Nazia SIP New

Fundamental analysis of selected stocks Kalyan Jewellers and Home First Finance Company Limited Mohmmad Nazia Asma
CHAPTER 1
INTRODUCTION TO
FUNDAMENTAL ANALYSIS
Rizvi Institute of Management Studies & Research

1.1 INTRODUCTION TO FUNDAMENTAL ANALYSIS

Fundamental analysis is another tool that investors use to arrive at several fair market
value that we can compare to the security’s current price, thus determining whether it is
undervalued. This type of analysis focuses on both the macro and microeconomic factors
that can affect Fundamental analysis is another tool that investors use to arrive at a
number (fair market value) that we can compare to the security’s current price, thus
determining whether it is undervalued. This type of analysis focuses on both the macro
and microeconomic factors that can affect the price of a given financial instrument.
In contrast with technical analysis, which only considers the historical price movements,
the fundamental analysis uses company financials. It considers related economic factors
to arrive at an intrinsic value and decides whether it is profitable to invest in that
company. Traders prefer fundamental analysis when evaluating stocks, but it is also
helpful with other financial instruments, like bonds and derivatives.
The “fundamental” idea is to use publicly available data and information about the macro
and microeconomic environment to develop an educated estimate for the company’s real
value. In the end, based on the analysis, investors choose to buy, sell, or shorten a stock.
Fundamental Analysis is a comprehensive study of a business that examines economic,

financial, qualitative, and quantitative factors related to a stock or business. It measures a
security’s intrinsic value by examining related economic and financial factors, from
macroeconomic factors such as the state of the economy and industry conditions to
microeconomics factors like the effectiveness of the company’s management. The end
goal is to determine a number that an investor can compare with a security’s current price
to see whether the security is undervalued or overvalued by other investors.
Fundamentally strong companies stock prices tend to appreciate over the long term,
creating wealth for their investors. Fundamental analysis measures a security’s intrinsic
value by examining related economic and financial factors. Intrinsic value is the value of
an investment based on the issuing company’s financial situation and current market and
economic conditions.

Fundamental analysts’ study anything that can affect the security’s value, from
macroeconomic factors such as the state of the economy and industry conditions to
microeconomic factors like the effectiveness of the company’s management.
The end goal is to determine a number that an investor can compare with a security’s
current price to see whether the security is undervalued or overvalued by other investors.
Fundamental analysis is a method of determining a stock real or fair market value. FA

search for stocks currently trading at higher or lower than their real value. If the fair
market value is higher than the market price, the stock is deemed to be undervalued and a
buy recommendation is given. If the fair market is lower than the market price the stock is
deemed to be overvalued and the recommendation might be not to buy or to sell if the
stock is held.
UNDERSTANDING FUNDAMENTAL ANALYSIS
Fundamental analysis is usually done from a micro and macro perspective to identify
securities that are not correctly priced by the market.
Analysts typically study in order:
 The overall state of the economy

 The strength of the specific industry.
 The financial performance of the company issuing stock.
This ensures that they arrive at a fair market value for the stock.
OVERVIEW
Fundamental analysis is a powerful tool used by investors to evaluate the intrinsic value
of a financial asset, such as a stock or bond. By delving into a company’s financial
statements, economic factors, industry trends and management, fundamental analysis
aims to uncover the true worth of an investment, thereby assisting investors in making
well-informed decisions.
Purpose of Fundamental Analysis
The primary objective of fundamental analysis is to identify the underlying factors that
drive the value of an asset. By examining a company’s financial health, growth potential,
competitive advantages and overall market dynamics, investors can determine whether an
asset is overvalued, undervalued, or fairly priced. This approach allows investors to make
decisions based on the long-term potential of a company, rather than short-term market
fluctuations.
Key Components of Fundamental Analysis Financial Statements:
Fundamental Analysis heavily relies on a company’s financial statements, including the

balance sheet, income statement and cashflow statement. These documents provide
insights into the company's revenues, expenses, profits, assets, and liabilities, offering a
comprehensive view of its financial performance.
Ratio Analysis: Ratios derived from financial statements, such as price-to-earnings, price-
to-book and debt-to-equity, help investors compare a company’s financial health against
industry benchmarks and historical data. These ratios are invaluable in determining a
company’s valuation and assessing its risk profile.
Industry and Market Analysis: Understanding the broader industry and market trends is
crucial to contextualize a company’s performance. By evaluating the company’s position
relative to its competitors and the overall market, investors can assess its competitive
advantage and growth potential.
Management and Leadership: Fundamental analysis also examines the quality of a

company’s management team and their track record in making sound business decisions.
Effective leadership is critical for a company’s long-term success and growth prospects.
Fundamental vs Technical Analysis: It is crucial to distinguish between technical analysis

and fundamental analysis, another well-liked investment strategy. Technical analysis
analyzes previous price and volume data to forecast future price movements, whereas
fundamental analysis concentrates on the inherent worth of an asset by evaluating the

underlying variables. Although both approaches have advantages, value investors who
want to find cheap assets tend to choose fundamental analysis.
Fundamental Analysis's Importance
By giving a full grasp of a company's financial health, its potential for growth, and its
competitive position in the market, fundamental analysis plays a crucial role in guiding
investment decisions. Investors can choose wise, long-term investments that are in line
with their financial objectives using this analytical technique.
The core component of investing research is fundamental analysis, to sum up. Investors
can get important insights to help them make well-informed investment decisions by
carefully examining a company's finances, market position, and management.
Understanding fundamental analysis is essential for navigating the complicated world of
finance and achieving effective outcomes in the global marketplace, regardless of your
level of experience.

1.2 NEED OF FUNDAMENTAL ANALYSIS

Fundamental analysis is the process of evaluating a company's financial statements and
other data to determine its intrinsic value. This information can then be used to make
investment decisions. There are a number of reasons why fundamental analysis is
important for Kalyan Jewellers.
First, the company is a large and well-established player in the Indian jewelry market.
This means that there is a lot of financial data available to investors, which can be used to
assess the company's financial health.
Second, Kalyan Jewellers is a cyclical business. This means that its financial performance
is influenced by factors such as the economic environment and the price of gold. By
understanding the company's financial performance over time, investors can get a better
sense of how it will perform in different economic conditions.
Third, Kalyan Jewellers is a relatively high-valuation stock. This means that investors
need to be confident in the company's future prospects in order to justify its current price.
Fundamental analysis can help investors to assess whether the company is worth its
current valuation.
Here are some of the key financial metrics that investors should consider when
conducting fundamental analysis of Kalyan Jewellers:
Revenue growth: Kalyan Jewellers has been growing its revenue at a healthy pace in
recent years. This is a positive sign for the company's future prospects.
Profit margins: Kalyan Jewellers' profit margins have been relatively stable in recent
years. This is another positive sign for the company's profitability.
Debt levels: Kalyan Jewellers has a moderate level of debt. This is not a major concern
for investors, as the company has a strong track record of managing its debt.

Cash flow: Kalyan Jewellers generates a significant amount of cash flow from its
operations. This is a positive sign for the company's ability to meet its financial
obligations and invest in its future growth.
Overall, fundamental analysis is a valuable tool for investors who are considering
investing in Kalyan Jewellers. By carefully evaluating the company's financial
performance and prospects, investors can make informed investment decisions.
Here are some additional things to keep in mind when conducting fundamental analysis
of Kalyan Jewellers:
Consider the company's competitive landscape. Kalyan Jewellers faces competition from
a number of other jewelry retailers in India. Investors should assess the company's
competitive strengths and weaknesses in order to determine its long-term prospects.
Analyze the company's management team. Kalyan Jewellers is led by a strong

management team with a proven track record. Investors should assess the team's
experience, skills, and vision for the company's future.
Stay up to date on industry trends. The jewelry industry is constantly evolving. Investors
should stay up to date on the latest trends in order to make informed investment
decisions. By following these tips, investors can conduct a thorough fundamental analysis
of Kalyan Jewellers and make informed investment decisions.

1.3 TYPES OF FUNDAMENTAL ANALYSIS

The term "fundamental analysis" refers to a variety of techniques and frameworks for
determining an asset's inherent worth. The primary categories of basic analysis are as
follows:
QUALITATIVE ANALYSIS
Evaluation of non-financial aspects that may affect the performance and valuation of a
firm is the focus of qualitative analysis. The reputation of a company's brand, the caliber
of its management, its corporate governance, its comparative advantage, its market
placement, and general industry trends are some of these variables. (Public sector banks
in India Rajat publication) Although subjective, qualitative analysis offers insightful
information about the company's long-term prospects and qualitative elements that may
not be included in financial statements.
QUANTITATIVE ANALYSIS
To evaluate a company's financial performance and health, quantitative analysis entails

examining financial data and ratios. In order to determine important financial ratios
including profitability ratios, liquidity ratios, and leverage ratios, it is necessary to
analyze financial statements like the income statement, balance sheet, and cash flow
statement. The financial status of a corporation can be understood objectively and
quantitatively through quantitative analysis.
 Valuation Models
Calculating the intrinsic worth of a business or asset requires the use of valuation models,
which are mathematical tools. Discounted cash flow (DCF) analysis, price-to-earnings
(P/E) ratio analysis, price-to-book (P/B) ratio analysis, and dividend discount model
(DDM) analysis are common valuation methods. Based on a projected stock's future cash

flows or earnings potential, these models assist investors in determining whether a stock
is undervalued or overvalued.
 Economic Analysis
To evaluate the overall economic environment and its potential effects on a company's
performance, economic analysis includes examining macroeconomic parameters
including GDP growth, interest rates, inflation, and employment data. Understanding the
state of the economy can be helpful when making investment decisions, especially when
considering sectors or industries that are susceptible to changes in the economy.
 Industry Analysis
The main goals of industry analysis are to assess the general health, future growth
potential, and competitive dynamics of a certain sector or industry. Investors assess an
organization's position within its industry and its growth prospects by looking at market
trends, entry hurdles, regulatory issues, and technical developments.
 Company And Management Analysis
Analysis of a company's business model, management group, and corporate strategy is

the focus of this sort of analysis. The ability of the leadership to carry out the business
strategy, make wise choices, and adjust to shifting market conditions must be understood
in order to evaluate a company's long-term prospects.
 Event-Driven Analysis
Event-driven analysis looks at occurrences or drivers that may influence a company's

valuation, such as acquisitions and mergers, earnings reports, legislative changes, or new
product launches. Investors can anticipate potential price changes caused by notable
events with the help of this analysis. Investors frequently combine these methods to
acquire a thorough grasp of an asset's worth and growth prospects. Each type of
fundamental research offers distinctive insights. It is crucial to modify the type of analysis
chosen in accordance with the objectives of the investment and the unique traits of the
asset being assessed.
1.4 ADVANTAGES AND DISADVANTAGES OF

FUNDAMENTAL ANALYSIS:
Following are the advantages of fundamental analysis:
 Long-Term Perspective:
Fundamental analysis focuses on an asset's fundamental worth and gives investors

insights into the long-term prospects of a company. It assists in locating undervalued
assets, enabling long-term investors to make wise judgments.
 Understanding the Business:
Fundamental analysis aids investors in developing a thorough understanding of the

company's strengths, weaknesses, and future possibilities. This is done by examining a
company's financial statements and business activities.
 Financial Health Evaluation:
Using fundamental analysis, investors can evaluate a company's profitability, liquidity,

and solvency. This data is essential for assessing the company's capacity to maintain
operations while also being able to pay its debts.
 Finding Growth Opportunities:
By examining variables like revenue growth, market share, and development plans,
investors can find businesses with significant growth potential.
 Asset valuation:
By measuring an asset's inherent value and establishing a benchmark against its market
price, fundamental research aids in asset valuation. Investors can thus spot assets that are
either undervalued or overvalued.
 Risk management:

Fundamental analysis assists investors in identifying potential dangers and making wise
decisions to manage their investment risks by carefully evaluating a company's financials
and market position.
 Aligning Investment Strategies:
Using fundamental research, investors may make sure their investment plans are in line
with their financial objectives and risk tolerance.
Following are the disadvantages of Fundamental Analysis:
1.Time-consuming:
Fundamental analysis takes a lot of time and effort to complete. For individual investors,
collecting and analyzing financial information, market trends, and company reports can
take a lot of effort.
2. Subjectivity:
Aspects of fundamental analysis that can be subjective and open to interpretation include
qualitative elements and future growth estimates. As a result, various analysts may reach
different findings.
3. Limited Short-Term Predictions:
Fundamental analysis is primarily concerned with long-term patterns, which may make it
difficult for short-term traders to make accurate predictions about the future direction of
prices.
4. Inaccurate Assumptions:
Fundamental analysis is strongly dependent on the accuracy of predictions and

assumptions made about the future performance of the company, which can occasionally
turn out to be wrong. (Economic Times, 2023)
5. Information Availability:

For businesses with less openness or those doing business in emerging regions, access to
dependable and current financial data and information may be restricted.
6. Market Sentiment and External elements:
The impact of macroeconomic, geopolitical, or market sentiment elements that can affect
short-term market fluctuations may not be fully captured by fundamental analysis.
7. Competing Information:
In the digital world of today, investors may encounter a deluge of information, making it
difficult to focus on and filter out the pertinent information for their study.
Fundamental analysis is nevertheless a useful tool for investors looking to gain a

complete understanding of businesses and their potential for long-term investing success
despite these drawbacks. It can offer a holistic viewpoint to enable educated investment
decisions when used in conjunction with other analytical techniques.

1.5 APPROACHES OF FUNDAMENTAL

Analysis Fundamental analysis is a method used to evaluate the intrinsic value of a
financial asset, such as stocks, bonds, or currencies, by analyzing various qualitative and
quantitative factors that can influence its price. Here are a few typical methods employed
in basic analysis:
1. Top-Down Approach:
The top-down approach begins with a macroeconomic viewpoint and descends to the
particular business or asset under analysis. Prior to concentrating on specific companies,
it entails analysing the overall economic climate and industry trends. This is how it goes:
Economic Analysis: Start by evaluating the general state of the economy, taking into
account variables like GDP growth, inflation, interest rates, and unemployment. These
indicators can have an impact on different industries and offer information on the state of
the economy.
Industry Analysis: Based on the economic assessment, identify industries that are likely
to perform well given the current economic conditions. Think about elements like
industrial expansion, consumer demand patterns, technological developments, and
governmental policy shifts.
Company Selection: After identifying sectors with promise, choose businesses within
those sectors that are well positioned to capitalize on market developments. Examining
these companies' financial stability, competitive advantages, and growth potential could
be part of this.
Company review: Finally, conduct a thorough review of the financial statements,

managerial calibre, and certain variables that may affect the performance of the chosen
companies. By using this strategy, it is ensured that the businesses picked will follow the
macroeconomic and market trends mentioned above.

2. Bottom-Up Approach:
On the other hand, the bottom-up approach begins by carefully examining each individual
company before taking into account more general economic and industrial considerations.
It concentrates on the small-scale characteristics of businesses and hunts for undervalued
assets regardless of broader economic situations. This is how it goes:
Company Analysis: Assess the financial statements, performance indicators, competitive

advantages, and general business fundamentals of each company. This process is essential
for locating businesses with the potential for growth and sound financial standing.
Valuation: Estimate the intrinsic value of the companies based on their financials, growth
prospects, and other relevant factors. This can entail applying suitable tools for valuation,
such as DCF analysis, P/E ratios, or other ways.
Company Selection: After identifying companies that are potentially undervalued or

have favorable growth prospects, select those that align with your investment criteria and
objectives.
Industry and Economic Considerations: Once you have a list of selected companies,
consider the industry and economic factors that could impact their performance.
However, this factor is taken into account after analysing each company separately.
3. Comparison:
Top-Down Approach: This strategy starts with the broad strokes and focuses on
particular businesses. It is appropriate when you wish to match your investments to
more general economic and business trends. It might, however, ignore particular
businesses that have a lot of promise but operate in sectors that are presently
unpopular.
Bottom-Up Approach: This strategy starts by examining certain businesses and
their unique characteristics. Regardless of the state of the economy or the state of the
industry, it is valuable for locating possibly undervalued enterprises. It might not,

however, properly account for other variables that might have an impact on the
investment.
Both strategies have advantages and disadvantages, and some analysts even combine
the two to arrive at sound investing judgements. Your investment objectives, risk
tolerance, and the amount of depth you feel comfortable analysing assets at will all
influence whatever technique you choose.

CHAPTER 2:
OVERVIEW OF THE INDUSTRY

2.1 INDUSTRY OVERVIEW
Market Size and Growth
The retail jewellery industry contributes significantly to the worldwide retail

sector. Consumer preferences, disposable income, cultural and religious
traditions, and fashion trends are just a few examples of the variables that have
an impact on market size. The rate of industry expansion varies by area, with
expanding middle-class populations in emerging nations often leading to stronger
demand.
Product Segmentation
Gold, diamond, silver, platinum, and gemstone jewellery are just a few of the
many products available in the jewellery retail industry. According to their
interests, spending power, and cultural heritage, each product category caters to
distinct customer segments.
Key businesses and Competition
There are many local, national, and international businesses in the highly
competitive jewellery retail sector. For market share and brand recognition, major
players like Kalyan Jewellers, Tanishq, Malabar Gold & Diamonds, and others
battle. Market dominance is frequently dominated by big chains and well-known
names.
Consumer Demographics
Consumer demographics are especially important in determining the retail

jewellery market. Age, gender, economic levels, cultural customs, and
extraordinary events like weddings and festivals all have an impact on the desire
for jewellery.

Trends and Fashion
Fashion trends have a significant impact on the jewellery industry and can affect
the popularity of particular designs, materials, and styles. For retailers to
successfully match customer preferences, fashion trends must be kept up to date.
Gold Price Volatility
Gold's price volatility can have an impact on the jewellery retail sector because
gold makes up a sizable portion of it. Changes in gold prices may have an impact
on consumer spending patterns and retailers' profit margins.
E-commerce and online presence
The retail jewellery industry has been severely impacted by the growth of e-
commerce. To appeal to tech-savvy customers and broaden their customer base
beyond brick-and- mortar stores, several businesses have created online
platforms.
Customer Experience and Branding
In the retail jewellery sector, creating a great customer experience and a strong
brand are crucial. For businesses to draw in and keep customers, trust and
reputation are essential components.
Regulations and Ethical Practices
The jewellery industry is governed by several laws, including those pertaining to

hallmarking and morally-sound material sourcing. To win over customers,
retailers must adhere to these rules and use moral behaviour.
Impact of COVID-19
The COVID-19 pandemic had a substantial impact on the retail jewellery

industry, including supply chain disruptions, temporary store closures, and
changes in customer behaviour. Strategies for recovery and adaptation have been
crucial for companies in this sector.
To produce a precise and extensive industry overview for your SIP project,
keep in mind to perform in-depth research and collect updated data. For gathering
pertinent information, industry reports, financial journals, and official business
sources are excellent sources.
The jewellery industry is a thriving and dynamic one with a strong emotional and
cultural bond with consumers. To succeed in this cutthroat environment,
retailers and manufacturers must adjust to shifting consumer tastes,
technology improvements, and market dynamics. Jewellery is a highly
visual and artistic profession that continues to pique people's interests all
around the world, making it an interesting field to research and examine.
(Research Methodology new age international publishers second edition)

2.2 INDUSTRY SECTOR
As of February 2021, India's gold and diamond trade made up 14% of all merchandise
exports and contributed 7.5% to the country's GDP. From five million in 2020, the gems
and jewelry business are expected to employ 8.23 million people by 2022. The gems and
jewelry industry were designated as a target area for export promotion by the government
due to its potential for growth and value addition.
In order to promote "Brand India" on the global market, the government has recently
implemented a number of initiatives to encourage investment and modernise technology
and skills. The government has approved 100% FDI in the sector via the automatic
method, meaning that neither the foreign investor nor the Indian company must first
obtain the Reserve Bank's or the government's permission.
Kalyan Jewellers and Home First Finance Company Limited are both well-established companies
in their respective industries. However, there are some key differences between the two
companies:
 Industry: Kalyan Jewellers is a consumer durables company, while Home First Finance
Company Limited is a financial services company.
 Products and services: Kalyan Jewellers designs, manufactures, and sells jewellery made
of gold, diamonds, and other precious stones. Home First Finance Company Limited
provides home loans to individuals and small businesses.

 Target market: Kalyan Jewellers target market is consumers with high disposable
incomes. Home First Finance Company Limited's target market is individuals and small
businesses with limited access to credit.
 Distribution channels: Kalyan Jewellers sells its products through a chain of over two
hundred stores in India and the Middle East. Home First Finance Company Limited sells
its products through a network of over one hundred branches in India.
 Financial performance: Kalyan Jewellers has reported strong financial performance in

recent years. In 2022, the company reported a net profit of INR 2.5 billion. Home First
Finance Company Limited has also reported strong financial performance in recent years.
In 2022, the company reported a net profit of INR 1.2 billion.
 Kalyan Jewellers and Home First Finance Company Limited are both well-
established companies with strong financial performance. The two companies
operate in different industries and have different target markets. However, both
companies are well-positioned to continue to grow in the coming years.

CHAPTER 3:
OVERVIEW OF THE
COMPANY

COMPANY OVERVIEW
 KALYAN JEWELLERS
Kalyan Jewellers was founded by T.S Kalyanaraman, who opened the first jewellery
showroom in 1993 in Thrissur Kerala, India with an initial capital of Rs 75 Lakhs
(US$94,000) The company also has strong roots in the textile trading, distribution, and
wholesale business.
Initially, Kalyan Jewellers strengthened their presence in the South Indian states of
Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana. In 2012, they expanded
outside South India by opening a showroom in Ahmedabad, Gujarat and signed Amitabh
Bachchan as their first National Brand Ambassador.
In 2013, Kalyan Jewellers entered international markets by opening six showrooms on the
same day in UAE. Since then, it has grown to operate thirty showrooms in the Middle
East across UAE, Qatar, Kuwait, and Oman. As of February 2020, Kalyan Jewellers has a
wide presence of over 137 showrooms, of which 107 are in India and the remaining thirty
on the Middle East.
The company has also set up ‘My Kalyan,’ a customer service center, offering advance
booking for wedding purchases, Kalyan Gold Purchase Advance Scheme, Gold Insurance
for gold ornaments, etc. Currently there are over 761 ‘My Kalyan’ outlets in India.

Brand ambassadors
In 2012, Kalyan Jewellers signed Amitabh Bachchan as its first National brand
ambassador. Amitabh Bachchan and Jaya Bachchan are the Global brand ambassadors,
while their daughter Shweta Bachchan Nanda is the celebrity influencer. Later, Katrina
Kaif was also hired to endorse the brand globally in April 2018.
Kalyan Jewellers has also partnered with several leading celebrities to be regional brand
ambassadors, including Manju Warrier and Kalyani Priyadarshan in Kerala, Nagarjuna
Akkineni in Andhra Pradesh and Telangana, Shiva Rajkumar in Karnataka, Prabhu
Ganesan in Tamil Nadu.
In the past, Kalyan Jewellers has been represented by Bollywood celebrities like
Sushmita Sen, Aishwarya Rai, and Sonam Kapoor. While Shah Rukh Khan represented
them in the Middle East.
Aishwarya Rai Bachchan was paid ₹10 crore (US$1.3 million) per year for a two-year
deal with Kalyan Jewellers to be a nationwide brand ambassador, which was formerly
Sushmita Sen. The advertising and marketing budget of Kalyan is around ₹90 crore
(US$11 million)

Later they also signed several regional brand ambassadors like Pooja Sawant in
Maharashtra, Kinjal Rajpriya in Gujarat, Wamiqa Gabbi in Punjab, and Ritabhari
Chakraborty in West Bengal.
The company offers a diverse range of jewelry products, including gold, diamond,
platinum, gemstone, and silver jewelry, catering to a wide range of customer preferences
and occasions. With a vast network of showrooms strategically located in major cities and
towns across India and the Middle East, Kalyan Jewellers has carved a niche for itself by
presenting customers with an extensive collection of designs that blend traditional artistry
with contemporary trends.
Kalyan Jewelers’ strong brand identity, transparency in business practices, and customer-
centric approach have been key drivers of its success. The company has undertaken
innovative marketing campaigns featuring leading Indian celebrities, strengthening its
brand presence, and resonating with its target audience. Additionally, Kalyan Jewellers
places great emphasis on ethical practices and responsible sourcing, ensuring the
authenticity and purity of its jewelry products.
As the jewelry retail industry continues to evolve, Kalyan Jewellers is poised to capitalize
on growth opportunities, expand its market reach, and adapt to changing customer
preferences. The company's commitment to corporate social responsibility initiatives
further showcases its dedication to giving back to society and making a positive impact
on the communities it serves.
 HOME FIRST FINANCE COMPANY LIMITED
Home First Finance Company Limited (HFFCL) is a specialized housing finance

company operating in India, committed to empowering first-time homebuyers with
accessible and customer-friendly home loan solutions. Founded in 2010 by Mr. Jaithirth
(Jerry) Rao and Mr. P.S. Jayakumar, HFFCL aims to bridge the gap in affordable housing
finance, particularly in urban and semi-urban areas. The company focuses on providing
home loans to low and middle-income segments, enabling individuals and families to
realize their dream of homeownership.
HFFCL has positioned itself as a key player in the housing finance sector, offering
innovative and efficient financial solutions that cater to the unique needs of first-time
homebuyers. With a presence in various states across India, the company serves a diverse
customer base seeking housing finance for affordable housing units.
The company's founders have emphasized sustainable lending practices and financial
inclusion, aligning their vision with the government's mission of "Housing for All."
HFFCL's simplified loan processes and personalized customer service have earned it a
reputation as a dependable and customer-centric housing finance provider.
As a publicly listed company, HFFCL's commitment to social impact extends to fostering

financial inclusion, promoting responsible lending, and contributing to the growth of the
affordable housing sector in India. The company's outlook is characterized by its
expansion into new markets, adoption of digital technologies to enhance customer
experience, and continued focus on credit risk management.

Overall, Home First Finance Company Limited's dedication to serving first-time

homebuyers and its mission to empower affordable homeownership position it as a
promising player in the housing finance industry, with significant growth potential in
India's dynamic real estate market.

CHAPTER 4:
RESEARCH METHODOLOGY

Research Process
Ratio analysis, dividend analysis, and SWOT analysis are used in this study to determine
whether the company's stock is undervalued or overvalued. We can use ratio analysis to
determine a company's leverage, its capacity to pay back debt, and its expected future
performance. The SWOT analysis will assist us in understanding both internal (strengths
and weaknesses) and external (opportunities and threats) aspects that may have an impact
on the firm. Therefore, well-known corporations that pay dividends often raise their
dividend payouts each year. Companies that currently pay dividends seldom if ever
discontinue doing so. The financial performance of the two companies has been
measured, evaluated, and compared in the current study.
Data Source
The analysis is based on secondary data that was gathered from websites, ace equity,
financial data, annual reports of the relevant companies, and other published sources.
Data Collection
Primary and secondary data are the two categories of data.
In primary data, the researcher creates the information through experiments, surveys, and
interviews that are designed to assist the researcher in comprehending and resolving the
problem at hand.
Secondary data is made up of data that has already been collected by large organizations
as part of organizational record keeping. The information is then retrieved from a larger
variety of data files. (Research Methodology new age international publishers second
edition)

Microsoft Excel is used to perform ratio analysis and dividend analysis. The data utilized
in the process are secondary data; the percentage change is the analysis's measurement
unit, and the data are of an annual nature. Data from 2021 to 2023 is considered.
Data Summary
The most important economic elements are taken into account when collecting data for
this study because doing so will boost the model's accuracy and enable us to produce
more accurate results. The information is gathered annually.
Time Period
The study's data spans the years 2021 through 2023.

CHAPTER 5:
DATA ANALYSIS AND
INTERPRETATION

RATIO ANALYSIS
1. Debt-Equity Ratio: The debt-equity ratio measures a company's overall debt
(including short- and long-term liabilities) in relation to its shareholders' equity.
It is used to determine how much debt a firm is using to finance its operations in
relation to the amount of capital invested by shareholders.
2. Long Term Debt Equity Ratio: A financial indicator called the long-term debt-
to-equity ratio assesses how much of a company's long-term debt—obligations
with maturities longer than one year—relative to its shareholders' equity. It offers
information on the company's long-term finance plan and its capacity for repaying
long-term debt. A lower ratio denotes a more cautious financial structure,
whereas a greater ratio shows a higher amount of financial leverage and
consequently more financial risk.
3. Current ratio: A liquidity ratio called the current ratio gauges a company's
capacity to pay its short-term debts. It contrasts the current assets and liabilities of
an organization (debts due within a year). If a corporation has adequate short-term
assets to meet its short-term liabilities, the current ratio tells us that.
4. Fixed Assets: Fixed assets are long-term assets owned by a firm for use in its
operations and not for sale. They are often referred to as physical assets or
property, plant, and equipment (PP&E). These assets are tangible and necessary
for the day- to-day operations of the firm.
5. Inventory Ratio: The inventory turnover ratio is a financial metric that measures
how efficiently a company, such as Kalyan Jewellers, manages its inventory. It is
calculated by dividing the cost of goods sold (COGS) by the average inventory
value during a specific period.
6. Debtors Ratio: The debtor’s ratio, commonly referred to as the accounts
receivable turnover ratio, gauges how effectively a business manages credit sales
and collects receivables. It is determined by dividing net credit sales by the
average number of accounts receivable for a given time frame. The debtor’s

ratio reveals how frequently, on average, a business collects its unpaid accounts
receivable in a specific time frame.
7. Interest Coverage Ratio: The interest ratio, also known as the interest coverage
ratio, measures a company's ability to meet its interest expenses on its outstanding
debt. It is calculated by dividing earnings before interest and taxes (EBIT) by
interest expenses for a specific period.
8. PBIDTM Ratio: The operating profitability of a business is gauged by the
PBIDTM ratio, commonly referred to as Operating Profit Margin or Operating
Margin. Prior to considering interest costs, depreciation, taxes, and extraordinary
items, it determines the percentage of profit produced by its core business
operations.
9. PBITM Ratio: The PBITM ratio assesses a company's operating profitability
before taking interest costs and taxes into account. It is also referred to as the
EBIT (Earnings Before Interest and Taxes) margin or Operating Profit Margin.
The amount of profit derived from core company operations is calculated.
10. PBDTM Ratio: The PBDTM ratio, commonly referred to as EBITDA (Earnings
before Interest, Taxes, Depreciation, and Amortization) margin, gauges a business'
operating profitability before taking interest, tax, depreciation, and amortization
costs into account. Without the influence of non-cash expenses like depreciation
and amortization, it shows how effectively a company is making a profit from its
activities.
11. CPM Ratio: The CPM ratio is a marketing metric that measures the cost
effectiveness of advertising campaigns. It represents the cost incurred per
thousand impressions or views of an advertisement. While this ratio is relevant for
marketing campaigns, it may not be related to Kalyan Jewelers’ core financial
performance.
12. APATM Ratio: The APATM ratio measures a company's average profitability
after accounting for all taxes, including income tax. It calculates the percentage of
profit that a company retains from its revenue after tax expenses.

13. ROCE Ratio: The ROCE ratio measures a company's profitability relative to the
capital invested in its operations. It indicates how efficiently a company utilizes its
capital to generate profit.
14. RONW Ratio: The RONW ratio measures a company's profitability relative to its
shareholders' equity. It indicates how effectively a company generates profit for its
shareholders' investment.

KALYAN JEWELLERS .
Particulars 2021 2022 2023

Debt-Equity Ratio 0.98 0.78 0.69
Long Term Debt-Equity Ratio 0.01 0.00 0.00
Current ratio 1.27 1.33 1.38
Fixed assets 3.65 4.64 6.13
Inventory Ratio 1.83 1.98 2.22
Debtors 2417.66 2143.45 206.80
Interest cover Ratio 1.57 2.03 3.03
PBIDTM% 9.46 8.31 8.34
PBITM% 7.08 6.32 6.76
PBDTM% 4.93 5.19 6.11
CPM% 4.26 4.36 4.95
APATM% 1.89 2.36 3.37
ROCE% 8.96 9.21 12.08
RONW% 5.46 6.81 11.25
The following are the reasons behind the ratio.

Debt-Equity Ratio: The debt-equity ratio measures a company's overall debt (including
short- and long-term liabilities) in relation to its shareholders' equity. It is used to determine
how much debt a firm is using to finance its operations in relation to the amount of capital
invested by shareholders.
Long Term Debt Equity Ratio: A financial indicator called the long-term debt- to-equity
ratio assesses how much of a company's long-term debt—obligations with maturities longer
than one year—relative to its shareholders' equity. It offers information on the company's
long-term finance plan and its capacity for repaying long-term debt. A lower ratio denotes a
more cautious financial structure, whereas a greater ratio shows a higher amount of financial
leverage and consequently more financial risk.
Current ratio: A liquidity ratio called the current ratio gauges a company's capacity to pay
its short-term debts. It contrasts the current assets and liabilities of an organization (debts due
within a year). If a corporation has adequate short-term assets to meet its short-term
liabilities, the current ratio tells us that.
Loans Turnover Ratio: Loans Turnover Ratio measures how efficiently a financial
institution like Home First Finance Company Limited manages its loan portfolio. It indicates
the number of times the company's loans are turned over during a specific period, typically a
year.
Loan Funds ratio: The Loan Funds Ratio measures the proportion of a financial institution's
funds that are invested in loans. It reflects the company's reliance on loans as a source of
revenue.
Total Income Ratio: The Total Income Ratio measures the company's ability to generate
income from its total assets, including both interest income from loans and other non-interest
income.
Capital Employed Ratio: The Capital Employed Ratio measures how efficiently the
company uses its capital to generate profit.
PBIDTM Ratio: The operating profitability of a business is gauged by the PBIDTM ratio,
commonly referred to as Operating Profit Margin or Operating

Margin. Prior to considering interest costs, depreciation, taxes, and extraordinary items, it
determines the percentage of profit produced by its core business operations.
PBITM Ratio: The PBITM ratio assesses a company's operating profitability before taking
interest costs and taxes into account. It is also referred to as the EBIT (Earnings Before
Interest and Taxes) margin or Operating Profit Margin. The amount of profit derived from
core company operations is calculated.
PBDTM Ratio: The PBDTM ratio, commonly referred to as EBITDA (Earnings before
Interest, Taxes, Depreciation, and Amortization) margin, gauges a business' operating
profitability before taking interest, tax, depreciation, and amortization costs into account.
Without the influence of non-cash expenses like depreciation and amortization, it shows how
effectively a company is making a profit from its activities.
CPM Ratio: The CPM ratio is a marketing metric that measures the cost effectiveness of
advertising campaigns. It represents the cost incurred per thousand impressions or views of
an advertisement. While this ratio is relevant for marketing campaigns, it may not be related
to Kalyan Jewelers’ core financial performance.
APATM Ratio: The APATM ratio measures a company's average profitability after
accounting for all taxes, including income tax. It calculates the percentage of profit that a
company retains from its revenue after tax expenses.
ROCE Ratio: The ROCE ratio measures a company's profitability relative to the capital
invested in its operations. It indicates how efficiently a company utilizes its capital to
generate profit.
RONW Ratio: The RONW ratio measures a company's profitability relative to its
shareholders' equity. It indicates how effectively a company generates profit for its
shareholders' investment.

Home First Finance Company Limited
Particulars 2021 2022 2023

Debt-Equity Ratio 2.40 2.21 2.44
Long Term Debt-Equity Ratio 2.39 2.21 2.44
Current Ratio 39.57 43.22 45.48
Loans Turnover ratio 0.15 0.16 0.15
Loan Funds % 114.34 117.09 124.45
Total Income ratio 12.44 12.57 13.63
Interest Extended Ratio 5.61 4.62 5.28
PBIDTM% 74.06 76.02 76.97
PBITM% 72.50 74.75 75.83
PBDTM% 28.96 39.25 38.25
CPM% 22.03 32.50 29.83
APATM% 20.47 31.24 28.69
ROCE% 9.02 9.40 10.34
RONW% 8.66 12.60 13.46

SWOT ANALYSIS

KALYAN JEWELLERS SWOT ANALYSIS
SWOT analysis is a strategic planning tool that evaluates a company's internal strengths and
weaknesses, as well as external opportunities and threats. Here is a SWOT analysis for Kalyan
Jewellers:
STRENGTHS
Strong Brand Presence: Kalyan Jewellers has established a strong brand presence and is
known for its high-quality jewellery and trustworthiness among customers.
Wide Product Range: The company offers a wide range of jewellery designs, catering to
various customer preferences and price points, enhancing its market reach.
Extensive Retail Network: Kalyan Jewellers has a robust retail network with numerous
showrooms across India and abroad, allowing easy accessibility for customers.
Diverse Customer Base: The company caters to diverse customer segments, including
individuals, families, and bridal customers, ensuring a broad customer base.
Experienced Management Team: Kalyan Jewellers is backed by an experienced management

team with a strong understanding of the jewellery industry.
WEAKNESSES
Dependence on Gold Prices: As a substantial percentage of the company's offerings, gold

jewellery, fluctuations in gold prices can have an impact on the company's profit margins and
sales.
Limited Global Presence: Kalyan Jewellers has grown globally, although its reach is still
exceedingly small in comparison to its home market.
Competition: The jewellery industry is very cutthroat, and Kalyan Jewellers must contend with
both established businesses and up-and-coming jewellery companies.

Higher Operating Costs: Kalyan Jewellers is a store; thus, it has significant operating costs
including rent, inventory control, and overhead.
OPPORTUNITIES:
Expanding Online Retail: By enhancing its online presence, the business can profit from the
expanding trend of online buying.
Product Line Diversification: Kalyan Jewellers may want to consider expanding their product
selection beyond traditional jewellery to include high-end watches or fashion accessories.
International Expansion: The business has the chance to increase its global footprint by entering
new markets where there is a high demand for jewellery.
Customization and Personalization: Giving buyers who want personalized jewellery greater
customization possibilities may draw them in.
THREATS:
Economic factors: Changes in the economy can have an impact on consumer spending on upscale
goods like jewellery, which can have an impact on Kalyan Jewellers' sales and revenue.
Regulatory Changes: The jewellery sector may face difficulties if import/export rules, tax laws, or
government restrictions change.
Products of Counterfeit: Kalyan Jewellers' sales and reputation may be impacted by the
abundance of products of counterfeit jewellery on the market.
Changing Consumer tastes: The market for particular jewellery designs can be impacted by
rapidly changing fashion trends and alterations in consumer tastes.
It is crucial to keep in mind that this SWOT analysis provides a snapshot of Kalyan Jewellers'
circumstances at a specific period. The company's strengths, weaknesses, opportunities, and
dangers may alter as the market and business environment change. A thorough analysis would go
deeper into market trends, competition dynamics, and internal and external issues affecting the
organization.

SWOT ANALYSIS OF HOME FIRST FINANCE COMPANY

LIMITED
Home First Finance Company Limited is a specialized housing finance company that caters to the
affordable housing segment in India. It has established itself as a key player in providing financial
solutions to low and middle-income customers seeking to fulfil their dream of owning a home.
STRENGTHS:
One of the significant strengths of Home First Finance lies in its focused business model. By
concentrating on affordable housing finance, the company has gained expertise in understanding
the unique needs and preferences of its target market. Its customer-centric approach sets it apart
by offering tailored loan products, personalized service, and faster loan processing, enhancing
customer satisfaction. Moreover, the company has demonstrated strong asset quality, with a
relatively low level of non-performing assets (NPAs), indicating effective credit risk management
and prudent underwriting practices.
In addition, Home First Finance has capitalized on digital initiatives, leveraging technology to
streamline loan processing, improve customer engagement, and optimize its operational
efficiency. This technological adoption allows the company to stay competitive and enhances its
ability to serve customers effectively in an increasingly digital world.
WEAKNESSES:
Despite expansion, Home First Finance still faces difficulties because of geographic
concentration. Its operations are mostly concentrated in a few regions of India, which may expose
it to risks associated with the local economy and restrict its ability to diversify.
Business’s reliance on the housing market is also a vulnerability. Any unfavourable changes in the
real estate market, including a downturn or a protracted depression, could impair the demand for
mortgages and have an impact on the company's expansion and profitability.
Credit risk remains a constant threat for any financial institution, including Home First Finance.
Economic downturns or unforeseen events can lead to a deterioration in credit quality, resulting in
higher non-performing assets (NPAs) and credit losses.
In the field of financing for affordable homes, Home First Finance Company Limited has made a
name for itself. Although the company has a competitive edge due to its customer- centric strategy
and emphasis on affordable housing, it must address issues with geographic concentration and the
cyclical nature of the housing industry. Home First Finance can further solidify its position in the
market and continue its growth trajectory in the affordable home finance sector by taking
advantage of rising urbanization, government efforts, digital transformation, and maintaining
strong credit risk management processes.

INDUSTRY ANALYSIS

 INDUSTRY ANALYSIS FOR KALYAN JEWELLERS
Kalyan Jewellers operates in the jewellery retail industry, which is a part of the broader
luxury goods sector. The jewellery industry is characterized by its association with
cultural traditions, personal adornment, and a symbol of wealth and status. It caters to a
diverse customer base, including individuals, families, and bridal customers, and thrives
on occasions like weddings, festivals, and special celebrations.
MARKET SIZE AND GROWTH:
The jewellery market in India has been steadily growing, driven by increasing disposable
incomes, urbanization, and a strong cultural affinity towards jewellery. With a large and
diverse population, India represents a significant consumer base for jewellery products.
Additionally, the growing trend of online shopping has opened new avenues for jewellery
retailers like Kalyan Jewellers to reach a broader audience.
COMPETITION AND MARKET SHARE:
The jewellery industry in India is highly competitive, with numerous established players,
regional brands, and emerging players vying for market share. Kalyan Jewellers faces
competition from both domestic and international jewellery retailers. To maintain its
competitive edge, Kalyan Jewellers focuses on providing a wide range of high-quality
jewellery designs, excellent customer service, and a strong brand presence.

TRENDS AND CONSUMER PREFERENCES:
Consumer preferences in the jewellery industry are influenced by changing fashion

trends, cultural factors, and evolving customer tastes. Personalization, customization, and
ethical sourcing have become significant trends in recent years. Consumers are also
showing an increased preference for lightweight and contemporary designs.
REGULATIONS AND COMPLIANCE:
The jewellery industry is subject to various regulations concerning the purity of precious
metals, hallmarking standards, and import-export policies. Kalyan Jewellers must comply
with these regulations to ensure product authenticity and customer trust.
 INDUSTRY ANALYSIS FOR HOME FIRST FINANCE COMPANY LTD:
Home First Finance Company Limited operates in the housing finance industry, which is
a critical sector of the financial services industry. The housing finance industry plays a
crucial role in providing affordable home loan solutions to individuals and families,
promoting homeownership, and supporting the government's housing initiatives.
MARKET SIZE AND GROWTH:
The housing finance industry in India has witnessed significant growth, driven by
increasing urbanization, rising middle-class aspirations, and favourable government
policies to promote affordable housing. With a large population and a shortage of
affordable housing, the market presents substantial opportunities for companies like
Home First Finance.
TARGET MARKET AND CUSTOMER SEGMENTS:
Home First Finance primarily focuses on low and middle-income customers who may
face challenges accessing traditional banking channels. By catering to this underserved
market segment, the company addresses the housing needs of those seeking affordable
home loans.
REGULATORY ENVIRONMENT:
The housing finance industry is subject to stringent regulatory oversight from bodies like
the Reserve Bank of India (RBI) and the National Housing Bank
(NHB). Compliance with regulations and adherence to prudential norms are crucial for the
smooth functioning and stability of housing finance companies like Home First Finance.
TECHNOLOGY AND DIGITAL TRANSFORMATION:
The housing finance sector has embraced technology to streamline loan processing,
enhance customer experience, and expand its reach. Home First Finance has adopted
digital initiatives to make loan applications more accessible, improve loan disbursals, and
ensure efficient operations.
CHALLENGES AND RISKS:
The housing finance industry faces challenges related to credit risk management, interest
rate fluctuations, and exposure to changes in the real estate market. Home First Finance
needs to manage these risks effectively to maintain asset quality and financial stability.
In conclusion, both Kalyan Jewellers and Home First Finance Company Ltd operate in
dynamic and competitive industries, with their unique challenges and growth
opportunities.
CONCLUSION
Both Kalyan Jewellers and Home First Finance Company Ltd are prominent players in their
respective industries, each with them.
unique strengths and growth opportunities.
Kalyan Jewellers, as a leading jewelry retailer, has established a strong brand presence and
customer loyalty through its commitment to high-quality products and excellent customer service.
The company's diversified product range and geographical expansion have enabled it to cater to a
wide customer base, both domestically and internationally. However, Kalyan Jewellers faces the
ongoing challenge of a highly competitive market, necessitating continuous innovation and
adaptation to changing consumer preferences. By investing in innovative marketing strategies,
focusing on customer experience, and staying ahead of industry trends, Kalyan Jewellers can
maintain its position as a trendsetter in the jewelry industry.
On the other hand, Home First Finance Company Ltd, a specialized affordable housing finance
provider, has found success by targeting low and middle-income customers seeking
homeownership. The company's prudent credit risk management and adoption of digital
initiatives have streamlined operations and improved customer experience. However, Home First
Finance needs to address the geographical concentration risk by exploring expansion
opportunities to new regions. Moreover, diversifying its product offerings and strengthening
customer outreach programs can enhance market penetration and revenue streams. By
continuously investing in technology and regulatory compliance, Home First Finance can sustain
its growth trajectory and cater effectively to the affordable housing segment's evolving needs.
Both companies operate in dynamic markets, and their future success hinges on their ability to
adapt to changing market dynamics, technological advancements, and customer preferences. By
capitalizing on their strengths, addressing weaknesses, and embracing innovation, Kalyan
Jewellers and Home First Finance Company Ltd can navigate.

challenges, solidify their positions in the industry, and achieve sustained growth and profitability
overall. As they continue to evolve and execute their strategic plans, these companies exemplify
the essence of thriving in highly competitive industries through customer-centricity, innovation,
and sound financial practices.

FINDING AND SUGGESTIONS
Operating in the housing finance sector and serving the affordable housing segment is Home First
Finance Company Ltd.
The company has been successful in serving low and middle-income consumers who want to buy
a home thanks to its narrowly concentrated market segment and customer-centric strategy.
With low levels of non-performing assets (NPA), Home First Finance has proven to have high
asset quality and comprehensive credit risk management procedures.
Along with streamlining loan processing and improving client satisfaction, the business' use of
digital initiatives has increased its competitiveness in the digital era.
However, the corporation must diversify because of how geographically concentrated it is,
which exposes it to local economic dangers.
The jewelry retailer Kalyan Jewelers is well known for its strong brand recognition and broad
product selection that meets the needs of a wide spectrum of customers.
Strong client loyalty has been cultivated through the business's reputation for high-quality jewelry
and customer-centricity.
The geographic reach of Kalyan Jewelers has increased, as has its internet presence.
The extremely competitive nature of the jewelry sector, however, poses difficulties and
necessitates ongoing efforts to stay ahead.
By putting these recommendations into practice, Home First Finance Company Ltd. and Kalyan
Jewelers may build on their strengths, rectify their shortcomings, and take advantage of
opportunities to traverse difficulties in their respective industries successfully, assuring
sustainable growth and competitive advantage.

BIBLOGRAPHY
 (2023, 6 20). Retrieved from https://dhan.co/stocks/kalyan-jewellers-ltd-fundamental-

analysis/.
 (2023, 6 25). Retrieved from
https://www.topstockresearch.com/INDIAN_STOCKS/GEMS_JEWELLERY_AND_WATC
HE S/FundamentalAnalysisOfKalyan_Jewellers_India_Ltd.html.
 (2023, 6 20). Retrieved from Economic Times: https://m.economictimes.com/kalyan-
jewellers-india-ltd/stockreports/reportid-2002614.cms
 Banking and insurance Himalaya publishers. (n.d.). O.P. AGRAWAL.
 Public sector banks in India Rajat publication. (n.d.). S.K. CHAUDHARY.
 Research Methodology new age international publishers second edition. (n.d.). C.R.
KOTHARI.
 Research Methodology new age international publishers second edition. (n.d.). C.R.
KOTHARI.

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Fundamental analysis of selected stocks Kalyan Jewellers and Home First Finance Company Limited Mohmmad Nazia Asma

Rizvi Institute of Management Studies & Research

1.1 INTRODUCTION TO FUNDAMENTAL ANALYSIS

Fundamental Analysis is a comprehensive study of a business that examines economic,

Rizvi Institute of Management Studies & Research

Fundamental analysis is a method of determining a stock real or fair market value. FA

UNDERSTANDING FUNDAMENTAL ANALYSIS

Analysts typically study in order:

 The overall state of the economy

Purpose of Fundamental Analysis

Key Components of Fundamental Analysis Financial Statements:

Fundamental Analysis heavily relies on a company’s financial statements, including the

Management and Leadership: Fundamental analysis also examines the quality of a

Fundamental vs Technical Analysis: It is crucial to distinguish between technical analysis

Rizvi Institute of Management Studies & Research

Fundamental Analysis's Importance

Rizvi Institute of Management Studies & Research

1.2 NEED OF FUNDAMENTAL ANALYSIS

Rizvi Institute of Management Studies & Research

Analyze the company's management team. Kalyan Jewellers is led by a strong

Rizvi Institute of Management Studies & Research

1.3 TYPES OF FUNDAMENTAL ANALYSIS

To evaluate a company's financial performance and health, quantitative analysis entails

Rizvi Institute of Management Studies & Research

 Company And Management Analysis

Analysis of a company's business model, management group, and corporate strategy is

Event-driven analysis looks at occurrences or drivers that may influence a company's

1.4 ADVANTAGES AND DISADVANTAGES OF

Fundamental analysis focuses on an asset's fundamental worth and gives investors

 Understanding the Business:

Fundamental analysis aids investors in developing a thorough understanding of the

 Financial Health Evaluation:

Using fundamental analysis, investors can evaluate a company's profitability, liquidity,

 Finding Growth Opportunities:

Rizvi Institute of Management Studies & Research

 Aligning Investment Strategies:

Following are the disadvantages of Fundamental Analysis:

3. Limited Short-Term Predictions:

Fundamental analysis is strongly dependent on the accuracy of predictions and

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6. Market Sentiment and External elements:

Fundamental analysis is nevertheless a useful tool for investors looking to gain a

Rizvi Institute of Management Studies & Research

1.5 APPROACHES OF FUNDAMENTAL

Company review: Finally, conduct a thorough review of the financial statements,

Rizvi Institute of Management Studies & Research

Company Analysis: Assess the financial statements, performance indicators, competitive

Company Selection: After identifying companies that are potentially undervalued or

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Rizvi Institute of Management Studies & Research

OVERVIEW OF THE INDUSTRY

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2.1 INDUSTRY OVERVIEW

Market Size and Growth

The retail jewellery industry contributes significantly to the worldwide retail

Key businesses and Competition

Consumer demographics are especially important in determining the retail

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Trends and Fashion

Gold Price Volatility

E-commerce and online presence

Customer Experience and Branding

Regulations and Ethical Practices