Equity Research

Engineering
 About the sector
• The engineering sector is made up of a wide range of industries (including
fabricated metal products,
industrial machinery and
equipment, electronics and
other electrical equipment.
• The engineering sector is the
largest of the industrial sectors
in India.
• Engineering goods exports
constituted more than 27%
share of India's total export
basket between
April-December 2021.
Index Composition

Large Cap Engineering Sector

Index Fluctuation
16-05-22 18-05-22 22-05-22 24-05-22 26-05-22 30-05-22

1028.23 1020.51 1044.22 1028.23 1020.51 1044.22

17-05-22 19-05-22 23-05-22 25-05-22 29-05-22 31-05-22

1034.71 1065.30 1042.76 1034.71 1065.30 1042.76

1,140.00
INDEX MOVEMENT
1,120.00
1,100.00
1,080.00
1,060.00
1,040.00
1,020.00
1,000.00
980.00
960.00

5/16/2022
5/17/2022
5/18/2022
5/19/2022
5/20/2022
5/21/2022
5/22/2022
5/23/2022
5/24/2022
5/25/2022
5/26/2022
5/27/2022
5/28/2022
5/29/2022
5/30/2022
5/31/2022
6/1/2022
6/2/2022
PE Ratio

• The price-to-earnings (P/E) ratio shows what the market is willing to

pay today for a stock based on its past or future earnings.
• A high P/E could mean that a stock's price is high relative to earnings
and possibly overvalued.
• P/E ratio helps investors determine the market value of a stock.
P/E= Share price / EPS
Undervalued Stock

Overvalued Stock
Criteria
• Revenue and Profit- At
least one should increase.
• In PEG ratio- It should be
in between 0 to 1.2
Ranking as per ratio
On accepted companies we look out for the important ratios as per Engineering
sector and sort it as per their importance and provide rank as follows.

• ITR Measures the effectiveness of a co. and how fast they are selling inventory compared with industry.
• ROA shows how well the company is using its assets to generate revenue.
• ROCE shows how the company using its capital to generate profits.
• ICR measures how well the company paying its interest for its outstanding debt.
• D/E used to evaluate a company's financial leverage and is calculated by dividing a company's total
liabilities by its shareholder equity.
Ranking
Asset allocation
• Closing price of 03/06/2022
• Asset allocated (₹10 Cr) according to ranks.
• No. of shares= Asset allocated/ Price
• OBJECTIVE: To generate long-term capital appreciation for policy
holders by making investments in fundamentally strong and liquid Fund fact
large cap companies.
• STRATEGY: To build and actively manage an equity portfolio of 4
fundamentally strong Engineering sector large cap stocks in terms
of market capitalization by following an in-depth research-focused
investment approach. The fund will attempt to adequately diversify
across sectors. The fund will invest in companies having financial
strength, robust, efficient & visionary management, enjoying
competitive advantage along with good growth prospects &
adequate market liquidity. The fund will adopt a disciplined yet
flexible long-term approach towards investing with a focus on
generating long-term capital appreciation. The non-equity portion
of the fund will be invested in high rated money market
instruments and fixed deposits. The fund will also maintain
reasonable level of liquidity.
NAV as on 03rd June 2022: ₹10

BENCHMARK: BSE Sensex & Crisil Liquid Fund Index

Asset held as on 03rd June 2022 : ₹10 Cr

FUND MANAGER: Mr. Suraj Kumar