FINANCIAL MANAGEMENT ASSIGNMENT

NAME :- ISHA TANK

CLASS :- SYBAF

ROLL.NO. :- 31010220083

INDUSTRY ANALYSIS
1. Threats of new entrants:
1) High capital requirement to run the company.

2) Demand for the quality products, that require maximum efficiency and

effectiveness, which is difficult to attain.

3) Government regulations and restrictions.

4) Patent regulations.

5) Requirement of huge human capital, and research capital.

6) New entrants in Agricultural Chemicals brings innovation, new ways of

doing things

2. Bargaining power of suppliers:

1) Chemical industry mostly depend of few large suppliers for raw

material supply.

2) Substitutes are very limited.

3) Majority of the suppliers are not dependent in supply chain.

4) Small chemical companies rely on supplies from larger plants, or

petrochemical units.

5) Inputs for a chemical plant cannot be easily substituted.

 6) Mostly all the companies in the Agricultural Chemicals industry buy their raw.
material from numerous suppliers. Suppliers in dominant position can decrease the
margins. Powerful suppliers in Basic Materials sector use their negotiating power to extract
higher prices from the firms in Agricultural Chemicals field. The overall impact of higher
supplier bargaining power is that it lowers the overall profitability of Agricultural
Chemicals.

3. Bargaining power of buyers:

1) Customers have multiple sources of supply.

2) Chemical companies are bound by long-term contracts .

3) Bargaining power of the buyers remains moderate, and there is less chances in
increase or decrease in bargaining power, the factors affecting bargaining power are:
Chemicals are the major inputs in the company. Switching cost of the suppliers are more,
because of long term agreements. The chemical products are not highly differentiated. The
chemical industries have more end users.

4) Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. Higher the bargaining power of the customers and
higher their ability to seek increasing discounts and offers.

4. Threats of substitute products or services:

1) Buyers tend to have specific chemical requirements.

2) There are no direct substitutes for a specific chemical requirement.

3) Threat for substitute remains weak, and in long run varies with the demand, the major
factors affecting the substitutes are: The buyers need the same type of chemicals for their
usage. Changing chemical composition involves more R&D costs. Substitutes for the
chemicals are rare.

4) When a new product or service meets a similar customer needs in different ways,
industry profitability suffers. For example services like Dropbox and Google Drive are
substitute to storage hardware drives. The threat of a substitute product or service is high
if it offers a value proposition that is uniquely different from present offerings of the
industry.
 5. Rivalry amony existing competitors:

1) Chemical industry is highly fragmented with intense rivalry amongst companies.

2) Since, 100 per cent FDI is allow hence domestic companies face stiff competition from
foreign competitors as well.

3)International companies may also dump chemicals at low price.

4) The industrial rivals in the chemical industry is high, and have more tendency to
increase, reasons beyond the high rivals are: High competition in gaining market share.
Majority of the players are globally influenced. Economics of scale is high, so more
competition in pricing strategy. Fixed costs are high, maintenance and existing cost are
high.

5) If the rivalry among the existing players in an industry is intense then it will drive
down prices and decrease the overall profitability of the industry.
 COMPANY ANALYSIS:

1. Share holding pattern:

 FII : The FII holdings according to the chart for the year is 37.86% and it is
decreasing from June 2020 (40.56%) to Dec 2020 (35.35%) in March 2021 it is
increasing from 35.35% to 37.82% and again its increasing in jun 2021 and it is
37.86 according to graph.

 DII : The dII holdings according to the chart for the year is 16.18%and it is
increasing from June 2020 (13.18%) to Dec 2020 (16.66%) in March 2021 it is
decreasing from 16.66% to 15.96 % and again it is increasing in June 2021 and it is
16.18% according to graph.
 Public : The Public holdings according to the chart for the year is 18% and it is
increasing from June 2020 (18.4%) to Dec 2020 (20.14%) in March 2021 it is
decreasing from 20.14% to 18.28 % and again it is decreasing in June 2021 and it is
18% according to graph.

 PROMOTER : The promoter holding percentage for the year is 27.96% and it is
decreasing in June 2020 is 27.88% and it is constant in Sep 2020 and then it is again
decreasing in Dec 2020 i.e. 27.85% , in March 2021 it is 27.96% as same as June
2021 according to graph.
 TECHNICAL ANALYSIS

1. DOUBLE TOP AND DOUBLE BOTTOM

 2. HEAD AND SHOULDERS PATTERN
A)
B) INVERTED HEAD AND SHOULDER
3. BEARISH FLAG PATTERN

4. BULLISH FLAG PATTERN

5. CUP AND HANDLE PATTERN
 6) TRIANGLE PATTERN
A) SYMMETRIC TRIANGLE
B) ASCENDING TRIANGLE
C) DESCENDING TRIANGLE