A FINAL REPORT ON Fundamental & Technical Analysis of Bule Chip Companies SUBMITTED BY CHAITALIKAUR J JUBBAL ROLL NO-45 MBA(finance)

SUBMITTED TO Miss. Meera B. Hirapurkar(MBA-FINANCE) Lect. INDIRA INSTITUTE OF MANAGEMENT SCIENCES AFFILIATED WITH SWAMI RAMANAND TEERTH MARATHWADA UNIVERSITY, NANDED. 2011-2012

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CERTIFICATE
This is to certify that Chaitalikaur J Jubbal Student of MBA IInd year have satisfactory completed the project report on topic

Fundamental & Technical Analysis of Blue Chip Companies

Under the guidance of Prof. Miss. Meera B. Hirapurkar as a partial fulfilment of MBA from Indira Institute of Management Sciences in academic year 20112012. Hence certified.

(Signature) Project Guide Prof. Miss. Meera B. Hirapurkar

(Signature) Director Prof. Dr. Losarwar S.G

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ACKNOWLEDGEMENT
I take this opportunity to express my sincere thanks to all the people concerned directly or indirectly with this Endeavour of my project work. First and foremost I am highly indebted to my esteemed guide Miss. Meera B. Hirapurkar for their valuable guidance, inspiring efforts and above all moral encouragement.

I also like to thank Dr. Losarwar (Director ) for his encouragement & pleasing nature; directions, concern towards me and their readiness to share their ideas enthused us and rejuvenated my efforts towards my goal. I also like to thank Ameen Jassani the owner of A J Securities.

It is a matter of honour to express regards to all the staff members of the Commerce & Management Science who helped in every possible way for providing me valuable books for reference. I also thanks to all friends who have directly or indirectly helped me in preparing this Project Report.

Chaitalikaur Jubbal M.B.A. III Sem.

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CONTENTS

Sr.No. 1 2 3 4 5 6

Topic Executive Summery Objective of Project Research Methodology Data Presentation Data Analysis & Interpretation Conclusion

Page No. 5 6 10 11-34 35-99 102

7 8 9

Limitation Bibliography Questeniore

103 104 105

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ECUTIVE SUMMARY
EQUITY ANALYSIS is the systematic study of the performance of companies in stock market with help of fundamental analysis and technical analysis. Equity analysis consists of fundamental analysis & technical analysis. While decision in investment of shares should be base on actual movement of shares price measured more in money & percentage term & nothing else. In equity analysis, calculations are based on FACTS & not on HOPE. The subject of equity analysis, i.e. the to attempt to determine future share price movement with the help of RATIO ANALYSIS, STUDY OF GRAPH. Equity analysis does not discuss how to buy & sell shares, but does discuss the methods, which enables the investor to arriving at buying & selling decision. The Technical Approach to investment is essentially a reflection of the idea that prices moves in a trend that are determined by the changing attitude of investors toward a variety of economic, monetary, political and psychological forces. The art of technical analysis, for it is an art, is to identify a trend reversal at a relatively early stage and ride on that trend until the weight of the evidence shows or proves the trend has reversed.

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OBJECTIVES
1. To understand the financial position of the securities using various analysis tools. 2. To predict the future performance of the securities under study based on the analysis. 3. To understand various financial statements. 4. To understand the trends in the stock markets. 5. To provide comprehensive introduction to the areas of securities 6. To analyze the performance of companys through Balance Sheet & Technical graph of their shares.

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BOMBAY STOCK EXCHANGE

The Bombay Stock Exchange (BSE) is a stock exchange located on Dalal Street,Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed on the BSE was US$1 trillion as of December 2011, making it the 6th largest stock exchange in Asia and the 14th largest in the world. The BSE has the largest number of listed companies in the world. As of December 2011, there are over 5,112 listed Indian companies and over 8,196 scrips on the stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for the majority of the equity trading in India. While both have similar total market capitalization (about USD 1.6 trillion), share volume in NSE is typically two times that of BSE. History

The Phiroze Jeejeebhoy Towers house the Bombay Stock Exchange since 1980.

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the 1850s, when four Gujarati and one Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE SENSEX in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading SENSEX futures contracts.

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The development of SENSEX options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition. This automated, screen-based trading platform called BSE On-line trading (BOLT) currently has a capacity of 8 million orders per day.

Type Location Coordinates Founded Owner Key people Currency No. of listings MarketCap Volume Indexes

Stock Exchange Mumbai, India 18.929681N 72.833589E 1875 Bombay Stock Exchange Limited Madhu Kannan (CEO & MD) Indian rupee ( ) 5,112 US$1 trillion (Dec 2011)[1] US$231 billion (Nov 2010) BSE BSE BSE BSE 500 SENSEX Cap Mid-Cap

Small

Website

www.bseindia.com

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SENSEX

The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock exchanges in India - Mumbai, Calcutta, Delhi,Ahmedabad and Madras. The BSE National Index was renamed BSE-100 Index from October 14, 1996 and since then, it is being calculated taking into consideration only the prices of stocks listed at BSE. BSE launched the dollar-linked version of BSE-100 index on May 22, 2006. BSE launched two new index series on 27 May 1994: The 'BSE-200' and the 'DOLLEX-200'. BSE-500 Index and 5 sectoral indices were launched in 1999. In 2001, BSE launched BSE-PSU Index, DOLLEX-30 and the country's first free-float based index - the BSE TECk Index. Over the years, BSE shifted all its indices to the free-float methodology (except BSE-PSU index). BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices. The values of all BSE indices are updated on real time basis during market hours and displayed through the BOLT system, BSE website and news wire agencies. All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee which comprises eminent independent finance professionals frames the broad policy guidelines for the development and maintenance of all BSE indices. The BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on development of new indices. SENSEX is significantly correlated with the stock indices of other emerging markets

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RESEARCH METHODLOGY
During my project, I collected data through various sources primary & secondary sources. Primary Source Includes :Discussion with branch manager Discussion with experience traders Questionnaires for investors Live deling as a deler in the market Live treading in equity market Secondary Source Includes : Various books related to stock market Books related to Financial Management Web sites were used as the vital information source.

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FUNDAMENTAL ANALYSIS

The investor, while buying stock, has the primary purpose of gain. If he invests for a short period of time, it is speculative but when he holds if for a fairly long period of time, the anticipation is that he would receive some return on his investment. The fundamental analysis is a method of finding out the future price of a stock, which an investor wishes to buy. The method for forecasting the future behavior of investment and the rate of return on them is clearly through an analysis of the broad economic forces, industry analysis, the company analysis and ration analysis.

A. Influence Of The Economy On The Company.

01. Economic Growth 02. Populations 03. Monsoons and Agriculture Production 04. Natural resources and availability of raw material 05. Industrial Productions 06. Inflation 07. Interest rate 08. Budget deficits 09. Domestic saving and capital output rate 10. Employments 11. Taxation policies 12. Infrastructure facilities 13. Government policies 14. Political Stability 15. Capital formations 16. Saving pattern 17. Economic indicators 18. Foreign direct investments 19. Rupee-Dollar Fluctuation 20. Stock News

TOOLS FOR COMPANY ANALYSIS

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Earning Per Share

The earnings per share measures the per share rupees returns to owners of a company. The figure is calculated as follows:

(EPS = Totals Earning / No. of shares outstanding)

We sum the prior year earnings and divide the amount by the weighted average of share outstanding. This assumes the most accurate information if a company distributes new shares outstanding during the period which could substantially impact (or dilute) shares to current shareholders with lower per share earnings.

Price Earnings Ratio

The Price-Earnings or P/E ratio is arguably the most commonly quoted Ratio. The reason for its popularity is that it reduces to an arithmetical figure the relationship between price and earnings per share and thereby allows one the opportunity to determine whether a share is overpriced or under priced and by relating price and earning per share of a company, one can analyze the markets valuation of a companys shares relative to the wealth the company is actually creating. A P/E ratio is calculated as:

(PER=price per share / earning per share)

The P/E of a stock describes the price of a share relative to earnings of the underlying assets. The lower the P/E, the less you have to pay for the stock, relative to what you can expect to earn from it. The higher the P/E the more over-valued the stock is.

Book Value

B.V. = Paid up capital + reserve & surplus / outstanding equity shares. Fundamental & Technical Analysis of Blue Chip Companies Page 12

Price / Book Value

The market to book ratio compares the book value of the assets of a company to its market value. If a shares market prices is treble or quadruple its book value, it signifies that investors have tremendous confidence in the growth prospects of the company. It can also suggest that the assets may be understated. If, on the other hand, the book value is more than the market value, the company may not be making profits and may not be enjoying investor confidence. The market to book ratio is calculated by dividing the market price per share by the book value per share.

(Market price to book value = Market price per share / Book value per share)

Debt-Equity This ratio indicates the ratio of debt on a firms balance sheet to the amount of funds provided by owners .We can measures performance by using debt divided by debt + equity. The basic formula is calculated as follows:

(Debt to Equity = Debt + Equity)

The more capital intensive the firm, the higher the debt to equity ratio. It measures the percentage of debt tied up in the owners equity.

Current Ratio

The current ratio is the most commonly used ratio to measure liquidity. Its purpose is to check whether a companys current assets are enough to meet its immediate liabilities, i.e. those that mature within one year. The ratio is arrived at by dividing current assets by current liabilities. Normally, the current ratio is around 1or even a little below 1.This in itself is not bad Fundamental & Technical Analysis of Blue Chip Companies Page 13

(Current Ratio = Current Assets /Current Liabilities)

TURNOVER RATIO

Fixed Assets Turnover

The fixed assets turnover is a measure of how efficiently a company uses its fixed assets to generate sales. The higher the fixed ratio the better it is. We calculate the fixed assets turnover by adding all sales of the company and dividing the amount by net fixed assets for the latest four quarters of financial performance. The basic formula is as follows:

FAT = (Sales / Net Fixed Assets)

The fixed asset turnover can vary substantially from industry to industry.

Inventory

The inventory turnover ratio measures the number of times during a year that a company replaces its inventory. The turnover is only meaningful when comparing other firms in the industry or a companys prior inventory turnover. Differences in turnover rates result from differing operating characteristics within an industry. We calculate the inventory turnover rate as follows:

Inventory Turnover = (Cost of Goods sold / Avg Inventory)

The higher the inventory turnover rate means the more efficiently a company is able to grow sales volumes.

Debtors

Debtors turnover = Net credit sales / Avg sundry debtors Fundamental & Technical Analysis of Blue Chip Companies Page 14

TECHNICAL ANALYSIS
The methods used to analyze securities and make investment decisions fall into two very broad categories: Fundamental Analysis and Technical Analysis. Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesnt care one bit about the value of a company or a commodity. Technicians (some time called chartists) are only interested in the price movement in the market. Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market it self, as opposed to its components. If you understand the benefits and limitation of technical analysis it can give you a new set of tools or skills than will enable you to better trader or investor.

DEFINITION Technical analysis is a method of evaluating the securities by analyzing the statistics generated by the market activity, such as past price and volume. In technical analysis, analysts use charts and other tools to identify patterns that can suggest future activity. Just as there are many investment styles on fundamental side, there is also much different type of technical traders. Some rely on chart patterns. In any case, technical analysts exclusive use of historical price and volume data is what separates them from their fundamental counterparts. Unlike fundamental analysis technical analysts dont care whether a stock is undervalued the only thing that matter is a securitys past trading data and what information this data can provide about where the security might move in the future

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Line charts
A style of charts that is created by connecting a series of data points together with a line. This is the most basic type of charts used in finance and connecting a series of past prices together with a line generally creates it.

Bar chart
A style of chart used by some technical analysts, on whom as illustrated below, the top of the vertical line indicates the highest price a security traded at during the day, and the bottom represents the lowest price. The closing price is displayed on the right side of the bar, and the opening price is shown on the left side of the bar. A single bar like the one below represents one day of trading.

These are the most popular type of chart used in technical analysis. The visual representation of price activity over a given period of time is used to spot trends and patterns.

Candlestick
A price chart that displays the high, low, open and close for a security each day over a specified period of time. Fundamental & Technical Analysis of Blue Chip Companies Page 16

There are many trading strategies based upon patterns in candlestick charting.

Technical analysis: the use of trend

One of the most important concepts in technical analysis is that of trend. The meaning in finance isnt all that different from the general definition of the term- a trend is really nothing more than the general direction in which a security or market is headed. Take a look at the chart below:

It isnt hard to see that the trend in figure is up. However, isnt not always this easy to see a trend.

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There are lots of ups and downs in this chart, but there isnt a clear indication of which direction this security is headed.

The Importance of Trend

It is important to be able to understand and identify trends so that you can trade with them rather than trade against them. Two important sayings in technical analysis are the trend is your friend and dont buck the trend Illustrating how important trend analysis is for technical trade.

Types of Trend
There are three types of trend: Up Trends Downtrends Sideways/ Horizontal Trends

As the names imply, when each successive peak and trough is higher, its referred to as an upward trend. If the peaks and troughs are getting lower. Its a downtrend. When there is little movement up or down in the peaks and troughs, its a sideways or horizontal trend. If you want to get really technical, you might even say that a sideways trend is actually not a trend on its own, but a lack of a well-defined trend in either direction. In any case, the market can really only trend in these three ways: up, down or nowhere. Fundamental & Technical Analysis of Blue Chip Companies Page 18

Uptrend
Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend.

Notice how each successive peak and trough is located above the previous ones. For example, the peak at trend is higher than the peak at uptrend. The uptrend will be deemed broken if the next low on the chart falls below trend.

Downtrend
Describes the price movement of a financial asset when the overall direction is downtrend. A formal downtrend occurs when each successive peak and trough is lower than the ones found earlier in the trend.

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Notice how each successive peak and trough is lower than the previous one. For example, the low trend is lower than the low at Point. The downtrend will be deemed broken once the price closes above the high at high direction trend. Downtrend is the opposite of uptrend.

Trend lines
A trend line is a simple charting technique that adds a line to a chart to represent the trend in the market or a stock. Drawing a trend line is as simple as drawing a straight line that follows a general trend. These lines are used to clearly show the trend and are also used in the identification of the reversals.

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As you see in above Figure, an upward trend lines is drawn at the lows of an upward trend. This line represents the support the stock has every time it moves from a high to a low. Notice how the price is propped up by this support. This type of trend line helps traders to anticipate the point at which a stocks price will begin moving upwards again. Similarly, a downward trend line is drawn at the highs of the downward trend. This line represents the resistance level that a stock faces every time the price moves from a low to a high.

Trend Lengths
Along with this trend direction, there is three-trend classification. A trend of any direction can be classified as a long-term trend, intermediate trend or a short-term. In terms of the stock market, a major trend is generally categorized as one lasting longer than a year. An intermediate trend is considered to last between one and three months and a near-term trend is anything less than a month. A long-term trend is composed of several intermediate trends, which obtain move against the direction of the major trend. If the major trend is upward and there is a downward correction in price movement followed by a continuation of the up trend, the correction is considered to be an intermediate trend. The short term trends are components both major and intermediate trends. Take a look a Figure to get a sense of how these three trends lengths might look.

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When analyzing trends, it is important that the chart is constructed to best reflect the type of trend being analyzed. To help identify long-term trends, chartists to get a better idea of the long-term trend use weekly charts or daily charts spanning a five-year period. Daily data charts are best use when analyzing both intermediate and short-term trends. It is also important to remember that the longer the trend, the more important it is; for example, a month trend is not as significant as five-year trend.

Channels

A Channel, or channel lines, is the addition of two parallel trend lines that act as strong areas of support and resistance. The upper trend line connects a series of highs, while the lower trend line connects a series of lows. A channel can slope upward, downward or sideways but regardless of the direction, the interpretation remains the same. Traders will expect a given security to trade between two levels of support and resistance until it breaks beyond one of the levels in which case traders can expect a sharp move in Direction of the break. Along with clearly displaying the trend, channel is mainly used to illustrate important areas of support and resistance.

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Above graph a descending channel on stock chart; the upper trend line has been placed on the highs and lower trend line is on the lows. The price has bounced off of these line several times, and has remained rang-bound for several months. As long as the price does not fall below the lower line or move beyond the upper resistance, the range bound downtrend is expected to continue.

Double Bottom

A charting pattern used in technical analysis. It describes the drop of a stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.

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Double Top
A term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop.

The double top looks like the letter M. The twice-touched high is considered a resistance level.

Triple Bottom A pattern used in technical analysis to predict the reversal of a prolonged downtrend. The pattern is identified when the price of an asset creates three troughs at nearly the same price level. The third bounce off the support is an indication that buying interest (demand) is outweighing selling interest (Supply) and that trend is in the process of reversing.

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Once the first bottom is created, the price reaches a peak and retraces back toward the prior support. This is when buyer enters again and pushes the price of the asset higher, creating bottom No.2. The price of the asset then created another peak and heads lower for its final test of the support. The final bounce of the support level creates bottom No.3 and traders will get ready to enter a long position once the price breaks above the previous resistance (Illustrated by the black on the chart). This pattern is considered to be a very reliable indication that the downtrend has reversed and that the new trend in the upward direction. Sudden change in the price direction of a stock, index, commodity or derivative security. Also referred to as a Trend Reversal, Rally or Correction. Triple Top A pattern used in technical analysis to predict the reversal of prolonged up trend. This pattern is identified when the price of an asset creates three peaks at nearly the same price level. The bonus off the resistance near the third peak is clear indication that buying interest is becoming exhausted. The traders to predict the reversal of the up trend use it.

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The three consecutive tops make this pattern visually similar to the head and shoulders pattern but, in this case, the middle peak is nearly equal to the other peak rather than being higher. Many traders will enter into a short position once the price of asset falls below the identified support level. (Shown by the line in the chart above).

Head and Shoulders Pattern

A technical analysis term used to describe a chart formation in which a stocks price: 1 Rises to a peak and subsequently declines.

2. Then, the price rises above the former peak and again declines 3. And finally, rises again, but not to the second peak, and declines once more. The First and Third peaks are shoulders, and second peak forms the head.

The Head -and Shoulders pattern is believed to be one of the most reliable trend reversal patterns.

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Volume
The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by the 100 shares based on that transaction. Volume is an important indicator in the technical analysis as it is used to measure the worth of a market move. If the market have made strong price move either up or down the perceived strength of that move depends on the volume of that period. The higher the volume during that price move the more significant the move.

Support
The price, which, historically, a stock had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. Often referred to as the Support Level.

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Resistance
The Price at which a stock or market can trade, but which it cannot exceed, for a certain period of time. Often referred to as Resistance Level.

Moving Average- MA
An indicator frequently used in technical analysis showing the average value of a securitys price over a set of period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.

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Fundamental & Technical Analysis of Blue Chip Companies

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BLUE-CHIP COMPANY

A blue-chip stock is stock in a company with a national reputation for quality, reliability and the ability to operate profitably in good times and bad. The most popular index which follows US blue chips is the Dow Jones Industrial Average. The Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry. The stock of a company that is in excellent financial condition and is a leading player in its sector is called a blue chip stock. These high-quality stocks are considered a lower risk investment. Blue chip stocks get their name from poker, in which the counters that have the highest value are blue in color. The most popular blue chip stocks are study in the next part of this project

Characteristics

There are no specific criteria for blue chip stocks. The most common characteristics of such stocks include: 1. Revenues: Companies with revenues higher than that generated by industry peers. 2. Earnings: Companies that have been generating healthy earnings on a consistent basis. 3. Dividends: Companies that pay regular dividends to common stockholders, even if their performance has been unsatisfactory in a particular period. Moreover, the dividend payout is raised at regular intervals. 4. Balance Sheet: The balance sheets are robust and their debt liabilities are not extensive. 5. Credit Rating: Their credit ratings in the bond and unsecured debt markets are high. 6. Size: The market capitalization of these companies is higher than that of other companies in the same industry. 7. Product Portfolio: They have extensive and diversified product lines. They also have a wide global presence. 8. Competition: They are cost efficient, with high distribution control and excellent franchise value, all of which contribute towards their competitive advantage.

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LIST OF 30 BLUE CHIP COMPNIES 1 Housing Development Corporation Finance Finance 500010

2 Cipla 3 Bharat Heavy Electricals 4 State Bank Of India 5 HDFC Bank 6 Hero Motocorp 7 Infosys 8 Oil and Natural Gas Corporation 9 Reliance Industries 10 Tata Power

Healthcare Capital Goods Finance Finance Transport Equipments Information Technology Oil & Gas Oil & Gas Power Metal,Metal Mining Metal,Metal Mining Capital Goods Products &

500087 500103 500112 500180 500182 500209 500312 500325 500400

11 Hindalco Industries

500440

12 Tata Steel

Products

&

500470

13 Larsen & Toubro

500510

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14 Mahindra & Mahindra 15 Tata Motors 16 Hindustan Unilever 17 ITC

Transport Equipments Transport Equipments FMCG FMCG Metal,Metal Mining Products &

500520 500570 500696 500875

18 Sterlite Industries

500900

19 Wipro 20 Sun Pharmaceutical 21 GAIL 22 ICICI Bank

Information Technology Healthcare Oil & Gas Finance Metal,Metal Mining Telecom Transport Equipments Information Technology Power Products &

507685 524715 532155 532174

23 Jindal Steel & Power

532286

24 Bharti Airtel 25 Maruti Suzuki 26 Tata Consultancy Services 27 NTPC

532454 532500 532540 532555

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28 DLF 29 Bajaj Auto

Housing Related Transport Equipments Metal,Metal Mining Products &

532868 532977

30 Coal India

533278

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INFOSYS

Scrip Code 500209

Group / Index

A / SENSEX

Face value 5.00 Industry IT Consulting & Software

FUNDAMENTAL ANALYSIS
EARNING PER SHARE Year Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 BOOK VALUE YEAR Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10 Mar ' 11 NET OPERATING INCOME PER SHARE (RS) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Net operating income per share (Rs) 230.20 273.57 353.75 368.40 442.13 Book value 195.41 235.84 310.89 384.02 426.73 Cash EPS (Rs) 74.44 87.69 113.70 115.19 125.11

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600

500

400 Cash EPS 300 Book value NOI 200

100

0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

CURRENT RATIO Year Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10 Mar ' 11 Current Ratio 4.96 3.30 4.71 4.28 5.11

FIXED ASSET TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar10 Mar 11 Fixed Asset Turnover Ratio 3.38 3.47 3.39 3.33 3.67

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DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt- Equity Ratio -

4 Current Ratio 3 Fixed Asset Turnover Ratio Debt- Equity Ratio 2

0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

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NET PROFIT MARGIN (%) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
29 28 27 26 25 24 23 22 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Net profit margin (%)

Net profit margin (%) 28.05 27.37 27.52 26.36 24.31

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TECHNICAL ANANYSIS
OWNERSHIP PATTERN

REVENUE & PROFIT MOVEMENT

COMAPRISION WITH MARKET

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HISTORY
Infosys was founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S. Raghavan,S. Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora. It moved to Bangalore in 1983 and got its first foreign client, Data Basics Corporation from the US, in 1987. In 1992 it opened its first overseas sales office in Boston, US. This was followed by offices in Milton Keynes (1996), Toronto (1997), France and Hong Kong (2000), UAE and Argentina (2001), Netherlands, Singapore and Sweden (2002). Currently it has 64 offices and 68 development centres in India and abroad.

UPCOMING PROJECTS
Infosys executes hundreds of projects each year. Full responsibility for executing a project rests with the project manager, who must make sure that the project team delivers high-quality software to the customer on time and within cost. To help the project manager fulfill this responsibility, support from the organization is necessary. Infosys bids for 10 govt projects to lower dependence on US.

NOTES
1. 2. 3. 4. 5. 6. 7. It is a leading company in IT sector, it is a MNC company It overall ratios are constantly increasing from 5 years It is having nice profit margine Its shares face value is Rs.5 & now its value is 2,831.. Its sales revenue & profit is increasing day by day Its market capitalization is also increasing Its compititors are Tata, HCL, Wipro,Satyam etc. they are still lacking behind as compare to INFOSYS. 8. Its profit margine, NOI, Bookvalue is having downtrend. 9. Its current ratio & fixed assets turnover ratio is having uptrend.

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CIPLA

Group / Index Scrip Code

: 500087

A / SENSEX Industry

Face value :

: 2.00 Pharmaceuticals

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Cash EPS 9.92 10.71 11.95 15.53 14.81

BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Book value 41.64 48.32 55.97 73.66 82.36

NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 45.83 54.08 67.34 69.82 78.70

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90 80 70 60 50 40 30 20 10 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Cash EPS Book value NOI

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 2.69 2.68 2.82 2.17 2.26

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 1.98 1.91 1.94 1.94 1.61

Fundamental & Technical Analysis of Blue Chip Companies

Page 41

DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 debt/equity 0.03 0.15 0.21 0.06

INVENTORY TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

3

Inventory turnover ratio 3.74 3.83 3.79 3.74 3.73

2.5

2 Current ratio 1.5 Fixed assets turnover ratio debt/equity 1

0.5

0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Fundamental & Technical Analysis of Blue Chip Companies

Page 42

NET PROFIT MARGIN (%) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

Net profit margin (%) 45.83 54.08 67.34 69.82 78.70

90 80 70 60 50 40 30 20 10 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Inventory turnover ratio Net operating income

Fundamental & Technical Analysis of Blue Chip Companies

Page 43

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 44

HISTORY
Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The fire of nationalism was kindled in him when he was 15 as he witnessed a wanton act of colonial highhandedness. The fire was to blaze within him right through his life.. In 1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as Cipla. He gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs. Cipla was officially opened on September 22, 1937 when the first products were ready for the market. The Sunday Standard wrote: "The birth of Cipla which was launched into the world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries. The first city in India can now boast of a concern, which will supersede all existing firms in the magnitude of its operations Cipla today stands as one of the most trusted names in the pharmaceutical industry in India. Serving the nation for over 70 years with an unprecedented record of quality Cipla has managed to win the hearts of millions of Indians with its wide range of personal care and pharmaceutical products.

UPCOMING PROJECTS
Cipla introduces new pain free screening technology for early detection of breast cancer in India - No Touch Breast Scan Cipla extends an innovative Mother-Baby Pack for preventing mother-to-child transmission of HIV/AIDS Cipla launches the worlds first generic Pirfenidone in India, giving hope to sufferers of IPF (Idiopathic Pulmonary Fibrosis) Piramal Healthcare Acquires "i-pill", a Leading Emergency Contraceptive Brand from Cipla

NOTES
1. Cipla is a leading firm in a helthcare industries, so it is a best to have such company in our portfolio. 2. Its oveall ratios like EPS, book value, NOI, Current ratio, Fixed assets turnover ratio, debt/equity, Inventory turnover ratio etc. are contineously increasing 3. Its profit is also increasing constantly. 4. Its compititors are sun pharmaciticals, Dr. Reddys labs are ahead but still due to its innovations it is having good demand on market. 5. Its face value is 2 & its market value is 299.. 6. Its NOI, book value, Net operating ratio is having uptrend.

Fundamental & Technical Analysis of Blue Chip Companies

Page 45

BHARAT HEAVY ELECTRICALS

Group / Index Scrip Code

: :

A / SENSEX 500103

Face value Industry

: :

2.00 Heavy Electrical Equipment

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 709.38 399.19 543.68 678.75 858.45 Book value 359.06 220.10 264.32 325.16 411.71 CASH EPS 108.65 64.48 70.94 97.41 132.51

Fundamental & Technical Analysis of Blue Chip Companies

Page 46

1000 900 800 700 600 CASH EPS 500 400 300 200 100 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Book value NOI

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 1.43 1.38 1.36 1.37 1.32

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 4.27 4.48 5.20 5.15 5.31

Fundamental & Technical Analysis of Blue Chip Companies

Page 47

DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 0.01 0.01 0.01 0.01 0.01

INVENTORY TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

6

Inventory turnover ratio 4.64 3.88 3.70 3.77 4.11

4 Current ratio 3 Fixed assets turnover ratio Debt/equity 2 Inventory turnover ratio

0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

NET PROFIT MARGIN (%) Year

Net operating income

Fundamental & Technical Analysis of Blue Chip Companies

Page 48

Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

1000 900 800 700 600 500 400 300 200 100 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

709.38 399.19 543.68 543.68 858.45

Net operating income

Fundamental & Technical Analysis of Blue Chip Companies

Page 49

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 50

HISTORY
We are an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India in terms of turnover. We were established in 1964, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77 We are engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defense. We have 15 manufacturing divisions, two repair units, four regional offices, eight service centers, eight overseas offices and 15 regional centers and currently operate at more than 150 project sites across India and abroad. We place strong emphasis on innovation and creative development of new technologies. Our research and development (R&D) efforts are aimed not only at improving the performance and efficiency of our existing products, but also at using state-of-the-art technologies and processes to develop new products. This enables us to have a strong customer orientation, to be sensitive to their needs and respond quickly to the changes in the market.

UPCOMING PROJECTS NTPC and BHEL to set up joint venture for projects NOTES
1. BHEL is one of the Navratna Company. 2. It is having nice growth rate 3. Government wants to buy back shares from market to met its fiscal pilicy, is the main reason why past few days performance is week. 4. Its overall ratios are increasing continuously 5. Its net operating income increased this year more rapidly. 6. Its shares face value is 2 & now its market value is 252. 7. Its all ratios having sharp growth rate & having uptrend.

Fundamental & Technical Analysis of Blue Chip Companies

Page 51

STATE BANK OF INDIA

Scrip Code 500112 :

Group / Index - A / SENSEX

Face value 10.00

Industry Banks

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 833.38 899.83 1,179.45 1,353.15 1,504.34 Book value 594.69 776.48 912.73 1,038.76 1,023.40 CASH EPS 97.73 117.33 155.69 159.06 145.75

Fundamental & Technical Analysis of Blue Chip Companies

Page 52

1600 1400 1200 1000 CASH EPS 800 600 400 200 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Book value NOI

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 0.42 0.53 0.34 0.43 0.41

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 5.44 6.32 7.20 7.26 7.24

Fundamental & Technical Analysis of Blue Chip Companies

Page 53

DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 13.91 10.96 12.81 12.19 14.37

16 14 12 10 Current ratio 8 6 4 2 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Fixed assets turnover ratio Debt/equity

Fundamental & Technical Analysis of Blue Chip Companies

Page 54

NET PROFIT MARGINE (%) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
1600 1400 1200 1000 800 600 400 200 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Net operating income 833.38 899.83 1,179.45 1,353.15 1,504.34

Net operating income

Fundamental & Technical Analysis of Blue Chip Companies

Page 55

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 56

HISTORY
The roots of the State Bank of India rest in the first decade of 1 9 t h c e n t u r y, w h e n T h e B a n k o f C a l c u t t a , l a t e r r e n a m e d T h e B a n k o f Bengal, was established on 2 June 1806. The Bank of Bengal and two other Presidency banks, namely, The Bank of Bombay (incorporated 1 5 A p r i l 1 8 4 0 ) a n d T h e Bank of Madras(incorporated on 1 July1843). All three Presidency banks were incorporated as joint stock companies, a n d w e r e t h e r e s u l t o f t h e royal. T h e s e t h r e e b a n k s r e c e i v e d t h e e x c l u s i v e r i g h t t o i s s u e p a p e r c u r r e n c y i n 1 8 6 1 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on27 January 1921, and the reorganized banking entity took as its name I m p e r i a l B a n k o f I n d i a . T h e I m p e r i a l B a n k o f I n d i a c o n t i n u e d t o remain a joint stock company. Pursuant to the provisions of the State Bank of India Act (1955), the R e s e r v e Bank of India, which is In dia's central bank , a c q u i r e d a controlling interest in the Imperial Bank of India. On 30 April 1955the Imperial Bank of India became the State Bank of India. The Govt. India recently acquired the Reserve Bank of India's stake in SBI to remove any conflict of interest because the RBI is the country's banking regulatory authority.

NOTES
1. 2. 3. 4. 5. 6. 7. SBI is a leading company in banking sector Its shares face value is 10 & now its market value is 2081. It is having great demand in market. Its overall ratios is increasing rapidly Its net profit is also increasing. Its index comparison is also strong Its all ratios execept fixed assets turnover ratio is having uptrend.

Fundamental & Technical Analysis of Blue Chip Companies

Page 57

RELIANCE INDUSTRIES

Group / Index 500325

A / SENSEX Industry

Face value Integrated Oil & Gas

10.00

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 801.57 920.48 902.02 587.37 758.04 Book value 458.61 548.73 802.54 419.43 462.95 CASH EPS 121.84 127.14 133.14 79.00 101.50

Fundamental & Technical Analysis of Blue Chip Companies

Page 58

1000 900 800 700 600 CASH EPS 500 400 300 200 100 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Book value NOI

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 1.17 1.39 1.23 1.29 1.46

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 1.13 1.29 1.01 0.94 1.58

Fundamental & Technical Analysis of Blue Chip Companies

Page 59

DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 0.45 0.46 0.64 0.48 0.46

INVENTORY TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

Inventory turnover ratio 10.65 10.57 12.92 8.29 9.59

14 12 10 8 6 4 2 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Current ratio Fixed assets turnover ratio Debt/equity

Fundamental & Technical Analysis of Blue Chip Companies

Page 60

NET PROFIT MARGINE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

600

Net operating income 259.98 348.57 464.77 436.03 524.34

500

400

300

Net operating income

200

100

0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Fundamental & Technical Analysis of Blue Chip Companies

Page 61

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 62

HISTORY

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 58 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail, infotel and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance Industrial Infrastructure Limited.

NOTES
1. 2. 3. 4. 5. 6. 7. Reliance Industries is a leading company in oil & gas sector Its face value is 10 & now its market price is 725 Its near about all ratios are continuously increasing day by day It is having much mare Goodwill in market Its market share is also high Its growth rate is also high Recently due to the intrest of FFI in it its Promoters share decreased from 55% to 50% 8. Its all ratios including Net profit margin in having uptrend.

Fundamental & Technical Analysis of Blue Chip Companies

Page 63

HERO MOTOCORP

Group / Index Scrip Code

: :

A / SENSEX 500182

Face value Industry

: :

2.00 2/3 Wheelers

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 496.07 518.06 617.23 793.22 969.86 Book value 123.70 149.55 190.33 173.52 148.03 CASH EPS 49.96 56.50 73.24 121.35 116.70

Fundamental & Technical Analysis of Blue Chip Companies

Page 64

1200

1000

800 CASH EPS 600 Book value NOI 400

200

0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 0.56 0.48 0.46 0.57 0.23

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 6.01 5.89 5.34 6.29 3.70

Fundamental & Technical Analysis of Blue Chip Companies

Page 65

DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 0.06 0.04 0.02 0.01 0.50

INVENTORY TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

Inventory turnover ratio 47.48 42.82 47.53 42.80 43.88

50 45 40 35 30 Current ratio 25 20 15 10 5 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Fixed assets turnover ratio Debt/equity

Fundamental & Technical Analysis of Blue Chip Companies

Page 66

NET PROFIT MARGINE (%) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
1200

Net operating income 496.07 518.06 617.23 793.22 969.86

1000

800

600

Net operating income

400

200

0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Fundamental & Technical Analysis of Blue Chip Companies

Page 67

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 68

HISTORY
Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it Shut it - Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda Hero Motocorp Ltd. Formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero Motocorp with a new corporate identity

NOTES
1. 2. 3. 4. 5. 6. 7. 8. It is a leading company in transport equipments. Its face value is 2 & its market price is 1993 Its book value, fixed assets turnover ratio is having downtrend. Its other ratios having uptrend. Its all ratios generally having rapid growth. After its demerger also it contineously earn profit. Its inventory turnover ratio is having double bottom during 2008-2010. We can plot upward trendline for its Net profit margine.

Fundamental & Technical Analysis of Blue Chip Companies

Page 69

TATA POWER

Group / Index: A / SENSEX Face value:1.00 Utilities

ScripCode:500400

Industry : Electric

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 248.54 267.77 327.74 299.37 290.82 Book value 302.42 362.04 390.36 443.83 473.65 CASH EPS 39.44 34.75 36.78 57.76 56.20

Fundamental & Technical Analysis of Blue Chip Companies

Page 70

500 450 400 350 300 NOI 250 200 150 100 50 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Book value CASH EPS

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 2.25 2.04 2.10 2.45 2.02

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 0.78 0.91 0.80 0.70 0.65

Fundamental & Technical Analysis of Blue Chip Companies

Page 71

DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 0.61 0.38 0.60 0.56 0.62

INVENTORY TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

Inventory turnover ratio 16.07 18.70 15.49 18.98 17.79

20 18 16 14 12 Current ratio 10 8 6 4 2 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Fixed assets turnover ratio Debt/equity

Fundamental & Technical Analysis of Blue Chip Companies

Page 72

NET PROFIT MARGINE (%) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
15 14.5 14 13.5 13 12.5 12 11.5 11 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Net operating income 13.26 14.35 12.32 12.88 12.78

Net operating income

Fundamental & Technical Analysis of Blue Chip Companies

Page 73

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 74

HISTORY
Tata Power is Indias oldest and largest private sector electric utility company an installed generation capacity of over 5000 MW The firm started as the Tata Hydroelectric Power Supply Company in 1911, which amalgamated with the Andhra Valley Power Supply Company in 1916; it commissioned Indias first large hydro-electric project in 1915 in Bhivpuri and Khopoli, Karjat. Today the company is Indias largest private sector electricity generating company with an installed generation capacity of over 5000 MW. It has a presence in thermal, hydro, solar and wind areas of power generation, transmission and retail.

UPCOMING PROJECTS
1. Tata Power has entered into a 51:49 joint venture with Power Grid Corporation of India for the 1200 km Tala transmission project, Indias first transmission project executed with public-private partnership financing. 2. The company has won a contract for building 4000 MW power plant at Mundra. For the first time in India a 4000MW power plant is being built in one single large construction project; all earlier large projects have involved stage construction. 3. The company has also entered into a 74:26 joint venture with Damodar Valley Corporation for building a 1050 MW coal based thermal power plant at Maithon in Dhanbad district of Jharkhand, into a 74:26 joint venture with Tata Steel Limited for setting up of power plants to meet the captive requirements of Tata Steel. It has commissioned 120MW power plant in Jojobera in 2009 and in the process of commissioning another 120 MW. 4. Tata Power has announced its partnership with Sunengy an Australian firm to build India's first floating solar plant based on Liquid Solar Array technology.

NOTES
1. 2. 3. 4. 5. 6. 7. Tata power is leading company in power sector. It is having goodwill in market as a Tata group company. Its shares face value is 2 & its market value is 96.. Its overall ratios are also increasing. Its inventory turnover ratio is having Head & shoulders Pattern Its book value is having sharp upward trend line Its index comparison is also strong

Fundamental & Technical Analysis of Blue Chip Companies

Page 75

MAHINDRA & MAHINDRA

Group / Index: A / SENSEX Utility Vehicles CASH EPS Year Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 08 Mar 09 Mar 10 Mar 11

Face value: 5.00 Scrip Code:500520 Industry: Cars &

FUNDAMENTAL ANALYSIS
CASH EPS 56.16 41.39 43.44 52.38

Book value 181.39 191.90 138.15 175.04

NOI 473.09 479.84 327.20 399.79

Fundamental & Technical Analysis of Blue Chip Companies

Page 76

600

500

400 CASH EPS 300 Book value NOI 200

100

0 8-Mar 9-Mar 10-Mar 11-Mar

CURRENT RATIO Year Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 1.10 1.06 1.11 0.86

FIXED ASSETS TURNOVER RATIO Year Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 3.22 2.84 3.85 4.08

Fundamental & Technical Analysis of Blue Chip Companies

Page 77

DEBT/EQUITY RATIO Year Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 0.59 0.77 0.36 0.23

INVENTORY TURNOVER RATIO Year Mar 08 Mar 09 Mar 10 Mar 11

Inventory turnover ratio 12.49 14.56 17.91 15.64

20 18 16 14 12 Current ratio 10 8 6 4 2 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Fixed assets turnover ratio Debt/equity

Fundamental & Technical Analysis of Blue Chip Companies

Page 78

NET PROFIT MARGINE (%) Year Mar 08 Mar 09 Mar 10 Mar 11

14 12 10 8 6 4 2 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Net operating income 9.45 6.25 11.08 11.14

Net operating income

Fundamental & Technical Analysis of Blue Chip Companies

Page 79

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 80

HISTORY
Mahindra & Mahindra Limited (M&M) is an Indian multinational automaker headquartered in Mumbai, Maharashtra, India. It is one of the largest automobile manufacturers by production in India and a subsidiary of Mahindra Group conglomerate. The company was founded in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. After India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan where he became the nation's first finance minister. The company changed its name to Mahindra & Mahindra in 1948. It is ranked #21 in the list of top companies of India in Fortune India 500 in 2011.

MAHINDRA UPCOMING CARS

Mahindra Mini Xylo
Expected Date May 2012 Expected Price Rs. 4, 50,000

The Mahindra Xylo might not be doing so well, but now Mahindra are taking notice and will be launching a mini version of the car called the Mini-Xylo. It is expected that the car will be less than 4 meters in length, which brings it into the small Mahindra Ssangyong Korando
Expected Date Jul 2012 Expected Price Rs. 15, 00,000

The Korando is one of the best selling SUVs from the Korean market and has built a wonderful reputation of being a very reliable and powerful small compact SUV. Built by Korean manufacturer Ssangyong that is now owned by Mahindra

Mahindra Ssangyong Rexton II

Expected Date Nov 2012 Expected Price Rs. 19, 00,000

The Rexton is another SUV from Korean manufacturer Ssangyong but it is a larger vehicle when compared to the Korando. The Rexton is known for its perfect off-raoding capabilities. The engine will come in the form of the 2.7 liter Mahindra Small Car
Expected Date Jun 2013 Expected Price Rs. 2, 50,000

Mahindra may be well known for making large commercial vehicles and SUVs, and they also ventured into the two-wheel segment. Now they are also planning on entering the small car segment with a 1000cc small car.

Fundamental & Technical Analysis of Blue Chip Companies

Page 81

NOTES

1. It is the 2nd largest company in transport equipment sector. 2. It is having uptrend in its ratios. 3. But its inventory turnover ratio is more than other leading transport equipment company. 4. Its shares face value is 5 & now its market value is 678 5. It produce all categorys cars like luxuries, semi-luxuries, & economic cars also 6. It is having vary nice prestige in market 7. It is having goodwill in market 8. It can be soon become leading company in this sector with its efforts.

Fundamental & Technical Analysis of Blue Chip Companies

Page 82

HINDUSTAN UNILEVER

Group / Index 500696

A / SENSEX Industry

Face value Personal Products

1.00

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 08 Mar 09 Mar 10 Mar 11 NOI 63.75 94.06 81.45 91.18 Book value 6.61 9.46 11.84 12.20 CASH EPS 8.33 11.66 10.48 10.86

Fundamental & Technical Analysis of Blue Chip Companies

Page 83

100 90 80 70 60 CASH EPS 50 40 30 20 10 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Book value NOI

CURRENT RATIO Year Mar 07 Mar 09 Mar 10 Mar 11 Current ratio 0.69 1.01 0.83 0.85

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 5.64 7.81 5.35 5.63

Fundamental & Technical Analysis of Blue Chip Companies

Page 84

DEBT/EQUITY RATIO Year Mar 07 Mar 09 Mar 10 Mar 11 Debt/equity 0.06 0.20 -

INVENTORY TURNOVER RATIO Year Mar 08 Mar 09 Mar 10 Mar 11

Inventory turnover ratio 8.20 9.26 8.99 7.91

20 18 16 14 12 Current ratio 10 8 6 4 2 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar Fixed assets turnover ratio Debt/equity

Fundamental & Technical Analysis of Blue Chip Companies

Page 85

NET PROFIT MARGINE (%) Year Mar 08 Mar 09 Mar 10 Mar 11

13 12.8 12.6 12.4 12.2 12 11.8 11.6 11.4 11.2 11 10.8 7-Mar 8-Mar 9-Mar 10-Mar

Net operating income 12.58 12.09 12.29 11.56

Net operating income

11-Mar

Fundamental & Technical Analysis of Blue Chip Companies

Page 86

TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

Fundamental & Technical Analysis of Blue Chip Companies

Page 87

HISTORY
Hindustan Unilever Limited (HUL) is India's largest fast-moving consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 16,500 employees and contributes to indirect employment of over 65,000 people. The company was renamed in June 2007 as Hindustan Unilever Limited. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG) The company joined forces with the State Bank of India to introduce banking services to people from low-income groups in rural areas. The project was piloted in the states of Maharashtra and Karnataka.

NOTES
1. HUL is the leading company in FMCG sector 2. It touches over millions of people 3. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories 4. The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands 5. Though FMCG sector of SENSEX goes down, its market capitalization is increase. 6. Its net operating income is having sharp uptrend 7. Its shares face value is 2 & its market value is 8. Its over all ratios are up trends. 407.

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LARSEN & TOUBRO

Group / Index 500510

A / SENSEX Industry

Face value : Construction & Engineering

2.00

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 622.91 853.36 578.06 612.26 717.03 Book value 203.29 326.76 212.73 303.66 352.76 CASH EPS 55.01 76.37 50.28 57.88 66.02

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900 800 700 600 500 400 300 200 100 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar CASH EPS Book value NOI

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 1.26 1.18 1.30 1.23 1.24

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 6.21 6.09 6.23 5.20 5.03

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DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 0.36 0.37 0.52 0.37 0.33

INVENTORY TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

Inventory turnover ratio 6.11 6.00 6.01 28.73 29.73

35 30 25 20 15 10 5 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Current ratio Fixed assets turnover ratio Debt/equity

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NET PROFIT MARGINE (%) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
15 14.5 14 13.5 13 12.5 12 11.5 11 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Net operating income 7.74 8.54 10.06 11.56 8.82

Net operating income

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TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

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HISTORY
The evolution of L&T into the country's largest engineering and construction organization is among the most remarkable success stories in Indian industry. L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly committed to developing India's engineering capabilities to meet the demands of industry. Beginning with the import of machinery from Europe, L&T rapidly took on engineering and construction assignments of increasing sophistication. Today, the company sets global engineering benchmarks in terms of scale and complexity.

UPCOMING PROJECTS
L&T Infrastructure Development Projects may be next in line for IPO

NOTES
1. L & T is the leading company in construction & engineer sector 2. It is having upward trends in its almost all ratios 3. It is having continuously increasing net profit margin 4. Its book value ratio is having double bottom pattern in 2007 & 2009 5. Its shares face value is 2 & its market value is 6. It is having strong index comparison in its sector 1306

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COAL INDIA

Group / Index Scrip Code

: :

A / SENSEX 533278

Face value Industry

: :

10.00 Coal

FUNDAMENTAL ANALYSIS
CASH EPS Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 BOOK VALUE Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NET OPERATING INCOME Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 NOI 4.44 4.30 0.50 0.70 0.73 Book value 20.03 21.16 24.12 27.01 30.77 CASH EPS 4.45 3.89 5.52 5.81 7.24

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35 30 25 20 15 10 5 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

CASH EPS Book value NOI

CURRENT RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Current ratio 2.66 2.75 3.03 3.22 3.09

FIXED ASSETS TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Fixed assets turnover ratio 0.79 0.76 0.86 1.19 1.19

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DEBT/EQUITY RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Debt/equity 0.13 0.11 0.11 0.08 0.07

INVENTORY TURNOVER RATIO Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11

Inventory turnover ratio 12.60 29.77 18.22 18.58 14.33

35 30 25 20 15 10 5 0 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Current ratio Fixed assets turnover ratio Debt/equity

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NET PROFIT MARGINE (%) Year Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
90 85 80 75 70 65 60 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar

Net operating income 79.94 71.24 71.76 79.59 85.35

Net operating income

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TECHNICAL ANANYSIS
OWNERSHIP PATTERN

PERFORMANCE CHART

INDEX COMPARISION

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HISTORY
In order to provide for a higher growth in coal sector to meet the growing energy needs of the country, the Government in 1973, nationalized the coal mines by enacting the Coal Nationalization Act. Pursuant to the nationalization of coal mines, our Company was incorporated as a private limited company with the name of Coal Mines Authority Limited, under the Companies Act on June 14, 1973, and in terms of notification no. G.S.R. 345(F) dated July 9, 1973, issued pursuant to the provisions of Section 5 of the Coal Nationalization Act certain nationalized coal mines were vested in our Company by the Central Government.

NOTES
1. It is one of the Navratna company 2. It is a leading company in coal sector 3. Its all ratios are having up trend 4. Its book value is having a very sharp uptrend 5. Its net profit margin is also having sharp uptrend since 2009 6. Its shares face value is 10 & now its market value is 343..

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CONCLUSION
With the help of project I concluded that blue chip companies are playing very important role in the share market. Lot of investors is investing their money in the blue chip companies. And this is the reason that the volume of blue chip companies is high.

During this period I came to know that in the process of equity analysis of blue chip companies two weapons are playing a vital role i.e. Fundamental Analysis and Technical Analysis.

The concept of Fundamental Analysis studies the performance of blue chip companies. With the help of Fundamental Analysis can know the past performance of the blue chip companies. Fundamental Analysis considers the long-term performance of companies and this helps the investors to invest their money for long term as well as can get the good returns.

Technical Analysis comprises short-term analysis of blue chip companies. Technical Analysis really just studies supply and demand in the market in an attempt to determine what direction or trend will continue in the future.

The study of technical as well as fundamental analysis can give detail information about the well running companies in the market. Before investing in any company one should study these two concepts.

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LIMITATIONS OF STUDY
To understand the overall working of share market, insuch short time period is not enough. Moreover, very few investor and agents have a detail knowledge of the study. A study is conducted in Nanded only, which restrict the scope of the study The data provided by the investor cant be held true as 100% correct. The study was conducted to understand with respect to fundamental and technical analysis, which is a part of the equity share market, other parts are neglected. Data collected for questenier is of 25 investors only.

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BIBLEOGRAPHY
A. BOOKS REFERED 1. Security analysis & portfolio management Avadhani V.A.

B. MAGZINES REFRERED 1. Marketing Mastermind C. NEWSPAPERS REFERED 1. Times of India 2. Economics Times 3. Business Line

D. WEBSITES REFERED 1. 2. 3. 4. 5. www.bseindia.com www.nseindia.com www.marketbhavishya.com www.moneycontrol.com www.businessline.com

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QUESTENIER
1. What kind of investor you are? In the Reliance money, I have asked 25 people where you like invests your money. Type of investor Intra day Medium term Long term No. of resopndent 4 13 8

No. of resopndent

Intra day Medium term Long term

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2. Where you want to invest your money? Investment type Equity Derivative Mutual funds Bank

No. of respondant 8 4 7 6

No. of respondand

Equity Derivative Mutual funds Bank

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3. In which sector you wants to invest Sector Helthcare Capital goods Finance Transport equipments Information technology Oil & Gas FMCG Metal & Mining

No. of respondent 3 2 4 2 4 2 6 2

No. of respondent
Helthcare Capital goods Finance Transport equipments Information technology Oil & Gas FMCG Metal & Mining

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4. How you take investment decision? Selection of company for investment Own Decision Broker Advice Research Reports Speculation

No.of pespondent 7 10 5 3

No.of pespondent

Own Decision Broker Advice Research Reports Speculation

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5. How many % of your investment you wants to invest in Blue chip companies? % No. of espondent 20% 3 40% 7 60% 10 100% 5

No. of espondent

20% 40% 60% 100%

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6. Which is more important analysis? Analysis Fundamental Technical Both Price only

No. of respondent 9 7 6 2

No. of respondent

Fundamental Technical Both Price only

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Name of investor Address

1. What kind of investor you are?

2. Where you want to invest your money?

3. In which sector you wants to invest

4. How you take investment decision?

5. How many % of your investment you wants to invest in Blue chip companies?

6. Which is more important analysis?

(Signature)

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