SHARE KHAN LIMITED

“Economic, Industry, Company, technical Analysis” of DLF LTD. AND

UNITECH LTD.

A detail stock analysis of DLF Ltd and Unitech Ltd.

Ashutosh Agrawal
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Contents
Executive Summary............................................................................................................................................ 5
Introduction of Stock Market............................................................................................................................... 6
Range Of Product And Services......................................................................................................................... 8
Company Profile............................................................................................................................................... 10
SWOT ANALYSIS:............................................................................................................................................ 16
ABSTRACT....................................................................................................................................................... 17
Objectives......................................................................................................................................................... 18
Introduction To Real Estate............................................................................................................................... 18
Company Introduction....................................................................................................................................... 20
RBI hikes short term rates : Interest rates on home, car and other retail loans are set to firm up in near
future as the Reserve Bank of India on Friday hiked the rates at which it takes deposits, and lends short-
term funds to banks by 25 basis points.  took the decision to tighten money supply for containing the rising
inflation, which has touched 9.9% in February...........................................................................................26
Standard Chartered’s country head, Neeraj Swaroop, also termed RBI’s decision to hike rates as a signal
to increase the lending rates................................................................................................................... 26
As per the above news Real estate sector noticed a fall in stock prices as interest rates are likely to hike.
.................................................................................................................................................................. 26
Industry Analysis............................................................................................................................................... 27
COMPANY ANALYSIS..................................................................................................................................... 36
RATIO ANALYSIS............................................................................................................................................ 38
Technical Analysis............................................................................................................................................ 50
CONCLUSION.................................................................................................................................................. 66
BIBLIOGRAPHY............................................................................................................................................... 67

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SUMMER TRAINING REPORT ON: Share Khan Ltd.

Project Title: “Economic, Industry, Company, technical Analysis” of DLF

LTD. AND UNITECH LTD.

Submitted in partial fulfillment of the requirements of the two year

Post Graduate Programme (PGP).

Submitted by
 

ASHUTOSH AGRAWAL

Roll No: 2009 5405

Batch:2009-2011 
 

IILM Institute for Higher Education

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Acknowledgement

"Sometimes our light goes out

But is blown into flame by another human being,

Each of us owes deepest thanks

To those who have rekindled this light"

No work is a single man’s effort. Cooperation, guidance and coordination are required at various
levels for the successful completion of a project.

I take this opportunity to express my gratitude to all those people who have been instrumental in
successful completion of my project. I extend my sincere thanks to my mentor, Ms. Monica Mor, who
helped me in all possible ways and constantly encouraged me throughout my project. I also thank him
for his valuable guidance and for being understanding and supportive. I am particularly indebted to
Mr. Arvind Kumar, my company guide for his helpful guidance, comments and suggestions on
earlier reports and throughout my project. .

I would also like to express my gratitude towards my parents and friends, who have always been my
source of inspiration and motivation.

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Executive Summary
The following report is on economic, industry, company, technical analysis of DLF Limited and
Unitech Limited along with a detailed stock analysis of both the companies.

The project begins with a look into the stock market considering taking into account the transaction
cycle and also the concept of online trading. Share khan is India’s leading financial firm. a complete
life-cycle of investment solution in Equities, Derivatives, Commodities, IPO, Mutual Funds, Depository
Services, Portfolio Management Services and Insurance. We also offer personalized wealth
management services for High Net worth individuals. Share khan complete industry analysis has
been covered in this report along with the SWOT Analysis objective analysis.

The following report peeps into the world of real estate taking two major companies like DLF and
UNITECH. Combining the two industries have tried to explain the scope of investment in the real
estate sector with Share khan being a guiding on how to go about it.

The report also covers both industry and economic analysis along with the PEST and SWOT of DLF
Limited and UNITECH. Based on the following assumptions are the ratio analysis and technical
analysis being done.

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Introduction of Stock Market

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The
earliest records of security dealings in India are meager and obscure. The East India Company was
the dominant institution in those days and business in its loan securities used to be transacted
towards the close of the eighteenth centaury.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.The 1850's witnessed a rapid
development of commercial enterprise and brokerage business attracted many men into the field
and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of Europe
was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200
to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for
example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87).

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'
Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange
acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange
at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of exchanges were increased and
at currently it reached to the figure of 24 stock exchanges .

Transaction cycle

 Decision to trade
 Placing order
 Trade Execution
 Clearing of Trades

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 Settlement of trades
 Funds or Securities

A person holding assets (Securities/Funds), either to meet his liquidity needs or to reshuffle his
holdings in response to changes in his perception about risk and return of the assets, decides to buy
or sell the securities. He selects a broker and instructs him to place buy/sell order on an exchange.
The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade
cycle, the trades are netted to determine the obligations of the trading member’s securities/funds as
per settlement cycle. Buyer/seller delivers funds/ securities and receives securities/funds and
acquires ownership of the securities.

A securities transaction cycle is presented above. Just because of this Transaction cycle, the whole
business of Securities and Stock Broking has emerged. And as an extension of stock broking, the
business of Online Stock broking/ Online Trading/ E-Broking has emerged.

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place
in a street (now appropriately called as Dalal Street) where they would conveniently assemble and
transact business. In 1887, they formally established in Bombay, the "Native Share and Stock
Brokers' Association" (which is alternatively known as “The Stock Exchange "). In 1895, the Stock
Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock
Exchange at Bombay was consolidated

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History Of Online Trading

Online stock trading is very old concept for big institutions who trade through private networks
owned by Reuter's "Instinet" and a system called "Posit" since 1969. But it becomes internet based
for lay men only in late 90s.

Funny, that actually idea was first time used by a company making Beer called "WIT beer"
to help its shareholders trade its shares. That’s how “WIT Capital" was born which is considered
pioneer of this concept. It was made mainstream and household name by a offshoot of Charles
Schwab & Co called eSchwab which is used by millions of people in USA. Lot of NRI's i know playing
US stock market even when they come to India for holidays via website of Schwab.

There are other serious players like E*TRADE, DATEK online etc. All this companies ask you to
start account with US $5000 and you can buy and sell stock using these funds. They also issue
you a check book which you can use to make payments from this account. Or use their ATM card
to withdraw cash from your stock trading account.

Today practically every big name brokerage firm offers online stock trading as it reduces their costs.
Earlier they had army of brokers on phone with clients executing trade, which is done by computers
accepting orders from clients directly. This firm now offers human access to high net worth accounts,
and to rest at charge per trade.

Range Of Product and Services

Market Size: Growth of Online Brokerage market

In five years of its existence in India, online broking has grown to account for a tenth of the total
trading volumes. If the numbers are considered for only the retail segments, the growth is starker.
Almost half of the Rs 5,000 crore-6,000 crore daily market volumes on the NSE are accounted for by
non-retail entities such as foreign institutional investors, domestic institutions, mutual funds and

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arbitrage traders. Institutions aren't online customers anyway. Of the rest of the retail segment,
current estimates suggest that online broking reach is close to 30 per cent.

As of September this year, there were 11.7 lakh Internet trading accounts registered with the NSE, of
which roughly 9.5 lakh are unique users. It's still a small proportion of the estimated 3 crore Internet
users in the country. As more surfers take to trading online, analysts expect their number to keep
doubling every year until 30-40 per cent of India's overall trades are done online, as is the case in
some mature Internet markets like South Korea's.

The Internet's effect here has more to do with the bandwidth it has created for both brokers and
clients. Banga, director of India bulls offers an example. "Traders from Ajmer use our online platform.
It would otherwise have been prohibitively loss-making to open a branch there." Thanks to the new
channel, volumes are growing faster in the non-metros, where transparency is low in offline
trading. "These customers were made to pay higher charges by small brokers, since they weren't
aware of the market rates," says Vikas Shankar of Sharekhan.com. That is one of the reasons why
more than 60 per cent of Share khan’s online trading turnover comes from non-metros.

Formation of the National Stock Exchange (NSE):

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market
trading system on par with the international standards. On the basis of the recommendations of high-
powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by
Industrial Development Bank of India, Industrial Credit, and Investment Corporation of India,
Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and
others.

Trading at NSE can be classified under two broad categories :

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions and
corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper, certificate of
deposit, etc.

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There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of themselves and
their clients. Participants include trading members and large players like banks who take direct
settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism, which
adopts the principle of an order-driven market. Trading members can stay at their offices and execute
the trading, since they are linked through a communication network. The prices at which the buyer
and seller are willing to transact will appear on the screen. When the prices match the transaction will
be completed and a confirmation slip will be printed at the office of the trading member.

Company Profile

Share khan Ltd. Is one of the leading retail stock broking house of SSKI Group which is running
successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI Group,
which has over eight decades of experience in the stock broking business. Share khan offers its
customers a wide range of equity related services including trade execution on BSE, NSE,
Derivatives, depository services, online trading, investment advice etc. The firm’s online trading
and investment site - www.sharekhan.com – was launched on Feb 8, 2000. The site gives
access to superior content and transaction facility to retail customers across the country. Known for
its jargon-free, investor friendly language and high quality research, the site has a registered base of
over one lakh customers. The content-rich and research oriented portal has stood out among its
contemporaries because of its steadfast dedication to offering customers best-of-breed technology
and superior market information. The objective has been to let customers make informed decisions
and to simplify the process of investing in stocks.

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On April 17, 2002 Share khan launched Speed Trade, a net-based executable application that
emulates the broker terminals along with host of other information relevant to the Day Traders. This
was for the first time that a net based trading station of this caliber was offered to the traders. In the
last six months Speed Trade has become a de facto standard for the Day Trading community over
the net.

Share khan’s ground network includes over 800 centers in more than 300 cities in India which provide
a host of trading related services.

Share khan has always believed in investing in technology to build its business. The company has
used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,
Microsoft, Cambridge Technologies, Nexgenix, Vignette, VeriSign Financial Technologies India
Ltd, Spider Software Pvt. Ltd. To build its trading engine and content. The Morakhiya family holds a
majority stake in the company. HSBC, Intel & Carlyle are the other investors. With a legacy of
more than 80 years in the stock markets, the SSKI group ventured into institutional broking and
corporate finance 18 years ago. Presently SSKI is one of the leading players in institutional broking
and corporate finance activities. SSKI holds a sizeable portion of the market in each of these
segments. SSKI’s institutional broking arm accounts for 7% of the market for Foreign Institutional
portfolio investment and 5% of all Domestic Institutional portfolio investment in the country. It has 60
institutional clients spread over India, Far East, UK and US. Foreign Institutional Investors generate
about 65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The
Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its credit, in
terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity
deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison,
Planetarium, and Shopper’s Stop.

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Profile Of The Company

Name of the company : Share khan ltd.

Year of Establishment : 1925

Headquarter : Share Khan SSKI

A-206 Phoenix House

Phoenix Mills Compound

Lower Parel

Mumbai-Maharashtra, INDIA- 400013

Nature of Business : Service Provider

Services : Depository Services, Online Services

and Technical Research

Number of Employees : Over 3500

Website : www.sharekhan.com

Slogan : Your Guide to The Financial Jungle.

ACHIEVEMENTS OF SHAREKHAN:

 A Rated among the top 20 wired companies along with Reliance, HUJl, Infosys, etc by
‘Business Today’, January 2004 edition.
 Awarded ‘Top Domestic Brokerage House’ four times by Euro money and Asia money.
 Pioneers of online trading in India amongst the top 3 online trading websites from India. Most
preferred financial destination amongst online broking customers.
 Winners of “Best Financial Website” award.
 India’s most preferred brokers within 5 years. “Awaaz customers Award 2005”.

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Future Plans:

 2, 00,000 plus retail customers being serviced through centralized call centers/ web solutions.
 Branches / Semi branches servicing affluent / aggressive traders through high skill financial
advisor.
 250 independent investment managers/ franchisee servicing 50,000 highly valued clients.
 New initiatives Portfolio management Services and commodities trading.

Vision:

“To be the best retail brokering Brand in the retail business of stock market.”

Mission:

“To educate and empower the individual investor to make better investment decisions through quality
advice and superior service.”

Share khan is infect:

 Among the top 3 branded retail service provider.

 No. 1 player in the online business.
 Largest network of branded broking outlets in the country serving more than 7, 00,000 clients.

A share khan outlet offers the following services:

 Online BSE and NSE executions (through BOLT and NEAT terminals)
 Free access to investment advice from share khan’s Research team.
 Share khan value line (a monthly publication with reviews of recommendations stocks to watch
out for etc.)
 Daily research reports and market review (High Noon & Eagle Eye)
 Pre-market Report
 Daily trading calls based on Technical Analysis
 Cool trading products (Daring Derivatives and Market Strategy)
 Personalized Advice
 Live Market Information

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 Depository Services: Demat & Remat Transactions

 Derivatives Trading (Futures and Options)
 Commodities Trading
 IPOs & Mutual Funds Distribution
 Internet-based Online Trading: Speed Trade

REASON TO CHOOSE SHAREKHAN LIMITED

Experience:

SSKI has more than eight decades of trust and credibility in the Indian stock market. In the
Asia Money broker's poll held recently, SSKI won the 'India's Best Broking House for 2004 award.
Ever since it launched Share khan as its retail broking division in February 2000, it has been
providing institutional level research and broking services to individual investors.

Technology:

It’s online trading account one can buy and sell shares in an instant from any PC with an internet
connection. One can get access to its powerful online trading tools that will help him take complete
control over his investment in shares.

Accessibility:

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors.
These services are accessible through its centers across the country over the internet (through the
website www.sharekhan.com) as well as over the Voice Tool.

Knowledge:

In a business where the right information at the right time can translate into direct profits, one can get
access to a wide range of information on Share khan limited’s content-rich portal. One can also get a
useful set of knowledge-based tools that will empower him to take informed decisions.

Convenience:

One can call its Dial-N-Trade number to get investment advice and execute his transactions. Share
khan ltd. has a dedicated call-centre to provide this service via a Toll Free Number 1800-22-7500 &
1800-22-7050 from anywhere in India.

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Customer Service:

Share khan limited’s customer service team will assist one for any help that one may require relating
to transactions, billing, demat and other queries. Its customer service can be contacted via a
toll-free number, email or live chat on www.sharekhan.com.

Investment Advice:

Share khan has dedicated research teams of more than 30 people for fundamental and technical
researches. Its analysts constantly track the pulse of the market and provide timely investment advice
to its clients in the form of daily research emails, online chat, printed reports and SMS on their mobile
phone.

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED:

The different types of products and services offered by Share khan Ltd. are as follows:

 Equity and derivatives trading

 Depository services
 Online services
 Commodities trading
 Dial-n-trade
 Portfolio management
 Share shops
 Fundamental research
 Technical research

Financial products available at Share Khan:

 Equity
 Derivatives
 Mutual funds
 IPOs

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 Bonds

SWOT ANALYSIS:
Strengths:

 It is a pioneer in online trading with a turn over of Rs.400crores and more than 800
peoples working in the organization.
 SSKI the parent company of Share Khan has more than eight decades of trust and credibility
in the Indian stock market. In the Asian Money Broker’s poll SSKI won the “India’s best broking
house for 2004” award.
 Share Khan provides multi-channel access to all its customers through a strong online
presence with www.sharekhan.com, 250 share shops in 130 cities and a call-center based
Dial-n-Trade facility
 Share Khan has dedicated research teams for fundamental and technical research. Which
constantly track the pulse of the market and provide timely investment advice free of cost to its
clients which has a strike rate of 70-80%.

Weaknesses:

 Localized presence due to insufficient investments for country wide expansion.

 Lack of awareness among customers because of non-aggressive promotional strategies (print
media, newspapers, etc).
 Lesser emphasis on customer retention.
 Focuses more on HNIs than retail investors which results in meager market-share as
compared to close competitors.

Opportunity:

 With the booming capital market it can successfully launch new services and raise its client’s
base.
 It can easily tap the retail investors with small saving through promotional channels like print
media, electronic media, etc.
 As interest on fixed deposits with post office and banks are all time low, more and more small
investors are entering into stock market.
 Abolition of long term capital gain tax on shares and reduction in short term capital gain
is making stock market as hot destination for investment among small investors.

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 Increasing usage of internet through broadband connectivity may boost a whole new breed of
investors for trading in securities.

Threats:

 Aggressive promotional strategies by close competitors may hamper Share Khan’s acceptance
by new clients.
 Lack of sufficient branch-offices for speedy delivery of services.
 Other players are providing margin funds to investors on easy terms where as there is no such
facility in share khan.
 More and more players are venturing into this domain which can further reduce the earnings of
Share Khan.

ABSTRACT

Real Estate:

The Indian economy is steadily moving forward on its path to prosperity with economic development
being the focal point of the progress. In the post liberalization era, India has attracted huge quantum
of foreign direct investment on account of its excellent economic performance and recently real estate
sector has also been deregulated and liberalized. Today India is seen as a prime destination for
investment by overseas investors across the board. India's favorable demographic and economic
scenario makes it an attractive destination for the real estate investors.

Key Growth Drivers:

The propellants for the real estate sector are

 Growth of India's middle class creating demand for housing.

 Strong demographic impetus: India has the second largest population in the world and the
growth rate of population is still rapid.
 Rising FDI levels has increased commercial space requirements by foreign firms.
 Expansion of organized retail sector.

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 Easy availability of finance.

Retail Real Estate:

Today, the face of Indian retail sector is changing. The traditional stores are being replaced by retail
chains, shopping centers, supermarkets and hypermarkets. From the beginning of 2006, the
Government has allowed foreign direct investment in retailing, with 51 percent participation. The
retailing sector is projected to reach US$ 23 billion by 2010. This growth in the retail sector will
inevitably provide strong impetus to the retail real estate.

Objectives

 To study the technical and fundamental analysis.

 To study real estate industry and its impact on Indian economy.
 How fundamental and technical analysis useful to the investors while taking investment
decisions.
 Apart from this we intend to create a virtual portfolio for long term and short term Investors.

Introduction to Real Estate

Real estate is a business, not a profession. Real estate is sometimes inaccurately spoken of as a
profession, but it is essentially a business. A profession applies science, art or learning to the use of
others, the profit to the professor or person applying it being incidental; whereas a business is
engaged in primarily for profit, and the profit is to the one engaging in the business.

A profession implies professed attainment in special knowledge. A person may engage in business
with or without special knowledge and no one else is concerned with the question whether he has any
knowledge of the business, because no one else is affected by the result. If he is successful the
rewards are his; if he fails he bears the loss. But let him attempt to practice a profession and, if he be
unskillful, others are directly affected, and the fact that his reward is diminished thereby is merely
incidental to the fact that others suffer.

Ethics of the business — But whether real estate be a business or a profession has no connection at
all with the body of ethics governing it.

Every business can be conducted upon a plane ethically as high as the ideals of any profession, and
the men who have been conspicuously successful in the real estate business have attained success
because they have applied to their business the highest ideals of commercial fair dealing. This does
not mean that there is any ethical requirement for the seller or the purchaser to give away anything

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which belongs to him, or for either one to disclose to the other his necessity for selling or his
requirements for buying; but the bargain having been made, it is absolutely necessary that it be lived
up to by both parties, according to its intent; and, if there be any doubt of the intent of the bargain as it
is expressed in writing, that the spirit of the transaction be carried out rather than that the catch words
of a written instrument should govern. Cases are frequent of men who to their own detriment perform
the thing which they have promised to do although not legally obligated, and the bigger and more
successful the man who makes the promise the more surely will it be carried out. Important
obligations are often incurred upon the mere promise of a well-known man to sell an important piece
of property at a definite price, although no legal and enforceable obligation exist; and the promise is
always redeemed if it is made by a man who knows the business, and it is redeemed not merely from
altruistic motives, but also for purely business reasons.

Divisions of the business — The principal divisions of the real estate business are investment,
operation and agency. These differ from one another according to the aims of the persons engaging
in them and the methods by which those persons expect to make their gains. To conduct either of the
first two divisions of the business, investment or operation, actual money capital is required. The most
important capital in the agency business is the good will of its customers, and that can be husbanded,
increased and made very valuable.

Real estate, property and real property defined.—Real estate is a form of property. Property is the
right to possess and use. Real property, a technical legal word, is the right to possess and use land
for a time which may last for a life or lives or longer. All other property is, in the eyes of the law,
personal property. A lease for 999 years, which is not measured by any life, but which must expire at
a definite time, is less in term of time, in the eyes of the law, than a conveyance of a piece of land, the
duration of which is measured by a life or by several lives.

When we speak of real property we use the words in their technical legal sense. When we speak of
real estate as a commodity and as a business, it embraces the various parts of the business which
engage the attention of those who follow it as a vocation, and includes interests which in the eye of
the law are not real property, as for example, leases, mortgages, etc.

Every business has in view finally, commercial transactions resulting in the transfer of property of
some kind; so in our study of the real estate business we have in mind the transfer of title to real
property, and among the various subjects we shall consider, are the interests which there may be in
land, limitations on ownership, the making of a contract, the conveyances used, the liens which may
affect a piece of property—all of which have an important relation to a final commercial transaction,
the transfer of title to real property.

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Company Introduction
(1) DLF LTD.

Chairman: - MR. K.P.SINGH

Company Secretary: - MR. HARI HARAN

Registered Office: - Shopping Mall, 3rdFloor

Arjun Marg, Phase-1,
DLF City,
Gurgaon-122 002 (Haryana)

Head Office: - DLF Centre,

Sansad Marg,
New Delhi-110 001

Vision: - To contribute significantly to building a new India and to

Become the world’s most valuable real estate company.

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Mission:- To build world class real estate businesses across five

Business lines with the highest standards of professionalism,
Ethics, quality and customer service
DLF LTD.
Going back to over six decades, the birth and history of the DLF Limited came to known. Late
Chaudhury Raghvendra Singh founded it as Raisina Cold Storage and Ice Company Private Limited
and Delhi Land and Finance Private Limited in 1946 and later on KP Singh promoted the DLF
Limited. The company was incorporated in the year 1963 as American Universal Electric (India)
Limited.

The DLF group is a leading real estate developer in India. The group has over 224 million sq. ft. of
existing development and 748 million sq. ft. of planned projects. DLF is the company, which
committed to quality, trust and customer sensitivity, and deliver on promises with agility, financial
prudence and in tune with the highest global standards.
The company has also entered into several strategic alliances with global industry leaders in different
segment. DLF developed some of the first residential colonies in Delhi such as Krishna Nagar in East
Delhi, which was completed in the year 1949. The Homes business line involves a wide range of
products including condominiums, duplexes, row hoses and apartments of varying sizes, with a focus
on the higher end of the market. DLF ‘Super brand' ranking company, is the only company in India in
the Consumer validated category from the real estate sector to have been awarded this distinction.

During the year 1969 to 1974, the company formulated 22 urban colonies. The first Landmark real
estate developments project DLF Qutab Enclave was commenced in them year 1975, which has now
evolved into DLF City. DLF City is spread over 3,000 acres in Gurgaon and is an integrated township,
which includes residential, commercial and retail Properties in a modern city infrastructure with
schools, hospitals, hotels and shopping malls. It also boasts of the prestigious DLF Golf and Country
Club with night golfing facilities. In 1979, DLF United Limited amalgamates with American Universal
Electric (India) Limited. The company was renamed in 1980 as DLF Universal Electric Limited.
Subsequently, on May 28, 1981, 'DLF Universal Electric Limited' was again renamed as DLF
Universal Limited. In 1982, the company ventured into Group Housing Projects. During the period
1989, the company came to the campaign in Community Shopping Centers. Entry in 1st "A" office
space 'DLF Centre' was took place in 1991 at New Delhi.
Constructed the 'DLF Corporate Park', first office Complex at DLF City Gurgaon, Haryana was in the
year 1996. As on 1999, the DLF Industries Limited (DLF Group Company) was amalgamated with
DLF Universal Ltd. The next stride of the company was doorway organized retail complexes in the
year 2002. In 2003, the National Expansion into 11cities- IT parks, Homes, Retail, Special Economic
Zones (SEZs) and Hotels was emerged.
The company launched 12-acre Cyber City and also initiated IT parks in various metros. The
Premium Residential Complex launched in Magnolia by the company in the year 2005, received

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'Corporate Buildings Award' instituted by 'Indian Architect and Builder', a publication of Jasubhai
Media Group, Mumbai in the same year and in 2006 DLF expanded in 29 cities across nation,
launched premium residential complex (park place) and joint venture signed between DLF Universal
Limited and U.K. based Laing O'Rourke Plc to form DLF Laing O'Rourke (India) Limited. On May 27,
2006, the company changed its name from DLF Universal Limited to DLF Limited. The alliance
agreement signed between DLF Ltd and Hilton International Company to incorporate a joint venture
company in India to develop, own and acquire 50 to 75 hotels and services apartments and also a
joint venture with WSP Group Plc. for the purposes of providing engineering and design services,
environmental and infrastructure facilities and also project management services in the same year.
The U.S.-based Prudential Financial, Inc (PFI) and the DLF Group, India's largest real estate
developer, signed an agreement to establish a joint venture company in India for provide a broad
array of mutual fund and investment products, including domestic and eventually international mutual
funds to Indian retail and institutional clients under in the name of "DLF Pramerica Asset Managers
Private Limited" on December 2007. As on January 2008 the company signed a Memorandum of
Understanding (MOU) with Gayatri Projects Ltd (GPL), one of the leading infrastructure companies in
India, to develop roads and highway projects across the country worth at least Rs 1,000 crore every
year and on April of the same year DLF Ltd and Hilton Hotels Corporation in India have signed
management agreements involving seven new hotel developments in the pipeline. This marks the
second stage in the DLF-Hilton Joint Venture Company's overall strategic development plans to build
and develop 75 hotels in India in the next five to seven years. DLF Ltd, with over six decades of
experience, is focusing on strengthening its lateral and vertical business drivers and charted it next
growth steps to retain its leadership position in India, already a major player in locations across the
country, including metro and key urban centers. The group is capitalizing on emerging market
opportunities to deliver high-end facilities and projects to its wide base of customers by constantly
upgrading its internal skills and resource capabilities. In line with its current expansion plans, the DLF
Group has over 748 million sq. ft. of development across its businesses, including developed, on
going and planned projects. This land bank is spread over 32 cities, mostly in metros and key urban
areas across India.
To increase in corporate and consumer incomes, as well as foreign investment, DLF sees significant
opportunities for growth in its three primary businesses such as Residential, Commercial and Retail
Properties Business. DLF's mission is to build a world-class real-estate development company with
the highest standards of professionalism, ethics and custom service.

Major Achievements of DLF:

DLF is the only company in India in the Consumer validated category from the real estate sector to
have been awarded 'Super brand' ranking.
Received the 'Corporate Buildings Award' in March 2005 instituted by the leading construction design
magazine 'Indian Architect and Builders'
Awarded by Haryana Urban Development Authority (HUDA) for 'Excellence in Horticulture
Preservation'

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(2) UNITECH LTD.

Uniworld City, Mohali

Chairman:- MR. RAMESH CHANDRA

Company Secretary: - MR. DEEPAK JAIN

Registered Office:- 6,Community Centre,

Saket Place,
New Delhi-110017
Head Office: - D-3, District Centre,
Saket Place,
New Delhi-110017

UNITECH LTD.

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Unitech India Limited is one of the leading Indian real-estate development and town planning
companies. It is estimated to be around Rs. 1600 Crores , one of the biggest real estate major in the
country. Unitech was started in 1972 as a consultancy firm for foundation engineering. In last 30
years of its existence, Unitech has created a special place for itself amongst the builders of the
country. Unitech Builders are now known for its wonderful townships, entertainment hubs, recreation
centers, hotels, resorts, sub-cities development, shopping malls and residential units. In Gurgaon, the
Unitech Builders are the second most successful group after DLF. The Gurgaon Mall, Greenwood
Center, Gurgaon Central at Gurgaon and the Amusement Park are the evident examples of the
excellence of Unitech in the city.

INDIA’S REAL GDP FROWTH RATE

The current economic crisis that has been observed around the entire globe has affected the
emerging economies as well. India on the whole as per the economic indicators is not in recession
but is definitely facing a slowdown with the rate of Growth of GDP would definitely be affected.
However the general consensus is that we have already bottomed out and now the only way for the
global economy would be up. Despite the developments the analysts believe that the global economy
is not yet out of the woods. The unemployment rate in the developed countries is continuously on the
ascent which is not a very good sign.

INDIAN PERSPECTIVE:

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The scene for India is not as ominous as the rest of the world due a variety of reasons the most
important being the relatively strong domestic demand & the burgeoning Indian middle class. India's
GDP growth in 2008-09 was one of the highest in the world and reflected the resilience of the
country's growth impulses to a severe external shock as well as the impact of the policy response to
contain the adverse effects of the global economic crisis on domestic growth. Even in the recently
concluded meeting of the 100 CEOS & the Finance Minister, the outlook for the Indian economy has
been bullish even though the growth rate for the current fiscal quarter was expected to drop to 6%,
the annual growth rate in GDP is expected to be at an optimistic 9%.

AGRICULTURE

Even though the agriculture sector saw a bounce back in the last quarter of 2008-09 the current
monsoon conditions are threatening the overall recovery of the economy. Delayed as well as
inadequate southwest monsoon has put the kharif crops in jeopardy which accounts for 57% of the
total agricultural produce. The food management is a big issue facing the country that needs to be
tackled & which might act as a drag on the overall economic growth.

INDUSTRIAL

The industries showed a good growth in July 2008, but registered a sharp decline in the second half
of the year with negative growth in December 2008 & March 2009. The infusion of liquidity in order to
kick start the economy has its effect on the IIP with some of the sectors showing a phenomenal
growth. The electricity sector recorded an appreciable increase whereas the mining & manufacturing
related to food products has shown a decline.

INFRASTRUCTURE

The core infrastructure sector grew by a good 4.8% vis-a-vis the 3.5% growth shown in the
corresponding sectors for the previous year. The sectors which have shown a growth include the
cement, coal & electricity. This augurs well for India in the long run as the fiscal stimulus would
enable to complete the twin job of putting the economy back on the path of recovery coupled with the
development of the infrastructure in India which has been a laggard for a long time.

MONETARY CONDITIONS:

The contractionary policy that the RBI has adopted to control the inflation would affect the real estate
sector.

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RBI hikes short term rates : Interest rates on home, car and other retail loans are set to firm up in
near future as the Reserve Bank of India on Friday hiked the rates at which it takes deposits, and
lends short-term funds to banks by 25 basis points.  took the decision to tighten money supply for
containing the rising inflation, which has touched 9.9% in February.

CMD of a public sector bank said that RBI’s decision to hike the rates is a clear indication to banks to
raise their lending rates for containing inflation. However, he refused to give the time line for hiking of
the rates, saying that it will be done sooner than later. However, he maintained around quarter a
percentage points increase in the lending rates across the board.

 Standard Chartered’s country head, Neeraj Swaroop, also termed RBI’s decision to hike rates as a
signal to increase the lending rates.

As per the above news Real estate sector noticed a fall in stock prices as interest rates are likely to
hike.

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MACROECONOMIC OUTLOOK
The macroeconomic outlook shown by the various global agencies indicates that there is going to be
recessionary pressures that would remain prevalent throughout 2009 even though there are some
indicators that are showing positive signs. The IMF has revised the growth projection for India from
4.5% to 5.4% for the year 2009 even though the finance minister remains optimistic of enjoying a 9%
growth.
The various surveys that were done by Dun & Bradstreet, CII & NCAER indicate that there would
definitely be a change in the business sentiment with the gradual return to optimism for the business.
This business optimism is also seen through the huge rally that has been observed on the BSE &
NSE.

Industry Analysis

The Real Estate industry in the recent past has been synonym to success. The Real Estate industry
has been growing in the tough times and supported the Indian economy to an extent that it today
alone stands at the second position in Indian Economy. With large revenue of twelve million dollars
the Real Estate industry today is estimated to further expand at the rate of thirty percent per annum.
With such huge growth facts and figures, the Real Estate Industry has now become a hub for all the
aspiring professionals and attracts a large investment either long term or short term. The Real state
sector offers various services to the clients and to other industries that revolve around the property. It
seems to be have not possible if with the out the Real Estate sector that we could enjoy the lavish
apartments and excellent buildings for the various income groups that we notice walking down the
street today. It is further the bless of the Real Estate Industry that we enjoy such marvelous
Infrastructure, as the Infrastructure and the Real Estate Industry goes hand in hand making the
present India a viable destination for growth and prospects of growth. The Real Estate Industry being
the second largest industry in the Indian economy salutes and grants an equal share of importance to
the related industries who have contributed in the making the Real Estate industry a promising
industry for the Indian Economy to Rely on. Hence all the aligned industries like Interior Designing,
Architecture, Builders, Manufacturers and other related fields are granted an equal importance and
respect while one can talk about the Real Estate sector alone.

The Real Estate industry has contributed to the growth of the Indian economy without any doubt but
on the same hand they have also contributed to the growth of an individual by supporting them with
the excellent jobs in the sector and prompting the knowledge and expertise of the existing key players
in the market. Hence the Real Estate industry has played a dual role in the growth factor as well apart
from maintaining a large growth and development rate of India. It is the real Estate Industry that has
shaped previous India to a new aged modern India providing excellent facility with the high
technology mechanism with the vision of growth of the sector with the growth of India. Today we find
various sectors associating with the Real Estate that are partly or completely responsible to work
hand in hand with the Real Estate industry. To conclude one can say that the Real Estate industry is
blessed in the modern age to not only the human kind but also to the nation. With tremendous growth

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and development it has signified itself to be a potential sector that can grow and provide support to
one and all with the services and development in various methods and factors. The Real Estate
industry aiming to gain the top position would develop in the future economy time with aim to provide
home by 2020, which is also now an aim for largest year long festival of Real Estate, The Real India
Fest.

EXISTING PLAYERS IN REAL ESTATE INDUSTRY

Followings are the existing players in the Indian real estate industry.

(1) KOLTE PATIL DEV.

(2) ORBIT CORPORATION

(3) PENINSULA LAND

(4) ACKRUTI CITY

(5) HDIL

(6) ANSAL PROPERTIES

(7) PARSVNATH DEVELOPERS

(8) ANANT RAJ INDUSTRY

(9) OMAXE

(10) DLF

(11) UNITECH

(12) PHOENIX MILLS

(13) GMR INFRASTRUCTURE

(14) IVRCL INFRA

(15) NAGARJUNA CONSTRUCTURE

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(16) HCC

(17) JP ASSOCIATES

(18) SOBHA DEVELOPERS

(19) INDIABULS REAL ESTATE

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FIVE FORCE MODEL OF REAL ESTATE INDUSTRY THE FIVE

THE FIVE FORCES:-

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INDUSTRY COMPETITORS

Rivalries naturally develop between companies competing in the same market. Competitors use
means such as advertising, introducing new products, more attractive customer service and
warranties, and price competition to enhance their standing and market share in a specific industry.
To Porter, the intensity of this rivalry is the result of factors like equally balanced companies, slow
growth within an industry, high fixed costs, lack of product differentiation, overcapacity and price-
cutting, diverse competitors, high stakes investment, and the high risk of industry exit. There are also
market entry barriers.

PRESSURE FROM SUBSTITUTE PRODUCTS

Substitute products are the natural result of industry competition, but they place a limit on profitability
within the industry. A substitute product involves the search for a product that can do the same
function as the product the industry already produces. Porter uses the example of security brokers,
who increasingly face substitutes in the form of real estate, money-market funds, and insurance
Substitute products take on added importance as their availability increases.

BARGAINING POWER OF SUPPLIERS

Suppliers have a great deal of influence over an industry as they affect price increases and product
quality. A supplier group exerts even more power over an industry if it is dominated by a few
companies there are no substitute products, the industry is not an important consumer for the
suppliers, their product is essential to the industry, the supplier differs costs, and forward integration
potential of the supplier group exists. Labor supply can also influence the position of the suppliers.
These factors are generally out of the control of the industry or company but strategy can alter the
power of suppliers.

BARGAINING POWER OF BUYERS

The buyer's power is significant in that buyers can force prices down, demand higher quality products
or services, and, in essence, play competitors against one another, all resulting in potential loss of
industry profits. Buyers exercise more power when they are large-volume buyers, the product is a
significant aspect of the buyer's costs or purchases, the products are standard within an industry,
there are few changing or switching costs, the buyers earn low profits, potential for backward
integration of the buyer group exists, the product is not essential to the buyer's product, and the buyer
has full disclosure about supply, demand, prices, and costs. The bargaining position of buyers
changes with time and a company's (and industry's) competitive strategy.

POTENTIAL ENTRANTS

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Threats of new entrants into an industry depend largely on barriers to entry. Porter identifies six major
barriers to entry:
 Economies of scale, or decline in unit costs of the product, which force the entrant to enter on
a large scale and risk a strong reaction from firms already in the industry, or accepting a
disadvantage of costs if entering on a small scale.
 Product differentiation, or brand identification and customer loyalty.
 Capital requirements for entry; the investment of large capital, after all, presents a significant
risk.
 Switching costs, or the cost the buyer has to absorb to switch from one supplier to another.
 Access to distribution channels. New entrants have to establish their distribution in a market
with established distribution channels to secure a space for their product.
 Cost disadvantages independent of scale, whereby established companies already have
product technology, access to raw materials, favorable sites, advantages in the form
government subsidies, and experience.

PEST ANALYSIS OF REAL ESTATE INDUSTRY

PEST analysis of any industry sector investigates the important factors that are affecting the industry
and influencing the companies operating in that sector. PEST is an acronym for political, economic,
social and technological analysis.

Political factors include government policies relating to the industry, tax policies, laws and regulations,
trade restrictions and tariffs etc.

The economic factors relate to changes in the wider economy such as economic growth, interest
rates, exchange rates and inflation rate, etc.

Social factors often look at the cultural aspects and include health consciousness, population growth
rate, age distribution, changes in tastes and buying patterns, etc.

The technological factors relate to the application of new inventions and ideas such as R&D activity,
automation, technology incentives and the rate of technological change.

The PEST Analysis is a perfect tool for managers and policy makers; helping them in analyzing the
forces that are driving their industry and how these factors will influence their businesses and the
whole industry in general. Our product also presents a brief profile of the industry comprising of
current market, competition in it and future prospects of that sector.

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SWOT ANALYSIS OF REAL ESTATE INDUSTRY

Study of the factors which may have an impact on business or industry either in a positive or in a
negative way.

Strength is defined as any internal asset, technology, motivation, finance, business links, etc that can
help to exploit opportunities and to fight off threats.

Weakness is an internal condition which hampers the competitive position or exploitation of

opportunities.

Opportunity is any external circumstance or characteristic which favors the demand of the system or
where the system is enjoying a competitive advantage.

Threat is a challenge of an unfavorable trend or of any external circumstance. Which will unfavorably
influence the position of the system?

STRENGTH:-

 Employment and training opportunities in the field of construction.

 Private sector housing boom and commercial building demands.

 Construction of the multi building projects on the feasible locations in the country.

 Good structured national network facilitates the boom of construction industry.

 Low cost well- educated and skilled labour force is now widely available across the country

 Sufficient availability of raw material and natural resources in the country is supportive for the
industry.

 Real estate development is on high and it is attracting the focus of the industry.

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WEAKNESSES:-

 Distance between construction projects reduces business efficiency.

 Training itself has become a challenge.

 Changing skills requirements and an ageing workforce may accentuate the skills gap.

 Improve in long-term career prospects is highly required to encourage staff retention and new
entrants.

 External allocation of large contracts becomes difficult.

 Lack of clearly define processes and procedures for construction and its management.

 Huge amount of money need to be invested in this industry and towards construction.

OPPORTUNITIES:-

 Continuous private sector housing boom will create more construction opportunities.

 Public sector projects through Public Private Partnerships will bring further opportunities.

 Developing supply chain through involvement in large projects is likely to enhance the chances
in construction.

 Renewable energy projects will offer opportunities to develop skills and capacity in new
markets.

 More flexible training delivery techniques are now available.

 Financial supports like loan and insurance and growth in income of people is in support of
construction industry.

 Historical cultural heritages like the TAZ MAHAL encourage and provide a creative platform for
the industry.

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 Remote areas in the country are easily accessible and plenty of land is available in the
country.

THREATS:-

 Long term market instability and uncertainty may damage the opportunities and prevent the
expansion of training and development facilities.

 Current economic situation may have an adverse impact on construction industry.

 Political and security conditions in the region and Late legislative enforcement measures are
always threats to any industry in India.

 Infrastructure safety is a challenging task in construction industry.

 Lack of political willingness and support on promoting new strategies

 Natural abnormal casualties such as earth quake and floods are uncertain and can prevent the
construction boom. Inefficient accessibility in planning and concerning the infrastructure and
signs.

 Competitors are emerging in the industry by leaps and bounds.

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COMPANY ANALYSIS

In this project report for company analysis we have selected two major real estate companies which
are as follows:

1) DLF LTD.

2) UNITECH LTD.

DLF LTD.

GENERAL INFONMATION:-

Incorporation Year 1963

Registered Office Shopping Mall 3rd Floor, Arjun Marg Phase-I DLF City,
Gurgaon, Haryana - 122002

Telephone 91-124-4334200

Fax 91-124-2355581

Chairman K P Singh

Managing Director T C Goyal

Company Secretary Subhash C Setia

Auditor Walker Chandiok & Co

Face Value 2

Market Lot 1

Listing Mumbai, NSE

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Registrar Karvy Computershare Pvt. Ltd

Plot No 17-24, Vittal Rao Nagar, Madhapur, and Hyderabad-500081

UNITECH LTD.

GENERAL INFORMATION:-

Incorporation Year 1971

Registered Office 6 Community Centre, Saket,

New Delhi,
New Delhi-110017

Telephone 91-11-26857331/26857330

Fax 91-11-26857338

Chairman Ramesh Chandra

Managing Director Sanjay Chandra

Company Secretary Deepak Jain

Auditor Goel Garg & Co.

Face Value 2

Market Lot 1

Listing Mumbai, NSE

Registrar Alankit Assignments Ltd

2E/21 Alankit House, Anarkali Market,
Jhandewalan Extn, New Delhi - 110055

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RATIO ANALYSIS
The analysis of financial statements aims to study the relationship amongst various factors in a
business as disclosed in the financial statements for particular period trend of these factors can be
studied through the examination of such financial statements over a period of time. The study can be
done from different angles for a number of different end users of the financial data of a company.
These end users may include shareholders, creditors, management, government and the financial
analyst. The different end users are interested in different information with different objective. For
example a shareholder is interested in the yield and safety of his capital invested in the company. His
main concern is with the profitability and distribution of dividend apart from enhancement of the net
worth. Creditors view the company’s financial data from the judging its repayment capacity and ability
of services the debt; where as a short-term creditor is interested in the company’s liquid position,
which he estimates by efficient fund and generation of competing profitability. In this way end users
strive to analyses the data to fulfill their own respective objectives.

The most easy way to carry on such analysis is way of ratios, which help in reading the relationship
between factors at a sight, because interpretation of financial data shown in absolute figures
becomes difficult. To study the changes over the years in the financial data is rendered easy by the
use of ratio analysis of financial data. Ratio measure the relationship between two figures and which
two figures and which two figures are compared with each other depends upon the objective of
comparison.

Debt-Equity Ratio:-
This ratio is only another form of proprietary ratio and establishes relationship between the outside
long-term liabilities and owner’s funds. It shows the proportion of long-term External Equities and
Internal Equities.

Long term liabilities

= ----------------------------- * 100
Shareholders’ funds

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YEAR DLF UNITECH

2007 7.54 3.1

2008 1.27 3.55

2009 0.76 1.6

DEBT EQUITY RATIO

8

DLF
6

UNITECH
3

0
2007 2008 2009

YEAR

Comment:-
Debt-Equity ratio shows the proportion of debt and equity used by the company in its financial
structure. The above graph shows that in the financial year 2007 the debt-equity ratio of UNITECH
and DLF is 3.1 and 7.54 respectively, which shows that DLF is using more debt in its financial

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structure as compare to the UNITECH in proportion to shareholders funds. In the financial year 2008
and 2009 the UNITECH is using more debt in its financial structure as compare to DLF in proportion
to shareholders funds. A wise mix of debt and equity can increase the return on equity for two
reasons:

1. Debt is generally cheaper than equity.

2. Interest payments are tax-deductible expense, whereas dividends are paid from taxed profits. In
addition, dividend payment attracts dividend distribution tax.

But excessive use of debt financing is risky. A company has a legal obligation to make interest
payments and to repay the principle at the due dates. If a company takes on so much debt that it
becomes unable to make the required interest and principal disbursements on time. The ratio
indicates the extent of use of financial leverage. A high debt-to-equity ratio indicates aggressive use
of leverage, and a highly leveraged company is more risky for creditors. A low ratio on the other hand,
suggests that the company is making little use of leverage and is too conservative. Here we can say
in 2007 DLF had a very high ratio hence DLF was a more risky firms for creditors. And at the time of
recession DLF decided to reduce their risk and they started paying their debts by selling their assets
and revenues. On the other hand in 2008 Unitech had a high debt-to-equity ratio and soon they
realize the risk and they also reduced their debt-to-equity ratio in 2009.

Current Ratio:-

This most widely used ratio shows the proportion of current assets to current liability. It is also known
as ‘Working Capital Ratio’ as it is a measure of working capital available at a particular time. The ratio
is obtained by dividing current assets by the current liabilities.

Current Assets
= ------------------------------
Current Liabilities

YEAR DLF UNITECH

2007 1.91 1.31

2008 1.93 1.37

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2009 2.34 1.45

CURRENT RATIO

2.5

1.5

DLF
UNITECH
1

0.5

0
2007 2008 2009

YEAR

Comment:-

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The current ratio indicates the current assets and liabilities that company is using. Above graph
shows that DLF is using more current assents as compare to the UNITECH in proportion to the
current liabilities in the financial years 2007, 2008 and 2009. It is widely used indicator of a company’s
ability to pay its debts in short-term. It shows the amount of current assets a company has per rupee
of current liabilities. Here ‘current assets’ include loan and advances and ‘current liabilities’ include
provisions.
The increase in DLF current ratio means that in 2009 the company had more current assets to meet
its current liabilities. This is the good news for the company’s short- term creditors. So we can say
that DLF is in more strong position to cover it’s liabilities.

Debtors’ Ratio:-

The ratio shows the number of days taken to collect the dues of credit sales. It shows the efficiency or
otherwise of the collection policy of the enterprise.

Debtors + Bills Receivable

= ----------------------------------------- * 365 days
Credit sales

YEAR DLF UNITECH

2007 11.32 28.77

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2008 6.67 6.7

2009 3.37 2.4

DEBTORS RATIO

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35

30 28.77

25

20
DLF
15 UNITECH
11.32
10
6.67 6.7
5 3.37
2.4

0
2007 2008 2009

YEAR

Comment:-

The debtor’s ratio indicates the credit sales of the company. The number of days taken to collect the
dues of credit sales. The above graph shows that both the companies are reducing the time period to
collect the dues of credit sales. Both the companies has reduced collection period, indicating
improvement in collection. Company who takes fewer days to collect it dues has more turnover of its
money and can invest it further.

Interest Coverage Ratio:-

The interest coverage ratio measures the ability of the company to meet its interest payments arising
from the debt

= Earnings Before interest and taxes (EBIT)

------------------------------------------------

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Interest

YEAR DLF UNITECH

2007 2.75 2.94

2008 7.97 4.47

2009 3.23 2.32

INTEREST COVERAGE RATIO

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6
DLF
5
UNITECH
4

0
2007 2008 2009

Comment:-

The interest coverage ratio indicates the ability of the company to use the debt in its financial
structure. The ability of the company to meet interest payment arising from the debt. In the year 2007
the DLF ratio is lower because in that year co. has used more debt as compare to the shareholders
funds. The graph shows that the ability of interest payment of DLF is higher because of the earnings
of the company as compare to the UNITECH. This is the measure of the protection available to
creditors or payment of interest charges by the company. The ratio shows whether the company has
sufficient income to cover its interest requirements by a wide margin. The interest coverage ratio is
computed by dividing profit before interest and tax by the interest expenses. A high ratio implies
adequate safety for payment of interest even if there were to be a drop in the company’s earnings.

Return on Capital Employed:-

It is an index of profitability of business and is obtained by comparing net profit with capital employed.
The ratio is normally expressed in the percentage.

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Net profit before interest & tax

= -------------------------------------------* 100
Capital Employed

YEAR DLF (%) UNITECH (%)

2007 17.65 54.16

2008 26.34 2.34

2009 12.58 16.14

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60
54.16

50

40

30 DLF (%)
26.34
UNITECH (%)

20 17.65
16.14
12.58
10

2.34
0
2007 2008 2009

Comment:-

The return on capital employed indicates what extent the management of the co. in able to collect
debt from the market. The graph shows that the return on capital employed of UNITECH is some
what higher than the DLF.

NET PROFIT RATIO:-

The ratio is valuable for the purpose of ascertaining the over-all profitability of business and shows
the efficiency or otherwise of operating the business. It is the reverse of the operating ratio. Net Profit

After Interest & Tax

= -----------------------------------------* 100
Net Sales

YEAR DLF (%) UNITECH (%)

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2007 36.01 39.28

2008 46.53 36.76

2009 54.7 40.26

NET PROFIT RATIO

60

50

40

30

20

10

0
2007 2008 2009

YEAR
Comment:-

The net profit ratio indicates the overall profitability of the company. The above graph shows the net
profit of DLF is lower in the year 2007 because the co. has used more debt and interest payment on
the debt. In the year 2008 and 2009 the net profit ratio of DLF is higher than UNITECH.

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P/E RATIO:-

P/E ratio shows the price earning ratio. It take into consideration the market price and earning per
share. The formula is given bellow:

MARKET PRICE PER SHARE

= ---------------------------------------
EPS
DLF % UNITECH %

75% 41.78%

Comment:-
The P/E ratio indicates price earning ratio. The current market price and earning par share is used for
the calculation of P/E ratio. The above graph indicates the price earning ratio of DLF is higher than
UNITECH.

Technical Analysis

What Is Technical Analysis?

Technical analysis is a security analysis technique that claims the ability to forecast the future
direction of prices through the study of past market data, primarily price and volume. In its purest
form, technical analysis considers only the actual price and volume behavior of the market or
instrument. Technical analysts, sometimes called "chartists", may employ models and trading rules
based on price and volume transformations, such as the relative strength index, moving averages,
regressions, inter market and intra-market price correlations, cycles or, classically, through
recognition of chart patterns.
Technical analysis stands in distinction to fundamental analysis. Technical analysis "ignores" the
actual nature of the company, market, currency or commodity and is based solely on "the charts," that
is to say price and volume information, whereas fundamental analysis does look at the actual facts of
the company, market, currency or commodity. For example, any large brokerage, trading group, or
financial institution will typically have both a technical analysis and fundamental analysis team.

Just as there are many investment styles on the fundamental side, there are also many different
types of technical traders. Some rely on chart patterns; others use technical indicators and oscillators,
and most use some combination of the two. In any case, technical analysts' exclusive use of historical

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price and volume data is what separates them from their fundamental counterparts. Unlike
fundamental analysts, technical analysts don't care whether a stock is undervalued - the only thing
that matters is a security's past trading data and what information this data can provide about where
the security might move in the future.

MOVEMENT OF NIFTY AND DLF IN 2008 & 2009

MONTH( 2008 ) NIFTY DLF

JAN 6144.35 1071.25

FEB 5317.25 813.6

MAR 4953 713

APR 4739.55 626.95

MAY 5228.2 721.35

JUN 4739.6 562.4

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JULY 3896.55 362.15

AUG 4413.55 518

SEP 4348.65 495.2

OCT 3950.75 344.05

NOV 3043.85 254

DEC 2682.9 177.7

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JAN(2009 ) 3033.45 292.3

FEB 2766.65 153

MAR 2674.6 149.05

APR 2674.6 177.5

MAY 3654 234

JUN 4529.9 414

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JULY 4340.9 327.95

AUG 4711.4 406

SEP 4625.35 414.15

OCT 5083.4 436.15

NOV 5083.4 340.55

DEC 5122 371.7

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MOVEMENT OF NIFTY AND UNITECH IN 2008 & 2009

MONTH(2008 ) NIFTY UNITECH

JAN 6144.35 507.3

FEB 5317.25 373.2

MAR 4953 373.2

APR 4739.55 275.1

MAY 5228.2 275.1

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JUN 4739.6 275.1

JULY 3896.55 161

AUG 4413.55 168.95

SEP 4348.65 158.7

OCT 3950.75 115.5

NOV 3043.85 48.85

DEC 2682.9 24.25

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JAN( 2009 ) 3033.45 45.5

FEB 2766.65 29.15

MAR 2674.6 26.95

APR 2674.6 37.25

MAY 3654 48.8

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JUN 4529.9 92.7

JULY 4340.9 83.1

AUG 4711.4 94.8

SEP 4625.35 103.65

OCT 5083.4 105.35

NOV 5083.4 75

DEC 5122 89.4

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COMPARISION OF STOCK PRICES OF DLF AND

UNITECH (2008)
2008 DLF UNITECH

JAN 1071.25 507.3

FEB 813.6 373.2

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MAR 713 373.2

APR 626.95 275.1

MAY 721.35 275.1

JUN 562.4 275.1

JULY 362.15 161

AUG 518 168.95

SEP 495.2 158.7

OCT 344.05 115.5

NOV 254 48.85

DEC 177.7 24.25

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2009 DLF UNITECH

JAN 3033.45 45.5

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FEB 2766.65 29.15

MAR 2674.6 26.95

APR 2674.6 37.25

MAY 3654 48.8

JUN 4529.9 92.7

JULY 327.95 83.1

AUG 406 94.8

SEP 414.15 103.65

OCT 436.15 105.35

NOV 340.55 75

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DEC 371.7 89.4

Comment:-
The above graph shows the stock price movement of DLF and UNITECH from Jan. to Sept. The
movement is almost same in both the company but there is a high movement in the stock price of
DLF as compare to the movement in the stock price of UNITECH

COMPARISION OF EPS OF DLF AND UNITECH

YEAR 2007 2008 2009

DLF 2.29 14.42 8.95

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UNITECH 12.03 6.31 4.53

EPS COMPARISION
16

14

12

10

0
DLF UNITECH

Comment:-
The above graph indicates the earning per share of both the company. As compare to
the UNITECH the earning per share of DLF is higher in the year 2008 and 2009 but
lower in the year 2007 which indicates that DLF is giving more return as compare to
UNITECH.

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COMPARISION OF DIVIDEND YIELD OF DLF AND

UNITECH
YEAR DLF (%) UNITECH (%)

2008 2.11 0.29

2009 4.06 1.17

DIV. YIELD

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4.5

3.5

2.5

1.5

0.5

0
DLF (%) UNITECH (%)

Comments:-
The above graph shows the dividend yield of both the company in the year 2008 and
2009. As compare to UNITECH the dividend yield of DLF is higher in both years. It
shows that DLF is giving higher dividend to its shareholders as compare to UNITECH.

CONCLUSION

In the years ahead, the Real industry in India has to overcome various challenges with respect to
housing, environment, transportation, power or natural hazards.

Real Estate industry is growing at a faster rate in the India. The gains of large investments in the
mega-projects eventually will feedback to the construction industry itself in then form of better
economy and improved work conditions.

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The outstanding performance under demanding situations in the past will stand in good stead and
give confidence to the Indian real industry to bring about an overall development in the infrastructure
of the nation.

we can conclude that the investment in DLF LTD and UNITECH LTD Is beneficial because both the
companies are profit making and growing at a faster rate.

As compare to UNITECH Company the investment in DLF company is more beneficial because oft he
movement in the stock price of DLF company is more than UNITECH.

The Net Profit of the company is increasing and the Price Earning ratio is also higher than UNITECH.

BIBLIOGRAPHY

 Newspaper Articles

 Annual Report of Companies

 www.moneycontrol.com

 apollosindhoori.com

 www.google.com

 www.scribed.com

 www.bseindia.com

 www.nseindia.com

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