Investment Anlysis

and
Portfolio Management
Project report of fundamental analysis
on
consumer durable industry

Submitted to: Debaditay mohanti

Submitted by: Mayur patel( 10 S.V )
Mulik ghor

S.K.PATEL INSTITUTE OF MANAGEMENT

GANDHINAGAR
SKPIMCS-GANDHINAGAR

Macroeconomic Analysis in Consumer durable industry

Economic factor
1. SENSEX Return Compared with Exchange Rate Return in Indian Equity Market.

Interpretation:In Exchange rate return and Sensex in Indian equity market is not have the same pattern so
we can say that if Exchange rate return changes than no impact on Sensex in Equity and
Financial market in India.

SKPIMCS-GANDHINAGAR

2. Sensex Return Compared with Forex Return in Indian Equity Market.

Interpretation:In Forex Return and Sensex not have the same pattern in Indian Equity Market. so we can say
that if Forex Return changes than no impact on Sensex in Indian Equity Market.

SKPIMCS-GANDHINAGAR

3. SENSEX Return Compared with GDP Return in Indian Equity Market.

Interpretation:In GDP Return and Sensex have the same pattern in Indian Equity Market so we can say that if
Forex Return changes than impact on Sensex in Indian Equity Market.

SKPIMCS-GANDHINAGAR

4. Sensex Return Compared with Inflation Rate in Indian Equity Market.

Interpretation:-

In Inflation Return and Sensex have the same pattern in Indian Equity Market.
so we can say that if Inflation Return changes than impact on Sensex in Indian Equity Market.

SKPIMCS-GANDHINAGAR

5. Sensex and Interest Rate in Indian Equity Market.

Interpretation:In interest rate and Sensex not have the same pattern in Indian Equity Market so we can
say that if interest rate changes than no impact on Sensex in Indian Equity Market.

SKPIMCS-GANDHINAGAR

Sensex and Interest Rate in Indian Equity Market

Year
2009-10
01-Apr-09
01-May-09
01-Jun-09
01-Jul-09
01-Aug-09
01-Sep-09
01-Oct-09
01-Nov-09
01-Dec-09
01-Jan-10
01-Feb-10
01-Mar-10
2010-11
01-Apr-10
01-May-10
01-Jun-10
01-Jul-10
01-Aug-10
01-Sep-10
01-Oct-10
01-Nov-10
01-Dec-10
01-Jan-11
01-Feb-11
01-Mar-11
2011-12
01-Apr-11
01-May-11
01-Jun-11
01-Jul-11
01-Aug-11
01-Sep-11
01-Oct-11
01-Nov-11
01-Dec-11
01-Jan-12
01-Feb-12
01-Mar-12
2012-13
01-Apr-12
01-May-12
01-Jun-12
01-Jul-12
01-Aug-12
01-Sep-12
01-Oct-12
01-Nov-12
01-Dec-12
01-Jan-13
01-Feb-13

SKPIMCS-GANDHINAGAR

Itrest rate

Sensex

Sectorial Indices

3.31
3.31
3.1
3.23
3.39
3.14
3.23
3.31
3.67
4
4.42
4.37
7.68
4.16
5.19
5.28
5.74
6.07
6.27
6.85
6.94
7.19
7.19
7.14
7.31
11.47

12.74
29.1
0.95
6.31
1.61
4.84
-4.77
4.63
0.53
-2.16
0.44
7.4
20.14
-0.49
-3.96
4.22
1.67
0.73
11.37
-2.02
-4.47
7.17
10.03
-3.78
6.3
5.81

12.73
42.62
0.68
1.82
-0.73
8.29
-1.04
4.35
-1.8
1.12
1.3
5.22

7.52
8.19
8.19
8.39
8.39
8.44
8.65
8.81
8.48
8.81
9.06
9.02
16.54

1.7
-4.55
2.72
-0.24
-12.91
3.82
8.21
-11.85
-1.53
11.57
4
-2.9
-1.2

1.17
-4.55
3.18
0.44
-12.69
4.19
3.81
-11.1
-5.3
19.26
4.97
-1.63

8.44
8.39
8.31
8.23
8.23
8.14
8.14
8.19
8.1
7.94
8.1

-1.55
-5.35
7.47
-3.39
4.17
6.96
-0.43
3.52
0.54
3.39
-2.35

-0.57
-4.72
6.26
-2.31
-0.59
10.61
0.41
3.75
2.71
-7.05
-2.87

2.7
-1.12
1.5
5.32
3.86
10.9
0.74
-3.23
0.73
-9.41
-0.29
5.24

01-Mar-13

8.19
16.63

2013-14
01-Apr-13
01-May-13
01-Jun-13
01-Jul-13
01-Aug-13
01-Sep-13
01-Oct-13
01-Nov-13
01-Dec-13
01-Jan-14
01-Feb-14
01-Mar-14

7.96
7.31
7.48
11.26
12.02
9.57
8.6
8.94
8.73
8.9
9.19
8.94
16.9
Risk free return= Average of Interst rate

-2.49
-4.04

-4.93

2.39
2.46
-1.84
1.82
5.17
4.82
7.29
-1.76
1.82
-3.1
2.96
5.78
8.17

8.05
-0.57
-5.04
-7.86
-10.77
5.51
12.97
-2.73
2.13
-6.05
3.88
15.73

13.844
Risk free premium=Average of indeces value of sensex
5.776

50

40

30

20

Itrest rate
Sensex

10

-10

-20

SKPIMCS-GANDHINAGAR

Sectorial Indices

Industry Analysis:
Economic factor With Consumer durable Index

1. Consumer durable index Return Compared with Forex Return in Indian Equity Market.

Interpretation:In Forex Return and Consumer durable Index Return not have the same pattern so we can
say that if Consumer durable Index return change than no impact on Forex Return in Indian
Equity Market.
.

SKPIMCS-GANDHINAGAR

2. Consumer durable Index Return Compared with Inflation Rate in Indian Equity Market.

Interpretation:In Consumer Durable Index Return and Inflation Rate not have the same pattern in Indian
Equity Market, so we can say that if Consumer Durable Index returns change than no impact
on Inflation Rate in Indian Equity Market.

SKPIMCS-GANDHINAGAR

3. Consumer durable Index Return Compared with GDP Return in Indian Equity Market

Interpretation:In Consumer Durable Index Return and GDP Return have the same pattern in Indian Equity
Market, so we can say that if Consumer Durable Index returns change than there is impact on
Inflation Rate in Indian Equity Market.

SKPIMCS-GANDHINAGAR

4. CON. DUR. Return Compared with Exchange Rate Return in Indian Equity Market

Interpretation:In Consumer Durable Index Return and Exchange Rate Return have the same pattern in
Indian Equity Market, so we can say that if Consumer Durable Index returns change than
there is impact on Exchange Rate Return in Indian Equity Market.

SKPIMCS-GANDHINAGAR

5. CON. DUR. Index Return and Interest Rate in Indian Equity Market

Interpretation:In interest rate and Consumer Durable Index Return not have the same pattern in Indian
Equity Market so we can say that if interest rate Change than their no impact on Consumer
Durable Index Return in Indian Equity Market.

SKPIMCS-GANDHINAGAR

Company Analysis:We have done a Fundamental Analysis of 08 Companies:

1. 3M INDIA LTD
2. BPL LTD
3. GELLETTE INDIA LTD
4. HAVELLS INDIA LTD
5. BHARAT ELECTRONIC LTD
6. ASIAN ELECTRONIC LTD
7. DIGITAL ELECTRONIC LTD
8. JCT ELECTRONIC LTD

SKPIMCS-GANDHINAGAR

RETURN ON EQUITY
2014

2013

2012 2011

2010

2009

EQUITY
EARNING

42.99 52.27

64.77 98.81 92.84

42.99

EQUITY

11.27 11.27

11.27 11.27 11.27

11.27

ANSWER

3.814552 9.528

9.869 16.68 10.15 10.47999

BOOK VALUE PER SHARE

2014
SHARE
CAPITAL &
RESERVE
SURPLUS
EQUITY
CAPITAL
ANSWER

2012

2011

11.27
11.27
11.27
688.16
645.17
592.91
11.27
11.27
11.27
72.33122449 68.51667 63.87958

DIVIDENT PAY OUT RATIO

2014
2013 2012 2011
0
0
0
0

EQUITY
EARNING

11.27

ANSWER

11.27

11.27

2010

11.2
7 528.13
11.27
58.13158

11.27
429.33
11.27
49.36494

EARNING PER SHARE

2013
2012
52.27
64.77
11.27
11.27
46.4
57.5

2014
42.99
11.27
38.16

EQUITY
NUMBER
OF O/S
EARNING
ANSWER

EQUITY
DIVIDENDS

2013

2010
0

11.27 11.27

GROWTH RATE
RETENTION
RATIO
RETURN
ON EQUITY
ANSWER

2014
2
20
013
12 1
1
1
11.27

SKPIMCS-GANDHINAGAR

11.27

11.27

20
11 1
11.27

20

AVERAGE

10 1
11.27
11.27

2011
98.81
11.27
87.71

2010
92.84
11.27
82.41

BPL LTD.
RETURN ON EQUITY
2014

2013

2012

2011

2010

EQUITY EARNING

-8.38

57.98

75.55

-2.15

3.94

EQUITY

70.26

197.58

208.06

146.31

68.01

ANSWER

-0.11927128

0.29345075

0.36311641

-0.01469483

0.0579327

EARNING PER SHARE

EQUITY EARNING
NUMBER OF
OUTSTANDING
SHARES
ANSWER

2014
70.26

2013
197.58

2012
208.28

2011
146.69

2010
19.5

10

10

10

10

10

7.026

19.758

20.828

14.669

1.95

BOOK VALUE PER SHARE

SHARE CAPITAL
RESERVE &
SURPLUS
EQUITY CAPITAL
ANSWER

2014
48.89
21.37

2013
48.89
148.69

2012
48.67
159.39

2011
48.51
97.8

2010
48.51
19.5

10
51.027

10
63.759

10
64.609

10
58.29

10
50.46

DIVIDEND PAYOUT RATIO

2014
2013
2012
2011

20
10

EQUITY
DIVIDENDS
EQUITY
EARNING
ANSWER

0
70.26
0

197.58

208.06

146.31

GROWTH RATE
SKPIMCS-GANDHINAGAR

0
68.01
0

2014
RETENTION
RATIO

2013

2012

2011

2010 AVERAGE

RETURN
ON EQUITY

0.119271 0.2934508 0.3631164 0.0146948 0.05793266

ANSWER

0.119271 0.2934508 0.3631164 0.0146948 0.05793266 0.012267724

PROFIT EARNING RATIO

2014

2013

2012

2011

1.32

1.25

1.8

-17.44

-17.4496

-20.8197

PE RATIO

2010
-20.82 Prospective
-

1.256684

SKPIMCS-GANDHINAGAR

1.814014

Retrospective

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

RETURN ON EQUITY
2014
EQUITY EARNING
51.42
EQUITY
643.46
ANSWER
0.07991173

2013
2012
87.16
75.73
649.23
619.26
0.13425134 0.12229112

2011
86.15
600.34
0.14350202

2010
137.09
570.99
0.24009177

EARNING PER SHARE

2014
2013
2012
2011
2010
51.42
87.16
75.73
86.15
137.09
3.25855513 3.25831776 3.25860585 3.25832073 3.258617
15.78
26.75
23.24
26.44
42.07

EQUITY EARNING
NUMBER OF O/S
ANSWER

BOOK VALUE PER SHARE

2014
SHARE
CAPITAL
RESERVE &
SURPLUS
EQUITY
CAPITAL
ANSWER

2013

2012

2011

2010

32.59

32.59

32.59

32.59

32.59

610.87

610.87

610.87

610.87

610.87

3.258555 3.258318 3.258606 3.258321 3.258617

197.4679 197.4823 197.4648 197.4821 197.4641

DIVIDEND PAYOUT RATIO

2014
EQUITY
DIVIDENT
EQUITY
SKPIMCS-GANDHINAGAR

150
643.46

2013

2012

150

150

649.23

619.26

2011

201
0
150
150
600.34
570.99
Page 30

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

EARNING
ANSWER

0.23311472 0.231043 0.242225 0.249858 0.262702

GROWTH RATE
2014

201
3

201
2

201

2010 AVERAGE

RETENTION 0.76688528 0.768957 0.757775 0.750142 0.737298

RATIO
RETURN
0.07991173 0.134251 0.122291 0.143502 0.240092
ON EQUITY
ANSWER

0.06128313 0.103234 0.092669 0.107647 0.177019

0.10837

PROFIT EARNING RATIO

2014
0.206499

2013
0.121806

2012
0.140215

2011
0.123235

0.121815

0.140203

0.123245

0.07745

2010
0.077457 Prospective

PE RATIO

SKPIMCS-GANDHINAGAR

Retrospective

Page 31

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

RETURN ON EQUITY
2014

2013

2012

2011

2010

478.69

371.39

305.43

242.05

228.16

EQUITY

2,129.85

1,870.22

1,608.32

1,340.81

1,134.08

ANSWER

0.224753 0.198581 0.189906 0.180525 0.201185

EQUITY
EARNING

BOOK VALUE PER SHARE

2014
62.39

2013
62.39

2012
62.39

2011
62.39

2010
30.08

2,067.46

1,807.83

1,545.93

1,278.42

1,104.00

EQUITY
CAPITAL

12.48214

12.4795 12.47672

ANSWER

170.6318 149.8634 128.9057 107.4643 188.4831

SHARE
CAPITAL
RESERVE &
SURPLUS

12.4768 6.016878

DIVIDEND PAYOUT RATIO

2014
EQUITY
DIVIDENT
EQUITY
EARNING
ANSWER

SKPIMCS-GANDHINAGAR

187.23
478.69

2013

2012

2011

201

93.58
371.39

81.1
305.43

31.19 0 23.12
242.05
228.16

0.39112996 0.251972 0.265527 0.128858 0.101332

Page 32

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

EARNING PER SHARE

2014
478.69

EQUITY
EARNING
NUMBER OF
O/S

12.482138

ANSWER

38.35

2013
371.39

2012
305.43

2011
242.05

12.4795 12.47672
29.76

2010
228.16

12.4768 6.016878

24.48

19.4

37.92

GROWTH RATE
2014

201
3

201
2

201

2010 AVERAGE

RETENTION 0.60887004 0.748028 0.734473 0.871142 0.898668

RATIO
RETURN
0.22475292 0.198581 0.189906 0.180525 0.201185
ON EQUITY
ANSWER

0.13684532 0.148544 0.139481 0.157263 0.180799

2014

PROFIT EARNING RATIO

2013
2012

0.073152

0.083273

0.09679

0.08329

0.096811

0.116101

2011

0.152586

2010

0.116102 0.031923 Prospective

PE RATIO

SKPIMCS-GANDHINAGAR

0.066196

Retrospective

Page 33

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

BHARAT ELECTRONIC LTD

Return on
Equity

3 factor
method

5 factor
method

ROE =

dividend
pay out
ratio
b

PAT/Equity
2014
2013
0.132762 0.14116

2011
0.172205

2010
0.165882

(PAT/Sales)*(sales/assets)*(assets/equity)
2014
2013
2012
2011
0.132762 0.14116
0.147611 0.172205

2010
0.165882

(PBIT/sales)*(sales/assets)*(PBT/PBIT)*(PAT/PBT)*(assets/networth)
2014
2013
2012
2011
2010
0.132762 0.14116
0.147611 0.172205 0.165882

EPS/book value per share

2014
2013
2012
0.132762 0.14116
0.147611

2011
0.172205

2010
0.165882

Equity dividend/equity earnings

2013
2012
2011
0.200082 0.200488 0.200506

2010
0.200587

2009
0.213076

0.799918

DPR*ROE
Growth rate 0.106198
Expected PE 7.885912
ratio
7.532417
D1/Ke-G
P0
po

2012
0.147611

0.799512

0.799494

0.799413

0.786924

0.112859
7.595527

0.118014
6.52656

0.137663
6.939518

0.130537

7.08406

6.774436
m*EPS1
2501.853

5.807207

9.620792

Prospective

8.984219
18.60501

Retrospective
weighted p/e

-36.7281

SKPIMCS-GANDHINAGAR

Page 34

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

Date

Open

High

Low

Close

Date

Open

2014

1028.35 2320

895

2082.75

2014

5834.73 9833.67 5263.48 9385.03

2013

1325

990

1023.8

2013

7726.84 7991.67 5358.18 5821.34

2012

1345.05 1665.75

1124.6

1304.1

2012

5284.33 8221.12 5284.33 7719.1

2011

1792

1887.9

1293

1347.55

2011

6356.97 7096.91 5083.81 5284.33

2010

1944.9

2252

1602

1751.45

2010

3792.07 7369.77 3692.85 6356.97

2009

764

1958

725

1934.6

2009

1912.62 3965.73 1428.75 3785.39

0.041073

1375

High

Low

Rf +(RmRf)
5.49287816

SKPIMCS-GANDHINAGAR

Page 35

Close

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

ASIAN ELECTRONIC LTD

PAT/Equity
Return on Equity

2013

2012

2011

2010

2009

-0.5475

-3.083

-0.4875

0.0126

-0.0268

(PAT/Sales)*(sales/assets)*(assets/equity)
3 factor method

2013

2012

2011

2010

2009

-0.5475

-3.083

-0.4875

0.0126

-0.0268

(PBIT/sales)*(sales/assets)*(PBT/PBIT)*(PAT/PBT)*(assets/networth)
5 factor method

2014

2013

2012

2011

2010

-0.5475

-3.083

-0.4875

0.0126

-0.0268

EPS/book value per share

ROE =

2013

2012

2011

2010

2009

-0.5475

-3.083

-0.4875

0.0126

-0.0268

Equity dividend/equity earnings

2013

2012

2011

2010

2009

dividend pay out ratio

-0.0268

DPR*ROE
Growth rate

-0.5475

-3.083

-0.4875

0.0126

Expected PE ratio

-0.1905

0.5053
0.3242

47.7708

37.3692
75.9062

-1.8241
D1/Ke-G
P0

SKPIMCS-GANDHINAGAR

-2.0509
m*EPS1

-9.5328

Prospective

17.15245 Retrospective
7.61965

weighted p/e

-30.7072

Page 36

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

DIGITAL ELECTRONIC LTD

Return on Equity

3 factor method

5 factor method

ROE =

dividend pay out ratio

b

Growth rate
Expected PE ratio

P0

SKPIMCS-GANDHINAGAR

PAT/Equity
2013
2012
2011
-0.18988 -0.00739
0.16436

2010
2009
0.012627 0.043299

(PAT/Sales)*(sales/assets)*(assets/equity)
2013
2012
2011
2010
2009
-0.18988 -0.00739 0.012627 0.043299
0.16436
(PBIT/sales)*(sales/assets)*(PBT/PBIT)*(PAT/PBT)*(assets/networth)
2014
2013
2012
2011
2010
-0.18988 -0.00739 0.012627 0.043299
0.16436
EPS/book value per share
2013
2012
2011
-0.18988 -0.00739
0.16436
Equity dividend/equity
earnings
2013
2012
2011
0
0
0
1
1
1
DPR*ROE
-0.18988 0.16436
-5.10841 -113.19
-5.27401 6.07701
D1/Ke-G

-0.00739

2010
2009
0.012627 0.043299

2010
0
1

2009
0
1

0.012627 0.043299

79.19151 23.45789
-131.816 79.79305

0.75606 Prospective
14.67425 Retrospective

m*EPS1
-2029.86

15.43031 weighted p/e

Page 37

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

JCT ELECTRONIC LTD

PAT/Equity
Return on Equity

2013

2012

2011

2010

2009

0.130069

0.119388

0.170168

0.065036

0.043956

(PAT/Sales)*(sales/assets)*(assets/equity)
3 factor method

2013

2012

2011

2010

2009

0.130069

0.119388

0.170168

0.065036

0.043956

(PBIT/sales)*(sales/assets)*(PBT/PBIT)*(PAT/PBT)*(assets/networth)
5 factor method

2014

2013

2012

2011

2010

0.130069

0.119388

0.170168

0.065036

0.043956

EPS/book value per share

ROE =

2013

2012

2011

2010

2009

0.130069

0.119388

0.170168

0.065036

0.043956

Equity dividend/equity earnings

2013

2012

2011

2010

2009

dividend pay out ratio

0.043956

DPR*ROE
Growth rate

0.130069

0.119388

0.170168

0.065036

Expected PE ratio

9.666667

6.708861

18.68

24.1875

15.71354

Prospective

7.708861

8.412698

5.911392

15.48

11.57886

Retrospective

27.2924

weighted p/e

D1/Ke-G
P0

SKPIMCS-GANDHINAGAR

m*EPS1
-22.4344

Page 38

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

SKPIMCS-GANDHINAGAR

Page 39