Final - Priyanka Dissertation

A Research Project On
A Study of Real Estate Companies (DLF LTD., UNITECH LTD., SOBHA DEVELOPERS LTD.) on the basis of systematic risk, Market Capitalization, Return on capital Employed, Net Worth, PBIT with special reference to movement of Realty indices traded on BSE for the last three years (2007-2009)
Submitted to Kurukshetra University, Kurukshetra In the partial fulfillment of the degree of Master of Business Administration (Session 2008-2010)
Under the Guidance of: MS. SHAILI GUPTA Faculty, MBA
Submitted By: PRIYANKA JAISWAL D/o Mr. Mohinder Jaiswal Class Roll No.: 1200/08 Univ. Regd.No.-08-TRY-36 Univ. Roll No.
Tilak Raj Chadha Institute of Management & Technology (Affiliated to Kurukshetra University, Kurukshetra & Approved by AICTE) M.L.N. College Education Complex, Yamuna Nagar-135001 (Haryana) Ph.: 01732-220103, 234110. Fax: +91-1732-220103
E-mail: info@timt.ac.in, Web Site: www.timt.ac.in
DECLARATION I PRIYANKA, hereby declare that the Dissertation Report entitled An analysis of top three real estate companies (DLF LTD., UNITECH LTD. and SOBHA DEVELOPERS LTD.) on the basis of market capitalization, return on capital employed, net worth & PBIT with respect to movement in Realty indices at BSE for the year 2007-2009 submitted by me for the award of MBA (Final) of Kurukshetra University, Kurukshetra, is the original work conducted by me and data provided in the study authentic to the best of my knowledge.
This report is not submitted to any other Institute or University for award or Degree of MBA.
PRIYANKA
ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person at the right time. Success of a project is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most valuable professional guidance. This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provided me with the necessary recourses and atmosphere conductive for healthy learning and training. At the outset I would like to take this opportunity to gratefully acknowledge the very kind and patient guidance I have received from my project guider Mrs. Shaili Gupta (Faculty), TIMT Without his critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. I would like to extend my gratitude, to all the faculty members, TIMT for their moral support & guidance required for the realization of this project report.
EXECUTIVE SUMMARY
Study Topic: Analysis of top three Real Estate companies (DLF, UNITECH, Sobha Developers) on the basis of market capitalization, return on capital employed, net worth & PBIT with respect to movements in BSE-REALTY. Objectives: To analyze the performance of Real Estate Sector. To study the impact of stock market movements on the share prices of Top three Real Estate companies. To compare performance of companies under study with BSE Realty & four different factors to analyze their performance. To undertake risk return analysis of these companies and looking how they perform in last 8 quarters and which company has highest return and more efficient. Time Span: A period of three years i.e. 2007-2009 has been taken for the study Study instrument: Annual Reports and other official documents of the Company. Methodology: To achieve the objectives as enumerated above, the technique of ratio analysis along with other analytical and statistical tools i.e. Correlation, Regression, Anova, GARCH Model is adopted. The T-test is applied for hypothesis testing. To calculate ratios, the annual reports of the selected units are extensively studied. The BSEREALTY movements are used for the analysis.
CONTENTS
1. Introduction a. Industry & Company Profile b. Topic 2. Theoretical Framework a. Constructs b. Independent and dependent Variables 3. Literature Review 4. Research Objectives 5. Research Methodology a. Research Design i. Type of Research Design ii. Time Horizon iii. Study Setting iv. Measurement and scaling v. Flowchart for selection of statistical tools 1. Hypothesis Development and testing 2. Sample and Sampling Design 3. Data Collection 4. Analytical Tools 5. Statistical Tools 6. Results and Findings 7. Recommendations/Suggestions 8. Policy Implications 9. Bibliography 10. Annexures
INTRODUCTION
INDUSTRY PROFILE30,33 Real estate is a legal term that encompasses land along with improvements to the land, such as buildings, fences, wells and other site improvements that are fixed in location immovable. The Indian real estate sector plays a significant role in the country's economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost five per cent of the country's GDP is contributed to by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6 per cent.
Almost 80 per cent of real estate developed in India is residential space, the rest comprises of offices, shopping malls, hotels and hospitals. According to the Tenth Five Year Plan, there is a shortage of 22.4 million dwelling units. Thus, over the next 10 to 15 years, 80 to 90 million housing dwelling units will have to be constructed with a majority of them catering to middle- and lower-income groups. Moreover, India leads the pack of top real estate investment markets in Asia for 2010, according to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and research institute. The report, which provides an outlook on Asia-Pacific real estate investment and development trends, points out that India, particularly Mumbai and Delhi, are good destinations. Residential properties are viewed as more promising than other sectors and Mumbai, Delhi and Bangalore top the pack in the hotel buy' prospects as well. The study is based on the opinions of over 270 international real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants. Apart from the huge demand, India also scores on the construction front. A McKinsey report reveals that the average profit from construction in India is 18 per cent, which is double the profitability for a construction project undertaken in the US. The real estate sector is also likely to get a boost from Real Estate Mutual Funds (REMFs) and Real Estate Investment Trusts (REITs). In fact, according to a CRISIL paper, the REITs would have the potential to hold at least 5 per cent share of the total global real estate market by 2010, the size of which would reach US$ 1,400 billion in the next three years. The paper titled, Indian REITs; Are We Prepared', says that by 2010, REITs alone would hold a market size of US$ 70 billion of the total real estate market as its concept is gaining ground in countries like India and other developing nations. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian real estate sector is likely to experience consolidation wherein bigger players may
opt for outright buy of smaller firms or forge joint ventures or business alliances with them. Foreign direct investment (FDI) into India in the real estate sector for the fiscal year 2008-09 has been US$ 12.62 billion approximately, according to the latest data given by the Department of Policy and Promotion (DIPP). Moreover, buoyed by positive market sentiment and demand revival in housing, four real estate companiesEmaar MGF Land, Lodha Developers, Sahara Prime City and Ambience Ltdare looking to mop-up over US$ 2.35 billion through public offerings. Government Initiatives The government has introduced many progressive reform measures to unlock the potential of the sector and also meet increasing demand levels. The stimulus package announced by the government, coupled with the Reserve Bank of India's (RBI) move allowing banks to provide special treatment to the real estate sector, is likely to impact the Indian real estate sector in a positive way. RBI has decided to extend exceptional concessional treatment to the commercial real estate exposure which are restructured, up to June 30, 2009.
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100 per cent FDI allowed in realty projects through the automatic route. In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres. Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states. Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively.
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Full repatriation of original investment after three years. 51 per cent FDI allowed in single-brand retail outlets and 100 per cent in cashand-carry through the automatic route.
The 2009-10 budget has also given sops to the realty sector. Developers of affordable housing projects (units of 1,000-1,500 sq ft) have been granted a tax holiday on profits
from projects initiated in the financial year 2007-08. Such projects would have to be completed before March 1, 2012. At the same time, the finance minister allocated US$ 207 million to grant a 1 per cent interest subsidy on home loans up to US$ 20,691, provided the cost of the home is not more than US$ 41,382. This subsidy is expected to give a further boost to the housing sector. Road Ahead According to the Confederation of Real Estate Developers' Associations of India (CREDAI), the affordable housing segment is set to play an important role in India's real estate sector in 2010 on the back of an uptick in demand. Moreover, 2010 is expected to be a positive year for the real estate sector. The revival is expected to be driven by infrastructure growth, which, in turn, can accelerate real estate activities both in the residential as well as commercial spaces. The Indian real estate sector has witnessed a revolution, driven by the booming economy, favorable demographics and liberalized foreign direct investment (FDI) regime. Growing at a scorching 30 per cent, it has emerged as one of the most appealing investment areas for domestic as well as foreign investors. The second largest employing sector in India (including construction and facilities management), real estate is linked to about 250 ancillary industries like cement, brick and steel through backward and forward linkages. Consequently, a unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times. Rising income levels of a growing middle class along with increase in nuclear families, low interest rates, modern attitudes to home ownership (the average age of a new homeowner in 2006 was 32 years compared with 45 years a decade ago) and a change of attitude amongst the young working population from that of 'save and buy* to 'buy and repay' have all combined to boost housing demand.
According to 'Housing Skyline of India 2007-08', a study by research firm, Indicus Analytics, there will be demand for over 24.3 million new dwellings for self-living in urban India alone by 2015. Consequently, this segment is likely to throw huge investment opportunities. In fact, an estimated US$ 25 billion investment will be required over the next five years in urban housing, says a report by Merrill Lynch. Simultaneously, the rapid growth of the Indian economy has had a cascading effect on demand for commercial property to help meet the needs of business, such as modern offices, warehouses, hotels and retail shopping centres. The Government has introduced many progressive reform measures to unlock the potential of the sector and also meet increasing demand levels. 100 per cent FDI allowed in realty projects through the automatic route.
In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres. Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly
larger number of states. Enactment of Special Economic Zones Act. Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively. Full repatriation of original investment after three years. 51 per cent FDI allowed in single brand retail outlets and 100 per cent in cash and
carry through the automatic route. With the economy surging ahead, the demand for all segments of the real estate sector is likely to continue to grow. The Indian real estate industry is likely to grow from US$ 12 billion in 2005 to US$ 90 billion in by 2015. Given the boom in residential housing, IT, ITeS, organised retail and hospitality industries, this industry is likely to see increased.
Real estate sector in India is witnessing tremendous boom. Real estate industry in India is presently worth $12 billion and is growing at the rate of 30 per cent per annum. The importance of real estate sector in India can be gauged from the fact that it is the second largest employer next only to agriculture. The real estate industry has significant linkages with several other sectors of the economy and over 250 associated industries. According to a study One Rupee invested in real estate sector results in 78 paise being added to the GDP of the country. Eighty percent share of the real estate market is garnered by residential sector and the rest is comprised of offices, shopping malls, hotels and hospitals. The sustained demand from the Information Technology (IT) sector has fuelled the growth of real estate sector. It has been estimated that the demand for IT space would be 66 million square feet over the next five years. Several multinational companies are shifting their operations to India to take advantage of the relatively low costs. With human resources being the key element in this industry, hiring people and housing them assume great importance. The need to create space for people to work and live triggers the development of other related infrastructure. Traditionally, the government's support to housing had been centralized and directed through the State Housing Boards and development authorities. In 1970, the Government of India set up the Housing and Urban Development Corporation (HUDCO) to finance housing and urban infrastructure activities. In 2002, the government permitted 100 per cent foreign direct investment (FDI) in housing through integrated township development. However, FDI rules at the moment are quite stringent. For FDI in real estate prior approval of the Foreign Investment Promotion Board is required, which, can be rather tedious and there is a lock-in period for repatriation of the original capital invested for a period of three years. On the top of it the rules stipulate a minimum land holding of 100 acres. Getting 100 acres of free land in an urban area is almost impossible. Hence the permission of FDI in real estate hasn't had the desired effect. The boom in retail industry has also spurred the growth in real estate sector. India at the moment is witnessing a spurt in extremely large retail spaces. Shopping malls with over 1 million sq ft of space have become the order of the day. As the competition in the market intensifies, builders are going out of their way to be different. Specialized malls, designer brands and multi-movie options are the order of the day. With the big players like
Reliance, Big Bazaar, and Bharti entering retail market, real estate sector would be the big beneficiary. The prospects for real estate industry in India looks buoyant. All the factors which contributed to the growth of real estate sector-high disposable incomes, sharp increase in global liquidity, selective capital account liberalization, looser credit policies, a greater availability of leverage due to financial liberalization and a consequent increase in mortgage lending and price increases-look set to continue.
Company Name INDUSTRY - Const-Hsg-Large [78] DLF Kerala Police Hs Parsvnath Devl. Sobha Developer. Unitech Ind.Composite 200903 200903 200903 200903 200903 -
MktCap. Year End Rs. Cr.
B.V.
Sales
NP Rs. Cr.
Rs.Cr. Rs. Cr.
49606.52 2386.57 2448.07 17641.29 72082.45
72.9 105.1 169.7 30.4 -
2,827.9 1,548.2 40.99 733.54 974.74 112.6 109.64 2500.83
1,837.0 730.3 6414.2
On the basis of Market Capitalization I have taken top three companies i.e. DLF Ltd., UNITECH Ltd., & Sobha Developers for analysis.
Company Profile35,36
Incorporation Year Chairman Managing Director Company Secretary Auditor Face Value (Rs) BSE Code BSE Group NSE Code Bloomberg Reuters Market Lot Listing Financial Year End Book Closure Month AGM Month
1963 K P Singh T C Goyal Subhash C Setia Walker Chandiok & Co 2 532868 A DLF DLFU IN DLF.BO 1 Mumbai,NSE 3 Sep Sep
DLF Limited is India's largest real estate company in terms of revenues, earnings, market capitalization and developable area. It has a 62-year track record of sustained growth, customer satisfaction, and innovation. The company has approximately 238 msf of completed development and 423 msf of planned projects, and has pan India presence across 30 cities.
DLF's primary business is development of residential, commercial and retail properties. The company has a unique business model with earnings arising from development and rentals. Its exposure across businesses, segments and geographies, mitigates any downcycles in the market. DLF has also forayed into infrastructure, SEZ and hotel businesses. Development Business The development business of DLF includes Homes and Commercial Complexes The Homes business caters to 3 segments of the residential market - Super Luxury, Luxury and Mid-Income. The product offering involves a wide range of products including condominiums, duplexes, row houses and apartments of varying sizes. DLF has 216 msf of developed area under homes and residential plots. DLF is credited with introducing and pioneering the revolutionary concept of developing commercial complexes in the vicinity of residential areas. Since its inception in 2007, DLF has successfully launched commercial complexes and is in the process of marking its presence across various locations in India. The development business at present has 391 msf of development potential with 25 msf of projects under construction. Annuity Business The annuity business consists of the rental businesses of offices and retail. With over six decades of excellence, DLF is a name synonymous with global standards, new generation workspaces and lifestyles. It has the distinction of developing commercial projects and IT parks that are at par with the best in the world. DLF has become a preferred name with many IT & ITES majors and leading Indian and International corporate giants, including GE, IBM, Microsoft, Canon, Citibank, Vertex, Hewitt, Fidelity Investments, WNS, Bank of America, Cognizant, Infosys, CSC, Symantec and Sapient, among others. DLF pioneered the retail revolution in the country and brought about a paradigm shift in the industry by redefining shopping, recreation and leisure experiences with the launch of City Centre in Gurgaon in 2000. The Retail Malls business is a major thrust area for DLF. Currently, DLF is actively creating new shopping and entertainment spaces all over the country. The company has land resource of 92 msf for office and retail development, with 17 msf of projects under construction.
DLF has a strong management team running independent businesses, though complementing each other in cases of opportunities of mixed land use. DLF's mission is to build a world-class real estate development company with the highest standards of professionalism, ethics and customer service and to thereby contribute to and benefit from the growth of the Indian economy. History Going back to over six decades, the birth and history of the DLF Limited came to known. Late Chaudhury Raghvendra Singh founded it as Raisina Cold Storage and Ice Company Private Limited and Delhi Land and Finance Private Limited in 1946 and later on K P Singh promoted the DLF Limited. The company was incorporated in the year 1963 as American Universal Electric (India) Limited. The DLF group is a leading real estate developer in India. The group has over 224 million sq. ft. of existing development and 748 million sq. ft. of planned projects. DLF is the company, which committed to quality, trust and customer sensitivity, and deliver on promises with agility, financial prudence and in tune with the highest global standards. The company has also entered into several strategic alliances with global industry leaders in different segment. DLF developed some of the first residential colonies in Delhi such as Krishna Nagar in East Delhi, which was completed in the year 1949. The Homes business line involves a wide range of products including condominiums, duplexes, row houses and apartments of varying sizes, with a focus on the higher end of the market. DLF `Superbrand' ranking company, is the only company in India in the Consumer validated category from the real estate sector to have been awarded this distinction. During the year 1969 to 1974, the company formulated 22 urban colonies. The first landmark real estate developments project DLF Qutab Enclave was commenced in the year 1975, which has now evolved into DLF City. DLF City is spread over 3,000 acres in Gurgaon and is an integrated township, which includes residential, commercial and retail properties in a modern city infrastructure with schools, hospitals, hotels and shopping malls. It also boasts of the prestigious DLF Golf and Country Club with night golfing facilities. In 1979, DLF United Limited amalgamates with American Universal Electric (India) Limited. The company was renamed in 1980 as DLF Universal Electric Limited. Subsequently, on May 28, 1981, 'DLF Universal Electric Limited' was again renamed as DLF Universal Limited. In 1982, the company ventured into Group
Housing Projects. During the period 1989, the company came to the campaign in Community Shopping Centres. Entry in 1st "A" office space 'DLF Centre' was took place in 1991 at New Delhi. Constructed the 'DLF Corporate Park', first office Complex at DLF City Gurgaon, Haryana was in the year 1996. As on 1999, the DLF Industries Limited (DLF Group Company) was amalgamated with DLF Universal Ltd. The next stride of the company was doorway organized retail complexes in the year 2002. In 2003, the National Expansion into 11cities- IT parks, Homes, Retail, Special Economic Zones (SEZs) and Hotels was emerged. The company launched 12-acre Cyber City and also initiated IT parks in various metros. The Premium Residential Complex launched in Mangolia by the company in the year 2005, received 'Corporate Buildings Award' instituted by 'Indian Architect and Builder', a publication of Jasubhai Media Group, Mumbai in the same year and in 2006 DLF expanded in 29 cities across nation, launched premium residential complex (park place) and joint venture signed between DLF Universal Limited and U.K. based Laing O'Rourke Plc to form DLF Laing O'Rourke (India) Limited. On May 27, 2006, the company changed its name from DLF Universal Limited to DLF Limited. The alliance agreement signed between DLF Ltd and Hilton International Company to incorporate a joint venture company in India to develop, own and acquire 50 to 75 hotels and services apartments and also a joint venture with WSP Group Plc. for the purposes of providing engineering and design services, environmental and infrastructure facilities and also project management services in the same year. The U.S.-based Prudential Financial, Inc (PFI) and the DLF Group, India's largest real estate developer, signed an agreement to establish a joint venture company in India for provide a broad array of mutual fund and investment products, including domestic and eventually international mutual funds to Indian retail and institutional clients under in the name of "DLF Pramerica Asset Managers Private Limited" on December 2007. As on January 2008 the company signed a Memorandum of Understanding (MoU) with Gayatri Projects Ltd (GPL), one of the leading infrastructure companies in India, to develop roads and highway projects across the country worth at least Rs 1,000 crore every year and on April of the same year DLF Ltd and Hilton Hotels Corporation in India have signed management agreements involving seven new hotel developments in the pipeline. This marks the second stage in the DLF-Hilton Joint Venture Company's overall strategic
development plans to build and develop 75 hotels in India in the next five to seven years.
DLF Ltd, with over six decades of experience, is focusing on strengthening its lateral and vertical business drivers and charted it next growth steps to retain its leadership position in India, already a major player in locations across the country, including metro and key urban centers. The group is capitalizing on emerging market opportunities to deliver high-end facilities and projects to its wide base of customers by constantly upgrading its internal skills and resource capabilities. In line with its current expansion plans, the DLF Group has over 748 million sq. ft. of development across its businesses, including developed, on-going and planned projects. This land bank is spread over 32 cities, mostly in metros and key urban areas across India. To increase in corporate and consumer incomes, as well as foreign investment, DLF sees significant opportunities for growth in its three primary businesses such as Residential, Commercial and Retail Properties Business. DLF's mission is to build a world-class real estate development company with the highest standards of professionalism, ethics and customer service. 2009 (Rs. Cr.) Net worth RONW (%) PBIT Market Capitalization Capital Employed ROCE (%) 12374.83 13.09 2618.62 28377.18 21989.8 12.58 2008 (Rs. Cr.) 11269.15 43.19 3565.57 110218.55 19655.55 26.34 2007 (Rs. Cr.) 652.8 62.93 977.98 94553.64 7422.09 17.65
37,33
Incorporation Year Chairman Managing Director Company Secretary Auditor Face Value (Rs) BSE Code BSE Group NSE Code Bloomberg Reuters ISIN Demat Market Lot Listing Financial Year End Book Closure Month AGM Month
1971 Ramesh Chandra Sanjay Chandra Deepak Jain Goel Garg & Co 2 507878 A UNITECH UT IN UNTE.BO INE694A01020 1 Mumbai,NSE 3 Aug Aug
Unitech Limited, India's leading Real Estate and Infrastructure Company was came to line in 9th February of the year 1971 as United Technical Consultants Pvt. Ltd and was converted into a public limited company on 3rd October. The product mix of the company comprises Residential, Commercial, Information Technology (IT) parks, Retail, Amusement Parks and Hotels. It is known for the quality of its product and is the first
real estate developer to have been certified ISO 90001:2000 certificate in North India. Unitech has long partnered with internationally acclaimed architects and design consultants including Callison Inc (USA), RMJM (UK), FORREC (Canada), SWA, EDAW and HOK (USA) for various projects. It's clientele for commercial projects includes global leaders such as Fidelity, Bharti Televentures, Ford Motors, Nike, Intercontinental Hotel Group, EDS, Hewitt, Convergys, Reebok, Keane, Fritolays, Sun Life Insurance, BCG, AT Kearney, Seagrams, Perfetti & General Motors. The additional contracts for water supply and sewage works at Hun and a mosque at Sokna were awarded to the Company in the year 1986. Unitech received maintenance work for six school buildings near Tripoli and also in the same year the Company signed an agreement with Libyan Authorities for the construction of 270 houses at Wadan. Unitech launched a real estate mini-city, the South City and a similar one at RaeBareilley in South of Lucknow covered an area of 255 acres of land. During the year 1987, the Company received major orders for construction of Okhla Sewage treatment plant at Delhi valued at Rs.8 crores and a steel melting shop at Vizag Steel Plant valued at Rs.16 crores. In the period of 1988, the construction of chimney for Dadri Thermal Power Station of NTPC, a 300 metre tall TV Tower at Jaisalmer, Rajasthan were came to company's hand and pile foundation work for Durgapur Steel Plant also under Other jobs. In the same year a technical collaboration agreement was entered into with Ramda Inn Chain for implementation of a five-star deluxe hotel project at Agra. The company bagged some contracts in the year 1989 includes construction of super structure for main powerhouse and auxiliary building for BHEL at Tenugha, Bihar. The industrial buildings for J.K. Tyres at Gwalior, M.P, the modernisation of slab casting shop for TISCO, Jamshedpur and residential Complex Township for Chambal Fertilizers Ltd at Kota, Rajasthan. An agreement was signed with Kazakh Republican Council and their associates for a joint venture for renovation of the existing hotel at Medeo at Alma Ata (USSR) to 5-star deluxe standard.
A Joint venture Company in the name of Benetone Unitech Co. Ltd was incorporated in Thailand to undertake development and construction projects. The Company secured the construction work of container depot in the year 1990 for Container Corporation of India at Tughlakabad. In 1994 the Company signed a MOU with Singapore Consortium and Haryana Urban Development Authority for setting up a Technology Park in Gurgaon. Unitech entered into partnership agreement in the year 1995 with Resources
Development Corporation Ltd, Singapore and Comcraft Asia Pacific Pte Ltd Singapore to set up Automatic Block plants at New Mumbai and Ready Mixed concrete plants at Powai, Goregaon and South City. The Company has handed over possession of several apartments in the year 1996 of Heritage Estate in Bangalore, Legacy Complex in Lucknow and, Sunbreeze Tower-III. In 2001-02, the company has got orders from Utter Pradesh Public Works Department and DDA for Highway/Road Projects costing Rs.35 crores and Rs.28.5 crores respectively. In 2002-03, Uniworld City, a prestigious residential (Group Housing) was launched and also the Vista Villas (Phase II) launched during the year under residential projects. The joint ventures were made with B.Hotels Ltd (Radisson Hotel), Hyundai Unitech Electrical Transmission Ltd, Gurgaon Technology Park Ltd and RHW Hotel Management Services for various projects in kind. Around August 2003, Unitech launched The Great India Place, a 142 acres amusement/ entertainment project, in Noida; this project covered an amusement park, a restaurant complex, a water park, a multiplex and two shopping malls. Unitech entered to venture into malls, entertainment businesses in the year 2004 with investment of around Rs 1,500 crore. Unitech Brings 'Harmony' At 'Nirvana Country' Residential Township a Project to bring harmony of Luxury & Style at 320 acres township in the year 2006. During the year 2006-07, the company opened its first retail malls in Delhi and Noida and also opened its first Amusement Park in Delhi. Unitech successfully launched several high-quality residential and commercial projects like Habitat, Verve, Harmony, Fresco, Escape, Air, Downtown, Infospace, Business Zones, Arcadia, South City Gardens and Capella etc. the company forays into development of hotels, by entering into the Management Agreement with Marriott for managing four Courtyard hotels in Gurgaon, Noida and Kolkata, and with Carlson Group for managing a Country Inn in Gurgaon. During the year, 67 companies were added as the subsidiaries of the company, thereby taking the total number of subsidiary companies to 135 as on March 31, 2007. The company's greater geographical footprint was in the year 2007, from being a player operating predominantly in the national capital region (NCR), Unitech is fast widening its presence across the length and breadth of the country. The company launched a premium residential project, Unitech Grande, in July 2007 at Noida. Unitech Grande is a premium
lifestyle destination offering super luxury apartments in sylvan surroundings across 347 acres of prime land. Unitech as a leading real estate developer is well poised to benefit from the unprecedented growth being witnessed in the real estate sector in the country. It has built a large land bank of over 14,500 acres spread across some of the fastest growing cities in the country. Unitech has also scaled up both its internal and external resources to be able to execute large projects.
2009 (Rs. Cr.) Net worth RONW (%) Capital Employed ROCE (%) PBIT Market Capitalization 2859.57 29.57 10538.56 16.14 1678.77 5673.78
2008 (Rs. Cr.) 2143.82 62.37 10263.28 23.4 1758.9 44830.19
2007 (Rs. Cr.) 1161 141.97 4768.17 54.16 1538.53 31441.2
Sobha Developers Ltd33,39
Incorporation Year Chairman Managing Director Company Secretary Auditor Face Value (Rs) BSE Code BSE Group NSE Code Bloomberg Reuters ISIN Demat Market Lot Listing Financial Year End Book Closure Month AGM Month
1995 P N C Menon J C Sharma Kishore Kayarat S R Batliboi & Associates 10 532784 B SOBHA SOBHA IN SOBH.BO INE671H01015 1 Mumbai,NSE 3 Jun Jun
The chronicle of Sobha Developers Limited (SDL) was back to a decade of years. Mr. P N C Menon founded the company in 7th August of the year 1995. SDL is one of the largest and only one backward integrated company in the construction arena. Doing the business of construction, development, sale, management & operation of townships, housing projects, commercial premises and other related activities. SDL has a number of Group companies that support its backward integration model includes Sobha Interiors Division, Sobha Glazing and Metal Works Division, Sobha Concrete Products, Sobha Projects & Trade Division, Sobha Renaissance Information Technology, S & T Group Oman, Indeset - UAE and Gulf International Construction & Interiors Company (GICI) -
Qatar. Retail Division of the company includes Sobha Restoplus - Spring Mattress and Sobha Modular Office Furniture. SDL is an industry leader in Bangalore, Karnataka; contractual projects have also been constructed in Kerala, Andhra Pradesh, Orissa, Tamil Nadu, Punjab, Haryana and Maharashtra. As of September 1997, SDL had launched first residential project under the name of Sobha Sapphire in Bangalore and also launched first plot development under the name of Harisree Garden' in Coimbatore. The Company obtained an ISO 9001 (1994 series) certification in July of the year 1998. After two years from the projects started, in September of the year 1999, the first residential project Sobha Sapphire in Bangalore was completed and handed over. During December of the same year 1999 SDL had commenced the construction of first contractual project, the Corporate Block for Infosys Technologies Limited, Bangalore. Within the year, in September 2000, completed and handover the Corporate Block for Infosys Technologies Limited, Bangalore. In November of the same year 2000, the company had started construction of first contractual project outside Bangalore for Infosys Technologies Limited, Mysore. SDL had received a memento from Infosys Technologies Limited in November 2000 in respect of our efforts in relation to the construction of the corporate maiden block. As at September 2001, completed and handover the first contractual project outside Bangalore, at Mysore for Infosys Technologies Limited. During October of the year 2003, Sobha Construction Academy and Sobha Research and Development Center commenced its function. For its quality, again the company obtained an ISO 9001 (2000 series) certification in April of the year 2004. Fully automated concrete product division of the company was started its operation in October of the year 2005. The Company awarded the 'Brick and Mortar Award' for the south zone in the 'a+d & Spectrum Foundation Architecture Awards 2005'. For the purpose of corporate restructuring, purchased selected assets and liabilities from Sobha Interiors Private Limited, Sobha Glazing and Metal Works Private Limited and Sobha Space Private Limited during April of the year 2006. As at June 2006, the company had changed its status from private to public. During September of the year 2006, SDL had received PR 1 rating from CARE. In the year 2007, the company had sold subsidiary company namely S B G Housing which not a material entity to the company. During
August of the same year 2007, the company had inked MoU with Kerala Government for Rs 5,000 crores township project. SDL had entered into Coimbatore's real estate terrain in January of the year 2008 with a residential project, Sobha Emerald, the Rs 750 million exclusive enclaves. The Company had signed a letter of intent (LOI) with an Indian arm of German company TUV Rheinland (India) in April of the year 2008 for setting up a 50:50 joint venture. As at June of the year 2008, SDL made its foray into Mysore realty market with three projects. The Company had received Foreign Direct Investment (FDI) by Pan Atlantic, Dubai in July of the year 2008 for its new project to be launched at Hosahalli, Bangalore south.
TOPIC Analysis of top three Real Estate companies (DLF, UNITECH, Sobha Developers) on the basis of market capitalization, return on capital employed, net worth & PBIT with respect to movements in BSE-REALTY is done with emphasizing on following objectives: To analyze the performance of Real Estate Sector. To study the impact of stock market movements on the share prices of Top three Real Estate companies. To compare performance of companies under study with BSE Realty & four different factors to analyze their performance. To undertake risk return analysis of these companies and looking how they perform in last 8 quarters and which company has highest return and more efficient. A period of three years i.e. 2007-2009 has been taken for the study. Annual Reports and other official documents of the Company are used. To achieve the objectives as enumerated above, the technique of ratio analysis along with other analytical and statistical tools i.e. Correlation, Regression, Anova, GARCH Model is adopted. The T-test is applied for hypothesis testing. To calculate ratios, the annual reports of the selected units are extensively studied. The BSE-REALTY movements are used for the analysis.
THEORITICAL FRAMEWORK7,10
Construct: Performance of real estate companies (DLF, UNITECH & Sobha Developers) with movement in Realty Index at BSE.
Independent Variable: Realty Index at BSE & Systematic Risk Dependent variables:
Net worth, Market Capitalization, Return on capital employed, PBIT Beta
LITERATURE REVIEW
Literature Review BOOKS:y Gupta S.P1, (Edition 3rd) Business Statistics New Delhi, Sultan Chand & Sons, ,p.no.(379,381,399).: The information regarding the correlation as statistical tool. y Gupta S.K2 ,(Edition 2nd), Accounting Information, New Delhi, Himalya Publishing House, P. no.(10.1-10.8) ,Nature, guideline, importance, limitation of ratio. y Hooda R.P3, (Edition 2nd), Statistics for Business and Economics Delhi, Dhanpat rai & co., P. no. (209-212):- Calculation of Trend Analysis and its interpretation. y Maheshwari, S.N4, (Edition3rd), Advanced Accounting, New Delhi, Tata Mcgraw hill, p. no.(B-40 to B48):- It explains ratio analysis as a tool to analyze the financial statements of organization and ratios depict the position of firm in market.. y Ciaran Walsh5, (Edition 3rd), Key Management Ratios, Delhi, Prentic hall of India, P.No. (113-122):- Analysis of profitability of any firm by calculating profitability and turnover ratios. y Jain T.R6, (Edition 2nd), Statistics for MBA, New Delhi, V.K. Publications, P. no.135-138):-Information about how to calculate correlation and T test. y Hair, Bush, Ortinau7, (Third Edition), Marketing Research, New Delhi, Tata
Mcgrw hill, P. No. 352-356:- Definition of Construct, P. No. (328-342):Sampling & Sampling Design y Hair, Black, Tatham8, (Third Edition), Multivariate Data Analysis,New Delhi, Tata Mcgraw hill, P.No (407-482):- Annova y Nargundkar, Rajendra9, (2nd Edition), Marketing Research,New Delhi,New International Ltd., P.No. (21-37):- Research Process, P. No.(39-50):- Types of Research Design ,P.No (115-157):- Planning the Data Analysis, P.No (210-221):Design of experiments y Sekaran,Uma10,, (Edition 4th),Research Methods for Busines P.No (117-130):Elements of RD , P.No 196-207:- Methods of Data Collection, P.No (263-298):Sampling, P.No (300-336):- Data Analysis & Interpretation. y Beri,G.C.11 , (Third Edition), Business Statistics,New Delhi,Tata Mcgraw hill, p.no. (234-266):- Sampling Distribution. P.no. (300-325):- Testing of Hypothesis. JOURNALS & MAGAZINES
Srinivasan P. & Bhat K12. Sham, (July-Sept 2009), An Empirical Analysis of Foreign Institutional Investment and Stock Market Returns in India'', Foreign Trade Review, Vol.XLIV no. 2, pp. 60-75. The information regarding investment and indices movement is taken. Bhayani Sanjay J13., (Jan-Mar 2009), Dividend Payout Policy- An Empirical Analysis of Indian Corporate, The Indian Journal of Commerce. Vol. 62 No.1. regarding dividend yield and dividend policies. Moyen Nathalie14, (Oct.2004), Investment-Cash Flow Sensitivities: Constrained versus Unconstrained Firms, Journal of Finance Vol. 59 No. 5, pp. 2061-2063. Regarding cash flows related to investments. Koch Adam S. and Sun Amy X15., (Oct.2004), Dividend Changes and the persistence of past earning changes, Journal of Finance Vol. 59 No. 5, pp. 20932096. Regarding dividend yield and earning per share. Jhonson Woodrow T16., (Aug. 2004), Employee Stock Option, Corporate Taxes and Debt Policy Journal of Finance, Vol.59. Regarding market price movements.
Wang Kevin Q.17, (Aug 2009), Financially Constraint Stock Return Journal of Finance, Vol.64. Regarding market Share Jacob Kris18, (Dec 2007), Long term reversals-overreaction of taxes Journal of Finance, Vol. 62. Regarding Tax policies and impact on profitability. M. T. Raju, Anirban Ghosh19, (April 2004), Stock Market Volatility An International Comparison Working Paper S.No.8. Facts regarding stock market volatility are taken. Christopher R. Blake, Edwin J. Elton, Martin J. Gruber20 (1995). Fundamental Economic Variables, Expected Returns, and Bond Fund PerformanceVolume: 50, Issue: 4, p.no.17 Srinivasan P. & Bhat K. Sham21, (July-Sept 2009), An Empirical Analysis of Foreign Institutional Investment and Stock Market Returns in India, Foreign
z
and indices movement is taken.
WEBSITES
ahttp://www.dlf.in/dlf/wcm/connect/dl_common/DLF_SITE/HOME/TOP+LINK/I nvestors/Overview22 The information regarding the DLF is taken from this website
http://sify.com/finance/stockpricequote. The Price indices of different companies are taken from this site. http://money.rediff.com/companies/dlf-ltd/13520062/bse/year/chart23 http://www.businessworld.in/bw/2009_11_24_India_Housing_Picking_No_Full_ Recovery_Yet_DLF.html24. News regarding DLF Ltd. is taken.
y y
http://www.businessworld.in/bw/2009_09_21_DLF_May_Exit_Luxury_Hotel_Ch ain.html25 News related to DLF Ltd. is taken. http://www.capitaline.com26: Financial data of the companies is taken from this website. www.corporateinformation.com/Company-Snapshot.aspx27 Information relating to comapnies is taken http://www.bseindia.com/histdata/stockprc2.asp28:information related to prices of BSE sensex. this site provides the
http://money.rediff.com/companies/dlf-ltd/13520062/bse/year/chart:provide29 The movements in BSE are taken. http://sify.com/finance/stockpricequot.30 The share prices of different companies are taken. www.datamonitor.com/companies/company/?pid31=A9CF400E-87FC-4C209285-
www.investing.businessweek.com/research/stocks/snapshot/snapshot.asp?symbo3 2l=ATCY.BO http://www.domain-b.com/news_review/200702feb/20070222newsb.html34 http://business.gov.in/Industry_services/infrastructure_industry.php35 myiris.com/shares/company/snapShotShow.php?icod36e=ATLCYCIN&select=1 51k
y y y
http://www.bseindia.com/mktLive/ScripWiseCorpAction.asp?scrip_cd=500547&s cripname=Sobha%20Developers%20Ltd37. The share price movements of Sobha Developers Ltd. is taken
RESEARCH OBJECTIVES
RESEARCH OBJECTIVES
To analyze the performance of Real Estate Sector. To study the impact of stock market movements on the share prices of Top three Real Estate companies. To compare performance of companies under study with BSE Realty & four different factors to analyze their performance. To undertake risk return analysis of these companies and looking how they perform in last 3 years and which company has highest return and more efficient. To test if there is any significant relationship between returns of the companies and BSE Realty Indices.
Research Methodology1,11
RESEARCH METHODOLOGY Research methodology is a way to systematically solve the problem. It is a game plan for conducting research. In this we describe various steps that are taken by the researcher, All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry leads to invention. Research in a common parlance is a search for knowledge. Research is an art of scientific and systematic investigation. Thus research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data, making deductions and reaching conclusions. Research methodology is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Methodology is the conceptual structure within which research is conducted. It constitutes the blueprint for the collection measurement and analysis of the data. Research methodology is a framework for the study and is used as a guide in collecting and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. it also includes time and cost budget since most studies are done under these two constraints. The research methodology include over all research design, the sampling procedure, the data collection method and analysis procedure. Research is a process through which we attempt to achieve systematically and with the support of data the answer to a question, the resolution of a problem, or a greater
understanding of a phenomenon. This process, which is frequently called research methodology, has eight distinct characteristics: 1. Research originates with a question or problem. 2. Research requires a clear articulation of a goal. 3. Research follows a specific plan of procedure. 4. Research usually divides the principal problem into more manageable sub problems. 5. Research is guided by the specific research problem, question, or hypothesis. 6. Research accepts certain critical assumptions.
7. Research requires the collection and interpretation of data in attempting to resolve the problem that initiated the research. 8. Research is, by its nature, cyclical; or more exactly, helical.
1 OBSERVATION Broad area of research interest 3 PROBLEM DEFINITION Research Problem Delineated Variables clearly 4 THEORETICAL FRAMEWORK GENERATION OF HYPOTHESES 5 7 6 DATA COLLECTION, SCIENTIFIC RESEARCH DESIGN ANALYSIS AND INTERPRETATION
8 2 PRELIMINARY DATA GATHERING Interviewing Literature Survey NO Yes DEDUCTION Hypotheses substantiated? Research question
9 Report writing
10 Report Presenta tion
11 Manager ial decision making
RESEARCH DESIGN A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact research is the conceptual structure within which research is
conducted; it constitutes the blueprint for the collection, measurement and analysis of data. Research Design can be categorized as: y y y Exploratory Research Descriptive Research Experimental Research
EXPLORATORY RESEARCH DESIGN Exploratory research design is termed as formulating research studies. The main purpose of study is that of formulating a problem. The major emphasis in such study is on discovery of new ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of problem.
DESCRIPTIVE AND DIAGNOSTIC RESEARCH DESIGN Descriptive research designs are those design which are concerned with describing the characteristics of particular individual or of the group. Whereas diagnostic research studies determine the frequency with which something occurs or its association with some else. In descriptive and diagnostic study the researcher must be able to define clearly what he wants to measure and must find adequate method for measuring it.
EXPERIMENTAL RESEARCH DESIGN These are those studies where the researcher tests the hypothesis of casual relationship between variables. Such study requires procedure that will not only reduce biasness and increase reliability but will permit drawing iIALuence about causality. Usually experiments meets this requirement, hence these research designs are prepared for experiment.
RESEARCH DESIGN IN STUDY
In the study I will apply descriptive research design. As descriptive research design is the description of state of affairs, as it exists at present. In this type of research the
researcher has no control over the variables; he can only report what has happened or what is happening Descriptive research designs are those design which are concerned with describing the characteristics of particular individual or of the group. In descriptive and diagnostic study the researcher must be able to define clearly what he wants to measure and must find adequate method for measuring it.
1. Type of the study Descriptive study 2 Type of Investigation Correlational Study 3. Extent of Researcher Interference with the study Minimal Interference 4. Study Setting Contrived Settings 5. Time Horizon Cross Sectional Studies
FLOW CHART
HYPOTHESIS TESTING2,7
DLF Ltd. 1. Null Hypothesis: There is significant relationship between Market Capitalization of DLF Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between Market Capitalization of DLF Ltd. & Realty indices. One-Sample Test Test Value = 0 Sig. (2tailed) 2 2 .122 .090 Mean Difference 1910.820 77716.457 95% Confidence Interval of the Difference Lower -1250.77 -30196.97 Upper 5072.41 185629.88
T REALT Y MktCap 2.600 3.099
Df
INTERPRTATION: Since the value of t (3.099) is greater than significant value (.090) for market capitalization, the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the market capitalization.
2. Null Hypothesis: There is significant relationship between Net worth of DLF Ltd. & Realty indices.
Alternate Hypothesis: There is significant relationship between Net worth of DLF Ltd. & Realty indices.
Test Value = 0 Sig. (2tailed) 2 2 .122 .163 Mean Difference 1910.820 8098.927 95% Confidence Interval of the Difference Lower -1250.77 -7978.88 Upper 5072.41 24176.74
T REALT Y NetWrth 2.600 2.167
Df
INTERPRTATION: Since the value of t (2.167) is greater than significant value (.163) for Net Worth of DLF Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Net Worth of DLF Ltd.
3. Null Hypothesis: There is significant relationship between Return on capital employed of DLF Ltd. & Realty indices.
Alternate Hypothesis: There is significant relationship between Return on capital employed of DLF Ltd. & Realty indices.
One-Sample Test Test Value = 0 Sig. (2tailed) 2 2 .122 .112 Mean Difference 1910.820 3084.527 95% Confidence Interval of the Difference Lower -1250.77 -1767.44 Upper 5072.41 7936.49
T REALT Y ROCE 2.600 2.735
Df
INTERPRTATION: Since the value of t (2.735) is greater than significant value (.112) for Return on Capital Employed of DLF Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Return on Capital Employed of DLF Ltd.
4. Null Hypothesis: There is significant relationship between PBIT of DLF Ltd. & Realty indices.
Alternate Hypothesis: There is significant relationship between PBIT of DLF Ltd. & Realty indices.
T REALT Y PBIT 2.600 3.158
df
INTERPRTATION: Since the value of t (3.158) is greater than significant value (.087) for PBIT of DLF Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the PBIT Employed of DLF Ltd.
UNITECH LTD.
1. Null Hypothesis: There is significant relationship between Market Capitalization of UNITECH Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between Market Capitalization of UNITECH Ltd. & Realty indices.
One-Sample Test Test Value = 0 Sig. (2tailed) 2 2 .122 Mean Difference 1910.82000 95% Confidence Interval of the Difference Lower -1250.7690 Upper 5072.4090 76753.4481
df
.141 27315.05667 -22123.3347
INTERPRTATION: Since the value of t (2.377) is greater than significant value (.141) for Market Capitalization of UNITECH Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Market Capitalization of UNITECH Ltd.
2. Null Hypothesis: There is significant relationship between Net worth of UNITECH Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between Net worth of UNITECH Ltd. & Realty indices.
df
INTERPRTATION: Since the value of t (4.173) is greater than significant value (.053) for Net Worth of UNITECH Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Net Worth of UNITECH Ltd.
3. Null Hypothesis: There is significant relationship between Return on capital employed of UNITECH Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between Return on capital employed of UNITECH Ltd. & Realty indices.
One-Sample Test Test Value = 0 Sig. (2tailed) 2 2 .122 .014 Mean Difference 1910.82000 2228.32333 95% Confidence Interval of the Difference Lower -1250.7690 1071.6896 Upper 5072.4090 3384.9571
df
INTERPRTATION: Since the value of t (8.289) is greater than significant value (.014) for Return on Capital Employed of UNITECH Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Return on Capital Employed of UNITECH Ltd.
4. Null Hypothesis: There is significant relationship between PBIT of UNITECH Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between PBIT of UNITECH Ltd. & Realty indices. One-Sample Test Test Value = 0 Sig. (2tailed) 2 2 .122 .002 Mean Difference 1910.82000 1658.73333 95% Confidence Interval of the Difference Lower -1250.7690 1381.6452 Upper 5072.4090 1935.8214
df
INTERPRTATION: Since the value of t (25.757) is greater than significant value (.002) for PBIT of UNITECH Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the PBIT of UNITECH Ltd.
SOBHA DEVELOPERS LTD. 1. Null Hypothesis: There is significant relationship between Market Capitalization of Sobha Developers Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between Market Capitalization of DLF Ltd. & Realty indices.
df
INTERPRTATION: Since the value of t (2.297) is greater than significant value (.148) for Market Capitalization of Sobha Developers Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Market Capitalization of Sobha Developers Ltd.
2. Null Hypothesis: There is significant relationship between Net worth of Sobha Developers Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between Net worth of Sobha Developers Ltd. & Realty indices.
df
INTERPRTATION: Since the value of t (10.555) is greater than significant value (.009) for Net Worth of Sobha Developers Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Net Worth of Sobha Developers Ltd.
3. Null Hypothesis: There is significant relationship between Return on capital employed of Sobha Developers Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between Return on capital employed of Sobha Developers Ltd. & Realty indices. One-Sample Test Test Value = 0 Sig. (2tailed) 2 2 .122 .021 Mean Difference 1910.82000 348.02767 95% Confidence Interval of the Difference Lower -1250.7690 127.4636 Upper 5072.4090 568.5917
df
INTERPRTATION: Since the value of t (6.789) is greater than significant value (.021) for Return on Capital Employed of Sobha Developers Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the Return on Capital Employed of Sobha Developers Ltd.
4. Null Hypothesis: There is significant relationship between PBIT of Sobha Developers Ltd. & Realty indices. Alternate Hypothesis: There is significant relationship between PBIT of Sobha Developers Ltd. & Realty indices.
df
INTERPRTATION: Since the value of t (9.271) is greater than significant value (.011) for PBIT of Sobha Developers Ltd., the alternate hypothesis is accepted. Thus, there is significant relationship between Realty indices and the PBIT of Sobha Developers Ltd.
SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or the procedure that is adopted in selecting the sampling units
from which inferences about the population is drawn. Sampling design is determined before the collection of the data.
Several decisions have to be taken in context to the decision about the appropriate sample selection so that accurate data is obtained and efficient results are drawn.
Following questions have to be considered while sampling design What is the relevant population? What is the parameter of interest? What is the sampling frame? What is the type of sample? What sample size is needed? How much will it cost?
In present project a sample size of past three years is taken for analysis. Design-Nonprobability Sampling
DATA COLLECTION3,11 In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. The task of data collection begins after a research problem has been defined and research design chalked
out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., y y Primary Secondary
Primary Data:The Primary data are those, which are collected afresh and for the first time, and thus happened to be original in character. There are several methods of primary data collection: Observation Method Interview Method Schedules Questionnaires Secondary Data: The Secondary data are those which have already been collected by someone else and which have already been passed through the statistical tool. Methods of collection of Secondary data are: Books Website Journal. Newspapers & Magazines In present study I have made use of secondary data collected from financial reports of DLF Ltd., Unitech Ltd. & Sobha Developers Ltd. and websites of BSE.
ANALYTICAL AND STATISTICAL TOOLS
Ratio Analysis6,8,9
Profitability ratios: Operating margin (%) Company/Year DLF UNITECH Sobha Developers 2007 59.76 56.83 21.59 2008 55.88 51.67 24.86 2009 62.33 56.73 27.68
70 60 50 2007 40 2008 30 2009 20 10 0 DLF UNITECH Sobha Dev
INTERPRETATION: The operating margin for DLF LTD. & UNITECH LTD. is more as compared to that of the SOBHA DEVELOPERS LTD. But there is continuous growth in operating margin of SOBHA DEVELOPERS for the past three years.
Gross Profit margin (%) Company/Year DLF 2007 58.91 2008 55.41 2009 58.30
UNITECH Sobha Developers
56.64 19.53
51.33 22.39
56.16 23.98
60 50 40 30 20 10 0 DLF UNITECH Sobha Dev 2007 2008 2009
INTERPRETATION: The gross profit margins for DLF LTD. & UNITECH LTD. are quite similar for the last three years. A continuous growth is noticed in profit margin of SOBHA DEVELOPERS LTD which shows a good indication for the company for getting increased profits in the next year as well.
Net Profit margin (%) Company/Year 2007 2008 2009
DLF UNITECH Sobha Developers
28.38 39.22 13.58
42.49 39.41 15.91
40.36 30.54 11.16
45 40 35 30 25 20 15 10 5 0 DLF UNITECH Sobha Dev
2007 2008 2009
INTERPRETATION: The net profit percentage for the UNITECH LTD. is highest for the year 2007 as compared to other two companies while for the next two years the DLF shows the increased net profit & UNITECH has the decreased pattern.
Leverage ratios:
Long term Debt/Equity Company/Year DLF UNITECH Sobha Developers 2007 0.58 3.08 0.71 2008 0.41 3.07 1.38 2009 0.58 2.36 1.46
3.5 3 2.5 2007 2 2008 1.5 2009 1 0.5 0 DLF UNITECH Sobha Dev
INTERPRETATION: The Debt equity ratio of DLF is better than the other two companies. The Sobha Developer has increased its debt portion in the last two years. The UNITECH is very much far than the ideal debtequity ratio, which is not a good sign for the company.
Fixed Assets Turnover Ratio Company/Year DLF UNITECH Sobha Developers 2007 3.01 3.08 5.11 2008 3.60 3.07 5.25 2009 1.46 2.36 3.40
Liquidity ratios:
Current Ratio Company/Year DLF UNITECH Sobha Developers 2007 2.50 0.94 1.41 2008 4.85 1.24 2.56 2009 5.93 0.96 5.70
Quick Ratio Company/Year DLF UNITECH Sobha Developers 2007 1.36 0.93 0.81 2008 3.28 1.24 1.17 2009 3.83 0.96 3.89
4 3.5 3 2.5 2 1.5 1 0.5 0 DLF UNITECH Sobha Dev 2007 2008 2009
CORRELATION10,11
LF Ltd. Correlations REALT Y MktCap ROCE .091 .942 3 .317 .794 3 .317 .794 3 -.415 .728 3 .028 .982 3 3 .731 .478 3 .957 .188 3 3 .898 .290 3 3 3 1 NetWrth .746 .464 3 -.415 .728 3 .731 .478 3 1 PBIT .377 .754 3 .028 .982 3 .957 .188 3 .898 .290 3 1
REALT Pearson Y Correlation Sig. (2-tailed) N MktCap Pearson Correlation Sig. (2-tailed) N ROCE Pearson Correlation Sig. (2-tailed) N NetWrth Pearson Correlation Sig. (2-tailed) N PBIT Pearson Correlation Sig. (2-tailed) N
-.916 .264
3 -.916 .264 3 .091 .942 3 .746 .464 3 .377 .754 3
3 1
INTERPRETATION: There is positive correlation between Realty and the three variables of DLF LTD. i.e. ROCE, Net worth and PBIT. Among these three variables the realty index is having high degree of correlation with Net worth of the company. The market capitalization of DLF is negatively correlated with the Realty index. It can be said that Realty Index majorly affects the Net worth of the company in the positive manner.
UNITECH LTD. Correlations REALT Y MktCap REALT Pearson Y Correlation Sig. (2-tailed) N MktCap Pearson Correlation Sig. (2-tailed) N ROCE Pearson Correlation Sig. (2-tailed) N NetWrth Pearson Correlation Sig. (2-tailed) N PBIT Pearson Correlation Sig. (2-tailed) N 3 3 2 3 3 3 -.839 .367 3 -1.000** . 2 .928 .243 3 .379 .752 3 1.000** . 2 2 1 ROCE NetWrth .928 .243 3 -.576 .609 3 PBIT .379 .752 3 .186 .881 3 1.000** . 2 .696 .510 3 .696 .510 3 1
-.839 -1.000** .367 3 1 . 2 1.000** . 2
1 -1.000** . 2 1
-.576 -1.000** .609 3 .186 .881 . 2 1.000** .
**. Correlation is significant at the 0.01 level (2-tailed). INTERPRETATION: The correlation between Net worth of UNITECH LTD. and the Realty index is highest is positive side while the Market capitalization and ROCE of the company are negatively correlated with the Realty Index. It can be said that Realty Index majorly affects the Net worth of the company in the positive manner.
SOBHA DEVELOPERS LTD. Correlations REALT Y MktCap REALT Pearson Y Correlation Sig. (2-tailed) N MktCap Pearson Correlation Sig. (2-tailed) N ROCE Pearson Correlation Sig. (2-tailed) N NetWrth Pearson Correlation Sig. (2-tailed) N PBIT Pearson Correlation Sig. (2-tailed) N 3 -.999* .024 3 -.673 .530 3 .945 .213 3 -.167 .893 3 3 .644 .555 3 -.956 .189 3 .130 .917 3 3 -.392 .743 3 .842 .362 3 3 .165 .894 3 3 1 -.999* .024 3 1 ROCE -.673 .530 3 .644 .555 3 1 NetWrth .945 .213 3 -.956 .189 3 -.392 .743 3 1 PBIT -.167 .893 3 .130 .917 3 .842 .362 3 .165 .894 3 1
*. Correlation is significant at the 0.05 level (2-tailed). INTERPRETATION: There is negative correlation between the three variables (MktCap, ROCE & PBIT) and the Realty index at BSE. But a positive Correlation is
noticed between Net worth of the company and the Realty Index. It shows that Realty Index majorly affects the Net worth of the company in the positive manner.
REGRESSION3,7,11 DLF LTD.
Independent Variable: BSE-Realty Dependent Variable: Market Capitalization Model Summaryb Mode l 1 R .916a R Square .838 Adjusted R Square .676 Std. Error of the Estimate 24713.291
a. Predictors: (Constant), REALTY b. Dependent Variable: MktCap
INTERPRETATION: Since the value of R square is close to 1 i.e. (.838), the Market Capitaliation is highly dependent on the Realty movements.
Independent Variable: BSE-Realty Dependent Variable: Return on capital employed
Model Summaryb Model 1 R .091a R Square .008 Adjusted R Square -.983 Std. Error of the Estimate 2750.748
a. Predictors: (Constant), REALTY b. Dependent Variable: ROCE
INTERPRETATION: The value of R square is .008 which shows that ROCE is very less dependent on the Realty movements.
Independent Variable: BSE-Realty Dependent Variable: Net Worth
Model Summaryb Model 1 R .746a R Square .556 Adjusted R Square .113 Std. Error of the Estimate 6096.902
a. Predictors: (Constant), REALTY b. Dependent Variable: NetWrth
INTERPRETATION: Since the value of R square is .556, the Net Worth of DLF LTD. is moderatly dependent on the Realty movements.
Independent Variable: BSE-Realty Dependent Variable: Profit before Interest and Tax
Model Summaryb Model 1 R .377

a
R Square .142
Adjusted R Square -.716
Std. Error of the Estimate 1715.07961
a. Predictors: (Constant), REALTY b. Dependent Variable: PBIT
INTERPRETATION: The value of R square is .142, thus the PBIT of DLF LTD. is Less dependent on the Realty movements.
UNITECH LTD.
Independent Variable: BSE-Realty Dependent Variable: Market Capitalization

a
R Square .704
Adjusted R Square
Std. Error of the Estimate
.407 15324.49809
INTERPRETATION: Since the value of R square is close to 1 i.e. (.861), the Net Worth Of UNITECHLTD. is highly dependent on the Realty movements.
Independent Variable: BSE-Realty Dependent Variable: Profit before Interest and Tax

a
R Square .144
Adjusted R Square -.712
INTERPRETATION: the value of R square is .144, the PBIT of UNITECH LTD. is less dependent on the Realty movements.
SOBHA DEVELOPERS LTD. Independent Variable: BSE-Realty Dependent Variable: Market Capitalization
Independent Variable: BSE-Realty Dependent Variable: Return on Capital Employed
a. Predictors: (Constant), REALTY b. Dependent Variable: ROCE INTERPRETATION: Since the value of R square is close .452 which shows that the ROCE is moderately dependent on the Realty movements.

a
R Square .892
Adjusted R Square .785
INTERPRETATION: Since the value of R square is close to 1 i.e. (.892), the Net Worth is highly dependent on the Realty movements.
Independent Variable: BSE-Realty Dependent Variable: Profit Before Interest and Tax
INTERPRETATION: the value of R square is .028 which shows that the PBIT of this company is less on the Realty movements.
ANNOVA15,16 DLF LTD. 1. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the Market Capitalisation. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the Market Capitalisation.
ANOVAb Model 1 Regression Residual Total Sum of Squares 3.163E9 6.107E8 3.774E9 df 1 1 2 Mean Square 3.163E9 6.107E8 F 5.180 Sig. .264a
INTERPRETATION:
As the value of F > sig.value, so we accept the alternate
hypothesis which shows that there is significant relation between Mean value of BSERealty and Market Capitalisation of DLF.
2. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the ROCE of DLF LTD. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the ROCE of DLF LTD.
ANOVAb Model 1 Regression Residual Total Sum of Squares 63198.537 7566611.986 7629810.523 df 1 2 Mean Square 63198.537 F .848 Sig. .682a
1 7566611.986
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and ROCE of DLF.
3. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the Net Worth. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the Net Worth.
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and Net worth of DLF.
4. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the PBIT of DLF LTD. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the PBIT of DLF LTD.
ANOVAb Model 1 Regression Residual Total Sum of Squares 486513.904 2941498.069 3428011.973 df 1 2 Mean Square 486513.904 F .965 Sig. .754a
1 2941498.069
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and PBIT of DLF.
UNITECH LTD
1. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the Market Capitalisation. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the Market Capitalisation.
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and Market Capitalisation of Unitech Ltd.
2. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the ROCE. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the ROCE.
ANOVAb Model 1 Regression Residual Total Sum of Squares 245483.238 .000 245483.238 df 1 0 1 Mean Square 245483.238 . F 2.564. Sig. .355a
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and ROCE of Unitech Ltd.
3. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the Net worth. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the Market Net Worth.
NOVAb Model 1 Regression Residual Total Sum of Squares 1252917.429 201540.324 1454457.753 df Mean Square 1 1252917.429 1 2 201540.324 F 6.217 Sig. .243a
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and Net Worth of Unitech Ltd.
4. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the PBIT. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the Market PBIT.
ANOVAb Model 1 Regression Residual Total Sum of Squares 3577.550 21306.120 24883.670 df 1 1 2 Mean Square 3577.550 21306.120 F .968 Sig. .752a
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and PBIT of Unitech Ltd.
SOBHA DEVELOPERS LTD.
1. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the Market Capitalisation. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the Market Capitalisation. ANOVAb Model 1 Regression Residual Total Sum of Squares 1.472E7 21442.519 1.474E7 df 1 1 2 Mean Square F Sig. .024a
1.472E7 686.647 21442.519
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and Market Capitalization of Sobha Developers Ltd.
2. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the ROCE. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the ROCE. ANOVAb Model 1 Regression Residual Total Sum of Squares 7130.754 8636.215 15766.969 df 1 1 2 Mean Square 7130.754 8636.215 F .826 Sig. .530a
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and ROCE of Sobha Developers Ltd.
3. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the Net Worth. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the Net Worth.
ANOVAb Model 1 Regression Residual Total Sum of Squares 46181.274 5571.580 51752.854 df 1 1 2 Mean Square 46181.274 5571.580 F 8.289 Sig. .213a
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and Net Worth of Sobha Developers Ltd.
4. Null Hypothesis: There is no significant relation between Mean value of BSE-Realty and the PBIT. Alternate Hypothesis: There is significant relation between Mean value of BSE-Realty and the PBIT.
ANOVAb Model 1 Regression Residual Total Sum of Squares 146.552 5083.935 5230.487 df 1 1 2 Mean Square 146.552 5083.935 F 2.029 Sig. .893a
INTERPRETATION:
hypothesis which shows that there is significant relation between Mean value of BSERealty and PBIT of Sobha Developers Ltd.
GARCH MODEL The positive correlation between volumes and volatility found for most of the exchange is unlikely to be a reflection of changes in the number of traders active in these markets. These changes appear rather to have occurred in the last 2009, when banks increasingly moved into emerging markets, and after the recession, when the sharp fall in turnover was accompanied by a significant decline in the number of traders. A more plausible explanation for the positive correlation between turnover and volatility is that both variables are driven by the arrival of new information. To test this hypothesis, I split volatility and trading volumes into expected and unexpected components. I use estimates from a GARCH(1,1) model to describe expected volatility. This model appears to fit the time series well. Ideally, volatility implied in option prices could be used, since there is evidence that it outperforms GARCH models in providing forecasts of future volatility.However, future contracts for currencies of emerging market countries are not very liquid. The GARCH(1,1) model can be written as: Following a practice common in the literature, the GARCH model is fitted on the entire time series, thus yielding in sample forecasts. where Rt is the return, its mean and ht its conditional variance at time t.
DLF Ltd.
GARCH(1,1) estimation of 12374.83 Std. Error zStatistic
Coefficient Omega alpha_1 beta_1
Prob.
17723676 5.01E+08 0.035375 0.971781 0.022308 26.89434 0.000829 0.999338 0.012179 0.800851 0.015207 0.987867
INTERPRETATION: The value of alpha & beta is very less of DLF. Lesser the value of al alpha & beta better the position of company.
Residualplot
3 2.5 2 1.5 1 0.5 0 -0.5 0 1 2 3 4 5 6 7 Residual
Prediction
4450 4400 4350 4300 4250 4200 0 1 2 3 4 5 6 7 Prediction
INTERPRETATION: There could be seen less fluctuation the daily settlement prices of currency future in BSE & the same is represented by the value of alpha & beta on expiration day. The more fluctuations in the daily settlement price represent the inefficiency on expiration day.
Unitech Ltd.
GARCH(1,1) estimation of 2859.57 Std. Error zStatistic
Coefficient omega alpha_1 beta_1
Prob.
15120307 5.54E+08 0.027297 0.978223 0.298376 25.62832 0.011642 0.990711 0.021549 43.44086 0.000496 0.999604
INTERPRETATION: The value of alpha & beta is less but more than that of the DLF Ltd. thus the position of Unitech Ltd. is not as good as DLF.
Residualplot
2.5
1.5
Residual
0.5
0 0 -0.5 1 2 3 4 5 6 7
Prediction
4720 4710 4700 4690 4680 4670 4660 4650 4640 4630 0 1 2 3 4 5 6 7 Prediction
INTERPRETATION: There could be seen less fluctuation the daily settlement prices of currency future in BSE & the same is represented by the value of alpha & beta on expiration day. The more fluctuations in the daily settlement price represent the inefficiency on expiration day. Sobha Developers Ltd.
GARCH(1,1) estimation of 1136.96 zStatistic
Coefficient Std. Error omega alpha_1 beta_1
Prob.
1242380 61980926 0.020045 0.984008 0.226894 38.50287 0.005893 0.995298 0.001158 3.389324 0.000342 0.999727
INTERPRETATION: The value of alpha & beta is less but more than that of the DLF Ltd. thus the position of Sobha Developers Ltd. is not as good as DLF. But better than
Unitech Ltd.
Residualplot
3 2.5 2 1.5 Residual 1 0.5 0 0 -0.5 1 2 3 4 5 6 7
Prediction
1268.8 1268.6 1268.4 1268.2 Prediction 1268 1267.8 1267.6 0 1 2 3 4 5 6 7
INTERPRETATION: There could be seen less fluctuation the daily settlement prices of currency future in BSE & the same is represented by the value of alpha & beta on expiration day. The more fluctuations in the daily settlement price represent the inefficiency on expiration day.
LIMITATIONS OF THE STUDY
TIME CONSTRAINT: - The duration of the research was not sufficient to lay down thorough emphasis on the various financial aspects of the companies. RESOURCE CONSTRAINT: Resources available for the analysis was not sufficient as mainly the annual report of the companies was available which was not revealing the detailed aspects of financial matters in the company. PERIOD OF ANALYSIS: The period of three financial years was taken for the analysis and this duration was not sufficient to conclude about all the aspect. SECONDARY DATA: The data used for the analysis was secondary in nature as it was taken from the annual reports of the companies. WIDE AREA TO STUDY: There was the wide scope of the study but could not be covered completely due to the lack of time and resources.
RESULTS & FINDINGS
RESULTS & FINDINGS After studying relation of the real estate companies on BSE Sensex and BSE Realty indices I have found the result about which I was not aware before study. The results which I want to discuss are as follow: There is an acute fall in the share market not only of India but worldwide. But real estate sector is not much affected. Indian stock market BSE Sensex rose up to the level of 20000 in Dec, 2008 and fall to 9000 in Dec 2009. It fall near to 8000 in Jan 2010 There is normal growth all around the world. In India also there is also a rise is the price of land and houses. As DLF has lowest beta as come forward by the GARCH model it has less risk as compared to other two companies. It has more return per unit of risk and show more resilience. The Sobha Developers Ltd. has less market capitalization, net worth and returns as compared to other two companies. But the satisfying feature is that it is growing on a continuous basis. As clear from various statistical and analytical tools there is least movement in Unitech share price as it clearly indicates that there is less price movement. As India is a developing country and there is a need of infrastructure for growing so future of real estate sector seems to be bright.
POLICY IMPLICATIONS
Policy Implications
Real Estate Sector always shows the growing trend. The turmoil in the market has affected almost every sector greatly. But the Real estate companies survived well even those adverse situations. As India is a developing country and there is a need infrastructure for growing so future of Real Estate sector seems to be bright. Private assistance are also coming forward to the Real Estate Sector. The future of the Oil Sector seems to be bright because India is one of the booming economy has a cascading effect. So Government should take proper measure to be taken to revive the economy and boost the Real estate sector sector.
From the study of last 3 years it can be seen that the profitability Ratio has an increasing trend of Sobha Developers Ltd., which shows that the company may acquire profitable position and will stand equal to the other companies of this sector. The real estate companies are following different measures for their improvement & recovery.
SUGGESTIONS
Suggestions
As per the findings of the study following are the suggestions to the companies: The Real Estate Sector always shows the growing trend. The turmoil in the market has affected almost every sector greatly. But the Real estate companies survived well even those adverse situations. The Government should take step to promote this sector in India by increasing credit supply. The future of the Real Estate Sector seems to be bright because India is one of the booming economies has a cascading effect. So proper measure should to be taken to revive the economy and boost the Real Estate Sector. From the study of last 3 years I can conclude that the profitability Ratio has an increasing trend and also the Beta of DLF LTd. is less than other companies studied i.e. UNITECH and Sobha Developers Ltd. It means the risk and returns are more sensitive to BSE Sensex and BSE Realty whereas the other companies has lowest beta.
BIBLIOGRAPHY
BIBLIOGRAPHY BOOKS:1. Gupta S.P, (Edition 3rd) Business Statistics New Delhi, Sultan Chand & Sons,2005,p.no.(379,381,399).: 2. Gupta S.K ,(Edition 2nd), Accounting Information, New Delhi, Himalya Publishing House, P. no.(10.1-10.8) . 3. Hooda R.P, (Edition 2nd), Statistics for Business and Economics Delhi, Dhanpat rai & co., P. no. (209-212) 4. Maheshwari, S.N, (Edition3rd), Advanced Accounting, New Delhi, Tata Mcgraw hill 2005, p. no.(B-40 to B48) 5. Ciaran Walsh, (Edition 3rd), Key Management Ratios, Delhi, Prentic hall of India, P.No. (113-122) 6. Jain T.R, (Edition no.135-138) 7. Hair, Bush, Ortinau, (Third Edition), Marketing Research, New Delhi, Tata Mcgrw hill, P. No. 352-356:- Definition of Construct, P. No. (328-342) 8. Hair, Black, Tatham, (Third Edition), Multivariate Data Analysis,New Delhi, Tata Mcgraw hill, P.No (407-482) 9. Nargundkar, Rajendra, (2nd Edition), Marketing Research,New Delhi,New International Ltd 10. Sekaran,Uma,, (Edition 4th),Research Methods for Busines P.No (117-130):Elements of RD , P.No 196-207 11. Beri,G.C. , (Third Edition), Business Statistics,New Delhi,Tata Mcgraw hill, p.no. (234-266).
2nd)
, Statistics for MBA, New Delhi, V.K. Publications, P.
JOURNALS & MAGAZINES
13. Srinivasan P. & Bhat K. Sham, (July-Sept 2009), An Empirical Analysis of Foreign Institutional Investment and Stock Market Returns in India'', Foreign Trade Review, Vol.XLIV no. 2, pp. 60-75 14. Bhayani Sanjay J., (Jan-Mar 2009), Dividend Payout Policy- An Empirical Analysis of Indian Corporate, The Indian Journal of Commerce. Vol. 62 No.1. 15. Moyen Nathalie, (Oct.2004), Investment-Cash Flow Sensitivities: Constrained versus Unconstrained Firms, Journal of Finance Vol. 59 No. 5, pp. 2061-2063. 16. Koch Adam S. and Sun Amy X., (Oct.2004), Dividend Changes and the persistence of past earning changes, Journal of Finance Vol. 59 No. 5, pp. 20932096. 17. Jhonson Woodrow T., (Aug. 2004), Employee Stock Option, Corporate Taxes and Debt Policy Journal of Finance, Vol.59. 18. Wang Kevin Q., (Aug 2009), Financially Constraint Stock Return Journal of Finance, Vol.64. 19. Jacob Kris, (Dec 2007), Long term reversals-overreaction of taxes Journal of Finance, Vol. 62. 20. M. T. Raju, Anirban Ghosh, (April 2004), Stock Market Volatility An International Comparison Working Paper S.No.8. 21. Christopher R. Blake, Edwin J. Elton, Martin J. Gruber (1995). Fundamental Economic Variables, Expected Returns, and Bond Fund PerformanceVolume: 50, Issue: 4, p.no.17 22. Srinivasan P. & Bhat K. Sham, (July-Sept 2009), An Empirical Analysis of Foreign Institutional Investment and Stock Market Returns in India, Foreign Trade Review Vol.XLIV no.2, pp (60-75). WEBSITES 23. http://www.dlf.in/dlf/wcm/connect/dlf_common/DLF_SITE/HOME/TOP+LINK/In vestors/Overview 24. http://sify.com/finance/stockpricequote. 25. http://money.rediff.com/companies/dlf-ltd/13520062/bse/year/chart
26. http://www.businessworld.in/bw/2009_11_24_India_Housing_Picking_No_Full_ Recovery_Yet_DLF.html. 27. http://www.businessworld.in/bw/2009_09_21_DLF_May_Exit_Luxury_Hotel_Ch ain.html 28. http://www.capitaline.com 29. www.corporateinformation.com/Company-Snapshot.aspx 30. http://www.bseindia.com/histdata/stockprc2.asp31.
http://en.wikipedia.org/wiki/Infrastricture industry#History.
32. http://www.bseindia.com/histdata/stockprc2.asp:33. http://money.rediff.com/companies/dlf-ltd/13520062/bse/year/chart:provide

34.
http://www.bseindia.com/mktLive/ScripWiseCorpAction.asp?scrip_cd=500547&s cripname=Sobha%20Developers%20Ltd.
35. http://sify.com/finance/stockpricequote. 36. www.datamonitor.com/companies/company/?pid=A9CF400E-87FC-4C20-928537. www.investing.businessweek.com/research/stocks/snapshot/snapshot.asp?symbol =ATCY.BO 38. http://www.domain-b.com/news_review/200702feb/20070222newsb.html 39. http://business.gov.in/Industry_services/infrastructure_industry.php 40. myiris.com/shares/company/snapShotShow.php?icode=ATLCYCIN&select=1 51k
ANNEXURE
Annexure- I T-Test
DLF LTD. One-Sample Statistics N REALT Y MktCap 3 3 Mean 1910.82 7.77E4 Std. Deviation 1272.711 43441.000 Std. Error Mean 734.800 25080.673
One-Sample Test Test Value = 0 Sig. (2tailed) .122 .090 Mean Difference 1910.820 77716.457 95% Confidence Interval of the Difference Lower -1250.77 -30196.97 Upper 5072.41 185629.88
t REALT Y MktCap 2.600 3.099
Df 2 2
UNITECH LTD. One-Sample Statistics N REALT Y MktCap Mean 3 1.9108E3 Std. Deviation 1272.71083 Std. Error Mean 734.79994
3 2.7315E4 19901.63072 11490.21185 One-Sample Test Test Value = 0 Sig. (2tailed) 2 .122 Mean Difference 1910.82000 95% Confidence Interval of the Difference Lower -1250.7690 Upper 5072.4090
t REALT Y 2.600
df
One-Sample Test Test Value = 0 Sig. (2tailed) 2 2 .122 Mean Difference 1910.82000 95% Confidence Interval of the Difference Lower -1250.7690 Upper 5072.4090 76753.4481
df
.141 27315.05667 -22123.3347
Sobha Developers Ltd. One-Sample Statistics N REALT Y MktCap Mean 3 1.9108E3 3 3.6002E3 Std. Deviation 1272.71083 2715.22510 Std. Error Mean 734.79994 1567.63594
Df
Annexure II Regression DLF LTD. Variables Entered/Removedb Model 1 Variables Entered REALTYa Variables Removed Method . Enter
a. All requested variables entered. b. Dependent Variable: MktCap Model Summaryb Model 1 R .916a R Square .838 Adjusted R Square .676 Std. Error of the Estimate 24713.291
ANOVAb Model 1 Regression Residual Total Sum of Squares 3.163E9 6.107E8 3.774E9 Df 1 1 2 Mean Square 3.163E9 6.107E8 F 5.180 Sig. .264a
a. Predictors: (Constant), REALTY b. Dependent Variable: MktCap Coefficientsa Unstandardized Coefficients Model 1 (Constant) REALTY B 137428.037 -31.249 Std. Error 29865.286 13.730 -.916 Standardized Coefficients Beta t 4.602 -2.276 Sig. .136 .264
a. Dependent Variable: MktCap
Residuals Statisticsa Minimum Maximum Predicted Value Std. Predicted Value Standard Error of Predicted Value Adjusted Predicted Value Residual Std. Residual Stud. Residual Deleted Residual Stud. Deleted Residual Mahal. Distance Cook's Distance Centered Leverage Value 33030.43 -1.124 1.540E4 78623.66 -1.468E4 -.594 -1.000 -1.313E5 . .110 .317 .055 1.09E5 .792 Mean 7.77E4 .000 Std. Deviation 39771.185 1.000 4437.078 41680.211 17474.936 .707 1.155 81561.421 . .577 7.503 .289 N 3 3 3 3 3 3 3 3 0 3 3 3
2.427E4 1.985E4 1.60E5 1.933E4 .782 1.000 . 1.262 13.603 .631 1.25E5 .000 .000 -.333 . .667 4.946 .333
3.159E4 -4.709E4
Residuals Statisticsa Minimum Maximum Predicted Value Std. Predicted Value Standard Error of Predicted Value Adjusted Predicted Value Residual Std. Residual Stud. Residual Deleted Residual Stud. Deleted Residual Mahal. Distance Cook's Distance Centered Leverage Value 33030.43 -1.124 1.540E4 78623.66 -1.468E4 -.594 -1.000 -1.313E5 . .110 .317 .055 1.09E5 .792 Mean 7.77E4 .000 Std. Deviation 39771.185 1.000 4437.078 41680.211 17474.936 .707 1.155 81561.421 . .577 7.503 .289 N 3 3 3 3 3 3 3 3 0 3 3 3
2.427E4 1.985E4 1.60E5 1.933E4 .782 1.000 . 1.262 13.603 .631 1.25E5 .000 .000 -.333 . .667 4.946 .333
3.159E4 -4.709E4
UNITECH LTD. Variables Entered/Removedb Model 1 Variables Entered REALTYa Variables Removed Method . Enter
a. All requested variables entered. b. Dependent Variable: MktCap Model Summaryb Model 1 R .839a R Square .704 Adjusted R Square Std. Error of the Estimate
.407 15324.49809
a. Predictors: (Constant), REALTY b. Dependent Variable: MktCap ANOVAb Model 1 Regression Residual Total Sum of Squares 5.573E8 2.348E8 7.921E8 Df 1 1 2 Mean Square 5.573E8 2.348E8 F 2.373 Sig. .367a
a. Predictors: (Constant), REALTY b. Dependent Variable: MktCap Coefficientsa Unstandardized Coefficients Model 1 (Constant) REALTY B 52377.493 -13.116 Std. Error 18519.206 8.514 -.839 Standardized Coefficients Beta t 2.828 -1.541 Sig. .216 .367
Residuals Statisticsa Minimum Maximum Predicted Value Std. Predicted Value Standard Error of Predicted Value Adjusted Predicted Value Residual -1.124 9547.721 .792 Mean .000 Std. Deviation 1.000 2751.394 N 3 3 3 3
8.5592E3 4.0542E4 2.7315E4 16692.95613
1.505E4 1.231E4
2.5238E4 8.7062E4 5.6515E4 30918.15565 1.19867E 9.10128E 4 3 -.594 -1.000 .782 1.000
.00000 10836.05651 .000 -.333 .707 1.155
3 3 3 3 0 3 3 3
Std. Residual Stud. Residual Deleted Residual
1.95917E 8.13881E 2.91998E 50575.53237 4 4 4 . .110 .317 .055 . 1.262 13.603 .631 . .667 4.946 .333 . .577 7.503 .289
Stud. Deleted Residual Mahal. Distance Cook's Distance Centered Leverage Value
SOBHA DEVELOPERS LTD. Variables Entered/Removedb Model 1 Variables Entered REALTYa Variables Removed Method . Enter
a. All requested variables entered. b. Dependent Variable: MktCap Model Summaryb Model 1 R .999a R Square .999 Adjusted R Square .997 Std. Error of the Estimate 146.43264
a. Predictors: (Constant), REALTY b. Dependent Variable: MktCap ANOVAb Model 1 Regression Residual Total Sum of Squares 1.472E7 21442.519 1.474E7 df 1 1 2 Mean Square F Sig. .024a
1.472E7 686.647 21442.519
Coefficientsa Unstandardized Coefficients Model 1 (Constant) REALTY B 7673.781 -2.132 Std. Error 176.960 .081 -.999 Standardized Coefficients Beta t 43.365 -26.204 Sig. .015 .024
Residuals Statisticsa Minimum Maximum Predicted Value Std. Predicted Value Standard Error of Predicted Value Adjusted Predicted Value Residual -1.124 91.233 .792 Mean .000 Std. Deviation 2713.25010 1.000 26.291 3090.41381 N 3 3 3 3
551.6183 5.7501E3 3.6002E3
143.813 117.619
5.5905E3 3.3211E3 1.9851E2 1.14539E 86.96688 2 -.782 -1.000 .594 1.000 .00000 .000 .333
103.54352 .707 1.155 483.27253 . .577 7.503 .289
3 3 3 3 0 3 3 3
Std. Residual Stud. Residual Deleted Residual
7.77701E 2.79018E 1.87208E 2 2 2 . .110 .317 .055 . 1.262 13.603 .631 . .667 4.946 .333
Stud. Deleted Residual Mahal. Distance Cook's Distance Centered Leverage Value
ANNEXURE-III Financial Overview DLF Ltd. Industry :Construction - Housing Large (Rs in Crs) 200903 339.44 12374.83 21989.8 1968.4 15560.22 18711.78 3151.56 200803 340.96 11269.15 19655.55 1533.71 14559.56 18345.94 3786.38 200703 305.88 652.8 7422.09 365.58 5659.32 9442.25 3782.93
Equity Paid Up Networth Capital Employed Gross Block Net Working Capital ( Incl. Def. Tax) Current Assets ( Incl. Def. Tax) Current Liabilities and Provisions ( Incl. Def. Tax) Total Assets/Liabilities (excl Reval & W.off) Gross Sales Net Sales Other Income Value Of Output Cost of Production Selling Cost PBIDT PBDT PBIT PBT PAT CP Revenue earnings in forex Revenue expenses in forex Capital earnings in forex Capital expenses in forex Book Value (Unit Curr) Market Capitalisation CEPS (annualised) (Unit Curr) EPS (annualised) (Unit Curr) Dividend (annualised%) Payout (%) Cash Flow From Operating Activities Cash Flow From Investing Activities
25141.36 23441.93 11205.02 2827.9 5532.84 1133.47 2827.9 5532.84 1133.47 1022.2 529.01 297.49 2827.9 5532.84 1133.47 981.05 2290.59 307.75 90.88 62.14 73.58 2732.7 3591.25 987.42 1922.85 3143.6 631.17 2618.62 3565.57 977.98 1808.77 3117.92 621.73 1547.77 2574.59 408.31 1661.85 2600.27 417.75 99.28 120.31 199.04 135.68 113.84 59.5 0 0 0 0 0 0.35 72.91 66.1 4.27 28377.18 110218.55 0 9.62 14.57 2.35 8.95 14.42 2.29 100 200 100 22.35 27.74 97.32 1365.86 -1499.93 -2679.05 -1151.17 -6487.88 -629.17
Cash Flow From Financing Activities Rate of Growth (%) ROG-Net Worth (%) ROG-Capital Employed (%) ROG-Gross Block (%) ROG-Gross Sales (%) ROG-Net Sales (%) ROG-Cost of Production (%) ROG-Total Assets (%) ROG-PBIDT (%) ROG-PBDT (%) ROG-PBIT (%) ROG-PBT (%) ROG-PAT (%) ROG-CP (%) ROG-Revenue earnings in forex (%) ROG-Revenue expenses in forex (%) ROG-Market Capitalisation (%)
-437.54
8945.9
3286.33
9.81 11.88 28.34 -48.89 -48.89 -57.17 7.25 -23.91 -38.83 -26.56 -41.99 -39.88 -36.09 -17.48 19.18 -74.25
1626.28 164.83 319.53 388.13 388.13 644.3 109.21 263.7 398.06 264.59 401.49 530.55 522.45 -39.55 91.33 0
1.22 102.85 235.67 15.14 15.14 -49.06 122.91 98.3 79.41 97.95 78.71 79.53 80.59 78.1 668.73 0
Key Ratios Debt-Equity Ratio 0.76 Long Term Debt-Equity Ratio 0.38 Current Ratio 2.34 Turnover Ratios Fixed Assets Ratio 1.61 Inventory Ratio 0.45 Debtors Ratio 3.37 Interest Cover Ratio 3.23 PBIDTM (%) 96.63 PBITM (%) 92.6 PBDTM (%) 68 CPM (%) 58.77 APATM (%) 54.73 ROCE (%) 12.58 RONW (%) 13.09 Debtors Velocity (Days) 108 Creditors Velocity (Days) 147 Assets Utilisation Ratio (times) Value of Output/Total Assets 0.12 Value of Output/Gross Block 1.61 Intranet Version of Capitaline Coraporate Databases UNITECH LTD.
1.27 0.7 1.93 5.83 1.08 6.76 7.97 64.91 64.44 56.82 47 46.53 26.34 43.19 25 64 0.16 2.42
7.54 6.46 1.91 4.78 0.48 11.32 2.75 87.11 86.28 55.68 36.86 36.02 17.65 62.93 15 57 0.19 2.72
Industry :Construction - Housing Large (Rs in Crs) 200903 200803 200703 324.68 324.68 162.34 2859.57 2143.82 1161 10538.56 10263.28 4768.17 148.63 132.04 99.87 8430.43 8764.56 4176.75 15039.47 15131.43 8422.73 6609.04 6366.87 4245.98
Equity Paid Up Networth Capital Employed Gross Block Net Working Capital ( Incl. Def. Tax) Current Assets ( Incl. Def. Tax) Current Liabilities and Provisions ( Incl. Def. Tax) Total Assets/Liabilities (excl Reval & W.off) Gross Sales Net Sales Other Income Value Of Output Cost of Production Selling Cost PBIDT PBDT PBIT PBT PAT CP Revenue earnings in forex Revenue expenses in forex Capital earnings in forex Capital expenses in forex Book Value (Unit Curr) Market Capitalisation CEPS (annualised) (Unit Curr) EPS (annualised) (Unit Curr) Dividend (annualised%) Payout (%) Cash Flow From Operating Activities Cash Flow From Investing Activities Cash Flow From Financing Activities Rate of Growth (%) ROG-Net Worth (%) ROG-Capital Employed (%)
17147.6 16630.15 9014.15 1837.07 2804.12 2503.97 1837.07 2804.12 2503.97 617.84 165.61 95.67 1833.89 2785.01 2504.48 731.11 1158.76 1021.98 12.11 12.4 6.22 1688.81 1767.48 1543.07 966.68 1374.09 1349.36 1678.77 1758.9 1538.53 956.64 1365.51 1344.82 739.66 1030.68 983.55 749.7 1039.26 988.09 1.68 0 2.16 7.94 14.77 15.5 0 0 0 0 0 0 17.61 13.21 14.3 5673.78 44830.19 31441.2 4.6 6.36 12.09 4.53 6.31 12.03 5 12.5 25 2.78 3.96 4.16 826.31 -3686.44 1755.68 -42.41 -771.21 -117.31 -1051.93 4033.01 2508.19
33.39 2.68
84.65 115.25
417.06 422.09
ROG-Gross Block (%) ROG-Gross Sales (%) ROG-Net Sales (%) ROG-Cost of Production (%) ROG-Total Assets (%) ROG-PBIDT (%) ROG-PBDT (%) ROG-PBIT (%) ROG-PBT (%) ROG-PAT (%) ROG-CP (%) ROG-Revenue earnings in forex (%) ROG-Revenue expenses in forex (%) ROG-Market Capitalisation (%)
12.56 -34.49 -34.49 -36.03 3.11 -4.45 -29.65 -4.56 -29.94 -28.24 -27.86 0 -46.24 -87.34
32.21 11.99 11.99 11.1 84.49 14.54 1.83 14.32 1.54 4.79 5.18 -100 -4.71 42.58
20.08 283.28 283.28 100.67 173.31 940.08 1113.24 959.16 1143.82 1312.33 1258.39 125 25.2 803.73
Key Ratios Debt-Equity Ratio 3.16 Long Term Debt-Equity Ratio 1.6 Current Ratio 1.45 Turnover Ratios Fixed Assets Ratio 13.09 Inventory Ratio 0.23 Debtors Ratio 2.4 Interest Cover Ratio 2.32 PBIDTM (%) 91.93 PBITM (%) 91.38 PBDTM (%) 52.62 CPM (%) 40.81 APATM (%) 40.26 ROCE (%) 16.14 RONW (%) 29.57 Debtors Velocity (Days) 152 Creditors Velocity (Days) 571 Assets Utilisation Ratio (times) Value of Output/Total Assets 0.11 Value of Output/Gross Block 13.07 Intranet Version of Capitaline Coraporate Databases
3.55 1.55 1.37 24.18 0.49 6.7 4.47 63.03 62.73 49 37.06 36.76 23.4 62.37 88 560 0.14 14.76
3.1 1.59 1.31 27.36 0.8 28.77 7.94 61.62 61.44 53.89 39.46 39.28 54.16 141.97 86 511 0.18 15.82
Sobha Developers Ltd
Industry :Construction - Housing Large (Rs in Crs) 200903 72.9 1136.9 6 3049.1 4 293.02 2788.2 3324.2 7 536.07 3585.2 1 983.87 974.74 16.96 1244.3 9 866.57 19.45 286.72 181.51 250.69 145.48 109.68 145.71 0 8.1 0 0.79 149.45 579.19 19.82 14.88 10 6.72 200803 72.9 988.34 2751.3 9 271.13 2507.8 3075.7 2 567.92 3319.3 1 1442.9 8 1429.1 4 7.13 1835.4 1329.5 18.67 367.38 305.89 332.34 270.85 228.3 263.34 0.02 12.07 0 5.6 135.57 4384.2 1 35.01 30.21 65 21.53 200703 72.9 815.54 1399.2 2 233.37 1151.6 7 1721.1 4 569.47 1968.6 9 1194.7 5 1186.4 7 5.84 1288.2 913.04 7.83 262.56 210.96 238.17 186.57 161.52 185.91 0.05 17.24 0 8.39 111.87 5837.1 24.49 21.15 55 26.01
Equity Paid Up Networth Capital Employed Gross Block Net Working Capital ( Incl. Def. Tax) Current Assets ( Incl. Def. Tax) Current Liabilities and Provisions ( Incl. Def. Tax) Total Assets/Liabilities (excl Reval & W.off) Gross Sales Net Sales Other Income Value Of Output Cost of Production Selling Cost PBIDT PBDT PBIT PBT PAT CP Revenue earnings in forex Revenue expenses in forex Capital earnings in forex Capital expenses in forex Book Value (Unit Curr) Market Capitalisation CEPS (annualised) (Unit Curr) EPS (annualised) (Unit Curr) Dividend (annualised%) Payout (%)
Cash Flow From Operating Activities Cash Flow From Investing Activities Cash Flow From Financing Activities Rate of Growth (%) ROG-Net Worth (%) ROG-Capital Employed (%) ROG-Gross Block (%) ROG-Gross Sales (%) ROG-Net Sales (%) ROG-Cost of Production (%) ROG-Total Assets (%) ROG-PBIDT (%) ROG-PBDT (%) ROG-PBIT (%) ROG-PBT (%) ROG-PAT (%) ROG-CP (%) ROG-Revenue earnings in forex (%) ROG-Revenue expenses in forex (%) ROG-Market Capitalisation (%) Key Ratios Debt-Equity Ratio Long Term Debt-Equity Ratio Current Ratio Turnover Ratios Fixed Assets Ratio Inventory Ratio Debtors Ratio Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) Debtors Velocity (Days) Creditors Velocity (Days) Assets Utilisation Ratio (times) Value of Output/Total Assets
196.27 -39.63 -148.19
1056.4 6 -486.84 -18.98 -162.25 1019.6 8 672.48
15.04 10.82 8.07 -31.82 -31.8 -34.82 8.01 -21.96 -40.66 -24.57 -46.29 -51.96 -44.67 -100 -32.89 -86.79
21.19 96.64 16.18 20.78 20.45 45.61 68.61 39.92 45 39.54 45.17 41.34 41.65 -60 -29.99 -24.89
536.64 149.89 86.46 91.09 89.77 87.42 96.34 85.62 76.51 85.16 74.85 82.53 83.51 0 659.47 0
1.73 1.3 3.19 3.49 1.07 2.19 2.38 29.14 25.48 18.45 14.81 11.15 8.64 10.32 167 230 0.36
1.3 0.97 2.78 5.72 2.48 4.1 5.4 25.46 23.03 21.2 18.25 15.82 16.01 25.31 95 35 0.45
1.06 0.95 2.35 6.66 3.78 10.03 4.62 21.98 19.93 17.66 15.56 13.52 24.31 34.14 81 22 0.54
Value of Output/Gross Block 4.41 4.73 Intranet Version of Capitaline Coraporate Databases
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A Research Project On

Under the Guidance of: MS. SHAILI GUPTA Faculty, MBA

E-mail: info@timt.ac.in, Web Site: www.timt.ac.in

MktCap. Year End Rs. Cr.

Rs.Cr. Rs. Cr.

49606.52 2386.57 2448.07 17641.29 72082.45

72.9 105.1 169.7 30.4 -

2,827.9 1,548.2 40.99 733.54 974.74 112.6 109.64 2500.83

1,837.0 730.3 6414.2

2008 (Rs. Cr.) 2143.82 62.37 10263.28 23.4 1758.9 44830.19

2007 (Rs. Cr.) 1161 141.97 4768.17 54.16 1538.53 31441.2

Sobha Developers Ltd33,39

 Net worth,  Market Capitalization,  Return on capital employed,  PBIT  Beta

and indices movement is taken.

www.investing.businessweek.com/research/stocks/snapshot/snapshot.asp?symbo3 2l=ATCY.BO http://www.domain-b.com/news_review/200702feb/20070222newsb.html34 http://business.gov.in/Industry_services/infrastructure_industry.php35 myiris.com/shares/company/snapShotShow.php?icod36e=ATLCYCIN&select=1 51k

10 Report Presenta tion

11 Manager ial decision making

RESEARCH DESIGN IN STUDY

T REALT Y MktCap 2.600 3.099

T REALT Y NetWrth 2.600 2.167

T REALT Y ROCE 2.600 2.735

T REALT Y PBIT 2.600 3.158

T REALT Y MktCap 2.600 2.377

.141 27315.05667 -22123.3347

T REALT Y NetWrth 2.600 4.173

T REALT Y ROCE 2.600 8.289

T REALT Y PBIT 2.600 25.757

T REALT Y MktCap 2.600 2.297

T REALT Y NetWrth 2.600 10.555

T REALT Y ROCE 2.600 6.789

T REALT Y PBIT 2.600 9.271

ANALYTICAL AND STATISTICAL TOOLS

70 60 50 2007 40 2008 30 2009 20 10 0 DLF UNITECH Sobha Dev

UNITECH Sobha Developers

60 50 40 30 20 10 0 DLF UNITECH Sobha Dev 2007 2008 2009

Net Profit margin (%) Company/Year 2007 2008 2009

DLF UNITECH Sobha Developers

28.38 39.22 13.58

42.49 39.41 15.91

40.36 30.54 11.16

45 40 35 30 25 20 15 10 5 0 DLF UNITECH Sobha Dev

2007 2008 2009

6 5 4 3 2 1 0 DLF UNITECH Sobha Dev 2007 2008 2009

6 5 4 3 2 1 0 DLF UNITECH Sobha Dev 2007 2008 2009

3 -.916 .264 3 .091 .942 3 .746 .464 3 .377 .754 3

-.839 -1.000** .367 3 1 . 2 1.000** . 2

-.576 -1.000** .609 3 .186 .881 . 2 1.000** .

REGRESSION3,7,11 DLF LTD.

a. Predictors: (Constant), REALTY b. Dependent Variable: MktCap

Independent Variable: BSE-Realty Dependent Variable: Return on capital employed

a. Predictors: (Constant), REALTY b. Dependent Variable: ROCE

Independent Variable: BSE-Realty Dependent Variable: Net Worth

a. Predictors: (Constant), REALTY b. Dependent Variable: NetWrth

Model Summaryb Model 1 R .377

Adjusted R Square -.716

Std. Error of the Estimate 1715.07961

a. Predictors: (Constant), REALTY b. Dependent Variable: PBIT

Independent Variable: BSE-Realty Dependent Variable: Market Capitalization

Model Summaryb Model 1 R .839

Std. Error of the Estimate

a. Predictors: (Constant), REALTY b. Dependent Variable: MktCap

Independent Variable: BSE-Realty Dependent Variable: Net Worth

Net worth, Market Capitalization, Return on capital employed, PBIT Beta

-.839 -1.000 .367 3 1 . 2 1.000 . 2

-.576 -1.000 .609 3 .186 .881 . 2 1.000 .