Internship Report (18MBA3NTOS)

“Organizational Study of Angel Broking”

(Desk Research during Covid Pandemic 2019)

By
KHETALKUMAR JAIN
USN: 1BM19MBA44

Submitted to
Department of Management Studies & Research Centre

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Internal Guide
Dr. MINU ZACHARIAH
Assistant Professor (Senior Grade)

Department of Management Studies & Research Centre

B. M. S. College of Engineering
2019-21
 CERTIFICATE

This is to certify that Khetalkumar Jain bearing USN 1BM19MBA44, is a

bonafide student of Master of Business Administration course in the
Department of Management Studies & Research Centre, B.M.S. College of
Engineering, Bengaluru (An Autonomous Institute under Visvesvaraya
Technological University, Belgaum (2019-21Batch). The Internship report on
“Organizational Study of- Angel Broking”(Desk research during Covid
Pandemic 2019) is prepared by him, under the guidance of Dr. Minu
Zachariah, in partial fulfillment of the requirements for the award of the
degree of Master of Business Administration of Visvesvaraya Technological
University, Belgaum, Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal

Name: Name: Name:

i
 DECLARATION

I, Khetalkumar Jain, hereby declare that the Internship report on

“Organizational Study of Angel Broking” (Desk Research during Covid
Pandemic 2019) Bengaluru is prepared by me under the guidance of Dr. Minu
Zachariah, Assistant Professor (senior Grade), Department of Management
Studies & Research Centre, B. M. S. College of Engineering, Bengaluru.

I also declare that this Internship work is towards the partial fulfillment of the
university regulations for the award of the degree of Master of Business
Administration by Visvesvaraya Technological University, Belgaum.

I have undergone an Internship for a period of Four weeks. I further declare

that this project is based on the original study undertaken by me and has not
been submitted for the award of any degree/diploma from any other University
/ Institution.

Place: Bengaluru

Date: 09/09/2020 Signature of the Student

ii
 ACKNOWLEDGEMENT

I take this opportunity to express my heartfelt thankfulness to all those people who
made this work a success and contributed to be a part of this project.

I want to express my heartfelt thankfulness to Dr. Minu Zachariah. Faculty,

Department of Management Studies & Research Centre, BMS College of
Engineering, Bangalore, for taking out time from their hectic schedule and guiding me
in the most warming and friendly manner.

I would also like to express gratitude to Dr. Shubha B N, Head of the Department of
management studies and Research centre for her guidance and constant supervision.

We would also like to express our gratitude to Dr. B. V. Ravishankar, Principal,

B.M.S. College of Engineering and Management for providing congenial environment
to work in.

I would like to express my thankfulness towards the members the Management of

B.M.S College of Engineering for their kind encouragement which helped me in
completion of this seminar.

Last but not the least I would like to thank our parents and friends for guiding us with
their valuable time and suggestion.

Sincerely

Khetalkumar Jain

iii
 INDEX

Chapter Description Page No.

1 Industry profile 1-3
1.1 Evolution of Indian Broking industry 2-3
2 Company Profile, Introduction and History 4-33
2.1B Major Events and Milestones of the company 7-8
Awards and Accreditations Received by the
2.1C 9-10
company
2.2 Vision and Mission 11-13
2.3 Businesses of Angel Broking 14-15
2.4 Organization Structure 16
2.5 Products and Services of Angel Broking 17-31
2.6 Future Growth and Prospectus 32-33
3 Current Strategies 34-35
4 Frame Work 36-48
4.1 McKinsey’s 7s model 36-38
4.2 SWOT analysis 39-40
4.3 PESTEL analysis 41-43
4.4 Financial statement analysis 44-48
5 Knowledge Acquired 49-51
Bibliography 52
Annexure 54-55

iv
 LIST OF TABLES

Table.
Description Page No.
No.
2b List of Board of Directors 6
4a Angel Broking Balance Sheet 44-45
4b Angel Broking P&L Account 45-46
4c Key Financial Ratios 46

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 LIST OF FIGURES

Page
Fig. No. Description
No.
1.1 Evolution of Broking Industry 3
2.2a Meaning of Company Logo 11
2.2b Vision of Angel Broking 12
2.2c Business Philosophy 12
2.3 Acquisition of Clients 15
2.4 Organization Structure 16
2.5a Flash News 19
2.5b Research Advices 20
2.5c Portfolio Management Service 22
2.5d Mutual fund Advisory 27
2.5e IPO Advisory Service 28
3.1 Referral Program 34
4.1 McKinsey’s 7s Model 36
4.2 SWOT Analysis 39
4.3 PESTLE Analysis 41

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 CHAPTER -1

INDUSTRY PROFILE

The world‟s top and most influential stock market –NewYork Stock Exchange (NYSE), was
started initially under a tree for trading purpose, 200 years ago. Today the market is known as
68 Wall Street. Similarly the premier stock exchange of India, Bombay Stock Exchange
(BSE) was initially started as a nonprofit making organization voluntarily. It was started
around 1875 and is also known as Dalal Street. Similarly various such stock exchanges are
there in different countries like Tokyo Stock Exchange of Japan, Shangai Stock Exchange of
China, London Stock Exchange of Britain, etc.

Here in stock exchanges, shares of different public limited companies are traded (Buy and
Sell). Stock exchange is an aggregator or a well organized platform for member brokers,
individual investors, institutional investors to trade securities like bonds, stocks, options,
derivatives etc, it acts as prime central source to satisfy demand and supply. For example, if
someone wants to buy or sell shares of a specific company then he need not go to that
company instead he can do the transaction through stock exchange. In a simple way if
someone wants to buy shares of SBI bank he should approach stock exchange through his
broker to carry out transaction. Then that certified broker escalates transaction on behalf of
his customers through stock exchanges like BSE and NSE. All stock exchanges carry similar
works like listing of company shares, then allowing them for trade. They act like auction
markets, where price is determined through competitive bidding.

Then a question arises in mind that how did it start long back? The need was realized by
looking at early trading activities in commodities and agricultural sector. Earlier in Middle
Ages, people understood that it‟s easier to issue notes, bills or supporting documents which
acts as a credit proof of trading activity. The story starts from the French Stock Exchange
which is the earliest (12th century) among the world‟s stock exchanges where trades were
getting executed through commercial bills.

Bombay Stock Exchange (BSE) is the first stock exchange started in the Asia, which is
presently a premier stock exchange of India, was established in 1875 as „The Native Share
and Stockbroker Association‟. Next, The Ahmedabad stock exchange was started in 1894.
Later Calcutta Stock Exchange came into existence in 1908. In 1993 the National Stock
Exchange (NSE) was established which was promoted by the leading financial institutions.

1
Today NSE is the second major stock exchange in India. Later many such exchanges were
established in big cities of India. Now presently 6 stock exchanges are working which are
Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Calcutta stock Exchange
(CSE), Metropolitan Stock Exchange (MSE), India International Exchange (India INX) and
NSE IFSC ltd. About 20 regional stock exchanges which were established in India earlier got
exited from the business later.

Today all the global stock exchanges have transformed into digital platform through
computerization, which became highly efficient to trade. The brokers also came up with
online web and mobile applications to enable easy trading for its clients from earlier
traditional trading. It enables clients to trade on their own at any time in market hours, just
registering with broker. It‟s highly easy to buy and sell shares where trades get execute
within 1-5 seconds. This digitalization has revolutionized this industry where many people
started entering in as it was easiest and convenient way to trade. Earlier traders used to call
their brokers to place their orders through telephones and Fax, which was taking time to
confirm trades and there was possibility of fluctuations in price to that of thought to buy.

Now in industry mainly there are 2 different kinds of brokers: Full service brokers and
discount online brokers. Full service brokers are those who initially had broking firm before
digitalization. These brokers permit its customers to either place online digital orders or an
alternative to talk with their broker to place orders on customers‟ behalf. Here brokerage
rates are generally high and they are mainly backed up by financial institutions. Examples
like ICICI securities, HDFC, Angel broking, etc. Discount brokers are those who allow their
customers to trade through online portals at lower brokerage charges. Examples like Zerodha,
Upstox, etc.

Most trading transactions in India takes place only on two stock exchanges, BSE and NSE.
It‟s because about 5518 companies are listed in BSE as on February 2020 and 1799
companies are listed in NSE as on 31 Dec 2019.

1.1 EVOLUTION OF INDIAN BROKING INDUSTRY

Until 1994 transacting in Indian share (stock) market was mainly dependent on a system
where telecommunication between stock exchanges and professionals used to take place at
trading floor. It was like shouting or making any hand gestures to buy or sell the stocks.

2
After the start of NSE in 1994, Indian stock market entered into new era of screen based
trading. Within a short span this was adopted in almost all the stock exchanges in the
country. It was referred as open electronic limit order book market system. In current
environmental situations the companies are trying to give better technology with better
efficiency to reduce cost of operations.

With advancement in technologies like Internet of Things, Artificial Intelligence, now trades
can use machine algorithm to execute. The buying and selling through artificial intelligence
has totally changed the markets demand and supply law. AI works efficiently with high
accuracy where thousands of transactions take place in a single server of various broking
houses. Now the people are building Algorithms where they feed every info like entry price,
exit price, target etc in form of programs where transaction automatically executes on its own
according to predefined conditions. There is no need of human intervention.

Figure 1.1 Evolution of Indian broking Industry

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 CHAPTER-2

COMPANY PROFILE, INTRODUCTION AND HISTORY

The Angel Company was founded by MR. Dinesh Thakkar. He initially started trading to
earn money to use it for his own independent enterprise. Later he understood the opportunity
available in the market offered by retail individual investors and hence started India‟s first
stock broking house as team of 3 members in 1987 which was mainly focusing the retail
investors. Today it‟s managed by more than 3000 employees who have a wide network
nationwide with about 42 regional hubs, more than 110 branches and about more than 11000
sub brokers and tens of business associates.

The Angel Company has started its journey in 90s and now it‟s among the top 5 retail stock
broking service provider house in India. It has membership of both equity exchanges NSE
and BSE and also with top leading commodity exchanges MCX and NCDEX. Angel Broking
Company is registered with CDSL as a depository participant.

The business is carried out under the circulars, rules and regulations prescribed by various
governing bodies like SEBI, RBI, PFRDA, CCRL, IRDAI, CDSL, NERL, AMFI and
exchanges also under the terms and conditions of approvals of regulatory authorities,
licenses, permissions and registrations obtained for business operation.

The big size and their strong balance sheet enable them to cater customer with varied
/different products and services at very reasonable prices. About 750 relationship managers
are always dedicated to serve the customers to their unique needs. The company is lead and
managed by a high class management team which has invested millions of rupees to build a
world class infrastructure which caters its clients 24*7 access to its products and information
and real time service. It offers real time pricing and news, detailed data, electronic trading
capabilities, intelligent analytics right at the fingertips. This
Their flagship Angel Broking Professional Network offers real-time prices, detailed data and
news, intelligent analytics, and electronic trading capabilities, right at fingertips. They are
working hard to create world class smart investors.

4
Angel broking provides full range of products and financial services ranging from derivatives
to equities (both offline and online trading), mutual funds, insurances, equity research,
financial planning, demat account and many more to achieve individual financial goals. The
client relationship managers are always available to help their customers to reach their
investment needs by financial planning. It‟s well supported by a team of professional, quality
research and operational back office. It provides whole access through multi channels like
web, applications etc to access their services and products.

The company now serves to more than 1 million customers (retail clients). It provides extra
value added services without charging for them, where customer satisfaction is their top
priority. The electronic broking is one such example where investors access market with a
single platform to trade on fingertip. It always strives to bring innovative products and
services to their customers. Its pioneer in introducing various different technologies which
adapt to customer needs.

Angle is considered as a premium stock broking and wealth management house with
commitment “Real value for real money”. It‟s showing its presence across India adopting
various strategies like opening up new branches, creating a new team of sub brokers, tie ups
with so many financial institutions to provide various products etc.

Registered Office Corporate Office

G-1, Ackruti Trade Center, Road No -7, 6th Floor, Ackruti Star, Central Road -
MIDC, MIDC,
Andheri (E), Mumbai - 400 093. Andheri (E), Mumbai - 400 093.

Tel: (022) 2835 8800 / 3083 7700 Tel: (022) 3935 7600

Table 2a Office Address

5
2.1A BOARD OF DIRECTORS

The Board of Directors of the Company comprises of the following:

NAME DESIGNATION

DINESH D. THAKKAR CHAIRMAN AND MANAGING

DIRECTOR

VINAY AGRAWAL DIRECTOR AND CHIEF EXECUTIVE

OFFICER

UDAY SANKAR ROY INDEPENDENT DIRECTOR

KAMALJI SAHAY INDEPENDENT DIRECTOR

ANISHA MOTWANI INDEPENDENT DIRECTOR

KETAN SHAH NON-EXECUTIVE DIRECTOR

Table 2b List of Board of Directors

6
2.1B MAJOR EVENTS AND MILESTONES OF THE COMPANY

 In 1996 the company was incorporated as a private limited company.

 In 2001 angel broking converted its back office from offline mode to website mode
(online).

 Later in 2004 angel broking started to give its service of trading in commodities and
in the same year company came up with online trading platform to serve customers in
a better way.

 In 2006 the company had successfully crossed the milestone of registering 100,000
online trading accounts by its customers.

 Later in the same year 2006, the company came up with a new unique system of
providing portfolio management service and successfully created 2500 sub brokers
network.

 In 2007 the company registered itself under NSE as a member, and also reached a
milestone of registering 200,000 customers with online trading accounts.

 Later in the same year 2007, company got a new investor IFC to invest in its business
and also company started to provide life insurances services by acting as a broker.

 In 2008 company reached a milestone of registering about 500,000 customers with

unique online trading accounts.

 In 2009 the company registered with AMFI to provide services related to mutual
funds to its customers.

 In 2011 the company came up with a mobile application to provide online trading
service to its customers.

7
 In 2015 the company initiated a service called e-KYC where details of customers
were verified online.

 In 2016 the company came up with many more services like, ARQ a hyper intelligent
investment engine, started to deploy chat bots on social Medias like Twitter and
Facebook.

 In the same year 2016 company initiated a service of d-KYC and came up with an
idea of „Trade in one Hour‟ for its new joining customers.

 In 2017 the company successfully reached a milestone of Average Daily Turn Over
(ADTO) of 100,000 million.

8
2.1C AWARDS, ACCREDITATIONS AND ACCOLADES RECEIVED BY THE
COMPANY

 Angel Broking Company has been awarded „Major Volume Driver‟ award by BSE in
the following financial years
2004-05
2005-06
2006-07
2007-08
2008-09
This award is mainly given to a broking house which generates maximum transaction
in terms of volume.

 Angel broking company has been awarded „Broking House with Largest Distribution
Network‟ award in the following years
2009
2013
2014
2015
This award is mainly given to a broking house which has established a better and
large network of distribution of its services.

 Angel broking company has been awarded „Top Volume Performer in Equity‟ by
BSE in the following financial years
2009-10
2016-17
This award is given to the broking houses which generate high volume of trading by
transactions in equity segment.

 The company has been awarded „Broker with best commodity research‟ award in the
following years
2011
2012
This award is given to broking house which provides an excellent research service in

9
 commodity segment and help customers to earn good returns.

 Angel broking company has been awarded as one among the „Top Ten Performers in
Equity segment‟ award by BSE in the following years
2011
2013
2014
2015
This award is given to broking houses which are among top 10 in generating good
transaction in equity segment through its customers.

 It also has got many awards like

„Star HR Practitioner‟ in the year 2015
„Best Mobile Trading App‟ in the year 2016
„Best Performing Retail Member” by NSE in 2019
„Great Workplace‟ for its employees to work in 2018, 2019
„Award for Technology Effectiveness‟
Etc.

 It also got many awards for performing best in various segments like
Best market analysis for futures and commodities
Best trading platform
Best innovation for its ARQ service
Better trendsetter
Best marketing campaign
Etc.

10
2.2 VISION and MISSION

Figure 2.2a Meaning of Company Logo

11
 Figure 2.2b Vision of the Company Figure 2.2c Business Philosophy

MISSION

To create long term value by empowering individual investors through superior financial
services supported by culture based on highest level of teamwork, efficiency and integrity.

CUSTOMER PROMISE

They are passionate about their customer‟s success and promise to deliver exceptional
service with every meeting, interaction and dealing. They strive to offer simple,
straightforward, friendly and trustworthy service. They are a financial company with a
different attitude.

12
CRM POLICY

“A Customer is the most Important Visitor on our premises. He is not dependent on us, but
we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is
not an outsider in our business. He is part of it. We are not doing him a favor by serving him.
He is doing us a favor by giving us an opportunity to do so.”

- Mahatma Gandhi

QUALITY ASSURANCE POLICY

We are committed to provide world-class products and services which exceed the
expectations of our customers, achieved by teamwork and a process of continuous
improvement.

2.2A INVESTMENT PHILOSOPHY OF ANGEL IS BASED ON 2 KEY ATTRIBUES:

i. CREATION OF WEALTH:
It can be categorized as:

 Making money to work for client

 Making employees to work for clients
 Making clients to work for good returns

ii. PRESERVATION OF WEALTH:

Focus is shifted to make a balance between creation of asset and preserving it safely with low
risk as wealth grows. It applies for everyday and everyone‟s financial life where people find
it hard to manage risk with handsome returns.

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2.3 BUSINESSES OF ANGEL BROKING
The main principle business is broking and advisory services which are complemented by
distribution of financial products like health and life insurances.

BROKING AND ADVISORY

i. Broking and Advisory

Customers trade in cash –intraday, cash-delivery, indices derivatives, and stock derivates through
different order type like stop loss order, market order, limit order, after market order, etc. They also
provide facility to participate in Initial Public Offerings
 Stocks (Equities): listed stocks on NSE and BSE.
 Stock (equity) derivatives: Options and futures related to stocks and indices which are
listed on stock exchanges.
 Currencies: Future and option derivatives in Euros, USA dollars, British pounds etc.
 Commodities: Future and option of commodities which are listed on NCDEX and
MCX

ii. Acquisition of Clients

The business of broking and advisory is anchored by retail customers to whom angel offers services
and products through
 Digital /online platforms.
 As of 2018 June 30, there‟s a network of more than 11000 sub brokers
 More than 110 branches across India and
 Dedicated customer service providers at helpdesk at various service centers like
Mumbai, New Delhi.
 Clients need to open Demat and trading account in order to avail all these services.
The process of account opening is very easy with paperless KYC process.

Acquisition of customers is either done directly by angel team or else by network of sub
brokers. This might be either done through paid leads or organic leads by both offline and
online channels by dedicated team.

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 ACQUISITION OF CLIENTS (directly)

ACQUISITION OF CLIENTS (By sub brokers)

Figure 2.3 Acquisitions of Clients

A standardized and understanding digital sales pitch is given to its customers depending upon
their area of interest and familiarity with markets. The aim of sales pitch is to give details of
services and products offered by Angel. The company also provides so many benefits to its
new customers like vouchers, free courses on financial markets etc. The company mainly tied
up with so many financial institutions like banks, Insurance and mutual fund companies to
give all services in a single platform. They give an easy way of loading and withdrawing
funds from the platform and also they are tied up with banks to even safeguard loaded money
and in turn to provide savings interest based on their policy.

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2.4 ORGANISATION STRUCTURE

Central
support office
(CSO)

Regional Office Regional Office Regional Office

Branches & Branches & Branches &

Franchise Franchise Franchise
Branches Branches Branches

Business
Angel Clients Associates

Angel Clients

Figure 2.4 Organization Structure

Here main central support office managed by top management level advises regional
branches to carry out the operations in order to meet the goals, aim and mission of the
company. In turn each head regional offices assist further branches which are located in
cities. They are further connected to help the clients to resolve the issues and help carry out
their transactions. Here even sub brokers are part of company who are building client base.

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2.5 PRODUCTS AND SERVICES OF ANGEL BROKING

A. ONLINE TRADING (INVESTMENT ADVISORY SERVICES)

B. PMS (PORTFOLIO MANAGEMENT SERVICES)
C. COMMODITIES
D. MUTUAL FUND
E. IPO ADVISORY
F. DP SERVICES
G. INSURANCE
H. PERSONAL LOANS
I. QUALITYASSURANCE

A. INVESTMENT ADVISORY SERVICES

To obtain best returns from equities and assets one should require best professional guidance
and advice. It will be always beneficial for creating good wealth. Decisions made in
investment without having expert advice will be like treating a patient without a doctor.

 Expert’s advice: The experts in investment advising are available at various branches
throughout India to give best assistance in creating and maintaining portfolios

 Entry and Exit at right time: The advisors will regularly monitor the investments of
the customers and assist them to book timely profits. They will also help customers in
selecting and switching from one stock to another based on various market
conditions.

 Risk proof Portfolio: A Portfolio which is diversified into various industries stocks
is always better than the Portfolio which is concentrated in a single industry or stocks.
The Experts always helps in creating a diversified portfolio in growth oriented sectors
which will give best returns with minimum risk appetite.

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 i. PRODUCT & SERVICE DETAILS AND PORTFOLIO

REPORTS:

 The outlook of the market @ 9:15 AM

 Technical analysis report @ 6:00 PM

 Derivatives and options analysis report@ 9:15 AM.

ii. FUNDAMENTAL ANALYSIS SERVICES:

 THE WEEKLY REPORT ON SUNDAY:

It‟s very important report which predicts the market for upcoming week ahead. Its
gives idea or overview of trends to be followed in various industry and stocks. It
consists of some top picks which are filtered after in depth fundamental and technical
analysis by the experts in the industry. It also consists of some short and long term
outlook of various stocks with their targets and stoploss with trading strategies. It also
provides information of top 70 stocks and their most probable movement.

 THE INDUSTRY WATCH:

It‟s a report which provides in depth knowledge with analysis of some specific
industries which are predicted to perform outstandingly in the market economy. Its
takes care of strengths and weaknesses of each industry, analyses its future scope.
Then the experts arrive at final view through various interactions. It also evaluate and
provides information about peer competitors in the same sector and recommends
some stocks which are said to be Top picks.

 STOCK(SCRIP) ANALYSIS:
The stock research team of Angel has performed well over these years and their
portfolio has performed outstandingly with the benchmark indices. Here each stock is
thoroughly analyzed and its movement is predicted for investments to earn a healthier
return.

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  FLASH NEWS:
The significant
developments and the
announcement of news
related to various
companies play an
important role in market to
decide its movement. So
news are flashed separately
on trading platforms to have
an eye on developments and
act accordingly to buy, sell
or to hold the shares

Figure 2.5a Flash News

iii. SERVICES OF TECHNICAL RESEARCH:

 NIFTY TRACKER:
The most traded Future and Option instrument with highest volume is the Nifty
Future, which has excellent liquidity. Here the research team tracks the instrument
and give calls based on various strategies which show at trading platform. The main
objective of this is to provide good returns for the traders who are ready to bear high
risk for high returns.

 ONLINE CHARTS:
It‟s a platform for the clients to predict or judge the direction of stock movement and
the market. It also gives the information of past data so that traders can use it to
analyze.

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 DAILY TRADE CALLS(INTRADAY):
It‟s a service where platform gives Intra-day calls on specific stocks with entry,
target, stop loss (exit). These are flashed under the terminal of research services. The
analysts continuously track the recommendations given and update information on
movements.

Figure 2.5b Research Advices

 SHORT TERM CALLS(POSITIONAL):

The positional calls meant for short term trading or investing. Here team analyses
stocks mainly on technical basis and provides call with Good entry, target and exit.
It‟s mainly meant for 10-15 days of investment.

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  DERIVATIVE STRATEGIES:
The analysts track the derivatives of various stocks and indices data and analyze them
with various tools and indicators to use suitable strategies. They are notified under
research main.

 FUTURES CALLS:

Futures are the derivatives of stocks and indices available in lots with specified
quantity with good margin and leverages where people can buy more number of
stocks in least amount but with a expiry date. So here calls are provided on Futures
based on their performances and trends.

iv. INVESTMENT ADVISORYDESK:

 Angel has a good dedicated investment advisory Desk:-

 To help in creating good portfolios for its clients and help in creating good wealth.

 To make their clients to understand the risk profile associated and make them to be
aware of their Investments.

 To help in maximizing the clients returns and minimizing the risk.

 To assist their clients what and when to buy and sell

 To give knowledge about micro and macro economic trends and industry and
company wise developments.
 To assist clients to always filter out their portfolio with change in time to build a
better and sounded portfolio.

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 B. PORTFOLIO MANAGEMENT SERVICES:

It requires more time and expertise to

successfully invest in capital markets.
Investment management is science and
arts itself. Angel broking offers a unique
Portfolio Management Service to its
customers (Investors) to help them in
managing funds and building low risk or
risk proof portfolio even in the
continuous changing or volatile market
conditions. It requires in depth
knowledge and capability to understand
both domestic and international
economies to invest in Equity market
through various analysis. So Investors are
in the need of such experts who can
provide such services in managing their
funds and deliver or provide good returns
in diverse and fluctuating market
conditions. Creation of continuous wealth
and protecting the investment is a big
challenging task in the financial markets.

Figure 2.5c PM Service

The PMS with combined competent fund management, excellent research and technology
always ensures a best rewarding experience for its customers (clients)

To diversify the positions and the holdings of customers systematically across different sectors
with an aim to earn good returns ,Angel broking came up with a unique concept of Model
Portfolio:-

 The Model of Portfolio was first introduced by angel in Aug 2002

22
  Its portfolio models always outperformed the Sensex and Nifty Year on Year.

Angel PMS advisory team has track record of successfully assisting their clients for about 4
years. The PMS process begins with understanding the risk appetite of each investor and
their return expectations. It also gives new ideas in investing in different stocks with latest
changes in market behavior. Its objective is to earn handsome returns over the time period of
12-18 months with minimal risk.

i. PORTFOLIO MANAGEMENT SCHEMES @ ANGEL BROKING

Scheme 1: Angel Oyster

Description:
The important objective is to create wealth by generating superior returns for its clients over
long time through various investments in equity related instruments.

Investment Strategy:
 Consistently generating wealth rather than aiming towards high returns by taking high
risks.
 Early stocks identification to walk through its entire investment cycle.

 Investment timing is very important to earn higher or good returns.

 Having bottom up approach.

Investment decisions driving parameters:

 Blend of stocks which hold both value and growth. .
 Investment in good and sound companies without consideration of its market capital.
 Eagle view in selection of potential stocks for unblocking its value through following
key events.

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  Companies to be focused which displays
 Scalable or increasing potential business

 Availability(opportunity) of large market

 Economic cycle favorable
 Available at steep discount which has good valuation
 Investors profile in liquid funds:
 The most importance is given towards safety of capital
 The scheme is suitable for those investors whose perspective is medium or long term
investment (12-18 months) ,

Scheme 2: Angel Blue- Chip

Description:
The main objective is to create appreciation in capital employed in medium or long term by
investing predominantly in equities of large cap companies and related instruments.

Strategy of investment:

 The scheme focuses to earn good returns by investing in best brand company equities
by creating a portfolio of diversified equities.
 The important focus on portfolio is to allocate 80% of investment into large cap
companies
 Mid cap stocks which have a better quality in market can also be considered.
 The combination of both value and growth stocks are considered for portfolio.
 The maximum limit of investment in any single industry should be 25% of portfolio
size.
 The maximum limit of investment in any single stock is restricted to 10% of portfolio
size.

Profile of Investors:

 Its best suited for moderate risk appetite investors, who have medium or long term

24
 investment plans.

Benefits of PMS :

 The most importance is given to understand the level of risk that an investor is ready
to take.
 Periodic evaluation is to be carried to consider market movement of stocks in
portfolio and assistance is given according to that.
 Here full on operational /administrative support is provided with good customized
services
 Regular updates with investment statements and access to information is given.
 Regular monitoring and analysis is carried to check deviations from target set to
minimize the risks to safeguard the capital.

Ideal for:

Requirement of PMS for investors

 Generation of wealth with long term perspective.

 To grab the opportunities available in investing Indian equities.

 Investment decisions based on fundamental research and little technical research.

 The investors will find Angels PMS as a good service to reach their goal of
investment if they have belief and faith in the Indian economy and equity market
growth story.

ii. ANGEL GOLD:

For an investor it‟s very difficult in a volatile market to choose the right value stocks which
may give good returns in the long term. So this need is realized by angel and they created a
service named Angel Gold where Professional financial advisors assist investors in achieving
wise and profitable decisions.

25
They firmly believe that the right decisions taken at right time are beneficial most of the
time. That‟s why research team consisting of 12 different sector experts (specialist) with head
of research makes out the need in making good return expectations, risk appetite to create a
best portfolio. This portfolio is kept under tracking to optimize in earning best returns in long
term.

Angel Gold‟s features:

 The premium service is provided to those clients who are in need of professional
guidance to earn handsome returns on long term investments.
 The minimum investment in the portfolio is fixed at 1 lakh Rs and maximum is
capped at 4 lakh.
 Risk profiling is done appropriately before letting investors to invest.
 Regular seminars and group meetings are done in branches.
 Monthly newsletter is sent from the Angel Gold‟s desk.

 Back office software facility is provided which is backed up by browser access.

C. COMMODITIES SERVICES:

 Tech speak on Agro:

It mainly provides information about forecast of agro commodities like Pulses (

chana, urad,etc) ,oil complex reports (castor, soybean etc) along with spices and the
kapas guard seed reports.

 Evaluation of call:
A well designed report for call evaluation is given, which is classified into 3
categories-Triumph, achieved, not achieved with recommendation of trades.

26
  Tech speak of commodities:

The report mainly includes the investors who deal with MCX category in
commodities like silver, gold, copper, crude oil etc with insights of market and
expert‟s recommendations on various trading strategies.

ADVANTAGES OF ANGEL COMMODITY:

Best quality research:

 The rich industry experienced and professionally qualified analysts.

 Research on various 25 agro commodities, base metals, precious metals, polymers

and energy products.

E-Broking:

 Customized market watch in a single screen for MCX and NCDEX with NSE/BSE.
 Streaming intraday calls and quotes.
 Facility of Depository Participant in trading commodities on CDSL
 Online back office available for 24*7
 An excellent risk management.
 Highly competitive and comparable brokerage rates

D. DISTRIBUTION OF MUTUAL FUNDS AND ADVISORY:

For diversification of investments in proper

direction for its clients, Angel broking came
up with added value product service with
mutual funds,

Figure 2.5d Mutual Fund Advisory

27
Based on financial goals of individuals and their risk appetite, customized solutions of
investments can be given.
 Selection of proper diversified funds based on investors preference with access of in
depth research.
 Desired frequent reports which are highly customized.

 Rankings and ratings of various Mutual Funds given by expert analyst.

 Comparison of various fund‟s historical and current performance.

 Alerts and news for investor‟s portfolio of mutual fund and tracking performance
with watch lists

 Online applications for mutual funds (existing or NFO) /Tracking the status of online
orders / Online updating of holdings in units at recent NAV / Online facility for
reinvestments and dividend payout.
 Handling customer queries at single platform point.

E. ADVISORY AND DISTRIBUTION OF IPO:

 For better customer services they have wide network

of branches.
 Research teams which are highly dedicated in
generating sector wise reports.

 Easy way of investing with informed and collective

decision making.

 Help desk for queries related to all IPO.

Figure 2.5e IPO Distribution

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 F. DEPOSITORY PARTICIPANT SERVICES:

Angle platform is also a depository service provider through CDSL. They offer this service
to enable seamless and uninterrupted transactions to carry out trades and settle these.

 Automated hassle free pays in for sell obligations of clients.

 Quick disbursement of rights and bonus like non cash benefits.
 High coverage with wide branch network.
 Attentive or personalized services by trained and dedicated staff.
 Centralized accounting and billing.
 Execution of various instructions by accepting on Fax.
 Lowest transaction charges and zero upfront payment.
 Statements of daily transactions and holdings on E-mail.
 No extra charges for holding and transaction statements.

G. OTHER (EXTRA) FINANCIAL SERVICES

Apart from broking and advisory services, Angel broking also provides some extra facilities
like non margin trading, margin funding, and distribution of health, life insurances and
mutual fund products.

i. Facility Of Margin Trading And Non Margin Trading For Clients

Angel provides facility of margin trading to their customers to leverage their collaterals, by
enabling funding in the cash delivery instrument segment of equities. It‟s subjected to
exposure against margins.

ii. Activity Of Distribution

Here Angel platform mainly distributes third party life and health insurance products, mutual
funds to its customers. Angel gets earning in form of commissions for distribution of these
financial products which is recurring and meant for long term.

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 a. MUTUAL FUNDS
Angel follows “open-source” model of distribution where they deliver the service for its
clients to buy mutual funds of third parties. According to data available they distribute about
36 different mutual fund schemes. Its platform also provides various tools and information
which helps clients to choose a better fund and invest in. The tools includes ratings of each
mutual fund, historical performance and many other which gives a clear idea to its
clients.(like high risk –high return, medium risk –medium return etc). The revenue earned by
these products is considered under its AUM segment.

b. HEALTH AND LIFE INSURANCE

One of its subsidiaries, AFAPL is registered as an agent with IRDAI which distributes
different types of health and life insurance policies like Term insurance, Group life
insurance, Money back policy, etc. They are currently tied up with different insurance
companies like ICICI prudential life insurance corporation ltd, Aditya Birla sun life
insurance co ltd, HDFC standard life insurance co ltd etc.
In sector of general insurance, Angel offers health insurance products of various companies
like Cigna TTK health insurance co ltd, Apollo Munich health insurance co ltd, and Bajaj
Allianz life insurance co ltd.

iii. Loan Against Shares

They also offer loans against shares as prescribed or approved list of securities, depending
upon regulations prescribed by SEBI and RBI on margin.

iv. Smart Money Platform( Educating Its Clients)

The website www.angelbroking.com is also a knowledge centre which gives education and
knowledge to its clients regarding financial market (investing and trading).They also
periodically conduct seminars ,webinars for its clients to make them understand scenarios of
future growth of different industries and letting them to know the opportunity of successfully
investing in commodities ,equity derivatives, currencies, equities. They also help in learning
different technical and fundamental approach towards different sectors and how to come up

30
with strategies to make some handsome money.

They separately have a team which mainly focuses on educating their clients in the Futures
and Options segment as its main segment to earn money and double up ROI within small
time. The team is certified by SEBI and also the national institute of securities market who
are well trained under this segment.

They also have a facility of blog where they generally provide the future predictions on
various financial products with fundamental and technical approach where its clients can
follow and act accordingly if they understand. They also help in learning how to build risk
proof portfolio with changes in markets and how to identify the bullish and bearish industries
based on market economy and psychological influence.

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2.6 FUTURE GROWTH AND PROSPECTUS

FUNDAMENTAL GROWTH DRIVERS

 Trajectory of Growth of India’s Population: As per 2011 census, the population of

India was about 1.2 billion and nearly comprised of about 246.00 million households.
The population grew about 18% from year 2001 to 2011, and in future it‟s expected
that it will reach to 1.4 billion that is 11% increase from 2011 to 2024.

 Urbanization: Our country India has very low rate of urbanization when it is
compared with other Asian countries such as Japan, China, and Thailand. The urban
population has been raised to 33.50% in 2017 that from 28.80% in 2004.And increase
in percentage of urban population will results in increase in per-capita GDP. This will
result in higher demand for the financial products.

 Financial Products Demand Is Increasing In Rural And Semi Urban Areas:

Increase in the demand for financial products from non metro cities are due to the
following reasons, such as increase in financial literacy, Jan dhan bank accounts,
awareness, and mobile penetration. According to CRISIL Research it's expected that
technologies are used to reduce the cost of reaching out to smaller markets
progressively. So as awareness among the people will start to increase will result in
huge growth of these financial market products.

 Growth Has Been Predicted In Household Financial Savings: Historically India

has been and expected to continue to be a high savings economy country. To increase
the rate of house hold savings gradually there should be increase in income and
inflation should be under control. Though in year 2011-12 the share of household
savings remained subdued, the proportion of financial savings has been increased so
people tend to use it to buy the financial products to secure their lives.

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 As of 2017 the accounts of bank deposits and shares has been found 60% and 10%
respectively among the total financial savings. Due to digitalization and lower
currency in market post demonetization, investment has been increased in capital
markets
As interest rates on FD‟s are decreasing, the people are finding other best ways to
earn more returns so they are moving towards financial products like Mutual funds,
buying company shares for long term.
The banks are failing to perform well , filing bankruptcies and have higher percentage
of NPA , so people are losing trust on banks and finding other better ways of savings
and investing.

 Digitalization: It‟s expected that technology will play a crucial role in bringing the
financial sector to next level. As the median age of Indians is about 28 and people are
tech savvy so people tend to access knowledge and are capable of making
transactions at fingertip. As the world is under the boom of digitalization the services
are available at a single click which will make the companies to have access over its
clients in an easiest way that too in cheap cost.

 Mobile & Internet penetration:

India is seeing a faster shift towards digital platforms due to high mobile penetration,
high speed data at cheaper rate, supported in turn by bank and Aadhar linkage
facilities. About 78% of Indians use mobile phones where 35% among them are
Smartphone users. So people depends on these digital devices to get served from
various industries, which is also a boon for financial market to attract people with
least efforts.

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 CHAPTER-3
CURRENT STRATEGIES

STRATEGIES

Angel trade and Angel Diet are mainly concentrated on the opportunities to capture
significant growth in the financial market by providing better financial services to its clients.
And below are some strategies that Angel is following to acquire greater market share

i. Referral programs to its clients: It‟s a beneficial program to its clients where Angel
pays referral bonus and vouchers who brings new clients on board by referring them.
It‟s the one of the best reliable and cost effective strategy employed by everyone
which helps in attracting the new bees.

Figure 3.1 Referral Program

ii. Acquisition of new clients: A lot of campaigns are started to attract new bees by
providing them free trading and demat account that too with zero brokerage charges
for first 30 days transactions, free learning, providing them so many different

34
 company vouchers, by providing free access to so many platforms, by giving free
research on stocks to invest in, by giving free intraday calls, by conducting free
seminars and free webinars to impart knowledge. The all above means create an
magnetic field to attract new clients to join to take company services.

iii. Retention program: It‟s very important to retain the customers than hunting for new
customers to join. So Clients are retained on the platform by offering margins and
leverages on various segments like equity trading, future and options trading etc. It‟s
a process of keeping customers in by providing so many facilities so that they don‟t
think of switching to another broker.

iv. Improving and adapting to new technology: The Company has developed its
platform with an excellent technology where its uses Artificial Intelligence, Internet
of Things to carry out the transactions. It‟s improving its existed technology to assist
its traders and investors. It‟s trying to develop its own algorithm to help the clients to
build their own strategies to trade.

35
 CHAPTER-4
FRAMEWORK

1. McKINSEY’S 7S FRAME MODEL

Figure 4.1 McKinsey‟s 7s model

The model is very important which connects 7 elements which need to be reinforced and
aligned mutually for better performance of an organization. If something changes in a single
element then all others should be aligned in accordance with that to have optimum
performance of an organization.

These 7 elements are classified mainly into two types, they are Hard and Soft. The elements
shown above in light green colour are hard and are easy to find out (identify).The elements
shown in yellow are soft which are intangible, hence it becomes difficult to influence these
elements. An effective organization should achieve a balance between all these hard and soft
elements.

36
The elements of 7s model are:

i. STRATEGY: It‟s an action plan to defend against any changes in internal and
external environment. The various strategies are made in the company angel to drag
the customers to use their product and services. The strategies like charging lower
brokerages on transactions etc help them to build client base.

ii. STRUCTURE: It‟s a format of distribution of services, roles and responsibilities on

forecasting the things. It‟s a standard format where different companies follows
different one based on their product and services. Here angel follows a horizontal
structure where many different experts provide services to its client base.

iii. SYSTEM: It consists of informal and formal procedures which enable organizations
to carry out functions. Its supports structure and strategy. There are various systems
in angel organization like,
Risk management system: which helps clients in building portfolio by understanding
their risk appetite?
Order execution system: enables its clients to execute their transactions either on apps
or by through their agents.
Management information system (MIS), which controls all the operations in form of
applications, technological documents, etc.
Merit rating system, which identifies sales and grants appraisal automatically based
on performance.

iv. STYLE CULTURE: It‟s a style or culture of an organization to follow specific

approach. Top Down decision making is a type of approach where decision maker, an
executive or management body makes a decision. Then the information is transferred
to their lower hierarchy to manage things as per decision taken. Here angel follows
the above approach where decision is taken by higher management and employees
should work accordingly to fulfill the objectives of the decisions to reach out goal.

v. STAFF (HUMAN): It‟s very important element of an organization which works hard
to fulfill the goals. Here development and training programs are carried to create new

37
 managers. Here in angel there are about more than 300 working professionals, they
are trained effectively to work efficiently. Here they have different categorized based
on their work like technically supporting team, sales team, research team etc.

vi. SKILLS: These are the competencies developed by an individual in an organization.

Board of directors has the skills of handling the managers and managers handle a
whole region given to him to perform well by motivating employees, boosting morale
and controlling various area managers likewise skills of area manger, relationship
manager, and cluster manager changes according to their designations to handle team
effectively.

vii. SHARED VALUES: The concepts of guiding among employees should be simple.
Angle Company continuously shares its various research reports with its investors to
educate and enable them to invest to earn handsome returns. They also share the
report of likely trends to be followed by different segment products.

38
2. SWOT ANALYSIS

Figure 4.2 SWOT Analysis

SWOT analysis mainly concentrates on the internal and external environments of an

industry, organization or a firm. It finds out strengths and weaknesses in the internal
environment and opportunities and threats in the external environment.

STRENGTHS:

 Angel caters an excellent service to its customers.

 It caters satisfied collateral and MTF funding service.
 Angel broking has a wide and huge range of distribution network.
 The company has wide range of products to satisfy the needs of its clients.
 The company‟s marketing and research analyst team is highly proficient to cover each
segment to provide their best service.

WEAKNESSES:

 The company still struggling to meet the high level satisfaction of customers.
 Branding is the main concern for this company as it fails to attract new customers.
 The trading applications are not as standard compared to other trading houses like
Zerodha and Upstox.

OPPORTUNITIES:

 The market share is increasing as even young age people across country are trying to
invest in markets due to market crash.

39
  Technology is improving and can give a platform to invest in global markets to its
customers.
 They can come up with new investment plans with low brokerage charges.
 People are trying to get knowledge about financial market in free where company can
offer free learning with account opening.

Threats

 There are many tough competitors like banks, other broking houses.
 It‟s purely technology based business where small glitch in connection can make
huge losses to its customers.

40
3. PESTLE ANALYSIS

Figure 4.3 PESTLE Analysis

PESTLE analysis is abbreviated as Political, Economical, Social, Technological,

Environmental and legal analysis of an industry or a company. It mainly consider factors
related to macro -environment for strategic planning and analysis. It‟s one of the best tool to
understand the growth or decline of a market, position of business, etc

i. POLITICAL: The political factors matters a lot on the company business. Its gives
an glimpse of intervention of government in various business related economies. It
mainly includes areas like labour law, tax policy, environment law, tariffs, trade
restrictions and political stability.
Recently the SEBI has changed the margin rules where initially higher margins were
available on intraday trades, but now it has been restricted to certain limit, which
every brokerage firm should follow. It will effect directly on the turnover done by the
clients and the brokerages earned by the firms for giving such facility.

ii. ECONOMIC: The economic factors like interest rates, economic growth, exchange
rates and inflation rate affects the business of the company. So it becomes essential to
have a study on these.

41
 Recently many banking institutions have lowered the rate of interest on Fixed
Deposits so the people are looking for other sources to earn higher returns where
stock market is gaining prominence in investments. People are investing in mutual
funds etc to earn higher returns.

iii. SOCIAL: The social factors like population growth rate, cultural aspects, age
distribution, health consciousness, career attitudes matters for a company business.
These factors mainly have an effect on demand of such products.

iv. TECHNOLOGICAL: The factors like rate of change in technology R and D

activity, automation has a greater effect on business. Even it enables a company to
reach out customer at cheap cost (cost effective). The Artificial intelligence and IOT
is most commonly used technology in broking house which enables hassle free
transactions without much human intervention. Now even algos are trending where
information is fed in form of program where transaction executes automatically
depending upon conditions stated.

As the brokerage firms are coming up with mobile apps to trade, the number of
traders is increasing due to ease of trading on a fingertip which is increasing their
business.

v. ENVIRONMENTAL: The environmental factors like climate change, weather

changes ecological balance affects some businesses like tourism, insurance. Here
during the covid-19 pandemic many health insurances were purchased by its clients.
So as the environment changes it create change in the demand of products from
people.

vi. LEGAL: The legal factors like consumer law, discrimination law, employment law,
antitrust law, health and safety law affects business culture of a company.

42
If a company faces many cases of fraud by its clients then other customers will think
twice before opting services of that company, etc.

43
4. FINANCIAL STATEMENT ANALYSIS

Financial statement analysis is an important part to understand the status of the company, to
find out whether the company is doing well or not. It helps in comparing the past data to
understand the company market share and can predict future growth. These statements are
used by various people like company management, Investors, Government, and Public etc.
It‟s gives clear idea about the sales done by company, profit earned, Debt owed etc.

i. BALANCE SHEET

(Rs in millions)

Particulars Mar'20 Mar'19

Equity and Liabilities 12 Months 12 Months

Share Capital 719.95 719.95

Total Reserves 4968.71 4318.99

Shareholders fund 5688.66 5038.94

Secured loans 20.61 18.61

Differed Tax assets/liabilities -35.47 -56.07

Long Term Provisions 1578.98 1668.30

Total Non-Current Liabilities 1564.12 1630.84

Trade Payables 9394.53 6374.97

Other Current Liabilities 1571.59 1568.45

Short Term Borrowings 4856.67 8643.29

Total Current Liabilities 15822.79 16586.71

Total Liabilities 23075.57 23256.49

Net Block 1078.5 1163.82

Long Term Investments 951.75 949.21

Long term Loans and Advances 4209.57 2306.79

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Total Non Current Assets 6260.70 4425.51

Sundry Debtors 386.50 2139.04

Debtors Others 399.73 2157.36

Cash and Bank 13751.92 9481.46

Other Current Assets 136.26 129.83

Short Term Loans and Advances 2540.19 7080.65

Total Current Assets 16814.87 18830.98

Net Current Assets(including current

investment) 992.08 2247.27

Total Assets 23075.57 23256.49

Contingent Liabilities 2700.06 3549.71

Total Debt 4877.28 8661.90

Table 4a Balance Sheet of the company

ii. PROFIT & LOSS ACCOUNT

(Rs in millions)

Particulars Mar'20 Mar'19

Operating Income 7105.0 7370.0

Employee Cost 1510.0 1514.0

Operating and Establishment Expenses 2650.0 2802.0

Administration and Other Expenses 946.0 1050.0

Provisions and Contingencies 453.0 223.0

Total Expenditure 5558.0 5589.0

Other Income 323.0 257.0

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Operating Profit 1869.0 2038.0

Interest 498.0 667.0

Depreciation 202.0 182.0

PBT 1170.0 1189.0

PAT 866.0 767.0

Appropriations 4052.0 3429.0

Equity Dividend % 27 27

Earnings per Share 12 11

Table 4b Profit & Loss of the company

iii. Key Financial Ratio Analysis

YEAR Mar’20 Mar’19

RATIOS

Current Ratio 1.06 1.14

Total debt/Equity Ratio 0.86 1.72

Return on Equity (%) 16.15 16.08

Return on Capital Employed (%) 13.75 12.86

Dividend Payout Ratio .27 .27

Table 4c Key Financial Ratios

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a) Current Ratio

The company current ratio slightly decreased to 1.06 during FY 20 from 1.14 during
FY 19.Current ratio indicates the company‟s ability to pay off the short term and long
term obligations. Decrease in the current ratio indicates that the current asset value
has been decreased compared to that of current liabilities which means liability has
been increased in FY20

b) Debt to Equity Ratio

It states relative proportion of shareholder‟s equity and debt utilized to finance the
firm‟s assets. Debt to Equity ratio has lowered to 0.86 during FY 20 from 1.72 during
FY 19. This ratio helps stake holders to determine the company‟s risk. Decline in this
ratio indicates lower amount of financing is done by debt. Shareholders are more
attracted towards low Debt to Equity ratio companies because their money is better
protected in the event of company business decline.

c) Return on Equity

This ratio determines the ability of the company to generate profit from the
shareholder‟s capital of the company. Return on Equity has been increased which
means company has invested that capital in a successful way to generate better
revenue compared to FY 19. It‟s a good sign for company shareholders.

d) Return on capital employed

This ratio indicates the company‟s profitability to yield profits from the total capital
employed in the business (share holders capital + debt capital). The return on capital
employed has been increased to 13.75 in FY 20 from FY 19. This indicates that
company is making good use of capital by doing new technology innovations and
providing better services to its customers. It‟s a good sign for its investors to carry
forward investment.

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e) Dividend Payout Ratio

It‟s the ratio which helps to understand that what amount of dividend is paid to that of
net income generated by company. Here company maintained constant DPR.
Dividend paid by the company to its shareholders attracts them to invest more as it
generates a good return on investment. Now in the investment world most people
prefer to invest in blue chip high dividend paying companies, so DPR plays an
important role to show company position and growth in market.

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 CHAPTER -5

KNOWLEDGE AQUIRED

Understanding the Concept of Investment

Investment is pooling the money in different assets to earn good returns. It might be done by
purchasing a land, by investing in business, giving loans to earn interest, buying bonds to
earn regular interests, depositing money in the banks, by pouring money into mutual funds
and also in form of purchasing stocks listed in stock exchanges. All of these investments
have different reward to risk ratio. So it becomes very important to understand all of this
investment and to gain knowledge of these before investing in them. To earn higher returns
on investments one should know the skills in that particular sector.

Different Types of Investments

Debt securities: It‟s a type of investment which gives returns in fixed interval payments at
appreciate at time of maturity. It‟s a safe investment for the investors which are called as risk
free investment. These have very low risk but returns are also lower compared to other
investment instruments.

Stocks: These are the shares of a company where investors can invest in to be part of that
business and can earn good returns. These are purchased at secondary markets where they are
listed in stock exchanges. Here reward to risk ratio depends upon type of company shares.
The stocks are highly volatile.

Mutual Funds: It‟s a collection of different industry, different company stocks where a fund
manager selects and invests to earn maximum returns. Here investors can choose mutual
funds of their choice; here investor need not track the investment. The mutual fund might be
based on bonds, stocks or index.

Derivatives: These are the financial contracts which are collection of different assets in lots

49
like commodities, bonds, equities etc. They can be found in different forms like options and
futures and swap.

Commodities: These are the industrial and agriculture items like gold, steel, kapas, chana
traded on market of commodities. These are the riskiest investment compared to all other
investments but even give high returns. One should and enough knowledge about these and
analytical skills to trade commodities.

Real asset: Its form of investment done by purchasing land, building etc. Here the money
can‟t be liquefied quickly. It‟s done with a view of long term holding.

Learning Experience

It needs good understanding about investment instruments. Everyone invests with a view to
earn good returns in future by taking today‟s opportunity cost. One should either have a good
fundamental and technical knowledge about investments or else should take assistance from
financial advisors. Here patience is most important.

The angel broking company has a good legacy which it maintaining from decades by being
strict in its policies by providing excellent services to its customers. This company gives
most preference to solve the problems of its clients and provide them best experience in the
industry. This company‟s main motto is to create wealth for its customers first, later it thinks
about its profitability. I have learnt here to treat customers as God who is revenue generators.
This company has taught to concentrate on business quality rather than concentrating at
quantity.

This industry taught psychology of traders and investors like FOMO (Fear of Moving Out),
FOBI (Fear of Being Invested) etc.

This project helped me to go into the investment industry and impart some knowledge and
apply it. I have attended various webinars and watched videos created by angel to understand
working logic behind equities. It helped to learn technical analysis and to find overvalued
and undervalued stocks in the market.

I have myself used platform of angel broking to experience its services and found as one of
the best in industry peers which provides free calls on intraday level, positional level, option

50
call etc. I have learnt that technical analysis is used only for short term investing but
fundamentals of company matters most for long term investments.

This project helped me to realize the power of investment industry and motivated me to
proceed in career in same segment.

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2. Bhasin, Madan. (2004). Electronic Stock Broking all set to bloom in India. THE
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3. Narayan, A. & Indurkar, Susheel. (2015). Customers Satisfaction: A Study for Client
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Behaviour of Retail Investors: An Analysis with Indian Stock Market Data.
10.1007/978-981-13-8676-3_51.

5. Swadia, Bhavik. (2016). A Study On Investment In Shares, And Comparative

Analysis Of Broking Firms.

6. https://www.sebi.gov.in/sebi_data/attachdocs/sep-2018/1536302772232.pdf
(Retrieved on 10 Aug 2020)

7. https://www.financialexpress.com/market/stock-market/angel-broking-ltd-stock-
price/financials-balance-sheet/ (Retrieved on 15 Aug 2020)

8. https://www.angelbroking.com/ (Retrieved on 24 July 2020)

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examplesofadmissionpapersforcollege.blogspot.com
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E. Segura, R. Morales, J.A. Somolinos. "A
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<1%
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