SUMMER TRAINING REPORT

on

Analysis of Mid-Cap Equity Stocks for Stock Pitch Presentation

Submitted in partial fulfillment of the requirements

for the award of the degree of
Master of Business Administration (MBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Project Guide: Submitted By:

Dr. Mani Manjari Samarth Sood
Associate Professor 2022-23

Bhagwan Parshuram Institute of Technology

School of Business Administration

New Delhi -110089

Batch 2021 – 23
 DECLARATION

I, Mr. Samarth Sood , En. Roll No. : 01320803921 declare that the Summer Training
Report (Paper Code MS-201 entitled “ Analysis of Mid-Cap Equity Stocks for Stock
Pitch Presentation ”is done by me and it is an authentic work carried out by me at
Vardhan Consulting Engineers. The matter embodied in this Report has not been
submitted earlier for the award of any degree or diploma to the best of my knowledge and
belief.

Signature of the Student: SAMARTH SOOD

Date:20-Sep-2022
 CERTIFICATE FROM FACULTY GUIDE

This is to certify that the project titled “ Analysis of Mid-Cap Equity Stocks
for Stock Pitch Presentation “ i s a n academic work done by “SAMARTH SOOD”
submitted in the partial fulfillment of the requirement for the award of the degree of MASTER of
BUSINESS ADMINISTRATION (M.B.A.) from Bhagwan Parshuram Institute of Technology, New
Delhi, (Affiliatedto G.G.I.P.University) under my guidance & direction.

To the best of my knowledge and belief the data and belief the data and information presented by
him/her in the project has not been submitted earlier.

Dr. Mani Manjari

Associate ProfessoR
 AKNOWLEDGEMENT

This report is a project report on “Analysis of Mid-Cap Equity Stocks for

Stock Pitch Presentation”.

I would like to give special acknowledgement to Dr. Mani Manjari , for his
guidance, technical expertise, advice constant supervision and excellent
guidance. He not only gave my project a scrupulous critical shape but also
added many examples and ideas to improve it.
I have taken sincere efforts in this project. However this report would not been
possible without the help and kind support of my mentor. I want to extend my
genuine and sincere thanks to all the individuals who helped me in completion
of this project.
I would like to express my appreciation towards my family for their
encouragement and support throughout this internship.

1
 EXECUTIVE SUMMARY

To gain some relevant experience and avail a unique opportunity, I worked

under the guidance of Vardhan Consulting Engineers and it was a great
experience. Also especially with my mentor Mr. Ashish Kumar who gave me
a good support and provided an internship offer to me thus making it a notable
success in my life. At this training I got to know about an understanding of
stock market. The main objective of this internship was to provide us relevant
and practical knowledge of share market. The company established a sense of
responsibility towards my work in me. It made me stay productive along with
learning new segments in stock market.
This model is used to further inspect the investment options available. We as interns
in VCE had the prime and major responsibility towards our mentors and clients.
A business project related to specifically stock market requires a huge amount of
time, efforts and investment. It is necessary to make logical strategies and then
perform a thorough analysis for all the available options under investments and
the terms related to the same before taking any major or even minor decision
around the starting and proceedings of the proposed project. In this report the
important inputs were provided by the company. It helped us to have a start on
this model. Also, some of the inputs are taken as assumed figures for rational
reasons. After compiling and studying the input data along with the details, we
observed the every plan and investment is thoroughly calculated in this field.

2
 TABLE OF CONTENTS

SNO. CONTENT PAGE NO.

1 Chapter 1: Introduction................................................... 1

2 Chapter 2: Objective of the study................................... 35

3 Chapter 3: Research Methodology................................. 36

4 Chapter 4: Data analysis................................................ 37

5 Chapter 5: Findings & Conclusion................................. 79

6 Chapter 6: Bibliography................................................. 80

3
 LIST OF FIGURES

Contents Page no.

Figure-1 17

Figure-2 20

Figure-3 22

Figure-4 32

Figure-5 32

Figure-6 33

Figure-7 33

Figure-8 33

Figure-9 33

Figure-10 34

Figure-11 41

Figure-12 48

Figure-13 57

4
 LIST OF TABLE

Contents Page no.

Table:1 16

Table:2 29

Table:3 34

Table:4 44

Table:5 71

Table:6 72

Table:7 72

5
 Chapter 1
INTRODUCTION
Why investments in today’s world are necessary
Investments are the assets which are acquired or invested in to build the wealth and
save money from the earned income or appreciation. Investment meaning is to
obtain an additional source of income or to gain profit from the investment over a
specific period of time. Investment is made keeping financial goals in mind. The
investment objectives help generate the income and grow over a certain period of
time. Investment includes stocks, bonds, PPF amongst others, which helps in
growing money and providing an additional source of income.

As investment helps in growing our money over a period of time, there is a always
some risk accompanying with the investment. You might get good returns in some
of the investment, but they might also come with bigger risk in comparison to other
investment options providing normal/moderate returns

Investing is an important part of wealth creation in India. It helps you in fulfil your
financial goals, beat inflation, and stabilize your future financial budget/account.
Instead of putting your money in your bank accounts, you can invest in different
avenues like stocks, fixed deposits, mutual funds, and equities.

It may help to attain your financial goals and build a financial cushion for the
future to live a secure life by investing in the top investment alternatives in India.

There are few investment ideas on the market that carry a high level of risk and
have the potential to generate beneficial long term returns compared to other asset
classes. With many investment plans available, choosing the best one could be
challenging.

6
What Is a Portfolio Investment?
A portfolio investment is the ownership of a bond, stock, or other financial asset
with the expectation of earning a return or increasing in value over time, or both. It
entails the passive or hands-off ownership of assets as opposed to direct
investment, which would entail an active management role. Portfolio investment
can be divided into two categories:

1. Strategic investing entails purchasing financial assets for their long-term growth
potential, income yield, or both, with the intention of holding those assets for an
extended period of time.

2. The tactical approach necessitates active buying and selling in the hopes of
achieving short-term gains.

Portfolio basket:
A basket is a selection of different securities (such as stocks, currencies, etc.) that
have a common theme or satisfy particular requirements. For illustration, a sector
exchange traded fund (ETF) can include a collection of companies that are all part
of the same sector. Basket orders conduct several trades in these assets
concurrently, which frequently necessitate the use of a programmed that performs
all the trades simultaneously.

Managing a Portfolio

You might imagine an investment portfolio as a pie that has been cut into various
wedge-shaped pieces, each of which represents a distinct asset class and/or type of
investment. Investors strive to build a well-diversified portfolio in order to achieve
a risk-return portfolio allocation that is suitable for their degree of risk tolerance.

7
Although cash, stocks, and bonds are typically considered to be a portfolio's three
main building blocks, you can expand your holdings with a wide range of assets,
including as real estate, gold stocks, other kinds of bonds, artwork, and other
collectibles.

Types of Portfolios

The variety of investors and money managers is matched by the diversity of

portfolios and portfolio methods. Additionally, you have the option to create many
portfolios, each of whose contents could represent a unique strategy or set of
investment possibilities and be organized to meet a distinct requirement.

 A Hybrid Portfolio
The hybrid portfolio strategy diversifies among asset classes. Investing in equities,
bonds, commodities, real estate, and even art is necessary to create a hybrid
portfolio. A hybrid portfolio often includes relatively set ratios of equities, bonds,
and alternative investments. This is advantageous since historically, there have
been imperfect connections between stocks, bonds, and alternatives.

 A Portfolio Investment
When using a portfolio to invest, you anticipate that the stock, bond, or other
financial instrument will generate income, increase in value over time, or both. A
portfolio investment can be tactical, where you actively buy and sell the asset in
the hopes of making short-term gains, or strategic, where you purchase financial
assets with the purpose of owning them for a long period.

8
  An Aggressive, Equities-Focused Portfolio
An aggressive portfolio's underlying assets typically take on high risks in search
of high returns. Companies with a distinct value proposition that are still in the
early stages of growth are what aggressive investors look for.

 A Defensive, Equities-Focused Portfolio

A defensive portfolio would typically concentrate on consumer staples that are
resilient to downturns. Both good and poor economic periods favor defensive
stocks. Companies that provide goods that are necessary for daily living will
survive no matter how awful the economy is at the time.

 An Income-Focused, Equities Portfolio

Dividend-paying stocks or other forms of distributions to stakeholders are the
source of income for this type of portfolio. Even though several of the stocks in
the income portfolio would also work in the defensive portfolio, they were chosen
for this investment strategy primarily due to their high dividends. A portfolio with
an income should have a positive cash flow. Investments that generate income
include real estate investment trusts (REITs), for instance.

 A Speculative, Equities-Focused Portfolio

Investors with a high level of risk tolerance do best with a speculative portfolio.
Initial Public Offerings (IPOs) or stocks that are allegedly target companies for
acquisition are examples of speculative plays.

9
FOR THIS PROJECT, WE HAVE A HNI CLIENT WITH US WHO IS
INTERESTED TO GROW HIS PORTFOLIO OF 1 CRORE.

HNI CLIENT:

HNIs, or high net worth individuals (HNIs), are a class of people who work in the
financial services industry and have an investible excess of more than Rs 5 crore,
but not quite at that level. In the financial sector, these investors are categorised as
retail because of their net worth. HNIs are typically seen as those whose investable
assets, such as stocks and bonds, exceed a particular threshold. An individual with
a high net worth is one who holds liquid assets, such as cash in banks or brokerage
accounts, but not immovable property such as a primary residence or collectibles.

Private wealth managers constantly have a high demand for HNIs because it takes
a lot of effort to protect and keep such assets. Given that wealth managers are
compensated as a percentage of the overall assets they manage, the more liquid an
individual's holdings are, the more desirable an HNI becomes to wealth managers.

Various HNIs
1. Investors who have liquid assets valued between Rs. 5 lakh and Rs. 5 crore
are considered high-net-worth individuals (HNWIs).
2. Investors with liquid assets of between Rs 5 crore and Rs 25 crore are
referred to as very high net worth individuals (VHNWIs).
3. Ultra-high-net-worth individuals (UHNWIs): Investors with liquid assets
worth more than Rs 25 crore

10
Investments plans in which this client generally invests:
STOCKS

Stocks signify a portion of ownership in a business or other entity. One of the

finest ways for long-term investors to generate sizable profits is through stocks.
However, as these instruments are market-linked, there is always a chance of
suffering a capital loss.

DEBENTURE

A bond or other sort of financial instrument that is secured by collateral is referred

to as a debenture. Debentures must rely on the issuer's trustworthiness and
reputation for support because they lack a collateral backstop. Debentures are
commonly issued by both businesses and governments to raise cash or money.

GOLD BONDS

Government securities with gram-based gold values are known as sovereign gold
bonds. In place of owning physical gold, the Reserve Bank issues the bond on
behalf of the Government of India. Investors must pay the issue price in cash, and
at maturity, bonds may be redeemed for cash.

GOLD ETF

An exchange-traded fund (ETF) that tracks the domestic physical gold price is
known as gold ETF. They are passive investment tools that invest in gold bullion
and are based on gold prices.

In a nutshell, Gold ETFs are securities that represent physical gold, either in the
form of paper or in a dematerialized form. One gram of gold is equal to one unit of

11
the Gold ETF, which is backed by extremely pure actual gold. Gold ETFs combine
the simplicity of gold investing with the flexibility of stock investing.

MUTUAL FUNDS
In order to generate profits, mutual funds pool investor capital and make
investments in the stocks and bonds of various firms. Mutual funds are investment
vehicles managed by fund managers. Even with a lesser initial payment, you can
still expect to receive large returns.

This mutual fund is a business that collects money from a lot of individuals and
invests it in stocks, bonds, and other types of short-term debt. The mutual fund's
portfolio is the collective name for its holdings. Owners of mutual funds purchase
shares. Every share a shareholder has entails a portion of the fund and the money it
produces

Where should you put your money to work?

You can decide whether to invest in market-linked instruments or those that are
unaffected by market fluctuations based on your level of risk tolerance. Market-
linked investments produce higher returns, but they aren't always the ideal
investing strategies because they put your money at risk. Compared to other
investment options, fixed deposits provide a higher level of financial protection.
One such financier is Bajaj Finance, which offers both high FD rates and fund
security.

Your investment decisions and risk appetite

12
The majority of assets have some degree of volatility, and typically, higher risk
investments yield higher returns. As a result, the decision to invest is frequently
determined on the risk tolerance of the investor.

1. Low-risk investments: Government savings plans, fixed deposit plans, bonds,

and debentures are examples of fixed-income instruments.

2. Investments with a medium level of risk include debt funds, balanced mutual
funds, and index funds.

3. High-risk Investments: Instruments like equities and equity mutual funds are
examples of volatile investments.

A DETAILED DESCRITPION OF INVESTMENTS

1. GOLD ETF
Exchange-traded instruments for gold include closed-end funds (CEFs), exchange-
traded notes (ETNs), and exchange-traded funds (ETFs).

How Does a GOLD ETF Work?

• Price & Purity: Physical gold bars that are 99.5% pure are used to represent gold
ETFs. Prices for gold ETFs are available to buy or sell at any time through a stock
broker and are displayed on the BSE/NSE website. Gold ETF, in contrast to gold
jewellery, can be purchased and sold across India at the same price.
• Where to buy: Using a demat account and trading account, a broker can let you
purchase gold ETFs on the BSE or NSE. When purchasing or selling gold ETFs, a
brokerage fee and minimal fund management fees are applicable.

13
List of 4 Best Gold ETFs in India (2022)
Here is the list of best gold ETFs in India that you may consider investing in:

S
Gold ETF Names Features
No.

Annualized 5 years return: 10.72%

NAV (Net Asset Value): Rs. 45.28
1. HDFC Gold ETF
AUM: Rs. 3,135.42 Cr
Expense Ratio: 0.49%

Annualized 5 years return: 8.37%

NAV: Rs. 4237.84
2. SBI Gold ETF
AUM: Rs. 2,340.25 Cr
Expense Ratio: 0.54%

Annualized 5 years return: 8.68%

NAV: Rs. 4,387.09
3. IDBI Gold ETF
AUM: Rs. 82.21 Cr
Expense Ratio: 0.35%

Annualized 5 years return: 7.92%

NAV: Rs. 41.19
4. Axis Gold ETF
AUM: Rs. 490.13 Cr
Expense Ratio: 0.53%
Table:1

GOLD ETF (HDFC GOLD ETF)

Figure-1

14
 2. DEBENTURE
A debenture is a kind of bond or other debt instrument that is secured by collateral
but is unsecured otherwise. Debentures must be supported by the issuer's
trustworthiness and reputation because they lack a collateral backing. Debentures
are routinely issued by both businesses and governments to raise money.

Tata Capital Housing Finance Debenture

Tata Capital Housing Finance Ltd. is launching the first tranche of a public
offering of secured, redeemable, non-convertible debentures with a face value of
Rs. 1,000 each and unsecure, subordinated, rated, listed, redeemable, non-
convertible debentures with a face value of Rs. 1,000. This offering has a base
issue size of Rs. 500 crore and an option to retain oversubscription up to Rs. 1500
crore (totaling Rs. 2,000.

3. EQUITY
What are Large-Cap Stocks?

Large-cap companies are businesses that are very well-established & have
significant market share. Large-cap companies have market caps of Rs 20,000
crore or more. Like Infosys Technologies, Tata Steel and Reliance Industries Ltd
(RIL) are some of the examples of large-cap market companies that are listed on
stock exchange of India

15
Large Cap

ITC Ltd.

ITC consistently aspires to broaden its impact on the country by developing a

number of growth drivers. This strategy is based on a portfolio of globally
renowned companies that offer unique goods and services to meet changing
consumer demands.

What are Mid-Cap Stocks?

Mid-cap companies are companies whose market cap is more than Rs 5,000 crore
but less than Rs 20,000 crore.

Like LIC Housing Finance, Castrol India, and Metropolis Healthcare are some of
the examples of mid-cap companies that are listed on the stock exchanges of India.

Mid Cap

Crompton Greaves Consumer Electricals Limited

An Indian manufacturer of electrical equipment, Crompton Greaves Consumer

Electricals Limited, also goes by the name Crompton, is headquartered in Mumbai.
In addition to LED lighting, fans, pumps, and home appliances such water heaters,
air conditioners, and kitchen appliances, the company also manufactures lighting
and electrical consumer durables.

What are Small-Cap Stocks?

Small-cap companies have a market capitalization of less than Rs 5,000 Crore.

Like KNR Constructions, DB Corp, Hath-way Cable, and Hindustan Zinc are some

16
 examples of small-cap market companies that are listed on the stock exchanges of
India

Small Cap

Bajaj Consumer Care Ltd.

A corporation that manufactures consumer goods in India by the name of Bajaj

Consumer Care Ltd. (formerly known as Bajaj Corp. The Bajaj Group, which
Jamnalal Bajaj created, includes it. In addition to sugar, consumer goods, power
generation, and infrastructure development, the Bajaj Group has interests in a
number of other businesses.

Particulars Large cap Mid cap Small cap

Availability of
Highly volatile and
information on Often less volatile and Slightly volatile and
not very liquid
the companies highly liquid quite liquid

Potential for
A higher potential to Moderate potential for Considered to be
growth
generate stable returns growth high
Possess relatively lower Considerably
Risk Riskier than large cap
risk riskier
Moderately risk-
tolerant
Conservative investors Aggressive
investors with a long-
Ideal investor with a long-term investors with
term
profile investment horizon short-term goals
investment horizon

Table:2

17
FUNDAMENTAL ANALYSIS AND TECHNICAL
ANALYSIS
Fundamental analysis is defined as the method of measuring and
understanding the value of a stock whether a stock is valued correctly in the
market.

This is mainly to find a long-term valuation or intrinsic value of a stock. In

addition to this, fundamental analysis also involves the analyses of non-financial
data like an industry outlook, management, the government policies, etc.

Further, fundamental analysis includes all the quantitative, qualitative, macro –

micro economic, other financial and non-financial data in determining the fair
value of the company. This analysis affects investing activities through a number
of factors in a direct and/or indirect manner.

Price to Book Value is also called as Market to Book Ratio or Price to Equity Ratio
or simply P/B (PB) ratio. It is an essential cornerstone of value investing. It helps
to find that whether the buying a stock at a discount or premium.

Price to book value = market price of the share / book value per share.

To calculate book value = (Total assets – liabilities) / number of outstanding

shares.

A best price to book value is less than 1. It indicates a solid undervalued company.
However, if price to value of less than 3 is also accepted among value investors.

18
 Technical analysis is the trading discipline employed to evaluate the
investments and identification of trading opportunities by analyzing statistical
trends made from trading activity, like volume and price movement. Fundamental
analysis, evaluate security's value based on business results like sales and
earnings, technical analysis focuses on study of the volume and price.

 Technical analysis is different from fundamental analysis, which focuses on

the company's financials rather than historical price patterns or stock trends.

Technical Analysis Indicators

 Chart patterns
 Moving averages
 Volume and momentum indicators
 Oscillators
 Price trends
 Support and resistance levels

After choosing the stocks based on a number of criteria, you can validate your
decision by examining the chart. For a better understanding of the movement of
the stocks in the market, consider the 5 minute, 10 minute, and 15 minute charts.

 Looks at some of these patterns.

19
Candlesticks Patterns Bullish Engulfing Pattern

Figure-4
Figure-7

Bearish Engulfing Pattern

Hammer Pattern

Figure-8
Figure-5
Three White Soldiers Pattern
Hanging Man Pattern

Figure-6 Figure-9

1
Technical Indicators

Intraday trading and technical indicators often go hand in hand. However, there are a lot
of people who still doubt the use of technical indicators and the signals that they give.

Figure-10

Difference Between Fundamental analysis And Technical

analysis:
Basic Fundamental Analysis Technical Analysis
Relevance For long term investment. For short term investment.
Function Useful for trading & investing. Useful for trading.
Objective To find out fair value of Determine correct time to
security enter & exit trade.
Data Use both past & present data. Use past data only.
Form of data Uses annual reports, news, Relies on chart analysis
economy's statistic, etc, only.
Trader's type Long term position trader. Swing & short term trader.
Concepts Return on equity & on assets, Dow theory & price data.
Usefulness Identify undervalued or Determines right time to
overvalued stocks buy or sell stock.
Table:3

2
 ABOUT THE COMPANY:

1 Name of the Company: Vardhan Consulting Engineers

2 Office Address: VARDHAN HOUSE, Anand Bazar, Danapur Cantonment,

Patna, Bihar 801503

3 Website Name: https://techvardhan.com/

4 Email Address: hr@techvardhan.com

5 Local/National/Multinational Company: Private Company

6 Registered Address: VARDHAN HOUSE, Anand Bazar, Danapur

Cantonment, Patna, Bihar 801503

7 Client Given by Company: M/s Vardhan Finance Private Limited got a

request from one of HNI Client to manage and grow their portfolio of Rs. 1 Crore.
The client wants to diversify his investment in Gold ETF, Debentures,Equity in
Smallcap, Midcap and Large Cap for long positions.

You as an equity research and investment analysis intern, need to prepare a

portfolio basket for the client and allocate funds in the various investment
instruments. You should also prepare the stock pitch document for each and
every proposed instrument with detailed fundamental and technical research
on it.

3
 Chapter 2
LITERATURE REVIEW
1. Shouyang and Roni Bhowmik (2020), It is crucial to accurately gauge the
volatility of stock index returns in order to reduce risk and uncertainty in the stock
market. Examining efficient GARCH models that are suggested for use in market
returns and volatilities analysis is the major goal of this paper. This review study's
secondary goal is to conduct a content analysis of the return and volatility literature
reviews that were published in 50 distinct articles during a 12-year period (2008–
2019). According to the survey, there has been a substantial shift in research over
the past ten years, with the majority of researchers now working for emerging
stock markets.

2. In this work by Dipankar Biswas and Swapan Sarkar (2020), ARMA

EGARCH techniques are used to investigate the return dynamics of four broad-
based indices and 18 sectoral indices. This study discovers that, using the ARMA
technique, a carefully chosen conditional mean model may accurately represent the
return dynamics during the chosen period. The effects of this global economic
catastrophe will undoubtedly be wide-ranging. This essay is a modest attempt to
model volatility in the context of the Indian stock market.

3.Bumjean Sohn, Eric Ghysels, and Robert F. Engle (2013), We created a

novel, flexible class of component volatility models in this study by fusing the
knowledge gained from spline GARCH and MIDAS filters. With the use of this
new class, we were able to separate short- and long-term sources of volatility and
connect them directly to economic factors. Although the MIDAS filtering process
refines these measurements, the new model requirements nevertheless relate to the
realised volatility's long-standing use. Long historical time series were the focus of
our analysis. The selection of macroeconomic series was constrained by the
lengthy time period. Any collection of variables can be handled by the GARCH-
MIDAS model class.

4.Klaus Adam, Albert Marcet, And Juan Pablo Nicolin (2016) demonstrate
that, if one accounts for slight departures from rational expectations, consumption-
based asset pricing models with time-separable preferences produce realistic levels
of stock price volatility. The best way to learn from previous price observations is
for rational investors to have subjective opinions about price behaviour.

4
Consequently, stock prices gain velocity and experience mean reversion. The
price-dividend ratio's volatility and persistence, as well as the predictability of
long-horizon returns, are all statistically accounted for by the model.

5.Arup Kr. Chattopadhyay, Suparna Nandy (Pal) (2019), Regarding the Indian
stock market, the study's goals are to examine the following topics: Do the stock
market, other domestic financial system elements (such as the foreign exchange
market, bullion market, money market, and changes in the gross volume of FII
transaction) in India, as well as international stock markets exhibit any signs of
interdependence? We do a test for Granger causality to determine the cause-and-
effect relationship between the returns in financial variables when they are paired.
We also examine impulse response function and variance decomposition for the
purpose of elucidating economic relevance in addition to statistical significance.

6. Anuradha and Piyali Roy Chowdhury. A (2018), This study examines the
exchange rate and the Indian Stock Market as two macroeconomic variables (BSE
Index). One of the key factors in predicting an economy's growth/business cycle
is the relationship between the exchange rate and stock market index. This
dynamic relationship between the exchange rate and stock market has been
examined using data from the Indian economy's exchange rate and stock market
indexes spanning 15 years, from 2010 to 2016. An indicator of the value of a
sector of the stock market is a stock index or stock market index. It is calculated
using the prices of a few chosen equities (typically a weighted verage).

7. Similar Yadav (2017), A statistical measurement of volatility is the dispersion

of returns for a certain securities or Market Index. The risk attached to a security
is often higher the higher the volatility. Volatility estimate is crucial for a number
of factors involving various market participants. Over an extended period of time,
developed markets have continued to offer higher returns with little volatility. In
comparison to developed countries, the Indian market has begun to become more
informationally efficient. The research will make it easier for the reader to
comprehend the historical, present, and prospective features of the Indian Stock
Market.

8. As well as Saumya Ranjan Dash, Debasish Maitra (2017), In the context of

the Indian stock market, this essay investigates the connection between investor
sentiment and stock return volatility. Our empirical investigation, which looks at
the relationship between sentiment and volatility, uses a wavelet method to do
time-frequency domain analysis. The findings show that there is little
conditional relationship between volatility and sentiment.

5
9. Konstantinos Gkillas (Gillas), Dimitrios I. Vortelino, and Shrabani Saha
(2017), The qualities that were looked at using the non-parametric estimate
technique were normality, long-memory, asymmetries, jumps, and
heterogeneity. Realized volatility is a practical method that offers a reasonably
realistic measure of volatility based on the actual variance, which is helpful for
non-speculative funds' asset management. The findings demonstrate that realised
volatility and correlation series are not normally distributed, with some
indications of persistence.

10. The study analysing the risk and return in the automotive business was
conducted by Gopala Krishnan, Muthu, and P.K. Akarsh in (2017). From the
NIFTY auto index as of April 21, 2017, the researcher chose 8 companies for a
sample size. After evaluating the chosen companies, the researcher advises to
investors that when an investor's equity has more risk, they would also receive a
higher return. As opposed to

6
 SWOT ANALYSIS
 STRENGTHS

1. Brand

2. Supply Chain Management

3. Quick Turnaround Time

4. Advertisement and Promotion

5. Strategic Acquisitions

6. Huge Reach

 WEAKNESSES

1. Delivery

2. Internet Penetration

3. Payment Gateways

4. Higher Costs

 OPPORTUNITIES

1. Growth In E-Tail

2. Growth In E-Book Culture

3. Broadband Penetration

4. Mobile Apps

 THREATS
1. Players Such as Amazon

7
 OBJECTIVE OF THE STUDY

The basic objectives of this report are:

1. To describe the various investment avenues in stock market.

2. To understand different effective investment areas like GOLD ETF,
Debenture, Equity in Small Cap, Mid cap, Large cap, for long position.

8
 Chapter 3
DATA ANALYSIS

REPORT QUESTION:
M/s Vardhan Finance Private Limited ( Any Company ) got a request from one of
HNI Client to manage and grow their portfolio of Rs. 1 Crore. The client wants to
diversify his investment in Gold ETF, Debentures,Equity in Smallcap, Midcap and
Large Cap for long positions.

You as an equity research and investment analysis intern, need to prepare a

portfolio basket for the client and allocate funds in the various investment
instruments. You should also prepare the stock pitch document for each and every
proposed instrument with detailed fundamental and technical research on it.

9
STOCK PITCH

A stock pitch is a succinct essay or presentation that discusses why buying stock in
a publicly traded firm is profitable or not. A strong investment thesis, valuation
measures, catalysts, and a section on risk assessment all help a stock presentation.

In this essay, we'll just be focusing on stock pitches; we won't be considering

loans, credits, or anything else than stock.

1.1. Stock pitches can be used in various circumstances

Stock pitches are crucial because they are produced by equities research experts on
both the buy and sell sides of the market to open a dialogue about potential
investments. Stock pitches, however, are also employed in a number of
circumstances:

• Networking: Include a sample stock pitch in your introduction email if you wish
to network with industry experts (such hedge fund analysts).

• Clubs and contests: You may be familiar with these undergraduate investment
or finance clubs/contests. These organizations and competitions essentially serve
as stimuli for when you do stock pitches during interviews or at the office.

• Personal investing: If you have a personal trading account and invest in specific
stocks, stock pitches can help you decide more wisely.

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 • Interviews: Last but not least, you should always be ready for the question
"Pitch me a stock" in asset management and hedge fund interviews. Candidates
may undervalue the importance of pitches in interviews, but when applying for
any position in a financial institution, a solid pitch is crucial because it might be
the difference between getting a second opportunity and being told to leave.
Being prepared to pitch a stock is essential, even for investment banking analysts,
whose employment involves more Excel work than investing research.

1.2. Stock pitch is a must in buy-side interviews

Before hedge fund interviews, candidates should have at least two to three stock
pitches ready. For private equities interviews, candidates are given modelling tests
and case studies with pre-selected companies. In contrast to real-life stock pitches,
those given during interviews focus more on the quality of the evidence supporting
the candidate's investment idea than on whether the idea is sound or not.

Most stock pitches are open-ended, allowing applicants weeks to select a company
and conduct online research. However, some companies reveal the assigned stock
4 to 5 hours before the pitching session is scheduled to begin. Candidates must
function well under pressure and within a limited time frame in this circumstance.

1.3. Structure of a stock pitch

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A common framework used in stock pitching includes 6 sections:

 Investment Idea

 Summary Company Overview

 Investment Thesis

 Catalyst

 Valuation

 How to mitigate risks

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Figure-11

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2. Stock Pitch Template and Examples

STOCK PITCH STRUCTURE IN DETAIL

2.1. Investment Idea Summary

A stock pitch often begins with a description of the stock's upward or negative
trend based on its important statistics and target price, as well as the interviewee's
assessment of whether to buy or sell the stock and your position (long or short).
With a one- or two-sentence description of your investment concept, this section
should be clear-cut and actionable. Only when they are unsure of the business
growth can interviewees offer impartial comments.

2.2. Summary of Company Overview

An overview of the company's business segments, products, and services may be

found in the company overview, along with important financial data including
(revenue, EBITDA, market value, and current multiples). It's critical to avoid
adding the corporate speech and pick only the most pertinent details rather than
copying and pasting information from filings or annual reports.

To demonstrate the company's position in the market and its differences from
competitors, a brief industry forecast should be included in the company
background. The business model of the company is another element that explains
the company's product line, revenue stream, client segmentation, and other aspects.
The performance of the company should also be summarised using company
statistics like market cap, revenue, market value, debt, and important shareholders.

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The winning team of the 2021 YIS Global Stock Pitch Competition provided the
samples of Salesforce.com's company and industry description.

2.3. Investment Thesis

A firm argument addressing the question "Why should this stock be invested in?"
is known as an investment thesis. Three factors determine whether a stock is
worthwhile for investment:

1. The company's calibre Long-term stable revenue growth

2. Catalysts: One-time occurrences that affect return

3. Valuation: Investor discounts as the stock is undervalued by the market.

A good stock pitch for an interview should include three to five important factors
that have a big impact on the company. You must be able to convey information
about the company that others are missing or misunderstood in order to make your
investment thesis stand out. What distinguishes your premise from everyone else's?
What do you notice about the company's quality, drivers, and price that sell-side
analysts don't?

2.4. Catalysts
Events known as catalysts drive price changes in stocks throughout the course of
the following six to twelve months. Catalysts can be divided into two categories:
"hard catalysts" and "soft catalysts." Hard catalysts are specific events that directly
affect a company, such as quarterly earnings announcements, product launches,
acquisitions, and insider transactions. Soft catalysts, on the other hand, are

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potential events that could move a stock up or down, such as M&A activities,
monetary policies, international events, political events, or a change in market
share.

2.5. Valuation

Candidates must present the many models they utilised and provide an explanation
of the assumptions that guided them in the valuation section of the pitch layout.

The intrinsic valuation methodology and relative valuation are the two main
categories of methods used to value a company. For analysts to determine if a
company is undervalued or overvalued, they are frequently employed in PE, ER,
and M&A to estimate the current market value of the company. Analyses of
comparable companies and historical transactions are part of the relative valuation
technique. The intrinsic valuation approach's most used valuation model is
discounted cash flows (DCF).

2.6. How to Mitigate Risks

Making a stock pitch critical and well-founded requires mentioning potential
hazards as well as solutions to mitigate them. You must assess your investing
thesis in this part and highlight any flaws or potential errors. Recruiters place a
high priority on interviewees who can discuss opposing bear or bull thesis and
offer real answers. Risk factors must continue to be unique and pertinent to the
company. As a result, interviewers frequently make the error of highlighting
concerns that are too generic, such as the global economic downturn or the
technological replacement of human jobs. Inverting the catalysts that significantly
affect the performance of the system is the best way to think about the risks.

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Figure-15

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 According to the Case Study:

We as a company representative/employee suggest client to invest his/her 1 crore

in following manner.

Amt. = 1,00,00,000/-

1. As per a good portfolio to stay relevant, we would suggest the client to invest
his/her 50% (50,00,000) of the total amount in Gold ETR and Debenture in
an inversely proportional manner. This is depicted as belows:

1. Gold ETF = 30% That is = 30,00,000/-

2. Debenture = 20% That is = 20,00,000/-

OR

1. Gold ETF = 20% That is = 20,00,000/-

2. Debenture = 30% That is = 30,00,000/-

2. After utilizing 50% in the above mentioned categories, the rest of the amount can
be utilized to invest in Equity. This would include all three caps – i.e. Small Cap.,
Mid Cap. and Large Cap.

To understand the client’s willingness to take risk and as an employee of Vardhan

Consulting Engineers (VCE) company, we would connect with them and
understand their short term and long term goals associated with this investment as
some clients are willing to take more risk than others.

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Scenario 1:

If the client is willing to take more risk then we would suggest our client to invest
their 20%-25% of amount in companies falling under small capitalization. Next,
15%-20% will be directing in mid capitalization and lastly the client can invest
their 10% in company with large capitalization. Hence, summing up their entire
investment strategically in a good portfolio.

Scenario 2

If the client is willing to take more risk then we would suggest our client to invest
their 10% of amount in companies falling under small capitalization. Next, 20-25%
will be directing in mid capitalization and lastly the client can invest their 15-20%
in company with large capitalization. Thus, in this way, we can make a profitable
portfolio for our client for his investments.

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We have prepaid a list of portfolio of Small Cap. , Mid Cap. and Large Cap. That
is:

Small Cap.

Company Name High Low Last Price Prev Close Change % Gain

Wockhardt 267.35 232.00 263.00 234.45 28.55 12.18

TV18 Broadcast 42.75 39.00 40.75 38.95 1.80 4.62

Sterlite Techno 164.05 156.55 161.85 155.80 6.05 3.88

Mishra Dhatu Ni 192.15 182.25 189.80 183.40 6.40 3.49

Sun Pharma Adv 244.15 232.40 241.45 235.10 6.35 2.70

Table:5

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Mid Cap.

Company Name High Low Last Price Prev Close Change % Gain

Dhani Services 54.00 52.30 54.00 51.45 2.55 4.96

Emami 492.35 471.00 486.35 466.00 20.35 4.37

Zee Entertain 263.40 251.25 260.25 252.70 7.55 2.99

IRCTC 752.75 697.15 735.15 714.15 21.00 2.94

Ajanta Pharma 1,305.00 1,260.75 1,297.15 1,260.75 36.40 2.89

Table:6

Large Cap.

Company Name High Low Last Price Prev Close Change % Gain

Adani Green Ene 2,484.40 2,313.80 2,411.10 2,294.05 117.05 5.10

Adani Ports 883.60 834.15 871.95 833.55 38.40 4.61

Ambuja Cements 426.95 410.40 420.10 409.60 10.50 2.56

Larsen 1,942.00 1,895.00 1,935.85 1,894.20 41.65 2.20

Adani Trans 3,694.40 3,586.00 3,641.25 3,599.00 42.25 1.17

Table:7

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Small-Cap Stocks

Bajaj Consumer Care

Fundamental analysis

About Bajaj Consumer Care Ltd

Bajaj Consumer Care is engaged in the business of toiletries, cosmetics and other
personal care products. The Company has presence in both the domestic as well as
international markets.

Today’s Market Action

The last current traded share price of Bajaj Consumer Care Ltd was 161.25 down
by -0.12% on the NSE. Its last present traded stock price on BSE was 161.35 up
by 0.03%. The total over-all volume of shares on NSE and BSE combined together
was 193,285 shares. Its total combined turnover was Rs 3.11 crores.

Figure-20
Technical analysis

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Medium and Long Term Market Action
Bajaj Consumer Care Ltd hit a 52-week highest of 281.7 on 05-08-2021 and a 52-
week lowest of 129.05 on 20-06-2022. The stock price of Bajaj Consumer Care
Ltd is up by 13% over the last one month.
It is down by -38.8% over the last one year.

Figure-21

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Mid-Cap Stocks

Crompton Greaves

Fundamental analysis

About Crompton Greaves Consumer Electricals Ltd

Crompton Greaves Consumer Electricals Limited is one of the leading consumer

companies in India with a 85 years old brand legacy. It’s an independent company
under professional management and has two business segments – Lighting &
Electrical Consumer Durables. They market our products under the “Crompton”
brand name in India and select export markets.

Today’s Market Action

The last current traded share price of Crompton Greaves Consumer Electricals Ltd
was 375.30 up by 0.39% on the NSE. Its last present traded stock price on BSE
was 375.35 up by 0.31%. The total over-all volume of shares on NSE and BSE
combined together was 2,113,561 shares. Its total combined turnover was Rs
79.76 crores.

Figure-22

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Technical analysis

Medium and Long Term Market Action

Crompton Greaves Consumer Electricals Ltd hit a 52-week highest of 512.8 on 16-
09-2021 and a 52-week lowest of 312 on 17-06-2022.
The stock price of Crompton Greaves Consumer Electricals Ltd is up by 3% over
the last one month.
It is down by -17.24% over the last one year.

Figure-23

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Large-Cap Stocks

ITC Ltd.

Fundamental analysis

About ITC Ltd

Established in the year 1910, ITC is one of the largest cigarette manufacturer and
seller in the country. ITC now operates in five business segments that are - Agri
Business, FMCG Cigarettes, Paperboards, Hotels, Paper and Packaging, and
FMCG Others. FMCG - Cigarettes (45% of revenue) ITC is the leader in the
organized domestic cigarette market with a market share of over 80% at current
time.

Today’s Market Action

The last current traded share price of ITC Ltd. was 313.15 up by 0.74% on the
NSE. Its last present traded stock price on BSE was 313.00 up by 0.72%. The total
over-all volume of shares on NSE and BSE combined together was 8,558,181
shares. Its total combined turnover was Rs 267.57 crores.

Figure-24

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Technical analysis

Medium and Long Term Market Action

ITC Ltd hit a 52-week highest of 316.65 on 02-08-2022 & a 52-week lowest of
204.35 on 26-08-2021.
The stock price of ITC Ltd is up by 7% over the last one month.
It is up by 46.54% over the last one year.

Figure-25

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 Chapter 4
CONCLUSION

With this project, we aimed to invest investor money in a variety of stocks and
businesses with the hope of generating profitable returns. Making a successful
portfolio is one approach to achieve these high returns. An equity research study
that concentrates on a particular stock, industry sector, currency, raw material,
fixed-income asset, or even a specific geographical area or nation can be useful in
this situation. These are useful for getting advice on whether to buy or sell that
stock. Making a good portfolio for our client, will help in investing their money in
good stocks thereby helping us make good long term relations

Chapter 6
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 Bibliography

https://www.google.co.in/?gws_rd=ssl
https://scholar.google.com/
https://www.moneycontrol.com/
https://www.morningstar.in/
https://www.hdfcsec.com/productpage/gold-etf
https://www.tatacapital.com/home-loan.html
https://www.bajajconsumercare.com/
https://www.crompton.co.in/
https://www.itcportal.com/

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