Ration Analyses BBA PROJECT

8/17/2019 Ration Analyses BBA PROJECT

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PROJECT PROJECT

ON

“RATION ANALYSIS"

AMAR SHAHEED BABA AJIT SINGH JUJHAR SINGH MEMORIAL

COLLEGE

Afliated To

PUNJABI UNIVERSITY PATIALA

In the a!tial "#l$ll%ent o" !ei!e%ent "o! the a'a!d o"

De(!ee o" Ba)helo! o" B#*ine** Ad%ini*t!ation +BBA,

Submitted To:

Submitted B y:

P#n-a.i Uni/e!*it0 Patiala

Maninde! Sin(h

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Roll2No2 31413

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DECLARATION

I a% a *t#dent o" BBA 6th Semester o" AAR S!A!!E BABA AJIT SIN#!

J$J!AR SIN#! EORIAL COLLE#E% BELA de)la!e that the P!o-e)t Reo!t

entitled RATION ANALYSIS i* the o#t)o%e o" %0 o'n 'o!5 and the *a%e ha* not

.een *#.%itted to an0 #ni/e!*it06in*tit#te "o! the a'a!d o" an0 de(!ee o! an0

P!o"e**ional De(!ee

&te: &'i'der Si'(h

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ACKNOWLEGEMENT

“Success is not a description, but a journey.” While I reach towards the end of this journey, I

realized I may not have come this far without the guidance, help and support of the people who

acted as guides, friends and torch bearers along the way.

I tae this opportunity to than Pro)* #eeti+& without their cooperation I would not have been

able to complete this project.

I e!press my deepest and most sincere thans to my organization guide, Mr. !&rish Oberoi

(C*A) from who I had the opportunity to learn a lot, I would lie to than him for giving me

valuable suggestion and guidance with which, my project would have been complete.

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Table of Contents

"#$%&'&(I)* +

&$*)W%#"-##*( /

Executive Summary 0

Introduction 12+3

Methodology +02+1

Analysis +42/3

FINDINGS AND RECOMENAION /02/1

!imitation /4

Conclusion /5

Re"erences /6

Annexures 37205

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Execut!e "u##ar$

(he situation of the stoc maret is very dynamic and it changes every moment so, its very

difficult for the investors to decide which stoc is a growth stoc and profitable for investment.

8undamental analysis is done for long term investment and it analyzes the financial health,

competitors and efficiency of management of the company. In order to eep investors safe from

maret fluctuations and provide them good return by minimizing the ris, 9ortfolio anagement

is done. It is the selection of the securities and their continuous shifting in the portfolio to

optimize returns.

(he aim of our project is to find out the scripts through the fundamental analysis which is to be

added in the portfolio and to prepare an optimum portfolio, which will provide ma!imum return

at a given level of ris to the investor.

(en securities of $*: idcap was considered on the basis of fundamental analysis out of ;3

securities to prepare the portfolio. (he companies are


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%. Intro&ucton

2.1 Purpose

We can say that finance is something related to management of money and other assets. &

financial maret can be defined as the maret in which financial assets are created or transferred.

It facilitates raising of capital in the capital maret, transfer of ris in the derivative maret and

international trade in the currency maret. (he capital maret is designed to finance the long2

term investments. (he transactions taing place in this maret will be periods over a year. $apital

maret consist of stoc marets, which provide financing through the issuance of shares or

common stoc and enable the subse@uent trading thereof. Stoc e!change acts as a financial

intermediary. Indian stoc marets are one of the oldest in &sia. (here are +/ stoc e!changes

out of which >ombay Stoc #!change and *ational Stoc #!change are important.

Investment in securities such as shares, debentures, and bonds

is profitable as well as risy. Investors feel insecure in managing their investment in the stoc

maret because it is difficult for an individual to identify companies having better growth

prospect for investment. (herefore, investors do not invest their entire funds or savings in a

single security. Instead, they tend to invest in a group of securities. Such a group of securities is

called a 9ortfolio. 9ortfolio creation helps to reduce ris without sacrificing returns. 8undamental

analysis is done by the analysts for the long term investment. 9ortfolio management is an art of

putting money in fairly safe, @uite profitable and li@uid form of securities. 9ortfolio management

helps investors to mae an intelligent and informed choice for investment securities.

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'. Obect!es Of Te *roect

(he maret has very volatile nature and it is very difficult for the individuals to identify which

company is growing and in which stocs investments should be made. Investors want to have

minimum ris without sacrificing the return in the long term investment.

So, the objectives of our project areB, #9S and "ividend payout ratio that

would help them in selection of script.

/. (o prepare optimum portfolio, which will provide ma!imum return at a given level of

ris to the investor.

3. (o evaluate the portfolio by different means, to find out whether it is performing good or

bad.

+."tu&$ "co,e

• (o understand the behavior of the Indian stoc maret

• (o analyze the different securities from different sectors by the fundamental factors

• (o provide the valuable insight about portfolio and portfolio management.

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-.Teoretcal *ers,ect!e

5.1 Financial market

8inancial maret is a mechanism that allows people to buy and sell financial securities Csuch as

stoc and bondsD, commodities Csuch as precious metals or agricultural goodsD, and other

fungible items of value at low transaction cost and at prices that reflect the efficient2 maret

hypothesis.

8inancial marets facilitate<

• (he raising of capital Cin the capital maretsD

• (he transfer of ris Cin the derivatives maretD

• International trade Cin the currency maretD

5.2 Types of financial market

8inancial marets can be divided on different basis<

;. *ature of claim < "ebt E #@uity aret

+. aturity of claim < oney E $apital aret

/. Seasoning of claim < 9rimary E Secondary aret

3. (iming of delivery < $ash )' Spot E "erivative aret

0. )rganized structure < #!change traded E )($ aret

5.3Indian financial system

& financial system is a composition of various institutions, marets, regulations and laws,

practices, money manager, analysts, transactions and claims and liabilities. Indian financial

system consists of financial maret, financial instruments and financial intermediation.

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;. nancal Mar/et FIt can be defined as the maret in which financial assets are created or

transferred. &s against a real transaction that involves e!change of money for real goods

or services.

+. nancal Instru#ent2 It represents a claim to the payment of a sum of money sometime

in the future andE or periodic payment in the form of interested or dividend.

#@uityE Share

>ondsE "ebenture

9reference share

(reasuryE bills

$ommercial papers

$ertificate of deposit

utual fund

8inancial derivatives

/. nancal Inter#e&ares F 8inancial intermediaries came into e!istence to serve as a

proper channel within the system to transfer ade@uate information of the issue, issuer and

the security. 8inancial intermediation in the organized sector is conducted by wide range

of institutions functioning under the surveillance of the '>I and S#>I. Some of the

important intermediaries operating in the financial maret includeG investment baners,

underwriters, stoc e!change, registrars, portfolio manager, financial consultants, primary

dealers, self regulatory organizations.

5.4 Stock market

(he maret in which shares are issued and traded either through e!changes or over2the2counter

marets. It is also nown as the e@uity maret. It provides companies with access to capital and

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investors with a slice of ownership in the company and the potential of gains based on the

companyHs future performance.

(his maret can be split into two main sections< the primary and secondary maret.

(he primary maret is where new issues are first offered, with any subse@uent trading going on

in the secondary maret.

5.4.1 Stock exchange2 (he stoc e!change is basically a maretplace for shares and

securities. (hat is why it is also called a stoc maret just lie any other maret. It brings

together the potential buyer and seller of the securities.

nlie other marets, no one is permitted to buy or sell shares

directly in a stoc e!change. &ccording to the stoc e!change rules, anyone has to do so through

a licensed member of stoc e!change called stocbroer, or through his registered sub2broer.

(he stocbroer is authorized to buy or sell shares on behalf of others on a commission basis.

(rading in recognized stoc e!change in India is confined only to listed securities. In India

there are twenty three stoc e!changes. In this only two are major stoc e!changesombay Stoc #!change C>S#D is a stoce!change located on "alal Street, umbai and

is theoldest stoc e!change in &sia. (he e@uity maretcapitalization of the companies listed

on the >S# wasSJ;.1/ trillion as of "ecember +7;7, maing it the3th largest stoc

e!change in &sia and the 5th largest in the world. (he base year of >ombay stoc e!change

is ;645246.

• ajor indices2 >S# Sense! Cbase year ;645246K;77D, >S# ;77 Inde!, >S# +77

Inde!, >S# 077 Inde!, >S# idcap Inde!, >S# Smallcap Inde!, >S# %argecap

Inde!.

Natonal stoc/ excan1e2

(he *ational Stoc #!change of India limited has genesis in the report of the high powered

study group on establishment of new stoc e!change, which recommended promotion of a

national stoc e!change by financial institution to provide access to investors from all part of

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the country. *S# was promoted by government of India and was incorporated in *ovember

;66+ as a ta!2 paying company unlie other stoc e!changes in the country. Its inde! is

*ifty07.

ajor indices

2SL9 $*: *ifty C*ov /, ;661 K;777, base maret cap K 's.+.71 triD, $*: *ifty

?unior, SL9 $*: 077

5.4.2 Few important aspect of stock market 2

Nee& for "toc/ Mar/et In&ex

M Serves as an important lead indicator of themovements in the level of economic activity

M 9rovides benchmar for the evaluation ofperformance of stocsEportfolios

M #nables rational allocation of funds based on therelationship of prices of individual stocs to

themovements in the maret

3tlt$ of "toc/ Mar/et In&ex

M Investors use to determine timing for buyor sell securities

M 9rices of individual stocs are dependenton stoc maret inde!

Caracterstcs of 4ell &efne& stoc/ #ar/et n&ex

M Sample should be representative ofpopulation

M Barious elements in the sample should beassigned weights

M Should be stated in unit that is easy tounderstand

Meto& of constructn1 stoc/ #ar/et n&ex

M Balue weighted2 *S# L >S#

M #@ual weighted Carithmetic meanD 2 #( inde!

M -eometric mean

M $ombination of two or more of the above

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5.5 Shares2)wnership of the company to the e!tent of someone investments. (here are two

categories of shares


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)rdinary shareholders are able to control the management of the company through their

voting rights and right to maintain proportionate ownership.

oting rights2 )rdinary shareholders are re@uired to vote on a number of important

matters. (he most significant proposal include< election of directors and change in the

memorandum of association. #ach ordinary share carries one vote.

!re"emptive rights2 (he pre2emptive right entitle a shareholder to maintain his

proportionate share of ownership in the company. (he laws grant shareholders right to

purchase new shares in the same proportion as their current ownership.

#imited lia$ilit%2 )rdinary shareholders are the true owners of the company, but their

liability is limited to the amount of their investment in shares.

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"o#e oter ter# n e6ut$ sare2

R1t sares2 $ompanies often re@uire additional funds for their woring capital, or for their

e!pansion and diversification program. (hey sometimes raise these funds by the sale of

additional e@uity shares on a “right basisHH to its shareholder. Such shares are called “rightshares” because the companyHs shareholders have a prior right to buy these shares by virtue

of their e!isting shareholding .the number of right shares offered to each shareholder is

directly proportionate to the number of e@uity shares he owns rights shares could either be

offered at par, or at a premium. when such shares are offered for sale at their face value, they

are said to be .offered at par ,and when the sale price is higher, they are said to be offered at a

premium. 9remium is the difference between the issue price of a share and its face value. In

order to mae the issue attractive, the price of rights shares is invariably fi!ed at a level

below, the prevailing maret price of the companyHs share. (he issue of rights shares

increases the e@uity capital of the company but does not dilute an e!isting shareholders

proportionate ownership in the company, if he subscribes to his rights entitlement in full.

8undamental analysis is done for long term investment and this will help the investor to select

the proper scripts for maing the portfolio.

5.6Fundamental analysis2

& method of evaluating a security by attempting to measure its intrinsic value by e!amining

related economic, financial and other @ualitative and @uantitative factors. 8undamental analysts

attempt to study everything that can affect the securityHs value, including macroeconomic factors

and individually specific factors.

(he end goal of performing fundamental analysis is to produce a value that an

investor can compare with the securityHs current price in hopes of figuring out what sort of

position to tae with that security CunderpricedKbuy, overpricedK sellD

(here are three dimensions under 8undamental &nalysis;. #conomy analysis

+. Industry analysis

/. $ompany analysis

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5.&.1'conomic anal%sis

'esearch 8indings<

M Stoc price changes can be attributed tothe following factors

#conomy2wide factors< /72/0 percent

Industry2wide factors< ;02+7 percent

$ompany factors< /72/0 percent

)ther factors< ;72;0 percent

M #conomic forecasting

F Short2term

F edium2term

F %ong2term

M 8orecasting approaches

F &nticipatory surveys approach

F odel building

F >arometricEindicator approach

Caracterstcs of !arous sta1es of econo#$

M 0oo# sta1e

#!cess capacity creation

#!cess demand for fund

'ising interest rates

8ull employment

Intensive competition

9rice cuttings

=igh -*9 growth rate

M Recesson sta1e

Sectoral recession

arginal firms face li@uidity problems

8irms scale down operations

'ising unemployment

8alling income

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8alling -*9 growth rate

M De,resson

$losure of several units

(otal lac of li@uidity

assive unemployment

*egative -*9 growth rate

M Reco!er$

&djustment of demand2supply e@uilibrium due to closures

'eduction in interest rates

'evival of healthy units

*ew employment opportunities

'ising -*9 growth rate

M *ror to 0oo# "ta1e

'evival of sic unit

'ise in employment

Increase in income with people

'ise in demand

'ise in -*9 growth rate

Lea&n1 Econo#c In&cators

M onsoons

M -"S L-"I

M *ew orders for plant L e@uip

M *o of new building permits issued

M &vg weely hrs of mfgprod worers

M &ve weely initial unemployment claims

M Inde! of stoc maret prices

M oney supply

Conc&ent In&cators

M #mployees on non2agricultural payrolls

M 9ersonal income

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M Industrial production

M fg and trade sales

La11n1 n&cators

M &vg duration of unemployment

M 'atio of trade inventories to sales

M $hange in inde! of labour cost Eunit

M &verage prime rate charged by bans

M $ommercial and industrial loans outstanding

M 'atio of consumer credit to personal income

M $hange in consumer price inde! of services

Econo#c Outloo/

M -"9 -rowth rate

F 'evised (arget for ;;th 8N planuyer industry not important customer

SellerHs product important input

"ifferentiation of productsEswitching costs

8orward integration threat

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M 0ar1ann1 ,o4er of bu$ers

$oncentrationElarge purchases relative to seller sales

9urchased products account for significant portion of buyerHs costsEpurchases

Standard products

8ewer switching costs

(hreat of bacward integration

>uyer has full cost information

M Treat of ne4 entrants5 entr$8 ext barrer

#conomies of scaleEcapital

9roduct differentiation

Switching costs

&ccess to distribution channels

&ccess to tech., raw materials, etc

-ovt policy

(hreat of retaliation

7 "ubsttute ,ro&uctM Intenst$ of co#,etton

*umerousEe@ually balanced competitors

Slow industry growth

%ac of switching costs

$apacity augmentation in large increment

%ow entry barriers and high e!it barriers

5.&.) Compan% anal%sis

(here may be situations where the industry is very attractive but a few companies within it might

not doing wellG similarly there may be one or two companies which may be doing e!ceedingly

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well while the rest of the companies in the industry might in the doldrums. &n investor will have

to consider both the financial and non2financial aspect of the company.

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Anal$sn1 nancal "tate#ents

M $hec for F $orrectness F $ompleteness

F $onsistency F $omparability

M %oo for F #arnings from regular operations

M 8inancial performance analysis F *9 F ')& F ')# F #9S F $#9S

F 9# or #9 ratio F "ividend payout ratio

M %everage ratios F "E# ratio F Interest coverage ratioM ')& &nalysis')& K C*SE(&DC#>I(E*SDM ')# &nalysis')# KC9>(E*SDC9&(E9>(DC*SE(&DC(&E*WD

5.Portfolio2

& combination of securities with different ris L return characteristics will constitute the

portfolio of the investor. (hus, a portfolio is the combination of various assets andEor instruments

of investments. (he combination may have different features of ris L return, separate from

those of the components.

5.*.1 !ortfolio design2

>efore designing a portfolio one will have to now the intention of the investor or the returns

that the investor is e!pecting from his investment. (his will help in adjusting the amount of ris.

(his becomes an important point from the point of view of the portfolio designer because if the

investor will be ready to tae more ris at the same time he will also get more returns.

8rom the above discussion we can conclude that the investorscan be of the following three types<

;. Investors willing to taeminimum ris and at the same timeare also e!pecting minimum

returns.

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+. Investors willing to tae moderate ris and at the same timeare also e!pecting moderate

returns.

/. Investors willing to taema!imum ris and at the same timeare also e!pecting ma!imum

returns.

5.*.2 !ortfolio + age relationship

AGE*ORTOLIO

>elow /7 57O in e@uity

;7O in cash

;7O in fi!ed income

/7 to 37 47O in e@uity

;7O in cash

+7O in fi!ed income

37 to 07 17O in e@uity

;7O in cash

/7O in fi!ed income

07 to 17 07O in e@uity

;7O in cash

37O in fi!ed income

&bove 17 37O in e@uity

;7O in cash

07O in fi!ed income

(hese arenPt hard and fast allocations, just guidelines to get youone thin about how hisEher

portfolio should loo.

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5..3 Portfolio mana!ement 5

9ortfolio management is an art of putting money in fairly safe, @uite profitable and reasonablyin

li@uid form. &n investorHs attempt to find the best combination of ris and return is the first

andusually the foremost goal. In choosing among different investment opportunities the

followingaspects ris management should be considered<

a) (he selection of a level or ris and return that reflects the investorHs tolerance forris and

desire for return, i.e. personal preferences.

b) (he management of investment alternatives to e!pand the set of opportunities available at the

investors acceptable ris level2

(here are two ways of portfolio management>

;. (raditional portfolio management

+. odern portfolio management

Tra&tonal *ortfolo Anal$ss

Intuition and insight

Improper method of @uantifying ris and return

$ombination of securities was portfolio

)bjective of portfolio was to spread ris

&ttempt to spread ris by not putting all eggs into one baset

9ortfolio consisting of two stocs is less risy than one holding either stoc alone

Mo&ern *ortfolo Anal$ss

$onceived by =arry arowitz

#fficient diversification

"iversification involves combining securities with less than positive correlation in order

to reduce ris in the portfolio without sacrificing any of the portfolioHs return

%ower the correlation of securities in the portfolio, the less risy the portfolio is

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It is not enough to invest in man% securitiesG it is necessary to have the right securities

Tere are t4o teores of ,ortfolo #ana1e#ent un&er #o&ern ,ortfolo 2

9. MARKOWIT: T;EOR the intercept of a straight line or alpha coefficient

0 > slope of straight2line or beta coefficient

I > level of maret return inde!

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e> error, i.e. residual ris of the company.

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Tere are t4o 4a$s of ,ortfolo selecton n #o&ern ,ortfolo teor$2

9. Mar/o4t@ A,,roac

M 'is penalty K BarianceE'is tolerance

M tility K #!pected return F 'is penalty

M )ptimal portfolio for the investor would beone from the efficient frontier that ma!imizesutility

M tility indifference curves and types of investors

%. "ar,e A,,roac2

• "esirability of any stoc is directly related to its e!cess return2to2beta ratio

• If the stocs are raned by e!cess2return2to2beta ratio, the raning represents the

desirability of any stocHs inclusion in a portfolio

• (he number of stocs selected depends on a uni@ue cut2off rate such that all stocs

withhigher ratios of e!cess return2to2beta will be included and all stocs with lower ratio

e!cluded

• 8ollowing is the process of determining which stocs are to be included in the optimum

portfolio<

$alculate the e!cess return2to2beta ratio for each stoc under review and the ran

themfrom highest to lowest.

$alculate the cutoff pointG optimum portfolio consists of all the stocs for which

e!cessreturn2to2beta ratio is greater than the cut2off point

• $onsideration of new securities

&ny new security having e!cess returns2to beta ratio greater than the cut2off

value can be added to the portfolio

&ny new security having e!cess returns2 to beta ratio of less than the cut2off

value is not to be considered

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.Meto&olo1$

6.1 Sample

We have mainly concentrated on convenience sampling. I have taen ;3 securities of $*:

idcap on the basis of fundamental analysis. (he selected companies areI >an >an

;+ 9ower 8inance

$orporation

8inancial

;/ 9unj %lyod $onstruction;3 (itan Industries Watch

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6.2"ata collection

*r#ar$ &ata < 2 9rimary data are collected by my regularly tracing the stoc price of

various script selected.

"econ&ar$ &ata


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. Anal$ss

&s the basics of finance, the stoc picing is done with the help of the fundamental analysis

which includes economy analysis, industry analysis and company analysis. 8irst the economic

conditions of the country is analyzed which influences the stoc maret a lot then industryanalysis is done to analyze the strength and weaness of particular industry and then the

company analysis of the ;3 companies is done out of which ;7 companies are selected as a

financially sound companies for portfolio. I have given more emphasis on the company analysis

to forecast the management performance and financial strength and used the following ratios F

*9, ')&, ')#, 9E# ratio, #9S, "ebtE#@uity ratio, Interest coverage ratio, @uic ratio, current

ratio, dividend payout ratio. I have done the time series analysis of the ratios in which ratios of a

particular year is compared with the ratios of the previous years of the same company.

Dsclosure All te calculatons are n te A,,en&x II

*ow the companies which I have selected, are they really going to offer the investor a good

return or not, for that we should have to find out the ris and return profile of each security, how

they are moving as the change in $*:idcap inde!. So once it found then the investor must

evaluate such securities by Sharpe portfolio model, which will say what should be the size of

yourportfolio as well as weight of investment for particular securities. So 'is andreturn of such

securities are as follows2

'is free rate of returnK5O

aret returnK /5.+5O

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Table%. Rs/ an& Return of te "ecurtes selecte& for *ortfolo

STOC,

ALP

!A

BET

A E-

E.CES

S

RET/E

R0

ER1BE

TA

RS

2

3ARIAN

CE

SYS

RIS,

$NSYS

RIS, APOLLO

HOSPITALS 3278

=27

8

1


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(he construction of an optimal portfolio is simplified if a single number measuresthe desirability

of including a stoc in the optimal portfolio. (he desirability of any stocs directly related to its

e!cess return2to2beta ratio. If stocs are raned bye!cess return to beta Cfrom highest to lowestD,

the raning represents thedesirability of any stocHs inclusion in a portfolio. (he number of

stocs selecteddepends on uni@ue cut2off rate such that all stocs with higher ratio of QC' i F ' f DE

Ri will be included and all stocs with lower ration e!cluded.

"te, 9 Ran/n1 "ecurtes

Excess return to beta rato> (R R f )8

'i K #!pected return on stoc i

'f K 'eturn on a risless asset

>#(& K #!pected change in the rate of return on stoc i associated with a ;O change

in the maret return

$urrent 'is 8ree 'ate F 5O

Table'. Ran/n1 of te "ecurtes on te bass of Excess Return to 0eta

STOC,

ER1BE

TA

BET

A E- ER

$NSYS

RIS,

AUROBINDO 442


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LUPIN 3;2=4 =27;

3127

87

14278

77

9=42


34/65

IBI

;>*<

>*>;

@>;

>*>>=

= >**>>?=

@*=6

;<P$NJ

LLYO

@*6?6

; =*6

>*>;=

>@

>*>>=

>@ >*?;@ >*>>@6;

@*

>66

LUPIN 3;2=4 =27;

>*>=>

6*>>>

;@= >*@?? >*>>=6

@*=

;APOLLO

HOSPITAL

382*>>6

@?

>*>>>

>*@6 >*>>*>>

*>>>

>**>>


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Table-. We1ta1e of eac "ecurt$ n te *ortfolo

STOC, B1$R

ER1BE

TA D D/0

A$ROBINO

>*>>>@@? ;;**>>>6

>*>;?;6

*;?;6

TITAN

>*>>=

;; ;;*?

>*>>?

;<

>*>6;?


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19. "toc/ *ortfolo Co#,oston

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#.2 %isk and %eturn of Portfolio.

(here are seven securities in optimum portfolio. So following formulas are used tofind out ris

and return profile for the securities

Table. Rs/ an& Return of te *ortfolo

STOC@ E E BETA

BET

A UR *&UR

A$ROBINO

*?@

*

@

=2=94

;

12


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#.3Portfolio performance e&aluation5

1. 7ensen ratio> R , E(R ,)

E(R *)> R f ?,(R #2 R f )

Where,

' f K 5O ,' m K /5.+5O , ' p K 3;.;O, R p K ;.70

#C' 9DK /6.46

?ensen ratioK ;./;

?ensen ratio is positive so performance of portfolio is good on the ?ensen scale

2. Sharpe ratio2 It is the ratio of the reward or ris premium to variability of return as

measured by the standard deviation of return. (he formulae for calculating sharpe ratio<

"R> (R ,2R f )J,

S'K +.11 for portfolio

S'K /.34 for maret

Sharpe ratio of maret is greater than the portfolio so on the sharpe evaluation ratio portfolio is

not performing good.

). Fama3s net selectivit%K ' p F #C' pD

#C' 9DK ' f X pC' m2' f DEm

pK ;+.0, mK 5.54

#C' pDK 07.14

8amaHs net selectivityK 26.01

8amaHs net selectivity ratio is negative so performance of portfolio is not good on the 8amaHs net

selectivity scale.

Pa(e 4;


39/65

. n&n1s

;. )n the basis of fundamental analysis we selected ;7 companies out of ;3 companies

which are looing good for the long term investment

+. 9ortfolio which I have made is not optimum portfolio because ris2 return ratio of

portfolio is greater than some of the securities.

/. 9ortfolio beta is near about one. (his means my portfolio is as volatile as the maret.

3. I have evaluated the portfolio by three different ratios but only one ratios shows that the

portfolio will perform well while the other two ratios shows that the portfolio will not

perform well.

Pa(e 4


40/65

Reco##en&atons

Investors can also analyze the shareholding pattern of different companies. (he e!perts

in stoc maret spea that if foreign institutional investors and mutual funds hold high

percentage in total companyHs share holding, company has good potential for growth.

>ecause 8IIs and 8s have good research techni@ues to observe the companiesH

financial performance thatHs why they are willing to invest for particular companies in

India.

While preparing the portfolio, the investors should consider idcap companies also, if

they are providing good returns. (he portfolio of the investors should be diversified in

such a way that it consist the whole maret behavior i.e. it should have @ualities of

%argecap, Smallcap as well as idcap companies.

Pa(e 7=


41/65

L#tatons

>ecause of this limited period of only + months, I have chosen only S#B#* companies

which are giving good return in the portfolio. >ut in maret there are lots of securities

which offer more return as compared to the selected securities.

"ue to insufficient data given in the financial statement, some financial ratio could not

be found out.

Indian stoc maret is not stable. It eeps on fluctuating so ratio derived today may not

consider as useful tool of valuation tomorrow.

&s the study is depending on the information from the different sources, the reliability

of study is depending on the reliability of information2

Pa(e 71


42/65

Concluson

Since the stoc maret is very dynamic and volatile, it is important for investors to invest there

money in the portfolio. (his project tries to provide basic idea of different stoc maretinvestment instruments to investor and prepare an optimum portfolio for the investors to

minimize ris without sacrificing the return in the long term investment. We have done

fundamental analysis of the selected fourteen $*: idcap companies and then selected ten

companies for preparing portfolio. 9ortfolio is prepares by modern Sharpe approach.

(he findings suggest that portfolio which we have made is not optimum portfolio because ris2

return ratio of portfolio is greater than some of the securities. So, our portfolio is somewhat a

risy portfolio but when we have done the evaluation of the portfolio by the Sharpe ratio we

found that our portfolio will perform well in the maret. 9ortfolio beta is near about one. (his

means our portfolio is as volatile as the maret.

(he investors are suggested to analyze the shareholding pattern of the companies before

investing in any company. idcap companies are growth companies and having more reasonable

price than the large cap companiesH security. (here are many midcap companies which give good

returns so investors should also consider midcap companies in their portfolio with the large cap

companies.

Pa(e 73


43/65

References

'uthored (ook

;. "onald #. 8ischer and 'onald ?. ?ordan, Security &nalysis and 9ortfolio anagement

C9earson, 9rentice =all, +776D, pp. ;;/2+6+, pp. 04;2133

+. I 9andey, 8inancial anagement CBias 9ublishing =ouse 9vt. %td, +7;7D,

pp. 6;2;75, pp. 05+217;

)* (ook

;. >. =iriyappa , Investment anagement

+. >enjamin -raham, Security &nalysis

+e,sites

;. www.reliancemoney.com

+. www.bseindia.com

/. www.nseindia.com

3. www.moneycontrol.com

0. www.investopedia.com

1. www.wiipedia.com

Pa(e 74

http://www.reliancemoney.com/http://www.bseindia.com/http://www.nseindia.com/http://www.moneycontrol.com/http://www.investopedia.com/http://www.wikipedia.com/http://www.bseindia.com/http://www.nseindia.com/http://www.moneycontrol.com/http://www.investopedia.com/http://www.wikipedia.com/http://www.reliancemoney.com/


44/65

9+. Annexure

'nne-ure I

1.% Relance "ecurtes *ro&uct Ran1e

Pa(e 77

"emat &ccount

"erivatives

C8utures L

)ptionsD

$ommodity

>roing

#@uity >roing

(rading 9ortal

'eliance oney9roducts 'ange

oney (ransfer L%oans

8inancial 9lanning

Wealth anagement

Services

-old $oins

'etailing

*8)s

I9)s

-eneral Insurance

%ife Insurance

utual 8unds

8inancial 9roducts


45/65

'nne-ure 2

T&b7e?* R&tio A'&7ysis o) Se7eGted = CN. idG&4 Com4&'ies

$ear(Aurobn&o) %-2 %2 %2 %2 %29

$urrent 'atio ;.;1 ;.3 ;./0 ;.;+ ;.70Yuic 'atio +.4 /.51 +.64 +.66 +.+5

*et 9rofit arginCOD 3.56 ;;.43 ;+.3; 3.03 ;1.76

'#('* )* *#( W)'(=COD 4.11 +3.10 +/.5+ 6.4/ +4.31

'eturn )n $apital#mployedCOD 4.+; 6.10 ;;.41 ;/.0/ ;4.03

'eturn on &ssetsCOD +.44 ;43.;6 ++4.7+ +30.14 /3/.0;

#arnings 9erShare ;/.7+ 3+.63 03.75 +/.6; 63./3

"ividend 9erShare ;.0 +.0 /.+0 3.0 0

"ividend payoutratio

7.;;0+74

7.705++;

7.717761+

7.;55+71

7.70+6665

9E# '&(I)03.;056

6;+.1375

6/.;7+5;7

4/5.++11

5;/.613/5

3

"ebt #@uity 'atio ;.// +.;/ ;.33 ;.1 ;.7+

Interest $over +.4; /.66 1.13 1.33 ;+.34

8ace Balue 0 0 0 0 0

maret price 470.;0 03+.5 ;14.5 6;3 ;,/;4.37

boo value ;16.64 ;43.;6 ++4.7+ +30.14 /3/.0;

pEb ratio3.;3514

//.;;1;/

57.4/6;3;

6/.4+73/

5 /.5/0;;3

$ear(A#te/

auto) %-2 %2 %2 %2 %29

$urrent 'atio 1.7; 4.6/ /./3 ;.33 ;.13

Yuic 'atio 6.04 ;;.;0 /.5+ 0.4 1.71

*et 9rofit

arginCOD ;3.;; ;5.30 +7./6 ;6.36 ;+.41'#('* )* *#( W)'(=COD ;+.0 ;+./0 ;/.61 ;;.++ 0.65

'eturn )n $apital#mployedCOD 4.0+ 4.43 ;7./5 1./+ 3.14

'eturn on &ssetsCOD 0.0/ 0.+; ;+5.5+ ;10.76 ;57./0

Pa(e 78


46/65

#arnings 9erShare ;/./1 ;5.7/ ;5.0/ ;7.5 4.76

"ividend 9erShare ;.3 + / 7.0 7.0

"ividend payout

ratio 7.;7346

7.;;76+

1

7.;1;566

1

7.731+6

1

7.7470+;

6

9E# '&(I)+1.400+

3+/.0614

5/.1303/6

5;1.7000

1;6.03;17

5

"ebt #@uity 'atio ;.+3 ;.+3 7.40 ; ;./+

Interest $over 6./3 ;;./3 ;+.3+ 6.0+ 3.34

8ace Balue + + + + +

maret price /04.30 3+0.30 14.00 ;4/.3 ;/5.00

boo value ;75.;+ ;+6.;0 ;10.+0 ;57./0 ;57.4

pEb ratio/./7173

6/.+63+/

+7.375443

17.61;31

37.411437

0

$ear(E&uco#,) %-2 %2 %2 %2 %29

$urrent 'atio +.51 /.;5 /.4 ;.53 +.46

Yuic 'atio 0.+; 3.3 0./6 +.+6 /.15

*et 9rofitarginCOD +0.56 +0.03 +0.0; +0.53 +1.7+

'#('* )* *#( W)'(=COD ;0.3+ +3.65 +0.;0 /3./3 ;5./3

'eturn )n $apital#mployedCOD ++.03 ;6.5+ ;1.+5 ++.05 ++

'eturn on &ssetsCOD ;;.53 4;.4+ ;1;.36 ++;.1; ;+4.+5

#arnings 9erShare 5.4+ ;4.6+ 37.1+ 41.;+ +/./0

"ividend 9erShare ;.0 + +.0 +.0 +.40


7.;4+7;5

7.;;;174 7.71;031

7.7/+53/ 7.;;444/

9E# '&(I) ;76.1//+10.76+

; 06.;4;066./437;

0++.45577

6

"ebt #@uity 'atio 7.;; ;.76 ;./+ ;./1 7.36

Interest $over 33.55 /0.4; +0.3+ ;4.5; ;7.458ace Balue ;7 ;7 ;7 ;7 +

maret price 601 3407.30 +37/.00 4;/.00 0/+.;

boo value 01.06 4;.40 ;1;.0; ++;.1; ;+4.+5

pEb ratio;1.56/3

311.+75/

1;3.55;43

;/.+;653

13.;57031

5

$ear(*un Llo$&) %-2 %2 %2 %2 %29

Pa(e 79


47/65

$urrent 'atio ;.0/ ;.+5 +./+ +.+1 /./3

Yuic 'atio ;./4 ;.3+ ;.// ;.;0 ;.4/

*et 9rofitarginCOD +.03 +.4; 3.54 3.1; 3.54

'#('* )*

*#( W)'(=COD /.// 0.1; 6.;4 ;+./ ;7.+4

'eturn )n $apital#mployedCOD ;;.7/ ;7.++ ;;.6+ ;+.3+ 6.00

'eturn on &ssetsCOD ;.5 3+.73 46.04 50.64 ;74.4;

#arnings 9erShare 1.4/ +./1 4./ ;7.05 ;;.71

"ividend 9erShare ; 7./ 7.3 7./ 7.;0

dividend payout

ratio

7.;3505

5

7.;+4;;

6

7.703463

0

7.7+5/0

0

7.7;/01+

3

9E# '&(I);0+.646

++/0.73+

3+7.;3/5/

1;6./576

; ;7.;;/7+

"ebt #@uity 'atio 7./6 ;./5 7.04 ;.;/ 7.65

Interest $over /.30 /.54 3.7; /.00 +.01

8ace Balue ;7 + + + +

maret price ;7+6.00 003.4 ;34.70 +70.70 ;;;.50

boo value +7+.73 3+.73 46.04 50.64 ;74.4;

pEb ratio0.76044

/;/.;630

5;.535705

/+./50;/

3;.7/53/1

0

$ear(ICI) %-2 %2 %2 %2 %29

$urrent 'atio 5.11 5.03 4./0 1.46 5.10

Yuic 'atio 5.11 1.15 1.; 0.1; 4.14

*et 9rofitarginCOD 2;;.+1 3+.53 36.4 31./5 /6.60

'#('* )* *#( W)'(=COD 0.76 ;61.;+ 3;.;5 +/.75 +;.+5

'eturn )n $apital#mployedCOD /.56 ;3.11 ++.3+ ;/.35 4.0/

'eturn on &ssetsCOD 2;.01 7.+0 +6.34 /4.76 05.6

#arnings 9erShare 2+.45 ;/.15 ;+.;3 5.01 6.76

"ividend 9erShare 7 7 7 7.5 ;

dividend payoutratio 7 7 7

7.76/305 7.;;77;;

Pa(e 7:


48/65

9E# '&(I)2

3./064;1.465+3

1;.45//17

51./36+6

64.37/437

3

"ebt #@uity 'atio2

3.;6371;;.1566

3/.74347/

4+.05173

4+.63+76+

6

Interest $over 7.0/ +.46 /.03 +.+ ;.33

8ace Balue ;7 ;7 ;7 ;7 ;7maret price ;+.;+ 6/ +;.10 03./0 14./

boo value 21;./4 7.+0 +6.34 /4.76 05.6

pEb ratio2

7.;6436 /4+7.4/3130

3;.310/0

0;.;3+1;3

1

$ear(A,ollo

;os,tal) %-2 %2 %2 %2 %29

$urrent 'atio ;.36 ;.11 ;.4; ;.41 ;.1;

Yuic 'atio ;.// ;.35 ;.13 ;.13 ;.10

*et 9rofitarginCOD 5./4 ;;.;+ 5.6; 4.65 5.+

'#('* )* *#( W)'(=COD 6.+ ;/.+5 5./; 5.11 6.50

'eturn )n $apital#mployedCOD ;/.00 ;/./5 ;7.;4 ;7.6 ;;.04

'eturn on &ssetsCOD 1.;/ ;33.3; +75.3/ ++1.+6 +36.03

#arnings 9erShare ;;.6 ;6./5 ;4./3 ;6.1 +3.1

"ividend 9erShare 3.0 0 1 1.0 4


7./45;0;

7.+04665

7./317+75

7.//;1//

7.+5300+5

9E# '&(I)/1.7611

3+4.;7+1

5+1.7314;

///.33/5

5;5.31;/5

+

"ebt #@uity 'atio 7.;/ 7.;6 7.+0 7.// 7.30

Interest $over ;7.+4 5.+3 6.;+ ;+.++ 4.4;

8ace Balue ;7 ;7 ;7 ;7 ;7

maret price 3+6.00 0+0.+0 30;.10 100.0 303.;0

boo value ;+6./0 ;33.01 +75.35 ++1./ +36.03

pEb ratio/./+75/

0/.1//3/

6+.;11/63

6+.56106

4;.5;6635

4

$ear(ID0I) %-2 %2 %2 %2 %29

$urrent 'atio 7.;+ 7.;; 7.70 7.73 7.7/

Yuic 'atio 1.56 4.00 6.74 ;5.65 ;6.36

*et 9rofitarginCOD 5.34 5.43 4.53 1.4; 0.60

Pa(e 7;


49/65

'#('* )* *#( W)'(=COD 6.;+ ;7 ;7.4+ ;;.0/ ;+.0/

'eturn )n $apital#mployedCOD 4.46 4.04 5.74 5.00 5.1;

'eturn on &ssetsCOD 7.1/ 51.76 6/.5+ ;7+.4; ;;/.0

#arnings 9erShare 4.40 5.4 ;7.71 ;;.50 ;3.+/

"ividend 9erShare ;.0 ;.0 + +.0 /


7.;6/035

7.;4+3;3

7.;65574+ 7.+;764

7.+;75+++

9E# '&(I)6.530;1

; ;61.4+310+

;;7.400+

4;;.04410

/

"ebt #@uity 'atio 3.75 1.60 ;7.43 ;0.; +7./5

Interest $over8ace Balue ;7 ;7 ;7 ;7 ;7

maret price 41./ ;10./ 14.10 ;+4.30 ;13.40

boo value 55.73 51.76 6/.5+ ;7+.4; ;;/.0

pEb ratio7.51110

+;.6+775

37.4+;71;

1;.+3754

+;.30;03;

6

$ear(Cu##ns

In&a) %-2 %2 %2 %2 %29

$urrent 'atio ;.61 +.7/ ;.03 ;.5 ;.05

Yuic 'atio ;./1 ;./1 ;.;3 ;.+0 ;.70

*et 9rofitarginCOD ;;./4 ;;.53 ;;.30 ;+.1/ ;3.61

'#('* )* *#( W)'(=COD ++.0/ +3.1 +/./1 +5./1 +5.5+

'eturn )n $apital#mployedCOD /7.5/ /0.43 // /6.43 /6.7+

'eturn on &ssetsCOD ;0.+; 31.60 00.43 47.33 45.53

#arnings 9erShare 5.54 ;+.++ ;3.;5 +;.6 ++.3+

"ividend 9erShare 3 3 3.1 6 ;+


7.307605

7./+4//+

7./+33771

7.3;7606

7.0/0+/13

9E# '&(I)/;.+675

4//.6640

0;0.1+3;;

5;6.006/

1 /3.531;+

"ebt #@uity 'atio 7.7; 22 7.7/ 7.7+ 7.7;

Interest $over +47.5 +/1.63 017.4/ +;0.46 +65.14

Pa(e 7


50/65

8ace Balue + + + + +

maret price +44.00 3;0.30 ++;.00 3+5./0 45;.+0

boo value /6.1; 31.60 00.43 47.33 45.53

pEb ratio4.77471

65.53544

0 /.6434731.75;71

+ 6.676/;

$ear(Lu,n) %-2 %2 %2 %2 %29

$urrent 'atio ;.;0 ;.++ 7.64 7.5/ 7.61

Yuic 'atio +.;5 +.7+ ;.1/ ;.7+ ;.15

*et 9rofitarginCOD ;7.65 ;3.56 ;1./ ;3.76 ;4.0+

'#('* )* *#( W)'(=COD +5./4 /3 //.11 /7./; +0.13

'eturn )n $apital#mployedCOD ;4.1; ;5.46 +4.05 ++.73 ++.36

'eturn on &ssetsCOD 5.66 ;;7.04 ;17.31 ;11.71 +53.0;

#arnings 9erShare 30.0+ /4.1 03.7+ 07./0 4+.61

"ividend 9erShare 1.0 0 ;7 ;+.0 ;/.0


7.;3+463

7.;/+646

7.;50;;11

7.+35+1+

7.;507/+6

9E# '&(I);/.3304

3;1.50/4

+;;.3/43/

;+6.0655

;1.050;;0

;

"ebt #@uity 'atio ;.3+ 7.64 7.4/ 7.16 7./1Interest $over 6.70 5.55 ;5./; ;+./+ +4.+0

8ace Balue ;7 ;7 ;7 ;7 ;7

maret price 1;+.70 1//.4 1;4.50 ;,367./7 357.30

boo value ;17.3+ ;;7.04 ;17.31 ;11.71 +53.0;

pEb ratio/.5;0+6

40.4/;+;

;/.50736+

/5.64331

4;.15516+

5

$ear(Ex&e

In&ustr$) %-2 %2 %2 %2 %29

$urrent 'atio 7.66 7.63 ;.;3 ;.75 ;./6

Yuic 'atio 7.06 7./5 7.35 7.00 7.31 *et 9rofitarginCOD 1.36 4.3/ 4.6+ 4.00 ;+.4

'#('* )* *#( W)'(=COD ;6.65 +3.4+ +0.+6 +/./0 +3.0/

'eturn )n $apital#mployedCOD ++.+0 +4.;5 /7.00 /;.14 /1.;1

Pa(e 8=


51/65

'eturn on &ssetsCOD 5.0/ 5./4 ;+./4 ;0.++ +0.41

#arnings 9erShare ;/.3/ +.74 /.;/ /.00 1./+

"ividend 9er

Share / 7./0 7.3 7.1 ;"ividend payoutratio 7.++//5

7.;1675+

7.;+44600

7.;167;3

7.;05++45

9E# '&(I)+.40543

6/1./415

;;0./5//5

4 /+.036/+1./6+37

0

"ebt #@uity 'atio 7.04 7.0+ 7./0 7.+1 7.73

Interest $over 4.+1 6.75 ;7.4+ ;3.;; ;;4.;;

8ace Balue ;7 ; ; ; ;

maret price /4.70 40./ 35.;0 ;;0.00 ;11.5

boo value 14.++ 5./4 ;+./4 ;0.++ +0.41

pEb ratio

7.00;;4

0

5.6613;

1

/.56+35;

5

4.06;65

3

1.340;00

/

$ear(In&ra,ast

a Gas) %-2 %2 %2 %2 %29

$urrent 'atio 7.5 7.51 ;.; ;.; 7.6;

Yuic 'atio 7.4/ 7.5 ;.70 ;.70 7.5;

*et 9rofitarginCOD ;6.50 +;.51 +/.40 ;6.0 ;6.1

'#('* )* *#( W)'(=

COD +4.5; +6./; /7.75 +3.61 +1.;'eturn )n $apital#mployedCOD 33.43 30.01

31.0;/+7;

/6.+;56/

/6./705//

'eturn on &ssetsCOD ;0.53 //./6 3;.;5 35.5+ 05.61

#arnings 9erShare 4.05 6.50 ;+.31 ;+./+ ;0./6

"ividend 9erShare +.0 / 3 3 3.0

dividend payoutratio

7./+65;0

7./73016

7./+;7+4/

7./+3140

7.+6+/644

9E# '&(I) ;0.+67+3 ;4.00// 5.;43;04/ ;1.;/+/; ++.+47600

"ebt #@uity 'atio 7 7 7 7 7

Interest $over 45.+/+3.4/51

5/;.1;6;7

3+3.+/3;

5

8ace Balue ;7 ;7 ;7 ;7 ;7

maret price ;;0.6 ;4+.6 ;7;.50 ;65.40 /3+.40

boo value +4.70 //./6 3;.;5 35.5+ 05.61

Pa(e 81


52/65

pEb ratio3.+5310

50.;45;6

4 +.34/+553.74;74

40.5;/+1/

+

$ear(LIC

;ousn1

nance) %-2 %2 %2 %2 %29$urrent 'atio +7.11 ;3.65 ;1.60 ;+.75 ;/./+

Yuic 'atio +0.4/ +7./; ;6.7+ ;1.+1 ;5.30

*et 9rofitarginCOD ;1.0+ ;4.5+ ;4.5+ ;5./4 ;6.70

'#('* )* *#( W)'(=COD ;0.0 ;5.75 +;.;/ +/.46 ;6.03

'eturn )n $apital#mployedCOD 4./3 5.70 6.75 6.55 5.4

'eturn on &ssets

COD ;.// ;5;.44 +;0.11 +1/.73 /01.50#arnings 9erShare +3.01 /+.54 30.06 1+.06 16.40

"ividend 9erShare 1 5 ;7 ;/ ;0

dividend payoutratio 7.+33/

7.+3//5/

7.+;6/31/

7.+7447;

7.+;070/5

9E# '&(I)1.04/16

4;;.1+77

+0.7047/7

;;+.5/5/

;+.57/053

+

"ebt #@uity 'atio ;7.+3 ;7.05 ;;.;; ;;./5 ;7.+1

Interest $over ;./ ;./; ;./0 ;./1 ;./5

8ace Balue ;7 ;7 ;7 ;7 ;7

maret price ;1;.30 /5;.60 +/7.00 57/.00 ;60.00

boo value ;05.3+ ;5;.44 +;0.11 +1/.73 /01.50

pEb ratio;.7;6;+

1+.;7;+5

+;.71673/

6/.70350

67.034656

3

$ear(*o4er

nance) %-2 %2 %2 %2 %29

$urrent 'atio 6./; 5./; 5.5; ;/.0; ++.1;

Yuic 'atio +7.15 ;3.;+ ;3.14 ;5.4 ++.1;

*et 9rofitarginCOD /;.73 +0.44 +/.60 +6.6; +6.;5

'#('* )* *#( W)'(=COD ;;.6/ ;7.7/ ;;.1 ;0.51 ;1.6+

'eturn )n $apital#mployedCOD 5.41 5.14 6.16 6.64 6.41

'eturn on &ssets +.13 50.1 67.05 ;75.;5 ;+;./+

Pa(e 83


53/65

COD

#arnings 9erShare 6.3+ 5.06 ;7.0; ;4.;1 +7.03

"ividend 9erShare /.0; +.3; /.0 3 3.0


7./4+1;;

7.+57006

7.///7;1+ 7.+//;

7.+;67534

9E# '&(I)/7.0054

6;+.1031;

0;0.+;01

+;0.7541/

3

"ebt #@uity 'atio /./; /.3+ /.6; 3.+ 3.5+

Interest $over ;.4+ ;.1/ ;.1 ;.04 ;.1;

8ace Balue ;7 ;7 ;7 ;7 ;7

maret price +1+.0 ;// +1;.; /76.6

boo value 45.65 50.1 67.05 ;75.;5 ;+;./+

pEb ratio/.71105

6;.315/;0

/ +.3;/04+.00337;

1

$ear(Ttan

In&ustr$) %-2 %2 %2 %2 %29

$urrent 'atio ;.75 ;.73 ;.;+ ;./; ;./6

Yuic 'atio 7.4 7.3+ 7.+4 7.+1 7./0

*et 9rofitarginCOD 3.65 3.3 3.6+ 3.75 0./3

'#('* )* *#( W)'(=COD /;.10 +5.5; /3.30 +5.5/ /3.00

'eturn )n $apital#mployedCOD +4.74 +6.+ /3.;6 3+.15 35.14

'eturn on &ssetsCOD 5.+1 4+.5+ 65.+1 ;+3.;5 ;1/.;6

#arnings 9erShare ;1.44 +;.;1 //.50 /0.5; 01./6

"ividend 9erShare / 0 5 ;7 ;0


7.;4556;

7.+/1+60

7.+/1//15

7.+46+0+

7.+117731

9E# '&(I) 0;.++03 4/.5/+4 +4./6+6;

/6.4;76

4 1/.513;1"ebt #@uity 'atio ;.1 7.40 7.06 7./+ 7.;

Interest $over 3.05 1.4+ ;;.45 ;7.03 ;0.+1

8ace Balue ;7 ;7 ;7 ;7 ;7

maret price 506.70 ;01+./ 6+4.+0 ;3++.70 /17;./

boo value 30.00 4/.44 65.+1 ;+3.;5 ;1/.;6

pEb ratio ;5.5060+;.;446

66.3/1165

1;;.30;0

+++.715;3

;

Pa(e 84


54/65

'nne-ure 3

Table. Rs/ an& Return of In&!&ual "ecurtes

A**OLO ;O"*ITAL2

Mont

A*OLLO

;O"*ITAL

AD3"TE

D CNB MIDCA*

COM*AN

< RET CNB RET

&pr276 /53.5 /53.5 /517.5

ay276 0;/.;0 0;/.;0 0/0/.00 +5.45 /+.16

?un276 04+./0 04+./0 03+4.+0 ;7.6+ ;./4

?ul276 00/.00 00/.00 0607.+ 2/./3 6.+7

&ug276 0+0 0+0 1;;4.6 20./7 +.45Sep276 035.+0 035.+0 14;/./ 3.// 6.+6

)ct276 0/3.1 0/3.1 1046.5 2+.0+ 2+.7;

*ov276 0+5.30 0+5.30 4;36.+ 2;.;1 5./7

"ec276 100.0 100.0 4;/+.5 +;.00 27.+/

?an2;7 153.;0 153.;0 4+7;.50 3.+5 7.61

8eb2;7 154 154 4;14.+0 7.3+ 27.35

ar2;7 4+6.6 4+6.6 4473.6 1.71 4.+/

&pr2;7 45+.00 45+.00 571;.; 1.64 3.0+

ay2;7 43+.60 43+.60 4400.60 20.;6 2/.51

?un2;7 40;.30 40;.30 5;/7.50 ;.;3 3.4+?ul2;7 45/.1 45/.1 53;0./ 3.;6 /.33

&ug2;7 570.6 570.6 5146.50 +.5; /.;7

Sep2;7 300.10 6;;./ 6;13.+0 ;+.+6 0.3/

)ct2;7 0+;.6 ;73/.5 6/17.4 ;/.05 +.;+

*ov2;7 346.;0 605./ 5674.0 25.00 23.61

"ec2;7 303.;0 675./ 5504.+ 20./1 27.04

?an2;; 367.3 657.5 4+66.0 4.15 2;6./3

8eb2;; 313.5 6+6.1 4/47.; 20./1 7.61

ar2;; 34;.+ 63+.3 5737.;0 ;./4 5.47

AG '. '.9

"TOCK "*LIT ON

"E*TEM0ER %9 IN T;E

RATIO O 95- "TD . .

ARIANCE %.+ .-

R" .%

INTERCE*T(AL*;

A) %.+-

"LO*E(0ETA) .+-

Pa(e 87


55/65

CORIANCE '+.%

0ETA(COAR8MA

R) .+'

A3RO0INDO *;ARMA2

Mont

A3RO0IN

DO

AD3"T

ED CNB MIDCA*

COM*AN

< RET

CNB

RET

&pr276 ++;.1 ++;.1 /517.5

ay276 /54.00 /54.00 0/0/.00 00.67 /+.16

?un276 310.0 310.0 03+4.+0 ;5.// ;./4

?ul276 056.10 056.10 0607.+ +/.13 6.+7

&ug276 473./ 473./ 1;;4.6 ;4.44 +.45

Sep276 446.; 446.; 14;/./ ;7.76 6.+6

)ct276 436.+0 436.+0 1046.5 2/.6; 2+.7;

*ov276 500.6 500.6 4;36.+ ;/./; 5./7

"ec276 6;3 6;3 4;/+.5 1.04 27.+/

?an2;7 530.10 530.10 4+7;.50 24.44 7.61

8eb2;7 6;3 6;3 4;14.+0 4.44 27.35

ar2;7 605.5 605.5 4473.6 3.46 4.+/

&pr2;7 60;.60 60;.60 571;.; 27.4+ 3.0+

ay2;7 503.1 503.1 4400.60 2;7.46 2/.51

?un2;7 6;7.00 6;7.00 5;/7.50 1./3 3.4+

?ul2;7 64/.5 64/.5 53;0./ 1.4+ /.33

&ug2;7 ;7/6.1 ;7/6.1 5146.50 1.03 /.;7

Sep2;7 ;737.3 ;737.3 6;13.+0 7.75 0.3/

)ct2;7 ;;46.10 ;;46.10 6/17.4 ;+.01 +.;+

*ov2;7 ;+36.;0 ;+36.;0 5674.0 0.4+ 23.61"ec2;7 ;/;4.3 ;/;4.3 5504.+ 0./+ 27.04

?an2;; ;;51.50 ;;51.50 4+66.0 2;7.33 2;6./3

8eb2;; ;47 507 4/47.; 2//./5 7.61

ar2;; ;60.6 646.0 5737.;0 ;3.;5 5.47

AG .+ '.9

"TOCK "*LIT ON E0 %99 IN

T;E "TD 9.9 .

RATIO O 95% ARIANCE %9. .-

R" .-%

INTERCE*T(AL*;

A) %.%

"LO*E(0ETA) 9.'%

CORIANCE .99

0ETA(COAR8MA

R) 9.%

Pa(e 88


56/65

C3MMIN" INDIA2

MontC3MMIN"

AD3"TED CNB MIDCA*

COM*AN< RET CNB RET

&pr276 +7+./0 +7+./0 /517.5

ay276 +41.4 +41.4 0/0/.00 /;.+6 /+.16

?un276 +44.70 +44.70 03+4.+0 7.;/ ;./4

?ul276 +40.+ +40.+ 0607.+ 27.14 6.+7

&ug276 //4.1 //4.1 1;;4.6 +7.33 +.45

Sep276 /36./ /36./ 14;/./ /.3; 6.+6

)ct276 /40.+0 /40.+0 1046.5 4.;4 2+.7;

*ov276 /67.70 /67.70 4;36.+ /.54 5./7

"ec276 3+5./0 3+5./0 4;/+.5 6./4 27.+/?an2;7 335.4 335.4 4+7;.50 3.13 7.61

8eb2;7 300 300 4;14.+0 ;./6 27.35

ar2;7 0;/.1 0;/.1 4473.6 ;+.;; 4.+/

&pr2;7 016.40 016.40 571;.; ;7./5 3.0+

ay2;7 017.+0 017.+0 4400.60 2;.15 2/.51

?un2;7 061.70 061.70 5;/7.50 1.;6 3.4+

?ul2;7 1/0.4 1/0.4 53;0./ 1.33 /.33

&ug2;7 4/4./ 4/4./ 5146.50 ;3.5/ /.;7

Sep2;7 4/5.6 4/5.6 6;13.+0 7.++ 0.3/

)ct2;7 46/.; 46/.; 6/17.4 4.75 +.;+ *ov2;7 464.; 464.; 5674.0 7.07 23.61

"ec2;7 45;.+0 45;.+0 5504.+ 2+.7; 27.04

?an2;; 4+4.; 4+4.; 4+66.0 24.;5 2;6./3

8eb2;; 107.70 107.70 4/47.; 2;;.+7 7.61

ar2;; 153.00 153.00 5737.;0 0.;4 5.47

AG -.' '.9

"TD .' .

ARIANCE .9 .-

R" .++

INTERCE*T(AL*;

A) '.9

"LO*E(0ETA) .

CORIANCE -.-+

0ETA(COAR8MA

R) .+

Pa(e 89


57/65

ED3COM* "OL3TION2

MontED3COM* AD3"TED CNB MIDCA*

COM*AN< RET CNB RET

&pr276 +343.+0 +343.+0 /517.5

ay276 +5+/.00 +5+/.00 0/0/.00 ;/.+; /+.16

?un276 /453.40 /453.40 03+4.+0 +6./7 ;./4

?ul276 3;74.0 3;74.0 0607.+ 5.;5 6.+7

&ug276 3;;4.00 3;;4.00 1;;4.6 7.+3 +.45

Sep276 316/ 316/ 14;/./ ;/.75 6.+6

)ct276 577.1 377/ 1046.5 2;0.67 2+.7;

*ov276 405.60 /463.40 4;36.+ 20./3 5./7

"ec276 4;/.00 /014.40 4;/+.5 21.;4 27.+/?an2;7 477.60 /073.40 4+7;.50 2;.45 7.61

8eb2;7 147.;0 //07.40 4;14.+0 23.36 27.35

ar2;7 434.50 /4/6.+0 4473.6 ;7.64 4.+/

&pr2;7 15;.+0 /371.+0 571;.; 26.// 3.0+

ay2;7 0/0./ +141.0 4400.60 2+3.;; 2/.51

?un2;7 0/+./0 +11;.40 5;/7.50 27.00 3.4+

?ul2;7 174.4 /7/5.0 53;0./ ;/.+3 /.33

&ug2;7 033./0 +4+;.40 5146.50 2;;.7; /.;7

Sep2;7 176.0 /734.0 6;13.+0 ;;./7 0.3/

)ct2;7 007./ +40;.0 6/17.4 2;7.++ +.;+ *ov2;7 01/.3 +5;4 5674.0 +./0 23.61

"ec2;7 0/+.; +117.0 5504.+ 20.4+ 27.04

?an2;; 34/.00 +/14.40 4+66.0 2;;.11 2;6./3

8eb2;; 314.1 +//5 4/47.; 2;.+1 7.61

ar2;; 3+7.0 +;7+.0 5737.;0 2;7.1+ 5.47

AG 2.9 '.9

"TOCK "*LIT ON OCTO0ER %

IN T;E "TD 9%. .

RATIO O 95% ARIANCE 9+-.' .-

R" .9

INTERCE*T(AL*;A) 2%.-

"LO*E(0ETA) .-

CORIANCE ++.+

0ETA(COAR8MA

R) .-

Pa(e 8:


58/65

Pa(e 8;


59/65

EBIDE IND3"TRIE"2

Mont

EBID

E IND

EBIDE

IND CNB MIDCA*

COM*AN<

RET CNB RET

&pr276 0+./ 0+./ /517.5

ay276 47.4 47.4 0/0/.00 /7.;3 /+.16?un276 16./ 16./ 03+4.+0 2+.77 ;./4

?ul276 50.5 50.5 0607.+ +;./1 6.+7

&ug276 60.4 60.4 1;;4.6 ;7.6+ +.45

Sep276 6+ 6+ 14;/./ 2/.63 6.+6

)ct276 65.30 65.30 1046.5 1.45 2+.7;

*ov276 ;75.70 ;75.70 4;36.+ 6./7 5./7

"ec276 ;;0.00 ;;0.00 4;/+.5 1.4; 27.+/

?an2;7 ;;;.00 ;;;.00 4+7;.50 2/.0+ 7.61

8eb2;7 ;74./0 ;74./0 4;14.+0 2/.53 27.35

ar2;7 ;+3.; ;+3.; 4473.6 ;3.07 4.+/

&pr2;7 ;++./ ;++./ 571;.; 2;.31 3.0+

ay2;7 ;;6.;0 ;;6.;0 4400.60 2+.1; 2/.51

?un2;7 ;/;.10 ;/;.10 5;/7.50 6.65 3.4+

?ul2;7 ;30./ ;30./ 53;0./ 6.54 /.33

&ug2;7 ;34.6 ;34.6 5146.50 ;.44 /.;7

Sep2;7 ;1/.; ;1/.; 6;13.+0 6.45 0.3/

)ct2;7 ;03.10 ;03.10 6/17.4 20./+ +.;+

*ov2;7 ;17.60 ;17.60 5674.0 /.66 23.61

"ec2;7 ;11.5 ;11.5 5504.+ /.04 27.04

?an2;; ;+5.3 ;+5.3 4+66.0 2+1.;1 2;6./3

8eb2;; ;/1.+0 ;/1.+0 4/47.; 0.6/ 7.61

ar2;; ;3+.40 ;3+.40 5737.;0 3.11 5.47

AG +.' '.9

"TD 9.+ .

ARIANCE 99.+% .-

R" .'

INTERCE*T(AL*;A

) 9.%

"LO*E(0ETA) .

CORIANCE '.

0ETA(COAR8MAR) .'

Pa(e 8


60/65

ID0I2

Mont ID0I

AD3"TE

D CNB MIDCA*

COM*AN

< RET

CNB

RET

&pr276 1/.1 1/.1 /517.5

ay276 6/.+ 6/.+ 0/0/.00 /5.+; /+.16?un276 ;76.6 ;76.6 03+4.+0 ;1.35 ;./4

?ul276 ;70.4 ;70.4 0607.+ 2/.67 6.+7

&ug276 ;7/.50 ;7/.50 1;;4.6 2;.44 +.45

Sep276 ;+4.+ ;+4.+ 14;/./ +7.+5 6.+6

)ct276 ;;/.10 ;;/.10 1046.5 2;;.+1 2+.7;

*ov276 ;+;.5 ;+;.5 4;36.+ 1.6/ 5./7

"ec276 ;+4.30 ;+4.30 4;/+.5 3.0/ 27.+/

?an2;7 ;+;.; ;+;.; 4+7;.50 20.;; 7.61

8eb2;7 ;;5.60 ;;5.60 4;14.+0 2;.46 27.35

ar2;7 ;;0 ;;0 4473.6 2/./5 4.+/

&pr2;7 ;+0.60 ;+0.60 571;.; 6.;7 3.0+

ay2;7 ;;/.4 ;;/.4 4400.60 2;7.+/ 2/.51

?un2;7 ;;6.;0 ;;6.;0 5;/7.50 3.15 3.4+

?ul2;7 ;;6.70 ;;6.70 53;0./ 27.75 /.33

&ug2;7 ;+;.30 ;+;.30 5146.50 +.77 /.;7

Sep2;7 ;0+.3 ;0+.3 6;13.+0 ++.47 0.3/

)ct2;7 ;57.10 ;57.10 6/17.4 ;4.7; +.;+

*ov2;7 ;1/./0 ;1/./0 5674.0 2;7.74 23.61

"ec2;7 ;13.40 ;13.40 5504.+ 7.50 27.04

?an2;; ;3;.3 ;3;.3 4+66.0 2;0.+5 2;6./3

8eb2;; ;/;./0 ;/;./0 4/47.; 24./4 7.61

ar2;; ;3+.30 ;3+.30 5737.;0 5.;; 5.47

AG '.-9 '.9

"TD 9%. .

ARIANCE 9'.9% .-

R" .-

INTERCE*T(AL*;

A) .%

"LO*E(0ETA) 9.

CORIANCE %.9+

0ETA(COAR8MAR) 9.+

Pa(e 9=


61/65

LIC ;O3"ING INANCE2

Mont

LIC

;O3"IN

G

AD3"TE

D CNB MIDCA*

COM*AN

< RET

CNB

RET

&pr276 /13.70 /13.70 /517.5

ay276 0+5.10 0+5.10 0/0/.00 /4./7 /+.16

?un276 1;5.4 1;5.4 03+4.+0 ;0.4/ ;./4

?ul276 1;0.0 1;0.0 0607.+ 27.0+ 6.+7

&ug276 131.00 131.00 1;;4.6 3.6+ +.45

Sep276 44;.0 44;.0 14;/./ ;4.14 6.+6

)ct276 43+.00 43+.00 1046.5 2/.5+ 2+.7;

*ov276 517.3 517.3 4;36.+ ;3.4/ 5./7

"ec276 57/.00 57/.00 4;/+.5 21.53 27.+/

?an2;7 44/.+0 44/.+0 4+7;.50 2/.53 7.61

8eb2;7 40+.6 40+.6 4;14.+0 2+.14 27.35

ar2;7 54+ 54+ 4473.6 ;3.16 4.+/

&pr2;7 605.; 605.; 571;.; 6.3+ 3.0+

ay2;7 6/5.50 6/5.50 4400.60 2+.7/ 2/.51

?un2;7 664.0 664.0 5;/7.50 1.71 3.4+

?ul2;7 ;;/1.30 ;;/1.30 53;0./ ;/.73 /.33

&ug2;7 ;+7+./ ;+7+./ 5146.50 0.1/ /.;7

Sep2;7 ;3/1.50 ;3/1.50 6;13.+0 ;4.5+ 0.3/

)ct2;7 ;//5.6 ;//5.6 6/17.4 24.71 +.;+

*ov2;7 665.50 665.50 5674.0 2+6./7 23.61

"ec2;7 ;60.00 644.40 5504.+ 2+.;3 27.04

?an2;; ;57.;0 677.40 4+66.0 25.+7 2;6./38eb2;; ;55.; 637.0 4/47.; 3./+ 7.61

ar2;; ++0.30 ;;+4.+0 5737.;0 ;5.;; 5.47

AG +.9 '.9

"TOCK "*LIT ON DECEM0ER

%9 IN "TD 9'.'' .

T;E RATIO O

95% ARIANCE 9.% .-

R" .-

INTERCE*T(AL*;

A) 9.%

"LO*E(0ETA) 9.9+

CORIANCE .+

0ETA(COAR8MA

R) 9.

Pa(e 91


62/65

Mont L3*IN

L3*IN2

AD3"TED CNB MIDCA*

COM*AN<

RET

CNB

RET

&pr276 4;4.70 4;4.70 /517.5

ay276 5//.50 5//.50 0/0/.00 ;0.76 /+.16

?un276 5;4.; 5;4.; 03+4.+0 2+.7/ ;./4

?ul276 630.6 630.6 0607.+ ;3.13 6.+7

&ug276 ;7;0.;0 ;7;0.;0 1;;4.6 4.74 +.45

Sep276 ;;/1.50 ;;/1.50 14;/./ ;;./+ 6.+6

)ct276 ;++1.+0 ;++1.+0 1046.5 4.04 2+.7;

*ov276 ;/43.30 ;/43.30 4;36.+ ;;.3; 5./7

"ec276 ;367./ ;367./ 4;/+.5 5.76 27.+/

?an2;7 ;3+7.30 ;3+7.30 4+7;.50 23.57 7.618eb2;7 ;364.10 ;364.10 4;14.+0 0.+6 27.35

ar2;7 ;1+3.00 ;1+3.00 4473.6 5.;/ 4.+/

&pr2;7 ;474.40 ;474.40 571;.; 3.66 3.0+

ay2;7 ;51; ;51; 4400.60 5.06 2/.51

?un2;7 ;611.; ;611.; 5;/7.50 0.36 3.4+

?ul2;7 ;545.1 ;545.1 53;0./ 23.00 /.33

&ug2;7 /01.70 ;457.+0 5146.50 20./5 /.;7

Sep2;7 /55.00 ;63+.40 6;13.+0 5.43 0.3/

)ct2;7 3/5.+ +;6; 6/17.4 ;+.7/ +.;+

*ov2;7 076.50 +036.+0 5674.0 ;0.;3 23.61"ec2;7 357.30 +37+.+0 5504.+ 20.63 27.04

?an2;; 3++.1 +;;/ 4+66.0 2;+.5/ 2;6./3

8eb2;; /5;.40 ;675.40 4/47.; 2;7.;4 7.61

ar2;; 3;0./0 +741.40 5737.;0 5.33 5.47

AG +.% '.9

"TOCK "*LIT ON A3G3"T IN "TD .% .

T;E RATIO O

95% ARIANCE .+- .-

R" .%

INTERCE*T(AL*;A) '.

"LO*E(0ETA) .+

CORIANCE '.'-

0ETA(COAR8MAR) .+

Pa(e 93


63/65

*3N LL


64/65

TITAN2

Mont

TITA

N

AD3"T

ED CNB MIDCA*

COM*AN

< RETCNB

RET

&pr276 435.3 435.3 /517.5

ay276;74/.

60 ;74/.60 0/0/.00 /1.;+ /+.16

?un276 ;;4/.6 ;;4/.6 03+4.+0 5.67 ;./4

?ul276;++1.

40 ;++1.40 0607.+ 3.37 6.+7

&ug276;++6.

60 ;++6.60 1;;4.6 7.+1 +.45

Sep276;+36.

; ;+36.; 14;/./ ;.03 6.+6

)ct276 ;+00.3 ;+00.3 1046.5 7.07 2+.7;

*ov276;//;.

+0 ;//;.+0 4;36.+ 0.54 5./7

"ec276;3++.

70 ;3++.70 4;/+.5 1.17 27.+/

?an2;7;365.

5 ;365.5 4+7;.50 0.+1 7.61

8eb2;7;435.

60 ;435.60 4;14.+0 ;0.33 27.35

ar2;7

;537.

6 ;537.6 4473.6 0.;+ 4.+/

&pr2;7+;+6.

30 +;+6.30 571;.; ;3.01 3.0+

ay2;7+++0.

; +++0.; 4400.60 3./6 2/.51

?un2;7+/10.

00 +/10.00 5;/7.50 1.;+ 3.4+

?ul2;7+57+.

3 +57+.3 53;0./ ;1.60 /.33

&ug2;7+6/+.

40 +6/+.40 5146.50 3.00 /.;7

Sep2;7/+46.

70 /+46.70 6;13.+0 ;;.;1 0.3/

)ct2;7/00/.

30 /00/.30 6/17.4 5.73 +.;+

*ov2;7/165.

10 /165.10 5674.0 3.77 23.61

"ec2;7/17;.

/ /17;./ 5504.+ 2+.14 27.04

Pa(e 97


65/65

?an2;;/06/.

70 /06/.70 4+66.0 27.+/ 2;6./3

8eb2;;//+5.

1 //+5.1 4/47.; 24.13 7.61

ar2;;

/5;7.

50 /5;7.50 5737.;0 ;/.0/ 5.47AG . '.9

"TD . .

ARIANCE -.% .-

R" .+-

INTERCE*T(AL*;

A) +.

"LO*E(0ETA) .

CORIANCE +.'%

0ETA(COAR8M

AR) .'

Documents

Ration Analyses BBA PROJECT