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USHAR PARAB T PRITAM SHINDE T RUCHIRA GAWADE. T CHETANA MASURKAR. T UDITA BHOSALE. T CHIRAG VAGHELA. M - 4054 M - 4159 M - 4010 M - 4124 M- 4106 M - 4042
NAME
: TUSHAR PARAB
There are 2 types of returns: 1) annual income 2) long term capital growth
FUNDAMENTAL ANALYSIS
To determine a securitys value
Is the company revenue growing? Is it actually making a profit? is it in a position strong enough to outrun its competitors in the future? is it able to repay its debt? is management trying to cook the book?
FUNDAMENTAL ANALYSIS
QUANTITATIVE ANALYSIS
QUALITATIVE ANALYSIS
INTRINSIC VALUE
Price on the stock market does not fully reflect a stock s real value
Why would you be doing price analysis if the stock market were always correct?
NAME
: PRITAM SHINDE
ECONOMIC ANALYSIS
Determination of the distribution of scarce resources Provides insight into how markets operate Used by Governments
ECONOMIC ANALYSIS
Achieving a Specific Objective Takes into account the opportunity costs of resources employed Stock Market does not operate in vacuum
ECONOMIC INDICATOR
Statistic about the Economy Allows analysis of Economic Performance Relationships to the Economy
INDICATOR Gross National Product General employment position Domestic savings rate Interest rates Tax rates Foreign exchange position Balance of trade Balance of Payments Inflation Agricultural production Industrial Production Freight movement of railways
FAVOURABLE IMPACT High growth rate Full or almost full employment High Low Low High Positive Positive Low High High High
UNFAVOURABLE IMPACT Slow growth rate Underemployment and Unemployment Low High High Low Negative Negative High Low Low Low
NAME
: RUCHIRA GAWADE.
Stagnation stage
Expansion stage
CHARACTERISTICS
1 2 3 4
Past sale and earning performance. Labor conditions within the industry. Attitude of government towards the industry. Stock prices of firms in the industry relative to their earnings.
NAME
: CHETNA MASURKAR
COMPANY ANALYSIS
(NON-FINANCIAL)
At the final stage of fundamental analysis, the investor analyses the company. It is imperative that one should look at the politico-economic analysis and the industry analysis before a company is analyzed because a companys performance is the reflection of the economy, political situation, and the business
REVIEW QUESTION
How old is the company? Who are the promoters? Is it family managed or professionally managed? What is the public image and reputation of the company, its products? Does the company use relevant technology? Is there any foreign collaboration? What are the production trends? What is raw material position? What is the companys product range? Marketing network? Brand image? Cost of sales promotion and distribution? What are the CSR activity?
Technology, facilities & Production Product range, Marketing, Selling & Distribution Industrial relations, Productivity personnel
SWOT ANALYSIS
BCG MATRIX
T CASH FLOWS: The business with low growth rate and high generation of cash and profits. Cash cows provide financial base foe the company.
T DOGS: If the business growth rate is low and the company relative market share is also low, attempts to increase market share would demand prohibitive investments.
T QUESTION MARK: Like Dogs, Question marks are businesses with low market share but the businesses have a high growth rate. Because of their high growth, the cash requirement is high, but due to their low market share, the cash generated is also low. T STARS: Businesses which have high growth rate and high market share, are called stars.
NAME
: UDITA BHOSALE
financial statement analysis is largely a study of relationship among the various financial factors in business as disclosed by a single set of statements and a study of the trend of these factors as shown in a series of statements.
a) Comparative financial statement analysis Absolute money values of each item separately for each of the periods stated. Increase and decrease in absolute data in terms of money values. Increase and decrease in terms of percentages. Comparison expressed in ratios. Percentages of totals. Such comparative statements are necessary for the study of trends and direction of movement in the financial position and operating results.. This calls for a consistency in the practice of preparing these statements, otherwise comparability may be distorted. Comparative statements enable horizontal analysis of figures.
b) Common size financial statement analysis Common size financial statement are those in which figures reported are converted into percentages to some common base. For this, items in the financial statements as percentages or ratios to total of the items and a common base for comparison is provided. Common size income statement In a common size income statement the sales figures is assumed to be equal to 100 and all other figures of costs or expenses are expressed as percentages of sales. A comparative income statement for different periods helps to reveal the efficiency or otherwise of incurring any cost or expense.
c) Trend ratios analysis Trend ratios show the nature and rate of movements in various financial factors. They provide a horizontal analysis of comparative statements and reflect the behavior of various items with the passage of time.
d) Ratio analysis Profitability ratios A measure of profitability is the overall measure of efficiency. In general terms of efficiency, a business is measured by the inputoutput analysis. By measuring the out-put as a proportion of the input and comparing result of similar other firms or periods the relative change in its profitability can be established.
Return on investment
Return on investment = (net operating profit *100)/Capital employed Return on shareholders funds = {net profit after interest and tax /shareholders funds} *100 Gross profit ratio or gross margin = {gross profit/net sales}*100
Turnover ratios capital turnover ratio = (net sales/capital employed) total assets turnover ratio = (net sales/total assets)
Financial ratios
A. Current ratio = (current assets/current liabilities) B. Liquid ratio = (liquid assets/liquid liabilities) C. Debt equity ratio = debt/equity (shareholders funds)
NAME
:CHIRAG VAGHELA
Infosys is cash rich (Around US $ 1 Billion) - High dependency on a small clients Acquiring companies to increase expertise in Currency fluctuations Consultancy, KPO
Ratio
Year ended March 31 2011 2010 0.95 32.89 28.89 29.13 27.22
Sales to total assets ratio Operating profit / average capital employed ratio (%) Return on average net worth(%) Return on average net worth (%) Profit after tax to sales ratio (%)
Competition
TCS, Wipro, Deloitte, HP, Oracle, Accenture
Brand Valuation
Strengthening of the invisible Valuing the brand
HR ANALYSIS OF INFOSYS
Human Capital
104850 in 09 & 113796 in 10
CONCLUSIONu
THANK YOUu