A PROJECT REPORT

ON
A STUYDY ON EQUITY ANALYSIS IN AUTOMOBILE INDUSTRY WITH
REFERENCE TO SHAREKHAN

SUBMITTED BY
VARSHA SINGH
M.COM
(2017-18)
UNDER THE GUIDANCE OF
PROF. VIVEK GUPTA

VIDYALANKAR SCHOOL OF INFORMATION

TECHNOLOGY
AFFILIATED TO UNIVERSITY OF MUMBAI
WADALA (E)
MUMBAI 400037.
VIDYALANKAR SCHOOL OF INFORMATION
TECHNOLOGY
 CERTIFICATE

This is to certify that VARSHA SINGH of Vidyalankar School of

Information Technology studying in M.Com{Banking & Finance}
bearing Roll No. 15310A1007 and Examination Seat No. _____
has successfully completed the project entitled A STUYDY ON EQUITY
ANALYSIS IN AUTOMOBILE INDUSTRY WITH REFERENCE TO

SHAREKHAN part of internal assignments under my supervision

during the academic year 2017 2018.

---------------------------- -----------------------------
Prof. POONAM MIRWANI Dr. ROHINI
(Co-ordinator) Principal

---------------------------------
----------------------------
External Examiner Prof.

College Seal
 DECLARATION

I MISS. VARSHA SINGH student of M.COM BANKING

AND FINANCE (2017-18) of Vidyalankar School of Information
Technology Mumbai 400037 do hereby declare that I have
completed project work titled A STUYDY ON EQUITY ANALYSIS IN

AUTOMOBILE INDUSTRY WITH REFERENCE TO SHAREKHAN as a part

of my academic fulfillment.

The information contained in this project work is true and

original to the best of my knowledge and belief.

---------------------------------
DATE: SIGNATURE OF STUDENT
(VARSHA SINGH)
 ACKNOWLEDGEMENT

I have a great pleasure in presenting my project on A STUYDY ON

EQUITY ANALYSIS IN AUTOMOBILE INDUSTRY WITH REFERENCE TO

SHAREKHAN I sincerely thank with deep sense of gratitude to

PROF. , my guide for him kind co-ordination for the
fulfillment of this project.

I would also like to thank our seniors, librarians who sincerely

helped me getting this information and, last but not the least my
college for the big reason that I am here in front of you in
presenting this project.

SIGNATURE OF STUDENT

(VARSHA SINGH)
Introduction of the study:

Over the decades, investors have been presented with a number of products and a good
equity portfolio can have a combination of all of them. When one thinks of aggressive
investment option, equity is bound to top the list for many. While some think that equity
allows them to earn quick returns in a short period of time, the reward is always higher
over the long term. No doubt, markets do offer opportunities of doubling the capital at
regular intervals as was the case in 2008-09, but it was a not a planned exercise for many.

The Indian Automobile industry is a success story providing employment for millions
and ensuring that essential drugs at affordable prices are available to the vast population
of this sub-continent.

The Indian Automobile Industry today is in the front rank of Indias science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. It ranks very high in the third world, in terms of technology, quality and
range of manufactured.

The present study Performance analysis of equities in Automobile industry. Brings into
surface the risk and return involved and the options for the various investments for the
efficient management of the portfolio.

RESEARCH METHODOLOGY

Need for the study:

Companies need to invest in diverse areas in order to minimize their risk and get
optimum returns. However, a company cannot blindly invest in everything in order to
reduce its risk since it involves huge money and effort. So, it is important for a company
to properly decide its portfolio and invest carefully. The present study gives an insight
into this issue by analyzing the Equity Share Prices of the Automobile industry.

Research problem:
Equity shares belong to the high risk and high return category where the returns depend
much on investors luck. Out of the total Automobile companies in India, only 25% are
listed companies. Automobile industry requires heavy investments for research and
development compared to any other industry. Inspite of this heavy investment, there is no
guarantee for expected outcome. When such is the situation, the investor is highly
affected. Whatever is the risk he beared does not become fruitful. .

The present study attempts to analyze the risk and return in the Automobile industry in
the current scenario and attempts to give a well understanding to the investors regarding
the investment in this industry.

Objectives of the Study

To observe the rate of fluctuations in Equity share prices of Automobile industry.

To determine the amount of risk & returns involved in the securities of

Automobile industry.

To observe the degree of volatility in Automobile industry.

To understand the price fluctuations & the factors influencing the fluctuations of
Automobile industry.

Scope of the Study

The study covers all the information related to the Equities it also covers the risk and
returns in Automobile industry. The study is confined only one Sector i.e Automobile
industry and the entire study is based upon their Stock prices for a period of last five
years.

Method of data collection:

The data that is used in this project is of secondary nature. The data is to be collected
from secondary sources such as Company reports and Annual records and various
websites, journals, newspapers, books, etc. the analysis used in this project has been done
using selective technical tools. In Equity market, risk is analyzed and trading decisions
are taken on basis of technical analysis. It is collecting share prices of the company for a
period of two years.

Source of data

Secondary data have been collected from the respective unit though manuals and annual
reports of the company.

Further the data collected from the historical/existing sources of data as databases,
journals books, articles, research reports, websites and etc.

Period of the study

The study is done for a period of 60 days in the organization where the necessary
guidance and the information required for the project is provided.

Data analysis tools:

Beta, Risk and return analysis, Equity Share Values are used to analyze the risk and return
category of Automobile industry.

Limitations of the Study

The present project work has been undertaken to provide information regarding risk
return on equity share prices of Automobile industry. The following are the limitations of
the study.

The study is based on the secondary data which is available from various.

The study is limited to only one sector.

The time taken to undertaken the project work is very short; hence only One
sector was chosen for the study.
LITERATURE REVIEW

According to Kevin Return and risk are two important characteristics of every
investment. Investors base their investment decision on the expected return and risk of
investments. Risk is measured by the variability in returns.

Investors attempt to reduce the variability of returns through diversification of

investment. This results in the creation of a portfolio. With a given set of securities, any
number of portfolios may be created by altering the proportion of funds invested in each
security. Among these portfolios some dominate others or some are more efficient than
the vast majority of portfolios because of lower risk or higher returns.

Diversification helps to reduce risk, but even a well diversified portfolio does not become
risk free. If we construct a portfolio including all the securities in the stock market, that
would be the most diversified portfolio. Even such a portfolio would be subject to
considerable variability. This variability is undiversifiable and is known as the market
risk or systematic risk because it affects all he securities in the market.

CONCEPTUAL FRAME WORK

Investment is the activity, which is made with the objective of earning some sort of
positive returns in the future. It is the commitment of the funds to earn future returns and
it involves sacrificing the present investment for the future return. Every person makes
the investment so that the funds he has increases as keeping cash with himself is not
going to help as it will not generate any returns and also with the passage of time the time
value of the money will come down.

Types of Investments:-

There are basically three types of investments from which the investors can choose. The
three kinds of investment have their own risk and return profile and investor will decide
to invest taking into account his own risk appetite. The main types of investments are: -
Economic investments:-

These investments refer to the net addition to the capital stock of the society. The capital
stock of the society refers to the investments made in plant, building, land and machinery
which are used for the further production of the goods. This type of investments are very
important for the development of the economy because if the investment are not made in
the plant and machinery the industrial production will come down and which will bring
down the overall growth of the economy.

Financial Investments:-

This type of investments refers to the investments made in the marketable securities
which are of tradable nature. It includes the shares, debentures, bonds and units of the
mutual funds and any other securities which is covered under the ambit of the Securities
Contract Regulations Act definition of the word security. The investments made in the
capital market instruments are of vital important for the country economic growth as the
stock market index is called as the barometer of the economy.

General Investments:-

These investments refer to the investments made by the common investor in his own
small assets like the television, car, house, motor cycle. These types of investments are
termed as the household investments. Such types of investment are important for the
domestic economy of the country. When the demand in the domestic economy boost the
overall productions and the manufacturing in the industrial sectors also goes up and this
causes rise in the employment activity and thus boost up the GDP growth rate of the
country.

Characteristics of Investment

Certain features characterize all investments. The following are the main characteristic
features if investments: -

1. Return: -
All investments are characterized by the expectation of a return. In fact, investments
are made with the primary objective of deriving a return. The return may be received in
the form of yield plus capital appreciation. The difference between the sale price & the
purchase price is capital appreciation. The dividend or interest received from the
investment is the yield. Different types of investments promise different rates of
return. The return from an investment depends upon the nature of investment, the
maturity period & a host of other factors.

2. Risk: -

Risk is inherent in any investment. The risk may relate to loss of capital, delay in
repayment of capital, nonpayment of interest, or variability of returns. While some
investments like government securities & bank deposits are almost risk less, others are
more risky. The risk of an investment depends on the following factors.

3. Safety: -

The safety of an investment implies the certainty of return of capital without loss of
money or time. Safety is another features which an investors desire for his investments.
Every investor expects to get back his capital on maturity without loss & without
delay.

4. Liquidity: -

An investment, which is easily saleable, or marketable without loss of money & without
loss of time is said to possess liquidity. Some investments like company deposits, bank
deposits, P.O. deposits, NSC, NSS etc. are not marketable. Some investment instrument
like preference shares & debentures are marketable, but there are no buyers in many
cases & hence their liquidity is negligible..

IMPORTANCE

In the current situation, investment is becomes necessary for everyone & it is important
& useful in the following ways:

1. Retirement planning: -
Investment decision has become significant as people retire between the ages of 55 &
60. Also, the trend shows longer life expectancy. The earning from employment
should, therefore, be calculated in such a manner that a portion should be put away as a
savings. Savings by themselves do not increase wealth; these must be invested in such a
way that the principal & income will be adequate for a greater number of retirement
years. Increase in working population, proper planning for life span & longevity
have ensured the need for balanced investments.

2. Increasing rates of taxation: -

Taxation is one of the crucial factors in any country, which introduce an element of
compulsion, in a persons saving. In the form investments, there are various forms of
saving outlets in our country, which help in bringing down the tax level by offering
deductions in personal income.

3. Rates of interest: -

It is also an important aspect for sound investment plan. It varies between

investment & another. This may vary between risky & safe investment, they may also
differ due different benefits schemes offered by the investments. These aspects must
be considered before actually investing. The investor has to include in his portfolio
several kinds of investments stability of interest is as important as receiving high rate of
interest.

4. Inflation: -

Since the last decade, now a days inflation becomes a continuous problem. In
these years of rising prices, several problems are associated coupled with a falling
standard of living. Before funds are invested, erosion of the resource will have to be
carefully considered in order to make the right choice of investments. The investor will
try & search outlets, which gives him a high rate of return in form of interest to cover any
decrease due to inflation. He will also have to judge whether the interest or return will
be continuous or there is a likelihood of irregularity.
 5. Investment channels: -

The growth & development of country leading to greater economic activity has
led to the introduction of a vast array of investment outlays. Apart from putting aside
saving in savings banks where interest is low, investor has the choice of a variety of
instruments. The question to reason out is which is the most suitable channel? Which
media will give a balanced growth & stability of return.

RISK RETURN OF VARIOUS INVESTMENT AVENUES

The risk/return relationship is a fundamental concept in not only financial analysis, but in
every aspect of life. If decisions are to lead to benefit maximization, it is necessary that
individuals/institutions consider the combined influence on expected (future) return or
benefit as well as on risk/cost. The requirement that expected return/benefit be
commensurate with risk/cost is known as the "risk/return trade-off" in finance.

This session discusses the trade-off and, using conventional statistical tools, provides a
method for quantifying risk. Two categories of risk borne by the firm's stockholders,
business risk and financial risk, are discussed and demonstrated, as is the concept of
leverage.

Meaning of Risk

Risk & uncertainty are an integrate part of an investment decision. Technically risk can
be defined as situation where the possible consequences of the decision that is to be taken
are known. Uncertainty is generally defined to apply to situations where the
probabilities cannot be estimated. However, risk & uncertainty are used interchangeably.

Types of risks

1. Systematic risk: -

Systematic risk is non diversifiable & is associated with the securities market as well as
the economic, sociological, political, & legal considerations of prices of all securities in
the economy. The affect of these factors is to put pressure on all securities in such a way
that the prices of all stocks will more in the same direction.

Example: -

During a boom period prices of all securities will rise & indicate that the economy is
moving towards prosperity. Market risk, interest rate risk & purchasing power risk are
grouped under systematic risk.

RISK

SYSTEMATIC UNSYSTEMATIC

i. Market Risk i. Business Risk

ii. Interest Rate Risk ii. Financial Risk

iii. Purchasing power Risk

1. Systematic Risk

(A) Market risk

Market risk is referred to as stock variability due to changes in investors attitudes &
expectations. The investor reaction towards tangible and intangible events is the chief
cause affecting market risk.

(B) Interest rate risk

There are four types of movements in prices of stocks in the markets. These may termed
as (1) long term, (2) cyclical (bull and bear markets), (3) intermediate or within the cycle,
and (4) short term. The prices of all securities rise or fall depending on the change in
interest rates. The longer the maturity period of a security the higher the yield on an
investment & lower the fluctuations in prices.

(C) Purchasing Power risk

Purchasing power risk is also known as inflation risk. This risk arises out of change in the
prices of goods & services and technically it covers both inflation and deflation periods.
During the last two decades it has been seen that inflationary pressures have been
continuously affecting the Indian economy. Therefore, in India purchasing power risk is
associated with inflation and rising prices in the economy.

2. Unsystematic Risk: -

The importance of unsystematic risk arises out of the uncertainty surrounding of

particular firm or industry due to factors like labour strike, consumer preferences and
management policies. These uncertainties directly affect the financing and operating
environment of the firm. Unsystematic risks can owing to these considerations be said to
complement the systematic risk forces.

(A) Business risk

Every corporate organization has its own objectives and goals and aims at a particular
gross profit & operating income & also accepts to provide a certain level of dividend
income to its shareholders. It also hopes to plough back some profits. Once it identifies
its operating level of earnings, the degree of variation from this operating level would
measure business risk.

(B) Financial Risk: -

Financial risk in a company is associated with the method through which it plans its
financial structure. If the capital structure of a company tends to make earning unstable,
the company may fail financially. How a company raises funds to finance its needs and
growth will have an impact on its future earnings and consequently on the stability of
earnings.
MODELS

AUTOMOBILE INDUSTRY PROFILE

Driving the most luxurious car has been made possible by the stiff competition in the
automobile industry in India, with overseas players gathering the same momentum as the
domestic participants.

Every other day, we have been hearing about some new launches, some low cost cars -
all customized in a manner such that the common man is not left behind. In 2009, the
automobile industry is expected to see a growth rate of around 9%, with the disclaimer
that the auto industry in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following
Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of
automobiles. Several Indian automobile manufacturers have spread their operations
globally as well, asking for more investments in the Indian automobile sector by the
MNCs.

Tata Motors

Tata Motors is the largest automobile manufacturing companies in India. Established way
back in 1945 Tata Motors is a multinational automobile company with its headquarters in
Mumbai. Previously known as Telco TATA Engineering and Locomotive Company Tata
Motors belongs to Tata Group. This company manufactures compact medium sized utility
vehicles. Over the last few decades it has stood as the undisputed leader in the
commercial vehicles segment. It is also the third largest producer of passenger cars in
India. This automobile company in India is listed on both the Bombay Stock Exchange
and the New York Stock Exchange. The revenues earned by Tata Morts in 2010
accounted to $20.572 billion. Some of the well known cars manufactured by Tata Motors
are: Tata Indigo, Tata Indica, Tata Sumo Tata Indigo Marina and Tata safari.
Hindustan Motors Limited

Hindustan Motors Limited was founded in the year 1942 by B.M Birla. It is an operative
subsidy of the Birla Technical Services group. This company held the title of the biggest
manufacturer of cars in India before Maruti Udyog. Hindustan Motors was the pioneer in
manufacturing automobiles in India. The company accounted for a sales turnover of Rs
150.66 crore in 2010. Some of the important cars and multi utility vehicles manufactured
by Hindustan Motors Limited include; Mitsubishi Lancer, Trekker, Contessa,
Ambassador, Porter, Pushpak and the Mitsubishi.

Ashoke Leyland

Ashoke Leyland is a leading commercial vehicle manufacturer in India. It was

established in 1948. The company over the years has become synonymous with the
production of trucks, passenger buses and emergency military vehicles. It happens to be
the second largest commercial vehicle producer in India holding a market share of almost
30 percent. The company holds a record for selling almost 60, 000 vehicles and almost
7000 engines per years. Ashok Leyland accounted for consolidated revenues of US$ 1.4
billion in 2009. Some of the popular products by this company are; Panther BS-II Muti-
axle Vehicles, Cheetah Bus-III, Tractors and Ecomet, Lynx BS-II, Diesel and Natural Gas
gensets from 15KVA to 250KVA.

Maruti Suzuki India Limited

Maruti Suzuki India Limited was established in 1981. A part of this company is owned by
Suzuki Motor Corporation of Japan. It is the country's largest passenger car
manufacturing company. Credited for having brought in the automobile revolution in the
country Maruti Suzuki India Limited was known as Maruti Udyog Limited till 2007.
With its headquarters in Delhi this automobile company in India happens to be the largest
producer and market share holder of cars. The company accounted for consolidated
revenues of US$4.8 billion in 2010. Maruti Suzuki India Limited is credited for
manufactures a variety of passenger cars SUVs, and Sedans. Some of Maruti's most
popular cars are: Alto, Gypsy, Omni, Wagon R, Maruti 800, Versa, Zen, Esteem, Baleno
and Swift.

Hyundai Motor India Limited

Hyundai Motor India Limited (HMIL) is owned entirely by Hyundai Motors of South
Korea. Hyundai Motors happens to be the largest car manufacturer in South Korea and
the sixth largest in the world. This automobile company in India is also the largest
passenger cars exporter in India. Established on May 6 1996 this company in a short span
of time has taken the Indian automobile industry by storm. Some of the popular cars
manufactured by this company are; Santro, Getz Prime, Hyundai i10, Hyundai i20 Accent
and the Verna and Sonata

Bajaj Auto

Bajaj Auto is another important automobile manufacturing company in India. It is one of

the India's most trusted car manufacturers. It is an operative subsidy of the Bajaj Group.
Bajaj Auto happens to be the largest two and three wheeler manufacturer in India and also
ranks in this field across the globe. This automobile company was established on 2
November 1945. The company was then known as M/s Bachraj Trading Corporation
Private Limited. The company made a modest beginning by importing and then selling
two and three wheelers in India. Today Bajaj Auto has become synonymous with two and
three wheelers in the country. Some of its popular two wheelers are; Pulsar 220DTS and
Kawasaki Ninja 250R.

Indian Automobile Industry SWOT Analysis

Strengths

Domestic Market is large

Government provides monetary assistance for manufacturing units

Reduced Labor cost

Weaknesses
 Infrastructural setbacks

Low productivity

Too many taxes levied by government increase the cost of production

Low investments in Research and Development

Opportunities

Reduction in Excise duty

Rural demand is rising

Income level is at a constant increase

Threats

Increasing rates of interest

Too much competition

Rising cost of raw materials

COMPANIES PROFILES

Ashok Leyland Company profile

Ashok Leyland Ltd is an India-based company. The company is engaged in the

manufacturing of commercial vehicles and related components. The company's products
include buses, trucks, engines, defense and special vehicles. From 18 seater to 82 seater
double-decker buses, from 7.5 ton to 49 ton in haulage vehicles, from numerous special
application vehicles to diesel engines for industrial, marine and genset applications,
Ashok Leyland offers a range of products. The company is the flagship of the Hinduja
Group, one of the largest commercial vehicle manufacturers in India. The company is
headquartered in Chennai, India.

In The year 1949, they commenced production at the factory situated at Ennore, south of
Madras. Also, they rolled out the first indigenously assembled A40 Austin car. In they ear
1950, the company made an agreement with Leyland, UK in which Ashok Motors got
sole rights to import, assemble and progressively manufacture Leyland trucks for seven
years. In the year 1954, the Government approved the progressive manufacture of
Leyland commercial vehicles and a license was granted for the manufacture of 1,000
Comets a year. In the year 1955, the company name was changed to Ashok Leyland Ltd
with equity participation from Leyland Motors Ltd.

Bajaj Auto Ltd Company profile

Bajaj Auto Ltd is one of the leading two & three wheeler manufacturers in India. The
company is well known for their R&D, product development, process engineering and
low-cost manufacturing skills. The company is the largest exported of two and three-
wheelers in the country with exports forming 18% of its total sales. The company has two
subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia. The
company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile
Bajaj Auto Ltd (the holding company) with the name Bajaj Investment & Holding Ltd.
The company received the certificate of commencement of business on May 7, 2007. The
holding company operated in the segments, such as automotive, insurance and
investment, and others. Considering the growth opportunities in the auto, wind-energy,
insurance and finance sectors, and the holding company de-merged their activities into
three separate entities, each of which can focus on their core businesses and strengthen
competencies. The auto business of the holding company along with all assets and
liabilities pertaining thereto including investments in PT Bajaj Auto Indonesia and in a
few vendor companies transferred to Bajaj Investment & Holding Ltd. In addition a total
of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj Investment &
Holding Ltd.

In April 9, 2007, the company inaugurated their green field plant at Pantnagar in
Uttarakhand. In the first year of operations, the plant produced over 275,000 vehicles.
The company's vehicle assembly plant at Akurdi was shut down from September 3, 2007
due to higher cost of production

TVS Motor Company Profile

TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-
wheeler manufacturer in India. The company manufactures a wide range of two-wheelers
from mopeds to racing inspired motorcycles. The company is having their manufacturing
plants at Hosur in Tamilnadu, Mysore in Karnataka and Solan in Himachal Pradesh. They
are also having one unit located at Indonesia. Their subsidiaries include Sundaram Auto
Components Ltd, TVS Motor Company (Europe) BV, TVS Motor (Singapore) Pte Ltd,
PT TVS Motor Company, Indonesia, TVS Energy Ltd and TVS Housing Ltd. TVS Motor
Company Ltd is a part of Sundaram Clayton group in TVS group of companies. In the
year 1979, Sundaram-Clayton Ltd started Moped Division at Hosur to manufacture TVS
50 mopeds.

In the year 1992, they launched two modes of motor cycles namely, Samurai and Shogun
and in the year 1993, they launched TVS Scooty. During 1999-2000, TVS Suzuki Ltd
was amalgamated with Sundaram Auto Engineers Ltd, an unlisted group company which
was incorporated in the year 1992. During the year 2010-11, the company acquired In
June 2011, Bristlecone International AG became a subsidiary of the company. Today, the
company's operations span 18 key industries that form the foundation of every modern
economy: aerospace, aftermarket, agribusiness, automotive, components, construction
equipment, consulting services, defense, energy, farm equipment, finance and insurance,
industrial equipment, information technology, leisure and hospitality, logistics, real estate,
retail, and two wheelers.

Tata Motors Ltd Company Profile

Tata Motors Ltd is India's largest automobile company. The company is the leader in
commercial vehicles in each segment, and among the top three in passenger vehicles with
winning products in the compact, midsize car and utility vehicle segments. They are the
world's fourth largest truck manufacturer, and the world's second largest bus
manufacturer. The company is engaged in the development, designing, manufacturing,
assembling and sale of vehicles, including financing thereof, as well as sale of related
parts and accessories. They manufacture commercial vehicle, three passenger vehicle,
truck and bus. They have a portfolio of automotive products, ranging from sub-1 ton to
49 ton gross vehicle weight (GVW), trucks (including pickup trucks) and from small,
medium, and large buses and coaches to passenger cars, including the car, the Tata Nano.
The company's segments include automotive, and others, which include information
technology (IT) services, construction equipment manufacturing, machine tools and
factory automation solutions, high-precision tooling and plastic and electronic
components for certain applications, and investment business.

The company's manufacturing plants are situated at Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka)
and Sanand (Gujarat). Through their subsidiaries and associate companies, the company
has operations in the UK, South Korea, Thailand and Spain. Tata Motors Ltd was
incorporated in the year 1945 with the name Tata Engineering and Locomotive Co Ltd
for manufacturing locomotives and other engineering products. In the year 1948, the
company introduced steam road roller in collaboration with Marshall Sons (UK).
During the year 2010-11, the company launched the Aria, a premium crossover with
high-end features such as 4x4, Torque on Demand, ESP, six airbags. They launched BS
IV compliant variants of the Indica and the Indigo CS, the Indica eV2 and Indigo eCS
with segment leading fuel efficiencies. These vehicles are powered by the Companys
1.4L CRAIL engine.

Maruti Suzuki India Ltd Company Profile

Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car
company, accounting for over 50 per cent of the domestic car market. The company
offers full range of cars from entry level Maruti 800 & Alto to stylish hatchback Ritz, A-
star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand
Vitara. The company is a subsidiary of Suzuki Motor Corporation of Japan. The company
is engaged in the business of manufacturing, purchase and sale of motor vehicles and
spare parts (automobiles).

During the year 2009-10, the company raised the capacity of their next generation K-
series engine plant to more than 500,000 units per annum. They started work on an
additional plant of 250,000 cars per annum capacity at Manesar. The company launched
their fifth world strategic model, the Ritz. They also came out with the spacious multi
purpose van, Eeco and the all new WagonR with a K-series engine. During the year 2010-
11, the company launched refreshed variants of WagonR and Alto with the new K-series
engines. SX4 was offered with a Super Turbo Diesel engine. The plant is likely to be
ready by end of fiscal 2012/ early 2013. The company plans to set up Rs 1700 crore
diesel engine plant at Gurgaon. They are going to double the diesel engine capacity at
their Gurgaon facility to six lakh units by 2014. Of this, Rs 950 crore is being invested
for the first phase of 1.5 diesel engines by mid-2013.
DATA ANALYSIS AND INTERPRETATION

TATA MOTORS LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of Shares Trades Total Turnover

Jan-11 1,321.00 1,334.30 1,113.00 1,148.25 95,07,436 2,88,245 11,46,05,68,259

Feb-11 1,153.00 1,258.00 1,043.20 1,081.80 1,47,83,186 4,48,506 16,82,11,60,141

Mar-11 1,097.00 1,260.00 1,097.00 1,247.50 89,90,876 2,78,880 10,45,37,61,078

Apr-11 1,244.00 1,301.90 1,188.50 1,229.10 44,88,031 1,48,871 5,60,33,11,125

May-11 1,240.00 1,243.90 1,075.10 1,092.50 81,29,852 2,79,360 9,33,66,12,121

Jun-11 1,095.70 1,097.00 925 993.5 90,77,883 2,94,520 9,05,70,98,253

Jul-11 1,006.00 1,077.00 941.75 947.4 50,64,329 1,72,867 5,10,11,08,638

Aug-11 954 966.75 695 741.7 1,04,03,186 3,05,428 8,16,42,93,797

Sep-11 751 792.4 137.65 156.1 3,95,94,376 4,41,940 7,86,65,11,397

Oct-11 154.3 207.9 145.4 198.45 4,84,52,466 4,51,627 8,64,41,69,079

Nov-11 195.3 202.45 160.2 172.45 5,90,23,249 5,23,881 10,68,71,79,278

Dec-11 181 195.6 167.75 178.4 4,54,79,837 4,41,427 8,26,37,55,913

Interpretation:

In the year 2011, the Equity share price values are decreased compared to the starting
month and finally stood at 178.4 in the month of December.

DETERMINATION OF RISK AND RETURN OF TATA MOTORS AS ON 2011

Month BSE-500 TATA INDEX TATA

MOTORS MOTORS
 LTD RETURNS RETURNS

Jan-11 7,128.29 1,148.25 0.040566 0.061425

Feb-11 6,850.40 1,081.80 -0.07891 -0.13283

Mar-11 7,437.26 1,247.50 0.001363 0.01497

Apr-11 7,427.14 1,229.10 0.02672 0.125034

May-11 7,233.85 1,092.50 -0.00433 0.099648

Jun-11 7,265.32 993.5 0.021657 0.048659

Jul-11 7,111.31 947.4 0.096203 0.277336

Aug-11 6,487.22 741.7 0.015888 3.751441

Sep-11 6,385.76 156.1 -0.05582 -0.2134

Oct-11 6,763.26 198.45 0.10565 0.150768

Nov-11 6,117.00 172.45 0.058546 -0.03335

Dec-11 5,778.68 178.4 0.227537 4.149701

TATA
MOTOR
INDEX S CO.OF CO.OF
VARIAN VARIAN COVARIA ALPH CORRELAT DETERMINA
CE CE NCE BETA SDX SDY A ION TION

1.2461 0.0561 1.1271 3.8661

0.003158 1.270373 0.003936 74 97 08 51 0.068347 0.004671

SYSTEMATIC UNSYSTEMATIC TOTAL

RISK RISK RISK RETURNS

0.004904 1.265701 1.270606 4.14

Interpretation:
From the above table, it is understood that the - value of TATA MOTORS is around 1.24
and that explains low volatility in the stock price. This low volatility in the stock price
indicates the low risk in the investments. Also the risk and returns values of TATA
MOTORS are 1.27 and 1.14 respectively.

TATA MOTORS LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of Trades Total Turnover

Shares

Jan-12 182 244.8 178.65 243.6 4,88,36,247 4,26,127 10,39,14,93,440

Feb-12 244.8 292 240.6 270.8 5,13,73,748 4,70,963 13,52,54,61,119

Mar-12 269.75 297.25 262.4 275.7 3,33,81,894 3,43,171 9,22,98,48,961

Apr-12 280 320.6 273.85 316.75 2,50,43,607 2,79,233 7,46,46,22,585

May-12 312.95 313 230.2 233.2 3,74,13,229 4,71,623 10,06,26,91,202

Jun-12 235 251.85 217 242.05 4,67,38,975 6,12,532 11,05,49,77,251

Jul-12 239.9 248.15 202.95 225.9 3,15,75,184 3,72,144 7,25,56,87,651

Aug-12 224.5 249.75 216.25 233.75 2,93,62,600 3,54,069 6,96,00,21,924

Sep-12 237 289.3 225.15 267.45 2,58,96,096 3,00,492 6,73,99,85,981

Oct-12 267.3 283.65 245.35 254.65 1,85,02,941 2,28,161 4,96,20,15,308

Nov-12 257 285.5 256.2 274.25 2,24,57,418 2,63,818 6,11,60,77,420

Dec-12 273.2 287.45 269.3 278.05 94,61,947 81,747 2,63,22,96,594

Interpretation:

In the year 2012, the Equity share price values are increased compared to the starting
month and finally stood at 278.05 in the month of December.
DETERMINATION OF RISK AND RETURN OF TATA MOTORS AS ON 2012

TATA TATA
MOTORS INDEX MOTORS
Month BSE-500 LTD RETURNS RETURNS

Jan-12 6,549.31 243.6 -0.04491 -0.10044

Feb-12 6,857.28 270.8 0.014446 -0.01777

Mar-12 6,759.63 275.7 0.009124 -0.1296

Apr-12 6,698.51 316.75 0.066635 0.358276

May-12 6,280.04 233.2 -0.06022 -0.03656

Jun-12 6,682.47 242.05 0.011622 0.071492

Jul-12 6,605.70 225.9 -0.00402 -0.03358

Aug-12 6,632.34 233.75 -0.07967 -0.126

Sep-12 7,206.51 267.45 0.012325 0.050265

Oct-12 7,118.77 254.65 -0.04733 -0.07147

Nov-12 7,472.45 274.25 -0.00842 -0.01367

Dec-12 7,535.92 278.05 -0.13042 -0.04907

TATA
MOTOR
INDEX S CO.OF CO.OF
VARIAN VARIAN COVARIA ALPH CORRELAT DETERMINA
CE CE NCE BETA SDX SDY A ION TION

2.0105 0.0421 0.1366 0.2131

0.001975 0.020725 0.003972 39 8 08 59 0.75819 0.574852

SYSTEMATIC UNSYSTEMATIC TOTAL

RISK RISK RISK RETURNS

0.007985 -0.55413 -0.54614 -0.049

Interpretation:

From the above table, it is understood that the - value of TATA MOTORS is around 2.01
and that explains low volatility in the stock price. This low volatility in the stock price
indicates the low risk in the investments. Also the risk and returns values of TATA
MOTORS are -0.54 and -0.049 respectively.

MARUTI SUZUKI INDIA LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of No. of Total Turnover

Shares Trades

Jan-11 1,430.00 1,452.20 1,170.00 1,252.80 9,17,296 38,523 1,21,68,90,307

Feb-11 1,270.00 1,271.90 1,145.50 1,206.70 7,49,252 40,185 90,08,51,117

Mar-11 1,215.70 1,345.00 1,125.90 1,263.55 18,99,252 83,460 2,33,11,50,874

Apr-11 1,248.00 1,335.00 1,216.80 1,319.75 12,13,479 59,527 1,57,09,51,588

May-11 1,320.00 1,333.90 1,188.60 1,227.50 7,85,478 39,265 97,33,63,919

Jun-11 1,227.00 1,259.00 1,087.15 1,158.45 16,30,072 81,845 1,94,04,61,927

Jul-11 1,155.00 1,224.90 1,130.10 1,207.90 9,43,003 51,338 1,11,03,09,606

Aug-11 1,210.10 1,287.00 1,048.00 1,092.35 19,47,311 59,962 2,31,70,01,268

Sep-11 1,080.00 1,161.00 1,045.00 1,081.40 18,77,458 1,05,820 2,06,95,08,938

Oct-11 1,084.90 1,178.00 1,010.45 1,125.65 22,45,520 1,17,164 2,44,05,39,341

Nov-11 1,121.00 1,152.00 910 968.65 17,77,246 92,546 1,79,69,58,393

Dec-11 985 1,015.50 905.55 920.05 15,34,779 75,480 1,48,11,89,065

Interpretation:

In the year 2011, the Equity share price values are decreased compared to the starting
month and finally stood at 920.05 in the month of December.
DETERMINATION OF RISK AND RETURN OF MARUTI SUZUKI AS ON 2011

MARUTI
SUZUKI MARUTI
INDIA INDEX SUZUKI
Month BSE-500 LTD RETURNS RETURNS

Jan-11 7,128.29 1,252.80 0.040566 0.038203

Feb-11 6,850.40 1,206.70 -0.07891 -0.04499

Mar-11 7,437.26 1,263.55 0.001363 -0.04258

Apr-11 7,427.14 1,319.75 0.02672 0.075153

May-11 7,233.85 1,227.50 -0.00433 0.059606

Jun-11 7,265.32 1,158.45 0.021657 -0.04094

Jul-11 7,111.31 1,207.90 0.096203 0.105781

Aug-11 6,487.22 1,092.35 0.015888 0.010126

Sep-11 6,385.76 1,081.40 -0.05582 -0.03931

Oct-11 6,763.26 1,125.65 0.10565 0.162081

Nov-11 6,117.00 968.65 0.058546 0.052823

Dec-11 5,778.68 920.05 0.227537 0.335947

MARUT
I
INDEX SUZUKI CO.OF CO.OF
VARIAN VARIAN COVARIA ALPH CORRELAT DETERMINA
CE CE NCE BETA SDX SDY A ION TION

0.9126 0.0561 0.0691 0.1282

0.003158 0.004781 0.002882 21 97 46 92 0.815889 0.665674

SYSTEMATIC UNSYSTEMATIC TOTAL

RISK RISK RISK RETURNS

0.00263 -0.66089 -0.65826 0.335

Interpretation:

From the above table, it is understood that the - value of MARUTI SUZUKI is around
0.91 and that explains low volatility in the stock price. This low volatility in the stock
price indicates the low risk in the investments. Also the risk and returns values of
MARUTI SUZUKI are -0.66 and 0.335 respectively.

MARUTI SUZUKI INDIA LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of No. of Total Turnover

Shares Trades

Jan-12 930 1,224.80 916.85 1,187.55 30,62,756 1,59,688 3,34,58,07,874

Feb-12 1,195.00 1,375.00 1,182.00 1,256.25 16,00,316 83,734 2,03,89,50,105

Mar-12 1,268.00 1,428.20 1,249.70 1,349.10 16,17,153 85,930 2,15,67,10,411

Apr-12 1,354.00 1,415.00 1,262.10 1,369.90 9,67,935 50,067 1,30,65,92,103

May-12 1,375.00 1,380.05 1,098.30 1,106.45 15,37,374 75,896 1,82,62,68,105

Jun-12 1,116.50 1,176.00 1,052.00 1,169.75 17,82,399 91,939 1,97,70,02,444

Jul-12 1,175.15 1,249.70 1,075.00 1,133.05 36,35,640 1,69,964 4,13,75,48,406

Aug-12 1,131.40 1,206.00 1,109.20 1,138.55 10,70,714 58,043 1,24,47,30,947

Sep-12 1,138.00 1,368.70 1,128.05 1,349.90 16,17,263 50,873 2,00,07,04,385

Oct-12 1,355.50 1,443.75 1,335.00 1,436.25 15,01,357 72,821 2,07,96,72,471

Nov-12 1,440.00 1,514.95 1,434.50 1,473.55 14,42,353 64,235 2,12,28,85,208

Dec-12 1,482.00 1,537.00 1,459.60 1,475.85 2,89,793 16,469 43,41,10,016

Interpretation:

In the year 2012, the Equity share price values are increased compared to the starting
month and finally stood at 1475.85 in the month of December.
DETERMINATION OF RISK AND RETURN OF MARUTI SUZUKI AS ON 2012

MARUTI
SUZUKI MARUTI
INDIA INDEX SUZUKI
Month BSE-500 LTD RETURNS RETURNS

Jan-12 6,549.31 1,187.55 -0.04491 -0.05469

Feb-12 6,857.28 1,256.25 0.014446 -0.06882

Mar-12 6,759.63 1,349.10 0.009124 -0.01518

Apr-12 6,698.51 1,369.90 0.066635 0.238104

May-12 6,280.04 1,106.45 -0.06022 -0.05411

Jun-12 6,682.47 1,169.75 0.011622 0.03239

Jul-12 6,605.70 1,133.05 -0.00402 -0.00483

Aug-12 6,632.34 1,138.55 -0.07967 -0.15657

Sep-12 7,206.51 1,349.90 0.012325 -0.06012

Oct-12 7,118.77 1,436.25 -0.04733 -0.02531

Nov-12 7,472.45 1,473.55 -0.00842 -0.00156

Dec-12 7,535.92 1,475.85 -0.13042 -0.1707

MARUT
I
INDEX SUZUKI CO.OF CO.OF
VARIAN VARIAN COVARIA ALPH CORRELAT DETERMINA
CE CE NCE BETA SDX SDY A ION TION

1.6230 0.0421 0.0973 0.0409

0.001779 0.009477 0.002888 56 8 52 82 0.773551 0.598382

SYSTEMATIC UNSYSTEMATIC TOTAL

RISK RISK RISK RETURNS

0.004687 -0.5889 -0.58422 -0.17

Interpretation:

From the above table, it is understood that the - value of MARUTI SUZUKI is high and
that explains high volatility in the stock price. This high volatility in the stock price
indicates the high risk in the investments.

ASHOK LEYLAND LTD EQUITY SHARE PRICES AS ON 2011

No. of No. of Total

Month Open High Low Close Shares Trades Turnover

Jan-11 64.6 68.7 52.25 58.95 1,51,93,098 87,237 92,64,26,769

Feb-11 59.45 59.45 45.1 46.7 1,44,79,833 66,222 75,59,59,646

Mar-11 46.7 57.9 46.7 56.9 1,73,45,631 71,032 92,49,53,001

Apr-11 57.85 59.8 52.5 53.05 1,43,01,444 58,801 79,43,08,053

May-11 53.25 53.25 45 51.1 1,53,93,352 74,381 76,36,90,986

Jun-11 51.2 55.65 45.35 48.65 1,45,54,881 56,174 71,91,98,007

Jul-11 48.7 53.3 47.9 51.05 1,23,30,390 60,932 63,05,49,931

Aug-11 51.7 52.4 22.75 24.85 1,47,13,498 56,542 38,19,94,705

Sep-11 25 27.9 24.35 26.1 1,91,94,923 48,017 49,76,43,645

Oct-11 26.5 27.35 23.2 27.25 1,63,81,427 29,508 40,68,65,456

Nov-11 27 29.9 24.2 24.6 1,15,55,348 38,486 30,70,67,119

Dec-11 25.15 27.05 20.05 22.75 1,40,24,402 41,533 33,21,80,017

Interpretation:

In the year 2011, the Equity share price values are drastically decreased compared to the
starting month and finally stood at 22.75 in the month of December.
DETERMINATION OF RISK AND RETURN OF ASHOK LEYLAND AS ON 2011

ASHOK
ASHOK LEYLAND
LEYLAND INDEX LTD
Month BSE-500 LTD RETURNS RETURNS

Jan-11 7,128.29 58.95 0.040566 0.262313

Feb-11 6,850.40 46.7 -0.07891 -0.17926

Mar-11 7,437.26 56.9 0.001363 0.072573

Apr-11 7,427.14 53.05 0.02672 0.03816

May-11 7,233.85 51.1 -0.00433 0.05036

Jun-11 7,265.32 48.65 0.021657 -0.04701

Jul-11 7,111.31 51.05 0.096203 1.054326

Aug-11 6,487.22 24.85 0.015888 -0.04789

Sep-11 6,385.76 26.1 -0.05582 -0.0422

Oct-11 6,763.26 27.25 0.10565 0.107724

Nov-11 6,117.00 24.6 0.058546 0.081319

Dec-11 5,778.68 22.75 0.227537 1.350405

INDEX ASHOK CO.OF CO.OF

VARIAN LEYLA COVARIA ALPH CORRELAT DETERMINA
CE ND LTD NCE BETA SDX SDY A ION TION

0.10805 3.3362 0.0561 0.3287 0.5912

0.003158 3 0.010536 68 97 14 81 0.627411 0.393645

SYSTEMATIC UNSYSTEMATIC TOTAL

RISK RISK RISK RETURNS

0.035152 -0.28559 -0.25044 1.35

Interpretation:

From the above table, it is understood that the - value of ASHOK LEYLAND is around
3.3 and that explains high volatility in the stock price. This high volatility in the stock
price indicates the high risk in the investments. Also the risk and returns values of
ASHOK LEYLAND are -0.25 and 1.35 respectively.

ASHOK LEYLAND LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of No. of Total

Shares Trades Turnover

Jan-12 23 27.9 22.1 27.4 1,22,27,072 33,286 31,13,86,324

Feb-12 28.4 30.5 25.6 28.3 3,03,25,585 65,529 86,07,27,013

Mar-12 28.05 30.4 26.9 30.3 1,90,19,116 40,329 54,55,80,321

Apr-12 30.6 32.55 28.7 32.25 1,48,59,359 38,828 45,63,56,906

May-12 32.5 32.9 23.7 25 2,17,57,572 40,796 58,51,47,455

Jun-12 24.7 29 24.3 24.95 1,21,33,089 29,719 31,06,21,173

Jul-12 25.25 26.15 21.15 22.3 2,76,18,265 52,961 66,40,99,556

Aug-12 22.4 23.5 20.25 20.7 1,79,74,195 39,026 39,74,17,277

Sep-12 21.1 24.85 20.55 24.05 1,36,18,698 31,719 30,70,24,428

Oct-12 24 25 22.9 23.45 90,94,808 27,137 21,81,18,872

Nov-12 23.45 28.65 23.3 28.35 2,97,04,907 60,181 77,04,79,907

Dec-12 28.35 28.7 26.45 26.7 98,87,818 13,595 27,49,29,557

Interpretation:

In the year 2012, the Equity share price values are drastically decreased compared to the
starting month and finally stood at 26.7 in the month of December.
DETERMINATION OF RISK AND RETURN OF ASHOK LEYLAND AS ON 2012

ASHOK
ASHOK LEYLAND
LEYLAND INDEX LTD
Month BSE-500 LTD RETURNS RETURNS

Jan-12 6,549.31 27.4 -0.04491 -0.0318

Feb-12 6,857.28 28.3 0.014446 -0.06601

Mar-12 6,759.63 30.3 0.009124 -0.06047

Apr-12 6,698.51 32.25 0.066635 0.29

May-12 6,280.04 25 -0.06022 0.002004

Jun-12 6,682.47 24.95 0.011622 0.118834

Jul-12 6,605.70 22.3 -0.00402 0.077295

Aug-12 6,632.34 20.7 -0.07967 -0.13929

Sep-12 7,206.51 24.05 0.012325 0.025586

Oct-12 7,118.77 23.45 -0.04733 -0.17284

Nov-12 7,472.45 28.35 -0.00842 0.061798

Dec-12 7,535.92 26.7 -0.13042 0.10511

ASHOK
LEYLA
INDEX ND CO.OF CO.OF
VARIAN VARIAN COVARIA ALPH CORRELAT DETERMINA
CE CE NCE BETA SDX SDY A ION TION

2.0702 0.0421 0.1288 0.3751

0.001779 0.016597 0.003683 76 8 29 26 0.745615 0.555941

SYSTEMATIC UNSYSTEMATIC TOTAL

RISK RISK RISK RETURNS

0.007626 -0.53934 -0.53172 0.105

Interpretation:

From the above table, it is understood that the - value of ASHOK LEYLAND NS is
around 2.07 and that explains high volatility in the stock price. This high volatility in the
stock price indicates the high risk in the investments. Also the risk and returns values of
ASHOK LEYLAND are -0.53 and 0.105 respectively.

TVS MOTOR COMPANY LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of No. Total

Shares of Trades Turnover

Jan-11 73.1 74.5 50.5 54.45 1,46,42,006 88,809 91,32,26,013

Feb-11 55.25 60 43.7 50.75 1,14,89,499 75,120 59,22,92,927

Mar-11 51 61.15 51 60 1,28,85,056 77,931 72,74,29,395

Apr-11 60.5 63 54.7 56.35 1,38,97,512 78,829 82,22,17,352

May-11 57.5 57.9 50.1 54.15 90,45,470 60,663 48,38,56,855

Jun-11 54.85 56.75 50.15 53.65 40,46,822 37,765 21,82,31,446

Jul-11 55 55.1 48.6 49.35 50,17,362 29,434 25,89,49,917

Aug-11 50.6 57.65 48.35 55.3 81,70,211 50,078 43,58,12,869

Sep-11 56.5 66.25 56 61 83,91,545 58,291 51,01,16,418

Oct-11 61 70.3 57.55 68.8 72,18,538 47,423 46,09,88,059

Nov-11 69.1 69.4 58.25 59.25 90,66,421 64,672 59,25,40,537

Dec-11 63 63.4 46.15 51.9 50,95,050 38,919 27,54,39,383

Interpretation:

In the year 2011, the Equity share price values are increased and decreased compared to
the starting month and finally stood at 51.9 in the month of December.

DETERMINATION OF RISK AND RETURN OF TVS MOTOR AS ON 2011

TVS
MOTOR TVS
COMPANY INDEX MOTOR
Month BSE-500 LTD RETURNS RETURNS

Jan-11 7,128.29 54.45 0.040566 0.072906

Feb-11 6,850.40 50.75 -0.07891 -0.15417

Mar-11 7,437.26 60 0.001363 0.064774

Apr-11 7,427.14 56.35 0.02672 0.040628

May-11 7,233.85 54.15 -0.00433 0.00932

Jun-11 7,265.32 53.65 0.021657 0.087133

Jul-11 7,111.31 49.35 0.096203 -0.10759

Aug-11 6,487.22 55.3 0.015888 -0.09344

Sep-11 6,385.76 61 -0.05582 -0.11337

Oct-11 6,763.26 68.8 0.10565 0.161181

Nov-11 6,117.00 59.25 0.058546 0.141618

Dec-11 5,778.68 51.9 0.227537 0.108984

INDEX TVS CO.OF CO.OF

VARIAN VARIAN COVARIA ALPH CORRELAT DETERMINA
CE CE NCE BETA SDX SDY A ION TION

-
1.0276 0.0561 0.1098 0.1248
0.003158 0.012072 0.003246 75 97 75 5 0.578185 0.334297
SYSTEMATIC UNSYSTEMATIC TOTAL
RISK RISK RISK RETURNS

0.003335 -0.32222 -0.31889 0.108

Interpretation:

From the above table, it is understood that the - value of TVS MOTOR is around 1.02
and that explains low volatility in the stock price. This low volatility in the stock price
indicates the low risk in the investments. Also the risk and returns values of TVS
MOTOR are -0.31and 0.108 respectively.

TVS MOTOR COMPANY LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of No. Total

Shares of Trades Turnover

Jan-12 52.5 55.2 46.05 52.4 99,94,675 66,275 50,42,95,974

Feb-12 52.4 55.5 46.5 47.2 1,22,75,150 73,250 63,46,42,581

Mar-12 47.9 48.5 37 41 89,87,510 46,067 38,38,30,504

Apr-12 41.95 43.95 38.1 41 76,25,286 38,915 31,38,31,329

May-12 42.05 42.05 32.1 34 69,06,301 41,618 24,68,60,171

Jun-12 33.95 36.6 31.9 36.45 61,28,302 28,358 20,63,75,664

Jul-12 36.55 42.05 34.8 37.9 1,05,59,033 51,059 40,81,33,985

Aug-12 37.9 41 37.4 39.15 24,04,563 16,668 9,41,86,046

Sep-12 38.6 43.9 35.65 42.25 57,50,930 27,806 23,32,11,505

Oct-12 42.45 46.95 38.1 38.8 46,73,389 30,958 19,69,70,465

Nov-12 38.75 40.2 36.6 38.95 27,25,223 16,296 10,47,15,609

Dec-12 39 41.4 38.35 38.55 19,20,736 8,382 7,67,35,178

Interpretation:

In the year 2012, the Equity share price values are decreased compared to the starting
month and finally stood at 38.35in the month of December.

DETERMINATION OF RISK AND RETURN OF TVS MOTOR AS ON 2012

TVS
MOTOR TVS
COMPANY INDEX MOTOR
Month BSE-500 LTD RETURNS RETURNS

Jan-12 6,549.31 52.4 -0.04491 0.110169

Feb-12 6,857.28 47.2 0.014446 0.15122

Mar-12 6,759.63 41 0.009124 0

Apr-12 6,698.51 41 0.066635 0.205882

May-12 6,280.04 34 -0.06022 -0.06722

Jun-12 6,682.47 36.45 0.011622 -0.03826

Jul-12 6,605.70 37.9 -0.00402 -0.03193

Aug-12 6,632.34 39.15 -0.07967 -0.07337

Sep-12 7,206.51 42.25 0.012325 0.088918

Oct-12 7,118.77 38.8 -0.04733 -0.00385

Nov-12 7,472.45 38.95 -0.00842 0.010376

Dec-12 7,535.92 38.55 -0.13042 0.351939

TVS
INDEX MOTOR CO.OF CO.OF
VARIAN VARIAN COVARIA ALPH CORRELAT DETERMINA
CE CE NCE BETA SDX SDY A ION TION

1.3232 0.0421 0.0930 0.5245

0.001779 0.008655 0.002354 28 8 3 2 0.659953 0.435538
SYSTEMATIC UNSYSTEMATIC TOTAL
RISK RISK RISK RETURNS

0.003115 -0.42688 -0.42377 0.35

Interpretation:

From the above table, it is understood that the - value of TVS MOTOR is around 1.32
and that explains low volatility in the stock price. This low volatility in the stock price
indicates the low risk in the investments. Also the risk and returns values of TVS
MOTOR are -0.42 and 0.35 respectively.

MAHINDRA & MAHINDRA LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. No. of Total Turnover

of Shares Trades

Jan-11 792 801.9 677.2 712.05 41,81,009 98,612 3,09,88,98,806

Feb-11 720 721 585.1 614.1 60,18,303 1,66,835 3,90,35,48,034

Mar-11 622.9 811.5 622.9 698.6 50,75,320 1,25,782 3,38,00,01,026

Apr-11 701 778.25 697.05 753.8 26,65,526 71,682 1,97,65,66,498

May-11 761 765 649.25 672.15 40,95,252 1,13,654 2,81,62,03,222

Jun-11 676 705 617 701.3 31,82,711 86,786 2,12,19,83,088

Jul-11 702 752 688.1 718.25 22,35,315 65,540 1,60,08,07,867

Aug-11 723.2 746.1 633 737.55 45,69,214 1,33,049 3,22,52,86,326

Sep-11 740 820.8 740 802.55 52,51,277 1,24,040 4,17,08,13,515

Oct-11 800 874.75 775 863.2 26,87,102 70,909 2,18,71,02,904

Nov-11 855 862.95 681.7 723.85 52,74,002 1,51,259 4,04,80,40,888

Dec-11 743.1 762.55 633.4 683.05 49,13,251 1,50,943 3,40,87,22,475

Interpretation:
In the year 2011, the Equity share price values are increased and decreased compared to

the starting month and finally stood at 683.05 in the month of December.

DETERMINATION OF RISK AND RETURN OF MAHINDRA & MAHINDRA LTD

AS ON 2011

MAHINDRA MAHINDRA
& &
MAHINDRA INDEX MAHINDRA
Month BSE-500 LTD RETURNS RETURNS

Jan-11 7,128.29 712.05 0.040566 0.159502

Feb-11 6,850.40 614.1 -0.07891 -0.12096

Mar-11 7,437.26 698.6 0.001363 -0.07323

Apr-11 7,427.14 753.8 0.02672 0.121476

May-11 7,233.85 672.15 -0.00433 -0.04157

Jun-11 7,265.32 701.3 0.021657 -0.0236

Jul-11 7,111.31 718.25 0.096203 -0.02617

Aug-11 6,487.22 737.55 0.015888 -0.08099

Sep-11 6,385.76 802.55 -0.05582 -0.07026

Oct-11 6,763.26 863.2 0.10565 0.192512

Nov-11 6,117.00 723.85 0.058546 0.059732

Dec-11 5,778.68 683.05 0.227537 0.096451

INDEX CO.OF CO.OF

VARIAN COVARIA ALPH CORRELAT DETERMINA
CE M&M NCE BETA SDX SDY A ION TION

0.0114 1.1741 0.0561 0.1069 -

0.003158 44 0.003708 09 97 76 0.1707 0.678469 0.460321

SYSTEMATIC UNSYSTEMATIC TOTAL RETURNS

RISK RISK RISK

0.004354 -0.44888 -0.44452 0.09

Interpretation:

From the above table, it is understood that the - value of MAHINDRA & MAHINDRA
is around 1.17 and that explains high volatility in the stock price. This high volatility in
the stock price indicates the high risk in the investments. Also the risk and returns value
of MAHINDRA & MAHINDRA is -0.44 and 0.09 respectively.

MAHINDRA & MAHINDRA LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. No. of Total Turnover

of Shares Trades

Jan-12 691 710 628.2 672.85 72,91,755 2,01,558 4,88,03,01,800

Feb-12 672.2 766.85 672.2 707.65 61,17,337 1,84,250 4,36,76,57,404

Mar-12 709.9 709.9 650 696.9 48,04,295 1,43,288 3,26,45,79,335

Apr-12 708 734 679.05 710.15 24,85,398 67,905 1,75,27,47,000

May-12 713.8 721 621.75 651.7 29,36,077 95,443 1,93,60,38,919

Jun-12 650 712.75 636.2 706.9 21,22,507 61,943 1,44,84,48,328

Jul-12 710.5 738.5 675.1 700.45 18,24,793 46,588 1,30,52,76,030

Aug-12 703 790 681.55 765.15 21,65,681 66,823 1,60,87,97,456

Sep-12 772 871.5 741.2 864.5 23,95,623 70,093 1,93,71,47,334

Oct-12 864.5 899.1 819 884.25 26,03,510 62,966 2,22,64,78,236

Nov-12 885 960.95 880 944.85 25,01,825 70,162 2,31,29,49,773

Dec-12 950 964.45 913.75 927.95 9,34,783 19,931 87,27,29,952

Interpretation:
In the year 2012, the Equity share price values are increased compared to the starting
month and finally stood at 927.95 in the month of December.

DETERMINATION OF RISK AND RETURN OF MAHINDRA & MAHINDRA LTD

AS ON 2012

Month BSE-500 MAHINDRA INDEX MAHINDRA

& RETURNS &
MAHINDRA MAHINDRA
LTD RETURNS

Jan-12 6,549.31 672.85 -0.04491 -0.04918

Feb-12 6,857.28 707.65 0.014446 0.015425

Mar-12 6,759.63 696.9 0.009124 -0.01866

Apr-12 6,698.51 710.15 0.066635 0.089689

May-12 6,280.04 651.7 -0.06022 -0.07809

Jun-12 6,682.47 706.9 0.011622 0.009208

Jul-12 6,605.70 700.45 -0.00402 -0.08456

Aug-12 6,632.34 765.15 -0.07967 -0.11492

Sep-12 7,206.51 864.5 0.012325 -0.02234

Oct-12 7,118.77 884.25 -0.04733 -0.06414

Nov-12 7,472.45 944.85 -0.00842 0.018212

Dec-12 7,535.92 927.95 -0.13042 -0.29934

INDEX M& COVARI BET SDX SDY ALP CO.OF CO.OF

VARIA M ANCE A HA CORRELA DETERMIN
NCE TION ATION

0.00177 0.003 0.001964 1.10 0.04 0.05 - 0.873314 0.762677

9 439 373 218 864 0.15
539
SYSTEMATIC UNSYSTEMATIC TOTAL RETURNS
RISK RISK RISK

0.002167 -0.75924 - -0.29

0.75707

Interpretation:

From the above table, it is understood that the - value of MAHINDRA & MAHINDRA
is around 1.1 and that explains low volatility in the stock price. This low volatility in the
stock price indicates the low risk in the investments. Also the risk and returns values of
MAHINDRA & MAHINDRA are -0.75 and -0.29 respectively.
FINDINGS:

The values of Beta, Risk and Returns of Automobile industry in the year 2011 in the
following table

COMPANIES BETA RISK RETURNS

TATA MOTORS 1.2 1.27 4.14

MARUTI SUZUKI 0.91 -0.65 0.33

ASHOK LEYLAND 3.3 -0.25 1.35

TVS MOTOR 1.02 -0.31 0.18

MAHINDRA & MAHINDRA 1.17 -0.44 0.09

The sensitivity of a security to market movements is called Beta. Here, the beta
values of MARUTI SUZUKI, BAJAJ AUTO and TVS MOTOR are less than and
equal to 1, it is considered to be as safety fund. That means these types of funds
have more protection in the case of market slow down.

And the beta value of TATA MOTORS, ASHOK LEYLAND, and MAHINDRA
& MAHINDRA is greater than 1 which represents the fund returns are more than
the market and also fall more than the market.

The values of Beta, Risk and Returns of Automobile industry in the year 2012 in the
following table
COMPANIES BETA RISK RETURNS

TATA MOTORS 2.01 -0.54 -0.04

MARUTI SUZUKI 1.62 -0.58 -0.17

ASHOK 2.07 -0.53 0.1

LEYLAND

The sensitivity of a security to market movements is called Beta. Here, the beta
values MARUTI SUZUKI, BAJAJ AUTO and TVS MOTOR are equal to 1, it is
considered to be as safety fund. That means these types of funds have more
protection in the case of market slow down.

And the beta value of TATA MOTORS, ASHOK LEYLAND, and MAHINDRA
& MAHINDRA is greater than 1 which represents the fund returns are more than
the market and also fall more than the market.
Suggestions:

1. It is suggested to the investors to choose MARUTI SUZUKI, BAJAJ AUTO and

TVS MOTOR to safe their investments even in market loss.

2. If investors want to get more returns bearing more risk he is suggested to choose
TATA MOTORS, ASHOK LEYLAND, and MAHINDRA & MAHINDRA.

3. The stock market is characterized by the tradeoff between risk and return. The
higher the risk the investor is willing and able to take, the higher the potential
rewards from the investment. Therefore, if a particular investment offers you high
returns, it is an indication that it will come with a high risk burden.

4. As part of the selection process, investor should determine the risk level of the
stock as well as their risk tolerance. If they are looking for high returns they
should be able to meet high potential losses as well.

5. There is no safe investment that will provide investors with high returns over a
short period of time. Therefore, investor should direct their resources toward long
term investment that are more likely to reward you for the patience with high
returns.
Conclusion:

The Study on Performance Analysis of equity shares in Automobile industries was

undertaken with an objective of getting an insight into the concept of investments, the
risks and the returns involved. The study aims to determine the risk involved in the
investments and the factors affecting the risk. The other objectives of the study are to
observe the rate of fluctuations and the degree of volatility of the Automobile industry.

The study is confined to the Automobile sector and analyzed six companies MARUTI
SUZUKI, BAJAJ AUTO, TVS MOTOR, TATA MOTORS, ASHOK LEYLAND, and
MAHINDRA & MAHINDRA. The study is done using the NIFTY values and other
related data from the Stock Exchanges. The data of the only one sector MARUTI
SUZUKI, BAJAJ AUTO, TVS MOTOR, TATA MOTORS, ASHOK LEYLAND and
MAHINDRA & MAHINDR are collected. The entire study is based on the secondary
data only. The analytical tools used for the study are risk and return analysis. The study is
done at Hyderabad for a period of 60days. The study had few limitations which were
taken care of.

The information collected was analyzed using appropriate techniques risk and return
analysis. From the analysis, it was found that the risk of TATA MOTORS, ASHOK
LEYLAND and MAHINDRA & MAHINDRA are very high. That means the returns for
the investment in these companies is very high. The remaining three companies have beta
values less than 1 and it is suggested to the investors to invest in these companies to
protect their money even in the market losses.
Bibliography

1. S. Kelvin, Security analysis and portfolio management, Prentice-Hall of India, 1 st

edition, 2009.

2. Rohini singh, Security analysis and portfolio management, Excel books, 1 st

edition, 2009

3. Dr. Maheswari S.N, Management Accounting and Financial control, sultan chand
and sons, 1992.

Webliography

1. www.indiainfoline.com

2. www.bse.com

3. www.nse.com

4. www.moneycontrol.com

5. www.wikipedia.com

6. www.investopedia.com