INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH

BHOPAL

RESEARCH WORK

ON

“A study of growth parameters in portfolio selection- A case study of

Infrastructure sector”

UNDER GUIDANCE OF:

PROF. A.S.KHALSA

SUMITTED BY:

GAGAN SINGH MOKHA

IPER-PGDM
 CERTIFICATE

This is to certify that Master Gagan Singh Mokha is a regular student of INSTITUE OF
PROFESSIONAL EDUCATION AND RESEARCH-PGDM BHOPAL. He has conducted an authentic
research on the topic “A study of growth parameters in portfolio selection-A case study on infrastructure
sector” and has completed his research methodology report successfully under the able guidance of
Professor A.S.Khalsa. The report is being taken up as a part of winter research work for Post Graduation
of Diploma in Management 2010 and being submitted thereof

Prof. A.S.KHALSA

ACKNOWLEDGEMENT
I would to grab this opportunity to thank first of all the almighty god who has given me the intellect so
that I am able to prepare this research. Then I woluld like to thank my Dean and my research guide
Prof.A.S.Khalsa for providing me with this opportunity of doing this research work and helping me
through out the project. Sir you have been guiding start through out this research assignment. I would also
like to thank my parents and my friends who have always been very cooperative whenever I need them.
In the end I would like to thank all those who have been associated with my research project.

GAGAN SINGH MOKHA

CONTENTS

PAGE NO.
CHAPTER 1:

CONCEPTUAL OVERVEIW- Infrastructure sector of India 5-7

CHAPTER 2:

RESEARCH METHODOLOGY 8

CHAPTER 3:

CASE STUDY- Introduction to 10 infrastructure companies 9-18

CHAPTER 4:

ANALYSIS OF DATA 19-26

CHAPTER 5:

FINDINGS 27-31

REFRENCES 32

CONCEPTUAL OVERVEIW: Infrastructure sector of India

Infrastructure assets are the physical structures and networks used to provide essential services to a
society. These tangible assets, and the businesses set up to manage them, can be viewed as the backbone
of an economy. Due to its importance to a country’s economic and social development, government
institutions
historically have provided infrastructure. Infrastructure services support many aspects of a country’s
economic and social activities and are crucial for business development. India has seen years of booming
economic growth. However, for years it has underinvested in its infrastructure networks. India’s rapid
economic development places intense demands on its physical infrastructure. According to official
estimates from the Indian finance ministry, the country’s GDP growth could be 2 percentage points
higher but for the shortcomings in infrastructure. The Indian economy is booming, with rates of Gross
Domestic Product (GDP) growth exceeding 8% every year since 2003/04. This ongoing growth is due to
rapidly developing services and manufacturing sectors, increasing consumer demand (largely driven by
increased spending by India’s middle class) and government commitments to rejuvenate the agricultural
sector and improve the economic conditions of India’s rural population. Construction is the second largest
economic activity in India after agriculture, and has been growing rapidly. The production of industrial
machinery has also been on the rise – and the increasing flow of goods has spurred increases in rail, road
and port traffic, necessitating further infrastructure improvements. In the fiscal year ending March 2008,
India’s GDP grew by more than 9%. This robust rate of expansion was initially forecast to continue in the
2008-2009 fiscal year. In summer 2008, however, the combined impact of slowing Indian consumption, a
higher domestic cost of capital and reduced capital access from international capital markets raised
concerns by some analysts that the rate of growth might be slowing. In October 2008, India’s Prime
Minister, Mr. Manmohan Singh, affirmed the Government’s view that a rate of growth of 7-7.5% remains
realistic, even given the global credit crunch, and assured observers that the country’s Government will
take action if necessary to support businesses and the financial markets. Mr. Singh has also singled out
infrastructure investment as particularly vital. Indeed, even with a somewhat slower rate of growth, the
Indian economy is still expanding significantly, and substantial investment in infrastructure continues to
be required in order to sustain India’s economic progress. The country’s capacity to absorb and benefit
from new technology and industries depends on the availability, quality and efficiency of more basic
forms of infrastructure including energy, water and land transportation. In some areas, roads, rail lines,
ports and airports are already operating at capacity, so expansion is a necessary prerequisite to further
economic growth.
The Indian Government recognises this imperative. As per the Eleventh Five Year Plan, more than
US$500 billion worth of investment is planned to flow into India’s infrastructure by 2012. Construction
projects account for a substantial portion of the proposed investments, making the E&C sector one of the
biggest beneficiaries of the infrastructure boom in India. The regulatory environment is relaxing to
encourage further foreign direct investment (FDI). Private sector participation is integral to these plans.
PPPs have been identified as the most suitable mode for the implementation of projects – and indeed, are
rapidly becoming the funding norm. Their share of the total planned infrastructure improvements is
projected to be around 30% (US$150 billion). Power and road projects top the list, and other
transportation sectors such as railways, ports, and airports are also targeted for major investments.
Companies looking to capitalise on the situation need to plan their strategy for entering the market
carefully. Understanding the local market, including selecting complementary local partners, is vital. Tax
optimization is a key cost component – while substantial tax benefits are provided for infrastructure
projects, developers need to be savvy about structuring their contracts. Good tax planning can have a
potentially decisive impact, especially in bidding situations, and help to avoid unnecessary litigation later.
According to the Construction Federation of India (CFI), construction is the second largest
Employer after the agriculture sector currently, the construction industry directly or indirectly employs
approximately 33 million workers, representing 14% of the workforce. It also accounts for nearly half of
the fixed capital formation. The construction industry in India currently has a gross value of output of
around INR3, 800 billion, and accounts for nearly 10% of India’s GDP. It has grown at a CAGR of 14%
over the past five years. The total gross output value has increased from INR2, 550 billion in
FY04 to INR3, 800 billion in FY07. It is widely known that India’s current infrastructure is fraught with
many weaknesses and that it is below international standards even when compared with other emerging
markets. India’s infrastructure is marked by a weak transport network, ports and airports that do not cope
with demand and, most of all, power cuts.
India’s economy is expanding rapidly, with a GDP growth rate of
around 8.5% in 2007. This has in turn propelled rapid growth in disposable
income, allowing consumers to afford and demand good infrastructure services. However, with the Indian
economy growingat such a fast pace, the already weak supply cannot keep up with this growing demand.
If we look at India’s urban infrastructure we see poor and overcrowded
public transport, jam-packed roads, inadequate water and sewage systems, and uncollected solid waste.
The situation is even at risk of worsening, because the economic boom confronts India with a significant
increase in urbanisation. Three of the ten biggest cities in the world (“mega-cities”) are located in India,
and according to a widely accepted UN estimate all are expected to grow by 20% by 2015. Outside the
cities the situation is not better. With the economy of rural India still lagging, the development of rural
infrastructure is very important to overcome this inequality. A good infrastructure network not only
provides the basic services such as clean drinking water and electricity, it also helps to create income-
generating opportunities in agriculture. Agriculture still plays a key role in India as it generates 20% of
GDP. This role is even more important with regard to employment: about 60% of the labour force works
in the agricultural sector; there is a large share of subsistence farmers. The services sector is rapidly
expanding, and – with regard to its share of GDP – it has become the country's most important
economic pillar, contributing over 60% of GDP. However, only slightly more than 25% of all employees
find a job in this sector. The industrial sector is only gradually outgrowing its niche. About 20% of GDP
is generated by industry (including the construction and energy sectors), but it employs only about 12% of
the labour force. By contrast, China has been evolving from an agriculturally based economy into an
industrial society at a breathtaking pace. Roughly 25% of China’s labour force already works in the
industrial sector.
The infrastructure industry of our country is further bifurcated into two basic segments first is the real
estate segment and second is the industrial and infrastructural construction segment. Real estate segment
is also further divided into two sub segment namely housing construction segment and commercial
complexes segment. The industrial and infrastructural construction segment is broadly divided into three
sub categories which are industrial construction, infrastructural construction and other construction and
allied activities. These are the categories according to which the whole sector is divided.

RESEARCH METHODOLOGY

A sample of companies from infrastructure sector of India on the basis of there market capitalization will
be selected. The various growth ratios which are earning per share(EPS), earning yield(EY), dividend per
share(DPS) and dividend yield(DY) will be calculated. The period of study would on quarterly basis
beginning from Q1 of 2004 to Q2 of 2009. This will tend to the inclusion of 22 quarters in our study. As
the companies list was selected on the basis of there market capitalization so there were only four
companies left out as trend analysis can be preformed only in a five year span so the tests were conducted
on four companies of this sector. Rest six companies were not able to fulfill the requirement of data from
Q1 of 2004 to Q2 of 2009. The final analysis test would be conducted on the basis of analysis of variance.
For that hypothesis would be tested. The hypothesis assumption would be as:

ALTERNATE HYPOTHESIS: For identification of portfolio section in infrastructure sector an investor

must invest into a particular company rather than investing into the whole sector.

NULL HYPOTHESIS: This states that its better to invest in the sector rather than selecting a particular
company for investing.

LIST OF THE SELECTED COMPANIES

L&T

UNITECH

IVRCL INFRA
HINDUSTAN CONSTRUCTION COMPANY

UNITECH LTD.

Website: www.unitechgroup.com

Industry Construction of buildings (Residential)

Industry P/E 78.87

ROC Reg. No. 9720

Incorporation Year 1971

Ownership Unitech Group

Registered office address: 6, Community Centre, Saket, New Delhi - Delhi

Tel no. 41664040
Fax no. 26857338

ISIN Code INE694A01020

BSE Demat Code 507878

BSE Listing group A

NSE Scrip Code UNITECH

Face value (Rs) 2.00

Beta 1.86

COMPANY BACKGROUND:

Founded by Ramesh Chandra and originally formed as United Technical Consultant Private Ltd
in 1972 as a soil investigation company. They later moved into civil engineering contracts in 1974.The
company began to focus solely on real estate in 1986. , and today it is India's second-largest listed real
estate firm. The Unitech Group is India's second largest real estate investment company, and has recently
claimed to be the largest real estate builder in the country.

The company is based in New Delhi and ranks 1484, in Forbes Global 2000 listing of the top 2000 public
companies in the world by Forbes magazine, 32nd in India . Its construction business includes highways,
roads, powerhouses, transmission lines, and it has residential projects called Unitech Cities/Uni World, in
cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore, Kochi, Noida,Greater Noida, Agra,
Lucknow, Varanasi,Gurgaon, and Ghaziabad .
 HINDUSTAN CONSTRUCTION CO. LTD.

Website: www.hccindia.com

Industry Construction of roads, bridgestunnels etc.

Industry P/E 21.67

ROC Reg. No. 1228

Incorporation Year 1926

Ownership Gulabchand Doshi Group

Registered office address: Hincon House, L B S Marg, Vikhroli (West), Mumbai -

Maharashtra

Tel no. 25775959

Fax no.25777568

ISIN Code INE549A01026

BSE Demat Code 500185

BSE Listing group A

NSE Scrip Code HCC

Face value (Rs) 1.00

Beta 1.66

COMPANY BACKGROUND

Incorporated in the year 1926 by Seth Walchand Hirachand, Hindustan Construction Co.(HCC) is one of
the oldest private sector construction companies in India. It specialises in the construction of
technologically complex and long--gestation period projects. In the last 82 years, the company has
executed various projects across all verticals in the infrastructure space, including power generation,
transportation, oil & gas pipeline construction, irrigation & water supply, marine works and urban
infrastructure projects. HCC largely focuses on power generation, transportation and irrigation/ water
supply projects. During the year ended March 2008, the company derived about 95 per cent of its
revenues from these three segments. Its order backlog of Rs.10,158 crore as on 31 March 2008,
comprised 47 per cent power projects, 32 per cent transportation projects and 21 per cent irrigation &
water supply projects. In power generation segment, HCC has constructed hydroelectric, nuclear, thermal
gas and diesel based power projects. In the field of irrigation/water supply, it has built dams, barrages,
aqueducts and tunnels. In transportation, the company has to its credit more than 300 road and railway
bridges. HCC has also undertaken several projects in other parts of the world like Bhutan, Saudi Arabia,
Iraq, Myanmar, Tanzania, Sri Lanka, etc.Some of the landmark projects executed by the company over
the years include metro rail project at Kolkata and Delhi, Koyna hydel power project, Kudankulam
atomic power project in Tamil Nadu, Farraka barrage in West Bengal, longest railway tunnel of 11 kms at
Pir Panjal in Jammu & Kashmir, double curvature arch dam at Idukki in Kerala, construction at Mumbai--
Pune expressway, etc. The company is currently executing the prestigious and technically challenging
Bandra--Worli sea link project at Mumbai, which envisages the construction of an eight--lane, 4,000
metre concrete segmental bridge joining Bandra fort and the Worli sea face. The project, which started in
2000--01, was delayed on several occasions on account of environmental clearances and cost overruns.
The company has completed the tower for the south carriageway of Bandra cable--stay and expects the
project to be commissioned by June 2009.
HCC mostly operates as a contractor for projects on EPC basis. Having gained considerable
experience in this domain and to expand its business, the company intends to establish itself as a serious
player in the BOT (build--operate--transfer)/BOOT (build--own--operate--transfer) space in future. For
this it incorporated a subsidiary, HCC Infrastructure Ltd. in 2007--08 to undertake projects awarded on
BOT terms in the roads, power and airports segments.
The company has also diversified into real estate business by floating HCC Real Estate Ltd.
(HREL), a 100 per cent subsidiary. HCC has a land bank of about 14,000 acres spread across Mumbai,
Pune, Nasik, etc. It has transferred the development rights of its land to HREL, which is currently
developing a 12,500 acre integrated township at Lavasa near Pune and 1.9 million square feet IT park at
Vikhroli in Mumbai. The IT park would be ready by December 2008, while the company expects leasing
deals to commence from the second quarter of 2008--09. The Lavasa project was launched in October
2007 and the company has already achieved a sales target of Rs.494 crore as on 31 March 2008. HCC has
signed a contract with Girls Day School Trust (an education trust in Europe managing 27 institutes,
including Oxford University) to set up an academic university at Lavasa. It has also tied--up with Ecole
Hotelier, Switzerland for setting up a hospitality learning center and Apollo Hospitals to develop a
world--class hospital and wellness center at Lavasa. HCC expects the site to start operating form October
2009.
 I V R C L INFRASTRUCTURES & PROJECTS LTD.

Website: www.ivrcl.com

Industry Construction of roads, bridgestunnels etc.

Industry P/E 21.67

ROC Reg. No. 7959

Incorporation Year 1987

Ownership IVRCL Group

Registered office address: M-22/3RT, Vijaya Nagar Colony, Hyderabad - Andhra
Pradesh

Tel no. 23348467

Fax no. 23345004

ISIN Code INE875A01025

BSE Demat Code 530773

BSE Listing group A

NSE Scrip Code IVRCLINFRA

Face value (Rs) 2.00

Beta 1.68

COMPANY BACKGROUND

Owned by the IVRCL group, IVRCL Infrastructures and Projects limited was incorporated in 1987.
Originally promoted as I.Venku Reddy Construction Pvt Ltd., through the joint efforts of Mr. E.Sudhir
Reddy, Mr.O.Pratap Reddy and Mr.I.Syam Prasad Reddy, it was converted into a public limited
company named IVR Constructions limited in 1994. In 1999 it was finally renamed as IVRCL
Infrastructures and Projects limited. The company is engaged in construction and other related activities
in sectors like water transmission and treatment, roads and highways, bridges, power transmission, solid
waste management, etc.

It has its Head Office in Hyderabad, with administrative offices in cities like Bangalore, Pune, Cochin,
Chennai, Jodhpur, Ahmedabad, Delhi and Kolkata and in the states of Chattisgarh, Haryana, Jammu and
Kashmir, Madhya Pradesh, Uttaranchal and Goa.
 The company employs imported and indigenous machineries
including marshy soil cutter, drilling machine, excavator, road roller, paver finisher, transit mixer, belt
conveyor, dozer, hot mix mini plant, etc. It is involved in joint venture projects which include prime
ministers' Golden Quadrilateral project of the National Highways Authority of India and execution of
tunnel work for laying broad gauge line for Konkan Railway in Jammu and Kashmir. Through its
subsidiary, IVR-Prime Urban Developers limited, it has constructed more than 600 residential townships
complexes. In the power transmission area, the company has undertaken turnkey construction of power
plants with detail engineering, procurement and other allied services.

Promoters hold around 12 percent in the company's equity, while the Indian public hold around
13 percent.

LARSEN & TOUBRO LTD.

Website: www.larsentoubro.com

Industry Construction of other industrial plants

Industry P/E 23.07

ROC Reg. No. 4768

Incorporation Year 1946

Ownership Larsen & Toubro Group

Registered office address: L & T House, Narottam Morajee Marg, Ballard Estate, Post Box
278, Mumbai - Maharashtra
 Tel no. 67525656

ISIN Code INE018A01030

BSE Demat Code 500510

BSE Listing group A

NSE Scrip Code LT

Face value (Rs) 2.00

Beta 1.14

COMPANY BACKGROUND

Larsen and Toubro, founded by two Danish engineers, Mr.Henning Holck Larsen and Soren Kristian
Toubro as a partnership firm in 1938, was incorporated as a company in 1946. It is one of the flagship
company of Larsen & Toubro Group & the largest engineering & construction conglomerate in Asia.
Started its business with the non core cement sector, today the company is highly diversified.
L&T carries out its diversified activities through its different divisions viz, Construction-ECC,
Engineering & Construction-Projects, Heavy Engineering-Manufacture, Electrical & Electronics,
Information Technology and Machinery & Industrial Products division. The ECC (engineering
construction & contracts) division of L&T is the largest division of the company. It constructs all kinds
of buildings, provides infrastructural facilities, takes up hydropower & irrigation projects, constructs
thermal & non conventional power plants & offers electrification services to major industries. The heavy
engineering division supplies equipment to Process plant industries, Defence, Nuclear, Power &
Aerospace sectors. The equipment plants are situated at Powai(Mumbai), Hazira(Surat) &
Ronali(Vadodra). The Electricals & Electronics Division manufactures low voltage switchboards at their
Faridabad & Powai plants. IT division offers software solutions to various industries. The Machinery &
Industrial Products division manufactures construction & mining equipment, welding machineries, metal
cutting tools, rubber processing & plastic processing machinery, crushing equipments & paper
machineries. L&T has no identifiable promoter
group. As on September 2005, the Institutional Investors hold 54.83 percent whereas the Indian Public
holds 23.44 percent. The remaining is held by others. The company is headed by the Chairman cum MD
Mr.A.M.Naik.

DATA ANALSIS

SHEET 1: EARNING PER SHARE ( EPS)

EPS
UNITE HINDUST
IVRCL CH L&T AN
18.94 13.57 43.37 19.49
19.56 19.61 72.03 19.96
22.8 22.25 71.33 21.33
27.47 23.95 75.72 30.71
29.78 24.94 76.49 32.89
31.21 27.75 53.99 30.59
31.21 27.75 53.28 3.06
8.69 55.78 68.59 3.24
8.96 1.67 71.49 3.32
8.96 1.67 35.52 3.32
 8.23 2.75 37.53 3.64
8.64 8.15 40.99 3.6
10.91 12.12 49.44 3.09
12.21 7.75 56.59 3.82
15.89 7.47 65.36 4.23
15.77 6.35 74.35 4.24
16.11 6.06 78.62 1.25
17.75 7.77 82.41 1.58
16.43 5.62 43.28 1.16
16.93 4.56 46.26 4.89
16.37 2.84 64.9 4.05
15.75 1.22 67.48 3.58

Anova: Single
Factor

SUMMARY
Groups Count Sum Average Variance
17.20772 53.874675
IVRCL 22 378.57 727 54
13.25454 170.83548
UNITECH 22 291.6 545 31
217.74465
L&T 22 1329.02 60.41 71
9.410909 115.81249
HINDUSTAN 22 207.04 091 44

ANOVA
Source of P-
Variation SS df MS F value F crit
37301. 12433.98 89.089810 5.16E- 2.713227
Between Groups 95 3 218 21 26 163
11723. 139.5668
Within Groups 61 84 275
 49025.
Total 56 87

SHEET 2: EARNING YEILD( IN %)

EY %
IVRC UNITEC HINDUSTA
L H L&T N
1.7 1.92 0.22 4.25
1.41 1.88 1.87 2.48
0.87 0.93 2.65 1.37
0.63 0.89 2.61 1.04
0.62 0.57 2.29 1.14
0.37 0.61 1.82 0.56
0.41 0.4 0.95 0.48
0.22 0.14 0.72 0.35
0.26 0.03 0.78 0.59
0.39 0.06 0.86 0.66
0.26 0.04 0.76 0.48
0.34 0.05 1.36 0.78
0.28 0.04 1 0.61
0.24 0.08 0.53 0.55
 0.18 0.05 0.36 0.32
0.25 0.09 0.13 0.57
0.33 0.15 0.18 1
0.6 0.21 0.61 1.04
0.98 0.62 0.97 1.57
1.15 0.72 1.11 2.04
0.41 0.31 0.48 0.77
0.36 0.09 0.62 0.61

Anova: Single Factor

SUMMARY
Avera Varian
Groups Count Sum ge ce
0.5572 0.1724
IVRCL 22 12.26 73 21
0.4490 0.3056
UNITECH 22 9.88 91 28
0.5693
L&T 22 22.88 1.04 81
1.0572 0.8068
HINDUSTAN 22 23.26 73 02

ANOVA
P-
Source of Variation SS df MS F value F crit
6.6774 2.2258 4.8016 0.0038 2.713227
Between Groups 73 3 24 11 96 163
38.938 0.4635
Within Groups 85 84 58
 45.616
Total 33 87

SHEET 3: DIVIDEND PER SHARE( IN Rs.)

DPS
UNITE HINDUST
IVRCL L&T CH AN
3 80 3 5

10

3 17.5 4 6
 1 22 0.2 0.7

11
1 2 0.5 0.75
2

1.4 15 0.25 0.8

1.4 10.5 0.1 0.8

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
IVRCL 6 10.8 1.8 0.896
567.923611
L&T 9 170 18.88888889 1
2.91241666
UNITECH 6 8.05 1.341666667 7
6.08641666
HINDUSTAN 6 14.05 2.341666667 7

ANOVA
Source of Variation SS df MS F P- F crit
 value
1749.4 2.92035766 0.0556 3.0279983
Between Groups 96 3 583.1653395 1 03 84
4592.8
Within Groups 63 23 199.6896981

6342.3
Total 59 26

SHEET 4: DIVIDEND YEILD ( IN %)

DY%
UNITE HINDUST
IVRCL CH L&T AN
1.52 1.92 1.69 3.68

2.01

0.59 0.57 2.38 0.86

 0.25 0.35 0.76 0.35

1.44
0.27 0.03 1.78 0.71
1.46

0.26 0.27 0.14 0.6

0.43 0.3 1.12 1.39

Anova: Single
Factor

SUMMARY
Avera Varian
Groups Count Sum ge ce
0.5533 0.2418
IVRCL 6 3.32 33 67
0.5733 0.4650
UNITECH 6 3.44 33 67
0.4547
L&T 9 12.78 1.42 75
1.5198
HINDUSTAN 6 7.59 1.265 7
 ANOVA
Source of P-
Variation SS df MS F value F crit
Between 1.4325 2.2304 0.1118 3.0279
Groups 4.297657407 3 52 51 04 98
0.6422
Within Groups 14.77221667 23 7

Total 19.06987407 26

FINDINGS

To analysise the whole case study first we have to take alternate hypothesis and null hypothesis.

ALTERNATE HYPOTHESIS: For identification of portfolio section in infrastructure sector an investor

must invest into a particular company rather than investing into the whole sector.
NULL HYPOTHESIS: This states that its better to invest in the sector rather than selecting a particular
company for investing.

Now testing of hypothesis on the basis on Annova: single factor. This test analyises the data on the basis
the calculated value of F and critical value of F.

CASE 1: EARNING PER SHARE

Anova: Single
Factor

SUMMARY
Groups Count Sum Average Variance
17.20772 53.874675
IVRCL 22 378.57 727 54
13.25454 170.83548
UNITECH 22 291.6 545 31
 217.74465
L&T 22 1329.02 60.41 71
9.410909 115.81249
HINDUSTAN 22 207.04 091 44

ANOVA
Source of P-
Variation SS Df MS F value F crit
37301. 12433.98 89.089810 5.16E- 2.713227
Between Groups 95 3 218 21 26 163
11723. 139.5668
Within Groups 61 84 275

49025.
Total 56 87

In this case as the calculated value of F is more greater than the critical value of F so the alternate
hypothesis is accepted over here. Null hypothesis is rejected. Hence its better to invest into a particular
identified company rather than investing into the sector.

CASE 2: EARNING YEILD

Anova: Single Factor

SUMMARY
Avera Varian
Groups Count Sum ge ce
0.5572 0.1724
IVRCL 22 12.26 73 21
 0.4490 0.3056
UNITECH 22 9.88 91 28
0.5693
L&T 22 22.88 1.04 81
1.0572 0.8068
HINDUSTAN 22 23.26 73 02

ANOVA
P-
Source of Variation SS df MS F value F crit
6.6774 2.2258 4.8016 0.0038 2.713227
Between Groups 73 3 24 11 96 163
38.938 0.4635
Within Groups 85 84 58

45.616
Total 33 87

In this case again the calculated F value is far away the critical value of F so hence again the null
hypothesis is rejected over here. Hence company must be identified for the purpose of investment.

CASE 3: DIVIDEND PER SHARE

Anova: Single Factor

 SUMMARY
Groups Count Sum Average Variance
IVRCL 6 10.8 1.8 0.896
567.923611
L&T 9 170 18.88888889 1
2.91241666
UNITECH 6 8.05 1.341666667 7
6.08641666
HINDUSTAN 6 14.05 2.341666667 7

ANOVA
P-
Source of Variation SS df MS F value F crit
1749.4 2.92035766 0.0556 3.0279983
Between Groups 96 3 583.1653395 1 03 84
4592.8
Within Groups 63 23 199.6896981

6342.3
Total 59 26

In this case the calculated value of F and the critical value of F are very near and there exists a very little
difference. Hence,in this case alternate hypoyhesis is rejected and null hypothesis is accepted over here.
CASE 4: DIVIDEND YEILD

Anova: Single
Factor

SUMMARY
Avera Varian
Groups Count Sum ge ce
0.5533 0.2418
IVRCL 6 3.32 33 67
0.5733 0.4650
UNITECH 6 3.44 33 67
0.4547
L&T 9 12.78 1.42 75
1.5198
HINDUSTAN 6 7.59 1.265 7

ANOVA
Source of P-
Variation SS df MS F value F crit
Between 1.4325 2.2304 0.1118 3.0279
Groups 4.297657407 3 52 51 04 98
0.6422
Within Groups 14.77221667 23 7

Total 19.06987407 26

Again in this case the calculated value of F is less than the critical value of F so the null hypothesis is
accepted over here. Hence, it better to invest in sector rather than investing according to preference.
 REFRECENCES

CMIE-PROWESS

CMIE-BUSINESS BEACON

http://www.moneycontrol.com/india/stockmarket/pricechartquote

http://www.indiainfrastructure.com/

http://en.wikipedia.org/wiki/Economy_of_India

http://wealth.moneycontrol.com/