EXECUTIVE SUMMARY

Executive Summary submitted in fulfilment of the requirement of PGPM Program of IBS

Mumbai.

Hasti Mehta 19BSP1059

EQUITY ANALYSIS is the systematic study of the performance of companies in stock

market with help of fundamental analysis and technical analysis. Equity analysis consists of
fundamental analysis & technical analysis. While decision in investment of shares should be
based on actual movement of shares price measured more in money & percentage term &
nothing else. Equity is a share in the ownership of a company. Equity represents a claim on
the company's assets and earnings. As you acquire more equity, your ownership stake in the
company becomes greater. Whether you say shares, equity, it all means the same thing. A
stock is represented by a stock certificate. This is a piece of paper that is proof of your
ownership. Today its in dematerialized form i.e., in electronic form shares have been kept
safe. This is done to make the shares easier to trade. In the past, when a person wanted to sell
his or her shares, that person physically took the certificates down to the brokerage. Now,
trading with a click of the mouse or a phone call makes life easier for everybody.
Technical analysis really just studies supply and demand in a market in an attempt to
determine what direction, or trend, will continue in the future. In other words, technical
analysis attempts to understand the emotions in the market by studying the market itself, as
opposed to its components. If you understand the benefits and limitations of technical
analysis, it can give you a new set of tools or skills that will enable you to be a better trader or
investor. Technical analysis is a method of evaluating securities by analysing the statistics
generated by market activity, such as past prices and volume. Technical analysts do not
attempt to measure a security's intrinsic value, but instead use charts and other tools to
identify patterns that can suggest future activity.
The Technical Approach to investment is essentially a reflection of the idea that prices move
in a trend that are determined by the changing attitude of investors toward a variety of
economic, monetary, political and psychological forces. The art of technical analysis, for it is
an art, is to identify a trend reversal at a relatively early stage and ride on that trend until the
weight of the evidence shows or proves the trend has reversed.
The present market scenario has shown us the Boom in Share Market. Even some of the
research firms showed that Share Market is the fastest growing in India. From last two years
share market is in boom. Now it is possible for the investors to trade from their own place. As
compare to last two years there is a growth in the number of share brokers and market
analysts. Media is playing an important role in these regards. Now the common man is also
thinking of some investment in share market. Too many investors invest their money for the
short span, the intention is speculative.
 CHAPTER 1
INTRODUCTION
COMPANY OVERVIEW:

Future Generali India Insurance Company Limited is a joint venture between Future Group –
the game changers in Retail Trade in India and Generali – a 187 years old global insurance
group featuring among the world’s 60 largest companies.

The company was incorporated in September 2007 with the objective of providing retail,
commercial, personal and rural insurance solutions to individuals and corporates to help them
manage and mitigate risks.

Future Generali India has been serving the customers by leveraging upon its global Insurance
expertise in diverse classes of products of Generali Group and the Indian retail game
changers Future Group.

Having firmly established its credentials in this segment and effectively leveraging on the
skill set of both its JV partners, Future Generali India has evolved to become a Total
Insurance Solutions Company.

ABOUT INDUSTRY:

The insurance sector is made up of companies that offer risk management in the form of
insurance contracts. The basic concept of insurance is that one party, the insurer, will
guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the
policyholder, pays a smaller premium to the insurer in exchange for that protection on that
uncertain future occurrence.

The insurance industry of India has 57 insurance companies 24 are in the life insurance
business, while 33 are non-life insurers. Among the life insurers, Life Insurance Corporation
(LIC) is the sole public sector company. There are six public sector insurers in the non-life
insurance segment. In addition to these, there is a sole national re-insurer, namely General
Insurance Corporation of India (GIC Re). Other stakeholders in the Indian Insurance market
include agents (individual and corporate), brokers, surveyors and third-party administrators
servicing health insurance claims.

In this pandemic, people are more moving towards insurance. LIFE INSURANCE
COMPANY have made profit of 37000 crores of profit this year. So now Insurance Sector is
booming.

PROJECT TITLE:

“FUNDAMENTAL AND TECHNICAL ANALYSIS OF EQUITY SHARES IN

TELECOM INDUSTRY”.

PROJECT OBJECTIVE:

 To know the future movement of selected companies shares through fundamental and
technical analysis.
  To predict the future price of the selected companies shares.
 To study the strategies to be adopted by the retail investors based on the technical and
fundamental analysis.
 To know the floor and cap price of the stock.
 To analyse individual company scrips by considering the factors relating to the
economy, industry and the respective company.
 To predict investor positions (Buy, sell & hold) based on historical price trends and
the likely company prospects.

PROJECT SCOPE:

 To study technical analysis online under the guidance of expertise.

METHODOLOGY:

During my project, I have collected information from primary & secondary source.

Primary source includes

 Discussion with company mentor.

 Live trading in the market.

Secondary source includes:

 Web sites were used as the vital information source.

LIMITATIONS:

 The study is limited only to this 1 sector and 3 companies.

 Here, an attempt is made to predict the future movement stock. It contains an element
of guess work.
 Here, I have used only some Technical tools and fundamental to predict the
movement of Stocks.
CHAPTER 2:

TELECOM INDUSTRY OVERVIEW

Introduction:

The telecommunication sector is made up of companies that make communication possible

on a global scale, whether it is through the phone or the Internet, through airwaves or cables,
through wires or wirelessly. These companies created the infrastructure that allows data in
words, voice, audio, or video to be sent anywhere in the world. The largest companies in the
sector are telephone (both wired and wireless) operators, satellite companies, cable
companies, and Internet service providers.

GROWTH OF INDUSTRY IN INDIA:

Currently, India is the world’s second-largest telecommunications market with a subscriber

base of 1.16 billion and has registered strong growth in the last decade. The Indian mobile
economy is growing rapidly and will contribute substantially to India’s Gross Domestic
Product (GDP) according to a report prepared by GSM Association (GSMA) in collaboration
with Boston Consulting Group (BCG). In 2019, India surpassed the US to become the second
largest market in terms of number of app downloads.

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 the top five employment opportunity generator in the
country.
India is the world's second-largest telecommunications market. The telecom market can be
split into three segments - wireless, wireline and internet services. Total subscriber base in the
country stood at 1,167.81 million as August 31, 2020. The wireless market segment
accounted for 98.29% of the total subscriber base as of August 2020. Rural subscribers
comprised 44.95% of the total telephone subscribers as of August 2020.
India is also the second largest country in terms of internet subscribers. India is one of the
biggest consumers of data worldwide. As per TRAI, average wireless data usage per wireless
data subscriber was 11 GB per month in FY20. App downloads in the country increased from
12.07 billion in 2017 to 19 billion in 2019 and is expected to reach 37.21 billion by 2022F.
Total wireless data usage in India grew 11.01% quarterly to reach 25,369,679 TB in Q1FY21.
The contribution of 3G and 4G data usage, to the total volume of wireless data usage, was
3.25% and 96.12%, respectively, in the first quarter of FY21. Share of 2G data usage
remained 0.62% in the same quarter.
Gross revenue of the telecom sector stood at Rs. 66,858 crores (US$ 9.09 billion) in the first
quarter of FY21. Strong policy support from the Government has been crucial to the sector’s
development. Foreign Direct Investment (FDI) cap in the telecom sector has been increased
to 100% from 74%. FDI inflow in the telecom sector totalled US$ 37.27 billion during April
2000-June 2020.  
The Government of India, through its National Digital Communications Policy, foresee
investment worth US$ 100 billion in the telecommunications sector by 2022.
Market Size:

India ranks as the world’s second largest market in terms of total internet users. The number
of internet subscribers in the country increased at a CAGR of 21.36% from FY16 to FY20 to
reach 743.19 million in FY20. The total wireless data usage in India grew 1.82% quarterly to
reach 25,227 PB in the third quarter of FY21.

India is also the world’s second-largest telecommunications market. The total subscriber base
in the country stood at 1,173.83 million, as of December 31, 2020.

Over the next five years, rise in mobile-phone penetration and decline in data costs will add
500 million new internet users in India, creating opportunities for new businesses.

LIST OF TOP TELECOM COMPANIES IN INDIA:

 BSNL
 MTNL
 Bharti Airtel
 Reliance Jio
 Vodafone Idea

FUTURE OF TELECOM INDUSTRY:

Revenue from the telecom equipment sector is expected to grow to US$ 26.38 billion by
2020. The number of internet subscribers in the country is expected to double by 2021 to 829
million and overall IP traffic is expected to grow four-fold at a CAGR of 30% by 2021. The
Indian Government is planning to develop 100 smart city projects, and IoT will play a vital
role in developing these cities. The National Digital Communications Policy 2018 envisaged
attracting investment worth US$ 100 billion in the telecommunications sector by 2022. App
downloads in India is expected to increase to 18.11 billion in 2018F and 37.21 billion in
2022F.

SWOT ANALYSIS OF TELECOM INDUSTRY:

Cutting-edge fiber-optics technology, high-

performing cable equipment, a respected
brand name, excellent customer service and
a strong sales team are just a few strengths
that boost the resource capabilities of a
telecommunication company. These
Strengths strengths are attributes that enhance the
company's competitive advantage.
Corroded cable lines, slow service and
lacklustre sales are three weaknesses that
can hurt a telecommunications company.
Company weaknesses are competitive
Weakness deficiencies that place the company at a
disadvantage in the marketplace. If
corroded cable lines aren't replaced and
 slow service continues, for example, angry
customers will switch to a rival
telecommunications company that offers
better services.
New technologies, increasing consumer
interest and a decrease in competition are
just a few external opportunities that can
really help a telecommunications company
Opportunities in the long run. Opportunities are
beneficial, outside events that a company
can use to boost its existing strengths. A
telecommunication company keen on
rapidly adopting new technologies, for
example, would highly benefit from
immediately investing in new fiber optics
the moment they're introduced in the
marketplace, especially if they speed up
service.
A sluggish economy, increasing
competition and increased government
regulations against the telecommunications
industry are just a few external threats that
can limit a telecommunications company's
future success. Threats are outside events
or influences that create future hurdles for
a company. New rivals that offer customers
fast service and cutting-edge technology,
for example, may lure an older
Threats telecommunications company's existing
customers away, especially if the older
company can't offer the same new features.

ACHIEVEMENTS:

Following are the achievements of the Government in the past four years:

 Department of Telecommunication launched ‘Tarang Sanchar’ - a web portal sharing

information on mobile towers and EMF Emission Compliances.
 Payments on unified payments interface (UPI) hit an all-time high of 2.30 billion (by
volume), with transactions worth ~Rs. 4.31 lakh crore (US$ 59.08 billion) in January
2021.
 Over 75% increase in internet coverage from 251 million users to 446 million.
 CHAPTER 3

INTRODUCTION OF COMPANIES