Manufacturing Company Financial Analysis and Co-Relating With Their Stock Prices

Capital & Money Market
Roll No. 2010G10
Manufacturing Company Financial Analysis and co-relating

with their stock prices
Page 1
Roll No. 2010G10
Executive Summary...................................................................................................4
Voltas Ltd...................................................................................................................5
Company profile:.....................................................................................................5
Cost of Carrying for Jan 2011 to Sept 2011:............................................................5
Analysis:..................................................................................................................5
TVS Motors Company Limited.....................................................................................6
Company profile:.....................................................................................................6
Analysis:..................................................................................................................7
Titan Industries Limited..............................................................................................8
Company profile:.....................................................................................................8
Analysis:..................................................................................................................8
TATA Steel Ltd..........................................................................................................10
Company profile:...................................................................................................10
Cost of Carrying for Jan 2011 to Sept 2011:..........................................................10
Analysis:................................................................................................................10
Suzlon Energy Ltd.....................................................................................................11
Company profile:...................................................................................................11
Analysis:................................................................................................................11
Siemens Ltd..............................................................................................................13
Company profile:...................................................................................................13
Analysis:................................................................................................................14
Reliance Power Limited............................................................................................15
Company profile:...................................................................................................15
Analysis:................................................................................................................15
Larsen & Toubro Limited..........................................................................................16
Company profile:...................................................................................................16
Page 2
Roll No. 2010G10

Analysis:................................................................................................................17
Jindal Steel & Power Limited.....................................................................................18
Company profile:...................................................................................................18
Analysis:................................................................................................................18
Godrej Consumer Products Limited..............................................................................19
Company profile:...................................................................................................19
Analysis:................................................................................................................20
GlaxoSmithKline Pharmaceuticals Limited...............................................................21
Company profile:...................................................................................................21
Analysis:................................................................................................................21
Dr. Reddy's Laboratories Limited.............................................................................22
Company profile:...................................................................................................22
Analysis:................................................................................................................22
Bibliography.............................................................................................................23
Bibliography
Page 3
Roll No. 2010G10
Executive Summary
This Project report is to calculate cost of carry for 12 Indian manufacturing
companies which are listed on India Stock Exchange for period Jan 2011 to Sept
2011.
Below listed companies are used in the report to do the analysis.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Voltas Ltd
TVS Motors Company Limited
Titan Industries Limited
TATA Steel Ltd
Suzlon Energy Ltd
Siemens Ltd
Reliance Power Limited
Larsen & Toubro Limited
Jindal Steel & Power Limited
Godrej Consumer Products Limited
GlaxoSmithKline Pharmaceuticals Limited
Dr. Reddy's Laboratories Limited
What is cost of carry?

The cost of carry is the cost of "carrying" or holding a position. If long, the cost of carry is the
cost of interest paid on a margin account. Conversely, if short, the cost of carry is the cost of
paying dividends, or rather the opportunity cost; the cost of purchasing a particular security
rather than an alternative. For most investments, the cost of carry generally refers to the riskfree interest rate that could be earned by investing currency in a theoretically safe investment
vehicle such as a money market account minus any future cash-flows that are expected from
holding an equivalent instrument with the same risk (generally expressed in percentage terms
and called the convenience yield). Storage costs (generally expressed as a percentage of the
spot price) should be added to the cost of carry for physical commodities such as corn, wheat,
or gold.
The cost of carry model expresses the forward price (or, as an approximation, the futures price)
as a function of the spot price and the cost of carry.
Where,
F - Forward price,
S - Spot price,
Page 4
Roll No. 2010G10
r - risk-free interest rate,

s -storage cost,
c - Convenience yield,
t- Time to delivery
Page 5
Roll No. 2010G10
Voltas Ltd
Company profile:
Voltas Limited is an engineering solutions provider and project specialist. The Company offers
engineering solutions for a range of industries in areas, such as heating, ventilation and air conditioning,
refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials
handling equipment, water management and treatment, cold chain solutions, building management
systems, and indoor air quality. Business segments of Voltas are: Electro-mechanical Projects and
Services, Engineering Products and Services, Unitary Cooling Products for Comfort and Commercial use,
and Others. Others Segment consists of Lalbuksh Voltas Engineering Services & Trading LLC (Lalvol), a
Joint Venture company (JVC), in Sultanate of Oman, engaged in horticulture, water management and
purification. As of March 31, 2011, the Company held 60% interest in Lalbuksh Voltas Engineering
Services & Trading L.L.C
Cost of Carrying for Jan 2011 to Sept 2011:
Month
Jan-11
Feb-11
Mar11
Apr-11
May11
Jun-11
Jul-11
Aug11
Sep11
Future
Spot
Cost of
Expiry
Price
Price
Carry
31-Mar11
215.54
211.05
4.49
31-Mar11
173.47 171.625
1.845
31-Mar11
162.6
162.1
0.5
30-Jun-11
179.25
176.01
3.24
30-Jun-11
30-Jun-11
29-Sep11
29-Sep11
29-Sep11
166.27
162.89
164.79
162.31
1.48
0.58
158.15
155.24
2.91
126.16
125.47
0.69
120.2
119.6
0.6
Analysis:
TVS Motors Company Limited

Company profile:
TVS Motor Company is a two-wheeler manufacturer in India. The Company manufactures a
range of two-wheelers from mopeds to racing motorcycles. The Companys products include mopeds,
motorcycles and scooters, three wheelers and its parts. Its motorcycles products include Apache RTR
Page 6
Roll No. 2010G10
180, Flame DS 125, Flame, TVS Jive, StaR City, Sports. Variomatic Scooters products include TVS
Wego, Scooty Streak, Scooty Pep+, Scooty Teenz. Mopeds products include TVS XL Super, TVS XL
Heavy Duty. During the fiscal year ended March 31, 2011 (fiscal 2011), the Company launched TVS
Apache RTR 180, Scooty Pep+ and TVS Max4R. During fiscal 2011, the Company launched a customer
service initiative TVS Service Anytime Anywhere (24x7). During the year, the Company sold 39,257 three
wheelers; 832,567 motorcycles; 704,557 mopeds, and 466,206 scooters. The Company has exported
three wheelers to 18 countries. On June 21, 2010, TVS Housing Limited became a wholly owned
subsidiary of the Company

Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Expiry
31-Mar11
31-Mar11
31-Mar11
30-Jun11
30-Jun11
30-Jun11
29-Sep11
29-Sep11
29-Sep11
Future
Price
Spot
Price
Cost of
Carry
63.94
62.24
1.7
51.51
50.98
0.53
56.77
56.25
0.52
60.81
59.63
1.18
53.72
53.17
0.55
53.51
53.3
0.21
52.51
51.49
1.02
53.46
53.06
0.4
60.7
60.62
0.08
Analysis:
Titan Industries Limited

Company profile:
Titan Industries Limited is engaged in manufacturing of watches, jewelry, precision engineering
and Eyewear. The Company has four divisions: watches, jewellery, precision engineering and eyewear.
As of March 31, 2011, the Company had 311 World of Titan stores. The Company sold its products
through departmental stores, such as Shoppers Stop, Central, Lifestyle, Westside, Pantaloons and
Reliance Retail. During the fiscal year ended March 31, 2011, the Company launched collection of
watches, such as Purple by Titan, an offering of fashion watches; Raga Aqua, a new collection whose
Page 7
Roll No. 2010G10
evocative designs were inspired by the oceans and seas; Tycoon by Titan, a new collection of gold look
watches; and new products in the automatic watches range, which cater to premium consumers. As of
March 31, 2011, the Company had 120 Tanishq stores, 29 Gold Plus stores and two Zoya stores in
jewelry division. As of March 31, 2011, the Company had approximately150 exclusive eyewear stores.

Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Future
Cost of
Expiry
Price
Spot Price Carry
31-Mar11
3578.9
3506.83
72.07
31-Mar11
3348.96
3330.05
18.91
31-Mar11
3521.97
3511.19
10.78
30-Jun11
4048.12
3977.4
70.72
30-Jun11
4082.49
4070.82
11.67
30-Jun11
3291.64
3308.37
-16.73
29-Sep11
227.96
224.9
3.06
29-Sep11
212.6
212.06
0.54
29-Sep11
218.24
217.58
0.66
Analysis:
TATA Steel Ltd

Company profile:
Tata Steel Limited is a diversified steel producer. The Companys operations include
manufacturing of Steel and Ferro Alloys, and Minerals Business. Other business segments consist of
Tubes and Bearings. The Companys principal products include flat rolled products of non alloy steel of a
width of 600 millimeter and more hot rolled coils of thickness 1.66 millimeter to 12 millimeter; tubes/pipes
of circular section with outer diameter upto 114.3 millimeter, not cold rolled, and flat rolled products of iron
or non alloy steel, of a width of 600 millimeter or more, cold rolled (cold-reduced), not clad, plated or
coated of a thickness of 0.5 millimeter or more but less than three millimeter. Tata Steels production
facilities include those in India, the United Kingdom, the Netherlands, Thailand, Singapore, China and
Australia. Effective September 27, 2011, Centennial Steel Company Limited merged with the Company.
Page 8
Roll No. 2010G10

Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Future
Spot
Expiry
Price
Price
CoC
31-Mar11
653.39
651.19
2.2
31-Mar11
625
623.21
1.79
31-Mar11
609.49 608.027
1.463
30-Jun11
632.68
625.98
6.7
30-Jun11
584.31
582.82
1.49
30-Jun11
574.77
573.23
1.54
29-Sep11
591.19
583.29
7.9
29-Sep11
490.36
489.36
1
29-Sep11
460.35
459.98
0.37
Analysis:
Suzlon Energy Ltd

Company profile:
Suzlon Energy Limited (SEL) is an India-based wind power company. The Company is engaged
in the business of design, development, manufacturing and supply of wind turbine generators (WTGs) of
a range of capacities and its components. Its operations relate sale of WTGs and allied activities,
including sale/sub-lease of land, infrastructure development income; sale of gear boxes, and sale of
foundry and forging components. Others primarily include power generation operations. During the fiscal
year ended March 31, 2011, the Company through its wholly owned subsidiary AE-Rotor Holding BV,
acquired an additional 4.86% interest of REpower Systems SE. In October 2011, the Company's indirect
wholly owned subsidiary, AE-Rotor Holding BV closed the sale of 26.06% interest In Hansen
Transmissions International NV. SELs subsidiaries include Suzlon Towers and Structures Limited,
Suzlon Power Infrastructure Limited, Suzlon Infrastructure Services Limited and Suzlon Gujarat Wind
Park Limited.

Future
Spot
Expiry
Price
Price
CoC
31-MarJan-11
11
52.8
51.98
0.82
31-MarFeb-11
11
47.72
47.34
0.38
Month
Page 9
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
31-Mar11
30-Jun-11
30-Jun-11
30-Jun-11
29-Sep11
29-Sep11
29-Sep11
Roll No. 2010G10
46.6
54.6
51.03
50.31
46.31
53.89
50.79
50.16
0.29
0.71
0.24
0.15
51.9
51.25
0.65
41.8
41.91
-0.11
39.43
39.24
0.19
Analysis:
Siemens Ltd
Company profile:
Siemens Limited is an India-based company. The Company has eleven segments: Industry
Automation, Drive Technologies, Building Technologies, Industry Solutions, Mobility, Fossil Power
Generation, Oil & Gas, Power Transmission, Power Distribution, Healthcare and Real Estate. It's
business is grouped into three sectors: industry, energy and healthcare. The product business group of
Industry sector is industry automation (IA), drive technologies (DT) and building technologies (BT)
divisions. The energy sector introduced products, including single phase 500 megavolt ampere high
voltage direct current (HVDC) transformer, the 800 kilovolts circuit breaker, 400 kilovolts, 63 kilovolts
disconnectors. The Healthcare Sector launched two magnetic resonance imaging (MRI) scanners called
MAGNETOM Skyra 3 Tesla system and MAGNETOM Aera 1.5 Tesla system. on January 8, 2010, the
Company acquired the balance 13.85% stake in Siemens Building Technologies Pvt. Ltd. (SBTPL), a
subsidiary of the Company.

Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Future
Expiry
Price
Spot Price CoC
31-Mar11
785.68
768.89
16.79
31-Mar11
850.08
844.81
5.27
31-Mar11
870.02
866.6
3.42
30-Jun11
877.36
865.01
12.35
30-Jun11
867.42
860.02
7.4
Page 10
Jun-11
Jul-11
Aug-11
Sep-11
30-Jun11
29-Sep11
29-Sep11
29-Sep11
Roll No. 2010G10
878.91
875.62
3.29
930.72
913.03
17.69
887.17
881
6.17
860.445
858.08
2.365
Analysis:
Reliance Power Limited

Company profile:
Reliance Power Limited (RPower) is a part of the Reliance Group. The Company is engaged in
the development, construction and operation of power generation projects with a combined capacity of
about 35,000 megawatts. The Company operates in two business segments: Power Generation and
Associated Business Activities. Associated Business Activities includes project management, supervision
and support services for generation and allied processes. The Company's projects include Rosa Phase 1,
Rosa Phase 2, Butibori, Sasan Ultra Mega Power Project, Krishnapatnam Ultra Mega Power Project
Chitrangi Power Project and Tilaiya Ultra Mega Power Project. During the fiscal year ended March 31,
2011, RPower secured three Ultra Mega Power Projects (UMPPs), which are based at Sasan in Madhya
Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand. Reliance Power is also developing
coal bed methane (CBM) blocks to fuel gas based power generation.

Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Future
Spot
Cost of
Expiry
Price
Price
Carry
31-Mar11
149.39
146.17
3.22
31-Mar11
119.69
118.88
0.81
31-Mar11
123.26
122.63
0.63
30-Jun11
133.61
131.23
2.38
30-Jun11
116.52
115.51
1.01
30-Jun11
115.5
115.16
0.34
29-Sep11
117.9
115.96
1.94
29-Sep11
92.14
91.66
0.48
Page 11
Sep-11
29-Sep11
Roll No. 2010G10
81.44
81.07
0.37
Analysis:
Larsen & Toubro Limited

Company profile:
Larsen & Toubro Limited is a technology, engineering, construction and manufacturing company.
The Company operates in three segments Engineering & Construction Segment, Electrical & Electronics
segment, Machinery & Industrial Products, and others. The Companys Engineering, Construction &
Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings,
factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical
and instrumentation engineering disciplines. Its Engineering & Construction Division designs, engineering
and executes projects for hydrocarbon sector with front-end design. Its heavy engineering division is
organized into two independent companies: Heavy Engineering Independent Company and Ship Building
Independent Company. Its Electrical & Electronics division comprises Electrical and Automation
Independent Company and Medical Equipment and Systems business

Future
Cost of
Month Expiry
Price
Spot Price Carry
Jan-11 31-Mar-11
1786.15
1746.42
39.73
Feb-11 31-Mar-11
1589.02
1580.88
8.14
Mar-11 31-Mar-11
1579.9
1575.28
4.62
Apr-11 30-Jun-11
1717.38
1683.12
34.26
May11 30-Jun-11
1585
1572.44
12.56
Jun-11 30-Jun-11
1718.29
1714.22
4.07
Jul-11 29-Sep-11
1825.84
1801.7
24.14
Aug11 29-Sep-11
1621.2
1623.23
-2.03
Sep-11 29-Sep-11
1563.98
1556.19
7.79
Analysis:
Jindal Steel & Power Limited

Page 12
Roll No. 2010G10
Company profile:
Jindal Steel & Power Limited is a sponge iron manufacturer in India. As of March 31, 2011, the
Companys installed capacity at its Raigarh Unit include: 13,70,000 metric tons of sponge Iron; 30,00,000
metric tons of mild steel; 36, 000 metric tons of ferro alloys; 623 megawatts of power; 16,70,000 metric
tons of hot metal/pig iron; 7,50,000 metric tons of rail and universal beam mill; 10,00,000 metric tons of
plate mill, 60,000 metric tons of fabricated structures; 5,00,000 metric tons of cement plant and 6,00,000
metric tons of medium & light section mill. The Companys segments include iron and steel; power, and
others. The Companys manufacturing plants are located at Raigarh in Chhattisgarh, Angul in Orissa and
Patratu in Jharkhand. Its machinery division is located in Raipur. Its coal mines are located at
Dongamahua and Tamnar, Chhattisgarh, iron ore mine at Tensa, Orissa and iron ore pelletisation plant at
Barbil, Orissa.

Future
Cost of
Month Expiry
Price
Spot Price
carry
Jan-11 31-Mar-11
706.71
693.41
13.3
Feb-11 31-Mar-11
652.78
648.39
4.39
Mar11 31-Mar-11
669.48
666.6
2.88
Apr-11
30-Jun-11
700.5
688.46
12.04
May11
30-Jun-11
640.46
635.88
4.58
Jun-11
30-Jun-11
635.69
633.83
1.86
Jul-11 29-Sep-11
642.95
631.3
11.65
Aug11 29-Sep-11
518.14
516.12
2.02
Sep11 29-Sep-11
537.02
536
1.02
Analysis:
Godrej Consumer Products Limited

Company profile:
Godrej Consumer Products Limited (GCPL) is a fast moving consumer goods company. It is
engaged in manufacturing and marketing toilet soaps, hair colour, household insecticides, liquid
detergents, toiletries and others. Its brands include Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet,
Fairglow, Ezee, Protekt and Snuggy. On March 14, 2011, it incorporated Godrej Mauritius Africa Holdings
Limited. Effective May 7, 2010, GCPL incorporated Godrej Indonesia Netherlands Holding BV. On May
17, 2010, it acquired PT. Megasari Makmur Group. On May 28, 2010, it acquired the remaining 51%
interest in Godrej Household Products Ltd. On June 1, 2010, it acquired Laboratoria Cuenca, Consell SA,
Issue Uruguay, Issue Brazil and Argencos. On June 16, 2010, it acquired Tura from the Tura Group.
During the fiscal year ended March 31, 2011, it acquired Naturesse Consumer Care Products Limited and
Essence Consumer Care Products Limited. In September 2011, it acquired 51% interest in Darling Group.
Page 13
Roll No. 2010G10

Month
Expiry
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
31-Mar-11
31-Mar-11
31-Mar-11
30-Jun-11
30-Jun-11
30-Jun-11
29-Sep-11
29-Sep-11
29-Sep-11
Future
Price
187.38
168.19
173.44
191.88
187.15
195.46
224.22
206.5
201.695
Spot
Cost of
Price
carry
182.87
5
4.505
166.48
1.71
172.57
0.87
188.26
3.62
185.24
1.91
194.86
0.6
219.94
4.28
204.88
1.62
200.94
0.755
Analysis:
Page 14
Roll No. 2010G10
GlaxoSmithKline Pharmaceuticals Limited

Company profile:
GlaxoSmithKline Pharmaceuticals Limited is a research-based healthcare and pharmaceutical
company. Its product portfolio includes prescription medicines and vaccines. Its prescription medicines
range across therapeutic areas, such as anti-infectives, dermatology, gynaecology, diabetes, oncology,
cardiovascular disease and respiratory diseases. It also offers a range of vaccines, for the prevention of
hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria, pertussis,
tetanus, rotavirus, cervical cancer and others. During the year ended December 31, 2010, it launched
Mycamine inj (Micafungin) in-licensed from Astellas and Parit D capsules (Rabeprazole in combination
with Domperidone) in-licensed from Eisai, and Modvate 3 cream (Beclomethasone in combination with
Clotrimazole and Neomycin) and Modvate AF cream (Beclomethasone in combination with Clotrimazole)
in Dermatology. During 2010, Cefspan (Cefixime - oral antibiotic) was also relaunched

Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Future
Spot
Cost of
Expiry
Price
Price
Carry
31-Mar11
2366.66
2323.32
43.34
31-Mar11
2227.03
2226.33
0.7
31-Mar11
2104.08
2110.3
-6.22
30-Jun-11
2181.83
2140.96
40.87
30-Jun-11
2345.3
2322.61
22.69
30-Jun-11
2375.1
2367.63
7.47
29-Sep11
2375.37
2330.16
45.21
29-Sep11
2189.32
2168.39
20.93
29-Sep11
2084.57
2077.57
7
Analysis:
Page 15
Roll No. 2010G10
Dr. Reddy's Laboratories Limited

Company profile:
Dr. Reddy's Laboratories Limited (Dr. Reddys) is an integrated pharmaceutical company focused
on providing medicines through its three business segments: Global Generics segment, Pharmaceutical
Services and Active Ingredients (PSAI) segment and Proprietary Products segment. Its Global Generics
segment includes branded and unbranded prescription and over-the-counter (OTC) drug products
business. Its Pharmaceutical Services and Active Ingredients (PSAI) segment consists of its active
pharmaceutical ingredients (API) business and its custom pharmaceutical services business. Its
Proprietary Products segment, which consists of its Generic Biopharmaceuticals business, its New
Chemical Entities (NCEs) business, its Differentiated Formulations business and its dermatology focused
specialty business operated through Promius Pharma.

Month
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Future
Spot
Cost of
Expiry
Price
Price
Carry
31-Mar11
1680.56
1650.26
30.3
31-Mar11 1547.937
1545.22
2.717
31-Mar11
1570.9
1572.18
-1.28
30-Jun-11
1676.81
1646.7
30.11
30-Jun-11
1610.43
1600.55
9.88
30-Jun-11
1550.15
1551.15
-1
29-Sep11
1598.11
1569.58
28.53
29-Sep11
1505.09
1496.99
8.1
29-Sep11
1491.93
1489.81
2.12
Analysis:
Bibliography
http://nseindia.com/
http://www.google.com/finance
http://www.investopedia.com
http://in.finance.yahoo.com/
Page 16
Roll No. 2010G10
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Roll No. 2010G10