1 Name of the Student Leena Nag

2 University Roll Number 16OTCMD009

3 Name of the College
4 Name of the organization/Company
Name and details of Co-Guide in the
5 Distribution Manager
Organization/Company
6 Proposed Project Work area
7 Proposed Project Work topic
Indian Institute of Plantation Management
Karvy Stock Broking Ltd.
Mrs. Prema Dominic
Karvy Stock Broking Limited
Finance
A study on “Fundamental Equity Valuation
of the Stock”

Student’s Signature: Faculty Guide’s Signature with date:

 
 A Study On
“A Study on Fundamental Equity Valuation of the Stock.”

Project Work Abstract submitted in partial fulfilment of the requirements

for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Of
BANGALORE UNIVERSITY

By

Leena Nag
16OTCMD009

Under the guidance of

Mr. Bhaskar K
Academic Co-Ordinator, MBA

Indian Institute of Plantation Management Bangalore

Jnana Bharathi Campus, Malathalli Post, Bangalore-560056.

Abstract
I. TITLE OF THE PROJECT:
“A Study on Fundamental Equity Valuation of the Stock” in Karvy Stock Broking Limited.
II. INTRODUCTION TO THE TOPIC:
In financial market, stock valuation is the method of calculating theoretical values of companies and their
stocks. The main use of these methods is to predict future market prices, or more generally, potential market
prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their
theoretical value) are bought, while stocks that are judged overvalued are sold, in the expectation that
undervalued stocks will overall rise in value, while overvalued stocks will generally decrease in value.
In the view of fundamental analysis, stock valuation based on fundamentals aims to give an estimate of
the intrinsic value of a stock, based on predictions of the future cash flows and profitability of the business
III. NEED FOR THE STUDY:
A. The study helps in determine investor’s worth of their shares based on the fundamentals.
B. The study gives the overview of Equity valuation needed so as to know the competitiveness of the
company with other competitors along with industry benchmark.
C. To predict the future prices of the company to know where the company stands and to take proper
decision while investing whether long or short term period.
IV. OBJECTIVES OF THE STUDY:
A. The main objective of this study is to learn ratio analysis related to stock valuation.
B. To gain knowledge on Stock Market especially equity.
C. To know whether the equities are under-priced or over-priced and to suggest when to buy Karvy stock.
V. SCOPE OF THE STUDY:
The scope of this study is limited to Annual reports of Karvy detectable through analysis of data which is
available in public domain.
VI. RESEARCH METHODOLOGY:
The Study is based on the past financial information of the five years and with the help of current market
price of Karvy Share price by calculating the future price using model of equity valuation and conducted through
analysis of Annual Reports & Other Public documents by utilising Ratio Analysis. Data has been obtained from
various online journals, work available in various books.