A STUDY ON IMPACT OF EARNINGS PER SHARE AND DIVIDEND PER SHARE ON BEHAVIOUR OF MARKET PRICE MOVEMENTS OF SELECTED SHARES

PROJECT REPORT Submitted by

T.SRIDHAR Register No: 098001903042

in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

IN FACULTY OF MANAGEMENT ERODE BULIDER EDUCATIONAL TRUSTS GROUP OF INSTITUTIONS KANGAYAM-638108 JUNE 2011
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ERODE BULIDER EDUCATIONAL TRUSTS GROUP OF INSTITUTIONS

FACULTY OF MANAGENMENT PROJECT REPORT JUNE 2011
This is to certify that the Project Report entitled

A STUDY ON IMPACT OF EARNINGS PER SHARE AND DIVIDEND PER SHARE ON BEHAVIOUR OF MARKET PRICE MOVEMENTS OF SELECTED SHARES
is the bonafide record of project work done by

T.SRIDHAR Register No: 098001903042 of --------------------------Faculty Guide MBA during the year 2010-2011. -----------------Dean

Submitted for the Project Viva-voce examination held on __________ -------------------------Internal Examiner Examiner
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-------------------External

DECLARATION I affirm that the project research work titled A STUDY ON IMPACT OF
EARNINGS PER SHARE AND DIVIDEND PER SHARE ON BEHAVIOUR OF MARKET PRICE MOVEMENTS OF SELECTED SHARES being submitted in

partial fulfillment for the award of Master of Business Administration is the original work carried out by me. It has not formed the part of any other project submitted for award of any degree or diploma, either in this or any other University.

Signature of the candidate Name: T.SRIDHAR Register No: 098001903042

I certify that the declaration made above by the candidate is true

Signature of the Guide

K.MUTHUKUMAR,

Assistant Professor, Faculty of Management

ACKNOWLEDGEMENT

I extend my hearty thanks to Mr.R.SUNDARAM, Channel Partner ANGEL STOCK BROKING LIMITED, for granting me permission to do the project work in their esteemed concern. I express my sincere gratitude to our honorable Chairman Mr.S.P.PERIASAMY and other college trust members for allowing me to develop the project in their institution. I am extremely thankful to Dr. J. KUMAR B.E (Mech)., M.S., Ph.D (F.I.E)., Director, Erode Builders Educational Trusts Group of Institutions, Nathakadaiyur for giving me the opportunity to feel the corporate experience through this project. I thank our dean Dr.A.G.V.NARAYANAN B.E (Agri). MBA(BIM-Trichy), FDPM(IIM-A)., Ph.D., Erode Builders Educational Trusts Group of Institutions, Nathakadaiyur for allowing me to have the extensive use of the college facilities to the project. I express my gratitude to my faculty guide Mr. K. MUTHUKUMAR BBM., MBA., M.Phil., PGDCA., for his scholarly guidance, valuable suggestions, and encouragement through out the duration of this project. I thank PROF.T.P.SARAVANAN B.Sc., MBA., M.Phil., Head of Department of FOM, Erode Builders Educational Trusts Group of Institutions, Nathakadaiyur and all staff members of FOM, for their encouragement during my study I also express my gratitude to the respondents, parents and dear friends without whom the project would not have been successful.

TABLE OF CONTENTS
CHAPTER NO. PARTICULARS LIST OF TABLES LIST OF CHARTS LIST OF ABBREVIATION 1 INTRODUCTION AND DESIGN OF STUDY 1.1 Industry Profile 1.2 Company Profile OBJECTIVES OF THE STUDY 2.1 Objectives of the study 2.2 Need for the study 2.3 Scope of the study 2.4 Limitations of the Study 2.5 Literature review RESEARCH METHODOLOGY 3.1 Introduction 3.2 Research Design 3.3 Data Source 3.4 Statistical Tools ANALYSIS AND INTERPRETATION 4.1 Correlation 4.2 Co-efficient of Correlation 4.3 Compound Annual Growth Rate FINDINGS AND CONCLUSION 5.1 Financial Sector 5.2 Energy Sector 5.3 IT Sector 5.4 Metal Sector 5.5 Automobile Sector 6 7 8 SUGGESTION CONCLUSION REFERENCES PAGE NO. 6 7 8 9 13 15 16 17 18 19 23 23 25 25 26 26 43 74 75 76 77 78 79 80 81

LIST OF TABLES
TABLE NO. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 TABLE HEADINGS Co-efficient of Financial Sector Co-efficient of Energy Sector Co-efficient of IT Sector Co-efficient of Metal Sector Co-efficient of Automobile Sector Compound Annual growth rate of Financial Sector Compound Annual growth rate of Energy Sector Compound Annual growth rate of IT Sector Compound Annual growth rate of Metal Sector Compound Annual growth rate of Automobile Sector Compound Annual growth rate of Price in Financial Sector Compound Annual growth rate of Price in Energy Sector Compound Annual growth rate of Price in IT Sector Compound Annual growth rate of Price in Metal Sector Compound Annual growth rate of Price in Automobile Sector PAGE NO. 28 31 34 37 40 44 47 50 53 56 59 62 65 68 71

LIST OF CHARTS
TABLE NO. 1 2 3 4 5 6 7 8 9 10 CHART HEADINGS Compound Annual growth rate of Financial Sector Compound Annual growth rate of Energy Sector Compound Annual growth rate of IT Sector Compound Annual growth rate of Metal Sector Compound Annual growth rate of Automobile Sector Compound Annual growth rate of Price in Financial Sector Compound Annual growth rate of Price in Energy Sector Compound Annual growth rate of Price in IT Sector Compound Annual growth rate of Price in Metal Sector Compound Annual growth rate of Price in Automobile Sector PAGE NO. 46 49 52 55 58 61 64 67 70 73

LIST OF ABBREVIATION

EPS DPS P/E NSE HDFC SBI ICICI ONGC TCS

EARNING PER SHARE DIVIDEND PER SHARE PRICE EARNING RATIO NATIONAL STOCK EXCHAGE HOUSING DEVELOPMENT CORPORATION STATE BANK OF INDIA INDUSTRIAL CREDIT

AND

FINANCIAL

AND

INVESTMENT

CORPORATION OF INDIA OIL & NATURAL GAS CORPORATION TATA CONSULTANCY SERVICES

CHAPTER I INTRODUCTION AND DESIGN OF STUDY

1.1

INDUSTRY PROFILE

In the wake of the introduction of new economic policy in the middle of the year 1991, the Indian Capital Market has witnessed a tremendous growth. There was an 8

explosion of investor interest during the nineties and an equity cult emerged in the country. To experience sustained growth statutory legislations have helped the capital market. Foreign Exchange Regulation Act is one such legislation in this direction. Government of India has initiated several steps to strengthen the capital market and regulate its activities. The number of shareholders has increased from a low figure of about two millions towards the end of seventies to the level of more than 25 millions.

An important recent development has been the entry of Foreign Institutional Investors as participants in the primary and secondary markets for industrial securities. In the past several years, investments in developing countries have increased remarkably. Among the developing countries India has received considerable capital inflows in recent years. The liberalization policy of the Government of India has now started yielding results and the country is poised for a big leap in the industrial and economic growth. The Economy of the country is mainly based on the development of the corporate sectors. Funds may be raised through securities market for financing corporate growth.

Generally, the security prices reflect the performance of a company. Both economic and non-economic factors invariably affect stock return behavior. As Cootner (1964) says that the prices of securities are typically very sensitive, responsive to all events, both real and imagined. Again a major factor responsible for stock return fluctuations is speculative purchase and sale by foreign institutional investors. Indian financial institutions also play a major role in equity market leading to stock return fluctuations. Many theories have come up which have empirically verified the investors behavior at the international as well as at the Indian context. In the present project, it is attempted to test the equity price movements taking pharmaceuticals, oil and sugar industries as sample sectors.

1.1.1

Stock Exchange

The stock exchange or secondary market is a highly organized market for the purchase and sale of second hand quoted of listed securities. The securities contracts (Regulation) Act 1956 defines a stock exchange as an association, organization or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities.

Of all the modern service institutions, stock exchange plays a crucial agents and facilitators of entrepreneurial progress. After the industrial resolution, as the size of the business enterprises grew, it was no longer possible for individual person or even partnerships to raise such huge amount for undertaking these ventures. Such huge requirements of capital can be met only large number of individuals.

These investors could be expected to participate actively only if investment is liquid or they could sell a part of their stake whenever they wish to generate cash. This liquidity can be achieved through shares and debentures representing smallest units of ownership and lending represented by the public. The institution where these securities are traded is known as stock exchange. This stock exchange is one of the most important institutions in the capital market.

1.1.2

Bombay Stock Exchange

The origin of the Bombay stock exchange date back to 1875. It was organized under the name of the native stock and shares brokers association as a voluntary and nonprofit making association. It was recognized on a permanent basis in 1957. This premier stock exchange is the oldest stock exchange in Asia. The objectives of the stock exchanges are:

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1. exchange. 2. 3. securities. 4.

To safeguard the interest of the investing public having dealings on the To establish and promote honorable and just practices in securities transaction. To promote, develop, and maintain well regulated market for dealing in To promote industrial development in the country through efficient resource mobilization by the way of investment in corporate securities.

1.1.3

National Stock Exchange

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June2000.

Trading on NSE is characterized by four key innovations.

The physical floor was replaced by anonymous, computerized order- matching with 11

strict prime-time priority. The limitations of being on Mumbai and the limitations of Indias Public telecom network were avoided by using satellite communications. Now NSE has a network of over 2000 satellite terminals all over the country. On a typical day almost over 3500 traders login to the trading computer over this network. This is larger than the capacity of the largest trading floors in the world. NSE is not owned by brokers. It is a limited liability company and brokers or franchisees. Therefore NSEs staff is free of pressures from brokers and is able to perform its regulatory and enforcement functions more effectively.

Traditional practices of unreliable fortnightly settlement cycle with escape clause of badla were replaced by a strict weekly settlement cycle without badla.

1.2

COMPANY PROFILE Angel Group has emerged as one of the top five retail stock broking houses in India,

having membership of BSE, NSE and the two leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is also registered as a Depository Participant with CDSL. The group is promoted by Mr. Dinesh Thakkar, who started this business as a subbroker in 1987 with a team of 3. Today the angel group is managed by a team of 1937 direct employees and has a nationwide network comprising of 21 Regional hubs, 124 branches and 6810 sub brokers & business associates. Angel is 100% focused on retail stock broking business unlike any other larger national broking house. The group currently services more than 5.9 thousand retail clients.

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Angel habitually generates value added features without the cost burden being passed onto the clients as they strongly believe that better understanding of clients needs and wants is their top priority. Their e-broking facility is one such effort, which gives the client a platform to access state of the art trading facility at the click of a button. Angel has always strived for delivering customer delight and developing strong long term bonds with its clients as well as channel partners. Angel thrives on a vision to introduce new and innovative products and services constantly. Moreover, Angel has been among the pioneers to introduce the latest technological innovations and integrate them efficiently in its business. About Angel Angel Bookings try with excellence in customer relations began more than 20 years ago. Angel Group has emerged as one of the top 3 retail broking houses in India and incorporated in 1987. Today, Angel has emerged as a premium Indian stock-broking and wealth management house, with an absolute focus on retail business and a commitment to provide "Real Value for Money" to all its clients. It has memberships on BSE, NSE and the leading commodity exchanges in India NCDEX & MCX. Angel is also registered as a depository participant with CDSL.

Angels Presence: Nation- wide network of 21 regional hubs Presence 124 cities 6800 + sub brokers & business associates 5.9 lakh + clients Milestones Awarded with 'Broking House with Largest Distribution Network' and 'Best Retail Broking House' at Dun & Bred street Equity Broking Awards 2009 August, 2008 Crossed 500000 trading accounts 13

November,2007 Major Volume Driver for 2007 December,2006 Created 2500 business associates October,2006 Major Volume Driver award for 2006 September,2006 Launched Mutual Fund and IPO business July,2006 Launched the PMS function October,2005 Major Volume Driver award for 2005 September,2004 Launched Online Trading Platform April,2004 Initiated Commodities Broking division April,2003 First published research report November,2002 Angels first investor seminar March,2002 Developed web-enabled back office software November,1998 Angel Capital and Debt Market Ltd. Incorporated December,1997 Angel Broking Ltd. Incorporated

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CHAPTER-2 OBJECTIVES, NEED, SCOPE, AND LIMITATIONS

2.1

OBJECTIVES OF THE STUDY

The main objective of the study is to determine the share price movement of the selected industries in India. More specifically, the objectives of the study are as follows;

To study the impact of the Earnings Per Share on the share price movements of the selected industries. To study the impact of the Dividend Per Share on the share price movements of the selected industries. To study the impact of the Price Earnings Ratio on the share price movements of the selected industries. To assess the growth of EPS, DPS, of selected shares

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2.2

NEED FOR THE STUDY

The study analyses the impact of Earnings per Share, Dividend Per Share, and Price Earning Ratio in various share price movements of various companies of various sectors of National Stock Market, which is also funneled down to the NIFTY stocks.

There is always an expectation of the stock holders to get an optimum return for the risk being beared by the investors in investing in such stocks .The returns are expected in the form of appreciation of the share values and in the form of dividends declared by the companies.

There is a need to analyze whether the Earnings per Share issued by the companies is playing a major role in the price movements of the stocks. And whether Dividend Per Share impact is major factor or whether Price Earning Ratio is having an impact in prices changes of the stock market.

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2.3

SCOPE OF THE STUDY

The purpose of the study is to find out whether the companies share prices movements depends on the companies profit and their dividend issues. The research reveals a general study related to the investment patterns of investors relate to the price changes due to Earnings per Share, Dividend Per Share, Price Earnings Ratio. The research reveal the results regarding the various Earnings Per Share , Dividend Per Share, Price Earning Ratio impact on the price changes during that period. Data are collected from the web sites helped to find out the impact and the causes of price changes.

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2.4

LIMITATIONS OF THE STUDY

The following are the limitations of this study.

Though there are many industries listed in the National Stock Exchange only 5 sectors and 25 companies have been selected for the analysis due to lack of time. An in-depth analysis on the cause of changes in industrys performance is not being made. The analysis results can be used for predicting the future results only to some extent.

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2.5

LITERATURE REVIEW

DIVIDEND AN OVERVIEW Dividend The term dividend refers to that part of profit of a company that is distributed by the company among its share holders. It is the reward for the shareholders for investments made by them in the shares of company. Dividend Yield The dividend yield on a company stock is the companys annual dividend payments dividend by its market cap, or the Dividend Per Share dividend by the price per share. Its often expressed as a percentage. Dividend Policy The term dividend refers to that part of profit of a company, which is distributed by the company among its share holders. It is the reward for the share holders for investment made by them in the shares of company. The investors are interested in earning the maximum return on their investment and maximize their wealth. Determinant of dividend policy

The payment of dividend involves legal as well as financial considerations. It is difficult to determine a general dividend policy which can be followed by different firms at different times because the dividend decision has to be taken considering special circumstances of an individual case. The following are the important factors, which determine the dividend policy of a firm

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 Legal restrictions Magnitude and trend of earnings Desire and type of share holders Nature of industries Age of the company Future financial requirements Governments economic policy Taxation policy Inflation Requirements of institutional investors

DIVIDEND VARIABLITY AND VARIOUS BOUNDS TESTS FOR THE RATIONALITY OF STOCK MARKET PRICES

TERRY A.MARSH AND ROBERT C. MERTON perhaps as for as long as there has been a stock market Economists have debated whether or not stock prices rationally reflect the intrinsic or fundamental values of the underlying companies.

SAMUELSON - FAMA efficient market hypothesis that stock prices fully reflect available information and are therefore the best estimate of the intrinsic values the majority of the empirical studies report results that are consistent with stock market rationally There is for example considerable evidence that, on average, individual stock prices respond rationally to surprise announcements concerning firm fundamentals, such as dividend and earnings changes and those prices do not respond to non-economic events. Stock price are however, also known to be considerably more volatile than either dividends or accounting earnings.

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THE EX DIVIDEND DAY BEHAVIOUR OF STOCK PRICES

AVNER KALAY- past studies have documented an ex- dividend day prices drop which is less than the Dividend Per Share and positively correlated with the corresponding dividend yield. In contrast to prior work, we show that, without additional information, the marginal tax rates cannot be inferred from this phenomenon, which is, there fore, not necessarily the result of a tax included clientele effect. Despite adjustments for potential biases in earlier work however, the correlation between the ex dividend relatively price drop and the dividend yield is still positive which is consistent with a tax effect and a tax included clientely effect.

MILLER AND MODIGLIANI - show, if capital markets are perfect the dividend policy of the firm, for a given investments policy, does not affect its market value.

DIVIDEND CHANGES AND SECUTRITY PRICES

J.RANDALLWOOLRIDGE -- This paper analyzes the effect of unexpected dividend changes on the values of common stock, preferred stock, and bonds. Two potential effects are identified: a wealth transfers affects and a signaling effect. Previous studies have that positive (negative) dividend change announcements produce positive (negative) common stock price changes. Where as these findings have been attributed to the signaling aspect of dividends, they are also consistent with the wealth transfer hypothesis, Based on the announcements day return of common and preferred stock and bondholders, it is demonstrated that the primary factor influencing security returns in response to dividend changes is market signaling. A wealth transfer effect is not necessarily ruled out, but if it exists it is dominated by the signaling effect.

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MODIGLIANI AND MILLER have shown that in perfect capital market with no information asymmetry the value of a firm is independent of financing decisions if the production investment decisions are given. Thus, the payment of cash dividends to equity holders is of no consequence to stockholder wealth or firm value.

DO STOCK PRICES MOVE TOO MUCH TO BE JUSTIFIED BY SUBSEQUENT CHANGES IN DIVIDENDS

ROBERT J. SHILLER It has often been claimed in popular discussion that he stock price indexes seem too volatile, that is that the movements in stock price indexes could not realistically be attributed to any objectives new informations, since movements in the price indexes seem to be too big relative to actual subsequent events. Recently the notion that financial asset price are too volatile to accord with efficient market has received some econometric support in paper by Stephen Leroy and Richard porter on the stock market.

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CHAPTER-3 RESEARCH METHODOLOGY

3.1

INTRODUCTION Research methodology is a way to systematically solve the research problems. It

includes the overall research design, the sampling procedure, and Data collection method and analysis procedure.

3.2

RESEARCH DESIGN A research design is the arrangement of condition for collection and analysis of

data in a manner, which may result in an economy in procedure. It stands for advance planning for collection of the relevant data and the techniques to be used in analysis, keeping in view the objectives of the research and availability of time. The research used here for the study is exploratory research. Exploratory research is quite informal, it relays on the secondary data .The result are usually used for making decision by themselves.

The shares are chosen from the NSE India site, which are actively and highly traded industries in the past five years.

No. Of Years No. Of Sectors No. Of Companies

5 years 5 sectors 25 companies

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Five years financial data collected from the five sectors and each sector consist of five companies constitute the sample size.

Year taken for study Sectors for study FINANCIAL SECTOR ICICI

: 2006-2010 :

HOUSING DEVELOPMENT FINANCIAL CORPORATION HDFC BANK STATE BANK OF INDIA AXIS BANK ENERGY SECTOR RELIANCES INDUSTRIES OIL & NATURAL GAS CORPORATION NTPC TATA POWER GAIL INDIA IT SECTOR INFOSYS TECHNOLOGIES\ TCS WIPRO LTD HCL TECHOLOGIES LTD TECH MAHINDRA METAL SECTOR TATA STEEL HINDALCO INDUSRTIES LTD STERLITE INDUSRTIES LTD JINDAL STEEL & POWER LTD 24

 SESA GOA LTD AUTOMOBILE SECTOR TATA MOTORS LTD MAHINDRA & MAHINDRA LTD BAJAJ AUTO LIMITED HERO HONDA MOTORS LTD MARUTHI SUZUKI INDIA LTD 3.3 DATA SOURCE While deciding about the method of data collection for the study the researcher should keep in mind the two sources of data.

Primary data Secondary data The source taken for study is, 3.4.1 Secondary Data Secondary data are also collected through the NSE India sites and websites of various companies Review of the articles being published on the topic in various magazines The information in the NSE India has helped to analyze the price changes.

3.5

STATISTICAL TOOLS The data are analyzed through statistical method. There are various statistical tools

to analysis the data. 25

Correlation Co-efficient of Correlation Compound Annual Growth Rate

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

4.1

CORRELATION Correlation analysis helps to determine the strength of the linear relationship

between the two variables X and Y, in other words, as to how strongly are these two variables correlated. Karl Pearson, in 1896, developed an Index or Coefficient of this association in cases where the relationship is a linear one, i.e. where the trend of the relationship can be described by a straight line. The Pearsons coefficient of correlation is designated by r. The coefficient of correlation r can be designed as a measure of strength of the linear relationship between the two variables X and Y. The sign of the coefficient can be positive or negative. It is positive when the slope of the line is positive and it is negative when the slope of the line is negative.

4.2 COEFFICIENT OF CORRELATION (r)

The correlation coefficient, denoted by r, is a measure of the strength of the straight-line or linear relationship between two variables. The correlation coefficient takes on values ranging between +1 and -1. The following points are the accepted guidelines for interpreting the correlation coefficient: 26

1. 0 indicates no linear relationship. 2. +1 indicates a perfect positive linear relationship: as one variable increases in its values, the other variable also increases in its values via an exact linear rule. 3. -1 indicates a perfect negative linear relationship: as one variable increases in its values, the other variable decreases in its values via an exact linear rule. 4. Values between 0 and 0.3 (0 and -0.3) indicate a weak positive (negative) linear relationship via a shaky linear rule. 5. Values between 0.3 and 0.7 (0.3 and -0.7) indicate a moderate positive (negative) linear relationship via a fuzzy-firm linear rule. 6. Values between 0.7 and 1.0 (-0.7 and -1.0) indicate a strong positive (negative) linear relationship via a firm linear rule. 7. The value of r squared is typically taken as the percent of variation in one variable explained by the other variable, or the percent of variation shared between the two variables. 8. Linearity Assumption. The correlation coefficient requires that the underlying relationship between the two variables under consideration is linear. If the relationship is known to be linear, or the observed pattern between the two variables appears to be linear, then the correlation coefficient provides a reliable measure of the strength of the linear relationship. If the relationship is known to be nonlinear, or the observed pattern appears to be nonlinear, then the correlation coefficient is not useful, or at least questionable.

r =

n( XY) ( X) ( Y ) n X 2 ( X) 2 n Y 2 ( Y )2

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TABLE - 4.1 FINANCIAL SECTOR S.No 1 2 3 4 5 Name of the company ICICI HDFC LTD HDFC BANK SBI AXIS BANK Price/EPS R r2 0.844 -0.550 0.971 0.723 0.770 0.712 0.302 0.944 0.523 0.593 Price/DPS r r2 0.495 -0.640 0.919 0.737 0.763 0.245 0.410 0.844 0.543 0.583 Price/PE R r2 0.912 -0.917 -0.271 0.382 -0.001 0.832 0.841 0.073 0.146 3.45E

From the above table it is found that: ICICI is having high positive correlation with Price Earnings Ratio. The calculated r (0.912) value shows that the Price Earnings Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.832, which indicates 83.2% of the variations of share price movements are due to Price Earnings Ratio. Next to the price earnings ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.844). The coefficient of determination r2 value is 0.712, which indicates 71.2% of the share price movements are due to the Earnings Per Share. The Dividend Per Share are having low degree of positive correlation and only 24.5% of the share price movements are due to the Dividend Per Share. HDFC LTD is having high negative correlation with Earnings Per Share. The calculated r (-0.550) value shows that the Earnings Per Share is negative correlated and 28

here the calculated coefficient of determination r2 is 0.302, which indicates 30.2% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings Per Share, Dividend Per Share is having high negative correlation with share price movements. Here the calculated value of r is (-0.640). The coefficient of determination r2 value is 0.410, which indicates 41% of the share price movements are due to the Dividend Per Share. The Price Earning Ratio is having low degree of positive correlation and only 84.1% of the share price movements are due to the Price Earning Ratio. HDFC BANK is having high positive correlation with Earnings Per Share. The calculated r (0.971) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.944, which indicates 94.4% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings per Share, Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.919). The coefficient of determination r2 value is 0.844, which indicates 84.4% of the share price movements are due to the Dividend Per Share. The Price Earning Ratio is having low degree of negative correlation and only 7.3% of the share price movements are due to the Price Earning Ratio. SBI is having high positive correlation with Dividend Per Share. The calculated r (0.737) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.543, which indicates 54.3% of the variations of share price movements are due to Dividend Per Share. Next to the Dividend Per Share, Earnings per Share are having high positive correlation with share price movements. Here the calculated value of r is (0.723). The coefficient of determination r2 value is 0.523, which indicates 52.3% of the share price movements are due to the Earnings per Share. The Price Earning Ratio is having low degree of positive correlation and only 14.6% of the share price movements are due to the Price Earning Ratio. 29

Axis bank is having high positive correlation with Earnings Per Share. The calculated r (0.77) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.593, which indicates 59.3% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings Per Share, Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.763). The coefficient of determination r2 value is 0.865, which indicates 58.3% of the share price movements are due to the Dividend Per Share. The Price Earning Ratio is having low degree of negative correlation and only 3.45% of the share price movements are due to the Price Earning Ratio.

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TABLE - 4.2 ENERGY SECTOR S.No 1 2 3 4 5 Name of the company RELIANCES INDUSTRIES ONGC NTPC TATA POWER GAIL(INDIA) Price/EPS R r2 0.893 0.711 0.431 0.847 0.333 0.798 0.506 0.185 0.717 0.110 Price/DPS r r2 0.824 0.705 0.366 0.726 0.024 0.679 0.498 0.134 0.528 0.006 Price/PE r r2 0.634 -0.235 0.998 0.964 0.783 0.402 0.055 0.996 0.930 0.613

From the above table it is found that: RELIANCES INDUSTRIES is having high positive correlation with Earnings Per Share. The calculated r (0.893) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.798, which indicates 79.8% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings Per Share, Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.824). The coefficient of determination r2 value is 0.679, which indicates 67.9% of the share price movements are due to the earning. The price earnings ratio are having low degree of positive correlation and only 40.2% of the share price movements are due to the price earnings ratio. ONGC is having high positive correlation with Earnings per Share. The calculated r (0.711) value shows that the Earnings per Share is positive correlated and here the 31

calculated coefficient of determination r2 is 0.506, which indicates 50.6% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings per Share, Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.705). The coefficient of determination r2 value is 0.498, which indicates 49.8% of the share price movements are due to the Dividend Per Share. The Price Earning Ratio is having low degree of positive correlation and only 5.5% of the share price movements are due to the Price Earning Ratio. NTPC is having high positive correlation with price earnings ratio. The calculated r (0.998) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0.996, which indicates 99.6% of the variations of share price movements are due to price earnings ratio. Next to the price earnings ratio, Earnings per Share are having high positive correlation with share price movements. Here the calculated value of r is (0.431). The coefficient of determination r2 value is 0.185, which indicates 18.5% of the share price movements are due to the Earnings per Share. The Dividend Per Share is having low degree of positive correlation and only 13.4% of the share price movements are due to the Dividend Per Share.

TATA POWER is having high positive correlation with Price Earnings Ratio. The calculated r (0.964) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.93, which indicates 93% of the variations of share price movements are due to Price Earning Ratio. Next to the Price Earnings Ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.726). The coefficient of determination r2value is 0.528, which indicates 52.8% of the share price movements are due to the Earnings Per Share. The Dividend Per Share are having low degree of positive correlation and only 52.8% of the share price movements are due to the Dividend Per Share.

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GAIL (India) is having high positive correlation with Price Earnings Ratio. The calculated r (0.783) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.613, which indicates 61.3% of the variations of share price movements are due to Price Earning Ratio. Next to the Price Earnings Ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.333). The coefficient of determination r2value is 0.11, which indicates 11% of the share price movements are due to the Earnings Per Share.

The Dividend Per Share are having low degree of positive correlation and only 0.06% of the share price movements are due to the Dividend Per Share.

33

TABLE - 4.3 IT SECTOR S.No 1 2 3 4 5 Name of the company INFOSYS TCS WIPRO HCL TECH MAHINDRA Price/EPS R r2 0.566 0.407 0.436 0.870 -0.788 0.320 0.166 0.190 0.758 0.621 Price/DPS R r2 0.391 -0.220 -0.200 0.552 0.027 0.153 0.048 0.040 0.305 0.007 Price/PE r r2 0.643 0.653 0.068 0.911 0.886 0.413 0.426 0.004 0.830 0.785

From the above table it is found that: INFOSYS is having high positive correlation with price earnings ratio. The calculated r (0.643) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is0.413, which indicates 41.3% of the variations of share price movements are due to price earnings ratio. Next to the price earnings ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.566). The coefficient of determination r2 value is 0.32, which indicates 32% of the share price movements are due to the Earnings Per Share. The Dividend Per Share are having very low degree of positive correlation and only 15.3% of the share price movements are due to the Dividend Per Share. TCS is having high positive correlation with Price Earnings Ratio. The calculated r (0.653) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.426, which indicates 42.6% of the variations of share price movements are due to Price Earning Ratio. Next to the Price Earnings Ratio, 34

Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.407). The coefficient of determination r2value is 0.166, which indicates 16.6% of the share price movements are due to the Earnings Per Share. The Dividend Per Share are having low degree of positive correlation and only 4.8% of the share price movements are due to the Dividend Per Share. WIPRO is having high positive correlation with Earnings Per Share. The calculated r (0.436) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.19, which indicates 19% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings Per Share, price earnings ratio is having high positive correlation with share price movements. Here the calculated value of r is (0.068). The coefficient of determination r2value is 0.004, which indicates 0.04% of the share price movements are due to the price earnings ratio. The Dividend Per Share are having low degree of positive correlation and only 0.04% of the share price movements are due to the Dividend Per Share. HCL is having high positive correlation with price earnings ratio. The calculated r (0.911) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0.83, which indicates 83% of the variations of share price movements are due to price earnings ratio. Next to the price earnings ratio Earnings per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.87). The coefficient of determination r2 value is 0.758, which indicates 75.8% of the share price movements are due to the Earnings per Share. The Dividend Per Share are having low degree of positive correlation and only 30.5% of the share price movements are due to the Dividend Per Share.

35

TECH MAHINDRA is having high positive correlation with price earnings ratio. The calculated r (0.886) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is0.785, which indicates 78.5% of the variations of share price movements are due to price earnings ratio. Next to the price earnings ratio, Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.027). The coefficient of determination r2 value is 0.007, which indicates 0.07% of the share price movements are due to the Dividend Per Share.

The Earnings per Share are having very low degree of negative correlation and only 62.1% of the share price movements are due to the Earnings per Share.

TABLE - 4.4 METAL SECTOR

36

S.No 1 2 3 4 5

Name of the company TATA STEEL HINDALCO STERLITE JINDAL SESA GOA LTD

Price/EPS r r2 0.349 0.073 0.974 0.383 0.871 0.120 0.005 0.950 0.147 0.760

Price/Dps R r2 0.336 0.502 -0.760 0.299 0.858 0.113 0.252 0.578 0.089 0.736

Price/PE R r2 0.877 0.449 -0.304 0.754 0.012 0.769 0.202 0.092 0.569 0.006

From the above table it is found that:

TATA STEEL is having high positive correlation with Price Earning Ratio. The calculated r (0.877) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.769, which indicates 76.9% of the variations of share price movements are due to Price Earning Ratio. Next to the Price Earnings Ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.349). The coefficient of determination r2value is 0.12, which indicates 12% of the share price movements are due to the Earnings Per Share. The Dividend Per Share are having low degree of positive correlation and only 11.3% of the share price movements are due to the Dividend Per Share. HINDALCO is having high positive correlation with Dividend Per Share. The calculated r (0.502) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.252, which indicates 25.2% of the variations of share price movements are due to Dividend Per Share. Next to the Dividend Per Share, price earnings ratio is having high positive correlation with share price movements. Here the calculated value of r is (0.449). The coefficient of determination

37

r2value is 0.202, which indicates 20.2% of the share price movements are due to the price earnings ratio. The Earnings Per share are having low degree of positive correlation and only 0.05% of the share price movements are due to the Earnings Per share. STERLITE is having high positive correlation with Earnings Per Share. The calculated r (0.974) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.95, which indicates 95% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings Per Share, Dividend Per Share is having high negative correlation with share price movements. Here the calculated value of r is (-0.76). The coefficient of determination r2value is 0.578, which indicates 57.8% of the share price movements are due to the Dividend Per Share. The price earnings ratio are having low degree of negative correlation and only 9.2% of the share price movements are due to the price earnings ratio. JINDAL is having high positive correlation with Price Earnings Ratio. The calculated r (0.754) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.569, which indicates 56.9% of the variations of share price movements are due to Price Earning Ratio. Next to the Price Earnings Ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.383). The coefficient of determination r2value is 0.147, which indicates 14.7% of the share price movements are due to the Earnings Per Share. The Dividend Per Share are having low degree of positive correlation and only 8.9% of the share price movements are due to the Dividend Per Share.

SESA GOA LTD is having high positive correlation with Earnings Per Share. The calculated r (0.871) value shows that the Earnings Per Share is positive correlated and here 38

the calculated coefficient of determination r2 is0.76, which indicates 76% of the variations of share price movements are due to Earnings Per Share. Next to the Earnings Per Share, Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.858). The coefficient of determination r2 value is 0.736, which indicates 73.6% of the share price movements are due to the Dividend Per Share.

The Price-Earning Ratio is having very low degree of positive correlation and only 0.6% of the share price movements are due to the Price-Earning Ratio.

TABLE - 4.5 AUTOMOBILE SECTOR S.No Name of the company Price/EPS R r2 39 Price/DPS R r2 Price/PE R r2

1 2 3

TATA MOTORS MAHINDRA & MAHINDRA BAJAJ AUTO LTD HERO HONDA MOTORS MARTUTI SUZUKI

0.123 -0.561 0.921

0.015 0.315 0.849

0.492 -0.662 0.968

0.242 0.439 0.938

0.243 0.837 0.275

0.059 0.701 0.075

4 5

0.892 0.262

0.796 0.068

0.745 0.129

0.557 0.016

0.456 0.590

0.208 0.348

From the above table it is found that: TATA MOTORS is having high correlation with Dividend Per Share. The calculated r (0.492) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.242, which indicates 24.2% of the variations of share price movements are due to Dividend Per Share. Next to the Dividend Per Share, price earnings ratio is having high positive correlation with share price movements. Here the calculated value of r is (0.243). The coefficient of determination r2value is 0.059, which indicates 5.9% of the share price movements are due to the price earnings ratio. The Earnings Per share are having low degree of positive correlation and only 1.5% of the share price movements are due to the Earnings Per share. Mahindra & Mahindra is having high positive correlation with Price Earnings Ratio. The calculated r (0.837) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.701, which indicates 70.1% of the variations of share price movements are due to Price Earning Ratio. Next to the Price Earning Ratio, Earnings Per share is having high negative correlation with share price movements. Here the calculated value of r is (-0.561). The coefficient of

40

determination r2value is 0.315, which indicates 31.5% of the share price movements are due to the Earnings Per share. The Dividend Per Share are having low degree of negative correlation and only 43.9% of the share price movements are due to the Dividend Per Share. BAJAJ AUTO is having high positive correlation with Dividend Per Share. The calculated r (0.968) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.938, which indicates 93.8% of the variations of share price movements are due to Dividend Per Share. Next to the Dividend Per Share, Earnings per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.921). The coefficient of determination r2 value is 0.849, which indicates 84.9% of the share price movements are due to the Earnings per Share. The Price Earning Ratio is having low degree of positive correlation and only 7.5% of the share price movements are due to the Price Earning Ratio. HERO HONDA MOTORS is having high positive correlation with Earnings Per Share. The calculated r (0.892) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.796, which indicates 79.6% of the variations of share price movements are due to Earnings Per Share. Next to the Dividend Per Share, Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.745). The coefficient of determination r2 value is 0.557, which indicates 55.7% of the share price movements are due to the Dividend Per Share.

The Price Earning Ratio is having low degree of positive correlation and only 20.8% of the share price movements are due to the Price Earning Ratio.

41

MARTUTI SUZUKI is having high correlation with price earnings ratio. The calculated r (0.59) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is0.348, which indicates 34.8% of the variations of share price movements are due to price earnings ratio. Next to the price earnings ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.129). The coefficient of determination r2 value is 0.016, which indicates 1.6% of the share price movements are due to the Earnings Per Share. The Earnings Per Share is having very low degree of positive correlation and only 6.8% of the share price movements are due to the Earnings Per Share.

4.3 COMPOUND ANNUAL GROWTH RATE

42

The year-over-year growth rate of an investment over a specified period of time and compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered. This can be written as follows:

Applications These are some of the common CAGR applications: Calculating and communicating the average returns of investment funds Demonstrating and comparing the performance of investment advisors Comparing the historical returns of stocks with bonds or with a savings account Forecasting future values based on the CAGR of a data series (you find future values by multiplying the last datum of the series by (1 + CAGR) as many times as years required). As every forecasting method, this method has a calculation error associated. Analyzing and communicating the behavior, over a series of years, of different business measures such as sales, market share, costs, customer satisfaction, and performance.

TABLE - 4.6

43

FINANCIAL SECTOR ICICI YEAR EPS DPS 2006 28.55 8.5 2007 34.59 10 2008 37.37 11 2009 33.76 11 2010 36.1 12 CAGR 4.8% 7.14% HDFC LTD EPS DPS 50.38 20 62.07 22 85.77 25 80.24 30 98.45 36 14.3% 12.4% HDFC BANK EPS DPS 27.81 5.5 44.87 7 44.87 8.5 52.77 10 64.42 12 18.2% 16.8% SBI EPS DPS 83.73 14 86.29 14 106.56 21.5 143.67 29 144.37 30 11.5% 16.46% AXIS BANK EPS DPS 17.41 19.5 23.4 8.5 29.94 6 50.57 10 62.06 12 28.9% 27.9%

From the above table it is found that:

ICICI: Over the course of 5 periods Earnings Per Share increased from 28.55 to, 36.1 and its compound annual growth rate or its overall return, is 4.8% and Dividend Per Share increased from 8.5 to 12, and its compound annual growth rate or its overall return, is 7.14%

HDFC LTD Over the course of 5 periods Earnings Per Share increased from 50.38 to 98.45, and its compound annual growth rate or its overall return, is 14.3%. And Dividend Per Share increased from 20 to 36, and its compound annual growth rate or its overall return, is 12.4%

HDFC BANK: Over the course of 5 periods Earnings Per Share increased from 27.81 to 64.42, and its compound annual growth rate or its overall return, is 18.2% and Dividend Per Share increased from 5.5 to 12, and its compound annual growth rate or its overall return, is 16.8% SBI: Over the course of 5 periods Earnings Per Share increased from 83 to 144.37, and its compound annual growth rate or its overall return, is 11.51% and Dividend Per

44

Share increased from 14 to 30, and its compound annual growth rate or its overall return, is 16.46%

AXIS BANK: Over the course of 5 periods Earnings Per Share increased from 17.41 to 62.06, and its compound annual growth rate or its overall return, is 28.94% and Dividend Per Share increased from 3.5 to 12, and its compound annual growth rate or its overall return, is 27.94%

CHART-4.1 45

TABLE - 4.7 ENERGY SECTOR 46

RELIANCES YEAR 2006 2007 2008 2009 2010 CAGR EPS 65.08 85.71 133.86 97.28 49.64 -5.2% DPS 10 11 13 13 7 -6.8%

ONGC EPS 101.2 73.14 78.09 75.4 78.39 -4.9% DPS 45 32 32 32 33 -6%

NTPC EPS 7.06 8.33 8.99 9.95 10.59 8.4% DPS 2.8 3.2 3.5 3.6 3.8 6.2%

TATA POWER EPS DPS 30.85 8.5 35.21 9.5 39.42 10.5 41.65 11.5 39.93 12 5.2% 7.1%

GAIL(INDIA) EPS 27.32 28.22 30.76 22.1 24.75 -1.9% DPS 10 10 10 7 7.5 -5.5%

From the above table it is found that: RELIANCES INDUSTRIES: Over the course of 5 periods Earnings Per Share declined from 65.08 to 49.64, and its compound annual growth rate or its overall return, is -5.2% and Dividend Per Share declined from 10 to 7, and its compound annual growth rate or its overall return, is -6.8% ONGC: Over the course of 5 periods Earnings Per Share declined from 101.2 to 78.39, and its compound annual growth rate or its overall return, is -4.97% and Dividend Per Share declined from 45 to 33, and its compound annual growth rate or its overall return, is -6% NTPC: Over the course of 5 periods Earnings Per Share increased from 7.06 to 10.59, and its compound annual growth rate or its overall return, is 8.4% and Dividend Per Share increased from 2.8 to 3.8, and its compound annual growth rate or its overall return, is 6.2%

TATA POWER: Over the course of 5 periods Earnings Per Share increased from 30.85 to 39.93, and its compound annual growth rate or its overall return, is 5.29% and

47

Dividend Per Share increased from 8.5 to 12, and its compound annual growth rate or its overall return, is 7.14%

GAIL (INDIA): Over the course of 5 periods Earnings Per Share declined from 27.32 to 24.75, and its compound annual growth rate or its overall return, is -1.95% and Dividend Per Share declined from 10 to 7.5, and its compound annual growth rate or its overall return, is -5.59%

CHART-4.2

48

TABLE - 4.8 IT SECTOR

49

INFOSYS YEAR 2006 2007 2008 2009 2010 EPS 87.86 66.23 78.15 101.58 101.13 DPS 45 11.5 33.25 23.5 25 -11% EPS

TCS DPS 13.5 11.5 14 14 20 8.1%

WIPRO EPS 14.17 19.48 20.96 20.3 33.36 18.6% DPS 5 6 6 4 6 3.7% EPS

HCL DPS 16 8 9 7 4 EPS

TECH MAHINDRA DPS 8.8 2.3 5.5 4 3.5 -17%

55.52 38.39 46.07 47.92 28.62 -12%

19.74 16.6 11.72 14.88 15.57

19.58 5.38 26.84 81.05 60.73 25.4%-

CAGR 2.8%

-4.6% -24%

From the above table it is found that: INFOSYS: Over the course of 5 periods Earnings Per Share increased from 87.86 to 101.13, and its compound annual growth rate or its overall return, is 2.85% and Dividend Per Share declined from 45 to 25, and its compound annual growth rate or its overall return, is -11% TCS: Over the course of 5 periods Earnings Per Share declined from 55.52 to 28.62, and its compound annual growth rate or its overall return, is -12% and Dividend Per Share increased from 13.5 to 20, and its compound annual growth rate or its overall return, is 8.1% WIPRO: Over the course of 5 periods Earnings Per Share increased from 14.17 to 33.36, and its compound annual growth rate or its overall return, is 18.67% and Dividend Per Share increased from 5 to 6, and its compound annual growth rate or its overall return, is 3.71%

HCL: Over the course of 5 periods Earnings Per Share declined from 19.74 to 15.57, and its compound annual growth rate or its overall return, is -4.63% and Dividend 50

Per Share declined from 16 to 4, and its compound annual growth rate or its overall return, is -24.12%

TECH MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 19.58 to 60.73, and its compound annual growth rate or its overall return, is 25.40% and Dividend Per Share declined from 8.8 to 3.5, and its compound annual growth rate or its overall return, is -16.83%

CHART- 4.3

51

TABLE - 4.9 METAL SECTOR TATA HINDAL STERLITE 52 JINDAL SESA GOA

STEEL YEAR EPS DPS 2006 63.35 13 2007 72.74 15.5 2008 63.85 16 2009 69.7 16 2010 56.37 8 CAGR 2.3%

CO EPS DPS 14.28 2.2 22.12 1.7 23.31 1.85 13.12 1.35 10.01 1.35 -

EPS 45.72 14.04 13.43 17.45 9.89 -

DPS 3.13 4 4 3.5 3.75

EPS 186.07 228.3 80.34 99.35 15.89 -

DPS 15 18 4 5.5 125 -

EPS 137.04 154.06 379.05 24.67 25.49 -

DPS 40 40 45 2.25 3.25 39.4%

9.2% 6.8%

9.3% 26.3% 3.6% 38.8%

39.1% 28.5%

From the above table it is found that: TATA STEEL: Over the course of 5 periods Earnings Per Share declined from 63.35 to 56.37, and its compound annual growth rate or its overall return, is -2.30% and Dividend Per Share declined from 13 to 8, and its compound annual growth rate or its overall return, is -9.25% HINDALCO: Over the course of 5 periods Earnings Per Share declined from 14.28 to 10.01, and its compound annual growth rate or its overall return, is -6.85% and Dividend Per Share declined from 2.2 to 1.35, and its compound annual growth rate or its overall return, is -9.30%

STERLITE: Over the course of 5 periods Earnings Per Share declined from 45.72 to 9.89, and its compound annual growth rate or its overall return, is -26.37% and Dividend Per Share declined from 3.13 to 3.75, and its compound annual growth rate or its overall return, is 3.68%

JINDAL: Over the course of 5 periods Earnings Per Share declined from 186.07 to 15.89, and its compound annual growth rate or its overall return, is -38.86% and Dividend Per Share declined from 15 to 1.25, and its compound annual growth rate or its overall return, is -39.16%

53

SESA GOA LTD: Over the course of 5 periods Earnings Per Share declined from 137.04 to 25.49, and its compound annual growth rate or its overall return, is -28.56% and Dividend Per Share declined from 40 tov3.25, and its compound annual growth rate or its overall return, is -39.47%

CHART- 4.4

54

TABLE - 4.10 AUTOMOBILE SECTOR TATA MAHINDRA BAJAJ 55 HERO MARTUTI

MOTORS YEAR 2006 2007 2008 2009 2010 CAGR EPS 39.94 49.48 52.63 19.48 39.26 -0.34% DPS 13 15 15 6 15 3%

& MAHINDRA EPS DPS 36.72 10 44.88 11.5 46.15 11.5 30.69 10 36.89 9.5 0.9% -1%

AUTO EPS 108.87 122.35 52.25 45.37 117.69 1.5% DPS 40 22 20 40 40 0%

HONDA MOTORS EPS DPS 48.64 20 42.96 17 48.47 19 64.19 20 111.77 110 18.1% 40.6%

SUZUKI EPS 41.16 54.07 59.91 42.18 86.45 16% DPS 3.5 4.5 5 3.5 6 11.3%

From the above table it is found that: TATA MOTORS: Over the course of 5 periods your Earnings Per Share declined from 39.94 to 36.26, and its compound annual growth rate or its overall return, is 0.09% and Dividend Per Share increased from 13 to 15, and its compound annual growth rate or its overall return, is 3% MAHINDRA & MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 36.72 to 36.89, and its compound annual growth rate or its overall return, is 0.09% and Dividend Per Share declined from 10 to 9.5, and its compound annual growth rate or its overall return, is 1% BAJAJ AUTO: Over the course of 5 periods Earnings Per Share increased from 108.87 to 117.69, and its compound annual growth rate or its overall return, is 1.5% and Dividend Per Share remains same from 40 to 40, and its compound annual growth rate or its overall return, is 0%

HERO HONDA MOTORS: Over the course of 5 periods Earnings Per Share increased from 48.64 to 111.77, and its compound annual growth rate or its overall return, is 18.10% and Dividend Per Share increased from 20 to 110, and its compound annual growth rate or its overall return, is 40.62%

56

MARTUTI SUZUKI: Over the course of 5 periods Earnings Per Share increased from 41.16 to 86.45, and its compound annual growth rate or its overall return, is 16% and Dividend Per Share increased from 3.5 to 6, and its compound annual growth rate or its overall return, is 11.38%

CHART- 4.5

57

TABLE - 4.11 FINANCIAL SECTOR

ICICI

HDFC LTD

HDFC BANK 58

SBI

AXIS BANK

YEAR 2006 2007 2008 2009 2010 CAGR

EPS 28.55 34.59 37.37 33.76 36.1 4.8%

PRICE 925 1349 1455.5 980 1279 6.69%

EPS 50.38 62.07 85.77 80.24 98.45 14.3%

PRICE 234 316.95 200.6 84.8 173.3 -5.8%

EPS 27.81 44.87 44.87 52.77 64.42 18.2%

PRICE 1150 1799.8 1825 1839 2539.9 16.79%

EPS 83.73 86.29 106.56 143.67 144.37 11.5%

PRICE 1617.4 2476 2574 2500 3515 16.79%

EPS 17.41 23.4 29.94 50.57 62.06 28.9%

PRICE 514.8 1025 1291.5 1064 1608.5 25.59%

From the above table it is found that: ICICI: Over the course of 5 periods Earnings Per Share increased from 28.55 to, 36.1 and its compound annual growth rate or its overall return, is 4.8% and share prices increased from 925 to 1279, and its compound annual growth rate or its overall return, is 6.69% HDFC LTD: Over the course of 5 periods Earnings Per Share increased from 50.38 to 98.45, and its compound annual growth rate or its overall return, is 14.33%. and share prices declined from 234 to 173.3, and its compound annual growth rate or its overall return, is -5.83%

HDFC BANK: Over the course of 5 periods Earnings Per Share increased from 27.81 to 64.42, and its compound annual growth rate or its overall return, is 18.29% and share prices increased from 1150 to 2539.9, and its compound annual growth rate or its overall return, is 16.79%

SBI: Over the course of 5 periods Earnings Per Share increased from 83 to 144.37, and its compound annual growth rate or its overall return, is 11.51% and share prices increased from 1617.4 to 3515, and its compound annual growth rate or its overall return, is 16.79%

59

AXIS BANK: Over the course of 5 periods Earnings Per Share increased from 17.41 to 62.06, and its compound annual growth rate or its overall return, is 28.94% and share prices increased from 514.8 to 1608.5, and its compound annual growth rate or its overall return, is 25.59%

CHART-6

60

TABLE - 4.12 ENERGY SECTOR

61

RELIANCES YEAR 2006 2007 2008 2009 2010 CAGR EPS 65.08 85.71 133.86 97.28 49.64 -5.2% PRICE 1315.95 2989 3298 2535 1149.9 -2.66%

ONGC EPS 101.2 73.14 78.09 75.4 78.39 PRICE 1513.9 1385.5 1356 1277.6 1472.6 -

NTPC EPS 7.06 8.33 8.99 9.95 10.59 8.4% PRICE 157.9 283.3 290.75 241.35 238.9 8.63%

TATA POWER EPS PRICE 30.85 622 35.21 1476.9 39.42 1649.8 41.65 1490 39.93 1517.7 5.2% 19.6%

GAIL(INDIA) EPS 27.32 28.22 30.76 22.1 24.75 1.9% PRICE 325.7 551.85 555.5 438.65 520.25 9.81%

4.97% 0.55% From the above table it is found that:

RELIANCES INDUSTRIES: Over the course of 5 periods Earnings Per Share declined from 65.08 to 49.64, and its compound annual growth rate or its overall return, is -5.27% and share prices declined from 1315.95 to 1149.9, and its compound annual growth rate or its overall return, is -2.66% ONGC: Over the course of 5 periods Earnings Per Share declined from 101.2 to 78.39, and its compound annual growth rate or its overall return, is -4.97% and share prices declined from 1513.9 to 1427.6, and its compound annual growth rate or its overall return, is -0.55%

NTPC: Over the course of 5 periods Earnings Per Share increased from 7.06 to 10.59, and its compound annual growth rate or its overall return, is 8.44% and share prices increased from 157.9 to 238.9, and its compound annual growth rate or its overall return, is 8.63%

TATA POWER: Over the course of 5 periods Earnings Per Share increased from 30.85 to 39.93, and its compound annual growth rate or its overall return, is 5.29% and 62

share prices increased from 622 to 1517.7, and its compound annual growth rate or its overall return, is 19.60%

GAIL (INDIA): Over the course of 5 periods Earnings Per Share declined from 27.32 to 24.75, and its compound annual growth rate or its overall return, is -1.95% and share prices increased from 325.7 to 520.25, and its compound annual growth rate or its overall return, is 9.81%

CHART-7

63

TABLE - 4.13 IT SECTOR INFOSYS TCS 64 WIPRO HCL TECH

MAHINDRA YEAR EPS PRICE EPS PRICE EPS PRICE EPS PRICE EPS PRICE 2006 87.86 3449 55.52 2092 14.17 670 19.74 725 19.58 1748.7 2007 66.23 2415 38.39 1388.9 19.48 691 16.6 714.8 5.38 2048 2008 78.15 2046.5 46.07 1077 20.96 535 11.72 334.45 26.84 1159.7 2009 101.58 2614 47.92 805 20.3 700 14.88 388 81.05 1148.7 2010 101.13 3454 28.62 1180 33.36 755.85 15.57 460.75 60.73 1158 CAGR 2.8% 0.02% -12% -11% 18.6% 2.44% -4% -8.6% 25.4% -7.9% From the above table it is found that:

INFOSYS: Over the course of 5 periods Earnings Per Share increased from 87.86 to 101.13, and its compound annual growth rate or its overall return, is 2.85% and share prices increased from 3449 to 3454, and its compound annual growth rate or its overall return, is 0.02%

TCS: Over the course of 5 periods Earnings Per Share declined from 55.52 to 28.62, and its compound annual growth rate or its overall return, is -12.41% and share prices declined from 2092 to 1180, and its compound annual growth rate or its overall return, is -10.90% WIPRO: Over the course of 5 periods Earnings Per Share increased from 14.17 to 33.36, and its compound annual growth rate or its overall return, is 18.67% and share prices increased from 670 to 755.85, and its compound annual growth rate or its overall return, is 2.44%

HCL: Over the course of 5 periods Earnings Per Share declined from 19.74 to 15.57, and its compound annual growth rate or its overall return, is -4.63% and share prices declined from 725 to 460.75, and its compound annual growth rate or its overall return, is -8.66%

65

TECH MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 19.58 to 60.73, and its compound annual growth rate or its overall return, is 25.40% and share prices declined from 1748.7 to 1158, and its compound annual growth rate or its overall return, is -7.91%

CHART-8

66

TABLE - 4.14 METAL SECTOR

67

TATA STEEL YEAR EPS PRICE 2006 63.35 745 2007 72.74 1048 2008 63.85 957 2009 69.7 627.9 2010 56.37 739 CAGR 2.3% 0.16%

HINDAL CO EPS PRICE 14.28 251.3 22.12 240 23.31 221.4 13.12 163 10.01 247.9 6.8% 0.27

STERLITE EPS PRICE 45.72 2939.8 14.04 1149.9 13.43 1082.4 17.45 904 9.89 928.9 26.3% 20.5%

JINDAL EPS PRICE 186.07 2290 228.3 6540 80.34 6785 99.35 3622 15.89 796.1 38.8% 19.4%

SESA GOA EPS PRICE 137.04 1615 154.06 3940 379.05 4400 24.67 439.7 25.49 495 28.5% 21%

From the above table it is found that:

TATA STEEL: Over the course of 5 periods Earnings Per Share declined from 63.35 to 56.37, and its compound annual growth rate or its overall return, is -2.30% and share prices declined from 745 to 739, and its compound annual growth rate or its overall return, is -0.16% HINDALCO: Over the course of 5 periods Earnings Per Share declined from 14.28 to 10.01, and its compound annual growth rate or its overall return, is -6.85% and share prices declined from 251.3 to 247.9, and its compound annual growth rate or its overall return, is -0.27% STERLITE: Over the course of 5 periods Earnings Per Share declined from 45.72 to 9.89, and its compound annual growth rate or its overall return, is -26.37% and share prices declined from 2939.8 to 928.9, and its compound annual growth rate or its overall return, is -20.50%

JINDAL: Over the course of 5 periods Earnings Per Share declined from 186.07 to 15.89, and its compound annual growth rate or its overall return, is -38.86% and share prices declined from 2290 to 796.1, and its compound annual growth rate or its overall return, is -19.40%

68

SESA GOA LTD: Over the course of 5 periods Earnings Per Share declined from 137.04 to 25.49, and its compound annual growth rate or its overall return, is -28.56% and share prices declined from 1615 to 495, and its compound annual growth rate or its overall return, is -21%

CHART-9

69

TABLE - 4.15 AUTOMOBILE SECTOR 70

TATA MOTORS YEAR 2006 2007 2008 2009 2010 CAGR EPS 39.94 49.48 52.63 19.48 39.26 -0.4% PRICE 997.8 988 824.1 799.6 1382 6.73%

MAHINDRA & MAHINDRA EPS PRICE

BAJAJ AUTO

HERO HONDA MOTORS

MARTUTI SUZUKI EPS PRICE

EPS 108.87 52.25 45.37 117.69 1.5%

PRICE 3325 898 1799.5 3070 -1.6%

EPS 48.64 42.96 48.47 64.19 111.77 18.1%

PRICE 940 807.2 898 1808.7 2094 17.37%

36.72 915 44.88 1001 46.15 874 30.69 1094 36.89 1199 0.9% 5.55%

41.16 990.7 54.07 1248 59.91 1055 42.18 1737.3 86.45 1586.7 16% 9.87%

122.35 3375.2

From the above table it is found that:

TATA MOTORS: Over the course of 5 periods your Earnings Per Share increased from 36.72 to 36.72, and its compound annual growth rate or its overall return, is 0.09% and share prices increased from 997.8 to 1382, and its compound annual growth rate or its overall return, is -6.73%

MAHINDRA & MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 36.72 to 36.89, and its compound annual growth rate or its overall return, is 0.09% and share prices increased from 915 to 1199, and its compound annual growth rate or its overall return, is 5.55%

BAJAJ AUTO: Over the course of 5 periods Earnings Per Share increased from 108.87 to 117.69, and its compound annual growth rate or its overall return, is 1.5% and 71

share prices declined from 3325 to 3070, and its compound annual growth rate or its overall return, is -1.58%

HERO HONDA MOTORS: Over the course of 5 periods Earnings Per Share increased from 48.64 to 111.77, and its compound annual growth rate or its overall return, is 18.10% and share prices increased from 940 to 2094, and its compound annual growth rate or its overall return, is 17.37%

MARTUTI SUZUKI: Over the course of 5 periods Earnings Per Share increased from 41.16 to 86.45, and its compound annual growth rate or its overall return, is 16% and share prices increased from 990.7 to 1586.7, and its compound annual growth rate or its overall return, is 9.87%

CHART-10

72

CHAPTER 5 FINDINGS AND CONCLUSION

73

FINANCIAL SECTOR HDFC BANK is having high positive correlation with Earnings Per Share. The calculated r (0.971) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.944, which indicates 94.4% of the variations of share price movements are due to Earnings Per Share and Dividend Per Share are having high positive correlation with share price movements. Here the calculated value of r is (0.919). The coefficient of determination r2 value is 0.844, which indicates 84.4% of the share price movements are due to the Dividend Per Share. ICICI is having high positive correlation with price earnings ratio. The calculated r (0.912) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0.832, which indicates 83.2% of the variations of share price movements are due to price earnings ratio. AXIS BANK having high growth in share prices increased from 514.8 to 1608.5, and its compound annual growth rate or its overall return, is 25.59% AXIS BANK has high compound annual growth rate of 28.94% of Earnings per share ICICI has high compound annual growth rate of 71.40% of Dividend Per Share

ENERGY SECTOR

74

RELIANCES INDUSTRIES is having high positive correlation with Earnings Per Share. The calculated r (0.893) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.798, which indicates 79.8% of the variations of share price movements are due to Earnings Per Share and Dividend Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.824). The coefficient of determination r2 value is 0.679, which indicates 67.9% of the share price movements are due to the earning. NTPC is having high positive correlation with price earnings ratio. The calculated r (0.998) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0.996, which indicates 99.6% of the variations of share price movements are due to price earnings ratio. GAIL (INDIA) having high share prices increased from 325.7 to 520.25, and its compound annual growth rate or its overall return, is 9.81% NTPC has high compound annual growth rate of 8.44% of Earnings per share TATA POWER has high compound annual growth rate of 7.14% of Dividend Per Share

IT SECTOR

75

HCL is having high positive correlation with price earnings ratio. The calculated r (0.911) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0.83, which indicates 83% of the variations of share price movements are due to price earnings ratio. Next to the price earnings ratio Earnings per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.87). The coefficient of determination r2 value is 0.758, which indicates 75.8% of the share price movements are due to the Earnings per Share. WIPRO having high growth in share prices increased from 670 to 755.85, and its compound annual growth rate or its overall return, is 2.44% , TECH MAHINDRA has high compound annual growth rate of 25.4% of Earnings per share TCS has high compound annual growth rate of 8.17% of Dividend Per Share

METAL SECTOR

76

STERLITE is having high positive correlation with Earnings Per Share. The calculated r (0.974) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.95, which indicates 95% of the variations of share price movements are due to Earnings Per Share. SESA GOA LTD having high positive correlation with Dividend Per Share. The calculated value of r is (0.858). The coefficient of determination r2 value is 0.736, which indicates 73.6% of the share price movements are due to the Dividend Per Share. TATA STEEL is having high positive correlation with Price Earnings Ratio. The calculated r (0.877) value shows that the Price Earnings Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.769, which indicates 76.9% of the variations of share price movements are due to Price Earnings Ratio. JINDAL STEEL has high negative compound annual growth rate of 38.86% of Earnings per share STERLITE INDUSTRIES has high compound annual growth rate of 3.6% of Dividend Per Share

AUTOMOBILE SECTOR

77

HERO HONDA MOTORS is having high positive correlation with Earnings Per Share. The calculated r (0.892) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.796, which indicates 79.6% of the variations of share price movements are due to Earnings Per Share BAJAJ AUTO is having high positive correlation with Dividend Per Share. The calculated r (0.968) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.938, which indicates 93.8% of the variations of share price movements are due to Dividend Per Share. MAHINDRA & MAHINDRA is having high positive correlation with Price Earnings Ratio. The calculated r (0.837) value shows that the Price Earnings Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.701, which indicates 70.1% of the variations of share price movements are due to Price Earnings Ratio. Next to the Price Earnings Ratio HERO HONDA MOTORS share prices increased from 940 to 2094, and its compound annual growth rate of its overall return, is 17.37% and Earnings per share of Hero Honda Motors has high compound annual growth rate of 18.10% and Dividend Per Share of Hero Honda Motors has high compound annual growth rate of 40.62%

CHAPTER 6 SUGGESTIONS

78

 From this study we found that stock price largely depends on EPS, so investors should considered EPS as an important factor for making investment decision Financial sector shares have delivered good EPS for last five years, investors may invest in this sector CAGR of EPS of Axis Bank is 28.9% which seems to be attractive for investment Mental sector is another attractive avenue for investment, investors may invest in Jindal steel and Sesa Goa, since CAGR of EPS are 38.8% and 28.5% respectively Other sectors are less attractive compared to these two sectors Even though EPS is an important factor determining the price movements of stock, there are several factors which affected the stock prices. Investors should consider those factors before making investment decision

CHAPTER 7 CONCLUSION

79

The following broad conclusions are drawn form the findings of this empirical work. The correlation techniques have revealed that earnings per share is the most determinant factor of market price of share out of the three variables taken for the study; the next is the Dividend Per Share followed by the Price Earning Ratio, Earnings Per Share. Surprisingly, the Earnings per share have proud to be the most determinant factor of share price. It has been found that dividend has a significant impact on the market price of shares in all the selected industries.

To conclude, out of the three variables taken for the study, that no single variable has significantly influenced the share prices of the selected industries. This study thus corroborates the views expressed by the empirical researchers in the past that none of the variables has any significant impact on the equity prices of all industry at all times.

Therefore study reveals that different variables assumed significance in different years depending upon the stock market conditions. Thus, broadly rejecting the hypothesis that the set of variables determining equity price behavior for both the groups would be significantly different from each other due to the different in the nature and motive of investment

Finally, the investors should keenly watch the situation like market price, economy, company progress, etc. and according to that they should take decisions whether to buy or sell securities. Hence, investing in shares especially the secondary market becomes a very rich experience.

REFERENCE

80

. BOOKS:
Kothari, C.R., Research Methodology: Methods and Techniques, New Age

International Publication, 2st Edition Reprint, 2009 New Delhi.

Saravanavel, R., Research Methodology, KITAB Mahal, 19th Edition, 2009,

Allahabad.
Richard I. Levin & David S.Rubin, STATISTICS FOR MANAGEMENT, Pearson Education, Seventh Edition, 2002.
Arora, P.N., Arora, S, Statistics for management, Sultan Chand &Sons, 1st

Edition Reprint, 2008, New Delhi.

WEBSITES: www. Nseindia.com www.Moneycontrol.com www.Moneypore.com www.Icicidirect.com

MAGAZINES: Capital Market Dalal Street

ANNEXURE FINANCIAL SECTOR 81

ICICI YEAR 2006 2007 2008 2009 2010 EPS 28.55 34.59 37.37 33.76 36.1 DPS 8.5 10 11 11 12 PRICE 925 1349 1455.5 980 1279

HDFC LTD YEAR 2006 2007 2008 2009 2010 EPS 50.38 62.07 85.77 80.24 98.45 DPS 20 22 25 30 36 PRICE 234 316.95 200.6 84.8 173.3

82

HDFC BANK YEAR 2006 2007 2008 2009 2010 EPS 27.81 44.87 44.87 52.77 64.42 DPS 5.5 7 8.5 10 12 PRICE 1150 1799.8 1825 1839 2539.9

SBI YEAR 2006 2007 2008 2009 2010 EPS 83.73 86.29 106.56 143.67 144.37 DPS 14 14 21.5 29 30 PRICE 1617.4 2476 2574 2500 3515

83

AXIS BANK YEAR 2006 2007 2008 2009 2010 EPS 17.41 23.4 29.94 50.57 62.06 DPS 19.5 8.5 6 10 12 PRICE 514.8 1025 1291.5 1064 1608.5

ENERGY SECTOR

84

RELIANCES YEAR 2006 2007 2008 2009 2010 EPS 65.08 85.71 133.86 97.28 49.64 DPS 10 11 13 13 7 PRICE 1315.95 2989 3298 2535 1149.9

ONGC YEAR 2006 2007 2008 2009 2010 EPS 101.2 73.14 78.09 75.4 78.39 DPS 45 32 32 32 33 PRICE 1513.9 1385.5 1356 1277.6 1472.6

85

NTPC YEAR 2006 2007 2008 2009 2010 EPS 7.06 8.33 8.99 9.95 10.59 DPS 2.8 3.2 3.5 3.6 3.8 PRICE 157.9 283.3 290.75 241.35 238.9

TATA POWER YEAR 2006 2007 2008 2009 2010 EPS 30.85 35.21 39.42 41.65 39.93 DPS 8.5 9.5 10.5 11.5 12 PRICE 622 1476.9 1649.8 1490 1517.7

86

GAIL(INDIA) YEAR 2006 2007 2008 2009 2010 EPS 27.32 28.22 30.76 22.1 24.75 DPS 10 10 10 7 7.5 PRICE 325.7 551.85 555.5 438.65 520.25

IT SECTOR INFOSYS YEAR 2006 2007 2008 2009 2010 EPS 87.86 66.23 78.15 101.58 101.13 87 DPS 45 11.5 33.25 23.5 25 PRICE 3449 2415 2046.5 2614 3454

TCS YEAR 2006 2007 2008 2009 2010 EPS 55.52 38.39 46.07 47.92 28.62 DPS 13.5 11.5 14 14 20 PRICE 2092 1388.9 1077 805 1180

WIPRO YEAR 2006 2007 2008 2009 2010 EPS 14.17 19.48 20.96 20.3 33.36 DPS 5 6 6 4 6 PRICE 670 691 535 700 755.85

88

HCL YEAR 2006 2007 2008 2009 2010 EPS 19.74 16.6 11.72 14.88 15.57 DPS 16 8 9 7 4 PRICE 725 714.8 334.45 388 460.75

TECH MAHINDRA YEAR 2006 2007 2008 2009 2010 EPS 19.58 5.38 26.84 81.05 60.73 DPS 8.8 2.3 5.5 4 3.5 PRICE 1748.7 2048 1159.7 1148.7 1158

89

METAL SECTOR TATA STEEL YEAR 2006 2007 2008 2009 2010 YEAR 2006 2007 2008 2009 2010 EPS 63.35 72.74 63.85 69.7 HINDAL CO 56.37 EPS 14.28 22.12 23.31 13.12 10.01 90 DPS 13 15.5 16 16 8 DPS 2.2 1.7 1.85 1.35 1.35 PRICE 745 1048 957 627.9 739 PRICE 251.3 240 221.4 163 247.9

STERLITE YEAR 2006 2007 2008 2009 2010 EPS 45.72 14.04 13.43 17.45 9.89 DPS 3.13 4 4 3.5 3.75 PRICE 2939.8 1149.9 1082.4 904 928.9

JINDAL YEAR 2006 2007 2008 2009 2010 EPS 186.07 228.3 80.34 99.35 15.89 DPS 15 18 4 5.5 125 PRICE 2290 6540 6785 3622 796.1

91

SESA GOA YEAR 2006 2007 2008 2009 2010 EPS 137.04 154.06 379.05 24.67 25.49 DPS 40 40 45 2.25 3.25 PRICE 1615 3940 4400 439.7 495

92

AUTOMOBILE SECTOR TATA MOTORS YEAR 2006 2007 2008 2009 2010 EPS 39.94 49.48 52.63 19.48 39.26 DPS 13 15 15 6 15 PRICE 997.8 988 824.1 799.6 1382

MAHINDRA &MAHINDRA YEAR 2006 2007 2008 2009 2010 EPS 36.72 44.88 46.15 30.69 36.89 DPS 10 11.5 11.5 10 9.5 PRICE 915 1001 874 1094 1199

93

BAJAJ AUTO YEAR 2006 2007 2008 2009 2010 EPS 108.87 122.35 52.25 45.37 117.69 DPS 40 22 20 40 40 PRICE 3325 3375.2 898 1799.5 3070

YEAR 2006 2007 2008 2009 2010

HERO HONDA MOTORS EPS DPS 48.64 20 42.96 17 48.47 19 64.19 20 111.77 110

PRICE 940 807.2 898 1808.7 2094

94

MARTUTI SUZUKI YEAR 2006 2007 2008 2009 2010 EPS 41.16 54.07 59.91 42.18 86.45 DPS 3.5 4.5 5 3.5 6 PRICE 990.7 1248 1055 1737.3 1586.7

95