Securities and Portfolio MGT

COMPANY PROFILE
GITANJALI GEMS:- Gitanjali Group is one of the largest branded jewellery retailers in the
world. It is headquartered in Mumbai, India Gitanjali sells its jewellery through over 4000 Points
of Sale and enjoys a market share of over 50 per cent of the overall organised jewellery market in
India. Prominent brands housed by the group are Nakshatra, D'damas, Gili, Asmi, Sangini,
Maya, Giantti, World of Solitaire, Shuddhi, Diya to name a few.
Gitanjali is engaged in the cutting and polishing diamonds as well as in jewellery manufacturing,
branding and retailing. It exports its cut and polished diamonds, as well as its diamond and other
jewellery products to various international markets such as the USA, Middle East, Japan, China,
Hong Kong, Thailand and to markets in Europe such as Antwerp and Italy. The group remains a
dominant player in the diamond and jewellery segments. It has also recently forayed into the
retail and lifestyle space. The company has been listed on Bombay Stock Exchange with script
code 532715, National Stock Exchange of India script name Gitanjali. It has also recently
entered the ecommerce market through a marketplace Jewelsouk and an exclusive online
store Gitanjali Gifts and Xebec is their agency of choice.
Dr. Reddy's Laboratories:- Dr. Reddy's Laboratories Ltd, is a pharmaceutical company based in
Hyderabad, Telangana, India. The company was founded by Anji Reddy, who previously worked
in the mentor institute, Indian Drugs and Pharmaceuticals Limited, of Hyderabad, India.
Dr. Reddy's began as a supplier to Indian drug manufacturers, but it soon started exporting to
other less-regulated markets that had the advantage of not having to spend time and money on
a manufacturing plant that would gain approval from a drug licensing body such as the U.S.
Food and Drug Administration (FDA). By the early 1990s, the expanded scale and profitability
from these unregulated markets enabled the company to begin focusing on getting approval from
drug regulators for their formulations and bulk drug manufacturing plants in more-developed
economies. This allowed their movement into regulated markets such as the US andEurope. In
2014, Dr. Reddy Laboratories was listed among 1200 of India's most trusted brands according to
the Brand Trust Report2014, a study conducted by Trust Research Advisory, a brand analytics
company.
Dr. Reddy's manufactures and markets a wide range of pharmaceuticals in India and overseas.
The company has over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug
manufacture, diagnostic kits, critical care, and biotechnology products. Dr. Reddy's originally
launched in 1984 producing active pharmaceutical ingredients. In 1986, Reddy's started
operations on branded formulations. Within a year Reddy's had launched Norilet, the company's
first recognized brand in India. Soon, Dr. Reddy's obtained another success with Omez, its
branded omeprazole ulcer and reflux oesophagitis medication launched at half the price of
other brands on the Indian market at that time.
Within a year, Reddy's became the first Indian company to export the active ingredients for
pharmaceuticals to Europe. In 1987, Reddy's started to transform itself from a supplier of
pharmaceutical ingredients to other manufacturers into a manufacturer of pharmaceutical
products.
RELIANCE INDUSTRIES LIMITED:- Reliance Industries Limited (RIL) is

an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. The
company operates in five major segments: exploration and production, refining and
marketing, petrochemicals, retail and telecommunication. The group is present in many business
sectors across India including petrochemicals, construction, communications, energy, health care,
science and technology, natural resources, retail, textiles, and logistics. RIL is the secondlargest publicly traded company in India by market capitalisation[4] and is the second largest
company in India by revenue after the state-run Indian Oil Corporation.[5]The company is ranked
No. 99 on the Fortune Global 500 list of the world's biggest corporations, as of 2013.[6] RIL
contributes approximately 14% of India's total export.
The company's equity shares are listed on the National Stock Exchange of India Limited (NSE)
and the BSE Limited. The Global Depository Receipts (GDRs) issued by the Company are listed
on Luxembourg Stock Exchange. It has issued approx. 56 million GDRs wherein each GDR is
equivalent to 2 equity shares of the company. Approx. 3.46% of its total shares are listed on
Luxembourg Stock Exchange. Its debt securities are listed at the Wholesale Debt Market (WDM)
Segment
of
the
National
Stock
Exchange
of
India
Limited
(NSE)
Credit Ratings: It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary)
and Fitch. Moodys and S&P have provided investment grade ratings for international debt of the
Company, as Baa2 positive outlook (local currency issuer rating) and BBB+ outlook
respectively.
PART- A
;
FINANCIAL PERFORMANCE
GITANJALI GEMS:-
(a) Cash Flow Statement
Cash Flow
------------------- in Rs. Cr. ------------------Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
12 mths
12 mths
12 mths
12 mths
12 mths
-23.95
264.79
258.74
228.97
149.36
-2007.80
1015.80
-481.55
317.17
84.11
192.82
-588.64
29.86
-68.88
-61.49
1394.70
-266.96
581.49
-122.19
-125.12
Net (decrease)/increase In Cash and Cash

-420.28
Equivalents
160.20
129.86
126.09
-104.01
Opening Cash & Cash Equivalents
550.77
390.57
260.71
134.62
238.63
Closing Cash & Cash Equivalents
130.49
550.77
390.57
260.71
134.62
Net Profit Before Tax

Net Cash From Operating Activities
Net
Cash
Investing Activities
(used
in)/from
Net Cash (used in)/from Financing Activities
Source:-moneycontrol.com
INTERPRETATION:-
The cash flow statement shows that the net profit before tax was highest in year 2013.
At the same time it was lowest in year 2014 .

The net cash from the operating activities is very much fluctuating over the years. It was
highest in year 2013 and lowest in year in 2014.

The statement shows that net cash from investing activities is negative in three years
that means the firm is not enough contribute in investing activities. But it has highest in
2014 which is 192.82

The net cash used from financing activities is maximum in the year 2014 and 2012 .At
the same time it is negative in rest of years. Thus, Company contributed fewer amounts
in financing activities.
The cash and cash equivalents of the firm decreased in the year 2010 and 2014, which
shows the low liquidity position of the firm in these years. The cash and cash
equivalents of the firm increased in the year 2011 to 2013 showing the high liquidity
position of the firm.

The opening cash and cash equivalents are minimum in the year 2011 and maximum in
the year 2014. The Closing cash and cash equivalents maximum in the year 2013 and
minimum in the year 2014
(b) FINANCIAL RATIOS
------------------- in Rs. Cr. -------------------
Mar
'14
Mar '13
Mar '12
Mar '11
Mar '10
Operating Profit Per Share (Rs)
87.11
113.81
88.63
63.59
57.51
Bonus in Equity Capital
33.19
33.19
33.53
36.00
36.26
6.27
12.01
13.09
10.37
9.25
Current Ratio
0.81
0.95
1.01
0.94
1.04
Debt Equity Ratio
2.12
1.39
1.28
1.24
1.19
Investment Valuation Ratios
Profitability Ratios
Return On Capital Employed(%)
Liquidity And Solvency Ratios
Management Efficiency Ratios

Debtors Turnover Ratio
1.49
2.61
2.66
2.59
2.18
Inventory Turnover Ratio
7.22
6.97
5.72
4.64
4.25
Dividend Payout Ratio Net Profit
-96.39 5.53
6.52
8.33
9.85
Earning Retention Ratio
188.10 94.50
93.45
91.26
90.20
Cash Flow Indicator Ratios
INTERPRETATION:(a)Operating profit per share:- The operating profit per share is consectively increased from
2010 to 2013,but in 2014 ,there is fall in value and came to 87.11 ,but still co. has good operating
profit per share.
(b)Bonus in equity shares:- Bonus in equity shares ratio indicate issuance of bonus shares to
equity shareholder. This ratio was highest in 2010 and it was decreased 2012 and continues with
proceeding years with slighter change.
(c ) Return on capital employed:- The return on capital employed indicates the relationship
between profits and capital employed. Higher the ratio, better the company`s return. This ratio
was highest in 2012 and lowest in 2014.
(d) Current Ratio:- It is generally believed that 2:1 ratio shows a comfortable working capital
position. The tendon committee appointed by RBI had wide recommended a current ratio of
2:1.Co. was not able to maintain this ratio in any of year.
(e)Debt-Equity Ratio:- This ratio indicates the relationship between the outsider funds and
shareholders. This ratio was highest in year 2014 and lowest in year 2010.
(f)Debtors Turnover Ratio:- Debtor turnover ratio indicates the velocity of debt collection of
firm. This ratio was highest in year 2012 and lowest in year 2014.
(g)Inventory Turnover Ratio:- Inventory turnover is a measure of the company's ability to flip
its products for cash. This ratio of company is increasing year by year from 2010 to 2014.
(h)Dividend
Payout Ratio (Net Profit):- This ratio indicate percentage of earnings paid to
shareholders in dividends. This ratio was highest in year 2010 and lowest in year 2014.
(i) Earrings Retention Ratio:- Earrings Retention Ratio indicates the percentage of
a company's earnings that are not paid out in dividends but credited to retained earnings. This
ratio was highest in Year 2014 and lowest in year 2010.which is opposite of dividend payout
ratio.
(c ) PROFIT & LOSS APPROPRIATION:2014
PARTICULARS
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
2013
2012
2011
2010
489.19
405.89
354.02
230.07
395.00
414.19
-19.19
4.76
0.00
-23.95
0.00
-23.95
-1.29
-22.65
362.86
0.00
0.00
0.00
508.41
238.74
269.67
4.88
0.00
264.79
0.00
264.79
-0.37
265.16
435.98
0.00
28.06
4.70
450.14
187.93
262.21
3.47
0.00
258.74
0.00
258.74
0.40
258.34
358.51
0.00
27.34
4.44
354.39
122.08
232.31
3.36
0.00
228.95
0.00
228.95
4.36
224.60
213.58
0.00
25.46
4.13
230.24
76.96
153.28
3.94
0.00
149.34
-0.22
149.12
7.05
142.09
129.62
0.00
16.85
2.86
920.65
-2.46
0.00
920.65
28.80
30.00
911.22
28.35
30.00
848.72
26.46
30.00
842.70
16.86
20.00
396.3
2
Book Value (Rs)
305.63
304.58
277.84
264.43
INTERPRETATION:- The operating profit of company is increasing from 2010 to 2013, but in
year 2013 ,there is minor decrease. The company was showing good amount of reported net
profits from year 2010 to 2013 but in year 2014 there is loss in company. The company was also
providing equity dividend from year 2010 to 2013,which is a benefit for equity shareholders .
Company had goos figure of EPS from 2010 to 2013 but there is negative in 2014.So to invest in
securities of company investor has to fully assess its present scenario.
Dr. Reddys Laboratories:- (a) Cash Flow Statement
241.60
Cash Flow
------------------- in Rs. Cr. ------------------Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
12 mths
12 mths
12 mths
12 mths
12 mths
2454.40
1753.20
1259.20
1051.90
1084.80
905.50
288.80
1403.00
246.30
1253.20
-880.80
-518.90
-423.50
-613.00
-1111.10
28.20
151.80
-194.90
61.00
-152.20

59.50
Equivalents
-83.90
784.60
-305.70
-10.10
56.10
140.00
64.40
371.90
378.10
115.60
56.10
849.00
66.20
368.00

Net
Cash
(used
in)/from
INTERPRETATION:-
The cash flow statement shows that the net profit before tax is good over the five years
it was highest in year 2014. It was lowest in year .

The net cash from the operating activities continuously decreased from the 2010 to 2011,
but it further increased in 2012 as 1403 crore which shows the sound position of the
firm. The firm has generated sufficient cash flows to maintain operating capability of
enterprise over five years. But again it was 905.50 crore in 2014
The statement shows that net cash from investing activities is negative in almost all
years that means the firm is not enough contribute in investing activities.
The net cash used from financing activities is maximum in the year 2013 and lowest in
year 2012.
The cash and cash equivalents of the firm decreased in the year 2010, 2011 and 2013,
which shows the low liquidity position of the firm in these years. The cash and cash
equivalents of the firm increased in the year 2012 and 2014 showing the high liquidity
position of the firm.

------------------- in Rs. Cr. -------------------
Mar
'14
Mar '13
Mar '12
Mar '11
Mar '10
191.10 160.12
146.49
89.00
85.82
65.64
65.80
65.87
66.03
66.19
23.10
24.32
24.88
18.86
21.10
Current Ratio
1.59
1.48
1.48
1.13
1.46
Debt Equity Ratio
0.53
0.50
0.65
0.59
0.39
5.52
5.48
5.05
4.69
5.69
4.11
4.16
4.57
5.13
5.37
18.24
19.52
20.82
30.59
63.04
81.76
81.15
79.94
68.74
72.39
INTERPRETATION:(a)Operating profit per share:- The operating profit per share is consecutively increased from
2010 to 2014 and that too with good figure.
equity shareholder. This ratio was highest in 2010 which is 66.19 and it was lowest in 2014
which is 65.64 .
2:1.Co. was not able to maintain this ratio in any of year, but it was highest in 2014 which is
1.59:1
shareholders. This ratio was highest in year 2012 and lowest in year 2010.
(g)Inventory Turnover Ratio:- Inventory turnover is a measure of the company's ability to
flip its products for cash. This ratio was highest in year 2010 and lowest in year 2011.
(h)Dividend
ratio was highest in Year 2014 and lowest in year 2011.which is opposite of dividend payout
ratio.
(C ) PROFIT& LOSS APPROPRIATION:-
PARTICULARS
Operating Profit
2014
2013
2012
2011
2011
2,761.7
0
1,985.70
1,861.70
1,219.50
1,088.50
2,913.2
0
2,127.40
1,669.80
1,336.50
1,342.50
78.30
61.40
69.20
9.90
16.00
PBDT
2,834.9
0
2,066.00
1,600.60
1,326.60
1,326.50
Depreciation
PBDIT
Interest
380.50
312.80
301.10
247.90
222.40
Other Written Off
0.00
0.00
40.30
26.80
19.30
Profit Before Tax
2,454.4
0
1,753.20
1,259.20
1,051.90
1,084.80
0.00
0.00
-0.30
-0.40
-0.10
2,454.4
0
1,753.20
1,258.90
1,051.50
1,084.70
Tax
521.60
487.70
346.80
158.50
238.70
1,265.50
912.40
893.40
846.10
3,777.00
2,806.50
2,298.50
1,825.00
Reported Net Profit

Preference Dividend
1,932.8
0
4,325.3
0
0.00
0.00
0.00
0.00
0.00
306.20
254.80
233.10
190.40
190.00
52.00
43.30
37.80
115.20
31.60
1,701.0
9
1,698.36
1,695.60
1,692.53
1,688.45
113.62
74.51
53.81
52.78
50.11
Equity Dividend (%)
360.00
300.00
275.00
225.00
225.00
Book Value (Rs)
548.41
458.29
396.19
Equity Dividend
355.69
INTERPRETATION:- The operating profit of company is highest in year 2014 and lowest in
year 2011 as compared to other years but company has good amount of operating profits in all
five years.. The company was showing good amount of reported net profits from year 2010 to
2014.The reported net profits are increasing from 2010 to 2014. The company was also
providing a good amount of equity dividend from year 2010 to 2014,which is a positive point for
prospective equity shareholders . Company has good figure of EPS over the five years. The
securities of this company can be beneficial for equity shareholders. So to invest in securities of
company investor has to fully assess its present scenario.
350.30
RELIANCE INDUSTRIES LIMITED:Cash Flow
(a) Cash Flow Statement
------------------- in Rs. Cr. ------------------Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
12 mths
12 mths
12 mths
12 mths
12 mths
27818.00
26284.00
25750.00
25242.24
20547.44
42160.00
32995.00
26974.00
33280.52
20490.22
-64013.00
-14797.00
-3046.00
-20332.88
-18204.50
5530.00
-8249.00
-11465.00
724.57
-10999.60

-16323.00
Equivalents
9949.00
12463.00
13672.21
-8713.88
49547.00
39598.00
27135.00
13462.65
22176.53

33224.00
49547.00
39598.00
27134.86
13462.65

Net
Cash
(used
in)/from
INTERPRETATION:-
The cash flow statement shows that the net profit before tax is very good over the five
years it was highest in year 2014. At the same time it was lowest in year 2010.
The net cash from the operating activities continuously is also good over five years and
have slighter change among all years,which shows the sound position of the firm. The
firm has generated sufficient cash flows to maintain operating capability of enterprise
over five years.

The statement shows that net cash from investing activities is negative in almost all five
years that means the firm is not enough contribute in investing activities.
The net cash used in financing activities is maximum in the year 2010,2012 and 2013.
The cash and cash equivalents of the firm is very much sound over five years which
shows the high liquidity position of the firm in these years.
Reliance Industries
------------------- in Rs. Cr. -------------------
Mar
'14
Mar '13
Mar '12
Mar '11
Mar '10
118.38 112.54
116.89
127.49
101.59
71.71
71.81
65.16
65.11
65.18
Operating Profit Margin(%)
8.00
8.32
9.62
14.31
14.87
9.80
10.93
11.22
11.30
10.75
Current Ratio
0.98
1.25
1.30
1.23
1.14
Debt Equity Ratio
0.67
0.49
0.49
0.52
0.49
7.76
7.27
7.68
6.90
6.73
45.35
29.75
21.97
20.62
27.25

14.52
14.72
14.91
14.36
9.92
85.51
85.28
83.96
85.15
83.54
INTERPRETATION:(a)Operating profit per share:- The operating profit per share was highest in 2011 which was
127.49 and lowest in 2010 which was 101.59
equity shareholder. This ratio was highest in 2013 which is 71.81 and it was lowest in 2011
which is 65.11 .
2:1.Co. was not able to maintain this ratio in any of year, but it was highest in 2012 which is
1.30:1
shareholders. This ratio was highest in year 2014 and lowest in year 2010,2012 and 2013.
(g)Inventory Turnover Ratio:- Inventory turnover is a measure of the company's ability to flip
its products for cash. This ratio was highest in year 2014 and lowest in year 2010.
(h)Dividend
ratio was highest in Year 2012 and lowest in year 2010.
(C ) PROFIT & LOSS APPROPRIATION:Source:-moneycontrol.com
2014
Operating Profit
PBDIT
30,877.0
0
39,813.0
0
2013
2012
2011
2010
30,787.00
33,831.00
37,832.71
29,969.07
38,785.00
39,812.00
41,191.32
33,057.12
Interest
3,206.00
3,036.00
2,668.00
2,328.30
1,999.95
PBDT
36,607.0
0
35,749.00
37,144.00
38,863.02
31,057.17
Depreciation
8,789.00
9,465.00
11,394.00
13,607.58
10,496.53
Other Written Off
0.00
0.00
0.00
0.00
0.00
Profit Before Tax
27,818.0
0
26,284.00
25,750.00
25,255.44
20,560.64
0.00
0.00
0.00
0.00
0.00
27,818.0
0
26,284.00
25,750.00
25,255.44
20,560.64
Tax
5,834.00
5,281.00
5,710.00
4,969.14
4,324.97
21,003.00
20,040.00
20,286.30
16,235.67
22,399.00
17,236.00
15,470.19
12,381.68
0.00
0.00
0.00
0.00
0.00
2,793.00
2,628.00
2,531.00
2,384.99
2,084.67
475.00
447.00
410.00
386.90
346.24
32,319.0
2
32,286.63
32,710.59
32,733.74
32,703.74
68.02
65.05
61.26
61.97
49.64
Equity Dividend (%)
95.00
90.00
85.00
80.00
70.00
609.78
557.49
498.21
446.25
392.51
Reported Net Profit

Preference Dividend
Equity Dividend
21,984.0
0
24,545.0
0

Book Value (Rs)
INTERPRETATION:- The operating profit of company is highest in year 2014 and lowest in
year 2010 as compared to other years but company had too good amount of operating profits in
all five years. The operating profits of RIL are higher than Gitanjali gems and Dr. Reddy
laboratories. The company was showing very good amount of reported net profits from year
2010 to 2014. The company was also providing a good amount of equity dividend from year
2010 to 2014, which is a positive point for prospective equity shareholders . Company has good
figure of EPS over the five years. The securities of this company can be beneficial for equity
shareholders As company is providing very good amount of equity dividends.
FUTURE PROSPECTS
NEWS:-
(a) Gitanjali Gems

Date :- 24/3/2015
Industry representatives have once again pushed for a relaxation in the 80:20 rule on gold
imports. Pankaj Parekh, vice-chairman, GJEPC says: For exporters there was not much of a
problem under 80:20 also accepting the initial 2-3 months. And for domestic yes, things would
be easing out. And with things easing out smuggling too would reduce and availability of raw
material should not be a problem.
Mehul Choksi, Chairman and MD, Gitanjali Group believes the duty in gold should be
reconsidered as it is very high, making India not comparable with international market. Many
other points were also discussed. The direct loan of gold which is a very important instrument
for financing of gold which is much lower compared to buying in cash at the moment, that was
discussed too. Differential taxes as far as coins and bars are concerned as far as investment on
gold is concerned and apart from these the duty-free import of machinery and expanding fashion
jewellery and silver jewellery markert, he says.
Gold stocks will remain in focus on Saturday as the industry expects cut in import duty in Union
Budget 2015-16. Tribhovandas Bhimji Zaveri , Titan Company , PC Jeweller and Gitanjali Gems
rallied 1-4 percent on hopes of 2-5 percent cut in import duty compared to 10 percent currently.
India's demand for gold was muted this week as buyers in the world's top consumer of the metal
held off purchases ahead of an expected cut in import duty and a likely drop in local prices.
(b) Dr.Reddy Labourtories

Date :- 24/3/2015
Amit Gupta of ICICIdirect told CNBC-TV18, "There are few stocks from the pharma and
healthcare space one can look at. Particularly Dr Reddy's Laboratories is one stock which one
can look at because it is definitely witnessing the short covering in the market. It has already
attempted Rs 3500 level, it came down to Rs 3300 and it is on the verge of giving a breakout
above Rs 3500 in the coming sessions."
Drugmaker Dr Reddy's Laboratories Ltd is in talks to acquire the Indian operations of Belgian
pharmaceutical company UCB SA for about $135 million, said a person with direct knowledge
of the matter.
Sudarshan Sukhani of s2analytics.com told CNBC-TV18, "If you are a long-term investor and
you should be then pharma is a buying opportunity at anytime. The corrections are immaterial. If
you are a trader the first signs of exhaustion are coming on pharma stocks; there are some
exceptions for example Dr Reddy's Labs is not showing that."
(c ) Reliance Industries Limited

Date :- 24/3/2015
Dipan Mehta, member at BSE & NSE told CNBC-TV18, " ITC , ICICI Bank , Reliance
Industries and Larsen & Toubro , none of them are buying opportunities. As we go forward we
want to look at the tier III private sector banks. Some of the largecap IT companies and some of
the large cap pharma companies that would be more on the shopping listing." "We dont have a
particular call on ICICI Bank or Reliance for that matter and these could correct even further," he
added.
Kunal Bothra, Head of Advisory at LKP Securities told CNBC-TV18, " Reliance Industries has
remained a mystery for the markets for the last one to two years. Every time it shows strength
and that is where you see the start of selling pressure. So, this has been a very interesting mystery
which the markets have still not tried to answer. I think Rs 800 is a good support technically for
Reliance. Till the time it doesnt break that the investors could look to hold the stock further."
PART B
BETA CALCULATION
GITANJALI GEMS SHARE PRICES ON:10 MARCH 2015=48.25
11 MARCH 2015 =47.65
CNX NIFTY SHARE PRICES ON:10 MARCH=8755.9
RIL SHARE PRICES ON:10 MARCH =859.10
11 MARCH=8723.55
11 MARCH = 855.85
Dr. Reddys Laboratories Share prices on:10 MARCH= 3437.30
11 MARCH=3470.75
1. Market Return ( RM )
(Closing index on Day 2 Closing Index on Day 1) /Closing Index on Day 1 *100
=(8723.55-8755.9)/87555.9*100
(Rm)= -0.369
2. Security Return (Ri) for Reliance industries limited
(Closing index on Day 2 Closing Index on Day 1) /Closing Index on Day 1 *100
=(855.85-859.10)/859.10*100
(Ri)= -0.3783
3. Security Return (Ri) for Gitanjali Gems
= (47.65-48.25)/48.25*100
(Ri)= -1.243
4. Security return (Ri) for Dr. Reddys laboratories
= (3470.75-3437.30)/3437.30*100
(Ri)=0.973
#EXPECTED MARKET RETURN:- It is an average of 5 years RM.
10 Mar 2015- 10 Mar 2014 = (8755.9-6511.9)/6511.9*100= 34.459
10 Mar 2014- 10 Mar 2013= (6511.9-5942.35)/5942.35*100 =9.584
10Mar 2013- 10 Mar 2012= (5942.35-5333.55)/5333.55*100=11.41
10Mar 2012- 10 Mar 2011 = (5333.55-5445.45)/5445.45*100= -2.05

10 Mar 2011- 10Mar 2010 = (5445.45-5116.25)/5116.25*100=6.434
Average of 5 years (Rm) =11.967
# EXPECTED SECURITY RETURN FOR RIL:- It is an average of 5 years Ri.
10 Mar 2015- 10 Mar 2014 = (859.10-885.45)/885.45*100= -2.975
10 Mar 2014- 10 Mar 2013= (885.45-851.30)/851.30*100 = 4.01
10Mar 2013- 10 Mar 2012= (851.30-773.80)/773.80*100= 10.01
10Mar 2012- 10 Mar 2011 = (773.80-984.75)/984.75*100= -21.42
10 Mar 2011- 10Mar 2010 = (984.75-1008.75)/1008.75*100= -2.37
Average of 5 years (Ri) = -2.549
#EXPECTED SECURITY RETURN FOR GITANJALI GEM:- It is an average of 5 years Ri.
10 Mar 2015- 10 Mar 2014 = (48.25-62.35)/62.35*100= -22.61
10 Mar 2014- 10 Mar 2013= (62.35-610.60)/610.60*100 = -89.78
10Mar 2013- 10 Mar 2012= (610.60-364.35)/364.35*100= 67.58
10Mar 2012- 10 Mar 2011 = (364.35-215.35)/215.35*100= 69.18
10 Mar 2011- 10Mar 2010 = (215.35-118.70)/118.70*100= 81.42
Average of 5 years (Ri) =21.158
#EXPECTED SECURITY RETURN FOR Dr.Reddys Laboratries:- It is an average of 5

years Ri.
10 Mar 2015- 10 Mar 2014 = (3437.30-2686.65)/2686.65*100= 27.93
10 Mar 2014- 10 Mar 2013= (2686.65-1819.20)/1819.20*100 = 47.68
10Mar 2013- 10 Mar 2012= (1819.20-1702.25)/1702.25*100= 6.870
10Mar 2012- 10 Mar 2011 = (1702.25-1590.35)/1590.35*100= 7.036

10 Mar 2011- 10Mar 2010 = (1590.35-1165.25)/1165.25*100= 36.48
Average of 5 years (Ri) =25.199
CALCULATION OF BETA
1) FOR Dr. REDDYs SECURITIES:CO-VARIANCE:- Cov [ Security, Market] = [Ri E (Ri )][Rm E (Rm)]
=[0.973-25.199] [-0.369-11.967]
= (-24.22)*(-12.336)
=298.77
VARIANNCE (MARKET):- [Rm- E(Rm)]2
=[-0.369-11.967]2
=152.17
Beta = Cov [ Security, Market] / SD2 [Market]
BETA for Dr. Reddys laboratories:-298.77/152.17 = 1.963
2) FOR GITANJALI GEMS SECURITIES:CO-VARIANCE:- Cov [ Security, Market] = [Ri E (Ri )][Rm E (Rm)]
=[-1.243-21.15] [0.369-11.967]
= (-22.393)* (-12.33)
=276.10
=[0.369-11.967]2
=152.17
BETA for Gitanjali gems:-276.10/152.17 = 1.814
3) FOR RIL SECURITIES:CO-VARIANCE:- Cov [ Security, Market] = [Ri E (Ri )][Rm E (Rm)]
=[0.3783-(-2.549)] [0.369-11.967]
= (2.171)* (-12.33)
= -26.76
=[0.369-11.967]2
=152.17
BETA for RIL:- -26.76/152.17 = -0.1758
Conclusion for Beta calculation:- Beta () measures the sensitivity of securities return t market
changes. The beta of an investment is a measure of the risk arising from exposure to
general market movements. The market portfolio of all investable assets has a beta of exactly 1.
A beta below 1 can indicate either an investment with lower volatility than the market. A beta
above one generally means that the asset both is volatile and tends to move up and down with the
market. Beta is important because it measures the risk of an investment that cannot
be diversified away. We have stock of three companies Gitanjali gems, Reliance industries ltd ,
Dr. Reddys Laboratories whose beta is 1.814 , (-0.1758), 1.963 respectively. RIL has lowest beta
as compared to other companies, which means it has less risk as compared to others. However,
securitites return of these three companies is less volatile than market changes. The security of
company Dr.Reddys laboratories has highest beta ,which means it is more risky than others.
CONCLUSION
Risk chahe ght hai ril ch bt from cash flows and ratios earring jada a co. d.bt
REFERENCES
http://www.moneycontrol.com/india/stockpricequote/diamond-cutting-jewelleryprecious-metals/gitanjaligems/GG03
http://www.moneycontrol.com/financials/gitanjaligems/balance-sheet/GG03#GG03
http://www.moneycontrol.com/india/stockpricequote/refineries/relianceindustries/RI
http://www.moneycontrol.com/financials/relianceindustries/balance-sheet/RI#RI
http://www.moneycontrol.com/india/stockpricequote/pharmaceuticals/drreddyslaboratori
es/DRL
http://www.moneycontrol.com/financials/drreddyslaboratories/balance-sheet/DRL#DRL
http://www.nseindia.com/
http://www.gitanjaligroup.com/
http://www.gitanjaligroup.com/about_us/about_us.html
http://www.gitanjaligroup.com/business/businesses.html
http://www.drreddys.com/aboutus/aboutus.html
http://www.drreddys.com/businesses/businesses.html
http://www.ril.com/html/aboutus/aboutus.html
http://www.ril.com/html/aboutus/awards.html
http://www.ril.com/html/aboutus/milestones.html

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COMPANY PROFILE

RELIANCE INDUSTRIES LIMITED:- Reliance Industries Limited (RIL) is

(a) Cash Flow Statement

------------------- in Rs. Cr. ------------------Mar '14

Net (decrease)/increase In Cash and Cash

Opening Cash & Cash Equivalents

Closing Cash & Cash Equivalents

Net Profit Before Tax

Net Cash (used in)/from Financing Activities

At the same time it was lowest in year 2014 .

highest in year 2013 and lowest in year in 2014.

2014 which is 192.82

position of the firm.

(b) FINANCIAL RATIOS

------------------- in Rs. Cr. -------------------

Operating Profit Per Share (Rs)

Bonus in Equity Capital

Debt Equity Ratio

Investment Valuation Ratios

Return On Capital Employed(%)

Liquidity And Solvency Ratios

Management Efficiency Ratios

Inventory Turnover Ratio

Dividend Payout Ratio Net Profit

Earning Retention Ratio

Cash Flow Indicator Ratios

Book Value (Rs)

Dr. Reddys Laboratories:- (a) Cash Flow Statement

------------------- in Rs. Cr. ------------------Mar '14

Net (decrease)/increase In Cash and Cash

Opening Cash & Cash Equivalents

Closing Cash & Cash Equivalents

Net Profit Before Tax

Net Cash (used in)/from Financing Activities

it was highest in year 2014. It was lowest in year .

(b) FINANCIAL RATIOS

------------------- in Rs. Cr. -------------------

Investment Valuation Ratios

Operating Profit Per Share (Rs)

Bonus in Equity Capital

Debt Equity Ratio

Return On Capital Employed(%)

Liquidity And Solvency Ratios

Management Efficiency Ratios

Inventory Turnover Ratio

Debtors Turnover Ratio

Dividend Payout Ratio Net Profit

Earning Retention Ratio

Cash Flow Indicator Ratios

(C ) PROFIT& LOSS APPROPRIATION:-

Other Written Off

Profit Before Tax

PBT (Post Extra-ord Items)

Reported Net Profit

Earning Per Share (Rs)

Equity Dividend (%)

Book Value (Rs)

RELIANCE INDUSTRIES LIMITED:Cash Flow

(a) Cash Flow Statement

------------------- in Rs. Cr. ------------------Mar '14

Net (decrease)/increase In Cash and Cash

Opening Cash & Cash Equivalents

Closing Cash & Cash Equivalents