Assignment on

The topic of
Security analysis & portfolio management
(sapm)
On the concept of
Portfolio management & investment decision
By the individual (retail investor)

SUBMITTED TO:DR. A.S CHAWLA

(Prof. SMS)

SUBMITTED BY:PARAMPREET SINGH

MBA 2ND YEAR (4TH SEM.)(FINANCE)
(SEC A)
ROLL NO. 5413
SCHOOL OF MANAGEMENT STUDIES
PUNJABI UNIVERSITTY PATIALA

I have 1000000 rs. I have making a portfolio according to my analysis.

1. I will invest 6 lack (600000) in the share markets in different

sectors.
(i.e.)

Banking
Steel industry
Tyre industry

Banking is the largest going service sector in India. The efficiency of public as well as
private sector is improving day by day, with increase in education level as well as
increase in habits in people these sectors touches the height of glory.
Steel Manufacturing industries are also very wide are where the development is
continually going on ,because steel industries are the basic industries which provide a
raw material to near about 85% manufacturing sector in India.
Tyre industries are also growing very wast, because it have directly attached with the
manufacturing of Automobile sector, with the increase of level of standard of peoples
in India the Auto Mobile sector is growing ,it have a positive impact on the growth of
tyre industries.

Analysis of Equity Market where I have investing the money in the small lots. With the
diversify the Portfolio in various sector and various companies. Limit is maximum up to
100000. (1 lack only) for the single company.
Banking sector: - I have invested the money in the HDFC BANK
The dividend given by HDFC is increased ever year
The price of the security has been not fluctuated from many previous years.
As per the report card the security is good to purchase for the investment
purpose
There is regular growth of profit
The growth of EPS is nearly constant so the investor have faith in the HDFC

The analysis of the company HDFC is on the following basis

Report card on which basis of I have taken the decision

to invest the money in HDFC BANK in Banking Sector
REPORT CARD
Attribute

Value

Date

PE ratio

31.2

04-04-2012

EPS (Rs)

16.88

Mar, 11

Sales (Rs crore)

7,202.64

Face Value (Rs)

Net profit margin

(%)

16.09

Mar, 11

Last dividend (%)

165

18/04/11

Return on average
equity
15.47

Dec, 11

Mar, 11

Compare other peers

HDFCBA
NK

AXIS
BANK

INGV
ICICI
YSYA
BANK
BK

YES
BAN
K

10

10

10

10

LTP

521.05

1,146.5
0
867.75

353.9

372.
1

% change

-1.04

-1.73

-0.52

-0.39

6,582.77

11,749. 18,149
49
.97

125.23

8,19
9.71

35,297

22,0
7,07
2

Symbol

Fundamentals
Face Value

Traded Value

Traded Volume

VWAP

-2.53

12,59,185

10,23,3 20,84,
41
814

522.78

1,148.1
5
870.58

354.78

371.
52

08Jun-11

11Aug11

17Jun11

Ratio Analysis

Ex Date

14-Jul-11

02Jun-11

Corporate Action

ANNU
AL
GENE
RAL
MEET
ING
AND
FACE
DIVID
VALUE
END
SPLIT
RS.14/
FROM
- PER
RS.10/- TO SHAR
RS.2/E

AN
NU
AL
GEN
ERA
L
ANNU ANNU MEE
AL
AL
TIN
GENE GENE G
RAL
RAL
AN
MEET MEET D
ING
ING
DIVI
AND
AND
DEN
DIVID DIVID D
END
END
RS.2
RS.14/ RS.3/- .50
- PER PER
PER
SHAR SHAR SHA
E
E
RE

Risk Profile

Qty. Traded

Deliverable Qty.

12,59,185

10,23,3 20,84,
41
814

7,45,238

2,98,29 9,18,6
9
31

35,297

22,0
7,07
2

21,597

7,07,
705

%Delivery Qty. to Traded Qty

59.18

29.15

44.06

61.19

32.0
7

Security VaR

5.18

8.93

8.93

8.07

9.56

VaR Margin

7.5

8.93

8.93

8.07

9.56

Applicable Margin Rate

12.5

13.93

13.93

13.07

14.5
6

Extreme Loss Rate

Annual results in brief

Mar
' 10

Mar '
09

Mar '
08

Sales

19,928.
21

16,1
72.9
1

16,33
2.27

10,115.
00

6,889.02

Operating profit

10,868.
58

8,26
7.82

8,919. 4,884.6
75
0

3,301.97

Interest

9,385.0
8

7,78
6.30

8,911. 4,887.1
10
2

3,179.45

Gross profit

7,725.3
6

6,42
9.72

5,178. 3,765.4
96
1

2,805.00

16.88

12.8
8

10.56

8.97

7.15

Mar '
11

Mar
' 10

Mar '
09

Mar '
08

Mar ' 07

Other income

4,335.1
5

3,80
7.61

3,290. 2,283.1
61
5

1,516.23

Stock adjustment

Raw material

Power and fuel

Employee expenses

2,836.0
4

2,28
9.18

2,238. 1,301.3
20
5

776.86

Excise

Admin and selling expenses

Research and development

expenses

Mar ' 11

EPS (Rs)

Mar ' 07

Annual results in details

Expenses capitalised

Other expenses

4,316.8
8

3,47
5.32

3,294. 2,444.2
62
7

1,643.94

Provisions made

1,906.7
1

2,14
0.59

1,879. 1,484.7
70
8

1,166.25

Depreciation

Taxation

1,892.2
6

1,34
0.44

1,054.
31
690.45

497.3

Net profit / loss

3,926.3
9

2,94
8.69

2,244. 1,590.1
95
8

1,141.45

Extra ordinary item

Prior year adjustments

Equity capital

465.23

457.
74

425.3
8

354.43

319.39

Equity dividend rate

Agg.of non-prom. shares (Lacs)

2754.4

3429.
3491 41

2719.9

2505.29

Agg.of non promotoHolding (%)

59.2

76.3

80.6

76.7

78.4

54.54

51.1
2

54.61

48.29

47.93

31.84

32.1
8

26.39

30.37

33.37

16.18

14.7
6

11.44

12.83

13.58

OPM (%)

GPM (%)

NPM (%)

Balance sheet

Mar '
11

Mar
' 10

Mar '
09

Mar '
08

Mar ' 07

465.23

457.
74

425.3
8

354.43

319.39

Sources of funds
Owner's fund

Equity share capital

Share application money

400.9
2

Preference share capital

24,914.
04

21,0
64.7
5

14,22
6.43

11,142.
80

6,113.76

2,08,58
6.41

1,67,
404. 1,42,8 1,00,76
44
11.58 8.60

68,297.94

2,33,96
5.67

1,88,
926. 1,57,8 1,12,26
93
64.31 5.83

74,731.09

5,244.2
1

4,70
7.97

1,917.56

Reserves & surplus

Loan funds
Secured loans

Unsecured loans

Total

Uses of funds
Fixed assets

Gross block

3,956. 2,386.9
63
9

Less : revaluation reserve

Less : accumulated depreciation

3,073.5
6

2,58
5.16

2,249. 1,211.8
90
6

950.89

Net block

2,170.6
5

2,12
2.81

1,706. 1,175.1
73
3

966.67

Capital work-in-progress

70,929.
37

58,6
07.6
2

58,81
7.55

49,393.
54

30,564.80

14,601.
08

5,95
5.15

6,356. 4,402.6
83
9

3,605.48

28,992.
86

20,6
15.9
4

22,72
0.62

16,431.
91

13,689.13

Total net current assets

14,391.
78

14,6
60.7
9

16,36
3.79

12,029.
22

-10,083.65

Miscellaneous expenses not

written

58,708.
23

46,0
69.6
3

44,16
0.49

38,539.
45

21,447.82

Investments

Net current assets

Current assets, loans & advances

Less : current liabilities &

provisions

Total

Notes:
Book value of unquoted
investments

Market value of quoted

investments

Contingent liabilities

5,88,55
0.98

4,87,
176. 4,14,5 5,99,92
37
33.93 8.79

2,09,338.61

Number of equity
sharesoutstanding (Lacs)

4652.2
6

4577 4253.
.43
84

3193.9

Dividend

Year

Mo
nth

Dividen
d (%)

2011

Apr

165

2010

Apr

120

2009

Apr

100

2008

Apr

85

2007

Apr

70

2006

Apr

55

2005

Apr

45

2004

Apr

35

2003

Apr

30

2002

Apr

25

2001

Apr

20

2000

Apr

16

1999

Apr

13

1998

May 10

1997

May 8

3544.33

Ratios

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Adjusted EPS
(Rs)

84.42

64.33

52.68

44.85

35.77

Adjusted cash
EPS (Rs)

95.11

72.95

61.14

52.51

50.2

Reported EPS
(Rs)

84.4

64.42

52.77

44.87

35.74

Reported cash
EPS (Rs)

95.09

73.03

61.24

52.53

50.16

Dividend per
share

16.5

12

10

8.5

Operating profit
per share (Rs)

160.36

106.25

92.36

107.32

86.19

Book value (excl

rev res) per share
(Rs)

545.53

470.19

344.44

324.38

201.42

Book value (incl

rev res) per share
(Rs.)

545.53

470.19

344.44

324.38

201.42

Net operating
income per share
(Rs)

524.34

436.03

464.77

348.57

259.98

Free reserves per

share (Rs)

419.1

363.55

252.37

269.89

155.69

Operating margin
(%)

30.58

24.36

19.87

30.78

33.15

Gross profit
margin (%)

28.54

22.39

18.05

28.58

30.5

Per share ratios

Profitability
ratios

Net profit margin

(%)

16.09

14.76

11.35

12.82

13.57

Adjusted cash
margin (%)

18.13

16.71

13.15

15.01

19.07

Adjusted return
on net worth (%)

15.47

13.68

15.29

13.82

17.75

Reported return
on net worth (%)

15.47

13.7

15.32

13.83

17.74

Return on long
term funds (%)

59.91

56.08

83.31

62.34

74.91

Long term debt /

Equity

Total debt/equity

8.22

7.78

9.75

8.76

10.62

Owners fund as
% of total source

10.84

11.39

9.3

10.24

8.6

Fixed assets
turnover ratio

4.65

4.24

5.18

4.33

Current ratio

0.5

0.28

0.27

0.26

0.26

Current ratio (inc.

st loans)

0.06

0.03

0.03

0.03

0.04

Quick ratio

6.89

7.14

5.23

4.89

4.07

21.72

22.16

22.16

22.91

Leverage ratios

Liquidity ratios

Inventoryturnover
ratio
Payout ratios
Dividend payout
ratio (net profit)

22.72

Dividend payout
ratio (cash profit)

20.16

19.15

19.1

18.93

16.32

Earning retention
ratio

77.29

78.25

77.79

77.83

77.11

Cash earnings
retention ratio

79.84

80.82

80.87

81.07

83.69

Adjusted cash
flow time total
debt

47.14

50.13

54.91

54.14

42.6

Financial charges
coverage ratio

0.79

1.63

0.44

0.78

1.9

Fin. charges
cov.ratio (post
tax)

1.47

1.43

1.29

1.38

1.5

Material cost
component (%
earnings)

Selling cost
Component

0.65

0.41

0.54

0.92

0.9

Exports as
percent of total
sales

Import comp. in
raw mat.
Consumed

Long term assets

/ total Assets

0.83

0.91

0.9

0.91

0.89

Coverage ratios

Component
ratios

Bonus component
in equity capital
(%)
-

Analysis of Equity Market where I have investing the money in

the small lots. With the diversify the Portfolio in various sector
and various companies. . limit is maximum up to 100000. (1 lack
only) for the single company.
Steel Sector: - I have invested the money in the TATA STEELS LTD.
The analysis of the company TATA STEELS LTD. is on the following basis
The dividend given by TATA STEELS is increased ever year
The price of the security has been not fluctuated from many previous years.
As per the report card the security is good to purchase for the investment purpose
There is regular growth of profit
The growth of EPS is nearly constant so the investor have faith in the TATA STEELS

Report card on which basis of I have taken the decision to invest the money in HDFC BANK
in Banking Sector
Report card
Attribute Value

Date

PE ratio

6.63

04-04-2012

EPS (Rs)

71.56

Mar, 11

Sales (Rs
crore)

8,381.85

Dec, 11

Face
Value
(Rs)

10

Net profit
margin
(%)
23.16

Mar, 11

Last
bonus

01:02

06-07-2004

Last
dividend
(%)

120

26/05/11

Return on
average
equity
14.22

Mar, 11

Compare other peers

Symbol

TATASTEEL

USHAMART

JINDALSTEL SAIL

ISMTLTD

Fundamentals
Face Value

10

10

LTP

456.8

33

506.35

93.75

26.75

% change

-3.94

4.1

-3.5

-4.29

-0.74

Traded
Value

12,410.39

112.6

5,965.31

2,191.01

2.34

Traded
Volume

26,79,445

3,50,245

11,69,532

23,09,731

8,769

VWAP

463.17

32.15

510.06

94.86

26.7

19-Jul-11

12-Sep-11

15-Feb-12

21-Sep-11

ANNUAL
GENERAL
MEETING /
ANNUAL GENERAL DIVIDENDMEETING/DIVIDEND RE.1/- PER
RS 12 PER SHARE
SHARE

DIVIDENDRS.1.50 PER
SHARE

INTERIM
DIVIDEND
RS.1.20
PER
SHARE
(PURPOSE
REVISED)

ANNUAL
GENERAL
MEETING AND
DIVIDEND
RS.1.25 PER
SHARE

26,79,445

3,50,245

11,69,532

23,09,731

8,769

Deliverable
Qty.
6,80,403

2,83,578

5,05,978

7,52,822

7,323

%Delivery
Qty. to
Traded Qty 25.39

80.97

43.26

32.59

83.51

Security
VaR

9.87

8.97

10.62

10.54

8.66

VaR
Margin

9.87

8.97

10.62

10.54

25.98

Applicable
Margin
Rate

14.87

13.97

15.62

15.54

30.98

Extreme
Loss Rate

Ratio Analysis
Ex Date

Corporate
Action

04-Jul-11

Risk Profile
Qty.
Traded

Annual results in brief

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Sales

29,396.35

25,021.98

24,315.77

19,693.28

19,762.57

Operating profit

11,432.86

8,952.09

9,133.43

8,223.54

6,973.27

Interest

1,300.49

1,508.40

1,152.69

878.7

173.9

Gross profit

10,923.04

8,297.48

973.4

834.61

7,233.04

EPS (Rs)

71.56

56.87

71.18

64.14

72.71

Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

790.67

853.79

308.27

335

433.67

Annual results in details

Other income

Stock
adjustment

-173.65

134.97

-289.27

-38.73

-82.47

Raw material

6,244.01

5,494.74

5,709.91

3,429.52

3,121.46

Power and fuel

1,404.86

1,268.28

1,091.37

Employee
expenses

2,619.77

2,361.48

2,305.81

1,594.77

1,456.83

Excise

2,210.55

Admin and
selling expenses

Research and
development
expenses

Expenses
capitalised

Other expenses

7,868.50

6,810.42

6,364.52

6,484.18

6,082.93

Provisions made -

Depreciation

1,146.19

1,083.18

973.4

834.61

819.29

Taxation

2,911.16

2,167.50

2,113.87

2,379.33

2,039.50

Net profit / loss

6,865.69

5,046.80

5,201.74

4,687.03

4,222.15

Extra ordinary
item

221.13

-152.1

Prior year
adjustments

Equity capital

959.41

887.41

730.79

730.78

580.67

Equity dividend
rate

Agg.of nonprom. shares

(Lacs)

6418.04

6051.62

4825.23

4825.87

4033.17

Agg.of non
promotoHolding
(%)
68.62

68.53

66.05

66.06

69.48

OPM (%)

38.89

35.78

37.56

41.76

35.29

GPM (%)

36.18

32.07

3.95

4.17

35.81

NPM (%)

22.74

19.5

21.12

23.4

20.91

Balance sheet
Mar ' 11

Mar ' 10

Mar ' 09

Mar ' 08

Mar ' 07

Equity share capital

959.41

887.41

730.79

730.78

580.67

Share application
money

178.2

147.06

Preference share
capital

5,472.66

5,472.52

Reserves & surplus

47,307.02 36,281.34 23,501.15 21,097.43 13,368.42

Sources of funds
Owner's fund

Loan funds
Secured loans

2,009.20

2,259.32

3,913.05

3,520.58

3,758.92

Unsecured loans
Total

26,291.94 22,979.88 23,033.13 14,501.11 5,886.41

76,745.77 62,407.95 56,650.78 45,322.42 23,741.48

Uses of funds
Fixed assets
Gross block

22,846.26 22,306.07 20,057.01 16,479.59 16,029.49

Less : revaluation
reserve

Less : accumulated
depreciation

11,041.16 10,143.63 9,062.47

8,223.48

7,486.37

Net block

11,805.10 12,162.44 10,994.54 8,256.11

8,543.12

Capital work-inprogress

6,969.38

4,367.45

2,497.44

Investments

46,564.94 44,979.67 42,371.78 4,103.19

6,106.18

3,843.59

3,487.68

Net current assets

Current assets, loans

& advances

25,337.37 13,425.27 11,591.66 38,196.34 14,671.91

Less : current
liabilities &
provisions

13,931.02 12,003.02 11,899.95 9,755.78

Total net current

assets

11,406.35 1,422.25

Miscellaneous
expenses not written
Total

105.07
155.11
202.53
76,745.77 62,407.95 56,650.78 45,322.42 23,741.48

Notes:

-308.29

8,279.70

28,440.56 6,392.21

Book value of
unquoted investments

45,899.97 44,243.24 41,665.63 3,790.47

5,793.46

Market value of
quoted investments

4,914.95

3,260.65

2,979.00

Contingent liabilities

12,582.24 13,184.61 12,188.55 9,250.08

7,185.93

Number of equity
sharesoutstanding
(Lacs)

9592.14

5804.73

Dividend
Year

Month

2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2002
2001
2000
1999
1998
1997

May
May
Jun
Jun
May
May
May
May
May
May
Apr
May
Mar
May
May
May

Dividend
(%)
120
80
160
160
155
130
130
100
80
40
50
40
40
40
45

4,397.79

8872.14

1,491.89

7305.92

7305.84

Ratios

Per share
ratios
Adjusted
EPS (Rs)
Adjusted
cash EPS
(Rs)
Reported
EPS (Rs)
Reported
cash EPS
(Rs)
Dividend per
share
Operating
profit per
share (Rs)
Book value
(excl rev res)
per share
(Rs)

Mar ' 11

Mar '
10

Mar '
09

Mar '
08

Mar '
07

59.98

46.12

65.63

60.58

73.87

71.93

58.32

78.95

72

87.98

71.58

56.37

69.7

63.85

72.74

83.53

68.58

83.02

75.27

86.85

12

16

16

15.5

116.45

100.38

125.6

112.85

119.11

503.19

418.94

330.24

296.65

236.82

418.94

330.24

296.65

236.82

281.11

333.27

269.02

300.66

392.98

309.18

275.25

213.24

38.11

35.7

37.68

41.94

39.61

34.2

31.36

33.69

37.7

34.91

23.16

19.96

21.09

23.43

23.53

Book value
(incl rev res)
per share
(Rs.)
503.19
Net
operating
income per
share (Rs)
305.53
Free reserves
per share
(Rs)
454.52
Profitability
ratios
Operating
margin (%)
Gross profit
margin (%)
Net profit
margin (%)

Adjusted
cash margin
(%)
Adjusted
return on net
worth (%)
Reported
return on net
worth (%)
Return on
long term
funds (%)
Leverage
ratios
Long term
debt / Equity
Total
debt/equity
Owners fund
as % of total
source
Fixed assets
turnover
ratio
Liquidity
ratios
Current ratio
Current ratio
(inc. st
loans)
Quick ratio
Inventory
turnover
ratio
Payout
ratios
Dividend
payout ratio
(net profit)
Dividend
payout ratio
(cash profit)
Earning
retention
ratio

23.28

20.65

23.83

26.41

28.47

11.91

11

19.87

20.42

31.19

14.22

13.45

21.1

21.52

30.71

13.54

13.06

15.21

17.16

28.11

0.58

0.67

1.31

1.07

0.67

0.58

0.67

1.34

1.08

0.69

63.03

59.55

42.77

48.16

59.12

1.29

1.12

1.22

1.2

1.09

1.82

1.12

0.97

3.92

1.77

1.78
1.45

1.12
0.76

0.91
0.57

3.81
3.52

1.69
1.37

9.85

10.9

9.36

10.84

10.81

19.04

16.64

27.15

29.39

26.15

16.32

13.68

22.8

24.93

21.9

77.27

79.66

71.16

69.02

74.25

Cash
earnings
retention
ratio

Coverage
ratios
Adjusted
cash flow
time total
debt
Financial
charges
coverage
ratio
Fin. charges
cov.ratio
(post tax)
Component
ratios
Material cost
component
(% earnings)
Selling cost
Component
Exports as
percent of
total sales
Import
comp. in raw
mat.
Consumed
Long term
assets / total
Assets
Bonus
component
in equity
capital (%)

81.05

83.92

76.03

73.94

78.38

4.1

4.83

4.58

3.41

1.89

6.82

6.37

9.25

29.45

5.75

4.32

5.15

6.94

21.07

32.05

33.5

35.19

30.85

33.01

0.37

0.32

0.25

0.26

0.37

8.1

8.41

13.85

11.64

12.05

60.95

59.69

68.85

50.51

48.93

0.72

0.81

0.83

0.3

0.53

26.36

28.5

34.61

34.61

43.56

Analysis of Equity Market where I have investing the money in

the small lots. With the diversify the Portfolio in various sector
and various companies. . Limit is maximum up to 100000. (1 lack
only) for the single company.
TYRE Sector: - I have invested the money in the MRF LTD.
The analysis of the company MRF LTD. Is on the following basis
The dividend given by MRF is increased ever year

The price of the security has been not fluctuated from many previous years.
As per the report card the security is good to purchase for the investment purpose

The growth of EPS is nearly constant so the investor have faith in the MRF

Report card
Attribute
PE ratio
EPS (Rs)
Sales (Rs
crore)
Face Value
(Rs)
Net profit
margin (%)
Last bonus
Last dividend
(%)
Return on
average equity

Value
7.29
1,460.90

Date
04-04-2012
Sep, 11

2,875.49

Dec, 11

10
6.36
01:02

Sep, 11
04-02-1975

190

29/11/11

26.95

Sep, 11

Comparison between various companies in tyre industry

LTP
Change

52 W H/L

Results (in Cr.)

Sales
PAT
Equity
Ratios

MRF
10,946.65
2.72

Apollo Tyres JK Tyre

84.2
82.2
0.9
--

Ceat
102.25
1.74

11,080.00 /
6,200.00

112.90 /
86.35 / 50.80 53.50

117.80 /
66.20

11-Dec
2,875.49
112.89
4.24

11-Dec
2,093.22
42.57
50.41

11-Dec
1,422.94
-21.31
41.06

11-Dec
1,065.44
2.39
34.24

OPM

9.09

8.03

2.42

5.67

NPM
EPS
CEPS

3.93
266.18
418.92

2.03
0.84
1.78

-1.5
-5.19
1.18

0.22
0.7
6.18

11-Dec
11,46,383

11-Dec
11-Dec
23,38,04,295 1,94,39,481

Ownership
Promoter & Promoter

11-Dec
1,75,63,894

Grp
Indian

11,24,758

23,18,27,295 1,94,39,481

1,57,81,546

Foreign

21,625

19,77,000

17,82,348

30,94,760

27,02,20,475 2,16,19,865

1,66,79,640

6,12,944

17,57,87,677 37,51,348

55,09,524

FII

1,03,467

11,37,87,910 14,50,009

6,20,342

DII

5,09,477

6,19,99,767

23,01,339

48,89,182

Non Institution

24,81,816

9,44,32,798

1,78,68,517

1,11,70,116

Bodies Corporate

10,07,359

3,73,80,431

50,61,319

25,01,778

Public

Institution

Dividend
Year

Month

2011
2011
2011
2010
2010
2010
2009
2009
2009
2008
2008
2008
2007
2007
2007
2006

Nov
Oct
Jul
Nov
Oct
Jul
Dec
Oct
Jul
Dec
Oct
Jul
Dec
Oct
Jul
Dec

Dividend
(%)
190
30
30
440
30
30
190
30
30
140
30
30
140
30
30
140

--

2006
2006
2005
2005
2005
2004
2004
2004
2003
2003
2003
2002
2002
2002
2001
2001
2001
2000
2000
2000
2000
1999
1999
1999
1998
1998
1997
1997
1997

Oct
Jul
Dec
Oct
Jul
Dec
Sep
Jul
Dec
Jul
Apr
Dec
Sep
Jun
Dec
Sep
Jun
Dec
Sep
Jun
Jan
Oct
Jul
Jan
Jul
Apr
Nov
Jul
Jan

30
30
140
30
30
140
30
30
140
30
30
140
30
30
90
30
30
90
30
30
140
30
30
30
30
30
30
80

Ratios

Per share
ratios
Adjusted
EPS (Rs)
Adjusted
cash EPS
(Rs)

Sep ' 11

Sep ' 10

Sep ' 09

Sep ' 08

Sep ' 07

500.55

799.12

590.01

324.04

386.66

1,084.42

1,413.93

1,177.87

723.74

748.38

Reported
EPS (Rs)
Reported
cash EPS
(Rs)

1,460.50

834.63

604.37

334.74

405.03

2,044.38

1,449.44

1,192.23

734.45

766.75

Dividend per
share

25

50

25

20

20

Operating
profit per
share (Rs)

1,918.68

1,971.80

1,663.30

1,032.93

1,064.97

Book value
(excl rev res)
per share
(Rs)

5,417.81

3,986.38

3,210.03

2,642.66

2,325.20

Book value
(incl rev res)
per share
(Rs.)

5,417.81

3,986.38

3,210.03

2,642.66

2,325.20

Net
operating
income per
share (Rs)

22,910.19

17,596.06

13,391.60

11,932.66 10,398.66

Free reserves
per share
(Rs)

5,365.51

3,976.38

3,200.03

2,632.66

2,315.20

8.37

11.2

12.42

8.65

10.24

Profitability
ratios
Operating
margin (%)

Gross profit
margin (%)

5.82

7.71

8.03

5.3

6.76

Net profit
margin (%)

6.36

4.73

4.5

2.8

3.89

Adjusted
cash margin
(%)

4.72

8.02

8.78

6.05

7.19

Adjusted
return on net
worth (%)

9.23

20.04

18.38

12.26

16.62

Reported
return on net
worth (%)

26.95

20.93

18.82

12.66

17.41

Return on
long term
funds (%)

17.04

24.72

28.34

16.86

23.29

Long term
debt / Equity

0.48

0.39

0.19

0.44

0.31

Total
debt/equity

0.65

0.56

0.21

0.85

0.61

Owners fund
as % of total
source

60.24

63.96

82.3

53.8

61.86

Leverage
ratios

Fixed assets
turnover
ratio

2.55

2.22

2.09

2.1

2.16

1.25

1.54

1.2

1.54

1.66

Current ratio
(inc. st loans) 0.94

1.08

1.16

0.89

1.05

Quick ratio

0.64

0.71

0.73

0.77

0.91

Inventory
turnover
ratio

7.35

7.68

10.17

6.09

7.63

1.99

6.98

4.83

6.98

5.77

1.42

4.02

2.45

3.18

3.05

94.2

92.71

95.05

92.79

93.96

97.32

95.88

97.52

96.77

96.88

Liquidity
ratios
Current ratio

Payout
ratios

Dividend
payout ratio
(net profit)

Dividend
payout ratio
(cash profit)
Earning
retention
ratio
Cash
earnings
retention
ratio
Coverage
ratios

Adjusted
cash flow
time total
debt

3.3

1.59

0.58

3.13

1.92

Financial
charges
coverage
ratio

8.9

13.35

10.31

6.68

9.26

Fin. charges
cov.ratio
(post tax)

10.32

10.74

8.34

5.7

7.6

Material cost
component
(% earnings)

78.37

71.22

63.61

72.03

70.85

Selling cost
Component

4.78

5.95

6.43

6.21

6.95

Exports as
percent of
total sales

8.47

8.97

8.82

9.83

11.18

Import
comp. in raw
mat.
Consumed

33.79

32.17

33.73

20.06

26.79

Long term
assets / total
Assets

0.5

0.47

0.44

0.4

0.38

Component
ratios

Bonus
component
in equity
capital (%)

41.98

41.98

41.98

41.98

41.98

2. I will invest rs 1 lack (100000) in the

Mutual Fund market
50000 in HDFC top 200
50000 in Birla Sun Rise

ANALYSIS is done through from the following tables.

1.The all the companies which is the part of hdfc top 200, their values are increased
continuesly

3. I will invest 1.5 lack (150000) in Fully secure market

segment Government Securities, Infrastructure Bonds and
Corporate Debt Market Securities.
Analysis

Government Securities are: - Bonds and Treasury Bill of Centre Government,

State Government & Various Local Body Authorities with the maximum
investment of (80000) eighty thousand rs.
Infrastructure Bonds: - the infrastructure Bonds are the Tax Relief Bonds U/S
80C in INCOME TAX ACT, this limit is maximum up to 20000. (twenty
thousand only)
Corporate Debt Securities: - the corporate debt securities include debenture
and the bond of the company. This limit is maximum up to 50000. (Fifty
thousand only)

4. I will do the trading in the Currency and in the commodity

market with the remain money that is the limit is maximum
up to 50000. (Fifty thousand only).

5. I will make a deposit of 1 lack (100000) as a

bank deposit.
Analysis
50000 In form of FDR for minimum one year , for future requirement with minimum
interest rate @ 9.5 %
50000 in form of bank deposit in saving bank account in kotack Mahindra Bank who are
provide a maximum interest on saving account @ 6% per annum.
Analysis
The benefit to invest money in the bank has a full security of the principal and the interest,
but on the maturity of the FDR.
On the other hand the saving investment in fully liquid form of investment, you can withdraw
money whenever you want.