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