Security Analysis and Portfolio Management – BMT6135

Digital assignment – 1

Submitted to
Dr. Subhendu kumar pradhan
Professor, VITBS

Submitted By
Gokulakrishnan S
20MBA0061
The company I have chosen for this assignment is HCL Technologies
About the company
HCL Technologies is an Indian multinational information technology (IT) services and
consulting company, headquartered in Noida, Uttar Pradesh, India. It is a subsidiary of HCL
Enterprise. Originally a research and development division of HCL, it emerged as an
independent company in 1991 when HCL entered into the software services business. The
company has offices in 50 countries including United Kingdom, United States, France, and
Germany with a worldwide network of R&D, "innovation labs" and "delivery centres", over
168,000 employees and its customers include 250 of the Fortune 500 and 650 of the Global
2,000 companies.

Revenue - 76306 Crores

Employees – 168907
Current stock price – 1163.70 INR | - 3.75 | - 0.32%

1. Calculate the daily returns of a selected company using their share price
from 2010 to till present.
To calculate the daily return, we can perform the calculation by: subtract the opening price
from the closing price. Then, dividing the result by the opening price to calculate the returns
of the selected company data.
Formula for calculating returns:
𝑴𝒐𝒏𝒕𝒉𝒍𝒚 𝒓𝒆𝒕𝒖𝒓𝒏𝒔 = 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒑𝒓𝒊𝒄𝒆− 𝒑𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒑𝒓𝒊𝒄𝒆 / 𝒑𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒑𝒓𝒊𝒄𝒆

Monthly returns and Market Index of HCL Technologies

Date Share Returns Market 01-02-

price index Returns 2016 391.8025 0.012455 7563.55 -0.04817
01-07- 81.61516 - 01-02-
2010 5367.6 - 2016 370.6951 -0.05387 6987.05 -0.07622
01-08- 79.60705 -0.0246 01-03-
2010 5402.4 0.006483 2016 371.0825 0.001045 7738.4 0.107535
01-09- 87.55631 0.099856 01-04-
2010 6029.95 0.116161 2016 342.0013 -0.07837 7849.8 0.014396
01-10- 84.02909 -0.04029 01-05-
2010 6017.7 -0.00203 2016 337.2152 -0.01399 8160.1 0.03953
01-11- 84.51748 0.005812 01-06-
2010 5862.7 -0.02576 2016 335.6857 -0.00454 8287.75 0.015643
01-12- 95.50739 0.130031 01-07-
2010 6134.5 0.046361 2016 346.0258 0.030803 8638.5 0.042321
01-01- 102.7293 0.075616 01-08-
2011 5505.9 -0.10247 2016 357.7906 0.034 8786.2 0.017098
01-02- 92.99092 -0.0948 01-09-
2011 5333.25 -0.03136 2016 370.3224 0.035026 8611.15 -0.01992
01-03- 100.452 0.080235 01-10-
2011 5833.75 0.093845 2016 353.3085 -0.04594 8638 0.003118
01-04- 109.542 0.090491 01-11-
2011 5749.5 -0.01444 2016 374.9727 0.061318 8224.5 -0.04787
01-05- 108.6154 -0.00846 01-12-
2011 5473.1 -0.04807 2016 386.2387 0.030045 8185.8 -0.00471
01-06- 104.3852 -0.03895 01-01-
2011 5647.4 0.031847 2017 378.4015 -0.02029 8561.3 0.045872
01-07- 102.7078 -0.01607 01-02-
2011 5482 -0.02929 2017 391.9067 0.03569 8879.6 0.037179
01-08- 346.8183 2.376747 01-03-
2011 5001 -0.08774 2017 411.1118 0.049004 9173.75 0.033127
01-09- 86.32481 -0.7511 01-04-
2011 4943.25 -0.01155 2017 382.6077 -0.06933 9304.05 0.014204
01-10- 93.62492 0.084566 01-05-
2011 5326.6 0.07755 2017 406.1771 0.061602 9621.25 0.034093
01-11- 81.3716 -0.13088 01-06-
2011 4832.05 -0.09285 2017 402.6966 -0.00857 9520.9 -0.01043
01-12- 82.25148 0.010813 01-07-
2011 4624.3 -0.04299 2017 422.5734 0.049359 10077.1 0.058419
01-01- 92.78867 0.128109 01-08-
2012 5199.25 0.124332 2017 409.5114 -0.03091 9917.9 -0.0158
01-02- 103.3102 0.113392 01-09-
2012 5385.2 0.035765 2017 414.9483 0.013277 9788.6 -0.01304
01-03- 102.948 -0.00351 01-10-
2012 5295.55 -0.01665 2017 405.936 -0.02172 10335.3 0.055851
01-04- 109.0834 0.059596 01-11-
2012 5248.15 -0.00895 2017 402.2361 -0.00911 10226.55 -0.01052
01-05- 107.8058 -0.01171 01-12-
2012 4924.25 -0.06172 2017 423.3848 0.052578 10530.7 0.029741
01-06- 101.9027 -0.05476 01-01-
2012 5278.9 0.072021 2018 469.0514 0.107861 11027.7 0.047195
01-07- 110.907 0.088362 01-02-
2012 5229 -0.00945 2018 447.9495 -0.04499 10492.85 -0.0485
01-08- 116.4358 0.049851 01-03-
2012 5258.5 0.005642 2018 461.4313 0.030097 10113.7 -0.03613
01-09- 123.5045 0.060709 01-04-
2012 5703.3 0.084587 2018 501.5195 0.086878 10739.35 0.061862
01-10- 130.0385 0.052905 01-05-
2012 5619.7 -0.01466 2018 433.6816 -0.13526 10736.15 -0.0003
01-11- 141.3524 0.087004 01-06-
2012 5879.85 0.046292 2018 442.2174 0.019682 10714.3 -0.00204
01-12- 133.2136 -0.05758 01-07-
2012 5905.1 0.004294 2018 460.7654 0.041943 11356.5 0.059939
01-01- 148.1347 0.112009 01-08-
2013 6034.75 0.021956 2018 499.6042 0.084292 11680.5 0.02853
01-02- 156.1995 0.054442 01-09-
2013 5693.05 -0.05662 2018 520.4094 0.041643 10930.45 -0.06421
01-03- 171.6597 0.098977 01-10-
2013 5682.55 -0.00184 2018 505.0048 -0.0296 10386.6 -0.04976
01-04- 155.7677 -0.09258 01-11-
2013 5930.2 0.043581 2018 486.5688 -0.03651 10876.75 0.047191
01-05- 161.2692 0.035319 01-12-
2013 5985.95 0.009401 2018 462.2882 -0.0499 10862.55 -0.00131
01-06- 168.0135 0.04182 01-01-
2013 5842.2 -0.02401 2019 481.8709 0.04236 10830.95 -0.00291
01-07- 202.9911 0.208183 01-02-
2013 5742 -0.01715 2019 505.2166 0.048448 10792.5 -0.00355
01-08- 225.2702 0.109754 01-03-
2013 5471.8 -0.04706 2019 522.2996 0.033813 11623.9 0.077035
01-09- 235.3921 0.044933 01-04-
2013 5735.3 0.048156 2019 568.36 0.088188 11748.15 0.010689
01-10- 237.1568 0.007497 01-05-
2013 6299.15 0.098312 2019 524.7491 -0.07673 11922.8 0.014866
01-11- 235.5668 -0.0067 01-06-
2013 6176.1 -0.01953 2019 512.3085 -0.02371 11788.85 -0.01123
01-12- 273.8628 0.162569 01-07-
2013 6304 0.020709 2019 497.8245 -0.02827 11118 -0.05691
01-01- 318.8038 0.1641 01-08-
2014 6089.5 -0.03403 2019 529.4874 0.063602 11023.25 -0.00852
01-02- 344.4742 0.080521 01-09-
2014 6276.95 0.030783 2019 520.9551 -0.01611 11474.45 0.040932
01-03- 304.0592 -0.11732 01-10-
2014 6704.2 0.068066 2019 560.5596 0.076023 11877.45 0.035122
01-04- 306.7265 0.008772 01-11-
2014 6696.4 -0.00116 2019 544.5878 -0.02849 12056.05 0.015037
01-05- 311.0123 0.013973 01-12-
2014 7229.95 0.079677 2019 548.7168 0.007582 12168.45 0.009323
01-06- 328.9028 0.057523 01-01-
2014 7611.35 0.052753 2020 571.2219 0.041014 11962.1 -0.01696
01-07- 340.9504 0.03663 01-02-
2014 7721.3 0.014445 2020 517.8476 -0.09344 11201.75 -0.06356
01-08- 357.5365 0.048647 01-03-
2014 7954.35 0.030183 2020 422.9225 -0.18331 8597.75 -0.23246
01-09- 378.8769 0.059687 01-04-
2014 7964.8 0.001314 2020 526.7634 0.245532 9859.9 0.1468
01-10- 355.3787 -0.06202 01-05-
2014 8322.2 0.044872 2020 533.2566 0.012327 9580.3 -0.02836
01-11- 368.7779 0.037704 01-06-
2014 8588.25 0.031969 2020 539.6527 0.011994 10302.1 0.075342
01-12- 354.2583 -0.03937 01-07-
2014 8282.7 -0.03558 2020 683.4211 0.266409 11073.45 0.074873
01-01- 397.484 0.122017 01-08-
2015 8808.9 0.06353 2020 675.0313 -0.01228 11387.5 0.028361
01-02- 448.5629 0.128506 01-09-
2015 8844.6 0.004053 2020 788.9622 0.168779 11247.55 -0.01229
01-03- 436.8253 -0.02617 01-10-
2015 8491 -0.03998 2020 820.7403 0.040278 11642.4 0.035105
01-04- 392.3363 -0.10185 01-11-
2015 8181.5 -0.03645 2020 805.0875 -0.01907 12968.95 0.113941
01-05- 452.3698 0.153015 01-12-
2015 8433.65 0.03082 2020 926.5704 0.150894 13981.75 0.078094
01-06- 411.6419 -0.09003 01-01-
2015 8368.5 -0.00773 2021 895.0856 -0.03398 13634.6 -0.02483
01-07- 446.7753 0.085349 01-02-
2015 8532.85 0.019639 2021 894.2093 -0.00098 14529.15 0.065609
01-08- 434.6018 -0.02725 01-03-
2015 7971.3 -0.06581 2021 966.1827 0.080488 14690.7 0.011119
01-09- 441.9053 0.016805 01-04-
2015 7948.9 -0.00281 2021 883.8853 -0.08518 14631.1 -0.00406
01-10- 392.2097 -0.11246 01-05-
2015 8065.8 0.014706 2021 939.5305 0.062955 15582.8 0.065046
01-11- 394.1558 0.004962 01-06-
2015 7935.25 -0.01619 2021 977.6008 0.040521 15721.5 0.008901
01-12- 386.9828 -0.0182 01-07-
2015 7946.35 0.001399 2021 1018.802 0.042145 15763.05 0.002643
 01-08-
2021 1167.45 0.145905 16634.65 0.055294
26-08-
2021 1167.45 0 16636.9 0.000135

Formula for calculating average returns:

𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝒓𝒆𝒕𝒖𝒓𝒏𝒔 = 𝒔𝒖𝒎 𝒐𝒇 𝒕𝒉𝒆 𝒓𝒆𝒕𝒖𝒓𝒏𝒔 / 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒓𝒆𝒕𝒖𝒓𝒏𝒔
The Average rate of returns for Hcl Technologies is 0.036228 ÷ 133 which equals to
0.000272 it is the probability of rate of returns for 2010 – Present. Then its Average rate of
returns for Market Index is 0.009792 ÷ 133 which equal to 7.3624, this is the expected rate of
rate of returns for Redington for 2010 – Present.
From the calculating the expected return is 0.026 percent high than the probability of the
returns HCL is making.