A STUDY ON IMPACT OF EARNINGS PER SHARE AND DIVIDEND PER SHARE ON BEHAVIOUR OF MARKET PRICE MOVEMENTS OF SELECTED SHARES

PROJECT REPORT Submitted by

T.SRIDHAR Register No: 098001903042

in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
IN FACULTY OF MANAGEMENT ERODE BULIDER EDUCATIONAL TRUST’S GROUP OF INSTITUTIONS KANGAYAM-638108 JUNE 2011
1

ERODE BULIDER EDUCATIONAL TRUST’S GROUP OF INSTITUTIONS
FACULTY OF MANAGENMENT PROJECT REPORT JUNE 2011
This is to certify that the Project Report entitled

A STUDY ON IMPACT OF EARNINGS PER SHARE AND DIVIDEND PER SHARE ON BEHAVIOUR OF MARKET PRICE MOVEMENTS OF SELECTED SHARES
is the bonafide record of project work done by

T.SRIDHAR Register No: 098001903042 of --------------------------Faculty Guide MBA during the year 2010-2011. -----------------Dean

Submitted for the Project Viva-voce examination held on __________ -------------------------Internal Examiner Examiner
2

-------------------External

DECLARATION I affirm that the project research work titled A STUDY ON IMPACT OF
EARNINGS PER SHARE AND DIVIDEND PER SHARE ON BEHAVIOUR OF MARKET PRICE MOVEMENTS OF SELECTED SHARES being submitted in

partial fulfillment for the award of Master of Business Administration is the original work carried out by me. It has not formed the part of any other project submitted for award of any degree or diploma, either in this or any other University.

Signature of the candidate Name: T.SRIDHAR Register No: 098001903042

I certify that the declaration made above by the candidate is true

Signature of the Guide
K.MUTHUKUMAR,

Assistant Professor, Faculty of Management

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for their encouragement during my study I also express my gratitude to the respondents. Head of Department of FOM. Ph.. M.E (Mech).. I express my gratitude to my faculty guide Mr. Erode Builders Educational Trust’s Group of Institutions.D (F.I.. Erode Builders Educational Trust’s Group of Institutions. Erode Builders Educational Trust’s Group of Institutions. I thank PROF.R.... parents and dear friends without whom the project would not have been successful. M.E). 4 .A. valuable suggestions. for granting me permission to do the project work in their esteemed concern..P... MBA. I am extremely thankful to Dr.S.ACKNOWLEDGEMENT I extend my hearty thanks to Mr. M. K.E (Agri). Nathakadaiyur and all staff members of FOM.V. I thank our dean Dr.. PGDCA. FDPM(IIM-A). for his scholarly guidance. J. Ph.D.P. Channel Partner ANGEL STOCK BROKING LIMITED..Phil. I express my sincere gratitude to our honorable Chairman Mr. and encouragement through out the duration of this project.Phil.T. MBA(BIM-Trichy).PERIASAMY and other college trust members for allowing me to develop the project in their institution. Nathakadaiyur for allowing me to have the extensive use of the college facilities to the project.. Director. MUTHUKUMAR BBM.SARAVANAN B.SUNDARAM. MBA.S.NARAYANAN B. KUMAR B.G.Sc. Nathakadaiyur for giving me the opportunity to feel the corporate experience through this project.

3 Data Source 3.4 Limitations of the Study 2.2 Energy Sector 5.4 Metal Sector 5.1 Financial Sector 5.5 Literature review RESEARCH METHODOLOGY 3.1 Objectives of the study 2. PARTICULARS LIST OF TABLES LIST OF CHARTS LIST OF ABBREVIATION 1 INTRODUCTION AND DESIGN OF STUDY 1.2 Need for the study 2.1 Introduction 3.3 IT Sector 5.TABLE OF CONTENTS CHAPTER NO.5 Automobile Sector 6 7 8 SUGGESTION CONCLUSION REFERENCES PAGE NO.3 Compound Annual Growth Rate FINDINGS AND CONCLUSION 5.2 Co-efficient of Correlation 4.1 Industry Profile 1.2 Company Profile OBJECTIVES OF THE STUDY 2.3 Scope of the study 2.4 Statistical Tools ANALYSIS AND INTERPRETATION 4. 6 7 8 9 13 15 16 17 18 19 23 23 25 25 26 26 43 74 75 76 77 78 79 80 81 2 3 4 5 5 .2 Research Design 3.1 Correlation 4.

9 4.11 4.4 4.LIST OF TABLES TABLE NO.15 TABLE HEADINGS Co-efficient of Financial Sector Co-efficient of Energy Sector Co-efficient of IT Sector Co-efficient of Metal Sector Co-efficient of Automobile Sector Compound Annual growth rate of Financial Sector Compound Annual growth rate of Energy Sector Compound Annual growth rate of IT Sector Compound Annual growth rate of Metal Sector Compound Annual growth rate of Automobile Sector Compound Annual growth rate of Price in Financial Sector Compound Annual growth rate of Price in Energy Sector Compound Annual growth rate of Price in IT Sector Compound Annual growth rate of Price in Metal Sector Compound Annual growth rate of Price in Automobile Sector PAGE NO.3 4.13 4.14 4.12 4. 4.6 4. 28 31 34 37 40 44 47 50 53 56 59 62 65 68 71 6 .2 4.7 4.8 4.5 4.10 4.1 4.

46 49 52 55 58 61 64 67 70 73 7 . 1 2 3 4 5 6 7 8 9 10 CHART HEADINGS Compound Annual growth rate of Financial Sector Compound Annual growth rate of Energy Sector Compound Annual growth rate of IT Sector Compound Annual growth rate of Metal Sector Compound Annual growth rate of Automobile Sector Compound Annual growth rate of Price in Financial Sector Compound Annual growth rate of Price in Energy Sector Compound Annual growth rate of Price in IT Sector Compound Annual growth rate of Price in Metal Sector Compound Annual growth rate of Price in Automobile Sector PAGE NO.LIST OF CHARTS TABLE NO.

1 INDUSTRY PROFILE In the wake of the introduction of new economic policy in the middle of the year 1991.LIST OF ABBREVIATION EPS DPS P/E NSE HDFC SBI ICICI ONGC TCS EARNING PER SHARE DIVIDEND PER SHARE PRICE EARNING RATIO NATIONAL STOCK EXCHAGE HOUSING DEVELOPMENT CORPORATION STATE BANK OF INDIA INDUSTRIAL CREDIT AND FINANCIAL AND INVESTMENT CORPORATION OF INDIA OIL & NATURAL GAS CORPORATION TATA CONSULTANCY SERVICES CHAPTER I INTRODUCTION AND DESIGN OF STUDY 1. the Indian Capital Market has witnessed a tremendous growth. There was an 8 .

Among the developing countries India has received considerable capital inflows in recent years. The number of shareholders has increased from a low figure of about two millions towards the end of seventies to the level of more than 25 millions. it is attempted to test the equity price movements taking pharmaceuticals. 1.explosion of investor interest during the nineties and an equity cult emerged in the country. investments in developing countries have increased remarkably. Generally. An important recent development has been the entry of Foreign Institutional Investors as participants in the primary and secondary markets for industrial securities. In the present project.1. the security prices reflect the performance of a company. Funds may be raised through securities market for financing corporate growth. The Economy of the country is mainly based on the development of the corporate sectors. Indian financial institutions also play a major role in equity market leading to stock return fluctuations. To experience sustained growth statutory legislations have helped the capital market. Again a major factor responsible for stock return fluctuations is speculative purchase and sale by foreign institutional investors. Many theories have come up which have empirically verified the investors’ behavior at the international as well as at the Indian context. oil and sugar industries as sample sectors. In the past several years. Foreign Exchange Regulation Act is one such legislation in this direction. Both economic and non-economic factors invariably affect stock return behavior. As Cootner (1964) says that “the prices of securities are typically very sensitive. The liberalization policy of the Government of India has now started yielding results and the country is poised for a big leap in the industrial and economic growth. both real and imagined”.1 Stock Exchange 9 . Government of India has initiated several steps to strengthen the capital market and regulate its activities. responsive to all events.

Of all the modern service institutions. This stock exchange is one of the most important institutions in the capital market. Such huge requirements of capital can be met only large number of individuals. This liquidity can be achieved through shares and debentures representing smallest units of ownership and lending represented by the public.2 Bombay Stock Exchange The origin of the Bombay stock exchange date back to 1875. These investors could be expected to participate actively only if investment is liquid or they could sell a part of their stake whenever they wish to generate cash. It was recognized on a permanent basis in 1957.The stock exchange or secondary market is a highly organized market for the purchase and sale of second hand quoted of listed securities. it was no longer possible for individual person or even partnerships to raise such huge amount for undertaking these ventures. regulating and controlling business in buying. selling and dealing in securities”. The securities contracts (Regulation) Act 1956 defines a stock exchange as “an association. established for the purpose of assisting. This premier stock exchange is the oldest stock exchange in Asia. organization or not. The institution where these securities are traded is known as stock exchange. as the size of the business enterprises grew.1. stock exchange plays a crucial agents and facilitators of entrepreneurial progress. It was organized under the name of “the native stock and shares brokers association” as a voluntary and nonprofit making association. 1. After the industrial resolution. The objectives of the stock exchanges are: 10 .

NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. • The physical floor was replaced by anonymous. exchange. Based on the recommendations. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June2000. 2.matching with 11 . NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.1. Trading on NSE is characterized by four key innovations. develop.1. 1. To promote. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act. and maintain well regulated market for dealing in To promote industrial development in the country through efficient resource mobilization by the way of investment in corporate securities. 3. computerized order. securities. 1956 in April 1993.3 National Stock Exchange The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. To safeguard the interest of the investing public having dealings on the To establish and promote honorable and just practices in securities transaction. 4.

Now NSE has a network of over 2000 satellite terminals all over the country. On a typical day almost over 3500 traders login to the trading computer over this network. having membership of BSE. 12 . Therefore NSEs staff is free of pressures from brokers and is able to perform its regulatory and enforcement functions more effectively.e. Traditional practices of unreliable fortnightly settlement cycle with escape clause of badla were replaced by a strict weekly settlement cycle without badla. • The limitations of being on Mumbai and the limitations of India’s Public telecom network were avoided by using satellite communications. It is a limited liability company and brokers or franchisees. Dinesh Thakkar.9 thousand retail clients. 124 branches and 6810 sub brokers & business associates. The group currently services more than 5.2 COMPANY PROFILE Angel Group has emerged as one of the top five retail stock broking houses in India.strict prime-time priority. 1. This is larger than the capacity of the largest trading floors in the world. The group is promoted by Mr. Today the angel group is managed by a team of 1937 direct employees and has a nationwide network comprising of 21 Regional hubs. Angel is 100% focused on retail stock broking business unlike any other larger national broking house. Angel Broking is also registered as a Depository Participant with CDSL. NSE and the two leading Commodity Exchanges in the country i. NCDEX & MCX. who started this business as a subbroker in 1987 with a team of 3. • NSE is not owned by brokers.

which gives the client a platform to access state of the art trading facility at the click of a button.wide network of 21 regional hubs •Presence 124 cities •6800 + sub brokers & business associates •5. About Angel Angel Booking’s try with excellence in customer relations began more than 20 years ago. Angel has emerged as a premium Indian stock-broking and wealth management house. Angel thrives on a vision to introduce new and innovative products and services constantly. Angel’s Presence: •Nation. with an absolute focus on retail business and a commitment to provide "Real Value for Money" to all its clients. Angel has always strived for delivering customer delight and developing strong long term bonds with its clients as well as channel partners.9 lakh + clients Milestones ● ● ● Awarded with 'Broking House with Largest Distribution Network' and 'Best Retail Broking House' at Dun & Bred street Equity Broking Awards 2009 August. Angel has been among the pioneers to introduce the latest technological innovations and integrate them efficiently in its business. 2008 Crossed 500000 trading accounts 13 . NSE and the leading commodity exchanges in India NCDEX & MCX. Their e-broking facility is one such effort.Angel habitually generates value added features without the cost burden being passed onto the clients as they strongly believe that better understanding of client’s needs and wants is their top priority. Angel is also registered as a depository participant with CDSL. Today. It has memberships on BSE. Angel Group has emerged as one of the top 3 retail broking houses in India and incorporated in 1987. Moreover.

2003 First published research report November.2006 Launched Mutual Fund and IPO business July. Incorporated 14 .2006 Launched the PMS function October. Incorporated December.2002 Angel’s first investor seminar March.2005 ‘Major Volume Driver’ award for 2005 September.2006 ‘Major Volume Driver’ award for 2006 September.● ● ● ● ● ● ● ● ● ● ● ● ● November.2004 Launched Online Trading Platform April.1998 Angel Capital and Debt Market Ltd.1997 Angel Broking Ltd.2007 ‘Major Volume Driver’ for 2007 December.2006 Created 2500 business associates October.2004 Initiated Commodities Broking division April.2002 Developed web-enabled back office software November.

 To study the impact of the Earnings Per Share on the share price movements of the selected industries. of selected shares 15 . AND LIMITATIONS 2. SCOPE. NEED.  To assess the growth of EPS. More specifically.  To study the impact of the Dividend Per Share on the share price movements of the selected industries.1 OBJECTIVES OF THE STUDY The main objective of the study is to determine the share price movement of the selected industries in India.  To study the impact of the Price Earnings Ratio on the share price movements of the selected industries.CHAPTER-2 OBJECTIVES. the objectives of the study are as follows. DPS.

Dividend Per Share. And whether Dividend Per Share impact is major factor or whether Price Earning Ratio is having an impact in prices changes of the stock market. and Price Earning Ratio in various share price movements of various companies of various sectors of National Stock Market.2 NEED FOR THE STUDY The study analyses the impact of Earnings per Share. which is also funneled down to the NIFTY stocks. 16 .2. There is a need to analyze whether the Earnings per Share issued by the companies is playing a major role in the price movements of the stocks. There is always an expectation of the stock holders to get an optimum return for the risk being beared by the investors in investing in such stocks .The returns are expected in the form of appreciation of the share values and in the form of dividends declared by the companies.

Price Earnings Ratio. Price Earning Ratio impact on the price changes during that period. The research reveals a general study related to the investment patterns of investors relate to the price changes due to Earnings per Share.3 SCOPE OF THE STUDY The purpose of the study is to find out whether the companies share prices movements depends on the companies profit and their dividend issues. Data are collected from the web sites helped to find out the impact and the causes of price changes.2. Dividend Per Share. Dividend Per Share. 17 . The research reveal the results regarding the various Earnings Per Share .

18 .2.4 LIMITATIONS OF THE STUDY The following are the limitations of this study.  Though there are many industries listed in the National Stock Exchange only 5 sectors and 25 companies have been selected for the analysis due to lack of time.  An in-depth analysis on the cause of changes in industry’s performance is not being made.  The analysis results can be used for predicting the future results only to some extent.

Dividend Policy The term dividend refers to that part of profit of a company. It’s often expressed as a percentage. The following are the important factors. It is the reward for the shareholders for investments made by them in the shares of company. or the Dividend Per Share dividend by the price per share. It is the reward for the share holders for investment made by them in the shares of company. The investors are interested in earning the maximum return on their investment and maximize their wealth. which is distributed by the company among its share holders.2. It is difficult to determine a general dividend policy which can be followed by different firms at different times because the dividend decision has to be taken considering special circumstances of an individual case.5 LITERATURE REVIEW DIVIDEND – AN OVERVIEW Dividend The term dividend refers to that part of profit of a company that is distributed by the company among its share holders. Dividend Yield The dividend yield on a company stock is the company’s annual dividend payments dividend by its market cap. Determinant of dividend policy The payment of dividend involves legal as well as financial considerations. which determine the dividend policy of a firm 19 .

such as dividend and earnings changes and those prices do not respond to non-economic events. SAMUELSON .FAMA efficient market hypothesis that stock prices fully reflect available information and are therefore the best estimate of the intrinsic values the majority of the empirical studies report results that are consistent with stock market rationally There is for example considerable evidence that. MERTON perhaps as for as long as there has been a stock market Economists have debated whether or not stock prices rationally reflect the intrinsic or fundamental values of the underlying companies. 20 .MARSH AND ROBERT C. on average. Stock price are however. individual stock prices respond rationally to surprise announcements concerning firm fundamentals. Legal restrictions  Magnitude and trend of earnings  Desire and type of share holders  Nature of industries  Age of the company  Future financial requirements  Governments economic policy  Taxation policy  Inflation  Requirements of institutional investors DIVIDEND VARIABLITY AND VARIOUS BOUNDS TESTS FOR THE RATIONALITY OF STOCK MARKET PRICES TERRY A. also known to be considerably more volatile than either dividends or accounting earnings.

A wealth transfer effect is not necessarily ruled out. if capital markets are perfect the dividend policy of the firm. but if it exists it is dominated by the signaling effect. there fore. the marginal tax rates cannot be inferred from this phenomenon. it is demonstrated that the primary factor influencing security returns in response to dividend changes is market signaling.dividend day prices drop which is less than the Dividend Per Share and positively correlated with the corresponding dividend yield. they are also consistent with the wealth transfer hypothesis. the correlation between the ex dividend relatively price drop and the dividend yield is still positive which is consistent with a tax effect and a tax included clientely effect. not necessarily the result of a tax included clientele effect. Based on the announcements day return of common and preferred stock and bondholders. MILLER AND MODIGLIANI .RANDALLWOOLRIDGE -. without additional information. DIVIDEND CHANGES AND SECUTRITY PRICES J.THE EX DIVIDEND DAY BEHAVIOUR OF STOCK PRICES AVNER KALAY. does not affect its market value. In contrast to prior work. 21 .past studies have documented an ex. and bonds. Two potential effects are identified: a wealth transfers affects and a signaling effect. for a given investments policy.show. Where as these findings have been attributed to the signaling aspect of dividends. preferred stock. Previous studies have that positive (negative) dividend change announcements produce positive (negative) common stock price changes. we show that.This paper analyzes the effect of unexpected dividend changes on the values of common stock. Despite adjustments for potential biases in earlier work however. which is.

Recently the notion that financial asset price are too volatile to accord with efficient market has received some econometric support in paper by Stephen Leroy and Richard porter on the stock market. the payment of cash dividends to equity holders is of no consequence to stockholder wealth or firm value. 22 .MODIGLIANI AND MILLER – have shown that in perfect capital market with no information asymmetry the value of a firm is independent of financing decisions if the production investment decisions are given. SHILLER – It has often been claimed in popular discussion that he stock price indexes seem too volatile. that is that the movements in stock price indexes could not realistically be attributed to any objectives new information’s. DO STOCK PRICES MOVE TOO MUCH TO BE JUSTIFIED BY SUBSEQUENT CHANGES IN DIVIDENDS ROBERT J. Thus. since movements in the price indexes seem to be too big relative to actual subsequent events.

and Data collection method and analysis procedure. Exploratory research is quite informal. The research used here for the study is exploratory research.2 RESEARCH DESIGN A research design is the arrangement of condition for collection and analysis of data in a manner. It stands for advance planning for collection of the relevant data and the techniques to be used in analysis. which may result in an economy in procedure. which are actively and highly traded industries in the past five years.1 INTRODUCTION Research methodology is a way to systematically solve the research problems. It includes the overall research design. The shares are chosen from the NSE India site.The result are usually used for making decision by themselves. it relays on the secondary data . keeping in view the objectives of the research and availability of time. the sampling procedure. Of Sectors No. Of Companies 5 years 5 sectors 25 companies 23 . 3.CHAPTER-3 RESEARCH METHODOLOGY 3. No. Of Years No.

Five years financial data collected from the five sectors and each sector consist of five companies constitute the sample size. Year taken for study Sectors for study FINANCIAL SECTOR  ICICI : 2006-2010 :  HOUSING DEVELOPMENT FINANCIAL CORPORATION  HDFC BANK  STATE BANK OF INDIA  AXIS BANK ENERGY SECTOR  RELIANCES INDUSTRIES  OIL & NATURAL GAS CORPORATION  NTPC  TATA POWER  GAIL INDIA IT SECTOR  INFOSYS TECHNOLOGIES\  TCS  WIPRO LTD  HCL TECHOLOGIES LTD  TECH MAHINDRA METAL SECTOR  TATA STEEL  HINDALCO INDUSRTIES LTD  STERLITE INDUSRTIES LTD  JINDAL STEEL & POWER LTD 24 .

5 STATISTICAL TOOLS The data are analyzed through statistical method.  3. 25 .1 Secondary Data Secondary data are also collected through the NSE India sites and websites of various companies  Review of the articles being published on the topic in various magazines  The information in the NSE India has helped to analyze the price changes. 3.4. SESA GOA LTD AUTOMOBILE SECTOR  TATA MOTORS LTD  MAHINDRA & MAHINDRA LTD  BAJAJ AUTO LIMITED  HERO HONDA MOTORS LTD  MARUTHI SUZUKI INDIA LTD 3.  Primary data  Secondary data The source taken for study is. There are various statistical tools to analysis the data.3 DATA SOURCE While deciding about the method of data collection for the study the researcher should keep in mind the two sources of data.

Correlation Co-efficient of Correlation Compound Annual Growth Rate

CHAPTER – 4 DATA ANALYSIS AND INTERPRETATION

4.1

CORRELATION Correlation analysis helps to determine the strength of the linear relationship

between the two variables X and Y, in other words, as to how strongly are these two variables correlated. Karl Pearson, in 1896, developed an Index or Coefficient of this association in cases where the relationship is a linear one, i.e. where the trend of the relationship can be described by a straight line. The Pearson’s coefficient of correlation is designated by r. The coefficient of correlation r can be designed as a measure of strength of the linear relationship between the two variables X and Y. The sign of the coefficient can be positive or negative. It is positive when the slope of the line is positive and it is negative when the slope of the line is negative.

4.2 COEFFICIENT OF CORRELATION (r)

The correlation coefficient, denoted by r, is a measure of the strength of the straight-line or linear relationship between two variables. The correlation coefficient takes on values ranging between +1 and -1. The following points are the accepted guidelines for interpreting the correlation coefficient: 26

1. 0 indicates no linear relationship. 2. +1 indicates a perfect positive linear relationship: as one variable increases in its values, the other variable also increases in its values via an exact linear rule. 3. -1 indicates a perfect negative linear relationship: as one variable increases in its values, the other variable decreases in its values via an exact linear rule. 4. Values between 0 and 0.3 (0 and -0.3) indicate a weak positive (negative) linear relationship via a shaky linear rule. 5. Values between 0.3 and 0.7 (0.3 and -0.7) indicate a moderate positive (negative) linear relationship via a fuzzy-firm linear rule. 6. Values between 0.7 and 1.0 (-0.7 and -1.0) indicate a strong positive (negative) linear relationship via a firm linear rule. 7. The value of r squared is typically taken as “the percent of variation in one variable explained by the other variable,” or “the percent of variation shared between the two variables.” 8. Linearity Assumption. The correlation coefficient requires that the underlying relationship between the two variables under consideration is linear. If the relationship is known to be linear, or the observed pattern between the two variables appears to be linear, then the correlation coefficient provides a reliable measure of the strength of the linear relationship. If the relationship is known to be nonlinear, or the observed pattern appears to be nonlinear, then the correlation coefficient is not useful, or at least questionable.

r =

n( ∑ XY) − ( ∑ X) ( ∑ Y ) n ∑ X 2 − ( ∑ X) 2 n ∑ Y 2 − (∑ Y )2

27

TABLE - 4.1 FINANCIAL SECTOR S.No 1 2 3 4 5 Name of the company ICICI HDFC LTD HDFC BANK SBI AXIS BANK Price/EPS R r2 0.844 -0.550 0.971 0.723 0.770 0.712 0.302 0.944 0.523 0.593 Price/DPS r r2 0.495 -0.640 0.919 0.737 0.763 0.245 0.410 0.844 0.543 0.583 Price/PE R r2 0.912 -0.917 -0.271 0.382 -0.001 0.832 0.841 0.073 0.146 3.45E

From the above table it is found that: ICICI is having high positive correlation with Price Earnings Ratio. The calculated r (0.912) value shows that the Price Earnings Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.832, which indicates 83.2% of the variations of share price movements are due to Price Earnings Ratio. Next to the price earnings ratio, Earnings Per Share is having high positive correlation with share price movements. Here the calculated value of r is (0.844). The coefficient of determination r2 value is 0.712, which indicates 71.2% of the share price movements are due to the Earnings Per Share. The Dividend Per Share are having low degree of positive correlation and only 24.5% of the share price movements are due to the Dividend Per Share. HDFC LTD is having high negative correlation with Earnings Per Share. The calculated r (-0.550) value shows that the Earnings Per Share is negative correlated and 28

here the calculated coefficient of determination r2 is 0. The Price Earning Ratio is having low degree of negative correlation and only 7.4% of the variations of share price movements are due to Earnings Per Share. The coefficient of determination r2 value is 0. which indicates 94. The calculated r (0.4% of the share price movements are due to the Dividend Per Share. The coefficient of determination r2 value is 0.971) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.919). Dividend Per Share is having high positive correlation with share price movements. SBI is having high positive correlation with Dividend Per Share.3% of the variations of share price movements are due to Dividend Per Share. which indicates 54. 29 . Earnings per Share are having high positive correlation with share price movements. The Price Earning Ratio is having low degree of positive correlation and only 14.2% of the variations of share price movements are due to Earnings Per Share. Dividend Per Share is having high negative correlation with share price movements. The calculated r (0. Here the calculated value of r is (-0.640). The coefficient of determination r2 value is 0. Here the calculated value of r is (0. which indicates 52.410. Next to the Earnings per Share. HDFC BANK is having high positive correlation with Earnings Per Share. which indicates 84. Next to the Earnings Per Share.6% of the share price movements are due to the Price Earning Ratio.302. Here the calculated value of r is (0.523.3% of the share price movements are due to the Price Earning Ratio. which indicates 41% of the share price movements are due to the Dividend Per Share. Next to the Dividend Per Share.3% of the share price movements are due to the Earnings per Share. which indicates 30.1% of the share price movements are due to the Price Earning Ratio.723).944. The Price Earning Ratio is having low degree of positive correlation and only 84.737) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.844.543.

The coefficient of determination r2 value is 0. Next to the Earnings Per Share.3% of the share price movements are due to the Dividend Per Share. which indicates 59.77) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0. Dividend Per Share is having high positive correlation with share price movements.593. which indicates 58.45% of the share price movements are due to the Price Earning Ratio. The calculated r (0.3% of the variations of share price movements are due to Earnings Per Share.763).Axis bank is having high positive correlation with Earnings Per Share.865. Here the calculated value of r is (0. The Price Earning Ratio is having low degree of negative correlation and only 3. 30 .

679 0.717 0.847 0. Dividend Per Share is having high positive correlation with share price movements.TABLE .431 0.964 0.634 -0.783 0. Here the calculated value of r is (0.2% of the share price movements are due to the price earnings ratio.110 Price/DPS r r2 0.711 0.824).333 0.9% of the share price movements are due to the earning.711) value shows that the Earnings per Share is positive correlated and here the 31 .798.006 Price/PE r r2 0.185 0.366 0.055 0.4. The price earnings ratio are having low degree of positive correlation and only 40.726 0. Next to the Earnings Per Share.824 0.024 0. The coefficient of determination r2 value is 0.235 0.998 0.528 0.613 From the above table it is found that: RELIANCES INDUSTRIES is having high positive correlation with Earnings Per Share.930 0.8% of the variations of share price movements are due to Earnings Per Share. which indicates 67.893) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.679. which indicates 79.402 0. ONGC is having high positive correlation with Earnings per Share.798 0.No 1 2 3 4 5 Name of the company RELIANCES INDUSTRIES ONGC NTPC TATA POWER GAIL(INDIA) Price/EPS R r2 0.506 0. The calculated r (0.893 0.2 ENERGY SECTOR S.705 0.996 0.498 0.134 0. The calculated r (0.

The calculated r (0. Next to the price earnings ratio.431).4% of the share price movements are due to the Dividend Per Share. The Dividend Per Share are having low degree of positive correlation and only 52. Next to the Earnings per Share. which indicates 49. which indicates 93% of the variations of share price movements are due to Price Earning Ratio.5% of the share price movements are due to the Earnings per Share. which indicates 50. The calculated r (0. which indicates 52. which indicates 99. Next to the Price Earnings Ratio. The coefficient of determination r2 value is 0.528.996. Here the calculated value of r is (0. TATA POWER is having high positive correlation with Price Earnings Ratio.8% of the share price movements are due to the Dividend Per Share.705).8% of the share price movements are due to the Dividend Per Share.5% of the share price movements are due to the Price Earning Ratio.93.185. The coefficient of determination r2value is 0. which indicates 18.8% of the share price movements are due to the Earnings Per Share.726).calculated coefficient of determination r2 is 0.498. Dividend Per Share is having high positive correlation with share price movements. NTPC is having high positive correlation with price earnings ratio.6% of the variations of share price movements are due to Earnings Per Share. 32 .964) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0. Here the calculated value of r is (0. Here the calculated value of r is (0.6% of the variations of share price movements are due to price earnings ratio.506. The coefficient of determination r2 value is 0. The Price Earning Ratio is having low degree of positive correlation and only 5. Earnings Per Share is having high positive correlation with share price movements. The Dividend Per Share is having low degree of positive correlation and only 13.998) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0. Earnings per Share are having high positive correlation with share price movements.

06% of the share price movements are due to the Dividend Per Share. which indicates 61.333).613. Next to the Price Earnings Ratio. Here the calculated value of r is (0.GAIL (India) is having high positive correlation with Price Earnings Ratio.3% of the variations of share price movements are due to Price Earning Ratio. The coefficient of determination r2value is 0.783) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0. 33 . which indicates 11% of the share price movements are due to the Earnings Per Share.11. Earnings Per Share is having high positive correlation with share price movements. The Dividend Per Share are having low degree of positive correlation and only 0. The calculated r (0.

004 0.621 Price/DPS R r2 0.3 IT SECTOR S.426.166 0. The Dividend Per Share are having very low degree of positive correlation and only 15. which indicates 42. which indicates 32% of the share price movements are due to the Earnings Per Share. Here the calculated value of r is (0.643 0.220 -0.436 0. which indicates 41.788 0. The calculated r (0.785 From the above table it is found that: INFOSYS is having high positive correlation with price earnings ratio.TABLE . TCS is having high positive correlation with Price Earnings Ratio.870 -0.911 0.007 Price/PE r r2 0. Earnings Per Share is having high positive correlation with share price movements.6% of the variations of share price movements are due to Price Earning Ratio.027 0.190 0.3% of the share price movements are due to the Dividend Per Share.886 0.048 0.153 0. 34 .068 0. The calculated r (0.653 0.407 0.426 0.566 0.3% of the variations of share price movements are due to price earnings ratio.305 0.32.No 1 2 3 4 5 Name of the company INFOSYS TCS WIPRO HCL TECH MAHINDRA Price/EPS R r2 0.758 0.643) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is0.391 -0.653) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.320 0. Next to the price earnings ratio.4.413 0.830 0. Next to the Price Earnings Ratio. The coefficient of determination r2 value is 0.413.040 0.200 0.552 0.566).

911) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0. Here the calculated value of r is (0. which indicates 19% of the variations of share price movements are due to Earnings Per Share. 35 . WIPRO is having high positive correlation with Earnings Per Share.87).004. Next to the price earnings ratio Earnings per Share is having high positive correlation with share price movements. The coefficient of determination r2value is 0. which indicates 16. The calculated r (0.407).83. HCL is having high positive correlation with price earnings ratio. which indicates 0.8% of the share price movements are due to the Earnings per Share. The Dividend Per Share are having low degree of positive correlation and only 4. The Dividend Per Share are having low degree of positive correlation and only 0.8% of the share price movements are due to the Dividend Per Share. Here the calculated value of r is (0. price earnings ratio is having high positive correlation with share price movements.166. Here the calculated value of r is (0.5% of the share price movements are due to the Dividend Per Share. which indicates 75.19.Earnings Per Share is having high positive correlation with share price movements. The coefficient of determination r2value is 0.436) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.758.04% of the share price movements are due to the price earnings ratio. The Dividend Per Share are having low degree of positive correlation and only 30.04% of the share price movements are due to the Dividend Per Share. which indicates 83% of the variations of share price movements are due to price earnings ratio. The coefficient of determination r2 value is 0. Next to the Earnings Per Share. The calculated r (0.6% of the share price movements are due to the Earnings Per Share.068).

The coefficient of determination r2 value is 0.785.1% of the share price movements are due to the Earnings per Share. Dividend Per Share is having high positive correlation with share price movements.4. The Earnings per Share are having very low degree of negative correlation and only 62.07% of the share price movements are due to the Dividend Per Share. which indicates 0. Next to the price earnings ratio.4 METAL SECTOR 36 .027).TECH MAHINDRA is having high positive correlation with price earnings ratio. The calculated r (0.886) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is0.5% of the variations of share price movements are due to price earnings ratio. which indicates 78. Here the calculated value of r is (0.007. TABLE .

Next to the Price Earnings Ratio.769 0.871 0.120 0.760 0.449). The coefficient of determination r2value is 0. The calculated r (0.578 0.006 From the above table it is found that: TATA STEEL is having high positive correlation with Price Earning Ratio.950 0.012 0. The Dividend Per Share are having low degree of positive correlation and only 11.336 0.092 0.202 0.304 0.113 0.502 -0.569 0. Here the calculated value of r is (0.877) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0. which indicates 76.005 0.147 0.769.252. price earnings ratio is having high positive correlation with share price movements.073 0.089 0.299 0.252 0.858 0.S.877 0. The coefficient of determination 37 .349 0. The calculated r (0.974 0.9% of the variations of share price movements are due to Price Earning Ratio.502) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.754 0.No 1 2 3 4 5 Name of the company TATA STEEL HINDALCO STERLITE JINDAL SESA GOA LTD Price/EPS r r2 0.2% of the variations of share price movements are due to Dividend Per Share.383 0.3% of the share price movements are due to the Dividend Per Share. Next to the Dividend Per Share.349). Here the calculated value of r is (0.12.449 -0. which indicates 25. HINDALCO is having high positive correlation with Dividend Per Share.760 Price/Dps R r2 0.736 Price/PE R r2 0. Earnings Per Share is having high positive correlation with share price movements. which indicates 12% of the share price movements are due to the Earnings Per Share.

383). The calculated r (0.754) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.9% of the share price movements are due to the Dividend Per Share. Here the calculated value of r is (0.147. The price earnings ratio are having low degree of negative correlation and only 9.7% of the share price movements are due to the Earnings Per Share.569. Next to the Earnings Per Share. JINDAL is having high positive correlation with Price Earnings Ratio. which indicates 14.2% of the share price movements are due to the price earnings ratio.9% of the variations of share price movements are due to Price Earning Ratio.578. STERLITE is having high positive correlation with Earnings Per Share. which indicates 57.76).r2value is 0. The calculated r (0. which indicates 56.95. The coefficient of determination r2value is 0. The coefficient of determination r2value is 0. The Earnings Per share are having low degree of positive correlation and only 0. which indicates 20. Here the calculated value of r is (-0.05% of the share price movements are due to the Earnings Per share. which indicates 95% of the variations of share price movements are due to Earnings Per Share.8% of the share price movements are due to the Dividend Per Share. Earnings Per Share is having high positive correlation with share price movements.974) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0. The calculated r (0.871) value shows that the Earnings Per Share is positive correlated and here 38 . Dividend Per Share is having high negative correlation with share price movements.2% of the share price movements are due to the price earnings ratio.202. The Dividend Per Share are having low degree of positive correlation and only 8. Next to the Price Earnings Ratio. SESA GOA LTD is having high positive correlation with Earnings Per Share.

76.736.6% of the share price movements are due to the Price-Earning Ratio. which indicates 73. Next to the Earnings Per Share. which indicates 76% of the variations of share price movements are due to Earnings Per Share.No Name of the company Price/EPS R r2 39 Price/DPS R r2 Price/PE R r2 .the calculated coefficient of determination r2 is0. The coefficient of determination r2 value is 0.858).5 AUTOMOBILE SECTOR S. TABLE . The Price-Earning Ratio is having very low degree of positive correlation and only 0. Dividend Per Share is having high positive correlation with share price movements.6% of the share price movements are due to the Dividend Per Share.4. Here the calculated value of r is (0.

262 0.968 0. The Earnings Per share are having low degree of positive correlation and only 1.557 0. The calculated r (0.837 0.242.123 -0.5% of the share price movements are due to the Earnings Per share.129 0.016 0.1% of the variations of share price movements are due to Price Earning Ratio.590 0.701 0. The coefficient of 40 .745 0. which indicates 5.492 -0.068 0. Mahindra & Mahindra is having high positive correlation with Price Earnings Ratio.315 0.938 0.1 2 3 TATA MOTORS MAHINDRA & MAHINDRA BAJAJ AUTO LTD HERO HONDA MOTORS MARTUTI SUZUKI 0.561). Next to the Price Earning Ratio.662 0. Next to the Dividend Per Share. which indicates 70.796 0.892 0.439 0. price earnings ratio is having high positive correlation with share price movements. The coefficient of determination r2value is 0.456 0.242 0. Earnings Per share is having high negative correlation with share price movements.059.921 0. The calculated r (0.275 0.243 0.208 0.701. Here the calculated value of r is (0.059 0.837) value shows that the Price Earning Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.075 4 5 0. which indicates 24.561 0.015 0.492) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.348 From the above table it is found that: TATA MOTORS is having high correlation with Dividend Per Share.9% of the share price movements are due to the price earnings ratio.2% of the variations of share price movements are due to Dividend Per Share.849 0. Here the calculated value of r is (-0.243).

which indicates 93. Next to the Dividend Per Share. BAJAJ AUTO is having high positive correlation with Dividend Per Share.796. The Price Earning Ratio is having low degree of positive correlation and only 7. Here the calculated value of r is (0.8% of the share price movements are due to the Price Earning Ratio. The coefficient of determination r2 value is 0. which indicates 84. Dividend Per Share is having high positive correlation with share price movements.745).315.849.determination r2value is 0. 41 .892) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.9% of the share price movements are due to the Dividend Per Share.8% of the variations of share price movements are due to Dividend Per Share. which indicates 31.968) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0. The calculated r (0.9% of the share price movements are due to the Earnings per Share.5% of the share price movements are due to the Earnings Per share.938. HERO HONDA MOTORS is having high positive correlation with Earnings Per Share.6% of the variations of share price movements are due to Earnings Per Share. The calculated r (0.7% of the share price movements are due to the Dividend Per Share. Earnings per Share is having high positive correlation with share price movements.921). The Dividend Per Share are having low degree of negative correlation and only 43. which indicates 79.5% of the share price movements are due to the Price Earning Ratio. The coefficient of determination r2 value is 0.557. Next to the Dividend Per Share. which indicates 55. The Price Earning Ratio is having low degree of positive correlation and only 20. Here the calculated value of r is (0.

8% of the variations of share price movements are due to price earnings ratio. Earnings Per Share is having high positive correlation with share price movements. The calculated r (0. Here the calculated value of r is (0.016.8% of the share price movements are due to the Earnings Per Share. 4. which indicates 34. The coefficient of determination r2 value is 0.59) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is0.129).MARTUTI SUZUKI is having high correlation with price earnings ratio. which indicates 1. Next to the price earnings ratio. The Earnings Per Share is having very low degree of positive correlation and only 6.6% of the share price movements are due to the Earnings Per Share.3 COMPOUND ANNUAL GROWTH RATE 42 .348.

costs. of different business measures such as sales. market share. and performance. As every forecasting method. this method has a calculation error associated.4. TABLE . over a series of years. This can be written as follows: Applications These are some of the common CAGR applications: • • • • Calculating and communicating the average returns of investment funds Demonstrating and comparing the performance of investment advisors Comparing the historical returns of stocks with bonds or with a savings account Forecasting future values based on the CAGR of a data series (you find future values by multiplying the last datum of the series by (1 + CAGR) as many times as years required). where n is the number of years in the period being considered. • Analyzing and communicating the behavior.6 43 .The year-over-year growth rate of an investment over a specified period of time and compound annual growth rate is calculated by taking the nth root of the total percentage growth rate. customer satisfaction.

is 11.4% HDFC BANK: Over the course of 5 periods Earnings Per Share increased from 27. and its compound annual growth rate or its overall return.4 8.57 10 62.45.8% and Dividend Per Share increased from 8.14% HDFC LTD Over the course of 5 periods Earnings Per Share increased from 50.87 7 44.8% SBI EPS DPS 83. 36. and its compound annual growth rate or its overall return.45 36 14. is 16.37 30 11.5 23.5% 16.07 22 85.4% HDFC BANK EPS DPS 27.14% HDFC LTD EPS DPS 50.77 25 80.55 8.9% 27.5 29. is 18.1 and its compound annual growth rate or its overall return.5 52.3% 12. is 12.9% From the above table it is found that: ICICI: Over the course of 5 periods Earnings Per Share increased from 28.1 12 CAGR 4.8% 7.5 to 12.5 143.2% and Dividend Per Share increased from 5. is 14.81 to 64. and its compound annual growth rate or its overall return. is 4.06 12 28.42 12 18.5 44. and its compound annual growth rate or its overall return.56 21.76 11 2010 36. and its compound annual growth rate or its overall return.55 to.29 14 106.5 to 12.81 5.87 8.51% and Dividend Per 44 . is 7.5 2007 34.73 14 86.38 to 98.24 30 98.67 29 144.94 6 50.FINANCIAL SECTOR ICICI YEAR EPS DPS 2006 28.77 10 64. And Dividend Per Share increased from 20 to 36.37 11 2009 33.38 20 62.2% 16.8% SBI: Over the course of 5 periods Earnings Per Share increased from 83 to 144.41 19.3%.46% AXIS BANK EPS DPS 17. and its compound annual growth rate or its overall return.37.59 10 2008 37.42.

Share increased from 14 to 30, and its compound annual growth rate or its overall return, is 16.46%

AXIS BANK: Over the course of 5 periods Earnings Per Share increased from 17.41 to 62.06, and its compound annual growth rate or its overall return, is 28.94% and Dividend Per Share increased from 3.5 to 12, and its compound annual growth rate or its overall return, is 27.94%

CHART-4.1 45

TABLE - 4.7 ENERGY SECTOR 46

RELIANCES YEAR 2006 2007 2008 2009 2010 CAGR EPS 65.08 85.71 133.86 97.28 49.64 -5.2% DPS 10 11 13 13 7 -6.8%

ONGC EPS 101.2 73.14 78.09 75.4 78.39 -4.9% DPS 45 32 32 32 33 -6%

NTPC EPS 7.06 8.33 8.99 9.95 10.59 8.4% DPS 2.8 3.2 3.5 3.6 3.8 6.2%

TATA POWER EPS DPS 30.85 8.5 35.21 9.5 39.42 10.5 41.65 11.5 39.93 12 5.2% 7.1%

GAIL(INDIA) EPS 27.32 28.22 30.76 22.1 24.75 -1.9% DPS 10 10 10 7 7.5 -5.5%

From the above table it is found that: RELIANCES INDUSTRIES: Over the course of 5 periods Earnings Per Share declined from 65.08 to 49.64, and its compound annual growth rate or its overall return, is -5.2% and Dividend Per Share declined from 10 to 7, and its compound annual growth rate or its overall return, is -6.8% ONGC: Over the course of 5 periods Earnings Per Share declined from 101.2 to 78.39, and its compound annual growth rate or its overall return, is -4.97% and Dividend Per Share declined from 45 to 33, and its compound annual growth rate or its overall return, is -6% NTPC: Over the course of 5 periods Earnings Per Share increased from 7.06 to 10.59, and its compound annual growth rate or its overall return, is 8.4% and Dividend Per Share increased from 2.8 to 3.8, and its compound annual growth rate or its overall return, is 6.2%

TATA POWER: Over the course of 5 periods Earnings Per Share increased from 30.85 to 39.93, and its compound annual growth rate or its overall return, is 5.29% and

47

Dividend Per Share increased from 8. and its compound annual growth rate or its overall return. is -5. is -1.95% and Dividend Per Share declined from 10 to 7.2 48 .14% GAIL (INDIA): Over the course of 5 periods Earnings Per Share declined from 27.5 to 12. is 7.59% CHART-4.5. and its compound annual growth rate or its overall return.75.32 to 24. and its compound annual growth rate or its overall return.

TABLE .4.8 IT SECTOR 49 .

88 15.62 -12% 19.23 78.17 to 33.36 18.8 2. and its compound annual growth rate or its overall return.67% and Dividend Per Share increased from 5 to 6. is 3. is 8. and its compound annual growth rate or its overall return.52 to 28.8% -4.5 -17% 55.5 14 14 20 8.6% DPS 5 6 6 4 6 3.3 33.13.86 66.71% HCL: Over the course of 5 periods Earnings Per Share declined from 19.4%- CAGR 2. is -11% TCS: Over the course of 5 periods Earnings Per Share declined from 55.13 DPS 45 11.1% WIPRO: Over the course of 5 periods Earnings Per Share increased from 14.63% and Dividend 50 .17 19. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.5 to 20.74 to 15.1% WIPRO EPS 14. and its compound annual growth rate or its overall return.36.74 16.15 101.62.7% EPS HCL DPS 16 8 9 7 4 EPS TECH MAHINDRA DPS 8. is 2.5 33.72 14.92 28.52 38.5 11.48 20.73 25.5 4 3.58 5.6% -24% From the above table it is found that: INFOSYS: Over the course of 5 periods Earnings Per Share increased from 87.85% and Dividend Per Share declined from 45 to 25.6 11.07 47.38 26.25 23.96 20.84 81.INFOSYS YEAR 2006 2007 2008 2009 2010 EPS 87. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return. is 18. is -4.05 60.5 25 -11% EPS TCS DPS 13.57.39 46. is -12% and Dividend Per Share increased from 13.58 101.57 19.3 5.86 to 101.

83% CHART.40% and Dividend Per Share declined from 8. and its compound annual growth rate or its overall return.4. is 25. and its compound annual growth rate or its overall return.3 51 . and its compound annual growth rate or its overall return. is -16.12% TECH MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 19.5.Per Share declined from 16 to 4.58 to 60.8 to 3. is -24.73.

9 METAL SECTOR TATA HINDAL STERLITE 52 JINDAL SESA GOA .4.TABLE .

37% and Dividend Per Share declined from 3.5% From the above table it is found that: TATA STEEL: Over the course of 5 periods Earnings Per Share declined from 63.49 - DPS 40 40 45 2.74 15.34 99.30% STERLITE: Over the course of 5 periods Earnings Per Share declined from 45.30% and Dividend Per Share declined from 13 to 8.89.35 - EPS 45.67 25.72 14.07 228.05 24. and its compound annual growth rate or its overall return.75. is -9.2 to 1. and its compound annual growth rate or its overall return.25 39. and its compound annual growth rate or its overall return.5 125 - EPS 137.85% and Dividend Per Share declined from 2.3% 3.2% 6.12 1. and its compound annual growth rate or its overall return.85 13. and its compound annual growth rate or its overall return.STEEL YEAR EPS DPS 2006 63.25 3.89 - DPS 15 18 4 5.37 8 CAGR 2.28 to 10.25% HINDALCO: Over the course of 5 periods Earnings Per Share declined from 14. and its compound annual growth rate or its overall return.2 22.35 to 56. is -2.7 16 2010 56.35.31 1.01 1.85 16 2009 69.3 80.16% 53 . and its compound annual growth rate or its overall return.07 to 15.3% 26.45 9. is -39.8% 39.04 154.43 17.06 379.35 10.68% JINDAL: Over the course of 5 periods Earnings Per Share declined from 186.75 EPS 186.5 3. is -6.86% and Dividend Per Share declined from 15 to 1. is -26.7 23.89 - DPS 3.13 4 4 3.89.1% 28. and its compound annual growth rate or its overall return.8% 9.35 13 2007 72. is -38.01.28 2.12 1.37.5 2008 63. is 3.04 13.6% 38.72 to 9.13 to 3. is -9.25.35 15.3% CO EPS DPS 14.4% 9.

and its compound annual growth rate or its overall return.4 54 . and its compound annual growth rate or its overall return. is -39.4.47% CHART.49.SESA GOA LTD: Over the course of 5 periods Earnings Per Share declined from 137.56% and Dividend Per Share declined from 40 tov3.04 to 25.25. is -28.

TABLE .10 AUTOMOBILE SECTOR TATA MAHINDRA BAJAJ 55 HERO MARTUTI .4.

87 to 117. and its compound annual growth rate or its overall return. is 1.94 49.88 11.72 10 44.69 10 36. is 0.6% SUZUKI EPS 41.1% 40.96 17 48. is 40.87 122. and its compound annual growth rate or its overall return. is 3% MAHINDRA & MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 36.77 110 18. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.5 46.45 16% DPS 3.89 9.5 5 3.19 20 111.94 to 36.09% and Dividend Per Share increased from 13 to 15. is 0. and its compound annual growth rate or its overall return. is 1% BAJAJ AUTO: Over the course of 5 periods Earnings Per Share increased from 108.91 42.07 59.64 20 42. and its compound annual growth rate or its overall return.69.09% and Dividend Per Share declined from 10 to 9.25 45.64 to 111.37 117.5 30.63 19.48 39.5 0.5% and Dividend Per Share remains same from 40 to 40.62% 56 .5 6 11.18 86.35 52. is 18.89.5% DPS 40 22 20 40 40 0% HONDA MOTORS EPS DPS 48.MOTORS YEAR 2006 2007 2008 2009 2010 CAGR EPS 39. and its compound annual growth rate or its overall return.26.3% From the above table it is found that: TATA MOTORS: Over the course of 5 periods your Earnings Per Share declined from 39.77.5 4.26 -0.9% -1% AUTO EPS 108. and its compound annual growth rate or its overall return.48 52. is 0% HERO HONDA MOTORS: Over the course of 5 periods Earnings Per Share increased from 48.16 54.5.34% DPS 13 15 15 6 15 3% & MAHINDRA EPS DPS 36.15 11.72 to 36.10% and Dividend Per Share increased from 20 to 110.69 1.47 19 64.

and its compound annual growth rate or its overall return.MARTUTI SUZUKI: Over the course of 5 periods Earnings Per Share increased from 41. and its compound annual growth rate or its overall return.16 to 86.38% CHART.5 to 6.4.5 57 . is 16% and Dividend Per Share increased from 3.45. is 11.

11 FINANCIAL SECTOR ICICI HDFC LTD HDFC BANK 58 SBI AXIS BANK .TABLE .4.

94 50.9.45 14.4 to 3515.81 44. and its compound annual growth rate or its overall return. is 16.24 98.67 144.55 34.9% PRICE 514.59 37. and share prices declined from 234 to 173.5 25.79% SBI: Over the course of 5 periods Earnings Per Share increased from 83 to 144. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.4 2476 2574 2500 3515 16.77 64.57 62.76 36.4 29.42 18.3% PRICE 234 316.77 80.79% EPS 17.37 33.69% EPS 50. and its compound annual growth rate or its overall return.YEAR 2006 2007 2008 2009 2010 CAGR EPS 28.5% PRICE 1617.69% HDFC LTD: Over the course of 5 periods Earnings Per Share increased from 50. is 6.8 1825 1839 2539.87 52.37 11. and its compound annual growth rate or its overall return.42.33%.81 to 64.2% PRICE 1150 1799.59% From the above table it is found that: ICICI: Over the course of 5 periods Earnings Per Share increased from 28.38 62. and its compound annual growth rate or its overall return.5 1064 1608.95 200.87 44.8 173. is -5.83% HDFC BANK: Over the course of 5 periods Earnings Per Share increased from 27.29 106.41 23. 36.79% EPS 83. and its compound annual growth rate or its overall return.37.55 to.8% and share prices increased from 925 to 1279.56 143.3.79% 59 .6 84.9 16.29% and share prices increased from 1150 to 2539.07 85. is 4. is 11. is 18.5 980 1279 6.51% and share prices increased from 1617.1 and its compound annual growth rate or its overall return.8 1025 1291.06 28.1 4. is 14.8% PRICE 925 1349 1455.73 86. is 16.38 to 98.45.8% EPS 27.3 -5.

94% and share prices increased from 514. and its compound annual growth rate or its overall return.41 to 62.59% CHART-6 60 .06.AXIS BANK: Over the course of 5 periods Earnings Per Share increased from 17.8 to 1608.5. is 28. is 25. and its compound annual growth rate or its overall return.

12 ENERGY SECTOR 61 .TABLE .4.

9 to 1427.66% ONGC: Over the course of 5 periods Earnings Per Share declined from 101. is 8.93.59.42 1649.3 290.9.9 -2.2% PRICE 1315.95 2989 3298 2535 1149. is 5.9% PRICE 325.2% 19.9 8.9 to 238.99 9.63% TATA POWER: Over the course of 5 periods Earnings Per Share increased from 30.14 78.64.4% PRICE 157.64 -5.08 to 49.95 10.65 1490 39.76 22.75 241.35 238.44% and share prices increased from 157. is -2.9 1385.5 1356 1277.95 to 1149.85 to 39.28 49.27% and share prices declined from 1315.9 283.29% and 62 .09 75.06 to 10. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.66% ONGC EPS 101.32 28.6 - NTPC EPS 7.06 8.85 622 35.39 PRICE 1513.65 520.6.9 39.6% GAIL(INDIA) EPS 27. and its compound annual growth rate or its overall return.59 8. and its compound annual growth rate or its overall return.33 8. and its compound annual growth rate or its overall return.55% NTPC: Over the course of 5 periods Earnings Per Share increased from 7. and its compound annual growth rate or its overall return.7 551. is -4.25 9.63% TATA POWER EPS PRICE 30.75 1.4 78.22 30.8 41.7 5.39.1 24. is 8.97% 0.93 1517.5 438.86 97. and its compound annual growth rate or its overall return.6 1472.55% From the above table it is found that: RELIANCES INDUSTRIES: Over the course of 5 periods Earnings Per Share declined from 65. is -5.21 1476.2 73.81% 4.97% and share prices declined from 1513.85 555.RELIANCES YEAR 2006 2007 2008 2009 2010 CAGR EPS 65.9.2 to 78.08 85. is -0.71 133.

7 to 520. is 19. is 9. and its compound annual growth rate or its overall return.75. is -1.60% GAIL (INDIA): Over the course of 5 periods Earnings Per Share declined from 27. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.7.32 to 24.95% and share prices increased from 325.81% CHART-7 63 .share prices increased from 622 to 1517.25.

TABLE .13 IT SECTOR INFOSYS TCS 64 WIPRO HCL TECH .4.

52 2092 14.9% From the above table it is found that: INFOSYS: Over the course of 5 periods Earnings Per Share increased from 87.84 1159. and its compound annual growth rate or its overall return. is 18.3 700 14. is 0.75 60.17 670 19. and its compound annual growth rate or its overall return.57 460.13.4% -7.85 15.38 2048 2008 78.52 to 28.67% and share prices increased from 670 to 755.86 3449 55.92 805 20.72 334.73 1158 CAGR 2.62.74 to 15. and its compound annual growth rate or its overall return.02% TCS: Over the course of 5 periods Earnings Per Share declined from 55. and its compound annual growth rate or its overall return.8% 0.85.45 26.57.6% 2. is -4.48 691 16. is -10.63% and share prices declined from 725 to 460.39 1388.36 755.7 2010 101.62 1180 33.6% 25.36.15 2046.88 388 81.23 2415 38.MAHINDRA YEAR EPS PRICE EPS PRICE EPS PRICE EPS PRICE EPS PRICE 2006 87. is 2.74 725 19.85% and share prices increased from 3449 to 3454. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return. is -12.90% WIPRO: Over the course of 5 periods Earnings Per Share increased from 14.58 1748.86 to 101.9 19.5 46.8 5. and its compound annual growth rate or its overall return.05 1148.96 535 11. is -8.17 to 33.7 2009 101.44% -4% -8.58 2614 47.44% HCL: Over the course of 5 periods Earnings Per Share declined from 19. is 2.13 3454 28.75.7 2007 66.66% 65 .07 1077 20.02% -12% -11% 18.41% and share prices declined from 2092 to 1180.6 714.

7 to 1158.91% CHART-8 66 . and its compound annual growth rate or its overall return.40% and share prices declined from 1748.TECH MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 19. is 25.73. and its compound annual growth rate or its overall return. is -7.58 to 60.

TABLE .4.14 METAL SECTOR 67 .

7 25.67 439. is -0.9. is -20.5% 21% From the above table it is found that: TATA STEEL: Over the course of 5 periods Earnings Per Share declined from 63. is -38.72 2939. is -26.8 14.8% 19.45 904 9.07 to 15. and its compound annual growth rate or its overall return.27 STERLITE EPS PRICE 45.37% and share prices declined from 2939.28 251.3 22.9 2010 56.12 240 23. is -2.30% and share prices declined from 745 to 739.3% 20.3 to 247.1 38.31 221.35 745 2007 72.9 13.72 to 9.28 to 10.4 17.04 1149.4% SESA GOA EPS PRICE 137.16% HINDAL CO EPS PRICE 14.89 796. and its compound annual growth rate or its overall return.16% HINDALCO: Over the course of 5 periods Earnings Per Share declined from 14.85% and share prices declined from 251. is -19.1. and its compound annual growth rate or its overall return.43 1082.5% JINDAL EPS PRICE 186.89.50% JINDAL: Over the course of 5 periods Earnings Per Share declined from 186. and its compound annual growth rate or its overall return.35 to 56.7 627.49 495 28. is -6.4 13.89. is -0.37. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.34 6785 99.01 247.06 3940 379.9 6.89 928.04 1615 154.74 1048 2008 63.9.27% STERLITE: Over the course of 5 periods Earnings Per Share declined from 45. and its compound annual growth rate or its overall return.86% and share prices declined from 2290 to 796.3% 0.TATA STEEL YEAR EPS PRICE 2006 63.85 957 2009 69.01.05 4400 24.35 3622 15.9 26.12 163 10.3 6540 80. and its compound annual growth rate or its overall return.07 2290 228.8% 0.40% 68 .37 739 CAGR 2.8 to 928.

and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.04 to 25. is -21% CHART-9 69 .SESA GOA LTD: Over the course of 5 periods Earnings Per Share declined from 137.49. is -28.56% and share prices declined from 1615 to 495.

15 AUTOMOBILE SECTOR 70 .TABLE .4.

is 5.7 2094 17. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return. is 0.TATA MOTORS YEAR 2006 2007 2008 2009 2010 CAGR EPS 39.72 to 36.72.48 39.37 117.2 From the above table it is found that: TATA MOTORS: Over the course of 5 periods your Earnings Per Share increased from 36.48 52.72 915 44.16 990.55% 41.87% 122.09% and share prices increased from 915 to 1199.69 1.73% MAHINDRA & MAHINDRA EPS PRICE BAJAJ AUTO HERO HONDA MOTORS MARTUTI SUZUKI EPS PRICE EPS 108.87 52.5% PRICE 3325 898 1799.69.3 86.6 1382 6.8 988 824.37% 36.4% PRICE 997.35 3375.88 1001 46.89.15 874 30. and its compound annual growth rate or its overall return.47 64.63 19.1% PRICE 940 807.7 54.18 1737.25 45.09% and share prices increased from 997.96 48. and its compound annual growth rate or its overall return.72 to 36.73% MAHINDRA & MAHINDRA: Over the course of 5 periods Earnings Per Share increased from 36. is 0.77 18. and its compound annual growth rate or its overall return. is 1.87 to 117.7 16% 9.1 799.5% and 71 .69 1094 36.5 3070 -1.64 42.45 1586.07 1248 59.26 -0.6% EPS 48.55% BAJAJ AUTO: Over the course of 5 periods Earnings Per Share increased from 108.94 49.19 111.8 to 1382.9% 5.91 1055 42.89 1199 0.2 898 1808. is -6.

77. is 17. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return. and its compound annual growth rate or its overall return.10% and share prices increased from 940 to 2094.45. is 9. is 16% and share prices increased from 990.7. and its compound annual growth rate or its overall return. is -1.58% HERO HONDA MOTORS: Over the course of 5 periods Earnings Per Share increased from 48.16 to 86.64 to 111. and its compound annual growth rate or its overall return.37% MARTUTI SUZUKI: Over the course of 5 periods Earnings Per Share increased from 41.7 to 1586. is 18.87% CHART-10 72 .share prices declined from 3325 to 3070.

CHAPTER – 5 FINDINGS AND CONCLUSION 73 .

4% of the variations of share price movements are due to Earnings Per Share and Dividend Per Share are having high positive correlation with share price movements. which indicates 84.832.4% of the share price movements are due to the Dividend Per Share.944.5. which indicates 83.844. is 25. The calculated r (0.912) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0. The coefficient of determination r2 value is 0.94% of Earnings per share ICICI has high compound annual growth rate of 71. The calculated r (0. and its compound annual growth rate or its overall return.919).59% AXIS BANK has high compound annual growth rate of 28. ICICI is having high positive correlation with price earnings ratio. which indicates 94.971) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.FINANCIAL SECTOR HDFC BANK is having high positive correlation with Earnings Per Share. AXIS BANK having high growth in share prices increased from 514.40% of Dividend Per Share ENERGY SECTOR 74 .8 to 1608.2% of the variations of share price movements are due to price earnings ratio. Here the calculated value of r is (0.

996. is 9.25. The calculated r (0.798. NTPC is having high positive correlation with price earnings ratio.998) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0.6% of the variations of share price movements are due to price earnings ratio.893) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0. which indicates 79.7 to 520.14% of Dividend Per Share IT SECTOR 75 . The calculated r (0. Here the calculated value of r is (0.8% of the variations of share price movements are due to Earnings Per Share and Dividend Per Share is having high positive correlation with share price movements.679.9% of the share price movements are due to the earning. and its compound annual growth rate or its overall return. which indicates 67.RELIANCES INDUSTRIES is having high positive correlation with Earnings Per Share.824).44% of Earnings per share TATA POWER has high compound annual growth rate of 7. which indicates 99.81% NTPC has high compound annual growth rate of 8. GAIL (INDIA) having high share prices increased from 325. The coefficient of determination r2 value is 0.

which indicates 83% of the variations of share price movements are due to price earnings ratio.911) value shows that the price earnings ratio is positive correlated and here the calculated coefficient of determination r2 is 0.8% of the share price movements are due to the Earnings per Share. The calculated r (0.4% of Earnings per share TCS has high compound annual growth rate of 8. WIPRO having high growth in share prices increased from 670 to 755. The coefficient of determination r2 value is 0.85. Here the calculated value of r is (0.HCL is having high positive correlation with price earnings ratio.83.87).758.17% of Dividend Per Share METAL SECTOR 76 . TECH MAHINDRA has high compound annual growth rate of 25. is 2. which indicates 75. Next to the price earnings ratio Earnings per Share is having high positive correlation with share price movements.44% . and its compound annual growth rate or its overall return.

which indicates 76. The calculated value of r is (0. The calculated r (0. TATA STEEL is having high positive correlation with Price Earnings Ratio.9% of the variations of share price movements are due to Price Earnings Ratio.736.6% of Dividend Per Share AUTOMOBILE SECTOR 77 . which indicates 73. SESA GOA LTD having high positive correlation with Dividend Per Share. JINDAL STEEL has high negative compound annual growth rate of 38. The coefficient of determination r2 value is 0. which indicates 95% of the variations of share price movements are due to Earnings Per Share.974) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.769.95.86% of Earnings per share STERLITE INDUSTRIES has high compound annual growth rate of 3.858). The calculated r (0.6% of the share price movements are due to the Dividend Per Share.877) value shows that the Price Earnings Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.STERLITE is having high positive correlation with Earnings Per Share.

701.968) value shows that the Dividend Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.892) value shows that the Earnings Per Share is positive correlated and here the calculated coefficient of determination r2 is 0.938.796. MAHINDRA & MAHINDRA is having high positive correlation with Price Earnings Ratio. which indicates 70. and its compound annual growth rate of its overall return. which indicates 79. The calculated r (0. Next to the Price Earnings Ratio HERO HONDA MOTORS share prices increased from 940 to 2094.8% of the variations of share price movements are due to Dividend Per Share. The calculated r (0.HERO HONDA MOTORS is having high positive correlation with Earnings Per Share. The calculated r (0.6% of the variations of share price movements are due to Earnings Per Share BAJAJ AUTO is having high positive correlation with Dividend Per Share. which indicates 93.837) value shows that the Price Earnings Ratio is positive correlated and here the calculated coefficient of determination r2 is 0.10% and Dividend Per Share of Hero Honda Motors has high compound annual growth rate of 40.62% CHAPTER – 6 SUGGESTIONS 78 .37% and Earnings per share of Hero Honda Motors has high compound annual growth rate of 18. is 17.1% of the variations of share price movements are due to Price Earnings Ratio.

investors may invest in this sector CAGR of EPS of Axis Bank is 28. there are several factors which affected the stock prices. since CAGR of EPS are 38.9% which seems to be attractive for investment  Mental sector is another attractive avenue for investment.8% and 28. Investors should consider those factors before making investment decision CHAPTER – 7 CONCLUSION 79 . so investors should considered EPS as an important factor for making investment decision  Financial sector shares have delivered good EPS for last five years.5% respectively  Other sectors are less attractive compared to these two sectors  Even though EPS is an important factor determining the price movements of stock. From this study we found that stock price largely depends on EPS. investors may invest in Jindal steel and Sesa Goa.

It has been found that dividend has a significant impact on the market price of shares in all the selected industries. company progress. Thus. Surprisingly. that no single variable has significantly influenced the share prices of the selected industries. and according to that they should take decisions whether to buy or sell securities. Therefore study reveals that different variables assumed significance in different years depending upon the stock market conditions.The following broad conclusions are drawn form the findings of this empirical work. This study thus corroborates the views expressed by the empirical researchers in the past that none of the variables has any significant impact on the equity prices of all industry at all times. out of the three variables taken for the study. Earnings Per Share. broadly rejecting the hypothesis that the set of variables determining equity price behavior for both the groups would be significantly different from each other due to the different in the nature and motive of investment Finally. the next is the Dividend Per Share followed by the Price Earning Ratio. investing in shares especially the secondary market becomes a very rich experience. The correlation techniques have revealed that earnings per share is the most determinant factor of market price of share out of the three variables taken for the study. Hence. economy. To conclude. the investors should keenly watch the situation like market price. the Earnings per share have proud to be the most determinant factor of share price. etc. REFERENCE 80 .

Rubin. R. New Age International Publication.  Saravanavel. Levin & David S.  Richard I.com  www. Research Methodology. New Delhi. Research Methodology: Methods and Techniques. 2009. C. Sultan Chand &Sons. Allahabad. Nseindia. 2008. WEBSITES:  www. 2002. 2009 New Delhi.R..Icicidirect. 1st Edition Reprint. Arora.com  www..Moneypore. “STATISTICS FOR MANAGEMENT”. KITAB Mahal.Moneycontrol. BOOKS:  Kothari. Statistics for management.N. Pearson Education.com  www.  Arora.com MAGAZINES:  Capital Market  Dalal Street ANNEXURE FINANCIAL SECTOR 81 . 2st Edition Reprint. S. Seventh Edition... P. 19th Edition.

07 85.45 DPS 20 22 25 30 36 PRICE 234 316.6 84.77 80.38 62.55 34.59 37.5 10 11 11 12 PRICE 925 1349 1455.3 82 .ICICI YEAR 2006 2007 2008 2009 2010 EPS 28.8 173.37 33.95 200.24 98.1 DPS 8.5 980 1279 HDFC LTD YEAR 2006 2007 2008 2009 2010 EPS 50.76 36.

HDFC BANK YEAR 2006 2007 2008 2009 2010 EPS 27.5 29 30 PRICE 1617.9 SBI YEAR 2006 2007 2008 2009 2010 EPS 83.87 44.5 10 12 PRICE 1150 1799.73 86.4 2476 2574 2500 3515 83 .67 144.81 44.37 DPS 14 14 21.8 1825 1839 2539.5 7 8.77 64.56 143.42 DPS 5.29 106.87 52.

57 62.94 50.06 DPS 19.8 1025 1291.4 29.AXIS BANK YEAR 2006 2007 2008 2009 2010 EPS 17.5 1064 1608.5 ENERGY SECTOR 84 .41 23.5 6 10 12 PRICE 514.5 8.

4 78.RELIANCES YEAR 2006 2007 2008 2009 2010 EPS 65.71 133.6 1472.09 75.39 DPS 45 32 32 32 33 PRICE 1513.86 97.14 78.6 85 .5 1356 1277.95 2989 3298 2535 1149.64 DPS 10 11 13 13 7 PRICE 1315.28 49.08 85.2 73.9 ONGC YEAR 2006 2007 2008 2009 2010 EPS 101.9 1385.

8 3.6 3.42 41.5 3.9 1649.5 11.NTPC YEAR 2006 2007 2008 2009 2010 EPS 7.75 241.21 39.9 TATA POWER YEAR 2006 2007 2008 2009 2010 EPS 30.59 DPS 2.85 35.65 39.5 9.5 12 PRICE 622 1476.99 9.7 86 .8 1490 1517.3 290.35 238.9 283.06 8.5 10.93 DPS 8.33 8.8 PRICE 157.2 3.95 10.

25 IT SECTOR INFOSYS YEAR 2006 2007 2008 2009 2010 EPS 87.5 438.65 520.5 33.1 24.22 30.GAIL(INDIA) YEAR 2006 2007 2008 2009 2010 EPS 27.58 101.75 DPS 10 10 10 7 7.13 87 DPS 45 11.86 66.32 28.15 101.25 23.5 25 PRICE 3449 2415 2046.23 78.5 PRICE 325.76 22.85 555.5 2614 3454 .7 551.

36 DPS 5 6 6 4 6 PRICE 670 691 535 700 755.96 20.5 14 14 20 PRICE 2092 1388.17 19.07 47.TCS YEAR 2006 2007 2008 2009 2010 EPS 55.5 11.52 38.3 33.85 88 .48 20.9 1077 805 1180 WIPRO YEAR 2006 2007 2008 2009 2010 EPS 14.92 28.39 46.62 DPS 13.

57 DPS 16 8 9 7 4 PRICE 725 714.3 5.6 11.7 1158 89 .HCL YEAR 2006 2007 2008 2009 2010 EPS 19.7 1148.38 26.72 14.74 16.05 60.84 81.8 334.88 15.75 TECH MAHINDRA YEAR 2006 2007 2008 2009 2010 EPS 19.7 2048 1159.5 4 3.8 2.73 DPS 8.5 PRICE 1748.58 5.45 388 460.

35 PRICE 745 1048 957 627.85 1.35 72.28 22.37 EPS 14.35 1.85 69.12 23.5 16 16 8 DPS 2.01 90 DPS 13 15.4 163 247.12 10.2 1.7 1.74 63.31 13.7 HINDAL CO 56.3 240 221.9 .METAL SECTOR TATA STEEL YEAR 2006 2007 2008 2009 2010 YEAR 2006 2007 2008 2009 2010 EPS 63.9 739 PRICE 251.

07 228.45 9.75 PRICE 2939.89 DPS 15 18 4 5.9 1082.8 1149.72 14.1 91 .4 904 928.04 13.43 17.34 99.9 JINDAL YEAR 2006 2007 2008 2009 2010 EPS 186.5 3.5 125 PRICE 2290 6540 6785 3622 796.13 4 4 3.89 DPS 3.STERLITE YEAR 2006 2007 2008 2009 2010 EPS 45.35 15.3 80.

06 379.67 25.49 DPS 40 40 45 2.05 24.25 PRICE 1615 3940 4400 439.25 3.7 495 92 .04 154.SESA GOA YEAR 2006 2007 2008 2009 2010 EPS 137.

89 DPS 10 11.72 44.48 39.63 19.5 11.15 30.6 1382 MAHINDRA &MAHINDRA YEAR 2006 2007 2008 2009 2010 EPS 36.48 52.88 46.94 49.1 799.8 988 824.69 36.26 DPS 13 15 15 6 15 PRICE 997.5 PRICE 915 1001 874 1094 1199 93 .5 10 9.AUTOMOBILE SECTOR TATA MOTORS YEAR 2006 2007 2008 2009 2010 EPS 39.

37 117.77 110 PRICE 940 807.69 DPS 40 22 20 40 40 PRICE 3325 3375.5 3070 YEAR 2006 2007 2008 2009 2010 HERO HONDA MOTORS EPS DPS 48.25 45.96 17 48.2 898 1799.7 2094 94 .47 19 64.19 20 111.87 122.64 20 42.35 52.BAJAJ AUTO YEAR 2006 2007 2008 2009 2010 EPS 108.2 898 1808.

91 42.7 95 .07 59.5 6 PRICE 990.45 DPS 3.5 5 3.7 1248 1055 1737.MARTUTI SUZUKI YEAR 2006 2007 2008 2009 2010 EPS 41.5 4.16 54.18 86.3 1586.