Introduction to Vodafone Limited Vodafone India, formerly Vodafone Essar and Hutchison Essar, is the second largest mobile

network operator in India after Airtel. It is based in Mumbai, Maharashtra and which operates nationally. It has approximately 146.84 million customers as of November 2011.On July 2011, Vodafone Group agreed terms for the buy-out of its partner Essar from its Indian mobile phone business. The UK firm paid $5.46 billion to its Indian counterpart to take Essar out of its 33% stake in the Indian subsidiary. It will leave Vodafone owning 74% of the Indian business, while the other 26% will be owned by Indian investors, in compliance with Indian law. On 11 February, 2007, Vodafone agreed to acquire the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance Communications, Hinduja Group, and Essar Group, which is the owner of the remaining 33%. The whole company was valued at USD 18.8 billion.[3] The transaction closed on 8 May, 2007. It offers both prepaid and postpaid GSM cellular phone coverage throughout India with good presence in the metros. Vodafone India provides 2.75G services based on 900 MHz and 1800 MHz digital GSM technology. Vodafone India launched 3G services in the country in the January-March quarter of 2011 and plans to spend up to $500 million within two years on its 3G networks. Financial Interpretation of Vodafone:

Subscriber Base Following is the Vodafone India subscriber base statistics as on June 2011: Subscriber Base Statistics as on January, 2011 Telecom Cicle No. of Subscribers Gujarat 14,910,573 Uttar Pradesh(East) Maharashtra West Bengal Tamil Nadu Rajasthan Uttar Pradesh(West) Andhra Pradesh Delhi Goa Karnataka Kerala Bihar Kolkata Punjab Haryana Madhya Pradesh Chennai Odisha Assam North East Jammu & Kashmir Himachal Pradesh Mumbai 14,237,217 11,962,824 11,040,815 9,330,557 8,711,277 9,234,369 7,347,024 7,788,376 7,134,576 6,591,039 5,535,177 5,244,148 4,373,647 4,132,392 4,170,943 3,135,580 2,113,992 2,338,159 1,650,109 861,826 565,253 357,430 5,887,113

Total number of Vodafone India Subscribers : 141,519,840, i.e. 23.63% of the total 598,779,674 Indian mobile phone subscribers. Competitors: Vodafone competes with 14 other mobile operators throughout India. They are Aircel, Airtel, BSNL, Idea, Loop Mobile, MTNL, MTS, Reliance Communications, S Tel, Tata DoCoMo, Tata Indicom, Uninor, Videocon and Virgin Mobile.

1. Fundamental Analysis: Fundamental Analysis deals with finding out the intrinsic value of a security against its market value so that the decision can be taken by an investor can take a decision to beat the market. In order to analyse Vodafone Bottom Down Approach has been followed as following: 1.1 Economy Analysis: These analysis deals with the identification of the factors that affect the functioning of the company and these macro level factors are listed as under: 1.1.1 Population: The demography of the customer base and the size of the population affects the operations of the concern a lot. The bigger size of the population leads to higher level of customer base. So it has been observed that during the years of population explosion, the demand for Vodafone has been increased. The literacy rate, age group, occupational patterns are the main Components of Demography that affect the demand patterns of Vodafone. 1.1.2 Growth of service and industrial sector: The growth of industrial sector and service sector has also given boom to the demand of Vodafone services. It was observed that during time period of 1991-2010 the demand of Vodafone products and services increased by 35%.
70 60 50 40 30 20 10 0 1991-1995 1996-2001 2002-2007 2008-2012

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1.1.3 Research and Development: The increase in R & D has also affected the demand patterns of the company. The increase in R & D has lead the company to widen the operations with better service quality so it has impact on the company. 1.1.4 Employment: There has been a positive relationship between employment and growth of Vodafone. Basically increase in employment generates the flow of money and demand for the services increase. Same happened with Vodafone as demand of telecom services has been increased with increase in employment. 1.1.5 Governmental Policies: The policies formed by the government and the telecom regulator TRAI also affect the functioning of the company. The guidelines which are issued by TRAI regulate the operations and services of the company. 1.1.6 Economic Cycle: It is the macro level factor that expands or contracts the operations of the company. During recessionary trends the services provided by the company and its demand is downsized and boom period leads to expansion of the services and their demand. 1.2 Industry Analysis: These analysis aims at identification of the industry that is facing growth and is contributing at a higher pace towards the GDP. Basically Industry Analysis deal with following parameters which are discussed as under with respect to Telecommunication Industry. S.No. 1 2 3 Factor Sales Trend Labour Conditions Attitude of the Government Telcom Industry Positive( Increasing sales with variety of services ) Sound (Less number of strikes and labour violence ) Acting as regulator with the help of TRAI to regulate the services and operations of telecom players. Increasing Demand due to increasing customer base. High level of technology and bandwidth. Good earnings performance. Rapidly Growing High(Entrance of foreign players )

4 5 6 7 8

Demand Patterns Level of Technology Earning performance Growth Rate Level of Competition

1.2.1 SWOT Analysis of Telecom Industry: Strengths: Availability of customer base. Less risk due to stable demand patterns. Rapidly growing industrial sector. Increasing contribution to GDP. Weaknesses: Highly volatile industry. High requirement of R&D expenditure. Rigid regulatory framework.

Opportunities: Untargeted markets. Enter in EFT and EDI technologies.

Threats: Growing competition. Safety and security backdoors.

1.3 Company Analysis Company Analysis deal with identification of the company from the chosen Industrial sector which can provide maximum return to the investor. It deals with financial and non-financial analysis of the company. 1.3.1 Financial Analysis: This part of company analysis deals with the financial position of the company and present the financial health of the concern.

Asset Structure of Vodafone Limited

Liabilities of Vodafone Limited

Share Information of Vodafone Limited

Market Data of Vodafone Limited

1.3.2 Non-Financial Analysis: Non Financial Analysis deal with analysing those factors which are not financial by nature but are of great importance while taking a decision to invest in the shares of a particular company. In case of Vodafone Limited following are the analysis of non financial factors:

S.No. 1 2

Factor Sales Trend Labour Conditions

Attitude of the Government

4 5 6 7 8 9 10

Demand Patterns Level of Technology Earning performance Growth Rate Level of Competition Management Goodwill

11 12

Customer Base Future Prospectus

Vodafone Limited Positive( Increasing sales with variety of services ) Sound (Less number of strikes and labour violence ) Acting as regulator with the help of TRAI to regulate the services and operations of telecom players. Increasing Demand due to increasing customer base. High level of technology and bandwidth. Good earnings performance. Rapidly Growing High(Entrance of foreign players ) Efficient and Qualified Management. Good market position and goodwill along with brand power. Good Customer Base. Good Future Prospectus of Vodafone are there as company is signing number of strategic alliances with other companies.

Interpretation of Fundamental Analysis: From the Fundamental Analysis of Vodafone limited, it can be interpreted that Vodafone is a fundamentally strong company and the market value of its share is equals to its intrinsic value of share which is justified by its fundamental factors.

2. Technical Analysis: These are those systematic analysis which aim at studying technical characteristics of a security so that its future price can be predicted along with time of decision making. These can be done using charts, volume indicators, confidence indicators and momentum indicators. 2.1 Charts: Charts present the information in a graphical manner and present the trend of the prices.These charts can be Line chart, Bar chart and Point and Figure Chart. In the technical analysis of Vodafone Limited the line charts are used.

Stock Quotes of Vodafone Limited

The price movements of Vodafone share at different time periods The chart is presenting different movements of the price of Vodafone Limited which are as following: 2.1 .1 Intraday Movement:

It is presenting the intraday movement of the share of Vodafone got Bullish trend.

2.1.2 Weekly Movement:

The weekly movement of the price is following rallies and reversals. A number of head and shoulder movements are there. But after a week of trading Bullish trend is there.

2.1.3 Monthly Movement:

In the month the movement shown by Vodafone share is bearish as share price started fro, 186.27 and at the end of the month it was at 175.85. so overall trend of Vodafone share has been Bearish.

2.1.4 Quarterly Movement:

The quarter movement presented by Vodafone stock is quiet volatile. The stock observed gradual increase in the month of July and a steep increase in the month of August but it has also felt a step fall in the same month. In the current month of September the stock is also gradually moving upward. Interpretation of Technical Analysis: So lastly it can be predicted that in the month of September the prices of Vodafone stock will tend to fall because the succeeding peaks are at lower level then the preceding ones and succeeding troughs are at lower level then the succeeding ones so trend will be Bearish and in the last of September the prices will range from 170-180. So the ideal decision for the investor is to sell the share.