Summer Internship Project Report

Summer Internship Project Report
On
A STUDY OF COMPANYS EFFECT ON MARKET VALUE AND
INVESTMENTS
By
Nalli Sri
A3128112001
MFM - Class of 2014

Under the Supervision of
Prof. Dr. ParulJhajharia
Additional Director
Amity College of Commerce and Finance
In Partial Fulfillment of the Requirements for the Degree of
Master of Financial Management
At
AMITY COLLEGE OF COMMERCE AND FINANCE

AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2013
DECLARATION
Title of Project Report:

A Study Of Companys Effect on Market Value and Investments
I declare
(a)That the work presented for assessment in this Summer Internship Report is my own, that
it has not previously been presented for another assessment and that my debts (for words,
data, arguments and ideas) have been appropriately acknowledged
(b)That the work conforms to the guidelines for presentation and style set out in the relevant
documentation.
Date:
Nalli Sri
A3128112001
MFM-Class of 2014
CERTIFICATE
I, Prof.Dr. ParulJhajhariahereby certify that Nalli Sri student of Masters of Financial

Management at Amity College of Commerce & Finance, Amity University Uttar Pradesh has
completed the Project Report on A Study Of Companys Effect on Market Value and
Investments, under my guidance.
Prof. Dr. ParulJhajharia

Additional Director
Amity College of Commerce and Finance
ACKNOWLEDGEMENT
I sincerely feel the credit of the project report work could not be narrowed to only one individual.
This work is an integrated effort of all those concerned with it, it would have been quite difficult
without their direct and indirect co-operation. I wish to express my appreciation and gratitude to
all the concerned people.
First and the foremost my intellectual debt is to Prof. Dr. ParulJhajharia (Additional Director,
Amity College of Commerce and Finance) who has contributed significantly towards the
completion of the project. She has provided the guidelines on which this project report is made.
I am thankful to all the people who have given their precious time and provided me with
requisite data without which this project would not have been completed. I also thank them for
giving their valuable suggestions during the entire period of research.
However, I accept the sole responsibility for any errors of omission and commission.
Nalli Sri
A3128112001
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
i.
Company Profile
ii.
Investment in Economic and Finance
iii.
Return on Investment and Risk
iv.
Sources of Risk
v.
Determination of Stock/share Prices
vi.
Investment Management Process
vii.
Mechanics of Investment in Securities
1-3
3-4
4
5-8
8-9
9
10
CHAPTER 2: LITERATURE REVIEW

CHAPTER 3:RESEARCH METHOD AND PROCEDURES
i.
Purpose of the Study
ii.
Data Collection
iii.
Research Analysis
11-13
14
14
14-15
CHAPTER 4: FINANCIAL ANALYSIS FOR SELECTED COMPANIES

i.
Axis Bank Financial Analysis
ii.
TCS Financial Analysis
iii.
Havells India Financial Analysis
iv.
Bajaj Auto Financial Analysis
v.
Hindustan Zinc Financial Analysis
16-20
20-24
24-27
27-29
29-32
CHAPTER 5: CONCLUSION AND SUGGESTIONS

i.
33
Conclusion and Summary

5
ii.
Suggestions
iii.
Limitations
34
34
35
BIBLIOGRAPHY
APPENDIX A : Financial Statement of Axis Bank
36-37
APPENDIX B : Financial Statement of TCS
38-39
APPENDIX C : Financial Statement of Havells India
40-41
APPENDIX D : Financial Statement of Bajaj Auto
42-43
APPENDIX E : Financial Statement of Hind Zinc
44-45
LIST OF FIGURES
Figure 1.1
Source of Risk
Figure 1.2
Screenshot of Market Value
Figure 4.1 (a)
Shareholders Return Axis Bank
18
Improvement of Bank (Use of Debt) Axis Bank
19
Figure 4.2 (a)
One Year Market Trend - Axis Bank

Financial Summary - TCS
20
21
Figure 4.2 (b)
One Year Market Trend - TCS
24
Figure 4.3 (a)
Comparative Profitable Statement
25
Figure 4.3 (b)
One Year Market Trend - Havells
26
Figure 4.4 (a)
Profitability of Export Sales
27
Figure 4.4 (b)
Companys & Market Growth
28
Figure 4.4 (c)
One Year Market Trend Bajaj Auto
29
Figure 4.1 (b)

Figure 4.1 (c)
Figure 4.5 (a)
An Overview of Companys Capital
30
Figure 4.5 (b)
One Year Market Trend Hind Zinc
31
LIST OF TABLES
Table 3.1
Selected companies from different sectors
14
Table 4.1 (a)
Comparison of Financial Preformation Axis Bank
16
An Overview of Financial Statement Axis Bank
17
Financial Analysis of Five Years Axis Bank
17
Historical Price of Axis Bank in Bombay Stock Exchange
20
Historical Price of Axis Bank in National Stock Exchange
20
Financial Highlights - TCS
22
Table 4.1 (b)

Table 4.1 (c)
Table 4.1 (d)
Table 4.1 (e)
Table 4.2 (a)
Table 4.2 (b)
Table 4.2 (c)
Table 4.2 (d)
Table 4.3 (a)
Table 4.3 (b)
Table 4.3 (c)
Table 4.4 (a)
Table 4.4 (b)
Table 4.4 (c)
Table 4.5 (a)
Financial Analysis of Five Years TCS

Historical Price of TCS in Bombay Stock Exchange
Historical Price of TCS in National Stock Exchange
Financial Analysis of Five Years Havells
Historical Price of Havells in Bombay Stock Exchange
Historical Price of Havells in National Stock Exchange
Financial Analysis of Five Years Bajaj Auto
Historical Price of Bajaj Auto in Bombay Stock Exchange
Historical Price of Bajaj Auto in National Stock Exchange
Financial Analysis of Five Years Hind Zinc
8
23
24
24
25
27
27
28
29
29
30
Table 4.5 (b)

Table 4.5 (c)
Table 5.1
Historical Price of Hind Zinc in Bombay Stock Exchange

Historical Price of Hind Zinc in National Stock Exchange
32
32
33
Summary of the analysis
Abstract
This project is the study of Effect on market value of the companys shares with its
financial statement which deals with analyzing the financial statement of five different sector
companies to find their effect on market value (Share Market). The financial analysis is done
with the companys previous year financial statement by taking its Earnings per share, the
dividend payout ratio, the total debt the company holding for the year and what are the
improvements of the company in that particular year. These details would help to find the better
investment company at present. The companies have been chosen from the NSE indices
randomly in the different sectors. They are;
1. Axis Bank
2. TCS
3. Havells
4. Bajaj Auto
5. Hindustan Zinc
This project also explains the fundamentals of investment. The explanation is with how
an investment can be selected, how to select the broker, what the broker do, how to trade or
invest, how to select the company to invest, what are the options to invest, what are the risk
involved in. The financial analysis shows a sample analysis done for the selected companies
from different sectors as given above. The selected companies are from banking sector, IT sector,
consumer products manufacturer sector, automobile sector, metal mining sector. Fundamental
analysis equips to analysis what is the growth potential of every individual company.
10

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Summer Internship Project Report

MFM - Class of 2014

AMITY COLLEGE OF COMMERCE AND FINANCE

Title of Project Report:

I, Prof.Dr. ParulJhajhariahereby certify that Nalli Sri student of Masters of Financial

Prof. Dr. ParulJhajharia

Investment in Economic and Finance

Return on Investment and Risk

Determination of Stock/share Prices

Investment Management Process

Mechanics of Investment in Securities

CHAPTER 2: LITERATURE REVIEW

Purpose of the Study

CHAPTER 4: FINANCIAL ANALYSIS FOR SELECTED COMPANIES

Axis Bank Financial Analysis

TCS Financial Analysis

Havells India Financial Analysis

Bajaj Auto Financial Analysis

Hindustan Zinc Financial Analysis

CHAPTER 5: CONCLUSION AND SUGGESTIONS

Conclusion and Summary

APPENDIX B : Financial Statement of TCS

APPENDIX C : Financial Statement of Havells India

APPENDIX D : Financial Statement of Bajaj Auto

APPENDIX E : Financial Statement of Hind Zinc

Screenshot of Market Value

Figure 4.1 (a)

Shareholders Return Axis Bank

Improvement of Bank (Use of Debt) Axis Bank

Figure 4.2 (a)

One Year Market Trend - Axis Bank

Figure 4.2 (b)

One Year Market Trend - TCS

Figure 4.3 (a)

Comparative Profitable Statement

Figure 4.3 (b)

One Year Market Trend - Havells

Figure 4.4 (a)

Profitability of Export Sales

Figure 4.4 (b)

Companys & Market Growth

Figure 4.4 (c)

One Year Market Trend Bajaj Auto

Figure 4.1 (b)

Figure 4.5 (a)

An Overview of Companys Capital

Figure 4.5 (b)

One Year Market Trend Hind Zinc

Selected companies from different sectors

Table 4.1 (a)

Comparison of Financial Preformation Axis Bank

An Overview of Financial Statement Axis Bank

Financial Analysis of Five Years Axis Bank

Historical Price of Axis Bank in Bombay Stock Exchange

Historical Price of Axis Bank in National Stock Exchange

Financial Highlights - TCS

Table 4.1 (b)

Financial Analysis of Five Years TCS

Table 4.5 (b)