CHAP 1.

INTRODUCTION OF
PROJECT

1
1.1 INTRODUCTION

India is a developing country. Now days many people are interested to invest in financial
markets especially on equities to get high returns, and to save tax in honest way. Equities are
playing a major role in contribution of capital to the business from the beginning. Since the
introduction of shares concept, large number of investors are showing interest to invest in stock
market.
In an industry plagued with skepticism and a stock market increasingly difficult to predict and
contend with, if one looks hard enough there may still be a genuine aid for the day trader and
short term investor.
The price of a security represents a consensus. It is the price at which one person agrees to buy
and another agrees to sell. The price at which an investor is willing to buy or sell depends
primarily on his expectations. If he expects the security's price to rise, he will buy it; if the
investor expects the price to fall, he will sell it. These simple statements are the cause of a major
challenge in forecasting security prices, because they refer to human expectations.

2
Equity analysis

Equity analysis is researching and analyzing equities, or stocks. These stocks trade on various
stock markets such as the BSE, NSE.

Equity analysts are usually employed by financial firms that have equity research
departments made up of numerous analysts, each of which focuses on being an "expert" on a
particular industry. There are numerous industries within the 10 sectors. Those 10 sectors are the
consumer discretionary, consumer staples, energy, industrials, financials, healthcare, materials,
information technology, and telecommunications and utilities sectors.

On a daily basis, equity research analyses closely “follow", or monitor a number of

stocks. For example, a PC hardware equity research analyst would probably spend a great deal of
time monitoring the business of Dell Computer and any news that may affect dell.

Investors purchase equity shares with two basic objectives:

1. To make capital profits by selling shares at higher prices.

2. To earn dividend income.

These two factors are affected by lots of factors. An investor has to carefully understand
and analyze all these factors. There are basically two approaches to study security prices and
valuation i.e. fundamental analysis and technical analysis.

The value of common stock is determined in large measure by the performance of the
firm that issued the stock. If the company is healthy and can demonstrate strength and growth,
the value of the stock will increase. When values increase then prices follow and returns on an
investment will increase. However, just to keep the savvy investor on their toes, the mix is
complicated by the risk factors involved. Fundamental analysis examines all the dimensions of
risk exposure and the probabilities of return, and merges them with broader economic analysis
and greater

3
Valuation of Equity:

The methods used to analyze securities and market investment decision falls into two very broad
categories:

 Technical Analysis
 Fundamental Analysis

TECHNICAL ANALYSIS –

Technical analysis attempts to use past stock price and volume information to predict future
price movements. The basic premise of technical analysis is that prices move in trends or waves
which may be upward or downward. It is believed that the present trends are influenced by the
past trends and that the projection of future trends is possible by an analysis of past price trends.
A technical analyst, therefore, analyses the price and volume movements of individual’s
securities as well as the market index. Thus, technical analysis is really a study of past or
historical price and volume movements so as to predict the future stock price behavior.

FUNDAMENTAL ANALYSIS –

Fundamental analysis is a method of forecasting the future price movements of a financial

instrument based on economic, political, environmental and other relevant factors and statistics
that will affect the basic supply and demand of whatever underlies the financial instrument.
Fundamental analysis of stock requires analyzing different financial, microeconomic and
macroeconomic factors to determine intrinsic value of stock.
Fundamental analysis thus involves three steps:
1. Economy Analysis.
2. Industry Analysis.
3. Company Analysis.

4
ECONOMY ANALYSIS
The performance of a company depends on the performance of the economy. If the
economy is booming, income rise, demand for goods increases, and hence the industries and
companies in general trend to be prosperous. On the other hand, if the economy is in recession,
the performance of companies will be generally bad.
Investors are concerned with those variables in the economy which affect the
performance of the company in which they intend to invest. A study of these economic variables
would give an idea about future corporate earnings and the payment of dividends and interest to
investors.

INDUSTRY ANALYSIS

An industry is a group of firms that have similar technological structure of production

and produce similar products and Industry analysis is a type of business research that focuses on
the status of an industry or an industrial sector (a broad industry classification, like
"manufacturing"). Irrespective of specific economic situations, some industries might be
expected to perform better, and share prices in these industries may not decline as much as in
other industries. This identification of economic and industry specific factors influencing share
prices will help investors to identify the shares that fit individual expectations.

COMPANY ANALYSIS

Company analysis is the final stage of fundamental analysis. The economy analysis
provides the investor a broad outline of the prospects of growth in the economy. The industry
analysis helps the investor to select the industry in which investment would be rewarding. Now
he has to decide the company in which he should invest his money. Company analysis provides
the answer to this question.

Company analysis deals with the estimation of return and risk of individual shares. This
calls for information. Many pieces of information influence investment decisions. Information
regarding companies can be broadly classified into two broad groups: internal and external.

5
Internal information consists of data and events made public by companies concerning their
operations. The internal information sources include annual reports to shareholders, public and
private statements of officers of the company, the company’s financial statements, etc. External
sources of information are those generated independently outside the company. These are
prepared by investment services and the financial press.

In company analysis, the analyst tries to forecast the future earnings of the company
because there is strong evidence that earnings have a direct and powerful effect upon share
prices. The level, trend and stability of earnings of a company, however, depend upon a number
of factors concerning the operations of the company.

i. Financial Statements
ii. Analysis of Financial Statements
iii. Leverage ratios and Profitability Ratios
iv. Assessment of Risk

6
1.2 OBJECTIVES

The primary objective on equity research is to analyze the earning persistence.

 To study the performance of IT companies.
 To find out potentiality of selected companies.
 To analyze fluctuation of equity market over IT companies.
 Comparative analysis of 3 IT companies

1.3 Scope of the study

The scope of the study is identified and during the study is conducted. The project is
based on tools like fundamental analysis and ratio analysis. Further, the study is based on
information of last five years.
i. The analysis is made by taking into consideration three companies i.e. TCS, Wipro ,
Infosys
ii. The scope of the study is limited for a period of five years.
iii. The scope is limited to only the fundamental analysis of the chosen stocks.

1.4 Need of the study

To start any business capital plays major role. Capital can be acquired in two ways by
issuing shares or by taking debt from financial institutions or borrowing money from financial
institutions. The owners of the company have to pay regular interest and principal amount at the
end. Stock is ownership in a company, with each share of stock representing a tiny piece of
ownership. The more shares a person own, the more of the company he owns. The more shares
he own, the more dividends he earn when the company makes a profit. In the financial world,
ownership is called “Equity”.

7
1.5 Literature Review
There is a vast body of literature by eminent scholars and financial experts on different
aspects of the stock market. The literature available on stock market mainly deals with various
aspects such as stock market efficiency, stock pricing, stock valuation and stock market
operations-. This chapter presents an overview of the important studies mid literature on capital
market.
The review of the available literature shows that although there are a number of studies
on the different aspects of capital market, there is no specific comprehensive study on the
attitudes, aspirations and perceptions of individual investors. The present study is an attempt to
fill this gap to a certain extent

DOW Theory– Trends

The ideas of Charles Dow, the first editor of the Wall Street Journal, form the basis of technical
analysis. The Dow Theory is a method of interpreting and signaling changes in the stock market
direction based on the monitoring of the Dow Jones Industrial and Transportation Averages.
Dow created the Industrial Average, of top blue chip stocks, and a second average of top railroad
stocks (now the Transport Average). He believed that the behavior of the averages reflected the
hopes and fears of the entire market. The behavior patterns that he observed apply to markets
throughout the world.

Baumol (1965)

In this paper researcher ascertains the importance of contribution to a better understanding of the
performance of the stock market. His book represents a synthesis of past research and current
thinking on the subject. It analyses in considerable detail both the short-run and long-run price
equilibrating processes and points out important departures from the competitive ideal and the
implications of these departures to stock market efficiency. Besides, Baumol offers his own
hypothesis on the pricing of securities, and he sheds new light on the overall efficiency of the
stock market as a mechanism for allocating the nation’s capital resources.

8
Bhatia (1970)

In this researcher has made an evaluative study of the “New Issue Market (NIM)” for the period
1958-1973. The role of the financial institutions in the NIM has been described and evaluated.
The study shows that a new class of middle - income individual investors has emerged as an
important supplier of the risk capital.

The growth of joint stock companies played an important role in the development of the new
issue market. Besides, the government also passed various legislations to protect the interests of
the investors. Of the various institutions involved in the organization of the NIM, stock
exchanges are the most important, because they provide a continuous market for issued
securities.

Gupta (1972)
In this researcher he has studied about the working of stock exchanges in India and has given a
number of suggestions to improve its working. The study highlights the need to regulate the
volume of speculation so as to serve the needs of liquidity and price continuity. It suggests the
enlistment of corporate securities in more than one stock exchange at the same time to improve
liquidity. The study also wishes the cost of issues to be low, in order to protect small investors.

9
 Chap.2
INTRODUCTION OF IT SECTOR/
COMPANIES

10
 INTRODUCTION OF IT SECTOR AND COMPANIES
Information Technology (IT) industry in India is one of the fastest growing industries.
Indian IT industry has built up valuable brand equity for itself in the global markets. IT industry
in India comprises of software industry and information technology enabled services (ITES),
which also includes business process outsourcing (BPO) industry. India is considered as a
pioneer in software development and a favorite destination for IT- enabled services.
The origin of IT industry in India can be traced to 1974, when the mainframe
manufacturer, Burroughs, asked its India sales agent, Tata Consultancy Services (TCS), to export
programmers for installing system software for a U.S. client. The IT industry originated under
unfavorable conditions. Local markets were absent and government policy toward private
enterprise was hostile. The industry was begun by Bombay-based conglomerates which entered
the business by supplying programmers to global IT firms located overseas.
Today, Indian IT companies such as Tata Consultancy Services (TCS), Wipro, Infosys, and HCL
etc. all are renowned in the global market for their IT prowess. The IT industry can serve as a
medium of e-governance, as it assures easy accessibility to information. The use of information
technology in the service sector improves operational efficiency and adds to transparency. It also
serves as a medium of skill formation. Economies of scale for the information technology
industry are high. The marginal cost of each unit of additional software or hardware is
insignificant compared to the value addition that results from it.
Unlike other common industries, the IT industry is knowledge-based.
Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a rapid
pace of economic growth. The IT industry helps many other sectors in the growth process of the
economy including the services and manufacturing sectors.

11
MAJOR IT COMPANIES

S. NO. COMPANY

1 TCS

2 INFOSYS

3 WIPRO

4 HP

5 IBM

6 SATYAM

7 HCL

8 PATNI

9 POLARIS

10 CISCO

11 KPIT CUMMINS

12 I-FLEX SOLUTIONS

13 MICROSOFT

14 DELL

15 LARSEN & TURBO

12
2.1 INTRODUCTION OF TCS

Type Public (BSE: 532540)

Subsidiary of Tata Group

Founded 1968
Headquarters Mumbai, India
Key people Natarajan chandrasekaran
(Chairman)
Rajesh Gopinathan.
(MD & CEO)

Industry ` Software services

Products Digital Certification Products

Healthcare Management Systems
IT consulting
IT services
Outsourcing

13
COMPANY PROFILE
Founded in 1968 as a division of Tata Sons Limited, Tata Consultancy Services Limited
(“TCS” or the “Company”) got incorporated as a separate entity on January 19, 1995. TCS is an
IT services, business solutions and outsourcing organization.

The Company operates through 58 subsidiaries and its service portfolio includes
application development and maintenance, business intelligence, enterprise solutions, IT
infrastructure services, business process outsourcing, connected marketing, social computing,
and consulting services.

55.2% of the overall revenue of the Company comes from U.S., followed by 26.8% from
Europe, 6.2% from India, 9.5% from the Asia Pacific region and 2.3% from the Middle East.
The Company’s BFSI (Banking & Financial Services Industry) domain constitutes 40.9% of its
total revenue.

14
2.2 INTRODUCTION OF INFOSYS

Type Public (BSE 500209)

Founded July 2, 1981

N R Narayana Murthy
Nandan Nilekani
N. S. Raghavan
Founder(s) S. Gopalakrishnan
S. D. Shibulal
K. Dinesh
Ashok Arora

Headquarter Bangalore, India

Nandan Nilekani
Key People (chairman)
Salil S Parekh
(MD & CEO)

15
IndustrySoftware services
ProductsIT Services
Revenue US $ 7.4 billion (2013)
Total Assets US$ 8.53 billion (2013)
Total equity US$ 7.33 billion (2013)
Website www.infosys.com

COMPANY PROFILE -

Founded in 1981, Infosys Limited (“INFY” or the “Company”) is a global leader in consulting,
technology and outsourcing. In addition, Infosys offers software products for the banking
industry – Finacle, which offers solutions to address core banking, mobile banking and e-
banking needs of retail, corporate and universal banks globally. The Company is launching
several new products based on market trends such as cloud computing, enterprise mobility and
sustainability.

Headquartered in Bangalore, the Company has a global footprint with 66 offices and 69
development centers in the United States, India, China, Australia, Japan, Middle East, UK,
Germany, France, Switzerland, Netherlands, Poland, Canada and many other countries.

On January 4, 2012, Infosys BPO Limited acquired Portland Group Pty Ltd. In October 2012, it
acquired Lodestone Holding AG, a leading management consultancy based in Switzerland.

16
2.3 INTRODUCTION OF WIPRO

Type (BSE 507685)

Founded 1945
Founder(s) M.H. Premji
Headquarters Bangalore, Karnataka, India
Key people :Azim Premji (chairman)
AbidaliNeemuchwala (CEO)
Industry Conglomerate
Services IT Consulting
Business Process Outsourcing
Digital strategy, IT services

Revenue US$ 8.47 billion (2019)

Operating income US$ 1.66 billion (2019)

Net income US $1.3 billion (2019)

Total equity US$ 5.62 billion (2019)

Total assets US$ 12.04 billion (2019)

Employees171425 (2019)

17
COMPANY PROFILE

Wipro started in 1945 with the setting up of an oil factory in Amalner a small town in
Maharashtra in Jalgaon District. The product Sunflower Vanaspati and 787 laundry soap (largely
made from a bi-product of Vanaspati operations) was sold primarily in Maharashtra and MP. The
company was aptly named Western India Products Limited.

The Birth of the name Wipro –

As the organization grew and diversified into operations of Hydraulic Cylinders and InfoTech,
the name of the organization did not adequately reflect its operations. AzimPremji himself in
1979 selected the name "Wipro" largely an acronym of Western India Products. Thus was born
the Brand Wipro. The name Wipro was unique and gave the feel of an 'International" company.
So much so that some dealers even sent their cheques favoring Wipro (India) Limited.
Fortunately, the banks accepted them!!By the early 90s, Wipro had grown into various products
and services. The Wipro product basket had soaps called Wipro Shikakai, Baby products under
Wipro Baby Soft, Hydraulic Cylinders branded Wipro, PCs under the brand name Wipro, a joint
venture company with GE named Wipro GE and software services branded Wipro. The Wipro
logo was a 'W", but it was not consistently used in the products. It was clearly felt that the
organization was not leveraging its brand name across the various businesses. The main issue
remained whether a diverse organization such as Wipro could be branded under a uniform look
and feel and could there be consistent communication about Wipro as an organization

18
CHAP 3 INTRODUCTION OF COMPANY

19
3.1 ORGANISATION PROFILE

Asset Villa is a full Service Provider focused on clients and their ‘end to end’ needs Advisory
Services.

With a thorough understanding to fulfill financial goals of our esteemed clientele, we have
designed our offerings in such a way that most of our client's requirement in the area of Mutual
Fund, Debt, Insurance and Financial Advisory Services are fulfilled under a SINGLE
UMBRELLA.

Our emphasis has always been on quality and timely delivery of services. Our clients will reap
the benefits of expert advice, fact-based guidance and support from someone who genuinely
cares for their growth.

VISSION

Our goal is to be the leader in every market we serve, to the benefit of our customers.

MISSION

To help our customers achieve financial prosperity and peace of mind.

As our focus has always been in all clientele level, we devise customized solutions for different
clients suiting their financial goals fulfils. Our esteemed client’s financial goals fulfil are
paramount to us. The success of our clients is the biggest reward for us.

20
3.2 PRODUCT

Mutual funds, Life insurance, Health insurance, General insurance, Fixed deposit, Term assured,
Personal & Home loans, Real estate & Property.

3.3SERVICES
Financial Planning, Wealth management, Insurance Planning, Tax Planning, Estate Planning

FOUNDER AND HEAD BUSINESSES

DEVELOPMENT

FINANC MARKETIN OPERATI

E G & SALES ON

Mr. JayprakashMaurya is the founder and Head business development of Asset villa marketing
insurance LLP. which is further classified as
 FINANCE
 MARKETING AND SALES
 OPERATION

21
CHAP 4.RESEARCH METHODOLOGY

22
4.1 Research methodology

Definition
Research design or research methodology is the procedure of collecting, analyzing and
interpreting the data to diagnose the problem and react to the opportunity in such a way where
the costs can be minimized and the desired level of accuracy can be achieved to arrive at a
particular conclusion.
The sample of the stocks for the purpose of collecting secondary data has been selected
on the basis of Random Sampling. The stocks are chosen in an unbiased manner and each stock
is chosen independent of the other stocks chosen. The stocks are chosen from the IT sector.
The sample size for the number of stocks is taken as 7 for fundamental analysis of stocks
as fundamental analysis is very exhaustive and requires detailed study.

4.2 Source of Data

This report is based on primary & secondary data.

 Primary data is based on the information and knowledge, which I gather when I was intern at
asset villa under the guidance Mr. Jayprakash maurya sir.
 Secondary data is collected from the websites like money control, BSE India, NSE India.

4.3 Sampling Design

Research Method

The descriptive method is used for the study.

Sample Size

For this study three IT companies are selected which are listed under Indian stock market.

23
Chap 5. DATA ANALYSIS AND
INTERPRETATION

24
RATIO & DATA ANALYSIS
Ratio is a relationship between two figures expressed mathematically. Financial ratios
provide numerical relationship between two relevant financial data. Financial ratios are
calculated from the balance sheet and profit and loss account. The relationship can be either
expressed as a percent or as a quotient. Ratios summarize the data for easy understanding,
comparison and interpretations. Ratios for investment purposes can be classified into
profitability ratios, turnover ratios, and leverage ratios. Profitability ratios are the most popular
ratios since investors prefer to measure the present profit performance and use this information
to forecast the future strength of the company. The most often used profitability ratios are return
on assets, price earnings multiplier, price to book value, price to cash flow, and price to sales,
dividend yield, return on equity, present value of cash flows, and profit margins.

 Earnings per Share (EPS):

This ratio determines what the company is earning for every share. For many investors,
earnings are the most important tool. EPS is calculated by dividing the earnings (net profit) by
the total number of equity shares. The computation of EPS is as follows:

 Earnings per share = Net profit/Number of shares outstanding

The EPS is a good measure of profitability and when compared with EPS of similar other
companies, it gives a view of the comparative earnings or earnings power of a firm. EPS
calculated for a number of years indicates whether or not earning power

 Price/Earnings Ratio (P/E):

The P/E multiplier or the price earnings ratio relates the current market price of the share
to the earnings per share. This is computed as follows:

Price/earnings ratio = Current market price / Earnings per share

This ratio is calculated to make an estimate of appreciation in the value of a share of a

company and is widely used by investors to decide whether or not to buy shares in a particular
25
company. Many investors prefer to buy the company's shares at a low P/E ratio since the general
interpretation is that the market is undervaluing the share and there will be a correction in the
market price sooner or later. A very high P/E ratio on the other hand implies that the company's
shares are overvalued and the investor can benefit by selling the shares at this high market price.

26
 TCS

EPS RATIO

Table showing EPS of TCS ( w.r.t BSE India)

YEAR 2015 2016 2017 2018 2019

EPS 98.31 117.11 120.04 131.86 80.12

EPS
140

120 131.86
120.04 117.11
100
98.31
80
80.12
EPS
60

40

20

0
2015 2016 2017 2018 2019

Analysis: From the above table it can be seen that EPS of company in 2005 was 98.31 and it is
increased in next year in 2016 to 117.11. And there was slight in EPS in the year 2017 by 2.93%
Again EPS increases by 11.82% in March 2018 as compare to its previous year & in 2019 there
is decrease in EPS & it falls down to 80.12%

Interpretation: From the above graph it can be seen that EPS of company is increasing from
2015 to 2018 but there is decrease in EPS in 2019 because of some factors.

27
PE RATIO
Table showing PE of TCS( w.r.t BSE India)

YEAR 2016 2017 2018 2019

PE RATIO 36.69 13.65 13.60 19.56

PE RATIO
40

35 36.69
30

25

20
PE RATIO
19.56
15

10 13.65 13.6

0
2016 2017 2018 2019

Analysis: From the above calculation it can be seen that price earnings ratio of company was
decreased from 36.69 to 13.6 from 2016 to 2018. But in next financial year 2019 it increased to
19.56.
Interpretation: Researcher sees that there was up and down in P/E ratio of the company from
2016 to2019.

28
 WIPRO

EPS = Earnings available to Equity share holder/ No of Equity shares

Table showing EPS of Wipro ( w.r.t BSE India)

YEAR 2015 2016 2017 2018 2019

EPS 33.38 32.97 33.61 16.26 12.67

EPS
40

35

30 33.38 32.97 33.61

25

20
EPS
15
16.26
10 12.67

0
2015 2016 2017 2018 2019

Analysis: The above table shows EPS of Wipro is 33.38 in 2015, in next year 2016 it decreased
to 32.97 and again in next year 2017 it is increased to 33.61. But after it is decreased to 16.26 in
2018 which is further decreased to 12.67 in 2019.

Interpretation: From the graph shown above it can be said that there is fluctuation in EPS &
from 2017 to 2019 it continuously decreases.

29
PE RATIO

Table Showing PE ratio of Wipro ( w.r.t BSE India)

YEAR 2015 2016 2017 2018 2019

PE RATIO 30.3 29.58 26.01 26.33 18.3

PE TATIO
35

30
30.3 29.58
25
26.01 26.33
20

15 18.3 PE TATIO

10

0
2015 2016 2017 2018 2019

Analysis: Table shows P/E ratio which was decreased to 18.91% from 2007-08 to 2008-09 and
again it is decreased and comes to 12.79 in 2009-10. In 2010-11 it is increased by 45.74%
compare to previous year and again it comes down to 17.57 in 2011-12

Interpretation: Researcher sees that there is decrease in P/E ratio from2007-08 to 2009-10 but
after that it is growing.

30
 INFOSYS
EPS = Earnings available to Equity share holder/ No of Equity shares

Table showing EPS of INFOSYS ( w.r.t BSE India)

YEAR 2015 2016 2017 2018 2019

EPS 105.91 55.26 60.16 73.97 33.75

EPS
120

100
105.91
80

60 73.97
60.16 EPS
40 55.26

20 33.75

0
2015 2016 2017 2018 2019

Analysis: From above table it is analyzed that in 2015 EPS of Infosys company was 105.91and
in 2016 it was decreased to 55.26 and again in next year 2017 it is increased to 60.16 and in 2018
it was increased to 73.97 & further decrease in 2019.

Interpretation: There are fluctuations in EPS from 2015 to 2019 in 2015 highest EPS is seen as
compare to overall period of 5 yrs

31
PE RATIO

Table showing PE of INFOSYS( w.r.t BSE India)

YEAR 2015 2016 2017 2018 2019

PE RATIO 17.74 19.13 15.69 15.58 21.64

PE RATIO
25

20 21.64
19.13
17.74
15
15.69 15.58
PE RATIO
10

0
2015 2016 2017 2018 2019

Analysis: From the above table it is analyzed that in 2015 P/E ratio was 17.74and then after it is
increased to 19.13 in 2016 and in next year again it is decreased to 15.69 and keep on decreasing
15.58 in and in 2019 it increases to 21.64.
Interpretation: P/E ratio of Infosys is decreasing continuously from 2016 to 2018 & in 2019 it
again increases.

32
CALCULATION OF STANDARED DAVIATION, ROI, BETA

DATE Infosys Wipro TCS

29-May-
19 727.8 285.7 2107.55
30-May-
19 733.55 288 2146.3
31-May-
19 737.75 286.4 2196.55
3-Jun-19 744.65 291.3 2242.3
4-Jun-19 735.3 293.75 2183.1
6-Jun-19 735.6 291.5 2166.1
7-Jun-19 739.1 295.05 2181.75
10-Jun-19 753.5 297.1 2231.5
11-Jun-19 754.9 297.7 2252.8
12-Jun-19 753.8 298 2260.9
13-Jun-19 742.65 298.4 2254.1
14-Jun-19 740.45 298.8 2254.5
17-Jun-19 740.55 299.15 2249.2
18-Jun-19 750.15 298 2250.85
19-Jun-19 751.9 294.05 2259.9
20-Jun-19 754.9 286.95 2277.95
21-Jun-19 750.2 285.85 2249.85
24-Jun-19 745.5 283.9 2275.5
25-Jun-19 748.1 285.3 2267.8
26-Jun-19 739.2 286.15 2254.2
27-Jun-19 730.55 282.1 2252.55
28-Jun-19 732 280.5 2227.2
1-Jul-19 731.3 282 2239.55
2-Jul-19 740 284.25 2252.1
3-Jul-19 731.3 282.85 2237.65
4-Jul-19 733.8 283.85 2242.65
5-Jul-19 718 271.85 2163.1
8-Jul-19 717.6 266.9 2175.4
9-Jul-19 715.5 265.5 2133.35
10-Jul-19 717.25 266.95 2108.2
11-Jul-19 721.5 267.75 2102.55
12-Jul-19 726.75 258.95 2107.6
15-Jul-19 779.35 259.9 2145.7
33
16-Jul-19 784.85 260 2106
17-Jul-19 794.15 259.6 2117.25
18-Jul-19 792.7 269.1 2065.95
19-Jul-19 785.4 264.7 2076.95
22-Jul-19 784.4 264.8 2109.9
23-Jul-19 790.05 264.5 2112.45
24-Jul-19 786.3 264.2 2096.8
25-Jul-19 794.5 262.25 2127.9
26-Jul-19 787 263.6 2109.05
29-Jul-19 791.45 262.4 2130
30-Jul-19 792.7 262.3 2179.15
31-Jul-19 793.65 265.3 2205.7
1-Aug-19 768.85 270.4 2180.05
2-Aug-19 775.6 263.65 2205.3
5-Aug-19 776.7 262 2248.6
6-Aug-19 774.45 258.9 2214.9
7-Aug-19 776.1 262.55 2213.45
8-Aug-19 788.75 265.75 2258.1
9-Aug-19 789.85 263.5 2246.25
13-Aug-19 764.75 258.5 2199.45
14-Aug-19 774.8 251.05 2204.4
16-Aug-19 774.55 249.2 2165.1
19-Aug-19 777.65 252.1 2163
20-Aug-19 792.75 253.3 2186.75
21-Aug-19 799.45 252.4 2186.2
22-Aug-19 795.7 252.05 2216
23-Aug-19 802.2 251.4 2247.7
Mean 759.7292 273.7317 2192.044
std dev 26.17019 15.33906 59.17326
Std dev
w.r.t.m. 3.43% 5.49% 2.69%
variance 696.487 239.2747 3560.822
ROI 10.22% -12.01% 6.65%
Beta 0.668577 0.245476 0.372291

34
Table showing price fluctuations of INFOSYS

Infosys
820
800
780
760
740
720
700 Infosys
680
660

Table showing price fluctuations of WIPRO

Wipro
350
300
250
200
150
100
50 Wipro
0

Table showing price fluctuations of TCS

35
 TCS
2300
2250
2200
2150
2100
2050 TCS
2000
1950

INTERPRETATION
 Standard deviation of Wipro is higher as compared to the rest of the stocks so it is much
riskier with respect to rest o the 2 stocks.
 Infosys has the 2nd most standard deviation providing highest ROI of 10.22% the risk
factor effects
 Wipro with -12.01% as highest negative ROI.
 Beta of Wipro is highest with 0.66 which is considered riskier as compared to rest but is
quiet safer in the market. The market index considered for calculation is Nifty50.

36
% CHANGE

Date infosys%change Wipro% change TCS%change

29-May-19 -0.79% -0.81% -1.84%
30-May-19 -0.57% 0.56% -2.34%
31-May-19 -0.94% -1.71% -2.08%
3-Jun-19 1.26% -0.84% 2.64%
4-Jun-19 -0.04% 0.77% 0.78%
6-Jun-19 -0.48% -1.22% -0.72%
7-Jun-19 -1.95% -0.69% -2.28%
10-Jun-19 -0.19% -0.20% -0.95%
11-Jun-19 0.15% -0.10% -0.36%
12-Jun-19 1.48% -0.13% 0.30%
13-Jun-19 0.30% -0.13% -0.02%
14-Jun-19 -0.01% -0.12% 0.24%
17-Jun-19 -1.30% 0.38% -0.07%
18-Jun-19 -0.23% 1.33% -0.40%
19-Jun-19 -0.40% 2.41% -0.80%
20-Jun-19 0.62% 0.38% 1.23%
21-Jun-19 0.63% 0.68% -1.14%
24-Jun-19 -0.35% -0.49% 0.34%
25-Jun-19 1.19% -0.30% 0.60%
26-Jun-19 1.17% 1.42% 0.07%
27-Jun-19 -0.20% 0.57% 1.13%
28-Jun19 0.10% -0.53% -0.55%
1-Jul-19 -1.19% -0.80% -0.56%
2-Jul-19 1.18% 0.49% 0.64%
3-Jul-19 -0.34% -0.35% -0.22%
4-Jul-19 2.15% 4.23% 3.55%
5-Jul-19 0.06% 1.82% -0.57%
8-Jul-19 0.29% 0.52% 1.93%
9-Jul-19 -0.24% -0.55% 1.18%
10-Jul-19 -0.59% -0.30% 0.27%
11-Jul-19 -0.73% 3.29% -0.24%
12-Jul-19 -7.24% -0.37% -1.81%
15-Jul-19 -0.71% -0.04% 1.85%
16-Jul-19 -1.18% 0.15% -0.53%
17-Jul-19 0.18% -3.66% 2.42%
18-Jul-19 0.92% 1.64% -0.53%
19-Jul-19 0.13% -0.04% -1.59%
22-Jul-19 -0.72% 0.11% -0.12%
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 23-Jul-19 0.47% 0.11% 0.74%
24-Jul-19 -1.04% 0.74% -1.48%
25-Jul-19 0.94% -0.51% 0.89%
26-Jul-19 -0.57% 0.46% -0.99%
29-Jul-19 -0.16% 0.04% -2.31%
30-Jul-19 -0.12% -1.14% -1.22%
31-Jul-19 3.12% -1.92% 1.16%
1-Aug-19 -0.88% 2.50% -1.16%
2-Aug-19 -0.14% 0.63% -1.96%
5-Aug-19 0.29% 1.18% 1.50%
6-Aug-19 -0.21% -1.41% 0.07%
7-Aug-19 -1.63% -1.22% -2.02%
8-Aug-19 -0.14% 0.85% 0.52%
9-Aug-19 3.18% 1.90% 2.08%
13-Aug-19 -1.31% 2.88% -0.23%
14-Aug-19 0.03% 0.74% 1.78%
16-Aug-19 -0.40% -1.16% 0.10%
19-Aug-19 -1.94% -0.48% -1.10%
20-Aug-19 -0.85% 0.36% 0.03%
21-Aug-19 0.47% 0.14% -1.36%
22-Aug-119 -0.82% 0.26% -1.43%

38
 Chap 6. LIMITATIONS,
SUGGESTIONS& CONCLUSIONS

39
6.1 Limitations –

 Study is dependent on time constraint

 Stock prices of TCS,WIPRO,INFOSYS are highly volatile
 Stock prices of TCS,WIPRO,INFOSYS are highly unpredictable
 Stock prices of TCS, WIPRO and INFOSYS are also dependent on other variables.

40
6.2 Conclusion

 Infosys provided greater returns despite having an average standard deviation.

 Wipro has a higher standard deviation but providing higher negative return.
 Beta is normal and stable for all the stocks.

41
6.3 Suggestions:
By analyzing the IT industry with the help of fundamental analysis, it has been revealed
that this industry has a lot of potential to grow. So recommending investing in IT industry with
no doubt is going to be a good and smart option because this industry is booming like never
before not only in India but all over the world.
Beta of all the stocks are below 1 so IT sector is quiet safe with market volatility.
Long term investors can include these top three IT companies in his portfolio because the growth
rates and earnings are good compared to others stocks. Therefore investors can include this in
their portfolio to earn the higher return on their investment
 Short term investors should look on various support and resistance of stocks to buy or sell
and make profit.
 An investor must take research about stock of company and its previous data before
investing.
 Current ratio must be improved by company and it should be in ideal ratio 2:1 so that
there are possibilities to meet the current obligations for the company.
 Companies which are not much popular in stock market must adopt some strategies for
investors to encourage them to invest in their company.

42
6.4 Recommendation

1. Investors should not buy stocks with higher standard deviation

2. Investors should not buy stocks with higher ROI
3. Beta which is less than 1 consider as better for investors.

43
6.5 FINDING

1. The overall performance of the companies is good, and there is a continuous flow of
project business. The companies are continuing its drives for volume with a
continuous focus on profitability.
2. By analyzing the current trend of Indian Economy and IT Industry I have found that
being a developing economy there is lot of scope for growth and this industry still has
to cross many levels so there are huge opportunities to invest in.
3. Standard deviation of Wipro is higher as compared to the rest of the stocks so it is
much risky with respect to rest of the 2 stocks.
4. Infosys has the 2nd most standard deviation providing highest ROI of 10.22% the risk
factor effects Wipro with -12.01% as highest negative ROI.

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6.5 Bibliography

www.nseindia.com
www.bseindia.com
www.moneycontrol.com

45