Telecommunication

AN INDUSTRIAL EXPOSURE TRAINING REPORT ON
TELECOMMUNICATION INDUSTRY
NAME : N.NANDHINI
CLASS : III B.COM (CM)
TITLE : TELECOMMUNICATION INDUSTRY
SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 1

MODULE – 1
INTRODUCTION

INTRODUCTION:
India is currently the world’s second-largest telecommunications market with a

subscriber base of 1.20 billion and has registered strong growth in the past decade and half.
The Indian mobile economy is growing rapidly and will contribute substantially to India’s
Gross Domestic Product (GDP), according to report prepared by GSM Association (GSMA)
in collaboration with the Boston Consulting Group (BCG). App downloads in the country
grew approximately 215 per cent between 2015 and 2017.
The liberal and reformist policies of the Government of India have been instrumental
along with strong consumer demand in the rapid growth in the Indian telecom sector. The
government has enabled easy market access to telecom equipment and a fair and proactive
regulatory framework that has ensured availability of telecom services to consumer at
affordable prices. The deregulation of Foreign Direct Investment (FDI) norms has made the
sector one of the fastest growing and a top five employment opportunity generator in the
country.
The Indian telecom sector is expected to generate four million direct and indirect jobs
over the next five years according to estimates by Randstad India. The employment
opportunities are expected to be created due to combination of government’s efforts to
increase penetration in rural areas and the rapid increase in smartphone sales and rising
internet usage.
MARKET SIZE:
The mobile industry is expected to create a total economic value of Rs 14 trillion

(US$ 217.37 billion) by the year 2020. It would generate around 3 million direct job
opportunities and 2 million indirect jobs during this period@. India’s smartphone market
grew 14 per cent year-on-year to a total of 124 million shipments in 2017.%
Rise in mobile-phone penetration and decline in data costs will add 500 million new internet
users in India over the next five years, creating opportunities for new businesses. The

monthly data usage per smartphone in India is expected to increase from 3.9 GB in 2017 to
18 GB by 2023.
INVESTMENTS DEVELOPMENT:
With daily increasing subscriber base, there have been a lot of investments and
developments in the sector. The industry has attracted FDI worth US$ 30.08 billion during
the period April 2000 to December 2017, according to the data released by Department of
Industrial Policy and Promotion (DIPP).
Some of the developments in the recent past are:
 During the first quarter of 2018, India became the world’s fastest-growing market for
mobile applications.
 Finnish telecommunication company Nokia, is going to collaborate with Indian
telecom companies Bharti Airtel and BSNL to work on the roadmap for development
of 5G technology and creating a conducive ecosystem for 5G in India.
 India telecommunication companies will be investing US$ 20 billion over the next
two years for expansion of network and operations, stated Mr Akhil Gupta, Vice
Chairman, Bharti Enterprise.
GOVERNMENT INITIATIVES:
The government has fast-tracked reforms in the telecom sector and continues to be
proactive in providing room for growth for telecom companies. Some of the other major
initiatives taken by the government are as follows:
 The Government of India is soon going to come out with a new National Telecom
Policy 2018 in lieu of rapid technological advancement in the sector over the past few
years. The policy has envisaged attracting investments worth US$ 100 billion in the
sector by 2022.
 The Government of India is working to digitally connect the rural and remote regions
in the country and has decided a new affordable tariff structure with the principle of
more you use, less you pay. The changes will soon be reflected in tariff changes by
service providers in the country.

FUTURE GROWTH OF TELECOMMUNICATION INDUSTRY:
Future Growth Opportunities in The Indian Telecom Industry The Indian Telecom
Industry has been considered as an essential tool for the socioeconomic development and
for growth of GDP in the country. The Indian mobile economy is growing rapidly. The
Government had raised the FDI limit from 74% to 100% during August 2013 which has
made the telecom Analysis of the Indian Telecom Industry. It is one of the fastest growing
and a top five employment opportunity generator in the country. The increase in FDI has
been done to ensure continuous flow of investments in the industry to expand the reach of
mobile operators. The Indian Telecom industry has undergone a progressive shift from voice
services to data services, thereby creating a new direction for the future of this industry. The
Ministry of Communication and IT is planning to extend basic mobile coverage, including
voice calling, in far flung areas of eight north eastern states, creating a more inclusive
telecom network across the country. This industry is expected to provide more than 4.1
million jobs in the coming five years. Therefore, this will be favourable to professionals who
aspire to pursue their career in this industry. The Indian Government has also decided to
expand the basic telecom services in the rural areas for increasing rural tele-density in future.
The Indian Telecom industry has been growing at an average of 35% a year for close to two
decades which is beneficial to the country. The industry has touched the lives of millions of
Indians and will continue to remain a significant growth driver in the future also.
OBJECTIVES :
 To analyze the history and evolution of Indian Telecom Industry.

 To review the Government Telecom policies.
 To identify the present trends in the Indian Telecom Industry and its growth.
 To study the future growth opportunities in the Indian Telecom Industry

MODULE – 2
FUNDAMENTAL ANALYSIS

Fundamental Analysis
i) Economical Analysis – Global Economy – Regional Economy – India’s

Economy
ii) Industry Analysis – Analysis about the progress of the industry selected –
Global scenario and India’s perspective
iii) Company analysis – Analyze key ratios Ex. Debt equity ratio, Proprietary
ratio, EPS, Dividend Payout ratio, Price Earnings ratio etc.,
The fundamental analysis which includes the terms of economic analysis,
industry analysis and company analysis .Fundamental analysis, in accounting and painting,
is the analysis of a business's financial statements When applied to futures , it focuses on the
overall state of the economy, and considers factors including interest rates, production,
earnings, employment, GDP, housing, manufacturing and management. When analyzing a
stock, futures contract, or currency using fundamental analysis there are two basic approaches
one can use: bottom up analysis and top down analysis. The terms are used to distinguish
such analysis from other types of investment analysis, such as quantitative and technical.
 Economical Analysis
 Industry Analysis
 Company Analysis
A method of evaluating a security that entails attempting to measure its intrinsic

value by examining related economic, financial and other qualitative and quantitative factors.
Fundamental analysts attempt to study everything that can affect the security's value,
including macroeconomic factors.

Fundamental analysis is one of the most useful tools that investors use when
making decisions about which stocks they’re going to buy. It is a process of examining key
ratios that show the current worth of a stock and the recent performance of a company.
Fundamental analysis is used to determine the amount of money a company can make and the
kind of earnings an investor can expect. Future earnings may be subject to interpretation but
good earning histories create confidence among investors. The stock prices may increase and
the dividends may pay out. Stock market analysts determine whether a company is meeting
its expected growth by examining the earnings that are reported by the company on a regular
basis. If the company doesn’t meet its expected growth, the prices of its stocks usually
experience a downturn. There are a lot of tools that are used to determine the earnings and the
value of a company on the stock market. Most of these tools rely on the financial statements
released by the company. Details about the value of a company which include competitive
advantages and ownership ratios between the management and the outside investors can be
revealed through further fundamental analyses.
ECONOMIC ANALYSIS :
Major Milestones of The Indian Telecom Industry The Indian Telecom Industry
comprises of various segments that are an indicator of its growth and development. It is
broadly divided into two segments, Fixed Communication and Mobile Communication.
Nowadays, there is a rapid growth in the field of mobile communication as compared to fixed
communication due to an increasing demand for cellular phones . The technologies like GSM
and CDMA are adopted by the Indian Telecom Industry . Different service providers offer
both fixed as well as mobile communication while operating in various service areas of India.
Wireless Communication and Wireline Communication The Wireless Communication is the
fastest growing segment of the Indian Telecom Industry. Through the development of
wireless communication, it has become easier to transmit information between two or more
points that cannot be connected by an electrical conductor. The wireless technologies being
employed presently by the Indian Telecom Industry are Cellular (mobile) phones, Television,
Radio etc.
The private telecom operators now dominate the wireless market. However, this was
not the case in the beginning. The changes in the market structure were mainly due to the

changes in the National Telecom Policy of 1999. The Government of India is providing
benefits to private players to grow in this sector. Mobile phone communication is one of the
best known examples of wireless technology and is also known as cellular phone
communication. The major operators in the wireless field are Bharti Airtel, Vodafone,
Reliance Communications, Idea Cellular, Tata Indicom and BSNL/MTNL . The Wireline
Communication focuses mainly on landlines. Fixed telephones are facing stiff competition
from mobile phones. The fixed telephones network quality has presently improved a lot and
these phones are now available even in high density urban areas on demand. The public
telecom operators like BSNL and MTNL dominate the wireline market followed by the
private operators . India has the world’s second- largest telecom network after China in terms
of both fixed as well as mobile communication. India had a subscriber base of 999.71 million
till the end of March’15 in terms of fixed and mobile communication .
The Indian Telecom Industry comprises of both public and private sector service
providers. The public sector telecom operators occupy a major share in the wireline segment
as compared to the wireless segment. The private telecom operators dominate the wireless
market. Their share is very less in the fixed line segment. BSNL and MTNL are the two
major public sector service providers. The major private sector service providers are Bharti
Airtel, Vodafone, Reliance Communications, Idea Cellular, Tata Indicom .
As depicted in the table above, the public sector operators BSNL and MTNL have a
larger share in the wireline segment as compared to the wireless segment. BSNL’s share is
much larger in the wireline sector in comparison to MTNL because it covers whole India
whereas MTNL operates only in Delhi and Mumbai . Over the years, the wireline market
share has declined due to an increased demand for wireless phones by subscribers. Amongst
all the private sector operators, Bharti’s share is higher in the wireless as well as wireline
segment. Till March’13, the share of Idea Cellular was less in the wireless segment as
compared to Reliance Communications but its share increased at the end of March’14 and
March’15 as compared to Reliance thereby securing a higher rank . Therefore, the private
service providers namely Bharti Airtel, Vodafone, Idea, Reliance Communications and Tata
Indicom secured 1st, 2nd, 3rd, 4th and 5th rank respectively according to their market share
at the end of March’15.
GLOBAL ECONOMY:

Foreign Direct Investment has been one of the major contributors in the growth of the
Indian economy and therefore, the need for higher FDI is felt across sectors in the Indian
economy. The telecom sector has played a crucial role in attracting FDI in India. The telecom
industry of India requires huge investments for its expansion as it is capital- intensive and
FDI plays a vital role in meeting the fund requirements for its expansion. The relaxation in
FDI norms has attracted many foreign telecom majors to this industry. The presence of
foreign players has not only encouraged faster infrastructure development and up gradation
but also has opened up the telecom industry to foreign competition. The rise in FDI has also
enabled technology transfer, market access and has improved organizational skills. FDI is
also used for providing telecom services to rural areas, where teledensity is still very low .
During August 2013, the Telecom Commission raised the FDI cap from 74% to 100% in
order to encourage foreign investors to invest in the Indian Telecom industry. This has made
telecom one of the major sectors attracting FDI inflows in India. According to the data
released by the Department of Industrial Policy and Promotion (DIPP), the industry has
received FDI of US$ 16, 994.68 million from April 2000 to January 2015 which contributes
to 7% of overall FDI inflow .
INDIA’S ECONOMY:
India's telecommunication network is the second largest in the world by number of
telephone users (both fixed and mobile phone) with 1.206 billion subscribers as on 31 March
2018. It has one of the lowest call tariffs in the world enabled by mega telecom operators and
hyper-competition among them. As on 30 March 2018, India has the world's second-
largest Internet user-base with 412.60 million internet subscribers in the country.
Indian telecom industry underwent a high pace of market liberalisation and growth
since the 1990s and now has become the world's most competitive and one of the fastest
growing telecom markets. The Industry has grown over twenty times in just ten years, from
under 37 million subscribers in the year 2001 to over 846 million subscribers in the year
2011. India has the world's second-largestmobile phone user base with over 1183.41 million
users as of March 2018.
Telecommunication has supported the socioeconomic development of India and has

played a significant role to narrow down the rural-urban digital divide to some extent. It also

has helped to increase the transparency of governance with the introduction of e-
governancein India. The government has pragmatically used modern telecommunication
facilities to deliver mass education programmes for the rural folk of India.
According to London-based telecom trade body GSMA, the telecom sector accounted

for 6.5% of India's GDP in 2015, or about ₹9 lakh crore (US$130 billion), and supported
direct employment for 2.2 million people in the country. GSMA estimates that the Indian
telecom sector will contribute ₹14.5 lakh crore (US$220 billion) to the economy and support
3 million direct jobs and 2 million indirect jobs by 2020.
INDUSTRIAL ANALYSIS:
The Indian telecommunication sector has emerged as a strong growth engine for the
Indian economy in the last decade. Given the disruptive innovations and turmoil in this
industry in the last decade, the typical Porter’s Five Forces cannot be used to analyze this
industry. This article aims to study the industry using a modified Five Forces model, focusing
on every aspect from entry to the market to relationship dynamics amongst the various
stakeholders to exit options from the industry. The article contains valuable insights gathered
from primary interview of industry experts as well as data from various secondary literatures.
The Indian Telecom Industry is considered to be a vital tool for the development of
the country on the whole by contributing towards the immense growth, quick expansion and
upgradation of various sectors of the nation. This industry increases the GDP of India, earns
profit for the Indian Government and creates employment opportunities for a great number of
people. The Indian Telecom Industry is very huge consisting of companies that make
hardware and also produce software. Presently, it contributes to a revenue of USD 33, 500
million . Along with the Government owned telecom units, the Indian Telecom market has
also attracted many private operators to enter here who started offering their telecom services
as fixed communication, mobile communication and data services to the customers at the
most reasonable prices. The Government of India has adopted several measures to provide a
business friendly environment for companies in the Indian Telecom market while competing
with each other. Due to the rapid advancement in technologies, the telecom operators of India
are working actively in order to adapt themselves to the changing technology to continue

existing in the market. The Indian Telecom Industry has grown tremendously during the past
few years owing to the unprecedented growth of wireless telephony in India and
infrastructure which not only is beneficial for the telecom industry but has positive effects on
the entire economy of India . The industry has the world’s third highest number of internet
users. The Indian Telecom Industry has undergone a considerable transformation from being
a Government owned enterprise to that of a competitive environment after its liberalization in
1991. The rapid escalation in the telecom sector of India has been made possible due to the
active participation of private service providers, revenue generated through Foreign Direct
Investment (FDI), series of reforms instigated by the Government and through the adoption
of latest technologies.
COMPANY ANALYSIS:
OVERVIEW OF THE COMPANY:
 Bharti airtel
 Idea cellular
 Tata communication
 Reliance communication
 MTNL (Mahanagar telephone nigam limited)
BHARTI AIRTEL:
Bharti Airtel Limited (commonly shortened to Airtel and stylised airtel) is an

Indian global telecommunication services company based in New Delhi, India . It operates in
20 countries across South Asia and Africa. Airtel provides GSM, 3G, 4G
LTE and VoLTEmobile services, fixed line broadband and voice services depending upon the
country of operation. Airtel had also rolled out its VoLTE technology across eight telecom
circles namely Mumbai, Maharashtra and Goa, Madhya Pradesh, Chhattisgarh, Gujarat,

Andhra Pradesh & Telangana, Karnataka, Chennai, Kolkata, Kerala and Odisha in India and
should roll out the technology in rest circles by end of August 2018. It is the largest mobile
network operator in India and the third largest in the world with over 429 million
subscribers. Airtel was named India's second most valuable brand in the first ever Brandz
ranking by Millward Brown and WPP plc.
Airtel is credited with pioneering the business strategy of outsourcing all of its

business operations except marketing, sales and finance and building the 'minutes factory'
model of low cost and high volumes. The strategy has since been adopted by several
operators.Airtel's equipment is provided and maintained by Ericsson, Huawei, and Nokia
Solutions and Networks whereas IT support is provided by IBM. The transmission towers are
maintained by subsidiaries and joint venture companies of Bharti including Bharti
Infratel and Indus Towers in India.Ericsson agreed for the first time to be paid by the minute
for installation and maintenance of their equipment rather than being paid up front, which
allowed Airtel to provide low call rates of ₹1 (1.5¢ US)/minute.
In 1984, Sunil Mittal started assembling push-button phones in India, which he earlier

used to import from a Taiwan company, Kingtel, replacing the old fashioned, bulky rotary
phones that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated
and entered into a technical tie up with Siemens AG of Germany for manufacture of
electronic push button phones. By the early 1990s, Bharti was making fax machines, cordless
phones and other telecom gear. He named his first push-button phones as 'Mitbrau'.
In 1992, he successfully bid for one of the four mobile phone network licences
auctioned in India. One of the conditions for the Delhi cellular license was that the bidder
have some experience as a telecom operator. So, Mittal clinched a deal with the French
telecom group Vivendi. He was one of the first Indian entrepreneurs to identify the mobile
telecom business as a major growth area. His plans were finally approved by the Government
in 1994 and he launched services in Delhi in 1995, when Bharti Cellular Limited (BCL) was
formed to offer cellular services under the brand name AirTel. Within a few years Bharti
became the first telecom company to cross the 2 million mobile subscriber mark. Bharti also
brought down the STD/ISD cellular rates in India under brand name 'Indiaone'.
In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular

operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell

Communications, in Chennai. In 2001, the company acquired control of Spice Cell

in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay
Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone
operations were re-branded under the single Airtel brand. In 2004, Bharti acquired control of
Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and
Nicobar. This expansion allowed it to offer voice services all across India.
Airtel launched "Hello Tunes", a caller ring back tone service (CRBT), in July 2004
becoming to the first operator in India to do so. The Airtel theme song, composed by A.R.
Rahman, was the most popular tune in that year.
In May 2008, it emerged that Airtel was exploring the possibility of buying the MTN
Group, a South Africa-based telecommunications company with coverage in 21 countries in
Africa and the Middle East. The Financial Times reported that Bharti was considering
offering US$45 billion for a 100% stake in MTN, which would be the largest overseas
acquisition ever by an Indian firm. However, both sides emphasise the tentative nature of the
talks, while The Economist magazine noted, "If anything, Bharti would be marrying up," as
MTN has more subscribers, higher revenues and broader geographic coverage. However, the
talks fell apart as MTN Group tried to reverse the negotiations by making Bharti almost a
subsidiary of the new company. In May 2009, Bharti Airtel again confirmed that it was in
talks with MTN and the companies agreed to discuss the potential transaction exclusively by
31 July 2009. Talks eventually ended without agreement, some sources stating that this was
due to opposition from the South African government.
In 2009, Bharti negotiated for its strategic partner Alcatel-Lucent to manage the

network infrastructure for the fixed line business. Later, Bharti Airtel awarded the three-year
contract to Alcatel-Lucent for setting up an Internet Protocol access network across the
country. This would help consumers access internet at faster speed and high quality internet
browsing on mobile handsets.
In 2009, Airtel launched its first international mobile network in Sri Lanka. In June
2010, Bhartil acquired the African business of Zain Telecom for $10.7 billion making it the
largest ever acquisition by an Indian telecom firm. In 2012, Bharti tied up with Wal-Mart, the
US retail giant, to start a number of retail stores across India. In 2014, Bharti planned to
acquire Loop Mobile for ₹7 billion (US$100 million), but the deal was called off later.

Bharti Airtel Limited ("Airtel"), the world's third largest mobile operator with
operations in 20 countries across Asia and Africa, said that its Treasury division has been
adjudged as a highly commended winner of the Top Treasury Team (Asia) Awards at the
Adam Smith Asia Awards 2015.
IDEA CELLULAR:
Idea Cellular (commonly referred to as simply Idea, and stylised as !dea) is an

Indian mobile network operator based at Mumbai, Maharashtra.Idea is a pan-India integrated
GSM operator offering 2G, 3G and 4G mobile services. Idea is India’s largest mobile
operator along with merged entity Vodafone by subscriber base (List of mobile network
operators of India). Idea has 202.06 million subscribers as of 28 February 2017.
Idea Cellular started its journey in 1995 as Birla Communications Limited with GSM
licenses in Gujarat and Maharashtra circles.In 1996 it changed name to Birla AT&T
Communications Limited following joint venture between Grasim Industries and AT&T
Corporation. In 2001 it changed name to Birla Tata AT&T as a joint venture between Aditya
Birla Group, Tata Group and AT&T Wireless. The company named its brand Idea in
2002. Following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided
to sell its 32.9% stake in Idea. This stake was bought by the remaining two stakeholders
equally. Tata forayed into the cellular market with its own subsidiary, Tata Indicom,
a CDMA-based mobile provider and in April 2006, Aditya Birla Group announced the
acquisition of the 48.18% stake held by Tata Group at INR 40.51 a share amounting to INR

44.06 billion with 15% of the stake acquired by Aditya Birla Nuvo and the remaining by
Birla TMT holdings Private Ltd. both AV Birla family owned companies. Malaysia
based Axiata bought a 19.96% stake in the company in 2009.
On 20 March 2017, Idea and Vodafone India announced that their respective boards

had approved a merger of the two companies. The merger will not include Vodafone's 42%
stake in Indus Towers Ltd. The merger will create the largest telecom company in India by
subscribers and by revenue. Under the terms of the deal, the Vodafone will hold a 45.1%
stake in the combined entity, the Aditya Birla Group will hold 26% and the remaining shares
will be held by the public. The merger is expected to be completed by March 2019, and the
newly merged entity will be named as Vodafone - idea.
TATA COMMUNICATION:
TataCommunications formerly called VSNL is a global provider

of telecommunications solutions and services. It is part of the Tata Group.
Beginning as a wholesale service provider focused on India, it has grown to be one of the
largest telecommunications service providers in the world. Tata Communications’ customers
include over 2,000 service providers and enterprises in 240 countries, including many of the
world’s largest corporations.
Its telecommunications network spans the globe and includes more than 500,000 km of
subsea fibre and more than 210,000 km of terrestrial fibre. The company has invested $1.19
billion in its global subsea fibre network.

Tata Communications uses its network to deliver network services and software-defined
network platforms, such as Ethernet, SD-WAN, Content delivery
network (CDN), Internet, Multiprotocol Label Switching (MPLS) and Private Line. It has
more than 400 Points of Presence (POP) globally with data centre and colocation in 44 sites.
In 2016, Tata Communications had a revenue of $3.2 billion, with 77% of its revenue being
generated outside India. The company has over 8,000 employees from 40 nationalities.
Tata Communications is the Official Connectivity Provider for Formula 1 and MotoGP.

Since 2012, the company has provided Web Hosting and Content Delivery Network Provider
for formula1.com.
Tata Communications Limited is headquartered in Pune and Singapore and is listed on

the Bombay Stock Exchange and the National Stock Exchange of India. The company itself
also holds a stake in Tata Communications Lanka Limited in Sri Lanka and Tata Teleservices
Limited, one of the largest mobile service providers in India.
The company is listed as one of AON Hewitt's Best Employers in India for 2017.
The company was founded as Videsh Sanchar Nigam Limited (VSNL) in 1986. In 2002, after
the Government of India decided to divest its shareholding, Tata Group acquired a 45% stake
in VSNL. The international arm of VSNL, VSNL International, was launched in 2004.
VSNL was completely acquired by the Tata Group and renamed as Tata Communications
Limited on 13 February 2008.
Tata Communications Limited is listed on the Bombay Stock Exchange and the National

Stock Exchange of India.

RELIANCE COMMUNICATION:
Reliance Communications Ltd. (stylised as RCom) is

a telecommunications company headquartered in Navi Mumbai, India. It is
a subsidiary of Reliance Anil Dhirubhai Ambani Group. The services it provides include
GSM (Voice; 2G, 3G, 4G), fixed line broadband and voice, and Direct-To-Home (DTH),
depending upon its areas of operation in India. The company had to shut down
its 2G and 3Gservices including all voice services and only offer 4G data services from
December 29, 2017, as a result of debt and a failed merger with Aircel.
RCom had in November 2017, shut its wireless business. In December, it inked a pact
to sell its wireless assets to Reliance Jio Infocomm in an all-cash deal, pegged at Rs 24,000
crore by market circles. This would help pare its debt, which stands at about Rs 45,000 crore.
Reliance Communications Limited was established in India in 2002, with the launch

of its CDMA services nationwide. It upgraded to CDMA Revision B services in 2015 in
locations where it did not provide 3G services. In 2008, Reliance Communications launched
its GSM services. The company started using MIMO technology in 2011 to improve the
quality of its 3G services, providing a data rate of up to 28 Mbit/s.
In the 2010 spectrum auction, the company obtained 3G spectrum in 13

circles Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, West Bengal, Himachal
Pradesh, Bihar, Odisha, Assam, North East, and Jammu & Kashmir at a licensing fee
of ₹ 58,642.9 million.
Reliance Communications reduced the prices of its 3G services by 61% in May 2012.
RCom partnered with Lenovo to launch their co-branded Android smartphones in

India in 2013.
RCom shut down its CDMA operations in 2016 and migrated the subscribers to GSM
and LTE networks by September 2016.

MTNL:
Mahanagar Telephone Nigam Limited (MTNL) is a state-

owned telecommunications service provider in the metro cities of Mumbaiand New
Delhi in India and in the island nation of Mauritius in Africa. The company had
a monopoly in Mumbai and New Delhi until 1992, when the telecom sector was opened to
other service providers. "Transparency makes us different" is the motto of the company.
The Government of India currently holds 57% stock in the company with the rest being held
by public and institutional investors. The company's shares are listed on Bombay Stock
Exchange, Global depository receipts on London Stock Exchange and American depository
receipts on New York Stock Exchange. As of December 2017, it has 3.58 million subscribers.
Mahanagar Telephone Nigam Limited (MTNL) is a state-

owned telecommunications service provider in the metro cities of Mumbaiand New
Delhi in India and in the island nation of Mauritius in Africa. The company had
a monopoly in Mumbai and New Delhi until 1992, when the telecom sector was opened to
other service providers. "Transparency makes us different" is the motto of the company.
The Government of India currently holds 57% stock in the company with the rest being held
by public and institutional investors. The company's shares are listed on Bombay Stock

Exchange, Global depository receipts on London Stock Exchange and American depository

receipts on New York Stock Exchange. As of December 2017, it has 3.58 million subscribers.
The company's name derives from Hindi: mahanagar meaning "metropolis"

(maha "big", nagar "city") and nigam meaning "corporation".
Bombay Telephone was founded in 1882. The first telephone exchange in Mumbai
began operations on 28 January 1882.Delhi's first telephone system was established in
1911. Mahanagar Telephone Nigam was created by the Government of India in 1986 to
oversee the telephone services of Delhi and Mumbai.
Mahanagar Telephone Nigam Limited (MTNL) was set up in 1st April of the year
1986 by the Government of India to upgrade the quality of telecom services, expand the
telecom network, introduce new services and to raise revenue for telecom development needs
of India's key metros, Delhi (the political capital) and Mumbai (the business capital of India).
The company has also been in the forefront of technology induction by converting 100% of
its telephone exchange network into the state-of-the-art digital mode. MTNL as a company,
over last nineteen years, grew rapidly by modernising the network, incorporating the State-of-
the-art technologies and a customer friendly approach.
The Company providing various types of telecommunication services including
Telephone, telex, wireless, data communication, telematic and other like forms of
communication (Internet). First digital exchange world technology brought to India by the
company during the year 1986. In the year of 1987, Largle Scale came to existence,
introduction of push button telephone made dialling easier. Phone Plus services was offered
by the company in the year 1988, it gives multiplied benefits to telephone users. During the
year 1992, the company introduced Voice Mail Service. MTNL had introduced the Integrated
Services Digital Network (ISDN) services in the period of 1996.
To facilitate the clientele, MTNL launched the country's first toll-free service in Delhi
in the period of 1998. During the year 1999, MTNL brought in the most widely using service
called Internet (Network of Networks), the extreme level of information exchange.
Millennium Telecom Limited, a wholly owned subsidiary of MTNL was formed in 17th
February of the year 2000 to do practically any type of Telecom Business with a focus on
value added services, which was started its operation in Himachal Pradesh in association with
HPSEDC from 25th Feb 2002 itself. During the year 2001, the company launched GSM

Cellular Mobile service under the brand name Dolphin and in the same year MTNL also
launched Wireless in Local Loop (WLL) Mobile services under the brand name Garuda.
MTNL has formed a Joint Venture company in Nepal by the name of United Telecom Ltd.
(UTL) in collaboration with Telecom Consultants India Limited (TCIL), Videsh Sanchar
Nigam Limited (VSNL) and NVPL (Nepal Ventures Pvt. Ltd., a Nepalese Company). The
Company is operational since 10th October 2001 for providing WLL based basic services in
Nepal. CLI based Internet express service was added with the service line of the company in
the period of 2001. The Company made tied up with Billjunction.com in the year of 2001 to
provide online bill presenting and payment facility to its customers.
The Company launched pre-paid GSM Mobile services under the brand name Trump
during the year 2002, and in the same year MTNL's Email on PSTN lines were introduced
under the brand name mtnlmail. MTNL had set up a new software venture called ComSoft
for developing communications software in the year 2002, as a part of its strategy to offer
value-added communications software in e-commerce, e-governance and intelligent
networking. The Company brought in to market, the CDMA 1x 2000 Technology under the
brand name Garuda 1-x in the year of 2003.
MTML has already started its ILD & CDMA based basic services in Mauritius. In
Mauritius against the switching capacity of 50K, 8K telephone connections are working. The
Company established Wi-Fi & digital certification services in the identical year. MTNL
bagged the award for excellence in cost reduction in the year 2004. State of the art training
centre of the company 'CETTM' was commissioned in the year of 2004. The Company
introduced the broadband services under the brand name of 'TRI BAND' during the year
2005. The Company made partnership with Red Hat through its CETTM centre in the same
year of 2005.
To remain market leader in providing world class Telecom and IT related services at
affordable prices, the company partaking its all efforts in the same business area and MTNL
wants to become a global player, also find a place in the `Fortune 500' companies.

Key Financial Ratios of Bharti Airtel
Mar '17 Mar '16 Mar '15 Mar '14

Investment Valuation Ratios
Face Value 5.00 5.00 5.00 5.00
Dividend Per Share 1.00 2.22 3.85 1.80
Operating Profit Per Share (Rs) 59.27 55.81 48.61 40.77
Net Operating Profit Per Share (Rs) 155.79 150.85 138.83 124.88
Free Reserves Per Share (Rs) -- -- -- --
Bonus in Equity Capital 78.37 78.37 78.37 78.37
Profitability Ratios
Operating Profit Margin(%) 38.04 37.00 35.01 32.65
Profit Before Interest And Tax Margin(%) 18.39 21.06 19.56 17.85
Gross Profit Margin(%) 18.44 21.12 21.39 18.16
Cash Profit Margin(%) 31.29 29.82 34.20 27.65
Adjusted Cash Margin(%) 31.29 29.82 34.20 27.65
Net Profit Margin(%) -15.93 12.90 23.78 13.22
Adjusted Net Profit Margin(%) -15.89 12.86 21.75 12.99
Return On Capital Employed(%) 7.38 8.38 17.32 13.18
Return On Net Worth(%) -9.80 6.96 16.86 9.89
Adjusted Return on Net Worth(%) 7.25 7.57 16.86 10.20
Return on Assets Excluding Revaluations 253.18 279.50 195.80 166.92
Return on Assets Including Revaluations 253.18 279.50 195.81 166.93
Return on Long Term Funds(%) 7.70 8.42 17.43 13.40
Liquidity And Solvency Ratios
Current Ratio 0.60 0.61 0.73 0.93
Quick Ratio 0.70 0.55 0.75 0.98

Debt Equity Ratio 0.56 0.38 0.26 0.13
Long Term Debt Equity Ratio 0.50 0.37 0.25 0.11
Debt Coverage Ratios
Interest Cover 4.01 6.54 12.11 7.42
Total Debt to Owners Fund 0.56 0.38 0.26 0.13
Financial Charges Coverage Ratio 8.20 11.39 17.48 12.83
Financial Charges Coverage Ratio Post

1.78 9.79 15.73 11.35
Tax
Management Efficiency Ratios
15,968.2
Inventory Turnover Ratio 11,377.42 5,903.87 45,380.45
8
Debtors Turnover Ratio 17.78 18.60 20.27 22.63
15,968.2
Investments Turnover Ratio 11,377.42 5,903.87 45,380.45
8
Fixed Assets Turnover Ratio 0.69 0.79 0.85 0.86
Total Assets Turnover Ratio 0.83 0.65 0.78 0.84
Asset Turnover Ratio 0.44 0.48 0.64 0.70
Average Raw Material Holding -- -- -- --
Average Finished Goods Held -- -- -- --
Number of Days In Working Capital -108.55 -114.98 -58.40 -17.92
Profit & Loss Account Ratios
Material Cost Composition -- -- 0.12 0.04
Imported Composition of Raw Materials

-- -- -- --
Consumed
Selling Distribution Cost Composition 1.15 1.24 -- --

Expenses as Composition of Total Sales 7.87 -- 6.71 7.01
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit -- 11.40 11.65 10.90
Dividend Payout Ratio Cash Profit 17.54 5.11 7.41 5.20
Earning Retention Ratio 94.56 89.52 88.35 89.44
Cash Earning Retention Ratio 97.96 95.09 92.59 94.88
AdjustedCash Flow Times 2.91 2.34 0.98 0.61
Key Financial Ratios of Idea

Cellular
Mar'1
Mar '16 Mar '15 Mar '14
7
Face Value 10.00 10.00 10.00 10.00
Dividend Per Share -- 0.60 0.60 0.40
Bonus in Equity Capital -- -- -- --

Net Profit Margin(%) -2.35 7.39 8.98 6.46
Adjusted Net Profit Margin(%) -2.34 7.35 8.85 6.45
Return On Net Worth(%) -3.50 10.68 12.83 10.83
Adjusted Return on Net Worth(%) -3.50 10.68 12.83 10.83
Current Ratio 0.29 0.26 0.39 0.42
Quick Ratio 0.28 0.31 0.39 0.46
Interest Cover 0.65 3.29 5.66 5.17

2.71 5.99 9.23 10.26
Tax
Inventory Turnover Ratio 650.78 420.50 536.54 535.73

Investments Turnover Ratio 650.78 420.50 536.54 535.73
Number of Days In Working Capital -179.40 -123.55 -121.98 -58.44
Material Cost Composition -- -- -- --

-- -- -- --
Consumed
Dividend Payout Ratio Net Profit -- 8.16 8.07 7.86
Dividend Payout Ratio Cash Profit -- 2.43 2.96 2.29

Key Financial Ratios of Tata

Communications
Mar'1
Mar '16 Mar '15 Mar '14
7
Face Value 10.00 10.00 10.00 10.00
Dividend Per Share 6.00 4.30 5.50 4.50
Bonus in Equity Capital 73.68 73.68 73.68 73.68

Net Profit Margin(%) 13.61 8.19 15.61 12.39
Adjusted Net Profit Margin(%) 13.65 7.85 13.51 11.20
Return On Net Worth(%) 7.45 4.41 8.07 6.87
Adjusted Return on Net Worth(%) -1.44 4.66 7.49 5.84
Current Ratio 0.88 1.06 0.99 1.33
Quick Ratio 1.01 1.24 1.06 1.45
Interest Cover 13.42 21.05 38.79 13.13

48.41 37.28 56.19 21.55
Tax
Inventory Turnover Ratio 341.75 749.66 1,093.51 1,054.55
Investments Turnover Ratio 341.75 749.66 1,093.51 1,054.55

Number of Days In Working Capital -29.20 -101.87 12.37 97.24
Material Cost Composition -- -- 0.47 0.40
Imported Composition of Raw Material -- -- -- --

Consumed
Dividend Payout Ratio Net Profit 21.38 50.70 23.23 23.64
Dividend Payout Ratio Cash Profit 10.14 17.53 11.24 10.48

Key Financial Ratios of Reliance

Communications
Mar'1
Mar '16 Mar '15 Mar '14
7
Face Value 5.00 5.00 5.00 5.00
Dividend Per Share -- -- -- --
Profit Before Interest And Tax Margin(%) -19.41 0.97 -2.55 -1.85
Gross Profit Margin(%) -20.14 1.01 -2.62 -2.06
Cash Profit Margin(%) 1.92 15.85 -10.62 22.32
Adjusted Cash Margin(%) 1.92 15.85 -10.62 22.32

Net Profit Margin(%) -20.35 -3.79 -1.42 6.53
Adjusted Net Profit Margin(%) -19.61 -3.67 -1.38 5.86
Return On Capital Employed(%) -2.85 0.76 0.08 1.68
Return On Net Worth(%) -7.45 -1.38 -0.42 2.32
Adjusted Return on Net Worth(%) -7.45 -1.38 -8.70 2.32
Return on Long Term Funds(%) -3.38 0.81 0.08 1.91
Current Ratio 0.67 0.75 1.48 0.72
Quick Ratio 0.81 0.88 1.61 1.23
Interest Cover -0.60 0.21 0.03 0.58

1.07 1.80 2.06 2.55
Tax


-- -- -- --
Consumed
Selling Distribution Cost Composition -- -- -- --
Expenses as Composition of Total Sales 18.73 14.95 14.47 11.39
Dividend Payout Ratio Net Profit -- -- -- --
Dividend Payout Ratio Cash Profit -- -- -- --
Earning Retention Ratio 100.00 100.00 -- 100.00
Cash Earning Retention Ratio 100.00 100.00 -- 100.00
AdjustedCash Flow Times 150.89 17.12 -- 10.84

Key Financial Ratios of Mahanagar

Telephone Nigam
Mar'1
Mar '16 Mar '15 Mar '14
7
Face Value 10.00 10.00 10.00 10.00
Dividend Per Share -- -- -- --
Operating Profit Per Share (Rs) -17.34 -13.05 -11.51 -14.65
Operating Profit Margin(%) -38.05 -26.31 -21.32 -27.20
Profit Before Interest And Tax Margin(%) -61.35 -53.43 -49.29 -55.14
Gross Profit Margin(%) -75.95 -63.17 -55.40 -61.57
Cash Profit Margin(%) -52.17 -30.10 -45.63 -63.75
Adjusted Cash Margin(%) -52.17 -30.10 -45.63 -63.75
Net Profit Margin(%) -102.48 -62.34 -85.09 230.71
Adjusted Net Profit Margin(%) -82.78 -52.73 -75.72 206.61
Return On Capital Employed(%) -12.95 -11.61 -7.83 -8.83

Return On Net Worth(%) 87.35 491.64 -139.95 155.23
Adjusted Return on Net Worth(%) -- -- -140.38 -71.02
Return on Assets Excluding Revaluations -53.44 -6.29 32.82 80.01
Return on Assets Including Revaluations -53.44 -6.29 32.82 80.01
Return on Long Term Funds(%) -41.07 -33.70 -12.11 -12.87
Current Ratio 0.61 0.61 1.09 1.09
Quick Ratio 1.41 1.35 1.96 1.88
Debt Equity Ratio -- 1,347.83 8.03 2.80
Long Term Debt Equity Ratio -- 718.97 4.84 1.61
Interest Cover -1.03 -1.04 -1.02 -1.22
Total Debt to Owners Fund -- -- 8.03 2.80
Financial Charges Coverage Ratio -0.28 -0.19 -0.21 -0.38

-0.28 0.41 -0.21 7.47
Tax


-- -- -- --
Consumed
Expenses as Composition of Total Sales 0.13 0.13 0.16 0.25
Dividend Payout Ratio Net Profit -- -- -- --
Dividend Payout Ratio Cash Profit -- -- -- --
Earning Retention Ratio 100.00 100.00 -- 100.00
Cash Earning Retention Ratio -- -- -- --
AdjustedCash Flow Times -- -- -- --

MODULE – 3
INTRINSIC PRICE OF EQUITY

INTRINSIC VALUE OF EQUITY
The intrinsic value is the actual value of a company or an asset based on an

underlying perception of its true value including all aspects of the business, in terms of both
tangible and intangible factors. This value may or may not be the same as the current
marketvalue. Additionally, intrinsic value is primarily used in options pricing to indicate the
amount an option is in the money.
Value investors who follow fundamental analysis typically look at both

qualitative (business model, governance and target market factors) and quantitative (ratios
and financial statement analysis) aspects of a business to see if the business is currently out of
favor with the market and is really worth much more than its current valuation. The
discounted cash flow model is one commonly used valuation method used to determine a
company's intrinsic value. The discounted cash flow model takes into account a company's
free cash flow and weighted average cost of capital, which accounts for the time value of
money.
There is a significant difference between intrinsic value and market value.

Intrinsic value is an estimate of the actual true value of a company. Market value is
the value of a company as reflected by the company's stock price. Therefore, market
value may be significantly higher or lower than the intrinsic value.
There is an inherent degree of difficulty in arriving at a company's intrinsic

value. Due to all the possible variables involved, such as the value of the company's
intangible assets, estimates of the genuine value of a company can vary greatly between
analysts. Some analysts utilize discounted cash flow analysis to include future earnings
in the calculation, while others look purely at the current liquidation value or book
value as shown on the company's most recent balance sheet. Further difficulty arises from
the fact that the balance sheet itself, since it is an internally produced company document,
may not be a completely accurate representation of assets and liabilities.
Market value is the company's value calculated from its current stock price and rarely
reflects the actual current value of a company. The reason for this is that the market
value reflects supply and demand in the investing market, how eager (or not) investors
are to participate in the company's future.

The market value is usually higher than the intrinsic value if there is strong
investment demand, leading to possible overvaluation. The opposite is true if there is weak
investment demand, which can result in undervaluation of the company.
BHARTI AIRTEL:
% *
No. No.
Total Deliverab Deli. Spread
Ope Hig Lo Clos WA of of
Date Turnov le Qty to
n h w e P Share Trade H C-
er Quantity Trade
s s -L O
d Qty
12,17,10,55
2/04/18 401.40 403.00 390.60 394.45 394.70 3,08,361 4,784 57,210 18.55 12.40 -6.95
9
15,30,38,25
3/04/18 393.50 402.60 391.15 401.65 398.00 3,84,516 2,829 37,267 9.69 11.45 8.15
6
-
4/04/18 405.00 407.00 393.25 394.50 398.49 1,70,089 2,449 6,77,78,265 30,679 18.04 13.75
10.50
12,78,39,84
5/04/18 401.90 401.90 391.25 393.95 394.49 3,24,065 4,262 94,020 29.01 10.65 -7.95
5
12,54,57,05
6/04/18 394.00 396.55 383.10 385.40 387.43 3,23,817 3,933 60,447 18.67 13.45 -8.60
3
15,53,45,50
9/04/18 383.90 386.90 376.80 380.75 381.43 4,07,275 4,126 68,747 16.88 10.10 -3.15
7
10/04/1 14,98,86,70
380.75 386.55 374.60 385.55 379.98 3,94,459 3,856 82,441 20.90 11.95 4.80
8 4
11/04/1 11,94,55,82
386.20 391.10 383.55 384.55 386.80 3,08,833 3,265 75,936 24.59 7.55 -1.65
8 1
12/04/1
384.05 386.00 379.25 380.10 381.14 1,42,360 1,671 5,42,58,575 33,937 23.84 6.75 -3.95
8
13/04/1 43,61,13,54
381.25 386.05 376.35 377.80 380.07 11,47,463 1,923 10,14,151 88.38 9.70 -3.45
8 4
16/04/1 21,01,45,88
376.30 380.50 375.00 377.20 377.05 5,57,339 1,363 12,986 2.33 5.50 0.90
8 2
17/04/1
377.20 382.90 374.80 381.30 378.64 1,22,514 1,617 4,63,88,462 15,892 12.97 8.10 4.10
8
18/04/1 10,31,53,56
383.80 391.75 382.00 384.80 386.63 2,66,803 4,447 73,323 27.48 9.75 1.00
8 7
19/04/1
385.50 396.80 385.50 394.95 391.27 1,71,701 2,657 6,71,81,741 45,851 26.70 11.30 9.45
8
20/04/1
394.90 402.90 391.55 400.75 398.47 2,06,033 2,791 8,20,98,386 25,262 12.26 11.35 5.85
8
23/04/1 13,00,75,16
398.50 406.10 397.35 403.65 402.28 3,23,345 2,058 1,68,434 52.09 8.75 5.15
8 4
24/04/1 25,99,28,34
403.50 408.50 396.60 406.10 401.38 6,47,593 4,592 2,98,721 46.13 11.90 2.60
8 4
25/04/1 39,54,28,09
414.00 427.00 412.15 419.80 420.26 9,40,909 9,924 88,562 9.41 14.85 5.80
8 9
26/04/1 11,41,31,34 -
424.00 424.00 405.00 408.85 413.04 2,76,319 3,050 50,359 18.22 19.00
8 1 15.15
27/04/1
408.00 415.85 401.05 408.95 407.28 2,39,878 3,242 9,76,98,176 31,422 13.10 14.80 0.95
8
30/04/1 408.95 412.70 404.40 409.55 409.48 1,52,859 3,752 6,25,92,771 47,703 31.21 8.30 0.60

8
2/05/18 411.00 412.00 406.00 408.00 408.01 1,57,149 1,679 6,41,19,148 18,626 11.85 6.00 -3.00
3/05/18 408.00 408.00 399.55 404.40 403.84 93,206 1,811 3,76,40,509 19,994 21.45 8.45 -3.60
23,33,72,79 -
4/05/18 411.00 418.25 394.00 396.60 405.33 5,75,765 6,562 1,21,990 21.19 24.25
5 14.40
7/05/18 400.50 404.50 395.90 398.00 399.71 1,85,692 2,357 7,42,23,608 26,542 14.29 8.60 -2.50
8/05/18 398.50 402.75 397.15 400.75 400.29 1,33,069 1,501 5,32,66,285 19,443 14.61 5.60 2.25
IDEA CELLULAR:
% *
No. No.
Date Turnove le Qty to C
n h w e P Share Trade H
r Quantity Trade -
s s -L
d Qty O
2/04/18 78.25 78.25 75.65 77.60 76.90 6,51,341 1,818 5,00,86,637 54,195 8.32 2.60 -0.65
3/04/18 77.00 78.00 76.50 77.45 77.56 12,24,670 1,353 9,49,86,943 8,09,498 66.10 1.50 0.45
4/04/18 77.60 78.40 75.65 76.55 76.72 12,47,730 2,310 9,57,22,463 4,45,396 35.70 2.75 -1.05
5/04/18 76.60 77.80 76.10 77.00 76.90 3,39,440 1,129 2,61,04,228 54,576 16.08 1.70 0.40
6/04/18 76.65 78.00 74.70 74.90 75.48 8,86,492 2,602 6,69,16,602 2,99,002 33.73 3.30 -1.75
9/04/18 74.25 75.20 73.50 74.90 74.50 9,36,411 2,260 6,97,67,231 1,87,005 19.97 1.70 0.65
10/04/1
75.00 75.50 73.55 73.95 74.17 6,08,856 2,247 4,51,57,050 1,43,800 23.62 1.95 -1.05
8
11/04/1
74.15 75.20 73.30 73.95 74.35 6,72,960 1,866 5,00,33,729 1,61,861 24.05 1.90 -0.20
8
12/04/1
74.90 74.90 72.15 73.05 73.09 7,13,165 2,003 5,21,23,681 2,22,354 31.18 2.75 -1.85
8
13/04/1
73.00 74.30 72.00 72.20 72.88 7,67,630 2,214 5,59,46,396 1,64,254 21.40 2.30 -0.80
8
16/04/1
72.00 72.00 70.75 71.25 71.20 57,53,962 2,026 40,96,63,351 51,38,534 89.30 1.25 -0.75
8
17/04/1 4,38,72,40 3,13,84,44,5
71.80 74.05 71.20 71.40 71.54 4,806 2,76,758 0.63 2.85 -0.40
8 0 07
18/04/1
72.00 72.50 71.15 71.65 71.60 74,11,780 2,299 53,07,17,020 66,08,113 89.16 1.35 -0.35
8
19/04/1
72.00 72.00 70.15 71.10 70.96 5,64,224 1,527 4,00,37,129 1,33,812 23.72 1.85 -0.90
8
20/04/1
71.10 71.90 70.30 70.80 71.05 5,91,585 1,494 4,20,30,916 83,025 14.03 1.60 -0.30
8
23/04/1
71.00 72.30 70.50 71.65 71.78 33,90,177 1,914 24,33,34,307 26,97,090 79.56 1.80 0.65
8
24/04/1
71.10 71.55 70.20 71.10 70.92 8,17,363 1,858 5,79,64,354 1,46,222 17.89 1.35 0.00
8
25/04/1
71.90 72.75 70.85 71.35 71.62 7,42,046 2,216 5,31,45,957 1,12,014 15.10 1.90 -0.55
8
26/04/1
71.35 71.80 67.60 68.35 69.17 11,58,782 3,775 8,01,50,213 2,87,588 24.82 4.20 -3.00
8

27/04/1
69.05 70.15 68.50 68.80 69.38 6,50,427 1,864 4,51,24,376 2,16,047 33.22 1.65 -0.25
8
30/04/1
72.00 72.00 68.20 69.05 69.47 11,42,514 4,191 7,93,69,683 2,36,435 20.69 3.80 -2.95
8
2/05/18 69.10 69.40 66.60 67.20 67.68 6,68,446 1,743 4,52,37,115 1,71,797 25.70 2.80 -1.90
3/05/18 67.40 67.40 63.55 63.90 64.76 8,99,048 2,905 5,82,25,549 2,45,123 27.26 3.85 -3.50
4/05/18 64.00 64.65 61.45 62.50 62.97 14,07,241 4,387 8,86,07,827 6,18,466 43.95 3.20 -1.50
7/05/18 62.90 63.40 62.15 62.45 62.68 6,97,648 2,165 4,37,28,557 1,69,454 24.29 1.25 -0.45
8/05/18 62.70 62.80 60.10 61.25 61.16 14,83,144 2,892 9,07,04,876 6,59,665 44.48 2.70 -1.45
TATA COMMUNICATION:
% *
No. No.
er Quantity Trade
s s -L O
d Qty
2/04/18 623.55 641.70 620.55 636.15 634.00 13,160 368 83,43,397 3,242 24.64 21.15 12.60
3/04/18 637.45 655.15 636.70 651.70 651.88 24,781 687 1,61,54,282 6,908 27.88 18.45 14.25
-
4/04/18 653.60 661.90 635.15 639.05 649.34 17,978 573 1,16,73,816 2,232 12.42 26.75
14.55
5/04/18 650.00 660.60 648.10 655.80 654.22 9,325 404 61,00,636 2,400 25.74 12.50 5.80
6/04/18 651.10 659.00 649.40 656.05 654.75 5,637 169 36,90,814 2,405 42.66 9.60 4.95
9/04/18 657.00 670.90 654.85 660.45 664.85 16,398 474 1,09,02,264 3,276 19.98 16.05 3.45
10/04/1
662.95 664.20 643.75 653.70 655.36 14,739 567 96,59,301 4,875 33.08 20.45 -9.25
8
11/04/1
654.05 660.90 649.70 659.70 657.03 11,255 273 73,94,908 6,463 57.42 11.20 5.65
8
12/04/1 -
653.05 659.35 633.85 636.55 642.63 13,605 544 87,43,005 5,289 38.88 25.50
8 16.50
13/04/1 -
650.00 650.00 629.50 634.55 634.84 21,657 572 1,37,48,733 10,047 46.39 20.50
8 15.45
16/04/1 -
634.65 634.65 615.00 620.60 620.54 24,930 732 1,54,70,070 9,713 38.96 19.65
8 14.05
17/04/1
615.00 627.70 615.00 623.15 623.22 10,727 325 66,85,313 2,584 24.09 12.70 8.15
8
18/04/1
620.50 628.60 618.20 621.35 620.85 8,684 292 53,91,491 3,143 36.19 10.40 0.85
8
19/04/1
615.00 625.50 615.00 621.20 619.25 8,296 244 51,37,270 3,679 44.35 10.50 6.20
8
20/04/1 625.50 633.25 622.00 628.25 628.63 12,956 417 81,44,497 3,556 27.45 11.25 2.75

8
23/04/1
628.40 638.75 625.70 631.65 632.53 11,194 334 70,80,593 3,446 30.78 13.05 3.25
8
24/04/1
631.30 637.00 627.50 631.05 630.78 13,919 324 87,79,797 5,548 39.86 9.50 -0.25
8
25/04/1
628.45 633.00 625.15 626.50 629.50 12,434 390 78,27,142 4,614 37.11 7.85 -1.95
8
26/04/1
625.00 630.00 616.65 619.55 621.66 9,212 238 57,26,762 4,773 51.81 13.35 -5.45
8
27/04/1
616.15 625.00 616.15 620.70 621.90 4,697 153 29,21,060 1,154 24.57 8.85 4.55
8
30/04/1 92,22,75,13
625.35 628.00 615.00 621.95 616.16 14,96,803 2,785 12,00,862 80.23 13.00 -3.40
8 9
2/05/18 614.50 634.55 614.50 629.45 630.46 76,597 1,091 4,82,91,040 13,133 17.15 20.05 14.95
3/05/18 623.25 624.15 612.50 614.25 616.15 55,441 1,716 3,41,60,055 23,129 41.72 11.65 -9.00
4/05/18 610.00 618.20 609.45 616.15 614.21 7,803 247 47,92,700 1,367 17.52 8.75 6.15
7/05/18 616.15 621.65 606.95 610.20 612.13 24,064 527 1,47,30,368 4,887 20.31 14.70 -5.95
8/05/18 612.05 620.15 609.55 613.85 614.90 16,040 327 98,63,059 4,109 25.62 10.60 1.80
% *
No. No.
er Quantity Trade
s s -L O
d Qty
10,02,18,12
2/04/18 22.00 22.80 21.90 22.55 22.44 44,66,730 3,949 7,63,076 17.08 0.90 0.55
4
12,82,12,93
3/04/18 22.10 22.90 22.10 22.65 22.53 56,91,144 4,244 7,58,512 13.33 0.80 0.55
1
21,20,80,74
4/04/18 22.70 23.40 21.70 22.35 22.50 94,24,107 8,196 14,09,140 14.95 1.70 -0.35
6
1,82,79,73 42,33,12,69
5/04/18 22.50 24.15 21.70 23.35 23.16 16,627 22,03,862 12.06 2.45 0.85
2 9
1,49,98,44 36,52,37,34
6/04/18 23.80 25.20 23.55 24.35 24.35 15,324 19,47,978 12.99 1.65 0.55
7 3
15,05,59,41
9/04/18 24.55 24.90 23.70 23.80 24.14 62,37,460 5,744 12,34,288 19.79 1.20 -0.75
2
10/04/1 13,02,71,00
23.85 24.10 22.80 23.25 23.34 55,82,319 4,880 12,28,692 22.01 1.30 -0.60
8 5
11/04/1
23.25 23.30 22.75 22.85 23.00 38,20,961 3,297 8,78,80,064 9,77,699 25.59 0.55 -0.40
8
12/04/1 11,47,50,42
22.95 23.10 22.10 22.25 22.53 50,92,889 4,010 16,84,589 33.08 1.00 -0.70
8 9
13/04/1
22.40 22.75 22.10 22.30 22.43 43,72,799 3,009 9,80,73,193 8,66,711 19.82 0.65 -0.10
8
16/04/1 16,81,49,77
22.25 22.50 20.85 21.10 21.49 78,23,020 6,980 18,69,010 23.89 1.65 -1.15
8 4
17/04/1 21.20 21.85 20.95 21.10 21.35 70,83,778 6,165 15,12,25,86 14,24,330 20.11 0.90 -0.10

8 2
18/04/1
21.40 21.45 20.85 21.05 21.13 43,60,279 3,574 9,21,49,048 8,85,406 20.31 0.60 -0.35
8
19/04/1 12,59,54,16
20.50 21.15 20.35 20.80 20.70 60,85,220 4,105 13,53,727 22.25 0.80 0.30
8 7
20/04/1
20.60 20.90 20.25 20.40 20.56 36,28,706 2,953 7,46,17,352 6,42,425 17.70 0.65 -0.20
8
23/04/1
20.40 20.75 19.85 20.05 20.24 48,44,344 3,348 9,80,64,781 13,87,778 28.65 0.90 -0.35
8
24/04/1 1,11,76,56 20,47,09,58
19.90 20.05 16.25 17.95 18.32 10,758 22,77,715 20.38 3.80 -1.95
8 0 5
25/04/1 17,61,05,62
17.90 18.65 17.25 17.70 17.85 98,65,196 7,301 15,62,147 15.83 1.40 -0.20
8 1
26/04/1 13,32,84,33
17.50 17.50 16.35 16.80 16.83 79,18,049 6,314 16,22,511 20.49 1.15 -0.70
8 7
27/04/1 10,11,57,76
16.80 17.00 15.60 15.90 16.42 61,61,337 8,502 11,53,063 18.71 1.40 -0.90
8 4
30/04/1 14,09,04,45
15.75 15.85 14.65 15.25 15.25 92,37,179 9,354 15,52,937 16.81 1.20 -0.50
8 3
1,70,59,25 28,63,77,04
2/05/18 15.25 17.75 14.95 16.05 16.79 16,497 20,06,615 11.76 2.80 0.80
6 7
12,61,22,43
3/05/18 15.95 16.10 14.90 15.05 15.41 81,84,229 6,112 14,81,578 18.10 1.20 -0.90
6
13,81,60,43
4/05/18 15.25 15.90 14.80 15.35 15.26 90,51,829 7,674 11,99,249 13.25 1.10 0.10
9
7/05/18 15.20 15.80 15.15 15.55 15.44 42,66,217 3,435 6,58,51,658 6,55,402 15.36 0.65 0.35
8/05/18 15.40 15.60 15.00 15.15 15.28 55,19,030 3,597 8,43,30,889 7,98,663 14.47 0.60 -0.25
MTNL:
% *
No. No.
er Quantity Trade
s s -L O
d Qty
2/04/18 19.00 19.50 19.00 19.35 19.22 3,73,007 696 71,69,558 1,34,406 36.03 0.50 0.35

3/04/18 19.15 19.90 19.05 19.80 19.42 5,75,386 1,188 1,11,71,388 1,90,809 33.16 0.85 0.65
4/04/18 20.30 20.40 19.40 19.60 19.91 4,46,212 915 88,83,860 1,37,862 30.90 1.00 -0.70
5/04/18 19.80 20.25 19.75 19.90 19.91 2,44,825 633 48,74,901 99,181 40.51 0.50 0.10
6/04/18 19.60 20.35 19.30 20.00 19.99 3,48,818 957 69,73,339 1,22,151 35.02 1.05 0.40
9/04/18 20.25 21.50 20.05 20.85 20.86 11,90,394 2,271 2,48,36,913 2,41,110 20.25 1.45 0.60
10/04/1
21.20 21.40 20.45 20.50 20.75 2,93,063 603 60,80,475 92,720 31.64 0.95 -0.70
8
11/04/1
20.50 20.60 20.15 20.20 20.31 2,80,443 413 56,95,958 1,02,390 36.51 0.45 -0.30
8
12/04/1
20.20 21.45 20.15 20.65 20.70 6,68,066 1,580 1,38,27,373 1,88,801 28.26 1.30 0.45
8
13/04/1
20.70 20.85 20.25 20.35 20.47 2,38,278 603 48,76,799 81,343 34.14 0.60 -0.35
8
16/04/1
20.05 20.40 19.90 20.10 20.11 2,53,706 474 51,02,592 85,508 33.70 0.50 0.05
8
17/04/1
20.35 21.20 20.25 20.70 20.71 8,52,550 1,669 1,76,60,313 1,78,266 20.91 0.95 0.35
8
18/04/1
20.95 20.95 20.25 20.40 20.48 1,57,173 290 32,19,079 63,213 40.22 0.70 -0.55
8
19/04/1
20.45 20.60 20.05 20.20 20.28 1,45,550 259 29,51,172 52,072 35.78 0.55 -0.25
8
20/04/1
20.20 20.20 19.75 19.85 19.90 2,17,269 395 43,23,493 86,127 39.64 0.45 -0.35
8
23/04/1
19.85 20.50 19.60 20.30 20.18 6,75,733 966 1,36,39,389 3,49,998 51.80 0.90 0.45
8
24/04/1
20.70 20.80 19.90 20.05 20.31 5,37,458 881 1,09,15,767 1,86,204 34.65 0.90 -0.65
8
25/04/1
20.25 20.45 19.75 19.85 20.06 3,34,528 498 67,09,445 88,020 26.31 0.70 -0.40
8
26/04/1
19.75 19.95 19.15 19.35 19.57 2,32,296 368 45,46,313 1,17,861 50.74 0.80 -0.40
8
27/04/1
19.40 19.75 19.30 19.35 19.51 1,49,571 378 29,18,257 53,269 35.61 0.45 -0.05
8
30/04/1
19.60 19.70 19.30 19.35 19.40 1,71,862 278 33,33,547 74,235 43.19 0.40 -0.25
8
2/05/18 19.50 19.75 19.00 19.05 19.35 2,19,093 561 42,40,063 80,183 36.60 0.75 -0.45
3/05/18 18.85 19.20 18.70 18.85 18.86 1,91,616 396 36,14,829 82,689 43.15 0.50 0.00
4/05/18 18.80 18.90 18.50 18.55 18.72 1,12,863 268 21,12,368 51,035 45.22 0.40 -0.25
7/05/18 18.80 18.90 18.50 18.60 18.68 1,38,404 267 25,85,145 73,649 53.21 0.40 -0.20
8/05/18 18.75 18.80 18.35 18.40 18.53 90,477 205 16,76,353 51,910 57.37 0.45 -0.35


MODULE – 4
TECHNICAL ANALYSIS
TECHNCAL ANALYSIS:
Technical Analysis is the forecasting of future financial price movements based on an

examination of past price movements. Technical analysis can help investors anticipate what
is "likely" to happen to prices over time. Technical analysis uses a wide variety of charts that
show price overtime. A method of evaluating future security prices and market directions
based on statistical analysis of variables such as trading volume, price changes, etc., to

identify patterns. Analysis applied to the price action of the market to develop trading
decisions, irrespective of fundamental factors.
 RELATIVE STRENGTH INDEX

 MOVING AVERAGE CONVERGENCE AND DIVERGENCE
 SUPPORT AND RESISTANCE LEVEL OF STOCKS
RELATIVE STRENGTH INDEX:
The Relative Strength Index is a technical momentum indicator that compares the
magnitude of recent gains to recent losses in an attempt to determine overbought and
oversold conditions of an asset. It is calculated using the following formula:
100-100/(1+RS*)
*where RS = average gains/average losses
In RSI above 70 is considered as overbought and below 30 is considered as oversold.
BHARTI AIRTEL:
N CLOSE CHANG ADVANCE DECLINE AV.GAI AV.LOSS RS RSI

O E N
1 1550.25 7.9 7.9 0 5.267857 13.475 0.390936 28.10595
2 1548.3 -1.95 0 1.95 5.267857 11.64643 0.452315 31.14443
3 1541.35 -6.95 0 6.95 5.267857 8.410714 0.626327 38.51175
4 1540.45 -0.9 0 0.9 5.267857 6.985714 0.75409 42.99038
5 1545 4.55 4.55 0 5.592857 5.439286 1.028234 50.69602

6 1507.05 -37.95 0 37.95 4 8.15 0.490798 32.92181

7 1522 14.95 14.95 0 2.853571 8.15 0.350131 25.93314
8 1518.05 -3.95 0 3.95 2.853571 8.060714 0.35401 26.14529
9 1527.7 9.65 9.65 0 3.542857 7.164286 0.494516 33.08873
10 1517.3 -10.4 0 10.4 3.542857 6.214286 0.570115 36.3104
RSI
100
90
80
70
60 RSI
50
40
30
20
10
0
1 7 1 3 19 25 3 1 37 43 4 9 5 5 61 67 7 3 79 85 9 1 9 7 0 3 0 9 1 5
1 1 1
INTERPRETATION:
The graph predicts the relative strength index for Bharti airtel and there is eventual
downfall and rise in share price of the company. As there is downfall in previous year and
boost in the current year so the company’s volatility is predicted to be high and holds a good
position in market and gains their shareholder good rate of takings.
RELIANCE COMMUNICATION :
NO CLOS CHANG ADVANC DECLIN AV.GAI AV.LOS RS RSI

E E E E N S
1 1487.7 21.55 21.55 0 10.3 10.92857 0.94248 48.5195
4 2
2 1491.4 3.75 3.75 0 10.56786 9.978571 1.05905 51.4340

5 5 3
3 1511.2 19.75 19.75 0 11.97857 9.325 1.28456 56.228
5
4 1487.9 -23.3 0 23.3 11.97857 10.46786 1.14431 53.3651
9 6
5 1468.2 -19.7 0 19.7 11.97857 9.292857 1.28900 56.3129
8 6
6 1460.6 -7.6 0 7.6 7.121429 9.835714 0.72403 41.9966
8 3
7 1477.2 16.65 16.65 0 8.310714 9.332143 0.89054 47.1052
5 7 6
8 1465.0 -12.2 0 12.2 8.078571 10.20357 0.79174 44.1883
5 2
9 1473.5 8.5 8.5 0 7.810714 10.20357 0.76548 43.3584
5 8 5
10 1487.1 13.55 13.55 0 8.778571 8.289286 1.05902 51.4333
6 5
RSI
90
80
70
60
50 RSI
40
30
20
10
0
1 7 13 1 9 25 3 1 37 43 4 9 5 5 6 1 67 7 3 79 8 5 91 97 0 3 0 9 1 5
1 1 1
INTERPRETATION:
The exceeding graph predicts the relative strength index of Reliance

communication during the month of January to June 2016.It is overbought and oversold i.e.
.the RSI swings between 70 and 30.It can be concluded that there is a strong uptrend in the
share price movements.

TATA TELECOMMUNICATION:
E E E E N S
1 403.25 9.4 9.4 0 2.939286 2.710714 1.08432 52.0227
1 6
2 406.6 3.35 3.35 0 3.178571 2.082143 1.52658 60.4209
7 1
3 410.1 3.5 3.5 0 3.428571 1.721429 1.99170 66.5742
1
4 411.1 1 1 0 3.5 1.453571 2.40786 70.6560
2 9
5 404.95 -6.15 0 6.15 3.5 1.460714 2.39608 70.5543
8 6
6 401.45 -3.5 0 3.5 2.264286 1.710714 1.32359 56.9631
1 6
7 404.6 3.15 3.15 0 2.489286 1.639286 1.51851 60.2941
9 2
8 402.6 -2 0 2 2.064286 1.782143 1.15831 53.6676
7
9 410.9 8.3 8.3 0 2.425 1.782143 1.36072 57.6400
1 7
10 413.95 3.05 3.05 0 2.642857 1.307143 2.02185 66.9077
8 8
RSI
90
80
70
60
50 RSI
40
30
20
10
0
1 7 13 1 9 25 3 1 37 43 4 9 5 5 6 1 67 7 3 79 8 5 91 97 0 3 0 9 1 5
1 1 1
INTERPRETATION:
The above graph shows the relative strength of TATA communication. It further
more shows the bullish and bearish movements in the stock price. It provides important clues

indicating potential trend reversals and can also serve compliment as a broader trading
strategy.
IDEA CELLULAR:
NO CLOSE CHANG ADVANC DECLIN AV.GAI AV.LOS RS RSI

E E E N S
1 1418.7 18.45 18.45 0 4.696429 7.957143 0.59021 37.1154
5 4
2 1416.45 -2.25 0 2.25 4.696429 6.707143 0.70021 41.1838
3 4
3 1395.1 -21.35 0 21.35 4.696429 6.939286 0.67678 40.3621
8 9
4 1377.15 -17.95 0 17.95 4.696429 5.328571 0.88136 46.8471
7 7
5 1369.45 -7.7 0 7.7 4.696429 5.678571 0.82704 45.2667
4 8
6 1370.25 0.8 0.8 0 3.457143 5.678571 0.60880 37.8420
5 6
7 1379.3 9.05 9.05 0 4.103571 4.960714 0.82721 45.2718
4 7
8 1374.8 -4.5 0 4.5 3.432143 5.282143 0.64976 39.3852
3 5
9 1389.15 14.35 14.35 0 4.346429 5.282143 0.82285 45.1409
3 5
10 1371.95 -17.2 0 17.2 4.346429 5.996429 0.72483 42.0234
6 8

RSI
80
70
60
50
RSI
40
30
20
10
0
1 7 13 1 9 25 3 1 37 43 4 9 5 5 6 1 67 7 3 79 8 5 91 97 0 3 0 9 1 5
1 1 1
INTERPRETATION:
The above graph shows the relative strength index for Idea cellular. The company
shows a sudden uptrend of share price and sharp downtrend of share prices. The RSI above
60 levels may be potential area for downtrend and the 20 level as an area reflecting oversold
conditions.
MTNL:

E E E E N S
1 255.5 -5.05 0 5.05 0.821429 3.453571 0.23784 19.2147
9
2 256.25 0.75 0.75 0 0.875 3.125 0.28 21.875
3 272 15.75 15.75 0 2 2.510714 0.79658 44.3388
6 8
4 273.85 1.85 1.85 0 2.010714 2.510714 0.80085 44.4707
3 7
5 271.45 -2.4 0 2.4 1.939286 2.682143 0.72303 41.9629
6 1
6 253.8 -17.65 0 17.65 1.939286 3.110714 0.62342 38.4017
1
7 242 -11.8 0 11.8 1.939286 3.767857 0.51469 33.9799
2 7
8 243.75 1.75 1.75 0 2.042857 3.767857 0.54218 35.1567

3
9 232.35 -11.4 0 11.4 2.042857 4.007143 0.50980 33.7662
4 3
10 233.85 1.5 1.5 0 1.739286 4.007143 0.43404 30.2672
6 5
RSI
80
70
60
50
RSI
40
30
20
10
0
1 7 13 1 9 25 3 1 37 43 4 9 5 5 6 1 67 7 3 79 8 5 91 97 0 3 0 9 1 5
1 1 1
INTERPRETATION:
The above graph shows the relative strength index for MTNL
communication. The company shows a sudden uptrends of share price and sharp
downtrends of share price.
MACD (Moving Average Convergence and Divergence)
The moving average (MA) gives you the daily average of the last x number
ofdays. Using the 20-day, 50-day, and 100-day time periods are common. That
provides three different levels of time information. The MAs are typically used
to provide support and resistance areas, and the crosses are treated as signals to
buy, sell, or cover as the case may be. There are variations on the moving
averages, but the simple ones suffice for what most people need them for. They
are also effective to confirm another signal. Most indicators can be used
together to present stronger evidence. Just be aware that some indicators use
similar information so they are likely to arrive at the same conclusions.
BHARTI AIRTEL:
NO CLOSE MACD20 MACD 50 MACD100

1 1349.9 1398.7 1432.378 1472.64
2 1380.45 1396.228 1429.839 1470.069
3 1421.4 1396.133 1428.081 1468.429
4 1432.4 1396.183 1426.543 1467.108
5 1471.05 1398.165 1425.873 1466.39
6 1459.7 1400.515 1424.976 1465.336
7 1435.85 1401.47 1423.602 1463.733

8 1426.1 1402.448 1422.843 1462.084

9 1473.3 1408.655 1423.3 1461.033
10 1480.45 1411.688 1423.873 1460.291
1600
1550
1500
1450
1400
1350
1300
1 6 11 1 6 21 26 3 1 3 6 41 46 5 1 56 61 6 6 7 1 76 81 8 6 91 96 0 1 0 6 1 1
1 1 1
INTERPRETATION:
The above graph represents simple moving average of Bharti airtel for 20, 50, and
100 days. The 20 days average shows that there is uptrend. The 50 days average shows a
sharp downtrend and 100 days average shows a sideways trend.
NO CLOSE MACD 20 MACD 50 MACD 100

1 1092.4 1137.18 1185.251 1281.459
2 1120.6 1132.568 1182.344 1277.833
3 1114.2 1128.905 1179.568 1274.234
4 1130.3 1125.76 1177.114 1270.87
5 1139.9 1123.095 1175.214 1267.963
6 1135.7 1119.525 1173.23 1264.334
7 1108.8 1118.07 1170.708 1260.506

8 1121.9 1117.968 1168.698 1256.777

9 1122.05 1120.27 1166.872 1252.927
10 1101.65 1119.82 1165.06 1249.141
1600
1400
1200
1000
800
600
400
200
0
1 6 1 1 16 21 2 6 31 36 4 1 4 6 51 56 6 1 66 71 7 6 8 1 8 6 91 9 6 0 1 0 6 1 1
1 1 1
INTERPRETATION:
The above graph represents the simple moving average of Reliance communication
for 20, 50, 100 days. The 20 days average tells that there is uptrend which is followed by
downtrend. The 50 and 100 days average shows a sideways trend.
TATA COMMUNICATION:
NO CLOSE MACD 20 MACD50 MACD 100

101 314.85 339.0225 360.606 379.654
102 340.65 337.225 359.755 379.148
103 344.45 336.4225 358.912 378.7305
104 348.7 335.6625 358.154 378.393
105 351.55 335.045 357.357 378.1445
106 331.35 333.2525 356.156 377.521
107 343.75 333.02 355.203 377.0315

108 358.45 334.2175 354.556 376.6295

109 371.95 336.74 354.3 376.33
110 384.2 339.72 354.521 376.2195
450
400
350
300
250
200
150
100
50
0
1 6 11 1 6 2 1 2 6 3 1 3 6 41 46 51 56 6 1 6 6 7 1 7 6 8 1 86 91 96 0 1 0 6 1 1
1 1 1
INTERPRETATION:
The above graph represents the simple moving average of TATA commincation for
20, 50, 100 days. The 20 days average tells that there is uptrend which is followed by
IDEA CELLULAR:
NO CLOSE MACD20 MACD 50 MACD100

1 1001.6 1098.68 1197.844 1278.033
2 1022.55 1089.368 1191.063 1273.813
3 1000 1082.6 1184.378 1269.548
4 1050.1 1075.18 1178.695 1266.189
5 1037.05 1067.725 1173.165 1262.727

6 1010.7 1059.733 1167.108 1258.821

7 973.4 1052.725 1160.305 1254.642
8 1003.3 1048.93 1154.417 1250.668
9 1050.55 1046.828 1149.433 1247.151
10 1057.05 1045.155 1145.106 1243.771
1600
1400
1200
1000
800
600
400
200
0
1 6 1 1 16 21 2 6 3 1 36 41 4 6 5 1 56 61 66 7 1 76 81 8 6 9 1 96 0 1 0 6 1 1
1 1 1
INTERPRETATION:
The above graph represents the simple moving average of Idea cellular for 20, 50,
100 days. The 20 days average tells that there is uptrend which is followed by downtrend.
The 50 and 100 days average shows a sideways trend.
MTNL:
NO CLOSE MACD 20 MACD 50 MACD 100

101 184 179.795 179.269 206.094
102 185.3 180.2675 179.206 205.0695
103 187.55 180.8475 179.223 204.1535
104 184.05 181.23 179.17 203.1855
105 184.35 181.6275 179.177 202.2105

106 184.8 182.1725 179.193 201.3565

107 185.4 182.6825 179.221 200.5345
108 195.9 183.7125 179.602 199.8145
109 197.05 184.8725 180.01 199.1865
110 191.2 185.4725 180.255 198.4425
300
250
200
150
100
50
0
1 6 11 1 6 2 1 2 6 3 1 3 6 41 46 51 56 6 1 6 6 7 1 7 6 8 1 86 91 96 0 1 0 6 1 1
1 1 1
INTERPRETATION:
The above graph represents the simple moving average of MTNL communication
for 20, 50, 100 days. The 20 days average tells that there is uptrend which is followed by
SUPPORT AND RESISTANCE LEVEL OF STOCKS

The support and resistance level of stocks refers to 6 months share price movements of
the company. In support and resistance level of stocks.
PIVOT= HIGH+LOW+CLOSE/3
*R1=PIVOT-LOW

*S1=PIVOT-HIGH
*R1 is considered as RESISTANCE
*S1 is considered as SUPPORT
BHARTI AIRTEL:
NO HIGH LOW CLOSE PIVOT S1 R1

1 1695.25 1650 1665.15 1670.133 1645.017 1690.267
2 1650 1586 1637.6 1624.533 1599.067 1663.067
3 1616 1574.95 1585.35 1592.1 1568.2 1609.25
4 1580.75 1542 1564.5 1562.417 1544.083 1582.833
5 1554.95 1517 1542.85 1538.267 1521.583 1559.533
6 1629 1550.45 1565.15 1581.533 1534.067 1612.617
7 1600 1570.15 1596.15 1588.767 1577.533 1607.383
8 1599.9 1560.1 1590.95 1583.65 1567.4 1607.2
9 1584 1531.1 1578.4 1564.5 1545 1597.9

10 1566.95 1530 1554.7 1550.55 1534.15 1571.1
1800
1600
1400
1200
1000
800 S1
600 R1
400
200
0
INTERPRETATION:
The exceeding graph represents share price movements for Bharti airtel for a period
of 6 months. The increasing trends can be considered as support level and below trends can
be considered as resistance levels.
NO High Low Close PIVOT S1 R1

1 1504.9 1484.9 1496.5 1495.433 1485.967 1505.967
2 1493 1477.25 1483.2 1484.483 1475.967 1491.717
3 1491.5 1468 1474.05 1477.85 1464.2 1487.7
4 1469.4 1428 1466.75 1454.717 1440.033 1481.433
5 1468 1401 1430.6 1433.2 1398.4 1465.4
6 1507.95 1473.4 1498.6 1493.317 1478.683 1513.233
7 1503 1480.2 1491.55 1491.583 1480.167 1502.967
8 1510.9 1490.5 1494.8 1498.733 1486.567 1506.967
9 1510 1460.3 1507.05 1492.45 1474.9 1524.6
10 1502.85 1472.9 1480.25 1485.333 1467.817 1497.767

1800
1600
1400
1200
1000
800 S1
R1
600
400
200
0
1 8 15 22 29 3 6 4 3 5 0 5 7 6 4 71 78 85 92 99 0 6 1 3 2 0 2 7
1 1 1 1
INTERPRETATION:
The exceeding graph represents share price movements for Reliance

communication for period of 6 months. The increasing trends can be considered as support
level and below trends can be considered as resistance levels.
TATA TELECOMMUNICATION:

1 405.5 392.55 400.05 399.3667 393.2333 406.1833
2 393.8 388.45 391.25 391.1667 388.5333 393.8833
3 388.5 381.15 386.2 385.2833 382.0667 389.4167
4 383.9 372.6 382.45 379.65 375.4 386.7
5 385 365.4 376.4 375.6 366.2 385.8
6 396.4 389.35 393.7 393.15 389.9 396.95
7 402.2 391.55 392.7 395.4833 388.7667 399.4167
8 404 397.6 398.65 400.0833 396.1667 402.5667
9 403 391.5 401.9 398.8 394.6 406.1
10 401 393 395.25 396.4167 391.8333 399.8333

500
450
400
350
300
250
S1
200 R1
150
100
50
0
1 8 1 5 22 29 3 6 4 3 50 57 6 4 7 1 78 85 9 2 99 0 6 1 3 2 0 2 7
1 1 1 1
INTERPRETATION:
The exceeding graph represents share price movements for TATA communication
for a period of 6 months. The increasing trends can be considered as support level and below
trends can be considered as resistance levels.
IDEA CELLULAR:

1 1475 1440 1464.35 1459.783 1444.567 1479.567
2 1448 1427.25 1444.6 1439.95 1431.9 1452.65
3 1432.6 1383.55 1426.5 1414.217 1395.833 1444.883
4 1395 1377.4 1386 1386.133 1377.267 1394.867
5 1394.35 1330.1 1383.2 1369.217 1344.083 1408.333
6 1405.45 1381.6 1401.35 1396.133 1386.817 1410.667
7 1404.7 1385.35 1391.3 1393.783 1382.867 1402.217
8 1407.5 1392.1 1400.7 1400.1 1392.7 1408.1
9 1406.5 1384 1402.25 1397.583 1388.667 1411.167
10 1417.45 1390.1 1395.05 1400.867 1384.283 1411.633

1600
1400
1200
1000
800
S1
600 R1
400
200
0
1 8 15 22 29 3 6 4 3 5 0 5 7 6 4 71 78 85 92 99 0 6 1 3 2 0 2 7
1 1 1 1
INTERPRETATION:
The exceeding graph represents share price movements for Idea cellular for a period
of 6 months. The increasing trends can be considered as support level and below trends can
be considered as resistance levels.
MTNL :
1 294.85 287.45 292.35 291.55 288.25 295.65
2 293 281.25 287.75 287.3333 281.6667 293.4167
3 287.15 277.5 279.15 281.2667 275.3833 285.0333
4 287.65 277.65 280.85 282.05 276.45 286.45
5 287 250 281.85 272.95 258.9 295.9
6 272.5 264.3 270.2 269 265.5 273.7
7 273.85 260.1 267.6 267.1833 260.5167 274.2667
8 269.5 258.55 267.9 265.3167 261.1333 272.0833
9 267.9 257.1 259.85 261.6167 255.3333 266.1333
10 270.45 262.65 265.6 266.2333 262.0167 269.8167

350
300
250
200
150 S1
R1
100
50
0
1 8 1 5 22 29 3 6 4 3 50 57 6 4 7 1 78 85 9 2 99 0 6 1 3 2 0 2 7
1 1 1 1
INTERPRETATION:
The exceeding graph represents share price movements for MTNL communication
for a period of 6 months. The increasing trends can be considered as support level and below
trends can be considered as resistance levels.

MODULE – 5
PETS ANALYSIS

POLITICAL:
The political environment is full of risks for the telecom sector. The traditional
political risks for telecom are the ones related to regulations, network licensing, national
radio spectrums and in case of certain nations trade barriers. Generally, these issues have
affected the network operators and the effect has been felt less by equipment and service
providers. However, one factor that worked in the favor of the telecom industry was
privatization and deregulation. For some time, the telecom industry enjoyed relative freedom
based upon its importance in the process of globalization. However, a number of threats have
emerged in last some years that could mean that political risks are on the rise again. Increased
focus is on the growing markets like China and India. However, the level of government
control in these markets is high.
Political risks rooted in national security and human rights issues are another major
source of political pressure for the telecom sector. Governments across the world have
launched measures to monitor and control communications motivated by political and
security reasons. These measures have grown tougher in the aftermath of the terrorist attacks
on US and hacking attempts on the US government’s databases. All these factors show that
political risks are going to sustain. Moreover, a large number of countries have maintained
trade barriers against the US telecom companies. As per a USCIB 2016 report, there is an
extensive list of countries that maintain trade barrier against the US telecom companies. The
list is here:
“Argentina, Australia, Brazil, Canada, Chile, China, Colombia, Costa Rica,

Dominican Republic, Ecuador, Egypt, El Salvador, European Union, Fiji, Germany, Ghana,
Gulf Cooperation Council, India, Indonesia, Korea, Latin America Malaysia, Mexico, Middle
East and North Africa, New Zealand, Nigeria, Pakistan, Peru, Philippines, Russia, South
Africa, Thailand, Tonga, Turkey, Uganda, Uruguay and Vietnam” .

The political factors include:
 employment laws
 tax policy
 trade restrictions and tariffs
 political stability
ECONOMIC:
The role of economic factors is just as important in the context of the telecom
industry. The recession had hurt this sector deeply. People were cutting back on their telecom
spending during the recession. Cutbacks on landlines had grown during the recession while
the growth of cellular services had slowed. Now since the economic recession has passed,
consumer spending on telecom is back on track. By 2009, people had stopped cutting on their
telecom expenses. 2016 has been good and with economic revival, things are changing
around the world. Globally, it all depends on the pocket of the consumer. The happier is the
economy, the higher will be consumer spending on any product or service. These economic
trends are also supported by technological changes. Fewer trade barriers could mean better
growth rate for the US based network providers.
The economical factors include:
 inflation rate
 economic growth
 exchange rates

 interest rates
SOCIAL:
Social factors also have a deep influence on the industry and its profitability.
Connectivity is central to so many things including work and entertainment. Globally, the use
of internet based services has grown. A higher number of people are using the social media
for fun and business. From YouTube videos to Netflix, video streaming services all require a
very good connectivity. This is a reason that the use of 4G has grown globally. Moreover,
more and more people like to remain connected on the go. This is a part of their lifestyle. For
some it is because they are too busy with work and in case of others they cannot remain
disconnected with family and friends.
Moreover, as per a report, the US people are gazing at least 9 billion times on their
smartphones and mobile devices. The use of mobile computing has grown quite fast and so
many features in these smartphones and tablets cannot be used without a very good
connection. A larger number of people around the world are growing health conscious and
are using wrist bands to track their physical activity. In this way, for the modern generation
connectivity defines its world. Overall, these trends have proved highly favorable for the
telecom industry.
The social factors include:
 emphasis on safety
 career attitudes
 population growth rate
 age distribution
 health consciousness

TECHNOLOGICAL:
The entire telecom industry is based on technology and therefore technological

changes influence it deeply. The use of mobile computing is on the rise. Around the world IT
is changing things like never before. It is central to several things including business and
productivity. Computers and cloud computing have become the core of productivity. It is the
telecom sector that stands to gain the most from these technological trends. Smartphone and
tablet sales have kept growing and none of the two can be used fully without a fast
connection. 5G is about to arrive and it has already given rise to a lot of excitement.
Autonomous driving too could become a reality in some years. This is just a part of
the picture because there are several other small and big technologies that will utilize a
connection like biometrics whose use on smartphones is expected to grow. IoT is another
area that is giving rise to major opportunities for the telecom providers. From connected cars
to smart homes and businesses, wearables, smart cities, several things will have connectivity
at their core. 5G is expected to take things ahead by reducing costs for the providers and
speeding up our connections many times. Thus, technological forces are one of the most
important ones affecting the telecom industry.
The technological factors include:
 R&D activity
 technology incentives
 rate of technological change
 automation
LEGAL:
Globally legal compliance gives rise to big risks for the telecom providers. Apart from
the common labor and employment laws, there are several other laws and licenses that are
essential to be complied with. In US, the broadcasting regulations are overseen by the FCC

which was established by the Congress in 1934. There are several laws including those
related to telemarketing and privacy that the providers must comply with. Several changes
took place in the aftermath of the 9/11 attacks that gave rise to additional pressures for the
telecom providers.
MODULE – 6

SUMMARY OF FINDINGS

SUMMARY OF FINDINGS:
 Reality sector is lucrative for long term period; whereas investment in reality sector
creates boom in short term period. Five scrip here analyses based on BSE indices, RSI
analysis, moving average of convergences and divergence, and support & resistance
in the fundamental analysis. . As stock markets are highly volatile the investors
should aware the periodic trend in the market. The share price which is
telecommunication industries correlating with Sensex reflects a positive trend.
 So investors should invest in this sector they will that good return for their
investment. Sometime the share price should come down but that cannot affect the
invest money, so the long term investment is use to get high returns. And that is safe
to invest the money.
 RSI swings between 70 and 30.It can be concluded that there is a strong uptrend in the
share price movements. As there is downfall in previous year and boost in the current
year so the company’s volatility is predicted to be high and holds a good position in
topical market and gains their shareholder good rate of takings. RSI values find by
using formula and insert in the chart.
 The Moving average convergence and divergence of telecommunication industries of

India for 20, 50, 100 days. The 20 days average tells that there is uptrend which is
followed by downtrend. The 50 and 100 days average shows a sideways trend.
 Support and Resistance for a period of 6 months. The increasing trends can be
considered as support level and below trends can be considered as resistance levels.
 In over all companies Bharti airtel and Reliance communication having stable growth
in the analysis. These Companies having price movements are very highly violated
and having average increase in the support and resistance level.
 Other companies are also having consistence growth in the price level. But it changes
according to the certain circumstances of the economic growth of our nation.

MODULE – 7
CONCLUSION

CONCLUSION:
 In the analysis we see the company share price and the company share levels. It helps
to investor to invest their money into the best company. So investor can get returns for
their investment.
 In this analysis of telecommunication companies. The company share price is increase
in market, because the company net profit is increase. And their company market
value is increase to compare another company. So investor should get high return of
these companies.
 This report of ratio analysis in the production concern is not merely a work of the
project. But a brief knowledge and experience of that how to analyze the financial
performance of the firm.
 The fundamental and technical analysis needs of an organization change over time as
does its internal cash generation rate. As such, the small should ensure a good
synchronization of its assets and liabilities. Further, this research concludes that there
is a pressing need for further empirical studies to be undertaken on small business
financial management, in particular their fundamental practices by extending the
sample size so that an industry wise analysis can help to uncover the factors that
explain the better performance of telecommunication industries. From the above
analysis an investor can assess the true and fair view of investing ways.

MODULE - 8
ANNEXURE

BHARTI AIRTEL:
Profit & Loss account of Bharti Airtel ------------------- in Rs. Cr. -------------------
Mar 18 Mar 17 Mar 16 Mar 15
12 mths 12 mths 12 mths 12 mths
INCOME
53,663.0
Revenue From Operations [Gross] 62,276.30 60,300.30 55,496.40
0
53,663.0
Revenue From Operations [Net] 62,276.30 60,300.30 55,496.40
0
53,663.0
Total Operating Revenues 62,276.30 60,300.30 55,496.40
0
Other Income 235.60 184.30 172.90 5,193.00
53,898.6
Total Revenue 62,460.60 60,473.20 60,689.40
0
EXPENSES
Purchase Of Stock-In Trade 0.00 0.00 0.00 71.40
13,951.2
Operating And Direct Expenses 14,536.00 28,776.00 14,602.50
0
Employee Benefit Expenses 1,720.90 1,738.50 1,864.80 1,691.50
Finance Costs 5,069.00 2,912.50 1,974.50 1,409.10
13,048.6
Depreciation And Amortisation Expenses 12,203.40 9,575.30 7,559.70
0
20,186.0
Other Expenses 22,308.90 7,348.30 19,699.90
0
53,975.7
Total Expenses 53,699.30 49,538.90 45,034.10
0

Profit/Loss Before Exceptional,

-77.10 8,761.30 10,934.30 15,655.30
ExtraOrdinary Items And Tax
Exceptional Items -604.10 -17,270.80 -679.90 0.00
Profit/Loss Before Tax -681.20 -8,509.50 10,254.40 15,655.30
Tax Expenses-Continued Operations
Current Tax -220.40 -4.50 2,055.80 3,109.20
Less: MAT Credit Entitlement 0.00 0.00 0.00 779.00
Deferred Tax -540.00 1,420.60 418.30 124.60
Total Tax Expenses -760.40 1,416.10 2,474.10 2,454.80
Profit/Loss After Tax And Before

79.20 -9,925.60 7,780.30 13,200.50
ExtraOrdinary Items
Profit/Loss From Continuing

79.20 -9,925.60 7,780.30 13,200.50
Operations
Profit/Loss For The Period 79.20 -9,925.60 7,780.30 13,200.50
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 0.20 -24.84 19.46 33.00
Diluted EPS (Rs.) 0.20 -24.84 19.46 33.00

VALUE OF IMPORTED AND INDIGENIOUS

RAW MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 999.30 399.70 887.20 1,539.00
Tax On Dividend 535.70 145.90 0.00 58.60
Equity Dividend Rate (%) 50.00 20.00 44.00 77.00

IDEA CELLULAR:
Profit & Loss account of Idea Cellular ------------------- in Rs. Cr. -------------------
Mar '17 Mar '16 Mar '15 Mar '14
Income
Sales Turnover 35,278.65 35,803.69 31,279.47 26,110.40
Net Sales 35,278.65 35,803.69 31,279.47 26,110.40
Other Income 197.03 163.90 452.34 69.07
Total Income 35,475.68 35,967.59 31,731.81 26,179.47
Expenditure
Power & Fuel Cost 2,952.22 2,460.36 2,394.40 2,233.87
Employee Cost 1,625.64 1,473.52 1,358.73 1,161.01
Other Manufacturing Expenses 19,183.73 18,623.30 16,664.56 14,416.59
Selling and Admin Expenses 455.40 483.32 0.00 0.00
Miscellaneous Expenses 966.82 868.60 1,188.37 1,044.69
Total Expenses 25,183.81 23,909.10 21,606.06 18,856.16
Mar '17 Mar '16 Mar '15 Mar '14
Operating Profit 10,094.84 11,894.59 9,673.41 7,254.24

PBDIT 10,291.87 12,058.49 10,125.75 7,323.31
Interest 4,010.85 1,777.85 931.66 624.79
PBDT 6,281.02 10,280.64 9,194.09 6,698.52
Depreciation 7,700.02 6,223.23 4,855.01 4,093.24
Profit Before Tax -1,419.00 4,057.41 4,339.08 2,605.28
PBT (Post Extra-ord Items) -1,419.00 4,057.41 4,339.08 2,605.28
Tax -587.93 1,424.56 1,529.25 915.98
Reported Net Profit -831.08 2,646.29 2,809.84 1,689.31
Total Value Addition 25,183.80 23,909.10 21,606.06 18,856.16
Equity Dividend 0.00 215.96 226.94 132.86
Corporate Dividend Tax 0.00 43.97 45.83 22.58
Per share data (annualised)
Shares in issue (lakhs) 36,053.28 36,005.09 35,978.44 33,196.32
Earning Per Share (Rs) -2.31 7.35 7.81 5.09
Equity Dividend (%) 0.00 6.00 6.00 4.00
Book Value (Rs) 65.80 68.78 60.84 46.95
TATA COMMUNICATION:

Profit & Loss account of Tata ------------------- in Rs. Cr. -------------------

Communications
Mar '18 Mar '17 Mar '16 Mar '15
Income
Sales Turnover 5,120.90 5,068.15 4,790.32 4,319.35
Net Sales 5,120.90 5,068.15 4,790.32 4,319.35
Other Income 220.43 806.91 187.14 719.49
Total Income 5,341.33 5,875.06 4,977.46 5,038.84
Expenditure
Raw Materials 0.17 0.09 0.06 20.37
Power & Fuel Cost 103.97 100.29 90.80 79.00
Employee Cost 858.87 757.54 763.93 728.50
Other Manufacturing Expenses 1,902.42 1,923.39 1,828.73 1,673.44
Selling and Admin Expenses 33.74 32.04 27.22 0.00
Miscellaneous Expenses 1,082.53 1,061.61 887.49 790.07
Total Expenses 3,981.70 3,874.96 3,598.23 3,291.38
Mar '18 Mar '17 Mar '16 Mar '15
Operating Profit 1,139.20 1,193.19 1,192.09 1,027.97
PBDIT 1,359.63 2,000.10 1,379.23 1,747.46
Interest 40.31 30.68 31.30 25.25

PBDT 1,319.32 1,969.42 1,347.93 1,722.21
Depreciation 830.25 764.58 742.99 718.94
Profit Before Tax 489.07 1,204.84 604.94 1,003.27
PBT (Post Extra-ord Items) 489.07 1,204.84 604.94 1,003.27
Tax 222.44 515.01 212.26 328.65
Reported Net Profit 266.63 689.83 392.68 674.62
Total Value Addition 3,981.53 3,874.87 3,598.17 3,271.01
Equity Dividend 205.81 147.50 199.11 156.75
Corporate Dividend Tax 0.00 0.00 0.00 20.13
Per share data (annualised)
Shares in issue (lakhs) 2,850.00 2,850.00 2,850.00 2,850.00
Earning Per Share (Rs) 9.36 24.20 13.78 23.67
Equity Dividend (%) 45.00 60.00 43.00 55.00
Book Value (Rs) 308.89 324.74 312.13 293.05
RELIANCE TELECOMMUNICATION:
Profit & Loss account of Reliance ------------------- in Rs. Cr. -----------------

Communications

INCOME
Revenue From Operations [Gross] 9,879.00 11,180.00 11,925.00 12,409.00
Less: Excise/Sevice Tax/Other Levies 1,056.00 1,187.00 1,124.00 1,233.00
Revenue From Operations [Net] 8,823.00 9,993.00 10,801.00 11,176.00
Other Operating Revenues 0.00 0.00 0.00 0.00
Total Operating Revenues 8,823.00 9,993.00 10,801.00 11,176.00
Other Income 331.00 321.00 335.00 1,269.00
Total Revenue 9,154.00 10,314.00 11,136.00 12,445.00
EXPENSES
Operating And Direct Expenses 7,506.00 6,965.00 8,294.00 7,855.00
Employee Benefit Expenses 187.00 190.00 269.00 286.00
Finance Costs 2,409.00 2,049.00 1,680.00 1,796.00
Depreciation And Amortisation Expenses 1,972.00 2,014.00 1,940.00 2,048.00
Other Expenses 935.00 723.00 582.00 1,218.00
Total Expenses 13,009.00 11,941.00 12,765.00 13,203.00

-3,855.00 -1,627.00 -1,629.00 -758.00
Exceptional Items 0.00 0.00 2,969.00 0.00

Profit/Loss Before Tax -3,855.00 -1,627.00 1,340.00 -758.00
Deferred Tax -2,059.00 -1,248.00 1,488.00 -1,488.00
Tax For Earlier Years 0.00 0.00 6.00 0.00
Total Tax Expenses -2,059.00 -1,248.00 1,494.00 -1,488.00

-1,796.00 -379.00 -154.00 730.00
ExtraOrdinary Items

-1,796.00 -379.00 -154.00 730.00
Operations
Profit/Loss For The Period -1,796.00 -379.00 -154.00 730.00
EARNINGS PER SHARE
Basic EPS (Rs.) -7.28 -1.54 -0.66 3.54
Diluted EPS (Rs.) -7.28 -1.54 -0.66 3.54

RAW MATERIALS
Imported Stores And Spares 0.00 0.00 0.00 1.00
Indigenous Stores And Spares 27.00 32.00 19.00 11.00
Equity Share Dividend 0.00 0.00 0.00 0.00
Tax On Dividend 0.00 0.00 0.00 0.00

Equity Dividend Rate (%) 0.00 0.00 0.00 0.00
MAHANAGAR TELEPHONE NIGAM:
Profit & Loss account of Mahanagar ------------------- in Rs. Cr. -------------------

Telephone Nigam

INCOME
2,849.1
Revenue From Operations [Gross] 3,111.14 3,375.52 3,379.16
2
2,849.1
Revenue From Operations [Net] 3,111.14 3,375.52 3,379.16
2
Other Operating Revenues 20.56 12.82 24.56 12.58
2,869.6
Total Operating Revenues 3,123.96 3,400.08 3,391.74
8
Other Income 682.78 569.22 420.98 395.64
3,552.4
Total Revenue 3,693.18 3,821.06 3,787.37
6
EXPENSES
Operating And Direct Expenses 497.86 464.63 591.56 624.20
2,647.8
Employee Benefit Expenses 2,639.32 2,653.19 2,615.40
1
1,448.4
Finance Costs 1,351.34 1,439.62 1,390.15
7
1,087.6
Depreciation And Amortisation Expenses 1,151.59 1,158.59 1,165.74
3
Other Expenses 816.15 842.05 880.50 1,074.91
6,497.9
Total Expenses 6,448.93 6,723.46 6,870.41
2

-
2,945.4 -2,755.75 -2,902.40 -3,083.04
6
Exceptional Items 0.00 0.00 0.00 11,620.93
-
Profit/Loss Before Tax 2,945.4 -2,755.75 -2,902.40 8,537.89
6
Current Tax -4.38 -492.26 0.00 497.18
Total Tax Expenses -4.38 -492.26 0.00 497.18
-
2,941.0 -2,263.49 -2,902.40 8,040.72
ExtraOrdinary Items
8
Prior Period Items 0.00 0.00 9.01 -215.58
-
2,941.0 -2,263.49 -2,893.39 7,825.13
Operations
8
Profit Loss From Discontinuing Operations 0.00 315.95 0.00 0.00
Net Profit Loss From Discontinuing

0.00 315.95 0.00 0.00
Operations
-
Profit/Loss For The Period 2,941.0 -1,947.54 -2,893.39 7,825.13
8
EARNINGS PER SHARE

Basic EPS (Rs.) -46.68 -30.91 -45.93 124.21
Diluted EPS (Rs.) -46.68 -30.91 -45.93 124.21

RAW MATERIALS
BHARTI AIRTEL:

Balance Sheet of Bharti Airtel ------------------- in Rs. Cr. -------------------
Mar '18 Mar '17 Mar '16 Mar '15
Sources Of Funds
Total Share Capital 1,998.70 1,998.70 1,998.70 1,998.70
Equity Share Capital 1,998.70 1,998.70 1,998.70 1,998.70
100,862.2
Reserves 99,208.60 109,730.40 76,272.10
0
102,860.9
Networth 101,207.30 111,729.10 78,270.80
0
Secured Loans 65,415.80 9,754.20 0.00 -1,315.20
Unsecured Loans 0.00 50,340.50 42,156.90 21,567.80
Total Debt 65,415.80 60,094.70 42,156.90 20,252.60
168,276.7
Total Liabilities 161,302.00 153,886.00 98,523.40
0
Mar '18 Mar '17 Mar '16 Mar '15
Application Of Funds
180,754.6
Gross Block 163,428.00 137,060.80 93,021.60
0
Less: Revaluation Reserves 0.00 0.00 0.00 2.10
Less: Accum. Depreciation 58,145.20 51,905.20 45,135.30 39,577.20

122,609.4
Net Block 111,522.80 91,925.50 53,442.30
0
Capital Work in Progress 5,542.70 9,600.20 3,830.30 9,066.90
Investments 48,128.20 45,959.00 69,897.30 43,116.90
Inventories 6.30 3.90 5.30 9.40
Sundry Debtors 4,319.60 3,211.80 3,172.40 3,311.00
Cash and Bank Balance 545.10 173.40 46.60 388.70
Total Current Assets 4,871.00 3,389.10 3,224.30 3,709.10
Loans and Advances 23,786.00 21,166.50 16,150.60 17,086.40
Total CA, Loans & Advances 28,657.00 24,555.60 19,374.90 20,795.50
Current Liabilities 36,351.40 29,973.50 30,800.80 26,466.40
Provisions 309.20 362.10 341.20 1,431.80
Total CL & Provisions 36,660.60 30,335.60 31,142.00 27,898.20
Net Current Assets -8,003.60 -5,780.00 -11,767.10 -7,102.70
168,276.7
Total Assets 161,302.00 153,886.00 98,523.40
0
Contingent Liabilities 31,187.00 27,419.40 10,790.00 128,251.00
Book Value (Rs) 257.32 253.18 279.50 195.80

IDEA CELLULAR:
Balance Sheet of Idea Cellular ------------------- in Rs. Cr. -------------------
Mar '17 Mar '16 Mar '15 Mar '14
Sources Of Funds
20,118.4
Reserves 21,164.69 18,292.30 12,264.72
3
23,723.7
Networth 24,765.20 21,890.14 15,584.35
6
Secured Loans 7,858.93 37,549.62 6,206.67 7,891.32
43,812.5
Unsecured Loans 0.00 9,951.21 9,861.92
5
51,671.4
Total Debt 37,549.62 16,157.88 17,753.24
8
75,395.2
Total Liabilities 62,314.82 38,048.02 33,337.59
4
Mar '17 Mar '16 Mar '15 Mar '14
85,501.1
Gross Block 69,717.83 51,212.18 41,352.37
4

76,124.9
Net Block 64,971.30 32,113.91 26,024.12
9
Capital Work in Progress 0.00 6,038.83 5,079.45 11,380.12
Investments 6,251.31 2,499.70 12,814.11 1,641.21
Inventories 54.21 85.15 58.30 48.74
Sundry Debtors 1,258.10 1,136.06 932.19 769.69
Cash and Bank Balance 31.27 757.66 1,541.94 139.53
Total Current Assets 1,343.58 1,978.87 2,532.43 957.96
20,019.9
Current Liabilities 15,913.40 19,046.89 10,247.56
1
Provisions 347.27 426.96 580.93 403.21
20,367.1
Total CL & Provisions 16,340.36 19,627.82 10,650.77
8
-
Net Current Assets 14,510.2 -11,195.00 -11,959.43 -5,707.85
4
67,866.0
Total Assets 62,314.83 38,048.04 33,337.60
6
29,513.0
Contingent Liabilities 25,478.46 54,236.32 14,957.68
0
Book Value (Rs) 65.80 68.78 60.84 46.95

TATA COMMUNICATION:
Balance Sheet of Tata Communications ------------------- in Rs. Cr. -------------------
Mar '18 Mar '17 Mar '16 Mar '15
Sources Of Funds
Total Share Capital 285.00 285.00 285.00 285.00
Equity Share Capital 285.00 285.00 285.00 285.00
Reserves 8,518.46 8,970.21 8,610.74 8,066.83
Networth 8,803.46 9,255.21 8,895.74 8,351.83
Secured Loans 150.00 155.00 5.00 60.00
Unsecured Loans 368.90 582.25 678.79 465.64
Total Debt 518.90 737.25 683.79 525.64
Total Liabilities 9,322.36 9,992.46 9,579.53 8,877.47
Mar '18 Mar '17 Mar '16 Mar '15

10,956.6
Gross Block 10,233.65 9,655.61 9,702.38
3
Net Block 3,864.76 3,753.61 3,809.65 4,174.39
Capital Work in Progress 623.20 739.81 557.91 235.95
Investments 4,210.58 5,366.22 4,487.38 4,124.32
Inventories 23.93 14.83 6.39 3.95
Sundry Debtors 1,159.27 806.98 846.33 717.63
Total Current Assets 1,798.23 923.60 937.36 874.44
Provisions 242.57 260.89 244.94 756.59
Net Current Assets 623.82 132.82 724.59 342.81
Total Assets 9,322.36 9,992.46 9,579.53 8,877.47
Book Value (Rs) 308.89 324.74 312.13 293.05

Balance Sheet of Reliance ------------------- in Rs. Cr. -------------------

Communications
Mar '17 Mar '16 Mar '15 Mar '14
Sources Of Funds
Reserves 22,840.00 26,206.00 34,627.00 30,359.00
Networth 24,084.00 27,450.00 35,871.00 31,380.00
Secured Loans 20,138.00 26,230.00 25,935.00 28,362.00
Unsecured Loans 6,419.00 1,760.00 1,231.00 1,765.00
Total Debt 26,557.00 27,990.00 27,166.00 30,127.00
Mar '17 Mar '16 Mar '15 Mar '14
Gross Block 40,225.00 36,549.00 46,873.00 47,432.00

Net Block 28,548.00 26,202.00 32,332.00 34,423.00
Capital Work in Progress 1,196.00 7,970.00 631.00 731.00
Investments 21,689.00 21,802.00 22,422.00 21,042.00
Inventories 108.00 119.00 201.00 269.00
Sundry Debtors 1,636.00 1,177.00 1,334.00 1,994.00
Total Current Assets 2,387.00 2,088.00 2,107.00 2,390.00
Provisions 1,253.00 1,245.00 1,291.00 7,447.00
Net Current Assets -792.00 -534.00 7,652.00 5,311.00
Total Assets 50,641.00 55,440.00 63,037.00 61,507.00
Book Value (Rs) 96.76 110.29 144.12 153.62

MTNL COMMUNICATION:
Balance Sheet of Mahanagar Telephone ------------------- in Rs. Cr. -------------------

Nigam
Mar '17 Mar '16 Mar '15 Mar '14
Sources Of Funds
Total Share Capital 630.00 630.00 630.00 630.00
Equity Share Capital 630.00 630.00 630.00 630.00
Reserves -3,996.70 -1,026.13 1,437.42 4,410.71
Networth -3,366.70 -396.13 2,067.42 5,040.71
Secured Loans 7,011.31 4,562.97 2,495.00 4,365.00
Unsecured Loans 7,910.24 7,923.81 14,109.40 9,755.44
Total Debt 14,921.55 12,486.78 16,604.40 14,120.44
Mar '17 Mar '16 Mar '15 Mar '14
Gross Block 24,452.50 24,637.91 24,932.62 24,808.97
Net Block 8,585.01 9,438.00 10,432.32 11,220.95
Capital Work in Progress 337.86 176.46 133.84 382.57

Investments 141.98 141.98 181.98 201.98
Inventories 15.07 29.74 96.13 69.89
Sundry Debtors 491.58 492.01 294.52 291.80
Total Current Assets 594.25 684.41 461.29 608.00
Provisions 1,457.48 1,468.62 1,933.55 1,993.40
Net Current Assets 2,490.00 2,334.21 7,923.68 7,355.63
Total Assets 11,554.85 12,090.65 18,671.82 19,161.13
Book Value (Rs) -53.44 -6.29 32.82 80.01
BIBILOGRAPHY:
 http://indianfinance.in
 www.investopida.com

 www.jpcindianfinance.nic.inwww.pib.nic.in
 Financial statements: www.moneycontrol.com/company/financial
 Historical share prices: http://www.yahoofinance.com
 http://www.wikipedia.com
 www.easycalculation.com
 www.moneycontorl.com
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AN INDUSTRIAL EXPOSURE TRAINING REPORT ON

CLASS : III B.COM (CM)

TITLE : TELECOMMUNICATION INDUSTRY

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 1

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 2

India is currently the world’s second-largest telecommunications market with a

The mobile industry is expected to create a total economic value of Rs 14 trillion

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 3

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 4

FUTURE GROWTH OF TELECOMMUNICATION INDUSTRY:

 To analyze the history and evolution of Indian Telecom Industry.

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 5

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 6

i) Economical Analysis – Global Economy – Regional Economy – India’s

A method of evaluating a security that entails attempting to measure its intrinsic

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 7

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 8

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 9

Telecommunication has supported the socioeconomic development of India and has

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 10

According to London-based telecom trade body GSMA, the telecom sector accounted

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 11

OVERVIEW OF THE COMPANY:

Bharti Airtel Limited (commonly shortened to Airtel and stylised airtel) is an

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 12

Airtel is credited with pioneering the business strategy of outsourcing all of its

In 1984, Sunil Mittal started assembling push-button phones in India, which he earlier

In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 13

Communications, in Chennai. In 2001, the company acquired control of Spice Cell

In 2009, Bharti negotiated for its strategic partner Alcatel-Lucent to manage the

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 14

Idea Cellular (commonly referred to as simply Idea, and stylised as !dea) is an

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 15

On 20 March 2017, Idea and Vodafone India announced that their respective boards

TataCommunications formerly called VSNL is a global provider

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 16

Tata Communications is the Official Connectivity Provider for Formula 1 and MotoGP.

Tata Communications Limited is headquartered in Pune and Singapore and is listed on

Tata Communications Limited is listed on the Bombay Stock Exchange and the National

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 17

Reliance Communications Ltd. (stylised as RCom) is

Reliance Communications Limited was established in India in 2002, with the launch

In the 2010 spectrum auction, the company obtained 3G spectrum in 13

RCom partnered with Lenovo to launch their co-branded Android smartphones in

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 18

Mahanagar Telephone Nigam Limited (MTNL) is a state-

Mahanagar Telephone Nigam Limited (MTNL) is a state-

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 19

Exchange, Global depository receipts on London Stock Exchange and American depository

The company's name derives from Hindi: mahanagar meaning "metropolis"

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 20

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 21

Key Financial Ratios of Bharti Airtel

Mar '17 Mar '16 Mar '15 Mar '14

SRI KRISHNA ARTS AND SCIENCE COLLEGE Page 22

Investment Valuation Ratios

Face Value 5.00 5.00 5.00 5.00

Dividend Per Share 1.00 2.22 3.85 1.80

Operating Profit Per Share (Rs) 59.27 55.81 48.61 40.77

Free Reserves Per Share (Rs) -- -- -- --

Bonus in Equity Capital 78.37 78.37 78.37 78.37

Operating Profit Margin(%) 38.04 37.00 35.01 32.65