Вы находитесь на странице: 1из 31

A TRAINING REPORT

ON
(STOCK ANALYSIS OF ITC LIMITED)

Submitted to:
J.C BOSS SCIENCE & TECHNOLOGY
YMCA UNIVERSITY ,FARIDABAD

By:

Roll no. : 17020304023

Batch 2017 – 2020

In Partial Fulfillment of
Bachelor of Business Administration
(Industry-Integrated)
(Specialization: Financial Services and Banking)

J.C BOSS SCIENCE & TECHNOLOGY


YMCA UNIVERSITY ,FARIDABAD

(DECEMBER, 2019)

Satyug Darshan Institute of Engineering and Technology


Bhupani Lalpur Road, Village Bhupani
Faridabad - 121002, NCR, Haryana, India
PREFACE

There is no doubt, that class room study is quite important for gaining theoretical
knowledge, but practical is also important of students who wants to equip
themselves with the real life of corporate environment in any field of studies. It
is also true in Management studies.

Project work is conducted as an integral part of the Management Courses. It


provides an opportunity to apply the theoretically knowledge in practice. Hence,
it gives an excellent opportunity to a student to apply his capability, ability,
intellect, knowledge, brief reasoning and mettle by giving a solution to the
assigned problem, which reflects his caliber.

Name : Lakshya Kumar Rajput

Date
ACKNOWLEDGEMENT

Before we get into thick of things, I would like to add a few words of appreciation
for the people who have been a part of this project right from its inception. The
writing of this project has been one of the significant academic challenges I have
faced and without the support, patience, and guidance of the people involved, this
task would not have been completed. It is to them I owe my deepest gratitude.
It gives me immense pleasure in presenting this project report on "Stock
Analysis of ITC LIMITED ". It has been my privilege to have a team of project
guide who have assisted me from the commencement of this project. The success
of this project is a result of sheer hard work, and determination put in by me with
the help of my project guide. I hereby take this opportunity to add a special note
of thanks for Mr. Manoj Tiwari , who undertook to act as my mentor despite her
many other academic and professional commitments. Her wisdom, knowledge,
and commitment to the highest standards inspired and motivated me. Without her
insight, support, and energy, this project wouldn't have kick-started and neither
would have reached fruitfulness.
I also feel heartiest sense of obligation to my library staff members &
seniors, who helped me in collection of data & resource material & also in its
processing as well as in drafting manuscript. The project is dedicated to all those
people, who helped me while doing this project.

Lakshya Kuma Rajput


BONAFIDE CERTIFICATE

This is to certify that Mr. Lakshya Kumar Rajput of Satyug Darshan Institute
of Engineering and Technology has successfully completed the project work (A
Project report on stock analysis of ITC LIMITED) in partial fulfillment of
requirement for the completion of Bachelor in Business Administration (BBA
IIFSB) course as prescribed by the YMCA University, FARIDABAD,
(HARYANA).

This project report is the record of authentic work carried out by him/her during
the period from 30th August 2018 to 22nd November 2018 He /she has worked
under my guidance.

(Signature)

Sajid khan

Assistant Professor, BBA Department

Project Guide (Internal)

Date:
Table of Context

Chapter NO. PARTICULARS PAGE NO.

1 Introduction to the study

2 Company Profile

3 Research Methodology

• Objectives of the Study


• Scope of the Study
• Research Design
• Method of Data Collection
• Limitations of the Study
4 Data Analysis & Interpretation

5 Finding

6 Conclusion

7 Suggestions

• Bibliography
Annexure
CHAPTER-1

INTRODUCTION

TO

THE STUDY
Introduction to Stock Market

Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly
200 years ago. The earliest records of security dealings in India are meager and
obscure.

The East India Company was the dominant institution in those days and business
in its loan securities used to be transacted towards the close of the eighteenth
century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses
took place in Bombay. Though the trading list was broader in 1839, there were
only half a dozen brokers recognized by banks and merchants during 1840 and
1850. The 1850's witnessed a rapid development of commercial enterprise and
brokerage business attracted many men into the field and by 1860 the number of
brokers increased into 60. In 1860-61 the American Civil War broke out and
cotton supply from United States to Europe was stopped; thus, the 'Share Mania'
in India began. The number of brokers increased to about 200 to 250.At the end
of the American Civil War, the brokers who thrived out of Civil War in
1874,found a place in a street (now appropriately called as Dalal Street) where t
hey wouldconveniently assemble and transact business. 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. The Indian stock market
has been assigned an important place in financing the Indian corporate sector.
The two major stock exchanges in India are:-

• National Stock Exchange(NSE)


• Bombay Stock Exchange (BSE).
➢ National Stock Exchange

With the liberalization of the Indian economy, it was found inevitable to lift the
Indian stock market trading system on par with the international standards. On
the basis of the recommendations of high powered Pherwani Committee.
The National Stock Exchange was incorporated in 1992 by Industrial
Development Bank of India, Industrial Credit and Investment Corporation of
India, Industrial Finance Corporation of India, all Insurance Corporations,
selected commercial banks and others.

The National Stock Exchange(NSE) is India’s leading stock exchange covering


various cities and towns across the country. NSE was setup by leading institutions
to provide a modern, fully automated screen-based trading system with national
reach. The exchange has brought about unparalleled transparency, speed &
efficiency, safety and market integrity. It has setup facilities that serve as a model
for the securities industry in terms of systems, practices & procedures.

➢ Bombay Stock Exchange

The Bombay Stock Exchange is one of the oldest stock exchanges in Asia. It
was established as “The Native Share & Stock Brokers Association" in 1875.
It is the first stock exchange in the country to obtain permanent recognition in
1956 from the Government of India under the Securities Contracts (Regulation)
Act, 1956. The Exchange's pivotal and pre-eminent role in the development of
the Indian capital market is widely recognized and its index, SENSEX is tracked
worldwide.
SENSEX

The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that
subsequently became the barometer of the Indian stock market.
SENSEX is not only scientifically designed but also based on globally accepted
construction and review methodology. First compiled in 1986, SENSEX is a
basket of 30 constituent stocks representing a sample of large, liquid and
representative companies. The base year of SENSEX is 1978-79 and the base
value is 100. The index is widely reported in both domestic and international
markets through print as well as electronic media.
Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to
be the pulse of the Indian stock market. As the oldest index in the country, it
provides the time series data over a fairly long period of time. Small wonder, the
SENSEX has over the years become one of the most prominent brands in
the country.

The SENSEX captured all these events in the most judicial manner. One can
identify the booms and busts of the Indian stock market through SENSEX.

The launch of SENSEX in 1986 was later followed up in January 1989 by


introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100
stocks listed at five major stock exchanges.
The values of all BSE indices are updated every 15 seconds during the market
hours and displayed through the BOLT system, BSE website and news wire
agencies.
All BSE-indices are reviewed periodically by the “index committee” of the
exchange.
OVERVIEW OF THE REGULATORY FRAMEWORK OF THE CAPIT
ALMARKET IN INDIA

India has a financial system that is regulated by independent regulators in the


sectors of banking, insurance, capital markets and various service sectors. The
Indian Financial system is regulated by two governing agencies under the
Ministry of Finance.

1. Reserve Bank of India

The RBI was set up in 1935 and is the central bank of India. It regulates the
financial and banking system. It formulates monetary policies and prescribes
exchange control norms.

2. The Securities Exchange Board of India

The Government of India constituted SEBI on April 12, 1988, as a non-statutory


body to promote orderly and healthy development of the securities
market and to provide investor protection.

TRADING WITH STOCK MARKET

This section will introduce us about the process and instruments used to help a
customer or a client to trade with arcadia securities. This process is almost similar
to any other trading firm but there will be some difference in the cost of brokerage
commission.

Trading:
It is a process by which a customer is given facility to buy and sell share this
buying and selling can only be done through some broker and this is where
Arcadia helps its customer. A customer willing to trade with any brokerage
house need to have a Demat account, trading account and saving account
with a brokerage firm. Anyone having following document can open all
the above mentioned account and can start trading.

Document Required

• 3 photographs ( signed across)


• Photo Identification Proof - any of the following - Voter ID/Driving Licen
se/Passport.
• Address Proof any of the following - Voter ID/Driving License/ Passport/
Bank statement or pass book sealed and attestation by bank official/ BSNL
landline bill.
• A crossed Cheque favoring “Karvy Stock Broking”. Of the required
amount. The amount for Demat as well as trading will be Rs. 900/-(free
Demat +900 Trading Account) the minimum amount being Rs. 900 a
cheque can be given for a larger amount.
• Copy of PAN Card is mandatory.
• Registration Kit
• CDSL Demat Kit
• Bank and address proof declaration.
• PAN name discrepancy form. These documents may not be consumer
friendly but it is to avoid illegal transaction and to prevent black money
this ensures that money invested is accounted.

Basic Requirement for doing Trading

Trading requires Opening a Demat account. Demat refers to a dematerialized


account. You need to open a Demat account if you want to buy or sell stocks. So
it is just like a bank account where actual money is replaced by shares. We need
to approach the Depository Participants (DP, they are like bank branches), to
open Demat account.

A depository is a place where the stocks of investors are held in electronic form.
The depository has agents who are called depository participants(DPs).

Think of it like a bank. The head office where all the technology rests and details
of all accounts held is like the depository. And the DPs are the branches that cater
to individuals.

There are only two depositories in India –

• The National Securities Depository Ltd (NSDL) and the


• Central Depository Services Ltd (CDSL).

Capital Market Participants

• Banks
• Exchanges
• Clearing Corporations
• Brokers
• Custodians
• Depositories
• Investors
• Merchant Bankers

Combination of Futures and Option

Hedging means, minimizing the risk, i.e., minimizing the losses. Under index
futures and index options investor can minimize his losses. Hedging does not
remove losses but remove sun wanted exposure, i.e. unnecessary risk. One should
not enter into a hedging strategy hoping to make excess profits; all it can do is
reduce the risk.5

PARAMETERS OF INVESTMENT

The nature of investment differs from individual to individual and is unique to


each one because it depends on various parameters like future financial goals, the
present & the future in come model, capacity to bear the risk, the present
requirements and lot more. As an investor progresses on his/her life stage and as
his/her financial goals change, so does the unique investor profile. Economic
development of a country depends upon its investment. The emerging
economicenvironment of competitive markets signifying customer’s sovereignt
y has profoundimplications for their savings and investment. Investment means
person’s commitments towards his future

INVESTMENT

The word "Investment" can be defined in many ways according to different the
ories and principles. It is a term that can be used in a number of contexts.
However, the different meanings of "investment" are more alike than dissimilar.
Generally, investment is the application of money for earning more money.
Investment also means savings or savings made through delayed consumption.
According to economics, investment is the utilization of resources in order to
increase income or production output in the future. An amount deposited into a
bank or machinery that is purchased in anticipation of earning income in the long
run is both examples of investments. Although there is a general broad definition
to the term investment, it carries slightly different meanings to different industrial
sectors.
According to economists, investment refers to any physical or tangible asset, for
example, a building or machinery and equipment.

According to finance, the practice of investment refers to the buying of a


financial product or any valued item with an anticipation that positive returns will
be received in the future.

According to business theories, investment is that activity in which a


manufacturer buys a physical asset, for example, stock or production equipment,
in expectation that this will help the business to prosper in the long run.

Characteristics of an investment decision:

1.It involves the commitment of funds available with you or that you would be
getting in the future.
2.The investment leads to acquisition of a plot, house, or shares and debentures.
3.The physical or financial assets you have acquired are expected to give certain
benefits in the future periods. The benefits may be in the form of regular revenue
over a period of time like interest or dividend or sales or appreciation after some
point of time as normally happens in the case of investment in land or precious
metals.

Essentials of Investment

Essentials of investment refer to why investment, or the need for investment, is


required.Theinvestment strategy is a plan, which is created to guide an investor t
o choose the mostappropriate investment portfolio that will help him achieve his
financial goals within a particular period of time.

A number of investors like to increase their earnings through high-risk


investments, whilst others prefer investing in assets with minimum risk involved.
However, the majority of investors choose an investment strategy that lies in the
middle.

Investment strategies can be broadly categorized into the following types:

•Active strategies: One of the principal active strategies is market timing (an
investor isable to move into the market when it is on the low and sell the stocks
when the market ison the high), which is applied for maximizing yields.

•Passive strategies: Frequently implemented for reducing transaction costs.One


of the most popular strategies is the buy and hold, which is basically a long term
investment plan. The idea behind this is that stock markets yield a commendable
rate of return in spite of stages of fluctuation or downfall. Indexing is a strictly
passive variable of the buy and hold strategy and, in this case, an investor
purchases a limited number of every share existing in the stock market index,
for example the Standard and Poor 500 Index, or more probably in an index
fund, which is a form of a mutual fund.

Additionally, as the market timing strategy is not applicable for small-scale


investors, i t i s advisable to apply the buy and hold strategy. In case of real estate
investment the retail and small-scale investors apply the buy and hold strategy,
because the holding period is normally equal to the total span of the mortgage
loan.
PRINCIPLES OF INVESTMENT

Five basic principles serve as the foundation for the investment approach. They
are as follows:

•Focus on the long term

There is substantive empirical evidence to suggest that equities provide


the maximum risk adjusted returns over the long term. In an attempt to take full
advantage of this phenomenon, investments would be made with a long term
perspective.

•Investments confer proportionate ownership


The approach to valuing a company is similar to making an investment in a
business. Therefore, there is a need to have a comprehensive understanding of
how the business operates.

•Maintain a margin of safety


The benchmark for determining relative attractiveness of stocks would be the
intrinsic value of the business. The Investment Manager would endeavor to
purchase stocks that represent discount to this value, in an effort to preserve
capital and generate superior growth.

•Maintain a balanced outlook on the market


The investment portfolio would be regularly monitored to understand the impact
of changes in business and economic trend as well as investor sentiment. While
short-term

•Disciplined approach to selling


The decision to sell a holding would be based on either the anticipated price
appreciation being achieved or being no longer possible due to a change in
fundamental factors affecting the company or the market in which it competes, or
due to the availability of an alternative that, in the view of the Investment
Manager, offers superior returns.
These meetings would also be useful in assessing key determinants of
management quality such as orientation to minority shareholders, ability to cope
with adversity and approach to allocating surplus cash flows.
INVESTMENT TYPES

A particular investor normally determines the investment types after having


Investment decision, which is termed as capital budgeting in financial lexicon.
With the proliferation of financial markets there are more options for investment
types.
According to the financial terminology investment means the following:

• Purchasing Securities in Money or Capital Markets


• Buying Monetary or Paper Financial Assets in Money or Capital Markets
• Investing in Liquid Assets like Gold, Real Estate and Collectibles.
Investors assume that these forms of investment would furnish them with some
revenue by way of positive cash flow. These assets can also affect the particular
investor positively or negatively depending on the alterations in their respective
values. It is common practice for the particular intermediaries to have separate
legal procedures of their own.

Investment in the domain of personal finance signifies funds employed in the


purchasing of shares, investing in collective investment plans or even purchasing
an asset with an element of capital risk. In the field of real estate, investments
imply buying of property with the sole purpose of generating income.
Investment in residential real estate could be made in the form of buying housing
property, while investments in commercial real estate is made by owning
commercial property for corporate purposes that are geared to generate some
amount of revenue.
Various Short-term financial options available for investment.

Broadly speaking, savings bank account, money market/liquid funds and


fixed deposits with banks may be considered as short-term financial
investment options.

Savings Bank Account is often the first banking product people use,
which offers low interest(4%-5% p.a.), making them only marginally better
than fixed deposits.

Fixed Deposits with Banks are also referred to as term deposits and minimum
investment period for bank FDs is 30 days. Fixed Deposits with banks are for
investors with low risk appetite, and may be considered for 6-12 months
investment period as normally interest on less than 6 months bank FDs is likely
to be lower than money market fund returns.
CHAPTER-2

COMPANY

PROFILE
ITC LIMITED
ITC is an American cigarette company whose Indian branch is in Kolkata. Its five
diversified businesses are Fast-Moving Consumer Goods (comprising Foods,
Personal Care, Cigarettes and Cigars, Apparel, Education and Stationery
Products, Incense Sticks and Safety Matches), Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business and Information Technology. Although the
cigarette business contributes more than 80% of the profits of the company, 80%
of the capital is invested in the non-tobacco businesses.
Established in 1910 as the 'Imperial Tobacco Company of India Limited', the
company was renamed as the 'India Tobacco Company Limited' in 1970 and
later to 'I.T.C. Limited' in 1974. The dots in the name were removed in
September 2001 for the company to be renamed as 'ITC Limited' where 'ITC'
would no longer be an acronym. The company completed 100 years in 2010 and
as of 2012-13, had an annual turnover of US$8.31 billion and a market
capitalization of US$50 billion. It employs over 30,000 people at more than 60
locations across India and is part of Forbes 2000 list

History
Tobacco business and early years
"ITC Limited" was incorporated under the name 'Imperial Tobacco' which was
later renamed as 'Imperial Tobacco Company of India Limited', succeeding W.D.
& H.O. Wills on 24 August 1910 as a British-owned company registered
in Calcutta. Since the company was largely based on agricultural resource, it
ventured into partnerships in 1911 with farmers of southern part of India for
sourcing leaf tobacco. Under the company's umbrella, the 'Indian Leaf Tobacco
Development Company Limited' was formed in Guntur district of Andhra
Pradesh in 1912. The first cigarette factory of the company was set up in 1913 at
Bangalore. In 1918, leaf-buying points were created in southern India. ITC's
cigarette factory at Munger was equipped with printing facility in 1925, paving
way for its first non-tobacco business.
Though the first six decades of the Company's existence were primarily devoted
to the growth and consolidation of the cigarettes and leaf-tobacco businesses,
ITC's packaging & printing business was set up in 1925 as a strategic backward
integration for ITC's cigarettes business. It is today India's most sophisticated
packaging house. More factories were set up in the following years for cigarette
manufacturing across India.
In 1928, construction began for the company's headquarters, the 'Virginia House'
at Calcutta. ITC acquired Carreras Tobacco Company's factory at Kidder pore in
1935 to further strengthen its presence. ITC helped to set up indigenous cigarette
tissue-paper-making plant in 1946 to significantly reduce the import costs and a
factory for printing and packaging was set up at Madras in 1949. The Company
acquired the manufacturing business of Tobacco Manufacturers (India) Limited
and the complementary lithographic printing business of Printers (India) Limited
in 1953.
Towards Indianization and business diversification
The company was converted into a Public Limited Company on 27 October 1954.
The first step towards Indianization was taken in the same year with 6% of Indian
shareholding of the company. ITC also became the first Indian company to foray
into consumer research during this time. During 1960's, technology was given
more focus with setting up of cigarette machinery and filter-rod manufacturing
facilities aimed at achieving self-sufficiency in cigarette-making.
Ajit Narain Haskar became the company's first Indian chairman in 1969 and this
was crucial in building up the Indian management for the company. As the
company's ownership progressively Indianised, under Haskar's leadership, the
name of the company was changed from 'Imperial Tobacco Company of India
Limited' to 'India Tobacco Company Limited' in 1970. ITC also became the
first company in India to start phased Indianisation of capital and the Indian
shareholding of ITC grew from 6% to 25%. ITC entered into brand sponsorship
for various sporting events, starting from the 1971 Scissor's Cup. Innovative
market campaigns and electronic data processing were started in the 1970s.
In 1973, ITC set up its integrated research center in Bangalore, aimed at
diversification and venturing into newer businesses with research and
development. With the unfolding diversification plans, the name of the company
was changed to 'I.T.C. Limited' in 1974. The Indian shareholding grew further to
40% during this time. ITC entered into the hospitality sector with hotel business
in 1975 with the acquisition renaming of ITC Welcome group Hotel Chola in
Madras. ITC chose the hospitality sector for its potential to earn high levels of
foreign exchange, create tourism infrastructure and generate large scale direct and
indirect employment.
The shareholding went over 60% in 1976 and more hotels were started by the
company in the following years. ITC Sangeet Research Academy was set up at
Calcutta in 1977. In 1979, ITC entered the paperboards business by promoting
ITC Bhadrachalam Paperboards Limited. J N Sapru took over as the company's
chairman in 1983 and the international expansion started with the acquisition of
Surya Nepal Private Limited in 1985. The year 1986 saw vigorous moves from
the company with opening of an Indian restaurant was in the city of New York,
acquisition and renaming of Vishvarama Hotels to ITC Hotels Limited, setting
up of two new ventures - the ITC Classic Finance Limited and ITC Agro Tech
Limited under its umbrella. ITC also entered into the edible oils industry with the
launch of 'Sundrop' brand of cooking oils in 1988. Tribeni Tissues Limited was
acquired in 1990. K L Chugh assumed the role of chairman in 1991 and ITC
Global Holding Private limited was started as an international trading company
in Singapore in 1992. In 1994, all the hotels under the company were transferred
into the listed subsidiary company ITC Hotels Limited. ITC, through the brand
'Wills', sponsored the 1996 Cricket World Cup.
Y C Deveshwar took over as the company's chairman in 1996 and the corporate
governance structure was re-crafted to support effective management of multiple
businesses. ITC exited from edible oils business and financial services; sold the
ITC Classic Finance Limited to ICICI Limited and handled the 'Sundrop' business
to ConAgra Foods Limited in 1998. In the year 2000, an innovative initiative for
farmers called 'e-Choupal' was started in Madhya Pradesh in 2000. The same year
witnessed the launch of ITC's 'Wills Sport' range of casual wear with first retail
outlet in New Delhi and ITC's entry into stationery products and gifting business
introducing the 'Expressions' range of greeting cards and 'Classmate' notebooks.
A wholly owned information technology subsidiary, ITC Infotech India Limited
was also started in 2000 and the ITC Bhadrachalam Paperboards Limited was
merged into ITC Limited. The name of the company was changed to 'ITC
Limited' omitting the dots and adapting the strategy 'No stops for ITC' in 2001.
Employee stock option scheme was introduced for the first time and a web portal
for the company was launched. Subsidiaries for ITC Infotech were set up at
United Kingdom and USA.

Products and brands

Cigarettes
ITC Ltd sells 81% of the cigarettes BIDI in Asia, where 275 million people use
tobacco products and the total cigarette market is worth close to $11 billion
(around Rs. 757399.4million)
ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold
Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic
(Verve, Menthol, Menthol Rush, Regular, Citric Twist, Ice Burst, Mild & Ultra
Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players,
Flake and Duke & Royal.

Other businesses

FOODS
INFORMA
TION STATION
TECHNOL ERY
OGY

OTHER
PRODUCT SAFETY
PACKAGI S MATCHE
NG AND S AND
PRINTING AGARBAT
TIS

PAPERBO
HOTELS
ARDS

• Foods: ITC's major food brands include Kitchens of India; Aashirvaad, B


natural, Sunfeast, Candyman, Bingo! and Yippee!. ITC is India's largest seller
of branded foods with of over Rs. 4,600 crore in 2012-13. It is present across
6 categories in the food business including, snack foods, ready-to-eat meals,
fruit juices, dairy products and confectionery.
• Stationery: Brands include Classmate, PaperKraft and Colour Crew.
Launched in 2003, Classmate went on to become India's largest notebook
brand in 2007.
• Safety Matches and Agarbattis: Ship, I Know and Aim brands of safety
matches and the Mangaldeep brand of agarbattis (Incense Sticks).
• Hotels: ITC's Hotels division (under brands including Welcome Hotel) is
India's second-largest hotel chain with over 90 hotels throughout India. ITC
is also the exclusive franchisee in India of two brands owned
by Sheraton International Inc. Brands in the hospitality sector owned and
operated by its subsidiaries include Fortune Park Hotels and Welcome
Heritage Hotels.
• Paperboard: Products such as specialty paper, graphic and other paper are
sold under the ITC brand by the ITC Paperboards and Specialty Papers
Division like Classmate product of ITC well known for their quality .
• Packaging and Printing: ITC's Packaging and Printing division operates
manufacturing facilities at Haridwar and Chennai and services domestic and
export markets.
• Information Technology: ITC operates through its fully owned subsidiary
ITC Infotech India Limited.

Shareholding and listings


ITC's equity shares are listed on Bombay Stock Exchange, National Stock
Exchange of India and Calcutta Stock Exchange. The company's Global
Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.

Employees
As per the Annual report of the company, it had 25,963 employees as on 31 March
2013, out of which 3,043 were women. It spent Rs. 2,145 crores on Employee
benefits during the FY 2012-13. During the same year, its attrition rate was 12%.
ITC's Chairman Y C Deveshwar has won renowned awards and recognition
including Padma Bhushan from Govt. of India 2005-09, by Boston Consulting
Group and seventh-best-performing CEO in the world by Harvard Business
Review.
Meera Shankar, Indian ambassador to the USA between 2009 and 2011, in 2012
joined the board of ITC Limited as the first woman director in its history. She is
an additional non-executive director of the company.
Our Profile

ITC is one of India's foremost multi-business enterprises with a market


capitalisation of US $ 50 billion and Gross Sales Value^ of US $ 10 billion. ITC
is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's
Most Reputable Companies by Forbes magazine and as 'India's Most Admired
Company' in a survey conducted by Fortune India magazine and Hay Group. ITC
also features as one of world's largest sustainable value creator in the consumer
goods industry in a study by the Boston Consulting Group. ITC has been listed
among India's Most Valuable Companies by Business Today magazine. The
Company is among India's '10 Most Valuable (Company) Brands', according to a
study conducted by Brand Finance and published by the Economic Times. ITC
also ranks among Asia's 50 best performing companies compiled by Business
Week.
CHAPTER-3

RESEARCH METHODOLOGY
3.1 Objectives of the Study:

1. To analyze price movements using line charts.


2. To analysis & understand trends and patterns in stock price movements.
3. To analyze the movement of ITC Limited stock with its Industry.
4. To help investors in their decision in investing in ITC Limited stock.

3.2 Need for the study

The shareholders are the owners of the company they have to pay regular interest
and principal at the end. Stock/shares are playing a major role in acquiring capital
to the business in return investors are paid dividends to the shares they won. The
more shares you own the more dividends you receive. The role of equity analysis
is to provide information to the market. An efficient market relies on information
a lack of information creates in efficiencies that results in stocks being
misrepresented. This study fills information gaps so that each individual investor
not needs to analyses every stock thereby making the markets more efficient. The
study is need to the performance of stocks through analysis in order to know the
trend of a share, which helps in deciding whether to invest or not to invest in the
security. The research studies provided that investments in some shares with a
longer tenure of investment have yielded far superior returns than any other
investment. However this does not mean all equity investments would guarantee
similar high returns. Equities are high risk investments
3.3 Research design

The research design is the structure with in which research is conducted. A


research design is the arrangement of conditions for the collections and analysis
of the data in a manner that aims to combine to the research purpose. It constitutes
the collection , measurement & analysis of data. Research design gives an outline
of everything from defining the problems in terms of objectives to final analysis
of data.

Types of research design

DESCRIPTIVE

CONCEPTUAL ANALYTICAL

RESEARCH
DESIGN

EXPLORATORY FUNDAMENTAL

In this report, Analytical Research design was taken. In analytical Research, I


had used information or facts which is already available and analyzed that to
make critical evaluation about the stock price movements of ITC LIMITED .

It involves the in depth study and evaluation of available information in an


attempt to explain complex phenomenon. It is primary concerned with testing
hypothesis and specifying and interpreting relationship by analyzing the facts or
information already available.

Sample Design
A sample design is made up of two elements. Sampling method refers to the rules
and procedure by which some elements are included in the sample.

Some common methods are:

• Random sampling
• Stratified sampling
• Cluster sampling

3.4 Scope of the study

• The study is mainly limited to the Equity Analysis of ITC LIMITED with
the help of tools and risk and relationship involved in share price of the
bank tested.
• There are many stocks operating in the stock markets. But this study is
limited to the stock of ITC LIMITED
• There are many Tobacco corporations which is listed in BSE and NSE.
But also this study is confined to the of ITC LIMITED which is also listed.
• The scope of the study is confined to the stock market. The study includes
data related to the stock movements of ITC LIMITED in Equity and
Derivative market.

3.5 Data Collection


The task of data collection begins after a research problem has been defined and
research design chalked out. Collection of data is the first step in any statistical
investigation.
Collection of data is a very important function. The success and failure of
investigation mainly depends upon the quality of data. Adequacy and accuracy of
data is essential to arrive at correct conclusion.

The person who is collecting statistical data has to observe self-restraint,


confidence, Patience, caution and unbiased attitude while collecting data. .

My research is based on the stock prices of ITC LIMITED listed under NSE i.e.
National Stock Exchange. Stock prices of last 3 year from 1st April, 2016 to 29th
March , 2019 have been taken in this research. The study aims at analyzing the
price movements of selected data. The closing prices of share prices were taken
and the future price movement was analyzed using various tools. Data has been
collected from trading of equity market in NSE, various books, journals,
magazines and websites. There are two types of data by which analysis can be
done. These are as follows:

• Primary data
• Secondary data

DATA SOURCES

PRIMARY SECONDARY

DATA DATA
➢ PRIMARY DATA
The data that is collected first hand by someone specifically for the purpose of
facilitating the study is known as primary data. Primary Data is collected in the
course of doing experiments, performing surveys or by observation or direct
communication with respondents.

➢ SECONDARY DATA
A Researcher can obtain secondary data from various sources. Secondary data
may either be published data or unpublished data. The chief sources of Secondary
data are Magazines, Newspapers and Journals etc.
For the information of company & stock market researcher has used the
Secondary Data like website of company, website of stock exchange, books etc.

3.6 Limitations of the study


1. The Study is restricted to ITC LIMITED .

2. The Study is confined to a period of Three year, from 1st April, 2016 to 29th
March , 2019 for assessing the performance of ITC LIMITED .

3. The survey for the study was undertaken during the period of March and April
of the year 2019.

4. This study focuses on the shareholders of ITC LIMITED only and who wants
to invest in this company.

5. The accuracy is limited as the data collection was strictly confined to secondary
sources.