups in homogeneous subsets are displayed.
Ranking based on operational efficiency- 1. Jindal
2. Tisco
3. Sail
4. Electrosteel casting
5. Lloyd
7/31/2019 Project Report on tata steel shares
25/28
REGR factor score 2 for analysis 1
Tukey HSD
companyname N
Subset for alpha = 0.05
1 2
electrosteel casting
5
-
1.0351938E
0
lloyd 5 .1303570 .1303570
sail 5 .4181823 .4181823
tisco 5 .4297827 .4297827
jindal5
1.3612680E
0
Sig. .053 .132
Means for groups in homogeneous subsets are displayed.
Ranking based on investor return 1. Jindal
2. Tisco
3. Sail
4. Lloyd
5. Electrosteel casting
return on capital employed
Tukey HSD
companyname N
Subset for alpha = 0.05
1 2 3
lloyd 5 -7.6300
electrosteel casting 5 10.1720
tisco 5 17.2740 17.2740
jindal 5 19.1960 19.1960
sail 5 30.0500
Sig. 1.000 .452 .152
Means for groups in homogeneous subsets are displayed.
7/31/2019 Project Report on tata steel shares
26/28
Ranking based on capital employed 1. Jindal
2. Tisco
3. Sail
4. Electrosteel casting
5. Lloyd
Step 11
Comparison from 2007 to 2011
BASED ON OPERATIONAL EFFICIENCY
YEAR/COMPANY
NAME
TISCO SAIL JINDAL LLOYD ELECTROSTEEL
2007 1 4 2 5 3
2011 2 3 1 5 4
7/31/2019 Project Report on tata steel shares
27/28
BASED ON INVESTORS RETURN
YEAR/COMPANY
NAME
TISCO SAIL JINDAL LLOYD ELECTROSTEEL
2007 4 1 2 3 5
2011 2 3 1 4 5
BASED ON CAPITAL EMPLOYED
YEAR/COMPANY
NAME
TISCO SAIL JINDAL LLOYD ELECTROSTEEL
2007 2 3 1 5 4
2011 2 3 1 5 4
7/31/2019 Project Report on tata steel shares
28/28
CONCLUSION
In the context of Indian economy the appreciation of return on capital employed will bring in more funds which will act as
stimulant to foster growth and in this process the injection of capital flows will affect share prices. It is evident from thecoefficient table that the rise in the return of capital employed has a positive impact on share prices of steel industry.
Due to the constraint on data base we have not considered the impact of political factors and economical factors and
turbulence on share prices of steel industry. Here we have analyzed eleven independent variables but more quantitative
factors can be included in further research.
References:1.Research paper of Dr. Gautam Bandyopadhyay.
2.Spss notes of Dr. Gautam Bandyopadhyay
3.Research methodologyNaresh and Malhotra
Recommended