FINANCIAL MANAGEMENT ASSINGMENT SECTOR - CONSTRUCTION & CONTRACTING - CIVIL COMPANY NAME Atlanta Elnet Technologies Rander Finance

and Leasing Company Era Infra Engineering Noida Toll Bridge Company Analysis of ALANTA When we invest Rs 57.20 then we can earn Rs 5.73. Its share value is stabilized and not getting down so much. To earn Rs 1 from the organization we have to invest Rs 9.98 in the company. The P/E ratio is very lower it cannot be a profitable investment for shareholder. Analysis of Elnet Technologies As Current share value is Rs 27.80. On investing in Elnet we are earning Rs 7.60. Its share value is not as much stabilized as ALANTA and P/E ratio is also low as 3.66 which are very low and it wont be profitable for shareholders. Analysis of Rander Finance and Leasing Company Its a profitable share in a long run as its P/E ratio is as high of Rs 50.00 which will earn higher profits for shareholders. Though its EPS is low Rs 1.52 will be earned on investment of Rs 76. Analysis of Era Infra Engineering EPS (TTM) MARKET CAP (RS CR) 466.18 93.76 11.12 P/E (RATIO) CURRENT VALUE OF SHARE 57.20 27.80 76.00

5.73 7.60 1.52

9.98 3.66 50.00

11.17 2.15

2,538.31 367.74

12.50 9.19

139.60 19.75

Its not a good investment as overall P/E (ratio) and EPS are small as compared to the investment done in buying a share of Rs 139.60. From 2010 year its share value is decreasing. For the earning of Rs 1 we have to we have to invest Rs 12.50. It seems to good investment but risk involved is high in this company. Analysis of Noida Toll Bridge Company It has the lowest current value of share among the five companies but its EPS is Rs 2.15 which is not bad not good for an investment of Rs 19.75 per share. Though its P/E ratio is Rs 9.19 it may have bright future in the upcoming time. CONCLUSION As among the five companies Rander Finance and Leasing Company is most appropriate for investment in share market. Followed by Era Infra Engineering and then Atlanta.

PEG RATIO
The PEG ratio (Price/Earnings To Growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates.

The growth rate is expressed as a percentage above 100%, and should use real growth only, to correct for inflation. E.g. if a company is growing at 30% a year, and has a P/E of 30, it would have a PEG of 1. A lower ratio is "better" (cheaper) and a higher ratio is "worse" (expensive). The P/E ratio used in the calculation may be projected or trailing, and the annual growth rate may be the expected growth rate for the next year or the next five years. Examples:

Yahoo! Finance uses 5-year expected growth rate and an averaged P/E for calculating PEG. The NASDAQ web-site uses the forecast growth rate (based on the consensus of professional analysts) and forecast earnings over the next 12 months.