REPORT ON

“A STUDY ON VENTURING INTO CAPTIAL

MAERKETS USING FUNDAMENTAL ANALYSIS”

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF

THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION
OF
ATLAS SKILLTECH UNIVERSITY

SUBMITTED BY
Rahul Thacker
ENROLMENT ID: 1020524
(2022-24)

UNDER THE GUIDANCE OF

‘MR DAVID WITTENBERG’

Atlas Skilltech University, Tower 1- Equinox Business

Park Kurla (West), Mumbai, 400070.

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 ACKNOWLEDGEMENT

My sincere efforts have made me to accomplish the task of

completing this project. I have put my best efforts to complete
the project. However, it would not have been possible without
the support of few individuals with whom I worked with.

I would like to express my sincere gratitude to my mentor Mr.

Yash Nahata and the university to for providing me with the
facilities required to do the project.

I am highly indebted to my sir (Yash Nahata) for his valuable

guidance which has promoted my efforts in all the stages of this
project work. My appreciation thanks and to my colleagues. I
assist in developing my project and to the people who have
willingly helped me out with their abilities.

Finally, words are not sufficient to express my gratitude to my

cherished family members for supporting me without the
encouragement and support I would have not reached this stage.

Rahul Thacker,
ATLAS Skilltech University, Mumbai

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 DECLARATION

I, Rahul Thacker, student of ATLAS Skilltech University hereby

declare that I have completed summer internship project on

“A STUDY ON VENTURING INTO CAPTIAL

MAERKETS USING FUNDAMENTAL ANALYSIS”

with Nahata Data Products Private Limited for a period of 2

months.

The information submitted to you is true and to the best of my

knowledge.

Sign
(Rahul Thacker)

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 CERTIFICATE
This is to certify that Mr. Rahul Thacker, a student of ATLAS
Skilltech University of MBA Program bearing Application ID:
1020524 and specializing in Finance, has successfully
completed the project titled

“A STUDY ON VENTURING INTO CAPTIAL

MAERKETS USING FUNDAMENTAL ANALYSIS”

Under the guidance of Mr. Yash Nahata in partial fulfillment of

the Master of Business Administration (MBA) program of
ATLAS Skilltech University.

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 EXECUTIVE SUMMARY
Nahata Data Products Private Limited (NDPPL) is to achieve
excellence in professional competence and add value to
businesses and economy. This firm provides products and
services in information technology field to its customers.

It was great opportunity to pick up involvement and learn new

things. I was appointed as a financial consultant analyst and
assisted in identifying trends, advise the company and
recommend actions to a senior financial analyst based on sound
analysis. I also learnt correct utilization of PC programming by
working on MS Excel, Tally and MS Word.

Vision of the firm is: “Your One-Stop-Solution for all

technology needs!”

With 25+ years in the market, the company offers valuable

experienced consultation for big or small-scale technology
requirements for its clients’ needs and creates a benchmark of
the professional excellence upholding the principles of integrity,
accountability and transparency.

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 TABLE OF CONTENTS
1. Introduction

2. Overview of the organization

3. Structure of the organization

4. Functions of the organization

5. Benefits of fundamental analysis

6. Process of fundamental analysis

7. Fundamental v/s Technical analysis

8. Valuation

9. Objective of the study, data collection and treatment of data

10. Porter’s Five forces analysis of NDPPL

11. Learnings from the study

12. Conclusion

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 Introduction

Fundamental Analysis involves examining the economic,

financial, and other qualitative and quantitative factors related to
a security in order to determine its intrinsic value. It attempts to
study everything that can affect the security's value, including
macroeconomic factors (like the overall economy and industry
conditions) and individually specific factors (like the financial
condition and management of companies). Fundamental
analysis, which is also known as quantitative analysis, involves
delving into a company’s financial statements (such as profit
and loss account and balance sheet) in order to study various
financial indicators (such as revenues, earnings, liabilities,
expenses, and assets). Such analysis is usually carried out by
analysts’ brokers and savvy investors. Many analysts and
investors focus on a single number net income (or earnings) to
evaluate performance. When investors attempt to forecast the
market value of a firm, they frequently rely on earnings. Many
institutional investors, analysts and regulators believe earnings
are not as relevant as they once were. Due to nonrecurring
events, disparities in measuring risk and management's ability to
disguise fundamental earnings problems, other measures beyond
net income can assist in predicting future firm earnings.

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The Concept of intrinsic value
Intrinsic value is the anticipated or calculated value of a
company, stock, currency, or product determined through
fundamental analysis. It includes tangible and intangible factors.
Intrinsic value is also called the real value and may or may not
be the same as the current market value. It is also referred to as
the price a rational investor is willing to pay for an investment,
given its level of risk.
Basic Formula

The fundamental or the intrinsic value of a business or any

investment asset is generally considered as the present value of
all future cash flows discounted at an appropriate discount rate.

Thus, the most “standard” approach is similar to the net present

value formula:

Where the symbols have the usual meaning shown below –

 NPV = Net Present Value

 CFi = Net cash flow for the ith period (for the first cash
flow, i = 0)
 r = interest rate
 n = number of periods

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 Overview of the organization

Nahata Data Products Private Limited (NDPPL) is a leading

Private Limited Indian Non-Government Company incorporated
in India on 11 June 1997 and has a history of approx. 26 years
having registered office in Mumbai.

The Corporate was formerly known as Balotra Metals Private

Limited and is engaged in the trading of computers and
accessories.

Some of the leading clients’ of the company are HP, Dell,

Lenovo, Microsoft, Apple, Canon, Samsung, Kingston, Seagate,
Portronics, Sandisk, Epson etc.

Nahata Data Products offers a wide range of products and

services, including speakers, earphones, headsets, adaptors,
plugs, sockets, computer hardware, peripherals, and other
ancillary accessories.

The Company's status is Active, and it has filed its Annual

Returns and Financial Statements up until 31 March 2022. It's a
company limited by shares with an authorized capital of INR 15
Lakh and a paid-up capital of INR 15 Lakh.

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 Structure of the organization
With approx. 50 employees, 500+ partner, 1000+ customers and
30 lakhs + units sold the company is majorly divided in 6
departments:
 Business Development

 Sales & Marketing

 Customer Support

 Finance & Accounting

 Human Resource

 Logistics

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 Functions of the organization

 Business Development:

They are the ones which will determine the vision of the
software. They are in constant contact with “the world”,
competitors and customers. Product Managers and Product
Owners are the interface to the development teams.

 Sales & Marketing:

They look after the sales of the products, market changes,

competitor products and manage the marketing of the
products offered by the company.

 Customer Support:

This team provide customer support via any channels (phone,

email, web site, etc.). They are level 1 and level 2 support.

 Finance and accounting:

They are responsible for ensuring that the company’s

financial operations are conducted in a legal, efficient, and
effective manner. The finance department is responsible for
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 managing a company’s financial resources, including its
revenue, expenses, and debt. They play a critical role in
providing accurate and timely financial information to
management, which is essential for making informed business
decisions and long-term success of the company. They also
help the company to making important financial decisions,
such as where to invest its resources, how to raise capital, and
how to manage risk.

 Human Resources:

This team looks after the recruitment, payroll, and wellbeing

of the employees

 Logistics:

The delivery department manages the day-to-day activities

that are required to produce and distribute a company’s
products or services. This can include managing and
coordinating the use of resources such as labor, raw materials,
and equipment, as well as overseeing production and logistics
processes. This department also plays a key role in ensuring
that a company’s products or services are produced and
delivered in a timely, efficient, and cost-effective manner.

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 Benefits of Fundamental
Analysis

 Evaluation of fair value:

Fundamental analysis helps investors assess the intrinsic

value of a stock by analyzing the company’s financial
statements, industry position, and growth prospects. Fair
value often relies on market-based information, such as
recent transactions of similar assets or observable market
prices. Evaluating the relevance and reliability of these
inputs is crucial. Various valuation techniques can be
employed to estimate fair value, including the market
approach, income approach, and cost approach.

 Long-Term Investment Perspective:

Fundamental analysis takes into account a company’s

financial health, management quality, competitive
advantages, and growth prospects over the long term. By
evaluating these factors, investors can assess the company’s
ability to generate sustainable earnings and cash flows.
This long-term perspective helps investors make informed

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 decisions based on the company’s intrinsic value rather
than short-term market fluctuations.

 Identification of Growth Opportunities:

Fundamental analysis involves studying industry trends,

market dynamics, and a company’s competitive positioning
to identify growth opportunities. Investors analyse factors
such as market size, demand drivers, technological
advancements, and regulatory changes that could impact a
company’s future growth prospects. By identifying
companies with strong growth potential, investors can
benefit from capital appreciation as the company’s earnings
and market share expand.

 Risk & Red Flags Mitigation:

Fundamental analysis allows investors to assess the risks

associated with investing in a particular stock. By
analyzing a company’s financial statements, investors can
evaluate its liquidity position, debt levels, and ability to
generate consistent profits. Additionally, examining key
financial ratios such as debt-to-equity ratio, current ratio,
and interest coverage ratio helps investors gauge the
company’s financial health and risk exposure. Fundamental
analysis also helps identify red flags such as declining

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 sales, deteriorating margins, management issues, or
accounting irregularities that may indicate potential risks.

 Value Investing Opportunities:

Fundamental analysis is the cornerstone of value investing,

a strategy that seeks to identify stocks trading below their
intrinsic value. Investors using this approach, analyze a
company’s financial statements, including the balance
sheet, income statement, and cash flow statement, to
determine its true worth. By comparing the company’s
intrinsic value to its current market price, investors can
identify undervalued stocks with the potential for price
appreciation when the market recognizes their true value.
This approach allows investors to buy stocks at a lower
price and potentially earn higher returns over the long term.

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Process of fundamental
analysis

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