Final Project

A STUDY ON THE FACTORS AFFECTING THE MARKET PRICE AD RETURNS OF SHARES OF SELECTED COMPANIES FROM NIFTY
PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION IN ANNA UNIVERSITY- TRICHY SUBMITTED BY M. GANESH (REG NO. 81907501015)
Department Of Management Studies Saranathan College of Engineering (Affiliated To Anna University- TRICHY) Trichy June (2009)
BONAFIDE CERTIFICATE This is certified that the project report titled A STUDY ON THE FACTORS AFFECTING THE MARKET PRICE AND RETURNS OF SHARES OF SELECTED COMPANIES FROM NIFTY is a bonafide work of Mr.M.GANESH (81907501015) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported here in does not form part of any other project or dissertation on the basis of which a degree of award conferred on earlier occasion on this or any other candidate.
Prof.P.KOTHANDARAMAN Head of the Department
S.VENKATRAMAN Guide
Valued on _____________
Internal Examiner
External Examiner
DECLARATION
I hereby declare that the project titled A STUDY ON THE FACTORS

AFFECTING THE MARKET PRICE AND RETURNS OF SHARES OF SELECTED COMPANIES FROM NIFTY submitted for MBA Degree is my original work
and the report has not formed the basis for the award of any degree or fellowship or any other similar titles.
Station: Date:
M. GANESH Reg No:81907501015
ACKNOWLEDGEMENT
We bow our heads Thee, and we laud, And magnify thy name Almighty God! But man is thy most awful instrument, In working out a pure intent. I express my thanks to almighty, the guiding light of our life. For granting me potency and courage to complete the project successfully. I express my deep sense of gratitude to our beloved Principal Dr. S.Malayappan, Saranathan College of Engineering, Trichy for providing me an opportunity to persuade with this work. I express my deep sense of gratitude to Dr.Y.Venkatramani Director Academics of Saranathan College Of Engineering, Trichy for providing me an opportunity to persuade with this work. I take this opportunity to acknowledge my sincere thanks to Mr. P.Kothandaraman, Professor and Head , Department of Management Studies, Saranathan College of Engineering, Trichy, who gave me full support to undergo this full time Project. I express my sincere thanks and gratitude to Mr. B.S.Chandra Mouli, Professor, Department of Management Studies, Saranathan College of Engineering, Trichy. For his tireless inspiration and valuable guidance. I express my sincere thanks and gratitude to all the faculty members of the Department of Management Studies for giving their helping hands for the successful completion of this Project.
CHAPTERISATION
CHAPTER I II III IV V CONTENTS INTRODUCTION REVIEW OF LITERATURE RESEARCH METHODOLOGY ANALYSIS AND INTERPRETATION OF DATA FINDINGS, SUGGESTIONS AND CONCLUSION APPENDIX BIBILIOGRAPHY PAGE NO
ABSTRACT
The researcher is interested in carrying out the study in this area in order to find out the various fundamental, non-fundamental & the technical factors that affect the share price movements cum their returns. The researcher is interested in finding out the critical variables that influence the share price movements of the selected 5 stocks from NSE based on the Market Capitalisation. The researcher carried out the study using the ex-post facto type of research design in his study. The researcher used the secondary data collection method in his study. The researcher used the convenient type of sampling method in his study. The sample size is taken as 5 companies listed in the NSE based on the Market Capitalisation. The companies are as follows. (i) Reliance Industries Limited (ii) Oil and Natural Gas Corporation Limited (iii) Infosys Technologies Limited (iv) Bharat Heavy Electricals Limited (v) Indian Oil Corporation Limited The researcher used the following financial tools namely (a) P/E ratio (d) Beta (b) Price/Book value ratio (e) Return on equity (c) Dividend yield (f) Debt-Equity (i) Return on net worth
(g) Cash EPS (h) Interest coverage ratio (j) EPS
(k) Return on Capital Employed(l) Total Return
The researcher used the following statistical tools namely (1) T-test (3) Trend (2) One Way Annova (4) Factor Analysis.
Based on the analysis and interpretation the researcher arrived at the major findings in his study and the suggestions are given by the researcher in such a way so that the market price cum returns will not have a very high degree of volatility and thus the wealth maximisation of the share holders has been safeguarded.
INTRODUCTION
Stock market indices are the barometers of the stock market. They mirror the stock market behaviour and the broad trends in the market. There are large number of companies listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) and it is not possible to look at the prices of every stock to find out whether the market movement is upward or downward. The indices like BSE sensex (Sensitivity Index) and S&P CNX Nifty (NSE 50 Index) give a broad outline of the market movement and represent the market. The main criteria for selection of the scrips to be included in the indices are: and proper representation of all industries in the economy. There are several fundamental, non-fundamental, and technical factors, which influence the market price of the scrips constituting the index and thereby have a bearing on the behaviour of the entire market. There are different variables, which assume greater significance in different years depending on the prevailing economic and stock market conditions. The main problem is to identify the major variables in the form of factors, which have significant bearing on the movement of the sensex, which is the most comprehensive representative of the Indian Stock Market. There has been extensive research on the various fundamental, non-fundamental, and technical factors affecting the share price movements and stock returns over a period of time. The various research studies have clearly exhibited many contradictory results, with some studies pointing out some critical variables greatly influencing the share prices while others have found these same set of variables as minor elements having little impact on the share prices. The studies pertaining to Indian stock markets vis-a-vis the other international stock markets have also shown vast differences existing among these markets. There can be many reasons for these behavioural differences which can be attributed to factors, such as market efficiency, liquidity and transparency, volatility in the markets, the participation and confidence of retail investors in the stock markets, in the regulatory practices, standardization of accounting and auditing procedures, risk containment mechanisms, and technological advancements. These and other factors greatly influence the way these stock markets behave over a period of time. Market capitalization, Liquidity,
The major fundamental variables such as Price Earning ratio, Return on Capital Employed, Return on net worth, Debt to Equity, Price to Book Value Ratio, Dividend Yield, Cash EPS, Return on Equity, Total Return, Interest Coverage Ratio, Earnings per share & Beta.
1.1.1 PRICE-EARNING RATIO:

P-E ratio expresses the relationship between the market price of a companys share and its earning per share. It indicates the extent to which earnings of each share are covered by price. The ratio helps an investor to make an appropriate calculation of time required to recover this investment in a companys share. The Price-Earning ratio has a positive relationship with market price (Dixit, 1986 and Gupta 2000). It is calculated as follows: P/E = Market Price Per share / Earnings Per share
1.1.2 RETURN ON CAPITAL EMPLOYED:

The return on capital employed indicates the efficiency with which a company utilizes the funds invested in it. This ratio reveals how well the resources of a firm are being used. The higher the ratio, the better are the results. It is a measure of general management performance in relation to capital invested in business. The interfirm comparison of this ratio determines whether the investments are attractive or not as the investor would like to invest only where the return is higher. It is also known as return on net assets. It generally has positive relationship with the market price of share. (Sharma and Singh, 2006; and Malhotra and Prakash, 2001). It is calculated as follows: ROCE = Profit before interest and Tax / Total Capital Employed
1.1.3 RETURN ON NETWORTH:

The return on networth indicates the profitability of equity funds invested in the firm. It is regarded as a very important measure because it reflects the productivity of equity capital invested in the firm. It is calculated as follows: RONW = Profit after Tax / Paid Up Equity Capital + Reserves and Surplus.
1.1.4 DEBT TO EQUITY RATIO (D/E)
It indicates the amount of leverage. The higher the debt component in the capital structure, the higher is the leverage and greater is the risk. It generally has no relation or insignificant relation with share price (Dixit, 1983; and Tulsi et al., 2001). It is calculated as follows Debt to Equity Ratio = (Long-term Debt + Short term debt) / Share holders Equity
1.1.5 PRICE TO BOOK VALUE RATIO:

It reflects that the price investors are willing to pay for every rupee of book value per share. It is calculated as follows: P/B = Market Price per share / Book Value per share
1.1.6 DIVIDEND YIELD:

It represents the current cash return to the shareholder. It has positive relationship with share price (Zahir and Yakesh, 1982). It can be calculated as follows: Dividend Yield = (Dividend per share / Market price per share) * 100
1.1.7 TOTAL RETURN

Total Return/Total No. Of time periods. It has been found that in Indian stock market, there is seasonality in the monthly return (Pandey, 2002) and distribution of monthly return follows normal distribution (Obaidullah, 1991). The total return on an investment for a given period is calculated as follows: Total Return = (Cash Payment Received during the period + Price Change Over the Period) / Price of the Investment at the Beginning.
1.1.8 BETA
It reflects the risk of a stock and measures how sensitive are the return on the stock to variation in the market return. It can be calculated by CAPM model: Required Return = Risk-free Return + Beta (Market Risk Premium)
1.1.9 CASH EPS
A measure of financial performance that looks at the cash flow generated by a company on a per share basis. This differs from basic Earnings per share (EPS), which looks at the net income of the company on a per share basis. The higher a companys cash EPS, the better it is considered to have performed over a period. The point of cash EPS is that its a stricter number than EPS because operating cash flow cannot be manipulated as easily as net income, and represents the real cash earned. It can be calculated as follows: Cash EPS = (Net Income + Depreciation) / No. Of shares Outstanding.
1.1.10 EARNINGS PER SHARE :

The equity shareholders are the sole claimants to the net earnings of the corporation after making payment of dividend to the preference shareholders. The significance of this ratio flows from the fact that higher earnings per share, the more is the scope for a higher rate of dividend and also retained earnings, to build up the inner strength of the company. Therefore, a higher EPS would increase the market price and vice versa. Several event based studies established a direct relation between share price changes with earnings and dividend changes (Ball and Brown, 1968; and Baskin, 1989). It is calculated as follows: EPS = (Profit after Tax Preference Dividend) / Total No. Of Equity Shares
1.1.11 INTEREST COVERAGE RATIO

This shows how many times the operating income covers the interest payment. The Interest Coverage Ratio is calculated as follows: Interest Coverage Ratio = EBIT / INTEREST
1.1.12 RETURN ON EQUITY

The Return on assets and the return on equity will be identical, the company carries out all of its operations with owners fund. The difference between the two ratios is caused by financial leverage. When both the ratios are compared the Return on Equity is greater than Return on Assets. It indicates that the company employed borrowed funds efficiently to lever the rate of the return to the advantage of shareholders. The formula to compute the Rate of Return on Equity is given by Return on Equity = Net Profit / Net Worth.
1.2 COMPANY PROFILE
1.2.1 Reliance Industries The Reliance Group, founded by Dhirubhai H. Ambani (1932 - 2002), is Indias largest private sector enterprise, with business in the energy and materials value chain. Groups annual revenues are in excess of US$ 34 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production to be fully integrated along the materials and energy value chain. The Groups activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and special economic zones. The Group exports products in excess of US$ 20 billion to 108 countries in the world. Major Group companies are Reliance Industries Limited (Including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial Infrastructure Limited. 1.2.2 Oil and Natural Gas Corporation Limited The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestment of government equity in Public Sector Undertakings and other measures. As a consequent thereof, ONGC was re-organized as a limited Company under the Companys Act, 1956 in February 1994. After the conversion of business of the erstwhile Oil and Natural Gas Commission to that of Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2 per cent of its shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering shares to its employees. During March 1999, ONGC, Indian Oil Corporation (IOC) a downstream giant and Authority of India Limited (GAIL) the only gas marketing company, agreed to have cross
holding in each others stock. This paved the way for long-term strategic alliances both for the domestic and overseas business opportunities in the energy value chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came down to 84.11 per cent. After Independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity. 1.2.3 Infosys Technologies Limited Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250. Today, we are a global leader in the next generation of IT and consulting with revenues of over US$ 4 billion. Infosys defines, designs and delivers technology-enabled business solutions that help Global 2000 companies win a Flat World. Infosys also provides a complete range of services by leveraging our domain and business expertise and strategic alliances with leading technology providers. Infosys offerings span business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, reengineering, independent testing and validation services, IT infrastructure services and business process outsourcing. Infosys pioneered the Global Delivery Model (GDM), which emerged as a disruptive force in the industry leading to the rise of offshore outsourcing The GDM is based on the principle of taking work to the location where the best talent is available, where it makes the best economic sense, with the least amount of acceptable risk. Infosys takes a pride in building strategic long-term client relationships. Over 97% of our revenues come from existing countries.
1.2.4 Bharat Heavy Electricals Limited
BHEL is the largest engineering and manufacturing enterprise in India in the energy related / Infrastructure sector, today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment Industry in India a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHELs 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services efficiently and at competitive prices. The high level of quality and reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R & D centers. BHEL has acquired certifications to Quality Management System (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHsas 18001) and is also well on its journey towards Total Quality Management. 1.2.5 Indian Oil Corporation Limited Indian Oil Corporation Limited is currently Indias largest company by sales with a turnover of Rs. 247,479 crore (US $59.22 billion), and profit of Rs,6963 corers (US $ 1.67billion) for fiscal 2007. Indian Oil is also the highest ranked Indian company in the prestigious Fortune Global 500 listing, having moved up 19 places to the 116th position in 2008. It is also the 18th largest petroleum company in the world. Indian Oils Vision is driven by a group of dynamic leaders who have made it a name to reckon with. Indian Oil is currently metamorphosing from a pure sectoral company with dominance in downstream in India to a vertically integrated, transnational energy behemoth. The Corporation is already on the way to becoming a major player in petrochemicals by
integrating its core refining business with petrochemical activities, besides making large investments in E&P and import/marketing ventures for Oil & gas in India and abroad. Besides two refining subsidiaries of Chennai Petroleum Corporation Limited are operational in Sri Lanka, Mauritius and UAE. With a vision to evolve in to a major technology provider through excellence in management of knowledge and innovation, Indian Oil has launched Indian Oil Technology Limited to market the intellectual properties developed by Indian Oils R & D centre.
REVIEW OF LITERATURE
(2.1)
Gupta (2000) has tracked the returns of Sensex from 1980 to 1999 and found
P/E ratios, rate of EPS, and the duration of holding periods of investment to be important determinants of future equity returns. (2.2) Controy et al. (2000) studied the pricing effects of dividend and earnings
announcements in Japan and found that share price reactions were significantly affected by earning surprises. Dechow et al. (2000) have found that firms with low ratios of fundamentals, such as earnings and book value to market value, were known to have systematically lower future returns. The observation was consistent with short sellers using information in these ratios to take position in these stocks with lower expected future returns. Irfan and Nishat (2000) identified the joint effect of multiple factors in Karachi Stock Exchange during 1981 - 2000. Out of the six fundamental factors, only four has impact on share prices-payout ratio, size, yield, and leverage. (2.3) Tuli Nishi and Mittal (2001) made an attempt to determine price-earning ratio
of 105 companies in India for the period 1989-93 and found variability in market price, dividend payout ratio, and earning per share to be significant variables whereas size, debt equity ratio, and growth were insignificant. (2.4) Pandey (2002) analyzed the monthly return data of BSE from 1991 to 2002
and found the existence of seasonality in the monthly stock return in India. The analysis of descriptive statistics showed the maximum average return (positive) occurred in February and the lowest (negative) in March. The positive average returns arose for six months and negative for the next six months. Malakar and Gupta (2002) tested data on determinants of share price of eight major cement companies from 1968 to 1988 and found earnings per share and investment expenditure to be significant determinants of share price. (2.5) Sehgal (2003) observed that the Fama-French asset pricing model, which
considers the market size and book-to-market equity factors as major determinants in stock returns, is very much applicable to the Indian Stock Market. (2.6) Ahmad et al., (2005) found that after analysing the daily closing data of
Nasdaq in the US, the Nikkei in Japan and the BSE Sensex in India from 1999 to 2004 found that there is no long - term relationship of the Indian equity market with the US and Japanese equity market.
(2.7)
Person and Harvey (1997) provided a global pricing perspective on the debate
over the relationship between predetermined attributes of common stocks, (viz., ratios of price-to-book-value, cash-flow, and earnings) and other variables to the future returns. (2.8) Vaidyanathan and Chava (1998) tested the role of high and low price to book
ratios on stock returns and found that low price to book ratios yielded higher returns than higher to book ratios from 1990 to 1996. Chaturvedi (2000) used event study methodology to analyze the ability of P/E ratio to discriminate under performing and over performing stocks. (2.9) Lee (1998) identified various components of stock prices and examined the
response of stock prices to different type of stocks: permanent and temporary changes in earnings and dividends, changes in discount factors, and non-fundamental factors. The analysis was conducted on nonlinear structural VAR framework and concluded that half of the yearly variations in prices are not related to either earnings or dividend changes. (2.10) Jia and Lilian (1994) investigated whether size and book-to-Market values of equity (BM) are proxying for macroeconomic risks found in Chen, Roll and Rosss (CRR) multifactor model or are measures of stock risk exposure to relative distress and found that size and BM are related to relative distress and that relative distress can explain the size effect, but only partially the effect of BM, on average stock returns.
RESEARCH METHODOLOGY (3.1) Statement of the problem:
The researcher is interested in finding out how the factors like market efficiency, liquidity has an impact towards determining the market price mechanism of the selected 5 shares from the NSE. (3.2) Research design: The researcher used Ex-posto- facto type of research design in his study. (3.3) Objectives of the study: (I) Primary objective: (1) To study and to analyse the crucial variables that determine the market price mechanism of the selected 5 scrips from the NSE. (II) Secondary objectives:
(1) To study and to analyse the influence of P/E ratio on the market price
mechanism of the NSE. (2) To study and to analyse the stock market returns and its reflection on the share prices.
(3) To study and to analyse to what extent the stock market provides safety to
the investors.
(4) To study and to analyse the impact of critical factors towards determining
the market price mechanism of the selected 5 scrips from NSE . (5) To study and to analyse the impact of cash EPS on the market price mechanism of the selected 5 scrips from NSE . (3.4) Data sources: The researcher used the secondary data collection method in his study and for this purpose the researcher collected ample data from the web site of
www.nseindia.com of 5 companies being listed in the NSE . The data is checked out for its reliability and validity before carrying out the study (Balance Sheet, P & L, of 5 companies)
(3.5)
Sampling Technique: The researcher used convenient type of sampling method in his study. The sample size is taken as 5 companies being listed in NSE. The Companies are as follows (i) Reliance Industries Limited (ii) Oil and Natural Gas Corporation Limited (iii) Infosys Technologies Limited (iv) Bharat Heavy Electricals Limited (v) Indian Oil Corporation Limited.
(3.6)
Scope of the study: The study is confined only to the selected 5 companies being listed in the NSE.
(3.7)
Analysis and Interpretation: The researcher used the following financial tools namely: (a) P/E ratio (d) Beta (b) Price/Book value ratio (e) Return on equity (c) Dividend yield (f) Debt-Equity (i) Return on net worth
(g) Cash EPS (h) Interest coverage ratio (j) EPS
(k) Return on Capital Employed(l) Total Return
The formulae are as follows: (a) P/E = Market Price Per share / Earnings Per share (b) P/B = Market Price per share / Book Value per share (c) Dividend Yield = (Dividend per share / Market price per share) * 100 (d) Required Return = Risk-free Return + Beta (Market Risk Premium) (e) Return on Equity = Net Profit / Net Worth. (f) Debt-Equity = (Long-term Debt + Short term debt) / Share holders Equity
(g) Cash EPS = (Net Income + Depreciation) / No. Of shares Outstanding. (h) Interest Coverage Ratio = EBIT / INTEREST (i) RONW = Profit after Tax / Paid Up Equity Capital + Reserves and Surplus. (j) ROCE = Profit before interest and Tax / Total Capital Employed (k) Total Return = (Cash Payment Received during the period + Price Change Over the Period) / Price of the Investment at the Beginning. The researcher used the following statistical tools namely (1) T-test (3) Trend (3.8) (2) One Way Annova (4) Factor Analysis.
Limitations of the Study: (i) The study is confined only to the selected 5 companies from NSE (ii) The sample size is restricted to 5 due to the time constraint .
RELIANCE INDUSTRIES LIMITED Table 4.1.1: Table showing the Price Earning Ratio for a period of Five years with special reference to Reliance Industries Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Market price of the share 441.66 506.90 719.42 1365.74 2241.59 Earnings per share 36.95 54.34 65.08 85.71 133.86 Price Earning ratio 11.95 9.33 11.05 15.93 16.75
Inference: From the above table it is inferred that the Price Earning Ratio records the maximum during the financial year 2007 - 08 & it records the minimum during the financial year 2004 - 05 with special reference to Reliance Industries Limited. Table 4.1.2: Table showing the Return on Capital Employed for a period of Five years with special reference to Reliance Industries Limited. Year Profit before interest and tax 10998.53 14283.96 15005.70 20642.80 29028.18 Total capital employed 31718.92 37673.44 45154.07 61255.02 78894.94 Return on capital employed 0.347 0.379 0.332 0.337 0.368
2003-04 2004-05 2005-06 2006-07 2007-08
Inference: From the above table it is inferred that the Return On Capital Employed records the maximum during the financial year 2004 - 05 & it records the minimum during the financial year 2005 06 with special reference to Reliance Industries Limited. Table 4.1.3: Table showing the Return On Net worth for a period of Five years with special reference to Reliance Industries Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Profit after Tax 5160.14 7571.68 9069.34 11943.40 19458.29 Total net worth 34452.45 40403.32 49804.26 63967.13 81448.60 Return on Net worth 0.1497 0.1874 0.1821 0.1867 0.2389
Inference: From the above table it is inferred that the Return On Net Worth records the maximum during the financial year 2007 - 08 & it records the minimum during the financial year 2003 - 04 with special reference to Reliance Industries Limited.
Table 4.1. 4: Table showing the Debt to Equity for a period of Five years with special reference to Reliance Industries Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Debt 28217.77 29737.88 29211.9 35427.18 38821.33 Equity 31718.92 37673.44 45154.07 61255.02 78894.94 Debt to Equity 0.889 0.789 0.646 0.578 0.492
Inference: From the above table it is inferred that the Debt to Equity records the maximum during the financial year 2003 - 04 & it records the minimum during the financial year 2007 - 08 with special reference to Reliance Industries Limited.
Table 4.1 5: Table showing the Price to Book Value Ratio for a period of Five years with special reference to Reliance Industries Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Market price of the share 441.66 506.90 719.42 1365.74 2241.59 Book Value of the share 227.15 270.35 324.03 439.57 542.74 Price to Book Value Ratio 1.94 1.88 2.22 3.11 4.13
Inference: From the above table it is inferred that the Price to Book Value Ratio records the maximum during the financial year 2007 - 08 & it records the minimum during the financial year 2004 - 05 with special reference to Reliance Industries Limited.
Table 4.1.6: Table showing the Dividend Yield for a period of Five years with special reference to Reliance Industries Limited. Year 200304 2004-05 2005-06 2006-07 2007-08 Dividend Per Share 5.25 7.50 10.00 10.33 11.22 Market price per share 441.66 506.90 719.42 1365.74 2241.59 Dividend Yield (%) 1.18 1.47 1.39 0.75 0.50
Inference: From the above table it is inferred that the Dividend Yield records the maximum during the financial year 2004 05 & it records the minimum during the financial year 2007 08 with special reference to Reliance Industries Limited.
Table 4.1.7: Table showing the Cash EPS for a period of Five years with special reference to Reliance Industries Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Net Income + Depreciation 8491.53 11356.25 12470.25 16758.55 24305.43 No. Of shares outstanding 139.59 139.31 139.32 139.31 145.34 Cash EPS 60.83 81.51 89.51 120.29 167.23
Inference: From the above table it is inferred that the Cash EPS records the maximum during the financial year 2007 08 & it records the minimum during the financial year 2003 04 with special reference to Reliance Industries Limited.
Table 4.1.8: Table showing the Return On Equity for a period of Five years with special reference to Reliance Industries Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Net Profit 5160.14 7571.68 9069.34 11943.40 19458.29 Net worth 34452.45 40403.32 49804.26 63967.13 81448.60 Return On Equity (%) 14.97 18.74 18.20 18.67 23.89
Inference: From the above table it is inferred that the Return of Equity records the maximum during the financial year 2007 08 & it records the minimum during the financial year 2003 04 with special reference to Reliance Industries Limited.
Table 4.1.9: Table showing the Total Return for a period of Five years with special reference to Reliance Industries Limited. Year Cash payment received during the period + Price change over during the period 260.48 8.75 250.3 1224.33 248.27 Price of the investment in the beginning 227.15 270.35 324.03 439.57 542.74 Total Return (%) 1.15 0.032 0.772 2.78 0.457
2003-04 2004-05 2005-06 2006-07 2007-08
Inference: From the above table it is inferred that the Total Return records the maximum during the financial year 2006 07 & it records the minimum during the financial year 2004 05 with special reference to Reliance Industries Limited.
Table 4.1.10: Table showing the Interest Coverage Ratio for a period of Five years with special reference to Reliance Industries Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 EBIT 6695.18 9204.8 10158.39 13444.32 20898.42 Interest 1443.40 1486.54 893.61 1298.90 1162.90 Interest Coverage Ratio (Times) 5.37 7.11 12.98 12.18 20.79
Inference: From the above table it is inferred that the Interest Coverage Ratio records the maximum during the financial year 2007 08 & it records the minimum during the financial year 2003 04 with special reference to Reliance Industries Limited.
Table 4.1.11: Table showing the Earnings Per Share for a period of Five years with special reference to Reliance Industries Limited. Year 2003 04 2004 05 2005 06 2006 07 2007 08 Earnings Per Share 36.95 54.34 65.08 85.71 133.86
Inference: From the above table it is inferred that the Earnings Per Share records the maximum during the financial year 2007 08 & it records the minimum during the financial year 2003 04 with special reference to Reliance Industries Limited.
Table 4.1.12: Table showing the Beta status for the period of Five years with special reference to Reliance Industries Limited. Year 2003 04 2004 05 2005 06 2006 07 2007 08 Beta Status 0.07871 0.28303 0.29225 0.46459 -0.87854
Inference : From the above table it is inferred that the Beta records the maximum during the financial year 2006 07 & minimum during the financial year 2007 08 with special reference to Reliance Industries Limited.
OIL & NATURAL GAS CORPORATION LIMITED Table 4.2.1: Table showing the Price Earning Ratio for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Market price of the share 609.19 771.37 1046.72 945.13 1009.34 Earnings per share 60.76 91.05 101.20 73.14 78.09 Price Earning ratio 10.02 8.47 10.34 12.92 12.93
Inference: From the above table it is inferred that the Price Earning Ratio records the maximum during the financial year 2007 - 08 & it records the minimum during the financial year 2004 - 05 with special reference to Oil & natural gas corporation Limited. Table 4.2.2: Table showing the Return on Capital Employed for a period of Five years with special reference to Oil & natural gas corporation Limited. Year Profit before interest and tax 18079.30 24981.75 29495.25 31393.14 33983.06 Total capital employed 40543.1 46845.4 53959.7 61923.9 70617.4 Return on capital employed 0.445 0.533 0.547 0.506 0.481
2003-04 2004-05 2005-06 2006-07 2007-08
Inference: From the above table it is inferred that the Return On Capital Employed records the maximum during the financial year 2005 - 06 & it records the minimum during the financial year 2003 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.3: Table showing the Return On Net worth for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Profit after Tax 8664.45 12983.05 14430.78 15642.92 16701.95 Total net worth 40543.10 46645.42 53959.67 61923.93 70617.40 Return on Net worth 0.214 0.278 0.267 0.253 0.237
Inference: From the above table it is inferred that the Return On Net Worth records the maximum during the financial year 2004 - 05 & it records the minimum during the financial year 2003 - 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.4: Table showing the Debt to Equity for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Debt 14517.73 37821.16 47638.17 59601.19 44311.11 Equity 40543.1 46845.4 53959.7 61923.9 70617.4 Debt to Equity 0.358 0.807 0.883 0.962 0.627
Inference: From the above table it is inferred that the Debt to Equity records the maximum during the financial year 2006 - 07 & it records the minimum during the financial year 2003 - 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.5: Table showing the Price to Book Value Ratio for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Market price of the share 609.19 771.37 1046.72 945.13 1009.34 Book Value of the share 284.33 328.52 378.42 195.41 235.84 Price to Book Value Ratio 2.14 2.35 2.76 3.26 3.05
Inference: From the above table it is inferred that the Price to Book Value Ratio records the maximum during the financial year 2006 - 07 & it records the minimum during the financial year 2003 - 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.6: Table showing the Dividend Yield for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 200304 2004-05 2005-06 2006-07 2007-08 Dividend Per Share 24 40 45 31 32 Market price per share 609.19 771.37 1046.72 945.13 1009.34 Dividend Yield(%) 0.039 0.051 0.042 0.032 0.032
Inference: From the above table it is inferred that the Dividend Yield records the maximum during the financial year 2004 05 & it records the minimum during the financial years 2006 07 & 2007 08 with special reference to Oil & natural gas corporation Limited.
Table 4.2.7: Table showing the Cash EPS for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Net Income + Depreciation 10432.47 14807.27 18283.54 18935.72 20617.72 No. Of shares outstanding 142.59 142.59 142.59 213.89 213.89 Cash EPS 73.16 103.84 128.22 88.53 96.39
Inference: From the above table it is inferred that the Cash EPS records the maximum during the financial year 2005 06 & it records the minimum during the financial year 2003 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.8: Table showing the Return on Equity for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Net Profit 8664.45 12983.05 14430.78 15642.92 16701.95 Net worth 40543.10 46645.42 53959.67 61923.93 70617.40 Return On Equity(%) 14.97 27.8 26.7 25.3 23.7
Inference: From the above table it is inferred that the Return of Equity records the maximum during the financial year 2004 05 & it records the minimum during the financial year 2003 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.9: Table showing the Total Return for a period of Five years with special reference to Oil & natural gas corporation Limited. Year Cash payment received during the period + Price change over during the period 487.6 48.6 430.55 433.6 102.95 Price of the investment in the beginning 284.33 328.52 378.42 195.41 235.84 Total Return(%)
2003-04 2004-05 2005-06 2006-07 2007-08
1.71 0.148 1.13 1.49 0.311
Inference: From the above table it is inferred that the Total Return records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2004 05 with special reference to Oil & natural gas corporation Limited.
Table 4.2.10: Table showing the Interest Coverage Ratio for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 EBIT 16376.25 23217.39 25470.05 27408.75 30660.58 Interest 2753.03 3548.39 3718.44 3724.81 5016.88 Interest Coverage Ratio(Times) 5.94 6.54 6.84 7.35 6.11
Inference: From the above table it is inferred that the Interest Coverage Ratio records the maximum during the financial year 2006 07 & it records the minimum during the financial year 2003 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.11: Table showing the Earnings Per Share for a period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003 04 2004 05 2005 06 2006 07 2007 08 Earnings Per Share 60.76 91.05 101.20 73.14 78.09
Inference: From the above table it is inferred that the Earnings Per Share records the maximum during the financial year 2005 06 & it records the minimum during the financial year 2003 04 with special reference to Oil & natural gas corporation Limited.
Table 4.2.12: Table showing the Beta status for the period of Five years with special reference to Oil & natural gas corporation Limited. Year 2003 04 2004 05 2005 06 2006 07 2007 08 Beta Status 0.19346 0.38623 0.33779 0.68004 -0.64255
Inference : From the above table it is inferred that the Beta records the maximum during the financial year 2006 - 07 & minimum during the financial year 2007 - 08 with special reference to Oil & natural gas corporation Limited.
INFOSYS TECHNOLOGIES LIMITED Table 4.3.1: Table showing the Price Earning Ratio for a period of Five years with special reference to Infosys Technologies Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Market price of the share 4296.47 2784.08 2543.34 2278.19 1776.96 Earnings per share 186.59 70.38 87.86 66.23 78.15 Price Earning ratio 23.03 39.59 28.95 34.39 22.74
Inference: From the above table it is inferred that the Price Earning Ratio records the maximum during the financial year 2004 - 05 & it records the minimum during the financial year 2007 - 08 with special reference to Infosys Technologies Limited. Table 4.3.2: Table showing the Return on Capital Employed for a period of Five years with special reference to Infosys Technologies Limited. Year Profit before interest and tax 1702.12 2498.99 3134.00 4605.00 5647.00 Total capital employed 3253.43 5241.73 6897 11162 13490 Return on capital employed 0.523 0.477 0.462 0.412 0.419
2003-04 2004-05 2005-06 2006-07 2007-08
Inference: From the above table it is inferred that the Return On Capital Employed records the maximum during the financial year 2003 - 04 & it records the minimum during the financial year 2006 07 with special reference to Infosys Technologies Limited.
Table 4.3.3: Table showing the Return On Net worth for a period of Five years with special reference to Infosys Technologies Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Profit after Tax 1243.37 1904.38 2421.00 3783.00 4470.00 Total net worth 3253.43 5241.73 6897 11162 13490 Return on Net worth 0.382 0.363 0.351 0.339 0.331
Inference: From the above table it is inferred that the Return On Net Worth records the maximum during the financial year 2003 - 04 & it records the minimum during the financial year 2007 - 08 with special reference to Infosys Technologies Limited.
Table 4.3.4: Table showing the Debt to Equity for a period of Five years with special reference to Infosys Technologies Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Debt 1883.52 1346.04 221700 1824 3731 Equity 3253.43 5241.73 6897 11162 13490 Debt to Equity 0.57 0.26 0.33 0.16 0.28
Inference: From the above table it is inferred that the Debt to Equity records the maximum during the financial year 2003 - 04 & it records the minimum during the financial year 2006 - 07 with special reference to Infosys Technologies Limited.
Table 4.3.5: Table showing the Price to Book Value Ratio for a period of Five years with special reference to Infosys Technologies Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Market price of the share 4296.47 2784.08 2543.34 2278.19 1776.96 Book Value of the share 488.20 193.73 250.29 195.41 235.83 Price to Book Value Ratio 8.80 14.37 10.16 11.65 7.53
Inference: From the above table it is inferred that the Price to Book Value Ratio records the maximum during the financial year 2004 - 05 & it records the minimum during the financial year 2007 - 08 with special reference to Infosys Technologies Limited.
Table 4.3.6: Table showing the Dividend Yield for a period of Five years with special reference to Infosys Technologies Limited. Year 200304 2004-05 2005-06 2006-07 2007-08 Dividend Per Share 25.9 22.89 89.71 22.69 66.50 Market price per share 4296.47 2784.08 2543.34 2278.19 1776.96 Dividend Yield(%) 0.60 0.82 3.52 1 3.74
Inference: From the above table it is inferred that the Dividend Yield records the maximum during the financial year 2007 08 & it records the minimum during the financial year 2003 04 with special reference to Infosys Technologies Limited. Table 4.3.7: Table showing the Cash EPS for a period of Five years with special reference to Infosys Technologies Limited.
Year 2003-04 2004-05 2005-06 2006-07 2007-08
Net Income + Depreciation 4574.86 5688.95 5821.91 8598.15 9317.14
No. Of shares outstanding 6.664 27.054 27.556 57.121 57.197
Cash EPS 221.24 80.30 102.69 74.44 87.69
Inference: From the above table it is inferred that the Cash EPS records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2006 07 with special reference to Infosys Technologies Limited.
Table 4.3.8: Table showing the Return of Equity for a period of Five years with special reference to Infosys Technologies Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Net Profit 1243.37 1904.38 2421.00 3783.00 4470.00 Net worth 3253.43 5241.73 6897 11162 13490 Return On Equity(%) 38.2 36.3 35.1 33.9 33.1
Inference: From the above table it is inferred that the Return of Equity records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2007 08 with special reference to Infosys Technologies Limited.
Table 4.3.9: Table showing the Total Return for a period of Five years with special reference to Infosys Technologies Limited.
Year
Cash payment received during the period + Price change over during the period 1911.17 2683.29 733.17 965.01 585.4
Price of the investment in the beginning 488.20 193.73 250.29 195.41 235.83
Total Return (%) 1.86 13.85 2.92 4.93 2.48
2003-04 2004-05 2005-06 2006-07 2007-08
Inference: From the above table it is inferred that the Total Return records the maximum during the financial year 2004 05 & it records the minimum during the financial year 2003 04 with special reference to Infosys Technologies Limited.
Table 4.3.10: Table showing the Interest Coverage Ratio for a period of Five years with special reference to Infosys Technologies Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 EBIT 6695.18 9204.8 10158.39 13444.32 20898.42 Interest 1443.40 1486.54 893.61 1298.90 1162.90 Interest Coverage Ratio(Times) 1962.28 2046.5 2725 4136 5101
Inference: From the above table it is inferred that the Interest Coverage Ratio records the maximum during the financial year 2007 08 & it records the minimum during the financial year 2003 04 with special reference to Infosys Technologies Limited. Table 4.3.11: Table showing the Earnings Per Share for a period of Five years with special reference to Infosys Technologies Limited. Year Earnings Per Share
2003 04 2004 05 2005 06 2006 07 2007 08
186.59 70.38 87.23 66.23 78.15
Inference: From the above table it is inferred that the Earnings Per Share records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2006 07 with special reference to Infosys Technologies Limited.
Table 4.3.12: Table showing the Beta status for a period of Five years with special reference to Infosys Technologies Limited. Year 2003 04 2004 05 2005 06 2006 07 2007 08 Beta Status 0.03106 0.33133 0.1518 0.11312 -0.2229
Inference : From the above table it is inferred that the Beta records the maximum during the financial year 2004 - 05 & minimum during the financial year 2007 - 08 with special reference to Infosys Technologies Limited.
BHARAT HEAVY ELECTRICALS LIMITED Table 4.4.1: Table showing the Price Earning Ratio for a period of Five years with special reference to Bharat Heavy Electricals Limited.
Year 2003-04 2004-05 2005-06 2006-07 2007-08
Market price of the share 409.23 631.78 1312.78 2258.95 2113.63
Earnings per share 26.89 38.95 68.60 98.66 58.41
Price Earning ratio 15.22 16.22 19.14 22.89 36.19
Inference: From the above table it is inferred that the Price Earning Ratio records the maximum during the financial year 2007 - 08 & it records the minimum during the financial year 2003 - 04 with special reference to Bharat Heavy Electricals Limited. Table 4.4.2: Table showing the Return on Capital Employed for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year Profit before interest and tax 868.59 1563.35 2565.60 4027.52 4731.40 Total capital employed 5295.54 6026.89 7301.38 8788.26 10774.21 Return on capital employed 0.164 0.259 0.351 0.458 0.439
2003-04 2004-05 2005-06 2006-07 2007-08
Inference: From the above table it is inferred that the Return On Capital Employed records the maximum during the financial year 2006 - 07 & it records the minimum during the financial year 2003 04 with special reference to Bharat Heavy Electricals Limited. Table 4.4.3: Table showing the Return On Net worth for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year Profit after Tax Total net worth Return on Net worth
2003-04 2004-05 2005-06 2006-07 2007-08
658.15 953.40 1679.17 2414.70 2859.34
5295.54 6026.89 7301.38 8788.26 10774.21
0.124 0.158 0.229 0.275 0.266
Inference: From the above table it is inferred that the Return On Net Worth records the maximum during the financial year 2006 - 7 & it records the minimum during the financial year 2003 - 04 with special reference to Bharat Heavy Electricals Limited.
Table 4.4.4: Table showing the Debt to Equity for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Debt 6979.60 9074.44 13054.46 17665.57 24241.65 Equity 5295.54 6026.89 7301.38 8788.26 10774.21 Debt to Equity 1.32 1.50 1.78 2.01 2.25
Inference: From the above table it is inferred that the Debt to Equity records the maximum during the financial year 2007 - 08 & it records the minimum during the financial year 2003 - 04 with special reference to Bharat Heavy Electricals Limited.
Table 4.4.5: Table showing the Price to Book Value Ratio for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year Market price of the share Book Value of the share Price to Book Value Ratio
2003-04 2004-05 2005-06 2006-07 2007-08
409.23 631.78 1312.78 2258.95 2113.63
216.37 246.24 298.31 359.06 220.10
1.89 2.57 4.40 6.29 9.60
Inference: From the above table it is inferred that the Price to Book Value Ratio records the maximum during the financial year 2007 - 08 & it records the minimum during the financial year 2003 - 04 with special reference to Bharat Heavy Electricals Limited.
Table 4.4.6: Table showing the Dividend Yield for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year 200304 2004-05 2005-06 2006-07 2007-08 Dividend Per Share 6.00 8.00 14.49 24.49 15.25 Market price per share 409.23 631.78 1312.78 2258.95 2113.63 Dividend Yield(%) 1.46 1.26 1.10 1.08 0.72
Inference: From the above table it is inferred that the Dividend Yield records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2007 08 with special reference to Bharat Heavy Electricals Limited. Table 4.4.7: Table showing the Cash EPS for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year 2003-04 Net Income + Depreciation 856.15 No. Of shares outstanding 24.48 Cash EPS 34.97
2004-05 2005-06 2006-07 2007-08
1172.27 1925.1 2659.31 3118.23
24.48 24.48 24.48 48.95
47.89 78.65 108.65 63.69
Inference: From the above table it is inferred that the Cash EPS records the maximum during the financial year 2006 07 & it records the minimum during the financial year 2003 04 with special reference to Bharat Heavy Electricals Limited.
Table 4.4.8: Table showing the Return on Equity for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Net Profit 658.15 953.40 1679.17 2414.70 2859.34 Net worth 5295.54 6026.89 7301.38 8788.26 10774.21 Return On Equity(%) 12.43 15.82 22.99 27.48 26.54
Inference: From the above table it is inferred that the Return of Equity records the maximum during the financial year 2006 07 & it records the minimum during the financial year 2003 04 with special reference to Bharat Heavy Electricals Limited. Table 4.4.9: Table showing the Total Return for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year Cash payment received during the period + Price change over during the period 381.8 Price of the investment in the beginning 216.37 Total Return (%) 1.05
2003-04
2004-05 2005-06 2006-07 2007-08
162.85 148.95 21.84 201.53
246.24 298.31 359.06 220.10
0.66 7.17 0.13 1.39
Inference: From the above table it is inferred that the Total Return records the maximum during the financial year 2005 06 & it records the minimum during the financial year 2006 07 with special reference to Bharat Heavy Electricals Limited. Table 4.4.10: Table showing the Interest Coverage Ratio for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 EBIT 1067.16 1651.11 2619.52 3769.12 4459.82 Interest 60.08 81.41 58.75 43.33 35.42 Interest Coverage Ratio(Times) 17.76 20.28 44.58 86.98 125.91
Inference: From the above table it is inferred that the Interest Coverage Ratio records the maximum during the financial year 2007 08 & it records the minimum during the financial year 2003 04 with special reference to Bharat Heavy Electricals Limited.
Table 4.4.11: Table showing the Earnings Per Share for a period of Five years with special reference to Bharat Heavy Electricals Limited. Year 2003 04 2004 05 2005 06 2006 07 Earnings Per Share 26.89 38.95 68.60 98.66
2007 08
58.41
Inference: From the above table it is inferred that the Earnings Per Share records the maximum during the financial year 2006 07 & it records the minimum during the financial year 2003 04 with special reference to Bharat Heavy Electricals Limited.
Table 4.4.12: Table showing the Beta status for a period of Five years with special reference to Bharat Heavy Electricals Limited Year 2003 04 2004 05 2005 06 2006 07 2007 08 . Inference : From the above table it is inferred that the Beta records the maximum during the financial year 2005 06 & minimum during the financial year 2007 - 08 with special reference to Bharat Heavy Electricals Limited. Beta Status 0.20091 0.38458 0.48661 0.46282 -0.5206
INDIAN OIL CORPORATION LIMITED Table 4.5.1: Table showing the Price Earning Ratio for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003-04 Market price of the share 397.79 Earnings per share 59.97 Price Earning ratio 6.63
2004-05 2005-06 2006-07 2007-08
435.87 437.35 461.29 492.91
41.88 42.08 64.21 58.39
10.41 10.39 7.18 8.44
Inference: From the above table it is inferred that the Price Earning Ratio records the maximum during the financial year 2004 - 05 & it records the minimum during the financial year 2003 - 04 with special reference to Indian Oil Corporation Limited. Table 4.5.2: Table showing the Return on Capital Employed for a period of Five years with special reference to Indian Oil Corporation Limited. Year Profit before interest and tax 11883.73 8634.66 9430.31 14624.78 14454.98 Total capital employed 23047.41 25984.36 29302.67 34857.29 41086.25 Return on capital employed 0.5156 0.3323 0.3218 0.4199 0.3518
2003-04 2004-05 2005-06 2006-07 2007-08
Inference: From the above table it is inferred that the Return On Capital Employed records the maximum during the financial year 2003 - 04 & it records the minimum during the financial year 2005 06 with special reference to Indian Oil Corporation Limited. Table 4.5.3: Table showing the Return On Net worth for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003-04 2004-05 2005-06 Profit after Tax 7004.82 4891.38 4915.12 Total net worth 23047.41 25984.36 29302.67 Return on Net worth 0.3039 0.1882 0.1677
2006-07 2007-08
7499.47 6962.58
34857.29 41086.25
0.2151 0.1695
Inference: From the above table it is inferred that the Return On Net Worth records the maximum during the financial year 2003 - 04 & it records the minimum during the financial year 2005 - 06 with special reference to Indian Oil Corporation Limited.
Table 4.5.4: Table showing the Debt to Equity for a period of Five years with special reference to Indian Oil Corporation Limited Year 2003-04 2004-05 2005-06 2006-07 2007-08 Debt 31984.2 11065.67 43760.27 45610.35 46914.84 Equity 23047.41 25984.36 29302.67 34857.29 41086.25 Debt to Equity 1.38 1.32 1.49 1.31 1.14
Inference: From the above table it is inferred that the Debt to Equity records the maximum during the financial year 2005 - 06 & it records the minimum during the financial year 2007 - 08 with special reference to Indian Oil Corporation Limited.
Table 4.5.5: Table showing the Price to Book Value Ratio for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 Market price of the share 397.79 435.87 437.35 461.29 Book Value of the share 197.32 222.47 250.88 298.22 Price to Book Value Ratio 2.02 1.96 1.74 1.55
2007-08
492.91
344.58
1.43
Inference: From the above table it is inferred that the Price to Book Value Ratio records the maximum during the financial year 2003 - 04 & it records the minimum during the financial year 2007 - 08 with special reference to Indian Oil Corporation Limited.
Table 4.5.6: Table showing the Dividend Yield for a period of Five years with special reference to Indian Oil Corporation Limited. Year 200304 2004-05 2005-06 2006-07 2007-08 Dividend Per Share 21.00 14.50 12.50 19.27 6.14 Market price per share 397.79 435.87 437.35 461.29 492.91 Dividend Yield(%) 0.052 0.033 0.029 0.041 0.012
Inference: From the above table it is inferred that the Dividend Yield records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2007 08 with special reference to Indian Oil Corporation Limited. Table 4.5.7: Table showing the Cash EPS for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 Net Income + Depreciation 8878.61 6964.18 7116.58 10089.78 No. Of shares outstanding 116.80 116.80 116.80 116.80 Cash EPS 76.02 59.62 61.24 86.39
2007-08
9672.28
119.23
81.12
Inference: From the above table it is inferred that the Cash EPS records the maximum during the financial year 2006 07 & it records the minimum during the financial year 2004 05 with special reference to Indian Oil Corporation Limited.
Table 4.5.8: Table showing the Return on Equity for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 Net Profit 7004.82 4891.38 4915.12 7499.47 6962.58 Net worth 23047.41 25984.36 29302.67 34857.29 41086.25 Return On Equity(%) 30.39 18.82 16.77 21.51 16.95
Inference: From the above table it is inferred that the Return of Equity records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2005 06 with special reference to Indian Oil Corporation Limited.
Table 4.5.9: Table showing the Total Return for a period of Five years with special reference to Indian Oil Corporation Limited. Year Cash payment received during the period + Price change over during the period 264.7 59.55 147.65 Price of the investment in the beginning 197.32 222.47 250.88 Total Return(%)
2003-04 2004-05 2005-06
1.3415 0.2676 0.5885
2006-07 2007-08
86.68 46.51
298.22 344.58
0.6259 0.1349
Inference: From the above table it is inferred that the Total Return records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2007 08 with special reference to Indian Oil Corporation Limited.
Table 4.5.10: Table showing the Interest Coverage Ratio for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003-04 2004-05 2005-06 2006-07 2007-08 EBIT 10122.08 6559.35 7700.94 11945.18 11656.85 Interest 470.86 604.17 995.44 1496.25 1589.73 Interest Coverage Ratio(Times) 21.49 10.86 7.74 7.98 7.33
Inference: From the above table it is inferred that the Interest Coverage Ratio records the maximum during the financial year 2003 04 & it records the minimum during the financial year 2007 08 with special reference to Indian Oil Corporation Limited.
Table 4.5.11: Table showing the Earnings Per Share for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003 04 2004 05 2005 06 2006 07 2007 08 Earnings Per Share 59.97 41.88 42.08 64.21 58.39
Inference: From the above table it is inferred that the Earnings Per Share records the maximum during the financial year 2006 07 & it records the minimum during the financial year 2004 05 with special reference to Indian Oil Corporation Limited.
Table 4.5.12: Table showing the Beta status for a period of Five years with special reference to Indian Oil Corporation Limited. Year 2003 04 2004 05 2005 06 2006 07 2007 08 Beta Status 0.23788 0.2928 0.37613 0.49303 -0.76505
Inference : From the above table it is inferred that the Beta records the maximum during the financial year 2006 - 07 & minimum during the financial year 2007 - 08 with special reference to Indian Oil Corporation Limited.
TREND ANALYSIS FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO RELIANCE INDUSTRIES LIMITED. Year Price Earning Ratio 2003-04 11.95 2004-05 9.33 2005-06 11.05 2006-07 15.93 2007-08 16.75
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 11.95 9.33 11.05 15.73 16.75
Y Y = dy -1.01 -3.63 -1.91 2.77 3.79
dxdy 2.02 3.63 0 2.77 7.58 16
Y = a + bx a = 12.96 b = 1.6
y = 12.96 + 1.6 (6) y = 12.96 + 9.6 y = 22.56
y = 12.96 + 1.6 (7) y = 12.96 + 11.2 y = 24.16
y = 12.96 + 1.6 (8) y = 12.96 + 12.8 y = 25.76
Inference : The Projected Price Earning Ratio is 22.56 for the year 2008 - 09. The Projected Price Earning Ratio is 24.16 for the year 2009 - 10. The Projected Price Earning Ratio is 25.76 for the year 2010 - 11.
TREND ANALYSIS FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO RELIANCE INDUSTRIES LIMITED. Year Dividend Yield 2003-04 1.18 2004-05 1.47 2005-06 1.59 2006-07 0.75 2007-08 0.50
10 X 1 2 3 4 5 Y = a + bx a = 1.09 b = -0.108 X - X = dx -2 -1 0 1 2 dx2 4 1 0 1 4 Y 1.18 1.47 1.59 0.75 0.50 Y Y = dy 0.09 0.38 0.5 -0.34 -0.59
-1.08 dxdy -0.18 -0.38 0 -0.34 -1.18
y = 1.09 + -0.108 (6) y = 1.09 + -0.648 y = 0.44
y = 1.09 + -0.108 (7) y = 1.09 + -0.314 y = 0.78
y = 1.09 + -0.108 (8) y = 1.09 + -0.864 y = 0.23
Inference : The Projected Dividend Yield is 0.44 for the year 2008 - 09. The Projected Dividend Yield is 0.78 for the year 2009 - 10. The Projected Dividend Yield is 0.23 for the year 2010 - 11.
T-TEST FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003 08 WITH SPECIAL REFERENCE TO RELIANCE INDUSTRIES LIMITED. H0: The Price Earning Ratio is independent to that of time period. H1: The Price Earning Ratio is dependent on the time period. Year Price Earning Ratio 2003-04 11.95 2004-05 9.33 2005-06 11.05 2006-07 15.93 2007-08 16.75
13
(X )2 = 41.02
=3.20
T =
X / n
13 11.05 3.20 / 2.236
1.95 1.43
= 1.349
At 5% significant level the degrees of freedom is given by (n1) (51) = 4 Tabulated Value (4, 5%) = 2.776 Calculated Value = 1.349
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence in the Price Earning Ratio.
T-TEST FOR CASH EPS FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO RELIANCE INDUSTRIES LIMITED. H0: The Cash EPS is independent to that of time period. H1: The Cash EPS is dependent on the time period. Year Cash EPS 2003-04 60.83 2004-05 81.52 2005-06 89.51 2006-07 120.31 2007-08 167.23
= 103.88
(XX)2 = 6842.8
= 41. 36
T =
X / n
103.88 89.51 41.36/5
14.37
0.777
41.36/2.236
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence in the Cash EPS.
T-TEST FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO RELIANCE INDUSTRIES LIMITED. H0: The Dividend Yield is independent to that of time period. H1: The Dividend Yield is dependent on the time period. Year Dividend Yield 2003-04 1.18 2004-05 1.47 2005-06 1.59 2006-07 0.75 2007-08 0.50
= 1.05
(XX)2
0.7009
= 0. 4185
T =
X / n
1.05 1.39 0.4185 /5
-0.34 0.4185/2.236
-1.888
At 5% significant level the degrees of freedom is given by (n1) (51) = 4 Tabulated Value (4, 5%) = 2.776 Calculated Value = -1.888
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence in the Dividend Yield.
ONE WAY ANNOVA
H0: There lies no significant variation between the Price Earning Ratio and Cash EPS with special reference to Reliance Industries Limited. H1: There lies a significant variation between the Price Earning Ratio and Cash EPS with special reference to Reliance Industries Limited. Year Price Earning Ratio Cash EPS 2003-04 11.95 60.83 2004-05 9.33 81.52 2005-06 11.05 89.51 2006-07 15.93 120.31 2007-08 16.75 167.23
Step 1: Mean of each sample means X1 = 36.38 X2 = 45.41 X3= 50.26 X4 = 68.09 X5 = 91.18
Step 2: Computation of X X = 58.42 Step 3: Mean difference between the samples n1 (X1 X)2 + n2 (X2 X)2 + n3 (X3 X)2 + n4 (X4 X)2 + n5 (X5 X)2 = 5080.76 Step 4 : Mean difference within the samples =(X1 X1)2 + (X2 X2)2 +(X3 X3)2 +(X4 X4)2 +(X5 X5)2 = 23634.24
SOURCE OF VARIATION BETWEEN THE SAMPLES WITHIN IN THE SAMPLES
SS 5080.76 23634.24
DEGREES OF FREEDOM (5-1) = 4 (10-5) = 5
MS 1270.19 4726.8
F.RATIO 0.268
5% (4, 5%) 5.19
= 1270.19 / 4726.8 = 0.268
Tabulated Value = 5.19 Calculated Value = 0.269
Inference : As the calculated value is less than tabulated H0 is accepted and hence it is concluded that the time period has no significant influence on the parameters Price Earning Ratio and Cash EPS.
RETURNS OF THE RELIANCE INDUSTRIES LIMITED FOR THE PERIOD OF FIVE YEARS 2003 2008 Table 4.1.13 : Table showing the Quarterly Average Return for the period of five years with a special reference to Reliance Industries Limited. Quarters Returns for 03-04 1st 2nd 3rd 4th -0.0475 -0.2198 0.1105 0.1191 Returns for 04-05 0.0240 0.1812 0.2205 0.1312 Returns for 05-06 -0.0899 0.3296 0.1137 0.0819 Returns for 06-07 0.0263 0.0776 0.1069 0.0822 Returns for 07-08 -0.0755 -0.0184 -0.0221 -0.1277
Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 4th Quarter & it records the minimum during the 2nd quarter for the Financial year 2003 04 with special reference to Reliance Industries Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 1st quarter for the Financial year 2004 05 with special reference to Reliance Industries Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 2nd Quarter & it records the minimum during the 1st quarter for the Financial year 2005 06 with special reference to Reliance Industries Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 1st quarter for the Financial year 2006 07 with special reference to Reliance Industries Limited. Inference : From the above table it is inferred that the Quarterly Average Return records a negative trend on all the Quarter for the financial year 2007 08 with special reference to Reliance Industries Limited.
TREND ANALYSIS FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2004-08 WITH SPECIAL REFERENCE TO OIL & NATURAL GAS CORPORATION LIMITED.
Year Price Earning Ratio
2003-04 10.02
2004-05 8.47
2005-06 10.34
2006-07 12.92
2007-08 12.93
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 10.02 8.47 10.34 12.92 12.93
Y Y = dy -0.92 -2.47 -0.6 1.98 1.99
dxdy 1.84 2.47 0 1.98 3.98 10.27
Y = a + bx a = 10.94 b = 1.03
y = 10.94 + 1.03 (6) y = 10.94 + 6.18 y = 17.12
y = 10.94 + 1.03 (7) y = 10.94 + 7.21 y = 18.15
y = 10.94 + 1.03 (8) y = 10.94 + 8.24 y = 19.18
Inference : The Projected Price Earning Ratio is 17.12 for the year 2008 - 09. The Projected Price Earning Ratio is 18.15for the year 2009 - 10. The Projected Price Earning Ratio is 19.18 for the year 2010 - 11.
TREND ANALYSIS FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2004-08 WITH SPECIAL REFERENCE TO OIL & NATURAL GAS CORPORATION LIMITED.
Year Dividend Yield 2003-04 0.039 2004-05 0.051 2005-06 0.042 2006-07 0.032 2007-08 0.031
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 0.039 0.051 0.042 0.032 0.031
Y Y = dy 0 0.012 0.003 0.007 0.008
dxdy 0 -0.012 0 0.007 0.016 0.011
Y = a + bx a = 0.039 b = 0.0011
y = 0.039 + 0.011 (6) y = 0.039 + 0.066 y = 0.105
y = 0.039 + 0.011 (7) y = 0.039 + 0.077 y = 0.116
y = 0.039 + 0.011 (8) y = 0.039 + 0.088 y = 0.127
T-TEST FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003 08 WITH SPECIAL REFERENCE TO OIL & NATURAL GAS CORPORATION LIMITED.
H0: The Price Earning Ratio is independent to that of time period. H1: The Price Earning Ratio is dependent on the time period.
Year Price Earning Ratio
2003-04 10.02
2004-05 8.47
2005-06 10.34
2006-07 12.92
2007-08 12.93
X = 10.94
(XX)2 =
15.187
1.948
T =
X / n
10.94 10.34 1.948 / 2.236
0.59 0.87
= 0.678
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence on the Price Earning Ratio.
T-TEST FOR CASH EPS FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO OIL & NATURAL GAS CORPORATION LIMITED.
H0: The Cash EPS is independent to that of time period. H1: The Cash EPS is dependent on the time period.
Year Cash EPS
2003-04 73.16
2004-05 103.84
2005-06 128.22
2006-07 88.53
2007-08 96.39
= 98.03
(XX)2
1656.04
414.01
T =
X / n
98.03 128.22 414.01 /5
-30.19
= -0.1631
414.01 / 2.236
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence on the Cash EPS.
T-TEST FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO OIL & NATURAL GAS CORPORATION LIMITED.
H0: The Dividend Yield is independent to that of time period. H1: The Dividend Yield is dependent to that of time period. Year Dividend Yield 2003-04 0.039 2004-05 0.051 2005-06 0.042 2006-07 0.032 2007-08 0.031
= 0.039
(XX)2
0.000262
= 0.0081
T =
X / n
0.038 0.042 0.0081 /5
-0.004
= -1.105
0.0081 / 2.236
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence on the Dividend Yield.
ONE WAY ANNOVA
H0: There lies no significant variation between the Price Earning Ratio and Cash EPS with special reference to Oil & natural gas corporation Limited. H1: There lies a significant variation between the Price Earning Ratio and Cash EPS with special reference to Oil & natural gas corporation Limited. Year Price Earning Ratio Cash EPS 2003-04 10.02 73.16 2004-05 8.47 103.84 2005-06 10.34 128.22 2006-07 12.92 88.53 2007-08 12.93 96.39
Step 1: Mean of each sample means X1 = 46.6 X2 = 93.16 X3 = 69.28 X4 = 50.73 X5 = 54.66
Step 2: Computation of X X = 62.87 Step 3: Mean difference between the samples n1 (X1 X)2 + n2 (X2 X)2 + n3 (X3 X)2 + n4 (X4 X)2 + n5 (X5 X)2 = 2876.11 Step 4 : Mean difference within the samples =(X1 X1)2 + (X2 X2)2 +(X3 X3)3+(X4 X4)2 + (X5 X5)2 = 22619.02
SOURCE OF VARIATION BETWEEN THE SAMPLES WITHIN IN THE SAMPLES
SS 2876.11 22619.02
DEGREES OF FREEDOM (5-1) = 4 (10-5) = 5
MS 719.03 4523.80
F.RATIO 0.1589
5% (4, 5%) 5.19
2876.11 / 22619.02 = 0.1589
Tabulated value = 5.19 Calculated value = 0.1589
Inference : As the calculated value is less than table value H0 is accepted and hence it is concluded that the time period has no significant influence on the parameters Price Earning Ratio and Cash EPS.
RETURNS OF THE OIL & NATURAL GAS CORPORATION LIMITED FOR THE PERIOD OF FIVE YEARS 2003 2008 Table 4.2.13 : Table showing the Quarterly Average Return for the period of five years with a special reference to Oil & natural gas corporation Limited. Quarters 1st 2nd 3rd 4th Returns for 03-04 0.0676 -0.2510 0.1853 0.0920 Returns for 04-05 0.0782 0.1673 0.0402 0.1244 Returns for 05-06 0.1261 -0.1565 0.0574 -0.2352 Returns for 06-07 0.0095 0.0095 0.0215 0.0990 Returns for 07-08 -0.0694 -0.0556 0.0867 -0.1182
Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 2nd quarter for the financial year 2003 04 with special reference to Oil & natural gas corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 2nd Quarter & it records the minimum during the 3rd quarter for the financial year 2004 05 with special reference to Oil & natural gas corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 1st Quarter & it records the minimum during the 4th quarter for the financial year 2005 06 with special reference to Oil & natural gas corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 4th Quarter & it records the minimum during the 1st quarter for the financial year 2006 07 with special reference to Oil & natural gas corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 4th quarter for the financial year 2007 08 with special reference to Oil & natural gas corporation Limited.
TREND ANALYSIS FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INFOSYS TECHNOLOGIES LIMITED. Year Price Earning Ratio 2003-04 23.03 2004-05 39.59 2005-06 28.95 2006-07 34.39 2007-08 22.74
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 23.03 39.59 28.95 34.39 22.74
Y Y = dy -6.71 9.85 -0.79 4.65 -7
dxdy 13.42 -9.85 0 4.65 -14 -5.78
Y = a + bx a = 29.74 b = -0.578 y = 29.74 + (-0.578) (7) y = 29.74 + (-4.046) y = 25.69 y = 29.74 +(-0. 578)(8) y = 29.74 + (-4.624) y = 25.12
y = 29.74 + (-0.578) (6) y = 29.74 + (-3.468) y = 26.27
TREND ANALYSIS FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INFOSYS TECHNOLOGIES LIMITED. Year Dividend Yield 2003-04 0.60 2004-05 0.82 2005-06 3.52 2006-07 1 2007-08 3.74
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 0.60 0.82 3.52 1 3.74
Y Y = dy -1.34 -1.12 1.58 -0.94 1.8
dxdy 2.68 1.12 0 -0.94 3.6 7.4
Y = a + bx a = 1.94 y = 1.94 + 0.74 (6) y = 1.94 + 4.44 y = 6.38 b = 0.74 y = 1.94 + 0.74 (7) y = 1.94 + 5.18 y = 7.12 y = 1.94 + 0.74 (8) y = 1.94 + 5.92 y = 7.86
T-TEST FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003 08 WITH SPECIAL REFERENCE TO INFOSYS TECHNOLOGIES LIMITED.
H0: The Price Earning Ratio is independent to that of time period. H1: The Price Earning Ratio is dependent to that of time period. Year Price Earning Ratio 2003-04 23.03 2004-05 39.59 2005-06 28.95 2006-07 34.39 2007-08 22.74
= 29.74
(XX)2 = 213.28
= 7.302
T =
X / n
29.74 28.95 = 7.302/2.236
0.79 3.27
= 0.242
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence in the Price Earning Ratio.
T-TEST FOR CASH EPS FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INFOSYS TECHNOLOGIES LIMITED.
H0: The Cash EPS is independent to that of time period. H1: The Cash EPS is dependent to that of time period. Year Cash EPS 2003-04 221.24 2004-05 80.30 2005-06 102.69 2006-07 74.44 2007-08 87.69
= 113.27
(XX)2
15018.59
= 3754.65
T =
X / n
113.27 102.69 3754.65/5
10.58 1679.18
0.0063
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence in the Cash EPS.
T-TEST FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INFOSYS TECHNOLOGIES LIMITED. H0: The Dividend Yield is independent to that of time period. H1: The Dividend Yield is dependent to that of time period. Year Dividend Yield 2003-04 0.60 2004-05 0.82 2005-06 3.52 2006-07 1 2007-08 3.74
= 1.94
(XX)2
9.65
= 2.43
T =
X / n
1.94 3.52 2.43 /5
-1.58 1.08
-1.463
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence in the Dividend Yield.
RETURNS OF THE INFOSYS TECHNOLOGIES LIMITED FOR THE PERIOD OF FIVE YEARS 2003 2008 Table 4.3.13 : Table showing the Quarterly Average Return for a period of five years with a special reference to Infosys technologies Limited. Quarters 1st 2nd 3rd 4th Returns for 03-04 -0.1166 0.1149 -0.6285 0.2249 Returns for 04-05 0.0795 0.0765 0.0683 0.1835 Returns for 05-06 -0.0028 0.0396 -0.3472 0.2016 Returns for 06-07 0.1398 0.2752 0.0355 -0.3347 Returns for 07-08 -0.0634 0.0739 -0.0615 -0.0714
Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 4th Quarter & it records the minimum during the 3rd quarter for the financial year 2003 04 with special reference to Infosys technologies Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 4th Quarter & it records the minimum during the 3rd quarter for the financial year 2004 05 with special reference to Infosys technologies Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 4th Quarter & it records the minimum during the 3rd quarter for the financial year 2005 06 with special reference to Infosys technologies Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 2nd Quarter & it records the minimum during the 4th quarter for the financial year 2006 07 with special reference to Infosys technologies Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 2nd Quarter & it records the minimum during the 4th quarter for the financial year 2007 08 with special reference to Infosys technologies Limited.
TREND ANALYSIS FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO BHARAT HEAVY ELECTRICALS LIMITED. Year Price Earning Ratio 2003-04 15.22 2004-05 16.22 2005-06 19.14 2006-07 22.89 2007-08 36.19
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 15.22 16.22 19.14 22.89 36.19
Y Y = dy -6.71 -5.71 -2.79 0.96 14.26
dxdy 13.42 5.71 0 0.96 28.52 48.61
Y = a + bx a = 21.93 b = 4.86
y = 21.93 + 4.86 (6) y = 21.93 + 29.16 y = 51.09
y = 21.93 + 4.86 (7) y = 21.93 + 34.02 y = 55.95
y = 21.93 + 4.86 (8) y = 21.93 + 38.88 y = 60.81
Inference : The Projected Price Earning Ratio is 51.09 for the year 2008 - 09. The Projected Price Earning Ratio is 55.95for the year 2009 - 10. The Projected Price Earning Ratio is 60.81 for the year 2010 - 11.
TREND ANALYSIS FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO BHARAT HEAVY ELECTRICALS LIMITED. Year Dividend Yield 2003-04 1.46 2004-05 1.26 2005-06 1.10 2006-07 1.08 2007-08 0.72
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 1.46 1.26 1.10 1.08 0.72
Y Y = dy 0.34 0.14 -0.02 -0.04 -0.4
dxdy -0.68 -0.14 0 -0.04 -0.8 -1.66
Y = a + bx a = 1.12 b = -0.166
y = 1.12 + (-0.166) (6) y = 1.12 + (-0.996) y = 0.124
y = 1.12 + (-0.166) (7) y = 1.12 + (-1.162) y = -0.042
y = 1.12 + (-0.166) (8) y = 1.12 + (-1.328) y = -0.208
Inference : The Projected Dividend Yield Ratio is 0.124 for the year 2008 - 09. The Projected Dividend Yield Ratio is -0.042 for the year 2009 - 10. The Projected Dividend Yield Ratio is -0.208 for the year 2010 - 11.
T-TEST FOR DIVIDEND YIELD RATIO FOR A PERIOD OF FIVE YEARS 2003 08 WITH SPECIAL REFERENCE TO BHARAT HEAVY ELECTRICALS LIMITED.
H0: The Dividend Yield Ratio is independent to that of time period. H1: The Dividend Yield Ratio is dependent on the time period. Year Dividend Yield 2003-04 1.46 2004-05 1.26 2005-06 1.10 2006-07 1.08 2007-08 0.72
= 1.12
(XX)2
0.2972
=0.273
T =
X / n
1.12 1.10 0.273 / 2.236
0.02 0.122
0.164
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence on the Dividend Yield Ratio.
T-TEST FOR CASH EPS FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO BHARAT HEAVY ELECTRICALS LIMITED.
H0: The Cash EPS is independent to that of time period. H1: The Cash EPS is dependent on the time period. Year Cash EPS = 66.77 2003-04 34.97 2004-05 47.89 (XX)2 2005-06 78.65 2006-07 108.65 = 28.60 2007-08 63.69
3272.23
T =
X / n
66.77 78.65 28.60 / 5
-11.88
= -0.928
414.01 / 2.236
T-TEST FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO BHARAT HEAVY ELECTRICALS LIMITED.
= 21.93
(XX)2
289.66
= 8.509
T =
X / n
= 21.93 19.14 8.509 / 5
2.79 8.509 / 2.236
0.444
RETURNS OF THE BHARAT HEAVY ELECTRICALS LIMITED FOR THE PERIOD OF FIVE YEARS 2003 - 3008 Table 4.4.13: Table showing the Quarterly Average Return for the period of five years with a special reference to Bharat Heavy Electricals Limited. Quarters 1st 2nd 3rd 4th Returns for 03-04 0.18832 -0.13325 0.13801 0.31748 Returns for 04-05 0.01481 0.13107 0.36705 0.15797 Returns for 05-06 0.52402 -0.11681 0.21558 -0.0381 Returns for 06-07 -0.0005 -0.07943 0.09838 0.09141 Returns for 07-08 -0.06436 -0.12449 0.05547 -0.04449
Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 4th Quarter & it records the minimum during the 2nd quarter for the financial year 2003 04 with special reference to Bharat Heavy Electricals Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 1st quarter for the financial year 2004 05 with special reference to Bharat Heavy Electricals Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 1st Quarter & it records the minimum during the 2nd quarter for the financial year 2005 06 with special reference to Bharat Heavy Electricals Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 2nd quarter for the financial year 2006 07 with special reference to Bharat Heavy Electricals Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 2nd quarter for the financial year 2007 08 with special reference to Bharat Heavy Electricals Limited.
TREND ANALYSIS FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INDIAN OIL CORPORATION LIMITED. Year Price Earning Ratio 2003-04 6.63 2004-05 10.41 2005-06 10.39 2006-07 7.18 2007-08 8.44
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 6.63 10.41 10.39 7.18 8.44
Y Y = dy -1.98 1.8 1.78 -1.43 -0.17
dxdy 3.96 -1.8 0 -1.43 -0.34 0.39
Y = a + bx a = 8.61 b = 0.039
y = 8.61 + 0.039 (6) y = 8.61 + 0.234 y = 8.84
y = 8.61 + 0.039 (7) y = 8.61 + 0.273 y = 8.88
y = 8.61 + 0.039 (8) y = 8.61 + 0.312 y = 8.92
TREND ANALYSIS FOR DIVIDEND YIELD FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INDIAN OIL CORPORATION LIMITED. Year Dividend Yield 2003-04 0.052 2004-05 0.033 2005-06 0.029 2006-07 0.041 2007-08 0.012
X 1 2 3 4 5
X - X = dx -2 -1 0 1 2
dx2 4 1 0 1 4 10
Y 0.052 0.033 0.029 0.041 0.012
Y Y = dy 0.019 0 -0.004 0.008 -0.021
dxdy 0.038 0 0 0.008 -0.042 0.076
Y = a + bx a = 0.1244 b = 0.0076
y = 0.1244 + (0.0076) (6) y = 0.1244 + (0.0456) y = 0.0056
y = 0.1244 + (0.0076) (7) y = 0.1244 + (0.0532) y = 0.1776
y = 0.1244 + (0.0076) (8) y = 0.1244 + (0.0608) y = 0.1852
Inference : The Projected Dividend Yield Ratio is 0.0056 for the year 2008 - 09. The Projected Dividend Yield Ratio is 0.1776 for the year 2009 - 10. The Projected Dividend Yield Ratio is 0.1852 for the year 2010 - 11.
T-TEST FOR DIVIDEND YIELD RATIO FOR A PERIOD OF FIVE YEARS 2003 08 WITH SPECIAL REFERENCE TO INDIAN OIL CORPORATION LIMITED.
H0: The Dividend Yield Ratio is independent to that of time period. H1: The Dividend Yield Ratio is dependent on the time period. Year Dividend Yield 2003-04 0.052 2004-05 0.033 2005-06 0.029 2006-07 0.041 2007-08 0.012
= 0.033
(XX)2 = 0.00088
= 0.01483
T =
X / n
0.033 0.029 0.01483 / 2.236
0.004 0.0066
0.6060
Inference : As the Calculated value is less than the table value H0 is accepted and hence it is concluded that the time period has no influence on the Dividend Yield Ratio.
T-TEST FOR CASH EPS FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INDIAN OIL CORPORATION LIMITED.
H0: The Cash EPS is independent to that of time period. H1: The Cash EPS is dependent on the time period. Year Cash EPS 2003-04 76.02 2004-05 59.62 2005-06 61.24 2006-07 86.39 2007-08 81.12
= 72.88
(XX)2 = 571.58
= 11.95
T =
X / n
72.88 61.24 11.95 / 5
11.64
= 2.179
11.95 / 2.236
T-TEST FOR PRICE EARNING RATIO FOR A PERIOD OF FIVE YEARS 2003-08 WITH SPECIAL REFERENCE TO INDIAN OIL CORPORATION LIMITED.
= 8.61
(XX)2 = 12.41
=1.761
T =
X / n
= 8.61 10.39 1.761 / 5
-1.78 1.761 / 2.236
-2.282
ONE WAY ANNOVA
H0: There lies no significant variation between the Price Earning Ratio and Cash EPS with special reference to Indian Oil Corporation Limited. H1: There lies a significant variation between the Price Earning Ratio and Cash EPS with special reference to Indian Oil Corporation Limited. Year Price Earning Ratio Cash EPS 2003-04 6.63 76.02 2004-05 10.41 59.62 2005-06 10.39 61.24 2006-07 7.18 86.39 2007-08 8.44 81.12
Step 1: Mean of each sample means. X1= 41.33 X2= 35.02 X3 = 35.82 X4= 46.79 X5= 44.78
Step 2: Computation of X X = 40.78 Step 3: Mean difference between the samples n1 (X1 X)2 + n2 (X2 X)2 + n3 (X3 X)2 + n4 (X4 X)2 + n5 (X5 X)2 = 220.44 Step 4 : Mean difference within the samples = ( X1- 1)2 + ( X2- 2)2 + ( X3- 3)2 + ( X4- 4)2 + ( X5- 5)2 = 10689.44 SOURCE OF VARIATION BETWEEN THE SAMPLES WITHIN IN THE SAMPLES SS 220.44 10689.44 DEGREES OF FREEDOM (5-1) = 4 (10-5) = 5 MS 55.11 2137.88 F.RATIO 0.0258 5% (4, 5%) 5.19
= 55.11 / 2137.88 = 0.0258 Tabulated value = 5.19 Calculated value = 0.0258 Inference : As the calculated value is less than table value H0 is accepted and hence it is concluded that the time period has no significant influence on the parameters Price Earning Ratio and Cash EPS.
RETURNS OF THE INDIAN OIL CORPORATION LIMITED FOR THE PERIOD OF FIVE YEARS 2003 2008 Table 4.5.13 : Table showing the Quarterly Average Return for the period of Five years with a special reference to Indian Oil Corporation Limited. Quarters 1st 2nd 3rd 4th Returns for 03-04 0.08787 -0.21005 0.17849 0.17276 Returns for 04-05 -0.14197 -0.02843 0.07080 0.22931 Returns for 05-06 0.05668 -0.35015 0.30084 -0.13823 Returns for 06-07 -0.0005 -0.07943 0.09838 0.09141 Returns for 07-08 -0.06436 -0.12449 0.05547 -0.04449
Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 2nd quarter for the financial year 2003 04 with special reference to Indian Oil Corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 4th Quarter & it records the minimum during the 1st quarter for the financial year 2004 05 with special reference to Indian Oil Corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 2nd quarter for the financial year 2005 06 with special reference to Indian Oil Corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 2nd quarter for the financial year 2006 07 with special reference to Indian Oil Corporation Limited. Inference : From the above table it is inferred that the Quarterly Average Return records the maximum during the 3rd Quarter & it records the minimum during the 2nd quarter for the financial year 2007 08 with special reference to Indian Oil Corporation Limited.
FACTOR ANALYSIS
FOR THE FINANCIAL YEAR 2003 04
Rotated Component Matrix(a) Component 1 PRICE EARNING RATIO RETURN ON CAPITAL EMPLOYED RETURN ON NET WORTH DEBT TO EQUITY PRICE TO BOOK VALUE RATIO DIVIDEND YIELD CASH EPS RETURN ON EQUITY TOTAL RETURN INTEREST COVERAGE RATIO EARNINGS PER SHARE .952 .373 -.128 -.221 .997 -.674 .991 .619 .770 .996 .985 2 -.306 .927 -.861 .914 .032 .728 .114 .653 .236 .031 .172
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 3 iterations. Inference : From the above factor analysis it is inferred that the following factors namely Price to Book Value Ratio, Interest Coverage Ratio, Return on Capital Employed and Debt to Equity ratios are the dominant variables in determining the market price mechanism of the Equity Shares.
FOR THE FINANCIAL YEAR 2004 05 Rotated Component Matrix(a) Component 1 2 .997 .076 .284 -.113 -.737 .986 -.705 -.032 .797 .992 .991 .148 .954 .074 -.578 .163 .341 .986 .579 .127 .133 .986
PRICE EARNING RATIO RETURN ON CAPITAL EMPLOYED RETURN ON NET WORTH DEBT TO EQUITY PRICE TO BOOK VALUE RATIO DIVIDEND YIELD CASH EPS RETURN ON EQUITY TOTAL RETURN INTEREST COVERAGE RATIO EARNINGS PER SHARE
3 .015 .098 -.991 .351 .017 .621 -.165 .171 .015 .002 .083
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 5 iterations. Inference : From the above analysis it is inferred that the following factors namely Price Earning Ratio, Total Return, Interest Coverage Ratio, Return on Capital Employed, Cash EPS, Earnings Per Share, Debt to Equity, Dividend Yield, and Return on Equity are the dominant factors that determine the market price mechanism of the Equity shares.
FOR THE FINANCIAL YEAR 2005 06
Rotated Component Matrix(a) Component 1 2 3 .993 .115 .032 .227 -.040 -.664 .972 .173 .166 .785 .939 .991 .307 .925 .101 -.567 .231 .529 .984 .598 .337 .117 .952 .304 -.994 .488 .051 .831 -.064 .162 .067 .065 -.019
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 4 iterations.
Inference : From the above analysis it is inferred that the variable Return on Capital
Employed is a dominant factor while Price Earning Ratio, Price to Book Value Ratio, Interest Coverage Ratio, Cash EPS, Earnings Per Share, Debt to Equity and Dividend Yield are the supportive factors that drives the market price mechanism of the Equity shares.
FOR THE FINANCIAL YEAR 2006 07 Rotated Component Matrix(a) Component
1 .998 -.126 .082 -.930 .993 -.746 -.332 .862 .971 .959 .002
2 .050 -.740 .997 -.351 -.119 -.662 .939 -.493 .241 -.226 .926
Inference : From the above factor analysis it is inferred that the variables namely
Price Earning Ratio, Price to Book Value Ratio, Return On Net worth, and Cash EPS are the dominant variables in driving the market price mechanism of the Equity Shares.
FOR THE FINANCIAL YEAR 2007-08 Rotated Component Matrix(a) Component 2 .345 -.053
PRICE EARNING RATIO RETURN ON CAPITAL EMPLOYED
1 .911 .202
3 .226 .978
RETURN ON NET WORTH DEBT TO EQUITY PRICE TO BOOK VALUE RATIO DIVIDEND YIELD CASH EPS RETURN ON EQUITY TOTAL RETURN INTEREST COVERAGE RATIO EARNINGS PER SHARE
.069 -.763 .954 .593 -.005 .908 .992 .975 .163
.983 -.474 .211 -.431 .999 .188 -.096 -.220 .985
-.171 -.440 .214 .680 -.043 .375 .085 .039 .050
Inference : From the above analysis it is inferred that the following factors namely
Price to Book Value Ratio, Total Return, Interest Coverage Ratio, Return on Net worth, Cash EPS, Earnings Per Share, Return on Capital Employed, Dividend Yield & Return On Equity are the crucial variables in driving the market price mechanism of the Equity Shares.
FOR FIVE YEARS 2003 2008 Rotated Component Matrix(a) Component 2 .131 .609 .242 -.251 .218
PRICE EARNING RATIO RETURN ON CAPITAL EMPLOYED RETURN ON NET WORTH DEBT TO EQUITY PRICE TO BOOK VALUE RATIO
1 .962 .220 -.079 -.646 .965
3 -.169 .647 -.818 .433 -.029
DIVIDEND YIELD CASH EPS RETURN ON EQUITY TOTAL RETURN INTEREST COVERAGE RATIO EARNINGS PER SHARE
-.289 .054 .700 .858 .839 .171
-.060 .950 .539 -.069 .096 .958
.867 -.231 .377 -.012 .064 -.126
Inference : From the above analysis it is inferred that the variables namely
Price Earning Ratio, Price to Book Value Ratio, Total Return, Cash EPS, Earnings Per Share, Return on Capital Employed, Debt Equity, and Dividend Yield are the dominant variables that drive the market price mechanism of the Equity Shares.
FINDINGS COMPANY 1: RELIANCE INDUSTRIES LIMITED

The Price Earnings Ratio records the highest during the financial year 2007 08. The Return on capital employed records the highest during the financial year 2004 05. The Return on Net worth records the maximum during the financial year 2007 08. The Debt to Equity records the maximum during the financial year 2004 05. The Price to Book value ratio records the highest during the financial year 2007 08. The Dividend Yield records the maximum during the financial year 2004 05. The Cash EPS records the maximum during the financial year 2007 08. The Return on Equity records the maximum during the financial year 2007 08. The Total Return records the highest during the financial year 2006 07.
The Interest Coverage Ratio records the highest during the financial year 2007 08. The EPS records the maximum during the financial year 2007 08.
COMPANY 2 : INFOSYS TECHNOLOGIES LIMITED

The Price Earnings Ratio records the highest during the financial year 2004 05. The Return on capital employed records the highest during the financial year 2003 04. The Return on Net worth records the maximum during the financial year 2003 04. The Debt to Equity records the maximum during the financial year 2003 04. The Price to Book value ratio records the highest during the financial year 2004 05. The Dividend Yield records the maximum during the financial year 2007 08. The Cash EPS records the maximum during the financial year 2007 08. The Return on Equity records the maximum during the financial year 2007 08. The Total Return records the highest during the financial year 2004 05. The Interest Coverage Ratio records the highest during the financial year 2007 08. The EPS records the maximum during the financial year 2003 04.
COMPANY 3 : BHARAT HEAVY ELECTRICALS LIMITED

The Price Earnings Ratio records the highest during the financial year 2007 08. The Return on capital employed records the highest during the financial year 2006 07. The Return on Net worth records the maximum during the financial year 2006 07. The Debt to Equity records the maximum during the financial year 2007 08. The Price to Book value ratio records the highest during the financial year 2007 08. The Dividend Yield records the maximum during the financial year 2003 04. The Cash EPS records the maximum during the financial year 2006 07. The Return on Equity records the maximum during the financial year 2006 07. The Total Return records the highest during the financial year 2005 06. The Interest Coverage Ratio records the highest during the financial year 2007 08.
The EPS records the maximum during the financial year 2006 07.
COMPANY 4 : OIL & NATURAL GAS CORPORATION LIMITED

The Price Earnings Ratio records the highest during the financial year 2007 08. The Return on capital employed records the highest during the financial year 2005 06. The Return on Net worth records the maximum during the financial year 2004 05. The Debt to Equity records the maximum during the financial year 2006 07. The Price to Book value ratio records the highest during the financial year 2006 07. The Dividend Yield records the maximum during the financial year 2004 05. The Cash EPS records the maximum during the financial year 2005 06. The Return on Equity records the maximum during the financial year 2004 05. The Total Return records the highest during the financial year 2003 04. The Interest Coverage Ratio records the highest during the financial year 2006 07. The EPS records the maximum during the financial year 2005 06.
COMPANY 5 : INDIAN OIL CORPORATION LIMITED

The Price Earnings Ratio records the highest during the financial year 2004 05. The Return on capital employed records the highest during the financial year 2003 04. The Return on Net worth records the maximum during the financial year 2003 04. The Debt to Equity records the maximum during the financial year 2005 06. The Price to Book value ratio records the highest during the financial year 2003 04. The Dividend Yield records the maximum during the financial year 2003 04. The Cash EPS records the maximum during the financial year 2006 07. The Return on Equity records the maximum during the financial year 2003 04. The Total Return records the highest during the financial year 2003 04. The Interest Coverage Ratio records the highest during the financial year 2003 04.
The EPS records the maximum during the financial year 2006 07.
Major Findings from the Over all Factor Analysis results for the years 2003-2008 : The companies include Reliance Industries, Oil and natural gas corporation, Infosys Technologies, Bharat Heavy Electricals Limited and Indian Oil Corporation : The study reveals that the variables namely P/E ratio, P/B ratio, Total Return, Cash EPS , EPS, Return on Capital employed , Debt equity and Dividend yield are the dominant factors in determining the market price mechanism of the equity shares for the years 2003-2008.
SUGGESTIONS
The Investor should study & assess the book value (Investment Per Share) before deciding on the Investment proposal. The Investor should assess the EPS of the Company before making an investment proposal as it reflects significantly towards safeguarding the wealth maximisation of the shareholders. The Investor should assess the relationship of the PE ratio with the Market Price before making an investment proposal and should ensure that the end result of this analysis should be positive and thereby he will be in a position to ascertain, when he can recover his investment.
The Investor should assess the Return on Net worth status before making an investment proposal as it reflects the productivity of the equity capital invested before. The Investor should be in a position to ascertain the risk factor associated with his investment proposal and he should be in a position to ascertain the sensitivity in term of Index / Market return.
CONCLUSION The researcher carried out the study with the objective of finding out the crucial factors that determining the market price mechanism of the selected five stocks from NSE. The study reveals that the factors namely Return on Capital Employed that drives the market price mechanism of the selected stock. The study further reveals that Earnings Per Share, Cash EPS, Price Earning Ratio, and Dividend Yield too plays a dominant role in determining the market price mechanism of the selected stocks. Thus investors are advised to have a glimpse on the variable namely Price Earning Ratio, Earnings Per Share, Dividend Yield, Cash EPS before making an investment decision. Earning Power Factor represents the earning power of the companies and therefore, termed as earning power factor. The factor consists of earning per share, cash earning per share and book value per share. Return On Investment is termed as Return on Investment factor. The factor consists of Price to Book Value, Return on Capital Employed, and Return on Net Worth. Volatility Factor which consists of Beta, Average
Return and Market Capitalisation. Growth Factor which consists of Dividend Yield and Price-Earning Ratio. Hence the prospective investors are guided towards determining on an optimum investment portfolio by assessing the liquidity, return and market price before making an investment decision. Thus ensuring that wealth maximisation of shareholders has been accomplished.
BIBLIOGRAPHY
REFERENCES: 1) Dr. Ramachandran R & Dr. Srinivasan R, Management Accounting, Trichy Shriram Publications Pvt Ltd, 2007. 2) Punithavathy Pandiyan, Security Analysis and Portfolio Management, Vikas Publishing House Pvt Ltd. 3) Kothari C.R., Research Methodology, New Delhi, New Age International (P) Ltd, 2006. WEBSITES: www.moneycontrol.com
www.nseindia.com www.google.com JOURNALS: ICFAI Journals of Applied Finance Year 2007, Vol:13, Issue:1, Page :5-22, The ICFAI University Press.

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A STUDY ON THE FACTORS AFFECTING THE MARKET PRICE AD RETURNS OF SHARES OF SELECTED COMPANIES FROM NIFTY

Prof.P.KOTHANDARAMAN Head of the Department

I hereby declare that the project titled A STUDY ON THE FACTORS

M. GANESH Reg No:81907501015

(g) Cash EPS (h) Interest coverage ratio (j) EPS

(k) Return on Capital Employed(l) Total Return

1.1.1 PRICE-EARNING RATIO:

1.1.2 RETURN ON CAPITAL EMPLOYED:

1.1.3 RETURN ON NETWORTH:

1.1.4 DEBT TO EQUITY RATIO (D/E)

1.1.5 PRICE TO BOOK VALUE RATIO:

1.1.6 DIVIDEND YIELD:

1.1.7 TOTAL RETURN

1.1.9 CASH EPS

1.1.10 EARNINGS PER SHARE :

1.1.11 INTEREST COVERAGE RATIO

1.1.12 RETURN ON EQUITY

1.2 COMPANY PROFILE

1.2.4 Bharat Heavy Electricals Limited

RESEARCH METHODOLOGY (3.1) Statement of the problem:

(g) Cash EPS (h) Interest coverage ratio (j) EPS

(k) Return on Capital Employed(l) Total Return

2003-04 2004-05 2005-06 2006-07 2007-08

2003-04 2004-05 2005-06 2006-07 2007-08

2003-04 2004-05 2005-06 2006-07 2007-08

2003-04 2004-05 2005-06 2006-07 2007-08

1.71 0.148 1.13 1.49 0.311

2003-04 2004-05 2005-06 2006-07 2007-08

Year 2003-04 2004-05 2005-06 2006-07 2007-08

Net Income + Depreciation 4574.86 5688.95 5821.91 8598.15 9317.14

No. Of shares outstanding 6.664 27.054 27.556 57.121 57.197

Cash EPS 221.24 80.30 102.69 74.44 87.69

Total Return (%) 1.86 13.85 2.92 4.93 2.48

2003-04 2004-05 2005-06 2006-07 2007-08

2003 04 2004 05 2005 06 2006 07 2007 08

186.59 70.38 87.23 66.23 78.15

Year 2003-04 2004-05 2005-06 2006-07 2007-08

Market price of the share 409.23 631.78 1312.78 2258.95 2113.63

Earnings per share 26.89 38.95 68.60 98.66 58.41

Price Earning ratio 15.22 16.22 19.14 22.89 36.19

2003-04 2004-05 2005-06 2006-07 2007-08

2003-04 2004-05 2005-06 2006-07 2007-08

658.15 953.40 1679.17 2414.70 2859.34

5295.54 6026.89 7301.38 8788.26 10774.21

0.124 0.158 0.229 0.275 0.266

2003-04 2004-05 2005-06 2006-07 2007-08

409.23 631.78 1312.78 2258.95 2113.63

216.37 246.24 298.31 359.06 220.10

1.89 2.57 4.40 6.29 9.60

2004-05 2005-06 2006-07 2007-08

1172.27 1925.1 2659.31 3118.23

24.48 24.48 24.48 48.95

47.89 78.65 108.65 63.69

2004-05 2005-06 2006-07 2007-08

162.85 148.95 21.84 201.53

246.24 298.31 359.06 220.10

0.66 7.17 0.13 1.39

2004-05 2005-06 2006-07 2007-08

435.87 437.35 461.29 492.91

41.88 42.08 64.21 58.39

10.41 10.39 7.18 8.44

2003-04 2004-05 2005-06 2006-07 2007-08

2003-04 2004-05 2005-06

1.3415 0.2676 0.5885