Certificate

I, Amit Rawat, Roll No. 102880003912 certify that the Project Report /Dissertation (MS-202)
entitled Fundamental Analysis Of Steel Companies With respect to NCR Region" is done by
me and it is an authentic work carried out by me during the period (Jan-Apr 2014). The matter
embodied in this project work has not been submitted earlier for the award of any degree or diploma
to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Project Report/Dissertation (MS-202) entitled Fundamental Analysis Of Steel
Companies With respect to NCR Region done by Amit Rawat Roll No. 102880003912 completed
under my guidance.

Signature of the Guide

Date:
Name of the Guide: Dr. Rekha Dhingra
Designation: Associate Professor

Countersigned
Director/Project Coordinator
1

Acknowledgement
It is not possible to prepare a project report without the assistance & encouragement of other people.
This one is certainly no exception. I am extremely thankful and pay my gratitude to my guide, Dr.
Rekha Dhingra for his valuable guidance and support on completion of this project.
I am also extremely grateful to Dr. Sonali Yadav, Program Coordinator, for her support and for
giving us an opportunity to show our innate qualities to be implied in practical environment. I am
also thankful to all teachers, non teaching staff and all my friends of the institute for their kind help.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member of
my family, who has always supported me morally as well as economically. At last but not least
gratitude goes to all of my friends who directly or indirectly helped me to complete this project
report.

Amit Rawat
102880003912

EXECUTIVE SUMMARY
The study was mainly conducted to understand Fundamental Analysis of Steel Industry With respect
To NCR Region. This project tells us about the Fundamental analysis of a business involves
analysing its financial statements and health, its management and competitive advantages, and its
competitors and markets. When applied to futures and forex, it focuses on the overall state of the
economy, and considers factors including interest rates, production, earnings, employment, GDP,
housing, manufacturing and management. When analysing a stock, futures contract, or currency
using fundamental analysis there are two basic approaches one can use; bottom up analysis and top
down analysis. The term is used to distinguish such analysis from other types of investment analysis,
such as quantitative analysis and technical analysis.
Objectives of the study were to do fundamental analysis of five major companies in Steel industry, to
estimate the intrinsic value of the stock of selected companies, to determine the market price of the
share is overpriced or underpriced on the basic of intrinsic value, to analyse the performance of
selected companies of Indian Steel industry.
For the purpose of research analysis SPSS software and Ms Excel was used. And the findings
were ,it is better to invest in companies with good market value, good performance in revenue
and one should consider the various factors affecting the performance before investing. Even
though the industry may perform well, several ratios like, financial ratios, growth ratios, sales etc.
should be properly analyzed with reference to that company and also with the industry. As P/E
ratio is directly related to market price per share and the Earnings per share while looking at the
P/E ratio one should analyze the return and go for better portfolio.

CONTENTS

S No.

Topic

Page No.

Certificate

Acknowledgement

ii

Executive Summary

iii

List of Tables

List of Figures

vi

List of Abbreviations

vii

Chapter-1: Introduction

Chapter-2: Literature Review

15

Chapter-3: Data Presentation & Analysis

18

10

Chapter-4: Summary & Conclusions

67

11

Chapter-5: Recommendations

71

12

Bibliography

72

LIST OF TABLES
Table No.

Title

Page No.

3.1

Balance Sheet of Jindal Steel

18

3.2

Profit And Loss account of Jindal Steel

20

3.3

Cash Flow Statement of Jindal Steel

22

3.4

Financial Ratios of Jindal Steel

23

3.5

Balance sheet of Mahindra Ugine

27

3.6

Cash Flow Statement of Mahindra Ugine

29

3.7

Profit & Loss account of Mahindra Ugine

30

3.8

Financial Ratios of Mahindra Ugine

32

3.9

Balance Sheet of SAIL

35

3.10

Cash Flow Statement of SAIL

37

3.11

Profit &Loss account of SAIL

38

3.12

Financial Ratios of SAIL

40

3.13

Balance Sheet of Tata Steel

44