EXECUTIVE SUMMARY

The main aim of this project is to do equity research on the IT and Telecom sector and
to find out the opportunities of investment in these sectors where returns can be
maximized. This report starts with Sectors Analysis of IT and Telecom sector
followed by the fundamental analysis of the companies where EIC (economy,
industry, Company) Analysis of the sector has been done. Economy of India, IT and
Telecom industry are analysed on the basis of various factors and indicators. After
analysing these companies, stock price is estimated by Relative Valuation Method.
Technical analysis is used to study stock chart patterns of these companies. The
observed patterns are tested with various oscillators and decision about particular
stock is made. Based on these factors, trend of a particular stock is observed and
ratios are calculated and then the target price is estimated. This report will help the
investors to know about the current growth prospects of Indian Economy in relation
with IT and Telecom sector. They will get to understand various factors affecting
these sectors and their impact on the growth of the sector. This report will help them
in comparing the stocks and their estimated future share prices, so that they can invest
in better options and get maximum returns. This report will help Birla Sunlife Wealth
Management on their investment decisions of the wealth management team.

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OBJECTIVE OF THE PROJECT

 To provide an overview of IT sector and Telecom sector.

 To study about some of the major players in Indian IT sector and Telecom sector
which has good investment prospects.
 To identify the growth drivers of both the sectors.
 To identify the top-line and bottom-line of the companies selected under both the
sectors and the factors that affect them.
 To analysis of various stocks of the IT sector and Telecom sector by calculating
the various ratios, the price targets and the technical analysis which would help us
know which stock is outperforming and which stock is underperforming.
 To study how much shares of IT sector and Telecom sector would rise or fall
when the market fluctuates in future.

 To study how to maximize the return by diversification of risk in the portfolio.

METHODOLOGY:-

 The data will be collected from the secondary sources such as company’s annual
reports, research reports, websites, news articles etc. Time horizon from 2013-14
to 2014-15 will be taken into account for analysis.
 The industries in IT sector and Telecom sector are focused on and its performance
and relation with the Indian economy was monitored and then specific stocks were
chosen to be invested in depending upon the fundamentals of the company stocks.
These stocks were individually analysed and then measured whether it would give
maximum returns if invested in.
 There are various methods of research analysis like Ratio Analysis, CAPM
Model, P/E ratio, EPS estimation, SWOT analysis, Economic Analysis, Industry
Analysis which would be used.

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AN OVERVIEW OF BIRLA SUNLIFE WEALTH
MANAGEMENT
MISSION
To consistently pursue investor's wealth optimization by: - Achieving superior and
consistent investment results.

- Creating a conducive environment to hone and retain talent.

- Providing customer delight.

- Institutionalizing system-approach in all aspects of functioning

- Upholding highest standards of ethical values at all times.

VISION
To be leader and role model in a broad based and integrated financial services
business.

COMPANY PROFILE
An investment strategy is a crucial element of wealth management. It is a
combination of expertise and perception, complex market dynamics and innate
planning. With the variety and complexity of the investment options available in
today's marketplace, it is important to have disciplined, experienced professionals to
provide advice at every stage in your life. And this is where they come in.

Aditya Birla Money, Wealth Management offers unique services: so personalized,

that the customers get the best of both the worlds. Its focus and dedication is towards
the success of its client’s and client’s aspirations regarding his finances. That is why;
more than a plan, a customer need a partner with the financial expertise and cutting-
edge tools and processes to maximize their hard-earned wealth. Wealth Management
works with its customers to help ensure their goals are not just met - but exceed their
expectations at every step. Aditya Birla Money Wealth Management is a trusted
advisor and partner in helping customers achieve the pinnacle of financial success.

ORGANISATION STRUCTURE

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The leadership team provides strategic direction to Group
companies. The team comprises:
Mr. Kumar Mangalam Birla Chairman Aditya Birla Group
Mr. PranabBarua Retail and Apparels
Mrs. Rajashree Birla Chairperson, The Aditya Birla Centre
for Community Initiatives and Rural Development
Mr. Rajiv Dube Group Corporate Services
Mr. Ajay Srinivasan Financial Services
Dr. Rakesh Jain Aditya Birla Nuvo
Mr. AskaranAgarwala Birla Group Trusts & Special
Community Projects
Mr. Ravi Kastia Trading, Port and Power Projects
Dr. Bharat Singh Business Review Council (Services business)
Mr. HimanshuKapania Telecom
Mr. D.D. Rathi Business Review Council (Services business)
Dr. Santrupt B. Misra Carbon Black Business and Group HR
Mr. Debu Bhattacharya Metals
Mr. Shailendra Jain Chairman, Business Review Council
(Manufacturing business)
Mr. K. K. Maheshwari Pulp &Fibre
Mr. Thomas Varghese Textiles
Mr. LalitNaik Chemicals
Mr. O. P. Puranmalka Cement

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PRODUCTS AND SERVICES
PRODUCTS OFFERED
Sr. no
Product About the Product
1 Mutual Funds Mutual Funds give access to Indian equity
and debt securities. It offers advice on the entire universe of
mutual funds: Equity funds – growth or capital appreciation
Debt funds – capital preservation 2 Portfolio Management
System Portfolio Management System is a unique way to build
a customized portfolio of Indian equities. It acts as authorized
distributors for various PMS providers to meet the growing
needs of investors and expand a portfolio beyond equities and
bonds 3 Direct equity structured products It offers convenient,
simple and efficient trading in Indian equities. They provide
with a seamless platform to invest in the Indian secondary
markets. The Wealth Management advisor will provide
valuable advice based on their in- house research 4 Structured
products It brings customized investment solutions, giving
access to various asset classes. Unlike most other structures,
returns can be linked to a variety of asset types such as equity
indices, basket of stocks, and commodities. 5 Alternate asset
product Through its distribution tie-ups, they offer a wide
range of Private Equity Fund (which invest in unlisted
securities) to give the opportunity of investing in the growing
Indian economy. With these products and investment strategy,
one can preserve their capital, ensure risk protection, leverage
and diversify. 6 Real estate They bring in a combination of in-
depth market knowledge and real estate industry expertise to
offer a range of specialized real estate investment services.

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They provide expert advice and innovate real estate solutions
tailor made
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to ones needs and objectives
7 Loan against Securities and mutual funds
Tie-up with Aditya Birla Finance lets its customers use their
share investments as security against borrowing. This way, one
is able to investment more, and increases the size of its overall
portfolio. 8 Gold A healthy portfolio is about diversification
and risk management. To this end, it offers multiple avenues
of investing in gold. Holding gold in a portfolio can provide
distinct benefits, as it is not correlated with most other assets. 9
Life Insurance While offering solutions for building and
preserving capital, Relationship Manager will also offer
comprehensive advice on how best to provide for financial
protection to loved ones and cover risks and uncertainties.
Affiliation with Birla Sun Life Insurance provides the
opportunity to obtain even more favourable offers, which can
result in lower costs and greater benefits
SERVICES OFFERED
Sr. No
Service About the Service
1 Research Birla’s quality research provides clients with the
information they need to make informed investment decisions.
The research team is dedicated to keeping the customer
updated with access to the latest publications and a wide range
of industry happenings including: market depth, breaking
commentary, long-term forecasts, detailed daily updates and
the latest financial news. 2 Highly proactive services Service
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includes Daily Market Update, Weekly update on mutual
Funds and Event Based SMS to keep the customer completely
informed on the markets
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3 Online Portfolio Access The online portfolio ensures every
detail of one’s investments at fingertips. One can constantly
monitor the composition of its portfolio, so you always know if
their long term objectives are being met. 4 Financial Planning
They offer a comprehensive financial planning session to help
devise the investment strategy. This is followed by
complimentary personalized report outlining specific
recommendations on the step-by-step actions need to take to
achieve the financial goals 5 Regular Portfolio Reviews
Customer portfolio undergoes regular reviews to ensure your
money is constantly working in your best interest, keeping
their personal financial goals in sight.
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SWOT ANALYSIS
SWOT Analysis
Strength
1. Backed By Aditya Birla Brand and Sun Life financial
services 2. Emphasis on Customer Satisfaction through
Transparent Functioning 3. Strong Capital Base
Weakness
1. Low Presence in Rural Market 2. Lesser advertising as
compared to competitors
Opportunity

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1. Growing potential in the Rural Market 2. Alignment with
Government Schemes 3. Better awareness amongst people for
getting insurance
Threats
1. Economic crisis and economic instability 2. Entry of new
NBFCs in the sector
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COMPETITORS OF BIRLA SUNLIFE WEALTH
MANAGEMENT (ADITYA BIRLA MONEY)
Wealth Management now-a-days face a lot of competition in
the market. The competitors of Birla Sunlife Wealth
Management now, Aditya Birla Money competes with 25 other
companies providing wealth management services, few
competitors are as follow
India bulls, Network 18, Edelweiss Fin, India Info
line, MotilalOswal
COMPANIES PERFORMANCE
Company achieved gross revenue of Rs. 53.84 Cr during the
year under review as against the gross revenue of 64.51 Cr
during the previous year, a decrease of 19%. Total expenditure
reduced marginally to 69.12 Cr compared to 69.52 Cr during
the previous year. As a result, the total loss before depreciation
and tax was 15.28 Cr as against a loss of 5.01 Cr in the
previous year. This increase in loss was primarily due to
continuous downside witnessed in domestic equities
participation which resulted in the growth of AUM of Mutual
Funds, thus impacting overall revenue. The Company however
continues to expand its distribution channel across various
asset classes of financial products and range of product
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offering for its clients. During the year, Company mobilized
aggregate funds under different asset classes to the tune of 1,
97,538 Cr. The Mutual Fund Assets Under Advice (AUA) as at
March 31, 2012 was 12,545 Cr as against 13,861 Cr last year,
a decrease of 9.5%. The market share of the Company’s
closing AUA stood at 2.14%, which makes it 3rd largest
Corporate Distributors in terms of closing AUA as on 31st
March 2012 (as per CAMS report).

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GROWTH
These regulatory changes remain dynamic and may change
the overall structure for investment management as well as the
distribution industry. The state of equity market will be the key
for growth. Though the MF industry continues to be under
pressure and the revenue is at the decline, the Company has
plans to strengthen its wealth management segment,
streamline its retail distribution network, focus on client
acquisition and engagement through its product offering
across all segments, improved processes to increase the
revenue stream and at the same time work on cost
optimizations measures.

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 INTRODUCTION TO EQUITIES
Equity:

The term's meaning depends very much on the context. In finance, in general, equity
is an ownership in any asset after all debts associated with that asset are paid off. For
example, a car or house with no outstanding debt is considered the owner's equity
because he or she can readily sell the item for cash. Stocks are equity because they
represent ownership in a company.

1) A stock or any other security representing an ownership interest.

2) In the context of margin trading, the value of securities in a margin account minus
what has been borrowed from the brokerage.

3) In the context of real estate, the difference between the current market value of the
property and the amount the owner still owes on the mortgage. It is the amount that
the owner would receive after selling a property and paying off the mortgage.

4) On a company's balance sheet, the amount of the funds contributed by the owners
(the stockholders) plus the retained earnings (or losses). Also referred to as
"shareholders' equity".

Equity Share:

An equity shares, commonly referred as ordinary share, represents the form of

fractional ownership in a business venture.

Analysis of Global Equity Market:

World’s Capital Market – Size of Global Stock and Bond market

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Mckinsey & Co. put a treasure trove of data about the size of stock and bond market
around the world in an august 2011 publication, mapping Global Capital Market
2011. The Global bond to be $157 Trillion out of the total $212 Trillion of capital
(bond and Stock) with stock at $54 Trillion that put bond is about 75% of capital, and
stocks at about 25% of capital globally.

Separate data about the US from SIFMA, put the US bond market at just under $37
Trillion (including municipal bond) at the end of 2011 and Bloomberg put US stocks
now (April 2012) at about $21.4 Trillion.

By subtraction, non- US debt outstanding is $120 Trillion, and non-US stocks are at
$32.6 Trillion.

Global Equity Indexes:

There are three most commonly used global indices which represent the global equity
market such as Morgan Stanley Capital International (MSCI) World Index, the
Financial Times Stock Exchange (FTSE) All World Index and the Dow Jones Global
Index (DJGI).

MSCI World Index- the MSCI World is a stock market index of 1,612 world' stocks.
It is maintained by MSCI Inc., formerly Morgan Stanley Capital International, and is
often used as a common benchmark for 'world' or 'global' stock funds. The index
includes a collection of stocks of all the developed markets in the world, as defined by
MSCI. The index includes securities from 23 countries but excludes stocks from
emerging and frontier economies making it less worldwide than the name suggests. A
related index, the MSCI All Country World Index (ACWI), incorporated both
developed and emerging countries. MSCI also produces a Frontier Markets index,
including another 31 markets. MSCI uses

Free Float Methodology of Index Construction. The MSCI World Index has been
calculated since 1969. As per MSCI Index (Average Return=6%)

FTSE All World Index

The FTSE Global Equity Index Series covers over 8,000 securities in 48 different
countries and captures 98% of the world's investable market capitalization - covering
every equity and sector relevant to international investors’ needs. The index series is

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divided into Developed, Advanced Emerging and Secondary Emerging segments,
giving investors the opportunity to develop their own investable universe. As per
FTSE All-Index (USD) from 2 Jan 2002 to 30 may 2014 FTSE has given 77.73%
capital return and 107.36% Total Return. FTSE also following the Free Float
Methodology for Index Construction.

Analysis of Indian Equity Market

In India there are two nationalized Stock Exchange Bombay stock Exchange (BSE)
and National Stock Exchange which represents the Indian equity markets. Investors
can buy equity shares of a company from Security market that is from Primary Market
and Secondary Market. The primary market provides the channel for sale of new
securities. Primary market provides opportunity to issuers of securities; Government
as well as corporate, to raise resources to meet their requirements of investment
and/or discharge some obligation. Investors can buy shares of a company through IPO
(Initial Public Offering) when it is first time issued to the public. Once shares are
issued to the public it is traded in the secondary market. Stock exchange only acts as
facilitator for trading of equity shares. Anyone who wishes to buy shares of a
company can buy it from an existing shareholder of a company.

Evolution in Indian Equity Market-

With the onset of globalization and the subsequent policy reforms, significant
improvements have been made in the area of securities market in India.
Dematerialization of shares was one of the revolutionary steps that the government
implemented. This led to faster and cheaper transactions, and increased the volumes
traded by many folds. The adoption of the market-oriented economic policies and
online trading facility transformed Indian equity markets from a broker-regulated
market to a mass market. This boosted the sentiment of investors in and outside India
and elevated the Indian equity markets to the standards of the major global equity
markets.

The 1990s witnessed the emergence of the securities market as a major source of
finance for trade and industry. Equity markets provided the required platform for
companies and start-up businesses to raise money through IPOs, VC, PE, and finance
from HNIs. As a result, stock markets became a people’s market, flooded with

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primary issues. In the first 11 months of 2007, the new capital raised in the global
public equity markets through IPOs accounted for $107 billion in 382 deals out of the
total of $255 billion raised by the four BRIC countries. This was a sizeable growth
from $90 billion raised in 302 deals in 2006. Today, the corporate sector prefers
external sources for meeting its funding requirements rather than acquiring loans from
financial institutions or banks. 3972, that’s where the BSE Sensex was on Jan 2001 at
the start of the decade, it’s a shade above 20,500 at the end of it in 2010, a more than
fourfold rise. Information Technology, which was the darling of investors then, gave
way to the Consumption and Infrastructure story.

Here’s a walk down memory lane and some interesting facts for the last decade and of
course the last year (2010).The last decade (2000-10) was probably one of the best for
the Indian capital markets, even a shade better than the 90s decade which actually
established the base for the ‘00s decade through economic liberalization. The 90s got
blemished and diluted due to 2 domestic scams – Harshad Mehta and Ketan Parekh –
while the ‘00s had the global sub-prime crisis that brought the world to its knees. The
difference was, the last 10 years saw access to global capital become easier for the
Indian corporate sector and size multiplied through some of the largest global
acquisitions by Indian conglomerates. Risk-aversion, Carry trade, as well as sheer
growth of the BRIC economies ensured that FII flows towards Emerging Markets and
towards India grew multifold, creating a unique high liquidity equation. Basically the
world sat up and noticed India in the ‘00s. What could the next decade have in store
for us? Fast-forward into 2010 and the final year of the decade eventually turned out
to be an interesting year for an Indian investor. Returns on the Sensex at around 15%
were lower than the 81% returns of 2009. Surprisingly, Gold and Silver gave higher
returns in 2010 than the equity markets, and significantly higher at that. This despite
the fact that the highest ever quantum of FII funds was pumped into the Indian equity
markets. Will the FII flows continue into the Indian equity markets 2011 with the
same intensity given the (slow but) anticipated turnaround of the developed markets
in the next 12 months? Globally speaking, the crisis in Portugal, Greece, Ireland,
Spain etc ensured that the risk aversion continued and that funds moved to safer,
better performing economies. The much looked forward to turnaround in the USA and
the Western economies happened, but at a much slower pace than expected. In the
domestic space, successful stories of 2010 included Automobiles (consistently large

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volumes) interest margins and the simultaneous growth of both the PSU and private
sector Banks), IT (successfully overcame reduced orders from US companies),
Pharmaceuticals and Metals. Sectors that eroded investor net worth included
Infrastructure, Real Estate, Project companies, Power, Media etc. Sectors like Sugar
and Fertilizers showed volatile performance and returns.

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