SIP PROPOSAL

SIP PROPOSED

Equity Research on banking sector

DESCRIPTION OF SIP IN BRIEF

Equity Research primarily means analyzing company’s financials, perform ratio analysis, forecast the
financials (financial modeling) and explore scenarios with an objective of making BUY/SELL stock
investment recommendation.

The principle point of this undertaking is to investigate current development pattern of banks in equity
research. Research studies have proved that investments in some shares with a long period of
investment have yielded superior returns than any other investment. However, this does not mean all
equity investments would guarantee similar high returns very time. Equities are high-risk investments.
One needs to study them carefully before investing.

Equity valuation begins with analysis of the sector in which you want to make your investment; if the
sector looks positive then analyse various companies in the sector. A company analysed fundamentally
to check its performance and financial strength. Technical analysis is used to decide the right price to
buy a stock so that higher return on investment can be generated.

This report will start from the fundamental analysis where EIC (economy, industry, company) analysis of
the four banks (HDFC Bank, ICICI Bank, State Bank of India, Bank of Baroda) will be done. After analysing
these banks, financial ratios will be calculated. Then technical analysis of bank will be done. Technical
analysis is used to study stock chart patterns of these banks. Based on these factors, trend of particular
stock will be observed.

Finally the conclusion and recommendations will be made.

OBJECTIVE OF THE SIP

The major objectives of the study:-

• To find the investment opportunity in banking sector.

• To study and compare the performance of the banks in the banking sector.
• To help the investors for choosing to make their investments in banking sector.
• To understand the concept of investing in equity shares.
• Comparative analysis of 4 selected banks.

METHODOLOGY

The methodology of study consists of

• Source of data collection
• Statistical tools and techniques
Source of data collection:
The data will be collected through primary and secondary sources

1. Primary data:-
 Discussion with branch manager

2. Secondary data:-
 Books related to finance
 Online/Web sites can be used for information collection

Statistical tool and techniques:

The collected data needed for the analysis are:

 Comparative analysis of balance sheets
 Financial ratio’s

SCHEDULE

For ease in achieving desired result the Overall SIP Project will divide into three monthly based
Schedules;

Initial Phase: (Month 01)

The initial phase of the project schedule is a summary level schedule which highlights the tasks for first
month of study which will start with gaining equity market knowledge and to through with the
secondary data like banking history, extraction of financial data.

Interim Phase: (Month 02)

Intermediate or Interim phase of project schedule is the advance level study with reference to
Sharekhan Limited which will constitute of working on the data by using various financial tools and
technical analysis.

Final Phase: (Month 03)

Final Phase of the project study under SIP will consist of reaching the conclusion and to prepare final
report within the time schedule provided.

LIMITATIONS OF THE STUDY

 The study is based on the secondary data (balance sheet) which can be easily manipulated or
may not be 100% correct.
 The project has been limited to investment analysis of banking sector only.