Final Assignment of Sapm

8/4/2019 Final Assignment of Sapm

1/16

Assignment on

Fundamental and Technical

analysis

Of

HDFC bank LTD

SUBMITTED TO

PROF. SHIRURSIR

SUMITTED BY:-

ANKUR AGRAWAL


2/16

INTRODUCTION

HDFC Bank Limited is a majorIndian financial

services company based in India, incorporated in

August 1994, after the Reserve Bank of

India allowed establishing private sector banks. TheBank was promoted by the Housing Development

Finance Corporation, a premier housing finance

company (set up in 1977) ofIndia. HDFC Bank has

1,725 branches and over 5,000 ATMs, in 780 cities

in India, and all branches of the bank are linked on

an online real-time basis. As of 30 September 2008

the bank had total assets of Rs.1006.82 billion. For

the fiscal year 2010-11, the bank has reported net

profit of 3,926.30crore (US$875.56 million), up33.1% from the previous fiscal. Total annual

earnings of the bank increased by 20.37% reaching

at 24,263.4 crore (US$5.41 billion) in 2010-11.

It is one of the Big Four banks ofIndia, along

with State Bank ofIndia, ICICIBankand Punjab

National Bankits main competitors.

HDFC Bank was incorporated in 1994 by Housing

Development Finance Corporation Limited

(HDFC), India's largest housing finance company.It was among the first companies to receive an 'in

principle' approval from the Reserve Bank ofIndia

(RBI) to set up a bank in the private sector. The

Bank started operations as a scheduled commercial

bank in January 1995 under the RBI's liberalization

policies

Type Public

Traded as BSE:500180

NSE:HDFCBANKNYSE:HDB

Industry BankingFinancial services

Founded August 1994

Headquarters Mumbai, India

Area served Worldwide

Key people Aditya Puri (MD)

Products Finance and insuranceInvestment BankingCommercial BankingRetail Banking

Private BankingAsset Management

Revenue24,628.38 crore (US$5.49 billion)(2011)

Operatingincome 7,885.28 crore (US$1.7

6 billion)(2011)

Profit 4,017.69 crore (US$895.94 million)(2011)

Total assets $53.670billion (2010)

Total equity $6.787billion (2010)


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RETAIL BANKING SERVICES

HDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the Mastercard Maestro debit

card as well. The Bank launched its credit card business in late 2001. By March

2009, the bank had a total card base (debit and credit cards) of over 13 million. TheBank is also one of the leading players in the merchant acquiring business with

over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at

merchant establishments. The Bank is positioned in various net based B2C

opportunities including a wide range of internet banking services for Fixed

Deposits, Loans, Bill Payments, etc.

BUSINESS FOCUS

HDFC Bank deals with three key business segments. - Wholesale BankingServices, Retail Banking Services, Treasury. It has entered the banking consortia

of over 50 corporate for providing working capital finance, trade

services, corporate finance, and merchant banking. It is also providing

sophisticated product structures in areas of foreign exchange and derivatives,money markets and debt trading and equity research

TREASURYWithin this business, the bank has three main product areas - Foreign Exchange

and Derivatives, Local Currency Money Market & Debt Securities, and Equities.

These services are provided through the bank's Treasury team. To comply with

statutory reserve requirements, the bank is required to hold 25% of its deposits in

government securities. The Treasury business is responsible for managing thereturns and market risk on this investment portfolio.


4/16

TECHNICAL ANALYSIS

Technical analysis is a financial term used to denote a security analysis discipline

for forecasting the direction of prices through the study of past market data,

primarily price and volume.[1]Behavioral economics and quantitativeanalysis incorporate technical analysis, which being an aspect ofactive

management stands in contradiction to much ofmodern portfolio theory. The

efficacy of both technical and fundamental analysis is disputed by efficient-market

hypothesis which states that stock market prices are essentially unpredictable.

PrincipalTechnicians say that a market's price reflects all relevant information, so their

analysis looks at the history of a security's trading pattern rather than external

drivers such as economic, fundamental and news events. Price action also tends to

repeat itself because investors collectively tend toward patterned behavior hence

technicians' focus on identifiable trends and conditions.

FUNDAMENTAL ANALYSIS

Fundamental analysis of a business involves analyzing its financial

statements and health, its management and competitive advantages, and

its competitors and markets. When applied to futures and forex, it focuses on theoverall state of the economy, interest rates, production, earnings, and management.

When analyzing a stock, futures contract, or currency using fundamental analysis

there are two basic approaches one can use; bottom up analysis and top down

analysis.[1]

The term is used to distinguish such analysis from other types

ofinvestment analysis, such as quantitative analysis and technical analysis

Principal.

The main principle of fundamental analysis is to find profitable companies to

invest in by comparing revenues, sales, management, etc. There are two types of

drivers to look at in fundamental analysis: internal drivers and external drivers.

Internal drivers are company specific (e.g. revenue, net income, assets, debts, etc.).

External drivers are things that can affect the company's profitability but is not

company specific (e.g. the economy, industry averages, etc.)


5/16

Technical Analysis and of HDFC Bank Ltd.

Pivot Point - Support Resistance

Pivot Point - 456.97

Support Price Resistance Price

Support1 451.533 Resistance1 461.433



Intra Day support & resistance

Only Valid for 25/08/2011

General Information

Name HDFC Bank Ltd.

Sector BANKS

Current Price 456.0

Price Change -3.40 / -0.74%

Previous Close 459.4

Average Volume 3271480.0

Nse Code HDFCBANK

Bse Code 500180

Part ofIndex BSE BSE 30

Part ofIndex NSE Nifty 50

Futures and options Yes More F&O Shares


6/16

HDFC BANK :- CHART


7/16

MACD For HDFC Bank Ltd.

MACD (26d ,12d) -9.10683

Signal Line -7.50977

Macd Above Signal

Line

false

Macd/Signal Line

trend days

26

Macd Above Zero

Line

false

Macd/Zero Line trend

days

15

More Technical Indicator

Name Value

Stochastic D Fast 19.0733Stochastic K Fast 21.6162

Stochastic D Slow 20.2797

Relative Strength

Index (RSI) (14

day)

36.5096

BollingerBand

Up

499.174

BollingerBand

Middle

472.432

BollingerBand

Low

445.691

Moving Average Trends

Trend Type Price Above

MA?

No of

Days

15 Day false 25

50 Day false 16

100 Days false 8

15 Day Abv

50 Days MA

false 10

50 Day Abv

100 Days

MA

true 88

Moving Average of HDFC Bank Ltd.

Current Price 456.0

Three Days 456.15

Five Days 458.34

Ten Days 464.355Fifteen Days 466.777

Twenty Two Days 475.091

Thirty Days 483.256

Fifty Days 485.242

Hundred Days 474.869

Two Hundred Days 458.196


8/16

Exponential Moving Average Trends

Trend Type Price Above

EMA?

No of

Days

15 Day false 19

50 Day false 16

100 Days false 8

15 Day Abv

50 Days

EMA

false 11

50 Day Abv

100 Days

EMA

true 99

Exponential Moving Average of

HDFC Bank Ltd.

Current Price 456.0

Five Days 458.747

Ten Days 463.081

Fifteen Days Days 467.388

Twenty Days 470.936

Fifty Days 477.498

Hundred Days 472.641

Two Hundred

Days

459.655


9/16

Three Month Technical Chart for HDFC Bank Ltd.


10/16

CONCLUSION OF TECHNICAL ANALYSIS

Technical Analysis is the study of market action, principally through the use of

charts. Market action is expressed through movement of prices and the volumes

that accompany them. Prices and volumes are therefore the only two variables tobe studied when using technical analysis. Technical analysis is the art of

interpreting stock price movements. Since financial market analysis involves some

degree of subjectivity, all of them are therefore an art and not a science (which

involves exact rules being met under all circumstances).

Since technical analysis deals with the market and not geographical areas, it will

work in any free trading financial markets anywhere.

according to the chart of HDFC bankBSE AND NSE are equally is involve is

stock market . the HDFC bank are realizing the more profit between the years.

In the first month chart shows the first month is stochastic (14030), RSI (140)

MACD(26D, 12D)

The price is also fluctuate is different different year, which affects the control of

financial statement.


11/16

FUNDAMENTAL ANALYSIS OF HDFC BANK

PROFIT AND LOSS A/C

Profit & Loss account of HDFC

Bank

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 19,928.21 16,172.90 16,332.26 10,115.00 6,889.02

OtherIncome 4,433.51 3,810.62 3,470.63 2,205.38 1,510.24

Total Income 24,361.72 19,983.52 19,802.89 12,320.38 8,399.26

Expenditure

Interest expended 9,385.08 7,786.30 8,911.10 4,887.12 3,179.45

Employee Cost 2,836.04 2,289.18 2,238.20 1,301.35 776.86

Selling and Admin Expenses 2,510.82 3,395.83 2,851.26 974.79 727.53

Depreciation 497.41 394.39 359.91 271.72 219.60

Miscellaneous Expenses 5,205.97 3,169.12 3,197.49 3,295.22 2,113.28

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Operating Expenses 8,045.36 7,703.41 7,290.66 3,935.28 2,590.66

Provisions & Contingencies 3,004.88 1,545.11 1,356.20 1,907.80 1,246.61


12/16

Total Expenses 20,435.32 17,034.82 17,557.96 10,730.20 7,016.72



Net Profit for the Year 3,926.40 2,948.70 2,244.94 1,590.18 1,382.54

Extraordionary Items -2.65 -0.93 -0.59 -0.06 -0.35

Profit brought forward 4,532.79 3,455.57 2,574.63 1,932.03 1,455.02

Total 8,456.54 6,403.34 4,818.98 3,522.15 2,837.21

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 767.62 549.29 425.38 301.27 223.57

Corporate Dividend Tax 124.53 91.23 72.29 51.20 38.00

Per share data (annualised)

Earning PerShare (Rs) 84.40 64.42 52.77 44.87 43.29

Equity Dividend (%) 165.00 120.00 100.00 85.00 70.00

Book Value (Rs) 545.53 470.19 344.44 324.38 201.42

Appropriations

Transfer to Statutory Reserves 997.52 935.15 641.25 436.05 288.38

Transfer to Other Reserves 392.64 294.87 224.50 159.02 114.14


13/16

Proposed Dividend/Transfer to Govt 892.15 640.52 497.67 352.47 261.57

Balance c/f to Balance Sheet 6,174.24 4,532.79 3,455.57 2,574.61 1,932.03

Total 8,456.55 6,403.33 4,818.99 3,522.15 2,596.12

BALANCE SHEET

HDFC Bank

Balance Sheet ------------------- in Rs. Cr. -------------------



Capital and Liabilities:

Total Share Capital 465.23 457.74 425.38 354.43 319.39

Equity Share Capital 465.23 457.74 425.38 354.43 319.39

Share Application Money 0.00 0.00 400.92 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 24,914.04 21,064.75 14,226.43 11,142.80 6,113.76

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 25,379.27 21,522.49 15,052.73 11,497.23 6,433.15

Deposits 208,586.41 167,404.44 142,811.58 100,768.60 68,297.94Borrowings 14,394.06 12,915.69 2,685.84 4,478.86 2,815.39

Total Debt 222,980.47 180,320.13 145,497.42 105,247.46 71,113.33

Other Liabilities & Provisions 28,992.86 20,615.94 22,720.62 16,431.91 13,689.13

Total Liabilities 277,352.60 222,458.56 183,270.77 133,176.60 91,235.61



Assets

Cash & Balances with RBI 25,100.82 15,483.28 13,527.21 12,553.18 5,182.48

Balance with Banks, Moneyat Call

4,568.02 14,459.11 3,979.41 2,225.16 3,971.40

Advances 159,982.67 125,830.59 98,883.05 63,426.90 46,944.78

Investments 70,929.37 58,607.62 58,817.55 49,393.54 30,564.80

Gross Block 5,244.21 4,707.97 3,956.63 2,386.99 1,917.56

Accumulated Depreciation 3,073.56 2,585.16 2,249.90 1,211.86 950.89

Net Block 2,170.65 2,122.81 1,706.73 1,175.13 966.67


14/16

Capital Work In Progress 0.00 0.00 0.00 0.00 0.00

Other Assets 14,601.08 5,955.15 6,356.83 4,402.69 3,605.48

Total Assets 277,352.61 222,458.56 183,270.78 133,176.60 91,235.61

Contingent Liabilities 559,681.87 466,236.24 396,594.31 582,835.94 202,126.73

Bills for collection 28,869.10 20,940.13 17,939.62 17,092.85 7,211.88

Book Value (Rs) 545.53 470.19 344.44 324.38 201.42

CASE FLOW

Cash Flow ------------------- in Rs. Cr. -------------------



Net Profit Before

Tax 5818.66 4289.14 3299.25 2280.63 1638.75

Net Cash From OperatingActivities

-375.83 9389.89 -1736.14 3583.43 666.63

Net Cash (used in)/fromInvesting Activities

-1122.74 -551.51 -663.78 -619.82 -311.40

Net Cash (used in)/fromFinancing Activities

1227.99 3598.91 2964.66 3628.34 1637.88

Net (decrease)/increase InCash and Cash Equivalents

-273.56 12435.78 564.74 6591.95 1993.11

Opening Cash & CashEquivalents

29942.40 17506.62 14778.34 8074.54 6188.66

Closing Cash & CashEquivalents

29668.83 29942.40 15343.08 14666.49 8181.77

RATIOS:-

LIQUIDITY RATIO:-

Currrunt ratio = Current assests /currunt libilties

= 277,352.61/277,352.60

= 1.0037:1

ACID TEST RATIO

Current assests inventories/current liabilities


15/16

=277,352.61 - 8,045.36 / 277,352.60

O.9997

RECENT DEVELOPMENT :-

08-JUL-11 Housing Development Finance Corporation (HDFC) Bank has posted a

net profit of Rs 8.45 billion for the quarter ended June 30, 2011 as compared to Rs

6.95 billion for the quarter ended June 30, 2010, reflecting increase of 21.58%. 14-

JUN-11 Citigroup today announced that it has reduced its 11.4% stake in HousingDevelopment Finance Corporation (HDFC) by 1.5% to a 9.9% beneficial interest.

Headquartered in Mumbai.

08-JUL-11

Housing Development Finance Corporation (HDFC) Bank has posted a net profit

of Rs 8.45 billion for the quarter ended June 30, 2011 as compared to Rs 6.95

billion for the quarter ended June 30, 2010, reflecting increase of 21.58%.

14-JUN-11

Citigroup today announced that it has reduced its 11.4% stake in Housing

Development Finance Corporation (HDFC) by 1.5% to a 9.9% beneficial interest.

Headquartered in Mumbai, HDFC is an Indian non-bank financial company in

housing finance and mortgages with USD 37 billion of total assets as ofMar. 31,

2011.

25-APR-11

Country`s second largest private sectorHDFC Bank has been declared thestrongest bank in Asia Pacific by the Asian Banker magazine, report PTI.

18-APR-11

HDFC Bank, one of the India`s largest private sector banks, announced a growth of

33.2% in net profit for the quarter ended March 2011 to Rs 11.15 billion over the


16/16

quarter ended March 2010. Meanwhile, total income grew 34.38% during the

fourth quarter of financial year 2011 to Rs 67.24 billion.

18-APR-11

HDFC Bank has posted a consolidated profit of 32.92% Rs 39,924.90 million forthe quarter ended March 31, 2011 as compared to Rs 30,036.50 million for the

same period last year.

07-MAR-11

The seventh Annual edition of the prestigious Banking Technology Conference &

Expo, organised by The Indian Banks` Association got underway today amongst

an august gathering of top-level bankers of the Indian Banking Industry and

Technology bigwigs at Hotel Trident, Mumbai. The

07-FEB-11

HDFC Bank, the country`s second largest private bank, today signed a

Memorandum ofUnderstanding (MoU) with the Indian Army to offer them salary

accounts and a suite of banking products and services.

03-FEB-11

HDFC Bank, second largest private bank in the country, announced one common

easy-to-remember telephone number for its millions of PhoneBanking customers.

The Bank already offers this service in 9 regional languages

Documents

Final Assignment of Sapm