Summer Training Project Report

ON

EQUITY RESEARCH
Submitted for the partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION (MBA) Under the supervision of Ms. Preeti Arrora (Branch Head) (Nirmal Bang Securities Ltd.)

Submitted by: Rakesh Kumar Shukla (03019103909)

Gitarattan International Business School (Affiliated by Guru Gobind Singh Indraprastha University) Rohini, New Delhi-110085

(2009-2011)

2010 EQUITY RESEARCH REPORT (INFRASTRUCTURE)

Created By:

Rakesh kumar shukla (GIBS) 2009-11

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SUMMER TRAINING PROJECT

ON

E Q U I T Y A N A LY S I S Infrastructure

SUBMITTED TO: SUBMITTED BY:

Firoj (Zonal Head) Nirmal Bang Securities

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Rakesh Kumar Shukla

CONTENTS
ACKNOWLEDGEMENT 5 EXECUTIVE SUMMERY 6 HISTORY 7 BREIF 11 CHAPTER1: 19 INTRODUCTION 20 RATIONALE 21 OBJECTIVES 22 RESEARCH 23 CHAPTER 2: TECHNICAL
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OF

THE

STOCK

BROKING

INDUSTRY

COMPANY

PROFILE

INTRODUCTION

METHODOLOGY

AND

DESIGN

ANALYSIS

OVERVIEW

24 CHAPTER 31 CHAPTER 41 ECONOMIC OVERVIEW CURRENT 43 INFRASTRUCTURE IN INDIA BUDGET 46 CHAPTER 47 DLF 48 J 54 GMR 61 FINDINGS 67 BIBLIOGRAPHY 68 & CONCLUSION INFRA ANALYSIS P ACCOSIATE ANALYSIS ANALYSIS 5: ANALYSIS 2010 44 IMPACT 42 SCENARIO 4: INFRASRUCTURE SECTOR 3: FUNDAMENTAL ANALYSIS OVERVIEW

ACKNOWLEDGEMENT
To acknowledge is very great way to show your gratitude towards the persons who have contributed in your success in one or other way. It is our personal belief that no report is the result of only its authors efforts. There are many people who contribute something or the other, and thus play significant role in laying the effective report that is capable of achieving its purpose. Therefore, we would like to take this opportunity to thanks all those people who helped me in preparation of this project, guiding me towards the achievement of its purpose. We find words inadequate to express my gratitude to BRANCH MANAGER, Ms. Preeti Arrora to providing us an opportunity to carry out our summer training as such a well reputed and leading stock broking company NIRMAL BANG Pvt. Ltd.

EXECUTIVE SUMMERY
We have undergone my summer training at NIRMAL BANG SECURITIES Ltd. Nirmal Bang is one of the reputed and leading company in India. Better known for its research, this company was established on 1986. During the training period we got the practical knowledge of derivatives market and Equity markets. We noted that the infrastructure companies are booming sectors in the market, the investment in the infrastructure companies are more and there are possibilities of this sectors price may rise more in the future, by watching this we have decided previously that we will select the infrastructure sector as our project. During the training session we had studied the price rise and decline in this sectors every day. It was a great excitement for us to sit in the dealing room and practically viewing the trades taking process of the infrastructure companies and other companies on TRADER TERMINAL. This project constitutes the details of Equity Analysis of infrastructure related companies listed in NSE and BSC .It also consists of the Fundamental analysis and technical analysis of these companies. We have done detail study and Research on these three main companies JP ASSOCIATES, DLF, GMR.

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges. This was followed by the formation of associations /exchanges in Ahmadabad (1894), Calcutta (1908), and Madras (1937). In order to check such aberrations and promote a more orderly development of the stock market, the central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of stock exchanges to seek government recognition. As of January 2002 there were 23 stock exchanges recognized by the central Government. They are located at Ahmadabad, Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai, (the Madras stock Exchanges), Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai (the National Stock Exchange or NSE), Mumbai (The Stock Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTCExchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock Exchange, accounting for the bulk of the business done on the Indian stock market.

BSE (BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking comm. Unity (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

NSE (NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments.

MCX (MULTI COMMODITY EXCHANGE)

MULTI COMMODITY EXCHANGE of India limited is a new order exchange with a mandate for setting up a nationwide, online multi-commodity market place, offering unlimited growth opportunities to commodities market participants. As a true neutral market, MCX has taken several initiatives for users in a new generation commodities futures market in the process, become the countrys premier exchange. MCX, an independent and a de-mutualized exchange since inception, is all set up to introduce a state of the art, online digital exchange for commodities futures trading in the country and has accordingly
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initiated several steps to translate this vision into reality.

NCDEX (NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE)

NCDEX started working on 15th December, 2003. This exchange provides facilities to their trading and clearing member at different 130 centers for contract. In commodity market the main participants are speculators, hedgers and arbitrageurs. Facilities Provided By NCDEX NCDEX has developed facility for checking of commodity and also provides a wear house facility By collaborating with industrial partners, industrial companies, news agencies, banks and developers of kiosk network NCDEX is able to provide current rates and contracts rate. To prepare guidelines related to special products of securitization NCDEX works with bank. To avail farmers from risk of fluctuation in prices NCDEX provides special services for agricultural. NCDEX is working with tax officer to make clear different types of sales and service taxes. NCDEX is providing attractive products like weather derivatives
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COMPANY PROFILE
Nirmal Bang- Founded in 1986 by Shri Nirmal Bang, the Nirmal Bang Group is recognized as one of the largest retail broking houses in India, providing an array of financial products and services. The Group is headed by Mr. Dilip Bang and Mr. Kishore Bang who bring forward industry expertise, insight and most importantly, create an environment of unmatched commitment to clients. We emphasize adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. Nirmal Bang offers a full suite of products and services to Corporate, Institutional and Individual clients. The range of services include: Capital Market Products Private Equity Corporate Advisory Services Stock Broking - Institutional & Retail Distribution of Financial Products Fund Management (Managing Clients' Assets-Pension/PF Fund Managers) Research Group We are registered members of the Bombay Stock Exchange Limited (BSE), National stock Exchange of India Limited (NSE), Multi Commodity Exchange of India Limited (MCX), National Commodity & Derivatives Exchange Limited (NCDEX), National Multi Commodity Exchange of India Limited (NMCE) and MCX Stock Exchange Limited and are also depository participants of NSDL and CDSL. We believe in to create valuable relationships and provide the best financial services most professionally.

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Areas Covered by Nirmal Bang in INDIA

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Services provided by Nirmal Bang

Prime Brokerage Services Equity
Equity Derivatives Indices Derivatives Commodity Derivatives

Depository Services
CDSL

Distribution Services
Mutual Fund Distribution IPO Distribution Insurance Product Distribution

Asset Management & Advisory Services

Portfolio Management Services Portfolio Advisory Services Structured Trading Products with Innovative Ideas/strategies

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Memberships/Affiliations
National Stock Exchange of India Ltd (NSE) The Stock Exchange, Mumbai (BSE) Futures & Option Segment of NSE & BSE SEBI Registered Portfolio Manager Multi Commodity Exchange (MCX) Depository Participants with CDSL Distributors of Mutual Funds (AMFI),Insurance & IPO's

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NIRMAL BANG consultant

As the flagship company of the NIRMAL BANG Group, NIRMAL BANG Private Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. NIRMAL BANG believes that they were best positioned to venture into that activity as a Depository Participant. They were one of the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services Limited). Today, It service over 1Lac customer accounts in this business spread across over 350 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence. It has transferred this business to NIRMAL BANG SECURITIES PRIVATE LIMITED (NBSPL), their associate and a member of NSE, BSE, MCX & NCDEX.

NIRMAL BANG --- Early Days

The birth of NIRMAL BANG was on a modest scale in 1986. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company. NIRMAL BANG Securities Private Limited. It started with consulting and financial accounting automation, and carved inroads. Since then, they have utilized their experience and superlative expertise to go from strength to strengthto better their services, to provide new ones, to innovate, diversify and in the process, evolved NIRMAL BANG as one of Indias premier integrated financial service enterprise.
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Thus over the last 20 years NIRMAL BANG has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And they have made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finally totality in service. Their highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for them the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. Their values and vision of attaining total competence in their servicing has served as the building block for creating a great financial enterprise, which stands solid on their fortresses of financial strength - their various companies. With the experience of years of holistic financial servicing behind them and years of complete expertise in the industry to look forward to, they have now emerged as a premier integrated financial services provider. And today, they can look with pride at the fruits of their mastery and experience comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements.

Business Focus:The focus of the business is the Customer Customer service, Customer education, Customer support, Customer relations and last but not the least Customer acquisition. Trade execution transparency, timely settlements, risk monitoring and superior service shall have topmost priority, in the best interests of all concerned.

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BOARD OF DIRECTORS NIRMAL BANG GROUP

NAME Mr. Dilip M. Bang Mr. Kishore M. Bang Mr.Rakesh Bhandari Mr. Deepak Agarwal Mr.Suvinay Sharma Mr.Naresh Samdani Mr. Deepak Patel Mr. Sunil Jain Mr.Anup Agarwal Mr.Brijmohan Bohra Miss. Monika Bafna Mr.Brijmohan Bohra POSITION Director Director Chartered Accountant Chartered Accountant Chartered Accountant Chartered Accountant Chartered Accountant Chartered Accountant Chartered Accountant Chartered Accountant Chartered Accountant Chartered Accountant

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Principal Activities Of NIRMAL BANG GROUP

NIRMAL BANG Securities Private Limited

Member: National Stock Exchange of India Limited Member: Bombay Stock Exchange Limited Participant: National Securities Depository Limited Participant: Central Depository Service (India) Limited

NIRMAL BANG Commodities Private Limited

Member - Multi Commodity Exchange of India Limited Member - National Commodities and Derivatives Exchange Ltd.
BANG Equity Broking Private Limited

Member - Bombay Stock Exchange Ltd Nadi Finance & Investment Private Limited RBI registered Non Banking Finance Company

Publications of NIRMAL BANG

NIRMAL BANG- Beyond Market

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CHAPTER- 1 INTRODUCTION

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1.1 INTRODUCTION
Investing, like marriage, isn't something that should be entered into lightly. Investing in equities gives high returns but they correspondingly have higher risk also. Before we invest in a company, there are more than a few things we need to know about it.

Securities Analysis
An analysis of securities and the organization and operation of their markets. The determination of the risk reward structure of equity and debt securities and their valuation. Special emphasis on common stocks. Other topics include options, mutual fluids and technical analysis. Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action which take into account price of instruments, volume of trading and, where applicable, open interest in the instruments. Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. Main differences between the two types of analysis:

Fundamental analysis
Focuses on what ought to happen in a market Factors involved in price analysis: 1. Supply and demand 2.Seasonal cycles 3.Weather 4. Government policy

Technical analysis
Focuses on what actually happens in a market Charts are based on market involving: 1.Price 2.Volume 3. Open interest (futures only) action

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1.2 RATIONALE FOR THE STUDY

In an industry plagued with skepticism and a stock market increasingly difficult to predict and contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and Short Term Investor. The price of a security represents a consensus. It is the price at which one person agrees to buy and another agrees to sell. The price at which an investor is willing to buy or sell depends primarily on his expectations. If he expects the security's price to rise, he will buy it; if the investor expects the price to fall, he will sell it. These simple statements are the cause of a major challenge in forecasting security prices, because they refer to human expectations. As we all know firsthand, humans expectations are neither easily quantifiable nor predictable. If prices are based on investor expectations, then knowing what a security should sell for (i.e., fundamental analysis) becomes less important than knowing what other investors expect it to sell for. That's not to say that knowing what a security should sell for isn't important--it is. But there is usually a fairly strong consensus of a stock's future earnings that the average investor cannot disprove Fundamental analysis and technical analysis can co-exist in peace and complement each other. Since all the investors in the stock market want to make the maximum profits possible, they just cannot afford to ignore either fundamental or technical analysis.

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1.3 OBJECTIVES OF THE STUDY

Primary Objective:
To do equity analysis of chosen securities.

Sub-Objectives:
a) To justify the current investment in the chosen securities. b) To understand the movement and performance of stocks. c) To recommend increase/decrease of investment in a particular security.

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1.4 RESEARCH METHODOLOGY & DESIGN

TYPE OF STUDY
The research has been based on secondary data analysis. The study has been exploratory as it aims at examining the secondary data for analyzing the previous researches that have been done in the area of technical and fundamental analysis of stocks. The knowledge thus gained from this preliminary study forms the basis for the further detailed Descriptive research. In the exploratory study, the various technical indicators that are important for analyzing stock were actually identified and important ones short listed.

SAMPLE DESIGN
The sample of the stocks for the purpose of collecting secondary data has been selected on the basis of Random Sampling. The stocks are chosen in an unbiased manner and each stock is chosen independent of the other stocks chosen. The stocks are chosen from the Infrastructer Sector.

SAMPLE SIZE
The sample size for the number of stocks is taken as 3 for technical analysis and fundamental analysis of stocks as fundamental analysis is very exhaustive and requires detailed study.

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CHAPTER- 2 TECHNICAL ANALYSIS A CONCEPTUAL OVERVIEW

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TECHNICAL ANALYSIS
Technical analysis can be conditionally divided into some main parts such as:

Types of charts Graphical methods Analytical methods

Technical analysis is concerned with predicting future price trends from historical price and volume data. The underlying axiom of technical analysis is that all fundamentals (including expectations) are factored into the market and are reflected in exchange rates. A technical analysis is based on three axioms:

Movement of the market considers everything Movement of prices is purposeful History repeats itself

SUPPORT AND RESISTANCE

Support is a level at which bulls (i.e., buyers) take control over the prices and prevent them from falling lower.

Resistance, on the other hand, is the point at which sellers (bears) take control of prices and prevent them from rising higher. The price at which a trade takes place is the price at which a bull and bear agree to do business. It represents the consensus of their expectations.

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Support levels indicate the price where the most of investors believe that prices will move higher. Resistance levels indicate the price at which the most of investors feel prices will move lower.

Role Reversal
When a resistance level is successfully broken through, that level becomes a support level. Similarly, when a support level is successfully broken through, that level becomes a resistance level.

DOW THEORY TRENDS:

The ideas of Charles Dow, the first editor of the Wall Street Journal, form the basis of technical analysis. The Dow theory is a method of interpreting and signaling changes in the stock market direction based on the monitoring of the Dow Jones Industrial and Transportation Averages. Dow created the Industrial Average, of top blue chip stocks, and a second average of top railroad stocks (now the Transport Average). He believed that the behavior
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of the averages reflected the hopes and fears of the entire market. The behavior patterns that he observed apply to markets throughout the world.

Three Movements
Markets fluctuate in more than one time frame at the same time: Nothing is more certain than that the market has three well defined movements which fit into each other.

The first is the daily variation due to local causes and the balance of buying and selling at that particular time. The secondary movement covers a period ranging from ten days to sixty days, averaging probably between thirty and forty days. The third move is the great swing covering from four to six years.

Bull markets are broad upward movements of the market that may last several years, interrupted by secondary reactions. Bear markets are long declines interrupted by secondary rallies. These movements are referred to as the primary trend. Secondary movements normally retrace from one third to two thirds of the primary trend since the previous secondary movement. Daily fluctuations are important for short-term trading, but are unimportant in analysis of broad market movements.

Various cycles have subsequently been identified within these broad categories.

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Primary Movements have Three Phases

The general conditions in the market: Bull markets

Bull markets commence with reviving confidence as business conditions improve. Prices rise as the market responds to improved earnings Rampant speculation dominates the market and price advances are based on hopes and expectations rather than actual results.

Bear markets

Bear markets start with abandonment of the hopes and expectations that sustained inflated prices. Prices decline in response to disappointing earnings. Distress selling follows as speculators attempt to close out their positions and securities are sold without regard to their true value.

Trends
Bull Trends A bull trend is identified by a series of rallies where each rally exceeds the highest point of the previous rally. The decline, between rallies, ends above the lowest point of the previous decline.

Successive higher highs and higher lows.

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The start of an up trend is signaled when price makes a higher low (trough), followed by a rally above the previous high (peak): Start = higher Low + break above previous High. The end is signaled by a lower high (peak), followed by a decline below the previous low (trough): End = lower High + break below previous Low.

A bear trend starts at the end of a bull trend: when a rally ends with a lower peak and then retreats below the previous low. The end of a bear trend is identical to the start of a bull trend.

MOVING AVERAGES
Moving averages are one of the oldest and most popular technical analysis tools. A moving average is the average price of a financial instrument over a given time. The moving average represents the consensus of investors expectations over the indicated period of time.

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The classic interpretation of a moving average is to use it in observing changes in prices. Investors typically buy when the price of an instrument rises above its moving average and sell when it falls below its moving average.

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CHAPTER- 3 FUNDAMENTAL ANALYSIS A CONCEPTUAL OVERVIEW

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Fundamental analysis refers to the study of the core underlying elements that influence the economy of a particular entity. It is a method of study that attempts to predict price action and market trends by analyzing economic indicators, government policy and societal factors (to name just a few elements) within a business cycle framework.

I. ECONOMIC ANALYSIS:
POLITICO-ECONOMIC ANALYSIS: No industry or company can exist in isolation. It may have splendid managers and a tremendous product. However, its sales and its costs are affected by factors, some of which are beyond its control - the world economy, price inflation, taxes and a host of others. It is important, therefore, to have an appreciation of the politico-economic factors that affect an industry and a company.

II. INDUSTRY ANALYSIS

The importance of industry analysis is now dawning on the Indian investor as never before. 1. BARRIER TO ENTRY New entrants increase the capacity in an industry and the inflow of funds. The question that arises is how easy is it to enter an industry? There are some barriers to entry: a) Economies of scale b) Product differentiation c) Capital requirement d) Government policy
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2. THE THREAT OF SUBSTITUTION New inventions are always taking place and new and better products replace existing ones. An industry that can be replaced by substitutes or is threatened by substitutes is normally an industry one must be careful of investing in. An industry where this occurs constantly is the packaging industry -bottles replaced by cans, cans replaced by plastic bottles, and the like. To ward off the threat of substitution, companies often have to spend large sums of money in advertising and promotion. 3. BARGAINING POWER OF THE BUYERS In an industry where buyers have control, i.e. in a buyer's market, buyers are constantly forcing prices down, demanding better services or higher quality and this often erodes profitability. 4. BARGAINING POWER FOR THE SUPPLIERS An industry unduly controlled by its suppliers is also under threat. 5. RIVALRY AMONG COMPETITORS Rivalry among competitors can cause an industry great harm. This occurs mainly by price cuts, heavy advertising, additional high cost services or offers, and the like.

III. COMPANY ANALYSIS:

At the final stage of fundamental analysis, the investor analyzes the company. This analysis has two thrusts: How has the company performed vis--vis other similar companies and How has the company performed in comparison to earlier years
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It is imperative that one completes the politico economic analysis and the industry analysis before a company is analyzed because the company's performance at a period of time is to an extent a reflection of the economy, the political situation and the industry. What does one look at when analyzing a company? The different issues regarding a company that should be examined are: The Management The Company The Annual Report, Ratios

THE MANAGEMENT:
The single most important factor one should consider when investing in a company and one often never considered is its management. In India management can be broadly divided in two types: Family Management Professional Management

THE COMPANY:
An aspect not necessarily examined during an analysis of fundamentals is the company. A company may have made losses consecutively for two years or more and one may not wish to touch its shares - yet it may be a good company and worth purchasing into. There are several factors one should look at.

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1. How a company is perceived by its competitors? One of the key factors to ascertain is how a company is perceived by its competitors. It is held in high regard. Its management may be known for its maturity, vision, competence and aggressiveness. The investor must ascertain the reason and then determine whether the reason will continue into the foreseeable future. 2. Whether the company is the market leader in its products or in its segment Another aspect that should be ascertained is whether the company is the market leader in its products or in its segment. When you invest in market leaders, the risk is less. The shares of market leaders do not fall as quickly as those of other companies. There is a magic to their name that would make individuals prefer to buy their products as opposed to others.

3. Company Policies The policy a company follows is also important. What is their plan for growth? What is its vision? Every company has a life. If it is allowed to live a normal life it will grow upto a point and then begin to level out and eventually die. It is at the point of leveling out that it must be given new life. This can give it renewed vigour and a new lease of life.

THE ANNUAL REPORT:

The primary and most important source of information about a company is its Annual Report. By law, this is prepared every year and distributed to the
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shareholders. Annual Reports are usually very well presented. A tremendous amount of data is given about the performance of a company over a period of time. The Annual Report is broken down into the following specific parts: A) The Director's Report, B) The Auditor's Report, C) The Financial Statements, and D) The Schedules and Notes to the Accounts. A. The Directors Report The Directors Report is a report submitted by the directors of a company to its shareholders, advising them of the performance of the company under their stewardship. 1. It enunciates the opinion of the directors on the state of the economy and the political situation vis--vis the company. 2. Explains the performance and the financial results of the company in the period under review. This is an extremely important part. The results and operations of the various separate divisions are usually detailed and investors can determine the reasons for their good or bad performance. 3. The Directors Report details the company's plans for modernization, expansion and diversification. Without these, a company will remain static and eventually decline. 4. Discusses the profit earned in the period under review and the dividend. Recommended by the directors. This paragraph should normally be read with some skepticism, as the directors will always argue that the performance was satisfactory. If adverse economic conditions are usually at fault.

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5. Elaborates on the directors' views of the company's prospects in the future. 6. Discusses plans for new acquisition and investments. An investor must intelligently evaluate the issues raised in a Directors Report. Industry conditions and the management's knowledge of the business must be considered. B. The Auditor's Report The auditor represents the shareholders and it is his duty to report to the shareholders and the general public on the stewardship of the company by its directors. Auditors are required to report whether the financial statements presented do, in fact, present a true and fair view of the state of the company. Investors must remember that the auditors are their representatives and that they are required by law to point out if the financial statements are not true and fair.. C. Financial Statements The published financial statements of a company in an Annual Report consist of its Balance Sheet as at the end of the accounting period detailing the financing condition of the company at that date, and the Profit and Loss Account or Income Statement summarizing the activities of the company for the accounting period.

BALANCE SHEET
The Balance Sheet details the financial position of a company on a particular date; of the company's assets (that which the company owns), and liabilities (that which the company owes), grouped logically under specific heads. It must however, be noted that the Balance Sheet details the financial position
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on a particular day and that the position can be materially different on the next day or the day after. Sources of funds Shareholders Funds Share Capital (i) Private Placement (ii) Public Issue (iii) Rights issues RESERVES i) Capital Reserves ii) Revenue Reserves LOAN FUNDS i) Secured loans: ii) Unsecured loans Fixed Assets INVESTMENTS STOCK OR INVENTORIES i) Raw materials ii) Work in progress iii) Finished goods CASH AND BANK BALANCES LOANS AND ADVANCES

PROFIT AND LOSS ACCOUNT

The Profit and Loss account summarizes the activities of a company during an accounting period which may be a month, a quarter, six months, a year or longer, and the result achieved by the company. It details the income earned
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by the company, its cost and the resulting profit or loss. It is, in effect, the performance appraisal not only of the company but also of its managementits competence, foresight and ability to lead.

RATIOS:
Ratios express mathematically the relationship between performance figures and/or assets/liabilities in a form that can be easily understood and interpreted. No single ratio tells the complete story Ratios can be broken down into four broad categories: (A) Profit and Loss Ratios These show the relationship between two items or groups of items in a profit and loss account or income statement. The more common of these ratios are: (B) Balance Sheet Ratios These deal with the relationship in the balance sheet such as : 1. Current assets to current liabilities. 2. Liabilities to net worth. (C) Balance Sheet and Profit and Loss Account Ratios. These relate an item on the balance sheet to another in the profit and loss account such as: 1. Earnings to shareholder's funds. 2. Net income to assets employed.

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(D) Financial Statements and Market Ratios These are normally known as market ratios and are arrived at by relative financial figures to market prices: 1. Market value to earnings and 2. Book value to market value. (a) Market value (b) Earnings (c) Profitability The major ratios that are considered: (i) Market value (ii) Price- earnings ratio (iii) Market-to-book ratio (iv) Earnings (v) Earning per share (vi) Dividend per share

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CHAPTER- 4

Overview
INFRASRTUCTURE SECTOR

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ECONOMIC OVERVIEW
Indian Economy is among one of the fastest growing economy in the World. It has registered a robust growth rate in past few years. But weakening of U.S. Economy has an impact on Indian Economy too. Indian economy has registered a GDP growth rate of 7.9 % in 2008-09 but it slipped down to 7.5 % in the year 2009-10 which points out the negative growth prospects for the industrial sector and the return expected from investment in shares Action taken to fight against the slowdown of the Economy, Government of India took many fiscal as well as monetary actions. Clubbed with fiscal & monetary actions, decreasing commodity prices, decreasing crude prices and lowering interest rate, we expect that Indian Economy could again register a decent growth rate in the year 2010-11. In a globally uncertain economic environment, MR. PRANAB MUKHERJEE has sought to address the immediate objective of economic growth by committing significant investments to infrastructure and putting more money in the consumers' hands. The target is to move to a 9% growth at the earliest. Finance Minister faced challenges of managing deficit and supporting growth in current budget. We feel he was able to balance both these aspects by increasing excise duty by 2%, resulting in reducing fiscal deficit from 6.9% to 5.5%, and increasing planned expenditure by 18.4% as compared to 14.9% in the previous budget. The increase in excise duty by 2% will have negative impact on sectors like cement, metal & FMCG as they may not be able to pass on the cost. However, the impact will be neutral for sectors like Pharma & Auto, which can pass the increased cost. In fact various auto companies have already announced increase in prices. Aggressive increase in slab for Personal Income tax will improve the purchasing power of individuals and will help bring black money back into the system. Increased purchasing power will act positive for sectors like Auto, Retail, Entertainment, Real Estate & FMCG companies. The banking license to more players will act positive for strong NBFCs like Reliance Capital, Bajaj Auto Finance, Mahindra & Mahindra Finance, L&T Finance, IFCI etc. But the approval and implementation of this policy will be major issue as RBI does not favor this policy. FM has
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increased the base for collection of Service Tax by bringing services like Air Ticket, Rail Freight, Port Services etc, into the service tax net. The diesel and petrol prices are increased by Rs.2.58 and Rs.2.67 respectively, which will have direct impact on transportation of materials and will have negative impact on overall economy. Overall FM has balanced the budget well and will find acceptance from the equity market.

CURRENT SCENARIO
The Government has, till date, provided three fiscal stimulus packages to restrict the impact of the global downturn on India. The total amount of stimulus, according to the FM, has been to the tune of Rs.1.86trn or about 3.5% of FY10 GDP. Of these, significant amounts have been dedicated for overall infrastructure development. With private investment yet to pick up to the desired extent, the short term requirement is for the public investments to be sustained and increased. The FM has continued with the focus on investments and the plan expenditure has been increased by 15% for the current fiscal. IIFCL (India Infrastructure Finance Company Ltd) will now refinance 60% of the loans provided by commercial banks for PPP projects in critical sectors over the next fifteen to eighteen months. With this, IIFCL and banks will now be in a position to support projects involving total investment of Rs.1trn. Allocation for the National Highway Development Programme (NHDP) has been increased by 23% over FY10BE. The allocation for railways has been increased from Rs.108bn in interim budget for FY10 to Rs.158bn. Allocation under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has been increased by 87% to Rs.129bn as compared to FY10BE. Allocation for housing and provision of basic amenities to urban poor has also been enhanced to Rs.40bn. Allocations under Accelerated Power Development and Reform Programme (APDRP) have been increased by 160% to Rs.20bn as compared to FY10BE. A blueprint will be developed for long distance gas pipelines leading to a National Gas Grid to facilitate transportation of gas across the length and breadth of the country.

44

INFRASTRUCTURE IN INDIA
Infrastructure in India include transportation, agriculture, water management, telecommunications, industrial and commercial development, power, petroleum and natural gas, housing and other segments such as mining, disaster management services, technology-related infrastructure. Important sectors of Infrastructure in India: Within the Infrastructure of India, the transportation sector is the most important, including the aviation, ports, roads, rail system and logistics. The agriculture sector comprises infrastructure-related storage facilities, construction relating to agro-processing projects and reservation and storage of perishable goods. Among others essential sectors, real-estate development, including industrial parks, special economic zones, tourism and entertainment centers, educational institutions and hospitals and solid waste management systems, also play significant role in Indian economy. Finance for Infrastructure in India: The rules for government-owned infrastructure companies for raising funds through initial share offerings are made flexible by the Securities and Exchange Board of India, which naturally will increase the flow of investment in the Infrastructure of India. To bridge the wide gap between the potential demand for infrastructure for high growth and the available supply, there is urgent need for a close partnership between the public and private sectors, with a vital role reserved for foreign capital. In India infrastructure sector itself is becoming an attractive investment area for FDIs. To encourage foreign funds flow into the Infrastructure in India, the Indian Finance Ministry has allowed Foreign Institutional Investors(FIIs) also to invest in unlisted companies. FIIs now can invest 100 per cent of their funds in the Infrastructure in India. In order to make the core sector more attractive for FDI, the Cabinet Committee on Foreign Investment (CCFI) has modified the 49 percent cap on foreign equity in the infrastructure sector to make fund mobilization easier. This major policy decision which will indirectly raise the foreign equity investment in infrastructure sector to well over 51 per cent. Besides, even if allocation in the Infrastructure in India is raised with a greater inflow of FDI and a large participation of private sector, the immediate problem will still remain, since, infrastructure is subjected to long
45

gestation period. Consequently, the inadequacy of Infrastructure in India will continue for quite some time, unless technology upgradation can be done in the infrastructure production, including construction activities, for reducing the gestation lags and simultaneously improving the quality of products. With this infrastructure limitation any indiscriminate growth may lead the economy of the country to a situation of over-heating and a further rise in inflation.

Under the Infrastructure in India the most essential field in which there should be development is in the urban infrastructure. Except for a few large projects in a handful of cities, paucity of urban infrastructure projects is a standing problem. Although city mass transport systems and airports have found place in developmental plans, essential services such as roads, drinking water, sewerage management, drainage, and primary health are still greatly under developed. However, with the economy growing at more than at the rate of 8 per cent, the government is aiming at an economic growth rate of 8 per cent during the Eleventh Plan (200812), for which the government is taking necessary steps to develop the Infrastructure in India.

46

Budget Impact on Sector: Infrastructure / Construction

Budget proposal Sector Impact Budget proposal Increased allocation of Rs.1,73,552 crs for infrastructure development in the country, which accounts for over 46 per cent of the total Plan allocations. Raise in allocation of road transport by over 13 per cent from Rs.17,520 crs to Rs.19,894 crs Deduction of an additional amount of Rs.20,000 for investment in long term infrastructure bonds over and above the existing limit of Rs.1 lakh on tax savings. Thrust on increasing disbursement by IIFCL 2 % increase in excise duty on cement on steel Monorail Projects for urban transport to achieve project import status at a concessional basic duty of 5% Allocation for urban development increased by more than 75 per cent from Rs.3,060 crs to Rs.5,400 crs in 201011. Company Impacted Sector Impact Positive as the infrastructure companies will have more opportunities Positive for companies executing road projects Positive as this will encourage more investment for infra companies Positive as financing for infra companies will be easier This was in line with expectations Positive as duty cost will come down Positive for Infra companies present in urban development Company Impacted Positive for most infra companies including HCC, Patel Eng, NCC, Simplex, L&T

Positive for IRB Infra, L&T, IVRCL, NCC, GMR Infra, Patel Eng Positive for L&T, GMR Infra, GVK Power, IRB Infra

Positive for companies such as L&T, Gammon India, GMR Infra, IVRCL, IRB Infra Neutral for all major infra companies Positive for L&T

Positive for NCC, L&T, Simplex, Unity Infra, Patel Eng, HCC

47

CHAPTER- 5 INFRASRTUCTURE SECTOR ANALYSIS

48

3
.

Brief Company Profile : DLF BUILDING INDIA

Going back to over six decades, the birth and history of the DLF Limited came to known. Late Chaudhury Raghvendra Singh founded it as Raisina Cold Storage and Ice Company Private Limited and Delhi Land and Finance Private Limited in 1946 and later on K P Singh promoted the DLF Limited. The company was incorporated in the year 1963 as American Universal Electric (India) Limited. The DLF group is a leading real estate developer in India. The group has over 224 million sq. ft. of existing development and 748 million sq. ft. of planned projects. DLF is the company, which committed to quality, trust and customer sensitivity, and deliver on promises wit...

49

DLF developed some of the first residential colonies in Delhi such as Krishna Nagar in East Delhi, which was completed in 1949. Since then we have been responsible for the development of many of Delhis other well known urban colonies, including South Extension, Greater Kailash, Kailash Colony and Hauz Khas. Following the passage of the Delhi Development Act in 1957, the state assumed control of real estate development activities in Delhi, which resulted in restrictions on private real estate colony development. We therefore commenced acquiring land at relatively low cost outside the area controlled by the Delhi Development Authority, particularly in the district of Gurgaon in the adjacent state of Haryana. This led to our first landmark real estate development project DLF Qutab Enclave, which has now evolved into DLF City. DLF City is spread over 3,000 acres in Gurgaon and is an integrated township, which includes residential, commercial and retail properties in a modern city infrastructure with schools, hospitals, hotels and shopping malls. It also boasts of the prestigious DLF Golf and Country Club with night golfing facilities
Incorporation Year Chairman Managing Director Company Secretary Auditor Face Value Market Lot Telephone Fax Registered Office 1963 K P Singh T C Goyal Subhash C Setia Walker Chandiok & Co 2 1 91-124-4334200 91-124-2355581 Shopping Mall 3rd Floor Arjun Marg Phase-I DLF City Gurgaon Haryana 122002

50

RESEARCH REPORT

51

P/E RATIO
Attribute PE ratio EPS (Rs) Sales (Rs crore) Face Value (Rs) Net profit margin (%) Last dividend (%) Return on average equity Value Date 43.16 24/07/09 9.12 Mar, 09 55.53 Mar, 09 2 42.49 Mar, 08 100 04/06/08 22.84 Mar, 08

01-APR-2008 to 31-MAR-2009 (Annual)

Description
Net Sales/Income from Operations Other Operating Income Increase/Decrease in Stock in trade and work in progress Consumption of Raw Materials Purchase of traded goods Employees Cost Depreciation Other Expenditure Total Expenditure Profit from Operations before Other Income, Interest & Exceptional Items Other Income Profit before Interest & Exceptional Items Interest Profit after Interest but before Exceptional Items Exceptional items Profit(+)/Loss(-) from Ordinary Activities before tax Tax Expense Net Profit(+)/Loss(-) from Ordinary Activities after tax Extraordinary Items Net Profit (+) / Loss (-) for the period Dividend (%) Face Value (in Rs.) Paid-up Equity Share Capital Reserves excluding Revaluation Reserves Basic EPS before Extraordinary items (in Rs.) Diluted EPS before Extraordinary items (in Rs.) Basic EPS after Extraordinary items (in Rs.)

Amount(Rs. lakhs)
5553.00 -9276.00 3461.00 2614.00 6115.00 2914.00 2639.00 24548.00 27187.00 22574.00 4613.00 4613.00 1627.00 2986.00 2986.00 2.00 33944.00 .18 .18 .18

in

52

Diluted EPS after Extraordinary items (in Rs.) Public Shareholding (Number of Shares) Public Shareholding (%) Promoter & Promoter group Number of Shares Pledged / Encumbered Promoter & Promoter group Shares Pledged / Encumbered (as a % of total shareholding of Promoter and Promoter Group) Promoter & Promoter group Shares Pledged / Encumbered (as a % total share capital of the company) Promoter & Promoter group Number of Shares Nonencumbered Promoter & Promoter group Shares Non-encumbered (as a % of total shareholding of Promoter and Promoter Group) Promoter & Promoter group Shares Non-encumbered (as a % total share capital of the company)

.18 194410993.00 11.45 0.00 1502803120.00 100.00 88.55

Capital structure OF DLF

From Year
2008 2007 2006 2005 2004 2003

To Year
2009 2008 2007 2006 2005 2004

Class Of Share
Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share

Authorize d Capital
214.75 214.75 214.75 39.5 4.5 4.5

Issued Capital
214.75 214.75 214.75 37.88 3.62 3.62

Paid Up Shares (No)

1704832680 1704832680 1529421080 37767997 3508007 3508007

Paid Up Face Value

2 2 2 10 10 10

Paid Up Capital
214.75 214.75 214.75 37.77 3.51 3.51

2002

2003

4.5

3.62

3508007

10

3.51

2001

2002

4.5

3.62

3508007

10

3.51

53

Cash flow DLF

Mar ' 05 Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09

Net Profit Before Tax

96.88

347.90

620.33

3117.92

1808.77

Net Cash From Operating Activities

550.64

-64.36

-2626.83

-1505.81

1365.86

Net Cash (used in)/from Investing Activities

-579.89

-2146.23

-628.34

-6482.00

-1151.17

Net Cash (used in)/from Financing Activities

23.94

2251.52

3233.37

8945.90

-437.54

Net (decrease)/increase In Cash and Cash Equivalents

-5.31

40.93

-21.80

958.09

-222.85

Opening Cash & Cash Equivalents

10.43

5.11

46.05

24.16

982.25

Net Profit Before Tax

96.88

347.90

620.33

3117.92

1808.77

54

Brief Company Profile : J P ASSOCIATE

Registered Office

Sector 128, Noida - 201304, UP. Email: jal.investor@jalindia.co.in Website: www.jilindia.com Chairperson and CEO: M. Gaur Vice Chairperson: S. K. Jain Executive Vice Chairperson: S. K. Sharma Directors: G. K. Arora, J. Gaur, R. N. Bhardwaj, S. C. Bhargava, B. K. Goswami, E. R. C. Shekar, B. K. Taparia, S. C. Gupta, M. S. Srivastava, P. Gaur, S. Gaur, S. D. Nailwal, R. K. Singh, R. Singh, A. K. Sahoo, B. Samal, J. Subbaiah Cement, engineering and construction Jaiprakash Associates Ltd (JAL) is a part of the Jaypee Group, which was founded in 1958 by Jaiprakash Gaur. In 2000, the group merged the Jaypee Rewa Cement Plant and Jaypee Bela Cement Plant to form Jaypee Cement Ltd. In 2003, JAL was formed by the merger of Jaiprakash Industries Ltd and Jaypee Cement Ltd. JAL has five divisions - cement, engineering & construction, energy, real estate & expressways, and hospitality. The company manufactures OPC & PPC cement and markets its product under two brands; Buland and Buniyad. In FY07, revenue from cement stood at nearly 50% of the total, growing by almost 48% y-o-y. Total cement production for the year stood at 6.6 MMT. During FY07, the engineering and construction division - which focuses on developing river valley and hydro-electric projects - contributed around 44% to revenues and completed five hydropower projects contributing over 4,000 MW hydropower to the National Grid. The remaining share of revenue came from asbestos sheets, hospitality,
55

Management Details

Business Operation Background

Business Profile

power, and other segments. In 2007, the company entered into a JV with SAIL to set up a 2.2 MMTPA capacity slag-based cement plant. During 2007, the company applied for petroleum exploration license to foray into oil and gas exploration. In Mar 2007, the company entered into a productionsharing contract with the GoI for the South Rewa oil block, which it secured through a consortium. In Aug 2007, the company entered into steel manufacture by taking over the erstwhile Malvika Steel Ltd. Company Secretary Bankers
H. K. Vaid Alhd Bank, AB, AEFB, Axis Bank, BoB, Bank of Bhutan, Bol, BoM, Canara, CBI, Corporation Bank, Export Import Bank of India, HDFC, Indian Bank, Indian Overseas Bank, Industrial Bank Limited, Industrial Bank Limited, Karur Vysya Bank, Karnataka Bank, Kotak Mahindra Bank, Oriental Bank of Commerce, Punjab National Bank, Punjab & Sind Bank, Refidian Bank, Iraq, Royal Bank of Scotland, Standard Chartered Bank, State Bank of India, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Sikkim, State Bank of Travancore, State Bank of Bikaner & Jaipur, Syndicate Bank, The Jammu & Kashmir Bank Limited, UCO Bank, Union Bank of India, United Bank of India, Yes Bank Limited M. P. Singh & Associates

Auditors

56

RESEARCH REPORT

57

P/E RATIO
Attribute
PE ratio EPS (Rs) Sales (Rs crore) Face Value (Rs) Net profit margin (%) Last dividend (%) Return on average equity

Value Date
31.88 27/07/09 7.54 Mar, 09 2,116.86 Jun, 09 2 14.35 Mar, 08 20 08/06/09 15.66 Mar, 08

58

01-APR-2008 to 31-MAR-2009 (Annual)

Description
Net Sales/Income from Operations Other Operating Income Increase/Decrease in Stock in trade and work in progress Consumption of Raw Materials Purchase of traded goods Employees Cost Depreciation Other Expenditure Total Expenditure Profit from Operations before Other Income, Interest & Exceptional Items Other Income Profit before Interest & Exceptional Items Interest Profit after Interest but before Exceptional Items Exceptional items Profit(+)/Loss(-) from Ordinary Activities before tax Tax Expense Net Profit(+)/Loss(-) from Ordinary Activities after tax Extraordinary Items Net Profit (+) / Loss (-) for the period Minority Interest Shares of Associates Other Related Items Consolidated Net Profit (+) / Loss (-) for the period Dividend (%) Face Value (in Rs.) Paid-up Equity Share Capital Reserves excluding Revaluation Reserves Basic EPS before Extraordinary items (in Rs.) Diluted EPS before Extraordinary items (in Rs.) Basic EPS after Extraordinary items (in Rs.) Diluted EPS after Extraordinary items (in Rs.) Public Shareholding (Number of Shares) Public Shareholding (%) Promoter & Promoter group Number of Shares Pledged / Encumbered Promoter & Promoter group Shares Pledged / Encumbered (as a % of total shareholding of Promoter and Promoter Group) Promoter & Promoter group Shares Pledged / Encumbered (as a % total share capital of the company) Promoter & Promoter group Number of Shares Nonencumbered Promoter & Promoter group Shares Non-encumbered (as a % of total shareholding of Promoter and Promoter Group) Promoter & Promoter group Shares Non-encumbered (as a % total share capital of the company)

Amount(Rs. lakhs)
477079.00 19069.00 -10178.00 201831.00 28435.00 33260.00 78211.00 331559.00 164589.00 599.00 165188.00 70617.00 94571.00 94571.00 43314.00 51257.00 51257.00 9232.00 42025.00 2.00 28036.00 584984.00 3.03 2.82 3.03 2.82 673712797.00 48.06 24420000.00 3.35 1.74 703678767.00 96.65 50.20

in

59

Capital structure OF JP ASSOCIATES

From Year To Year Class of Share Authorized Capital Issued Capital Paid Up Shares (No) Paid Up Face Value Paid Up Capital

2007

2008

Equity Share Equity Share Equity Share Equity Share Equity Share Equity Share

1,030.00

234.30

1171522417

234.30

2006

2007

1,030.00

219.24

219239654

10

219.24

2005

2006

1,030.00

215.06

215057749

10

215.06

2004

2005

980.00

176.22

176216981

10

176.22

2003

2004

980.00

176.22

176216981

10

176.22

2002

2003

980.00

176.22

176216981

10

176.22

60

Cash flow JP ASSOCIATES

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Profit before tax

843.35

619.91

764.56

328.75

267.48

Net cashflow-operating activity

1,007.69

808.05

295.70

179.21

509.09

Net cash used in investing activity

-4,225.27 -2,108.39 -238.12

-614.15

-565.66

Net cash used in fin. activity

3,603.21

1,060.35

879.75

939.34

55.02

Net inc/dec in cash and equivalent

385.63

-239.99

937.33

504.40

-1.53

Cash and equivalent begin of year

1,429.81

1,669.80

732.47

222.83

224.36

Cash and equivalent end of year

1,815.44

1,429.81

1,669.80

727.23

222.83

61

Brief Company Profile: GMR INFRASRUCTURE

Management Details

Group Chairman:

G.M.Rao (GMRVF,MAG,corporate R I

tiCt relations) Business Chairperson: Kiran kumar G.(Airport) Srinivas bommidala(Highways & urban infra) B.V.N.Rao(energy & agriculture) G.B.S.Raju(corporate & intemational) GMR Group established in June 1978. GMR Industries listed in 1992 & GMR Infrastructure listed in 2006 in both BSE* & NSE* The Group was engaged in Banking, Insurance, Breweries & IT, which were divested off. GMR Group has shifted focus to Infrastructure & Agri. Business and expanding rapidly The GMR Group is one of the leading and fastest growing private sector organisations of India with interests in Infrastructure and Agri-business. Founded in 1978, the Group is well diversified and professionally managed. The core businesses of the Group are in the sectors of Infrastructure comprising of Airports, Energy, Highways and Urban Infrastructure in addition to the manufacturing sector, spanning the Agri-business like sugar and Ferro alloys. The Group is also actively engaged in the areas of Education, Health and Community Services through its Foundation, reaffirming its grass root presence as a change agent of society, in the field of Corporate Social Responsibility. Dedicated divsions, the GMR Varalakshmi Foundation, manned by committed professionals oversee and manage these projects across the country. With its recent foray into the Airport sector, the Group has established itself as a front runner and pioneer in the core infrastructure areas of the country, comparable to some of the best in the world like

62

 The Groups specific projects are detailed here: Energy:

Thermal Hydro Gas Coal Mine development

Highways & Urban infra Highways SEZ Property Construction Raxa (Security) Aviation Airports: Delhi International Airport Hyderabad International Airport

International Business
Sabiha Gokcen International Airport Stake in InterGen N.V.

63

RESEARCH REPORT

64

P/E RATIO
Attribute PE ratio EPS (Rs) Sales (Rs crore) Face Value (Rs) Net profit margin (%) Return on average equity
01-APR-2008 to 31-MAR-2009 (Annual)

Value Date 274.11 27/07/09 0.54 Mar, 09 25.59 Mar, 09 2 60.21 Mar, 08 1.11 Mar, 08

Description
Net Sales/Income from Operations Other Operating Income Increase/Decrease in Stock in trade and work in progress Consumption of Raw Materials Purchase of traded goods Employees Cost Depreciation Other Expenditure Total Expenditure Profit from Operations before Other Income, Interest Exceptional Items Other Income Profit before Interest & Exceptional Items Interest Profit after Interest but before Exceptional Items Exceptional items Profit(+)/Loss(-) from Ordinary Activities before tax Tax Expense Net Profit(+)/Loss(-) from Ordinary Activities after tax Extraordinary Items Net Profit (+) / Loss (-) for the period Dividend (%) Face Value (in Rs.) Paid-up Equity Share Capital Reserves excluding Revaluation Reserves Basic EPS before Extraordinary items (in Rs.) Diluted EPS before Extraordinary items (in Rs.) Basic EPS after Extraordinary items (in Rs.) Diluted EPS after Extraordinary items (in Rs.) Public Shareholding (Number of Shares)

&

Amount(Rs. lakhs) 15920.00 1012.00 11.00 2701.00 3724.00 12196.00 582.00 12778.00 2379.00 10399.00 10399.00 632.00 9767.00 9767.00 2.00 36413.00 533809.00 .54 .54 .54 .54 456814301.00

in

65

Public Shareholding (%) Promoter & Promoter group Number of Shares Pledged / Encumbered Promoter & Promoter group Shares Pledged / Encumbered (as a % of total shareholding of Promoter and Promoter Group) Promoter & Promoter group Shares Pledged / Encumbered (as a % total share capital of the company) Promoter & Promoter group Number of Shares Non-encumbered Promoter & Promoter group Shares Non-encumbered (as a % of total shareholding of Promoter and Promoter Group) Promoter & Promoter group Shares Non-encumbered (as a % total share capital of the company)

25.09 258657887.00 18.97 14.21 1105185900.00 81.03 60.70

66

Capital structure OF GMR

From Year 2007 To Year 2008 Class Of Share Equity Share Equity Share Equity Share Authorized Capital 750.00 Issued Capital 364.13 Paid Up Shares (No) 1820658088 Paid Up Face Value 2 Paid Up Capital 364.13

2006

2007

400.00

331.08

331084000

10

331.08

2005

2006

400.00

264.44

264436814

10

264.44

Cash flow GMR

Mar ' 08 Profit before tax Net cash flow-operating activity Net cash used in investing activity Net cash used in fin. activity Net inc/dec in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year 65.54 -56.55 -4,250.19 4,095.78 -210.97 319.12 108.15 Mar ' 07 5.27 -7.29 -822.87 1,146.99 316.83 2.29 319.12 Mar ' 06 35.51 0.08 -67.32 -43.95 -111.19 113.48 2.29 Mar ' 05 24.23 77.58 -12.53 26.00 91.04 22.43 113.48

67

Findings & Conclusion

Stock DLF JP associate GMR Infra Target Price (Rs) 345 Recommendation BUY HOLD HOLD

Current scenario suggests, markets are on a bullish run, especially in case of Infrastructure Industry. Analysis suggests that all the chosen stocks ie DLF, JP associate and GMR Infra are going to perform well, with huge potential of earnings for equity holders.

Stock DLF JP associate GMR Infra

P/E ratio 43.16 31.88 274.11

BIBLIOGRAPHY
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Websites Referred: www.dlf.com www.gmr.org www.jaypee.com www.reuters.com www.bseindia.com www.nseindia.com www.nirmalbang.com www.moneycontrol.com http://finance.yahoo.com www.indiaearnings.moneycontrol.com

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THANK YOU

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