A REPORT

ON
INVESTMENT OPPORTUNITY IN STOCK MARKET WITH RESPECT
TO MANUFACTURING SECTOR

By
Debabrata Bag
Enrollment No
(11BSPHH011149)
IBS HYDERABAD
ICFAI UNIVERSITY

1|Page

A REPORT
ON
INVESTMENT OPPORTUNITY IN STOCK MARKET WITH RESPECT
TO MANUFACTURING SECTOR

By
Debabrata Bag
Enrollment No
(11BSPHH011149)
A Report submitted in partial fulfillment
Of the requirements of
MBA Program of
IBS Hyderabad
Distribution List:

Prof. K. Rajyalakshmi

Mr. P. Shashi Kumar

Professor

Advisory Manager

IBS Hyderabad

Sharekhan Ltd.

Date of Submission: 4th June, 2012

2|Page

ACKNOWLEDGEMENTS
I express my sincere thank to Mr. P Shashi Kumar for giving me an opportunity to work as part
of his team through this summer project.
I would like to offer my sense of indebtedness towards my Company Guide Mr. P Shashi Kumar,
Advisory Manager, Sharekhan Ltd. for the continuous support and guidance extended towards
the completion of this project.
Gracious help from various sources have contributed tremendously to the completion of this
project work.
I am also grateful to my Faculty Guide, Prof. K. Rajyalakshmi, who has provided me with valuable
feedback at every stage of the project. His feedback has greatly helped me to learn about my
strengths and identify my weaknesses. He is available for help at every juncture of the project
and has provided us with his able guidance throughout the project.
Last but not the list, I am also grateful to all my colleagues at Sharekhan Ltd. who have gone out
of their way to help and support me on various assignments during my internship. It was a great
learning experience working as a part of the Business Performance Services team at Sharekhan
Ltd.

3|Page

CONTENTS
TOPIC

PAGE NO.

1. EXECUTIVE SUMMARY...6
2. INTRODUCTION OF THE STUDY
2.1 Introduction.....7
2.2 Objective of the Project.......7
2.3 Research Methodology....7
2.4 Data Collection........8
2.5 Scope...8
2.6 Limitations...9
3. ECONOMY ANALYSIS
3.1
Introduction.10
3.2
Growth Rate of India......10
3.3
Development Indicators..11
3.4
GDP of India...11
3.5
Inflation of India.12
3.6
Stock Market Trends...13
3.7
Currency System.14
3.8
Foreign Trade......15
3.9
Foreign Direct Investment..18
3.10 Foreign Exchange Reserve............22
3.11 Trends in Exchange Rate...22
3.12 Key Industry check....23
4 INDUSTRY ANALYSIS
4.1 Introduction...26
4.2 Indias Manufacturing Industry Scenario..26
4.3 Importance of Manufacturing Sector in Indias Economic Growth..27
4.4 Manufacturing Industry Structure in India....27
4.5 Steps Taken by government...29
4.6 Govt. Policies for FDI....30
4.7 Financial Year 2011-12 for Manufacturing Industry.....31
4.8 Major Players in the Manufacturing Industry....31
4.9 Prospects of Manufacturing Industry in India...33
4.10 Analysis of Manufacturing Industry under Porters Five Forces Model...35
4|Page

FINANCIAL SYSTEM OVERVIEW

5.1 Introduction....37
5.2 Capital Formations and Economic Development...37
5.3 Indian Financial System.....38
5.4 Financial Instruments in the Market...38
5.5 Conceptual Framework of How the Financial System Works...40
5.6 Stock Market..41
5.7 Market Participants....42
5.8 Importance of Stock Market..42
5.9 Impact of Stock Exchange in India.......42
5.10 Trading in India.......43

COMPANY ANALYSIS
6.1 Introduction about Sharekhan...45
6.2 Vision46
6.3 Mission..46
6.4 Reason to choose Sharekhan Ltd..46
6.5 Management..47
6.6 Product and Services of sharekhan48
6.7 Types of Account..48
6.8 Research section in Sharekhan......52

PROJECT SPECIFIC ANALYSIS

7.1 Company Analysis.53
7.1.1 NTPC...55
7.1.2 TATA POWER65
7.1.3 TATA STEEL......73
7.1.4 JSW STEEL.....81
7.1.5 L&T..87
7.1.6 BHEL...96
7.2 Financials of Different Companies....104
7.3 Technical Analysis.108
7.4 Technical Analysis of Different Companies..112
7.5 Peer Company Evaluation of Different Companies...128

8 CONCLUSION & RECOMMENDATION..130

9 ON-JOB TRAINING AND LEARNING FROM SIP...136
10 REFERENCES..141

5|Page

Executive Summary
This project is an attempt to understand the basics of stock market. A project, which will make
me well, versed with the market happenings ups & downs in the stock market.
The first part will give a brief introduction about the study and its objective. Then it will
followed by methodology which will be followed here throughout the report and then scope and
limitation.
The second part gives the detail of fundamental analysis of manufacturing sector and how to
proceed further.
Next I have started with Economy of country which helps us to know the current scenario of our
country in terms of economy which taken into A/c GDP levels along with future predictions,
current inflation rate, currency of the country, service industry of the India & FDIs in India.
The next part talks about the Industry part and manufacturing Industry scenario in India, Govt.
Policies, FDIs for particular this sector etc.
Then I talked about Financial System Overview and Indian Financial System and about trading
part.
Then the company analysis comes. It started with introduction of Sharekhan Ltd, Vision,
Mission, Different Product and Services and the facilities of different types of product and
services.
Next I started with Project Specific Analysis for companies like NTPC, TATA POWER, TATA
STEEL, JSW STEEL, L&T and BHEL. These companies analysis comprise of Overview of the
company, Vision, Mission, Management, Shareholding Pattern, Projects and Investments,
Subsidiaries, Recognition, Prospects, Core Values, SWOT Analysis and Financials of
Companies.
The Conclusion & Recommendation based on Companys Financial Analysis and Technical
Analysis. It helps us take a prediction as to how strong the stock is for future investments.
Further it also helps the investors to be cautious in investing in the company by giving the risk
factors associated with the company.
Then I have written my contribution during my SIP project and my learning from SIP.

6|Page

INTRODUCTION OF THE STUDY

INTRODUCTION
The following project is a study of the Indian Stock Market & an investment opportunity with
respect to manufacturing sector in India.
The capital market (securities markets) is the market for securities, where companies and the
government can raise long-term funds. The capital market includes the stock market and the
bond market. A stock market is a market for the trading of company stock and derivatives.
The analysis of stock will give me the opportunity to understand broadly the behavioral patterns
of different equity, to know the trading, clearing & settlement aspect of stock market. This
project will help me to understand the contribution of stock market in the Indian Economy. In a
single market day huge amount of money flows and millions of share exchange take place. This
share exchange leads to huge amount of money inflow and outflow from a firm. The company
whose shares are listed in stock exchange and the govt. plays a vital role through the policies
which had been formed in the market, helps them to raise long term funds which can be used for
benefit & the future growth of the companies and also give back some part of their profit to the
investor in the form of dividends.
Also through this project I will try to derive the analysis of the manufacturing sector concluding
with the opportunities of investing in the sector.
OBJECTIVE OF THE PROJECT
Gain practical knowledge in Share Trading and Familiarize with all the workings of
Online Trading.
Study the present behavior & predicting the future behavior of Equity in Stock Market.
Understand the activities of E-Broking Firm
Analyze the Financial Market & the share movements in order to study the prospects of
investing in a particular stock or sector.

RESEARCH METHODOLOGY
Research is an active, diligent and systematic process of inquiry aimed at discovering,
interpreting and revising facts. This intellectual investigation produces a greater understanding of
events, behavior or theories and makes practical applications through laws and theories. The
7|Page

term research is also describe as collection of information about a particular subject, and is
usually associated with science and scientific method.
My first task before starting the process was to understand what fundamental analysis is all about
& what the steps to achieve it are. For this my first step was going through various Internet sites
& reading about the methods of fundamental analysis & the usefulness of the whole process.
After reading through the whole data I then went about understanding fundamental analysis with
the help of Company Guide Mr. P Sashi Kumar and Faculty Guide Prof. K. Rajyalakshmi.
Once I got to know about Fundamental analysis, my task was to select companies in the
manufacturing sector so that I can conduct the analysis. After doing a thorough research on the
manufacturing sector I have chosen NTPC, BHEL, TATA POWER, TATA STEEL, JSW
STEEL, L&T and Govt. Infra Bonds for my research project.
The next step leads me to knowing the history about the companies along the growth prospects
for the future.
Once this was done I went ahead & started my analysis on the companies & concluded the
project with my say on the future investment prospects in those companies.
DATA COLLECTION:
Primary data for a project is the first hand information regarding the project being
studied. In this regard the primary data for this project would be getting the necessary
information from the company management by an interview, telephonic conversation or
direct mail.
Secondary data for a project would be the collection of information that has a bearing on
the outcome of the project from secondary sources like press release, internet, news etc.
The data collected for this project was from a secondary source. The data was compiled with the
help of sources like Internet, Press release, News articles etc. in this research project primary
data could not be gathered as the company officials could not be contacted for a one to one
interview or a telephonic interview.
SCOPE
The scope of this project is limited to only one sector i.e. manufacturing sector. The
manufacturing sector comprises of different sector like Power, Steel, Aluminum, Zinc,
Infrastructure, Automobile etc. In this project I have taken three sectors for my analysis.
Sectors are Power, Steel and Infrastructure. Within these three sectors I have chosen Six
8|Page

companies for my analysis NTPC, TATA POWER, BHEL, TATA STEEL, JSW
STEEL and L&T.
This project is concern with only manufacturing sector and restricted to above those
companies. The project does not extend its scope to any other sector of companies.
Source of information for this project is only secondary data. The data about the
manufacturing sector, the Govt. Policies with respect to the sector, and the information
about the companies is all gathered from secondary sources, available on the websites,
annual reports, business magazine and journals.
LIMITATIONS
To understand the overall working of share market, the period of 12 weeks is not enough.
Moreover, very few investor and agents have a detail knowledge of the study.
The data provided by investor and agents cant be held true as 100% correct.
Primary data available but it is very much difficult to get because there is very little
possibility to interact with one to one managements people of different companies.
This field is requiring with very deep fundamental & technical knowledge
High risk involve while trading on behalf of the clients under the guidance of RM
Acquiring new clients it was the tough task to perform

9|Page

ECONOMIC ANALYSIS
Introduction
In a Top-Down approach first and foremost thing is overall evaluation of general economy. The
economy is like the tide and the various companies and industry groups are like boats. With the
expansion of economy most companies and industry groups expand and with the declination of
economy most companies and sectors usually suffer. So, it is very much important to study the
economy.
According to economic experts and various studies conducted across the globe envisage India
and China to rule the world in the 21st Century. For over a century the US has been the largest
economy in the world but major developments have taken place in the world economy since
then, leading to shift of focus from the US and the rich countries of Europe of the two Asian
giants- India and China. The European Union has seen the greatest decline in GDP share by
6.1%. Within Asia, the rising share of China and India has been increasing since 1990.
Since Independence Indian Economy has thrived hard for improving its pace of development. In
the past few years the cities in India have undergone tremendous infrastructure up-gradation but
the situation is not similar in most part of rural India. Similarly in the realm of health and
education and other human development indicators Indias performance has been far from
satisfactory, but showing a wide range of regional inequalities with urban areas getting most of
the benefits. In order to attain the status that currently only a few countries in the world enjoy
and to provide a more egalitarian society to its mounting population, appropriate measures need
to be taken.

GROWTH RATE OF INDIA

10 | P a g e

Development Indicators:
The productivity scenario of Indias economy is experiencing a faster rate of growth in 2006-08
and 2010-11. Some of the development indicators of the Indias economy are as follows:
Both the Savings and Investment rates in the country are experiencing a faster rate of
growth.
The age profile in India among the global population over the world is considered to be a
better dividend for the countrys economy. Young population group of Indias economy
has significantly added to countrys growth.
Policy measures undertaken in India recently have helped a lot in the economic progress.
Economic growth has created huge employment opportunities on the one hand and
reduced poverty on the other. With manifold objectives in mind, the government has
come forward with high investments on social sector development particularly on health,
education and infrastructure related developments.
The Government of India in the same direction has undertaken many steps to train and
educate its masses for getting employment.

GDP of INDIA
Indias GDP crossed the trillion-dollar mark and also joined the elite club of 12 countries with a
trillion dollar economy. Countries that have breached trillion dollar GDP level in the past are the
US, Japan, Germany, China, UK, France, Italy, Spain, Canada, Brazil and Russia.
The outlook for Indias GDP growth changed substantially during the course of 2011-12. The
tone at the beginning of the year was that India has not only emerged relatively unscathed from
the global financial crisis of 2008, but has also returned to its trend growth rate of 8% plus.
However, as the year progressed, pressure points emerged on the domestic front, due to stubborn
inflation and policy logjam, and on the global font, due to the Euro zone debt crisis.
Consequently, market sentiments and economic growth took a beating and, as per CSOs
estimate growth in 2011-12 is 6.9%.
Indias large Service Industry accounts for 57.2% of the countrys GDP but it is expected to
come down from 9.4% in 2011-12 to 8.7% in 2012-13 due to lower growth in hotels, transport,
communication, community, social and personal services.

11 | P a g e

Industrial sectors contribute 28.6% of the countrys GDP. However, industrial growth is
expected to improve from the 2011-12 levels of 3.9% to 5.6% in 2012-13 due to low base and
monetary easing by RBI in view of moderation in inflation.
Agricultural sectors contribute 14.6% of the countrys GDP. In the event of normal monsoon,
agriculture is expected to grow at 3% in 2012-13.

Inflation in INDIA
India faces a very high risk of a return to rising inflation with the government continuing with its
spending spree and the central bank easing liquidity. According to Morgan Stanley the recent
moderation was largely due to a delay in hike of administered product price.
As on report published from New Delhi on 16th April, 2012, Indias Wholesale Price Index based
Inflation rate eases lower to 6.89% in March2012.
Inflation rate in India decreased slightly to 6.89% in March 2012 from 6.95% in February 2012
based on 2004-05 base year. The rate of Inflation was 9.68% in March 2011.
Office of the Economic Adviser (OEA) of the Ministry of Commerce and Industry, Government
of India, released the latest monthly and annual Inflation rate data on Monday 16th April, 2012.
WHOLESALE PRICE INDEX (WPI) Break-up for March 2012:
Primary Articles (Weight in WPI 20.11%): 9.62% Vs 6.28% Month on Month (MOM)
Food Articles (Weight in WPI 14.34%): 9.94% Vs 6.07% Month on Month (MOM)
Non-Food Articles (Weight in WPI 4.26%): -1.20% Vs -2.56% Month on Month (MOM)
Fuel and Power (Weight in WPI 14.91%): 10.41% Vs 12.83% Month on Month (MOM)
Manufacturing Products (Weight in WPI 64.97%): 4.87% Vs 5.75% Month on Month
(MOM)
The Inflation rate in India based on the WPI. In INDIA WPI is more closely observed than
Consumer Price Index (CPI), as it includes a higher number of Products. Manufactured products
have a weight of about 65% in the WPI basket.

12 | P a g e

WHOSALE PRICE INDEX Based Inflation Rate in India:

Month

April
11

Inflati 9.74
on
(%)

May
11

Jun
11

July Aug Sep

11
11
11

Oct
11

Nov Dec
11
11

Jan
12

9.56

9.51

9.36

9.87

9.46

6.89 6.95

9.78

10.0

7.74

Feb
12

March
12
6.89

During most part of 2011-12, Inflation remained a major macroeconomic risk and policy
challenge for both RBI and the government. RBI continued with its monetary tightening
measure, which started in 2010-11. Although year-on-year Inflation has begun to ease since
December 2011, the moderation has been driven primarily by a seasonal drop in prices of food
items. The sustained firmness in oil prices- that limited its pass-through into retail pricescontinues to pose an upside risk to domestic Inflation. However, it is expected that WPI- based
inflation to average 6.2% in 2012-13 because of: (I) Low price power of corporate and (II) High
base of last year.

STOCK MARKET TRENDS

According to the Experts year 2012 stock market trend may be positive but they are also saying
that the impact of what all went wrong in 2011 may be felt this year too. In 2011, just when we
thought the 2008 global financial crisis was behind us with stock markets rallying all through
2009 and 2010 came another shocker, the European Debt crisis. After rising from 15,000 levels
in January 2009 to around 21,000 in November 2010, the BSE SENSEX has slipped to the
16,000 level. Although this is not as steep a fall as that in 2008, theres uncertainty over the
future.
According to Mr. Dipen Shah, head of Fundamental Research, Kotak Securities, The issues
faced by the US and Europe, which have unsustainable debt levels, have pushed some countries
on the verge of bankruptcy. The European countries are making cosmetic changes that may not
solve their structural problems.
Apart from Global Factors, India is failure to solve its problems ensured its stocks
underperformed most markets in 2011. According to Mr. Lalit Thakkar, MD, Institutional
Broking, Angel Broking, India is facing its own set of issues in the form of supply constraints
and policy paralysis that have brought fresh investments to a halt. The scale of supply problems
in such important sectors as energy, food and mineral resources is mind-boggling. India has an
13 | P a g e

issue on the food supply front due to structural problems such as small land holdings and lack of
corporatization of agriculture.
Another dark cloud on the horizon as we move into 2012 is the depreciation of the rupee against
the US dollar in the last few months. This had a big impact on companies that depend on imports
and a handful of large companies playing the interest arbitrage game between their domestic and
foreign loans. This can be another spoilsport in 2012.
Too much volatility in stock market is a serious concern for corporate as well as potential
investors.

Source: www.finance.yahoo.com

CURRENCY SYSTEM
The present currency system in India (i.e., after World War II) is managed by the RBI and is
based on inconvertible paper currency system. It has two aspects: (I) Internal Aspect and (II)
External Aspect.
The Internal Aspect deals with the circulation of coins and currency notes, while the external
aspect deals with the external value of currency and the way it is regulated.
14 | P a g e

The main features of the present currency system in India are given below:
A. Coins
B. Currency Notes

FOREIGN TRADE
As per EXIM Bank Indias total merchandise trade increased over three-fold from US$ 252
Billion in FY 2006 to US$ 792 Billion in FY 2012. Both exports and imports have trebled during
the period. Trade-GDP ratio increased from 30.2% in FY 2006 to 42.5% in FY 2012. ExportsGDP ratio increased from 12.3% in FY 2006 to 16.3% in FY 2012.

If we see the current scenario of Export then we can say that the direction of Export is moving
towards the Southern Countries, particularly Asia and Africa region due to market volatility in
USA & EURO Zone. Share of Asia, Africa and LAC regions increased sharply from 45% in
2000-01 to 63.2% in 2011-12: of this, share of Asia region rose from 39% to 52% during this
period. It is expecting that Future trade flows to be geared towards the developing nation.

15 | P a g e

Indias Major Trading Partners

Indias Trade Basket

16 | P a g e

Indias Trade in Services

17 | P a g e

FDI (Foreign Direct Investment)

In 1980s India was maintaining a selective approach towards Foreign direct Investment (FDI).
The selectivity in approach was governed principally by the then objective of technology transfer
and export promotion that the policy makers expected the foreign capital to meet. A number of
measures had been designed to maximize the perceived benefits from foreign investments while
simultaneously keeping the costs low.
In July 1991, the government introduced a number of changes in the countrys regulatory
policies. To attract FDI the changes that had been made by Govt. of India are as follows:

Delicensing

De-reservation of many public sector reserved areas

Registration under the MRTPA

Removal of 40% ceiling of Foreign Equity under FERA

Lifting the restriction on of foreign brand names in the local market

Withdrawal of the restriction on entry into low technology consumer goods.

A number of studies in the recent past have highlighted the growing attractiveness of India as an
investment destination. According to Goldman Sachs (2003), the Indian economy is expected to
continue growing at the rate of 5% or more until 2050.
According to the A.T. Kearney (2007), India continues to rank as the second most attractive FDI
destination, between china at number one and the US at number three. In 2005 India displaced
the United States and gained the second position. FDI inflows in 2006 touched $ 19.6 Billion and
in 2007, total FDI inflows in India stood at $ 23 Billion, showing a growth rate of 43.2% over
2006. In 2008, total FDI inflows into India stood at $35 Billion.
Due to high market volatility in US and Euro Zone Debt crisis the investors now prefer India and
China. Apart from global crisis another reason for investment is highly skilled labor with
minimum wages.

18 | P a g e

Indias Direct Investment Flows

FDI is prohibited in:

Retail Trading (Except single brand product retailing)
Lottery Business including Govt. /Private lottery, online lotteries, etc.
Gambling and Betting including casinos etc.
Chit Funds
Nidhi Company
Trading in Transferable Development Rights (TDRs)
Real Estate Business or Construction of Firm Houses
Manufacturing of Cigars, cheroots, cigarolls, of tobacco or of tobacco substitutes
Activities / Sectors not open to private sector investment e.g. Atomic Energy and
Railway Transport ( other than Mass Rapid Transport Systems)

19 | P a g e

FDI is permitted in:

Sl.
No.
1
2
3

4
5
6
7

Sector/Activity

% of FDI Cap/Equity

Entry Route

Agriculture& Animal Husbandry

Tea Plantation

100

Automatic

100

Government

Mining ( Metal & non-Metal, Coal

& Lignite,

100

Automatic

100

Government

100

Automatic

Mining and mineral seperation of

titanium bearing minerals and ores,
its value addition and integrated
activities
Petroleum & Natural Gas

FDI in MSEs (as defined under Micro, Small and Medium Enterprises Development Act, 2006
(MSMED, Act 2006) will be subject to the sectoral caps, entry routes and other relevant sectoral
regulations.
Defence
26
Government
26 (FDI, NRI & PIO
investment and portfolio
investment)

Terrestrial Broadcasting FM (FM

Radio)

Cable Network

10

DTH

11

Newspaper & Magazine (News &

Current Affairs)

26 (FDI and investment by

NRIs/PIOs/FII)

Government

12

Magazine (Scientific &

Technical/Specially journals )

100

Government

100

Automatic

100

Automatic upto 74%,

Government route
beyond 74%

13

Airports (Greenfield projects)

14

20 | P a g e

Airports (Existing projects)

49 (FDI, NRI & PIO

investment and portfolio
investment)
49 (FDI, NRI & PIO
investment and portfolio
investment) Within this limit,
FDI component not to exceed
20%.

Government

Government

Government

15

Construction Development:
Townships, Housing, Built-up
infrastructure

100

Automatic

100

Automatic

74

Government

18

Satellites- Establishment and

Operation as per ISRO gudielines
Private Security Agencies

49

19

Telecom Sevices

74

20

ISP with gateways

74

Government
Automatic upto 49%,
Government route
beyond49% and upto
74%
Automatic upto 49%,
Government route
beyond49% and upto
74%

16
17

21
22
23

Industrial Parks- new and existing

Cash & Carry Wholesale Trading/

Wholesale Trading (Including
sourcing from MSEs)
E-commerce activities
Single Brand Product Retail
Trading

24

27
28
29
30

Automatic

100

Automatic

100

Government

74 including investment by FIIs

Automatic upto 49%,

Government route
beyond49% and upto
74%

Banking-Private Sector

25
26

100

Banking-Public Sector

Credit Information Companies

NBFC
Phamaceuticals (Greenfield)
Phamaceuticals (Existing)

20 (FDI & Portfolio

Investment)

Government

49 (FDI & FII)

Government

100

Automatic

100
100

Automatic
Government

Source: Ministry of Commerce and Industry Government of India

21 | P a g e

FOREIGN EXCHANGE RESERVE

Indias Foreign Exchange Reserve rose by $ 758.3 million to $295.361 billion in the week ending
April 27 even as RBI sold dollars on May 05, 2012 to keep exchange rate volatility under leash.
Forex dealers said the central bank had intervened in the market selectively while the rupee closed
the week under review at 52.54 a dollar. Foreign currency assets rose by $736.4 million to $260.955
billion, the central bank said in its latest weekly statistical report. Foreign currency assets contribute
90% to the countrys reserves, and the change reflects revaluation of overseas currencies including
dollar, euro and pound sterling.
Official data showed that the countrys reserve position in the IMF rose $8.7 million to $2.913
billion and SDR rose $13.2 million to $4.470 billion while valuation of gold reserves remained
unchanged at $27.023 billion.

TRENDS IN EXCHANGE RATE

Rupees are used in a number of countries including India and Pakistan. The Indian Currency is
issued by the RBI. The Indian Rupee exchange rate is measured against six currency trade weighted
indices. These currencies belong to countries that have a strong relationship with India. Within these
mostly traded currencies are USD, GBP, EURO and YEN.
The Exchange Rate of the Indian Rupee (or INR) is determined by market conditions. However, in
order to maintain effective exchange rates, the RBI actively trades in the USD/INR currency market.
The rupee currency is not pegged to any particular foreign currency at a specific exchange rate. The
RBI intervenes in the currency markets to maintain low volatility in exchange rates and remove
excess liquidity from the economy.

Source: www.rbi.gov.in
22 | P a g e

According to the graph we can say that Rupee is depreciating since April12. In 4th May 2012 the
central bank is said to have sold heavily in the forex market to curb the Rupees sharp fall after the
currency hit a fresh four month low of 53.92/$1 intraday.
The depreciation that the rupee has seen over the past few weeks has evoked several reactions from
different sector the economy. They claim that the industry will be affected at least at the two fronts.
Firstly they will not be able to meet their target. Secondly, the burden of rupee depreciation will be
borne by importer as they will be sufferer.

KEY INDUSTRY CHECK

a) MANUFACTURING SECTOR
Countrys economic potentiality is truly reflected by the growth rate of its manufacturing sector.
Most of the developed countries are strong enough in their manufacturing sector. Though the
services sector in India has brought faster economic success, still the manufacturing sector plays an
important role on the ground of sustainability.
In India, though the manufacturing sector is growing at a faster pace still it has failed to some extents
with regards to its percentage share in the total GDP. The growth rate of manufacturing sector in the
country has reached at a two-digit percentage growth in the mid of year 2006-07.
Both Government as well as the private sectors has come forward for the development of the
manufacturing sector of the country. More investments are being proposed in the sector particularly
capital goods, consumer durables, and some non-durable goods.
Moreover, according to a study by ASSOCHAM, India will emerge as the fourth strongest economy
among the G-20 countries after China, Russia and South Korea from the global crisis, given its
robust forex reserves, high GDP growth rate and various fiscal and monetary measures taken to
tackle the downturn.
Industry body FICCI, in its latest quarterly survey, said 36% of the 336 manufacturing units and
associations who participated in it expected growth in manufacturing to revive in the last quarter.
The survey projects a revival in the growth of the manufacturing sector in the fourth quart of 201112 after the sectors growth almost bottomed out in the third quarter.
However, the growth is expected to be modest.

b) SERVICE SECTOR
23 | P a g e

The Service Sector of Indian Economy has brought much success in the recent years. It constitutes a
larger share in the total GDP. The growth rate of services sector in India is faster than any other
sectors. It constitutes more than 50% of the total GDP in the country.
In 2010, the share of services in the US$63 trillion world GDP was nearly 68%, as in 2001. Indias
performance in terms of this indicator is not only above that of other emerging developing
economies, but also very close to that of the top developed countries. Among the top 12 countries
with highest overall GDP in 2010, India ranks 8 and 11 in overall GDP and services GDP
respectively. While countries like the UK, USA, and France have the highest share of services in
GDP at above 78%, Indias share of 57% is much above that of China at 41.8%. In 2010 compared
to 2001, India is the topmost country in terms of increase in its services share in GDP (7% points)
followed by Spain and Canada (5.3% point each), the UK (4.5% points), and Italy (3.2% points). In
terms of Compound Annual Growth Rate for the period 2001-10, china at 11.3% and India at 9.4%
show very high services sector growth.
Performance in Services: International Comparison

24 | P a g e

Growth rate of GDP and Service sector GDP

Share of different Services categories in GDP at factor cost (current prices)

The share of services in Indias GDP at factor cost (at current prices) increased from 33.5% in 195051 to 55.1% in 2010-11 and to 56.3% in 2011-12 as per Advance Estimates (AE). If construction is
also included, the service sectors share increases to 63.3% in 2010-11 and 64.4% in 2011-12. With
25 | P a g e

a 16.9% share, trade, hotels, and restaurants as a group is the largest contributor to GDP among the
various services sub-sectors followed by financing, insurance, real estate, and business services
with a 16.4% share. Community, social and personal services with a share of 14.3% is in third place.
Construction, a borderline service inclusion, is at fourth place with an 8.2% share.

INDUSTRY ANALYSIS
When stocks move, they usually move as groups; there are very few stocks which are out of this
rule. Many times it is more important to be in the right industry than in the right stock. To assess an
industry groups potential, it would be consider the overall growth rate, market size, and importance
to the economy. While the individual company is still important, its industry group is likely to exert
just as much or more influence on the stock price.
INTRODUCTION
Manufacturing can be defined as physical and/or chemical transformation of materials into products
on a large scale using machinery or capital equipment, in contrast to production of hand made goods
for personal use. The products provide utility or satisfaction to human/living beings. They may take
the form of final consumption goods, semi-finished goods (parts and raw materials) or capital goods
(used for making final products). Associated activities such as blending of materials, assembly of
components, and finishing (painting, heat-treating, packaging, etc.) are also treated as part of
manufacturing.
The traditional definition of manufacturing associates it with economies of scale, implying standard
parts. This is owing to the high cost of R&D, tooling and production facilities for a specific product,
which need to be amortized over a large number. Thus, exclusive and custom-made products are
expected to have high value and cost. This gap is asymptotically reducing to zero because of flexible
and direct manufacturing systems. Mass manufacturing is giving way to mass customization.

INDIAS MANUFACTURING INDUSTRY SCENARIO

The liberalization of the economy has opened new windows of opportunity for manufacturing sector.
Increasingly the success of manufacturing industry is dependent on innovations, research and
development. Tailoring the EXIM policy to promote exports and aligning the imports duties to meet
WTO commitments further contributed to this development. It is critical not only to remain
competitive but also, significant advantages can be gained by developing and commercializing new
technologies.
the size of this sector is US $ 792 Billion. The engineering manufacturing sector comprises of heavy
engineering (70%) and light engineering (30%).
26 | P a g e

Indias growing integration with the global economy and the governments recognition that
infrastructure needs to be overhauled are likely to ensure that the trend rate of growth increase in
next decade.

Importance of manufacturing sector in Indias economic growth

The structural transformation of Indian economy over the last three decades has been spectacular
growth of the services sector, which now accounts for about more than 55% of the GDP. However,
the rapid growth of the services sector much before the manufacturing sector attaining maturity is
not a healthy sign. A knowledge-based economy cannot be sustained in the long run unless it is
adequately supported by a growing manufacturing economy.
Some sector, such as IT, ITES and pharmaceuticals, will compete globally, employing perhaps 2-3%
of the population and bringing wealth to many parts of India. At the same time, around 60% of the
population will remain dependent on the agricultural sector, sharing less than one-quarter of Indias
GDP. Without reform, the agriculture will continue to suffer from endemic underemployment, low
wages and monsoon dependency. This will result in continued urban migration, but without the
development of an industrial sector this will lead to rising unemployment in the cities.

Manufacturing Industry Structure in India

Manufacturing Industry is the largest sector in the overall industrial segments in India. It is a diverse
industry with a number of segments, and can be broadly categorized into two segments:
The Heavy Engineering Segment, and
The Light Engineering Segment
The sector is relatively less fragmented at the top, as the competencies required are high, while it is
highly fragmented at the lower end (e.g. unbranded pump for the retail segment) and is dominated by
smaller players.
The Heavy Engineering Segment
The heavy engineering goods accounts for bulk of the engineering goods production in India.
Most of the leading players are engaged in the production of heavy engineering goods and
mainly produces high-value products using high-end technology. Requirement of high level of
capital investment poses as a major entry barrier. Consequently, the small and unorganized firms
have a small market presence.
The Light Engineering Segment
27 | P a g e

The light engineering goods segment, on the other hand, uses medium to low-end technology.
Entry barrier is low on account of comparatively lower requirement of capital and technology.
This segment is characterized by the dominance of small and unorganized players which
manufacture low value added products. However, there are few medium and large scale firms
which manufacture high-value added products. This segment is also characterized by small
capacities and high level of competition among the players.
The major end-user industries for heavy engineering goods are power, infrastructure, steel, cement,
petrochemicals, oil & gas, refineries, fertilizers, mining, railways, automobiles, textiles, etc. Light
engineering goods are essentially used as inputs by the heavy engineering industry.
Manufacturing Industry

Heavy Engineering
Segment

Heavy Electrical
Industry

Light Engineering
Segment

Heavy Non-electrical Industry

Textile Machinery

Turbine and
Generator Sets
Boilers
Transformers
Switchgear and
Control Gear

28 | P a g e

Cement Machinery
Rubber Machinery
Material Handling Equipment
Oil Field Equipment
Metallurgical and Mining Machinery

Shunting Locomotive

Diary Machinery

Electrical Furnaces

Machine Tool

Light Engineering Segment

Medical and Surgical Instruments
Process Control Instruments
Antifriction Roller Bearing
Industrial Fasteners
Ferrous Castings
Steel Forgings
Seamless Steel Pipes & Tubes
ERW Steel Pipes & Tubes
SAW Pipes
Bicycle Industry

Steps taken by Government

Government of India decided to bring out the National Manufacturing policy to bring about a
quantitative and qualitative change with the following six objectives:
Increase manufacturing sector growth to 12-14% over the medium term to make it the engine
of growth for the economy. The 2 to 4 % differential over the medium term growth rate of
the overall economy will enable manufacturing to contribute at least 25% of the National
GDP by 2022.
Increase the rate of job creation in manufacturing to create 100 million additional jobs by
2022.
Creation of appropriate skill sets among the rural migrant and urban poor to make growth
inclusive.
Increase domestic value addition and technological depth in manufacturing.
29 | P a g e

 Ensure sustainability of growth, particularly with regard to the environment including energy
efficiency, optimal utilization of natural resources and restoration of damaged/degraded ecosystems.
Enhance Global competitiveness of Indian manufacturing through appropriate policy support.
In order to achieve these goals: Foreign Investments and technologies will be welcomed while leveraging the countrys
expanding market for manufactured goods to induce the building of more manufacturing
capabilities and technologies within the country.
Compliance burden on industry arising out of procedural and regulatory formalities will be
reduced through rationalization of business regulations.
Competitiveness of enterprises in the country will be the guiding principle in the design and
implementation of policies and programmes.
Effective consultative mechanism with all stake holders will be instituted to ensure midcourse corrections.
Innovation will be encouraged for augmenting productivity, quality and growth of
enterprises.
The following Industry verticals will be given special attention:
I.
II.

Employment Intensive Industries

Capital Goods

III.

Industries with strategic significance

IV.

Small and Medium Enterprise

V.
VI.

Industries where India enjoys a competitive advantage

Public Sector Enterprises

Govt. Policies for FDI

Government of India reviews its Foreign Direct Investment (FDI) policy regularly, in a bid to attract
more investment. Recently, the government permitted 100% FDI in construction and development

30 | P a g e

projects. India has opened up to private sector participation and FDI in infrastructure projects for
power, roads, ports, mining sector, and pharmaceutical sector.
These initiatives of the government serve as a catalyst to further raise the demand for manufacturing
goods. Government has taken a decision to delicense the Heavy Electrical Industry and allowance of
100% FDI.
FDI in MSEs (as defined under Micro, small and Medium Enterprises Development Act, 2006
(MSMED, Act 2006)) will be subject to the sectoral caps, entry routes and other relevant sectoral
regulations. Any industrial undertaking which is not a Micro or Small Scale Enterprise, but
manufactures items reserved for the MSE sector would require Government route where foreign
investment is more than 24% in the capital. Such an undertaking would also require an Industrial
License under the Industries (Development & Regulation) Act 1951, for such manufacture.
Financial year 2011-12 for Manufacturing Industry
The manufacturing sector is likely to show a growth of 3.9% in GDP during 2011-12 as against the
growth of 7.6% during 2010-11. According to the latest estimates available on the Index of
Industrial Production (IIP), the index of manufacturing and electricity registered growth rates of
4.1% and 9.5%, respectively during April-November, 2011-12, as compared to the growth rates of
9% and 4.5% in these sectors during April-November, 2010-11.
MAJOR PLAYERS IN THE MANUFACTURING INDUSTRY
Bharat Heavy Electrical Ltd
BHEL was incorporated in 1971-72 and paying dividends since 1976-77. BHEL is Indias largest
Engineering and Manufacturing enterprise. The company manufactures over 180 products under 30
major product groups and caters to core sectors of the Indian Economy viz., Power Generation &
Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The company
has 14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight
service centres and 18 regional offices.
Hindustan Aeronautics Ltd (HAL)
HAL is a Public Sector enterprise. The company supplies/services are mainly to Indian Defense
Services, Coast Guard and Border Security Force. They supply transport aircraft and helicopters to
Airlines as well as State Governments of India. The companys facilities are located throughout
India including Nasik, Korba, Kanpur, Koraput, Lucknow and Hyderabad.

31 | P a g e

Crompton Greaves
Crompton Greaves is a part of B.M.Thapar Group and was established in 1899. CGs business
operation consists of 22 manufacturing divisions spread across in Gujarat, Maharastra, Goa, Madhya
Pradesh and Karnataka supported by well knitted marketing and service network through 14
branches in various states under overall management of four regional sales offices located in Delhi,
Kolkata, Mumbai and Chennai. The company has a customer base, which includes State Electricity
Boards, Government Bodies and Large Companies in private and public sectors.
Elgi Equipment
Established in 1960, Elgi Equipments is one of Asias renowned manufacturers of air compressors
and automobile service station equipment. The companys products have a range of applications in
areas ranging from mining, defense, transport, pharmaceuticals, power, oil, railways, chemicals,
textiles, printing to ship building, paper, electronics, telecommunications, medical, food&beverages
and plastics.
Kirloskar Oil Engines Ltd (KOEL)
Kirloskar Oil Engines Ltd is a part of the century old Kirloskar group and was incorporated in 1946.
The company has two segments of its manufacturing-Engines and Engine bearings & valves and also
in business of manufacturing gray iron castings and trading in oil, power generation. The company
has its manufacturing facilities in Pune, Nasik, Ahmednagar and Phursungi.
Larsen & Toubro Ltd (L&T)
Larsen & Toubro Ltd (L&T) is a part of L&T group. The company is Indias largest Engineering and
Construction (E&C), Cement, Electrical and Electronics and Diversified business. It also has 19
subsidiaries. The manufacturing facilities of the company are located in Coimbatore in TamilNadu,
Kurnool District in Andhra Pradesh and Hassan in Karnataka.
Thermax Ltd
Originally Thermax Ltd was incorporated as Thermo-Dynamics Pvt. Ltd on 30th June, 1980. On 1st
July, 1980 Wanson (India) Ltd. Along with Thermax India (Pvt) Ltd. Was amalgamated with the
Company and subsequently the name was handed to Thermax Pvt. The company has its 6 core
businesses Boilers and Heaters, Absorption Cooling , Water and Waste Solutions, Chemicals for
Energy and Environment Applications, Captive Power and Cogeneration systems, Air Pollution and
Purification.

32 | P a g e

Cummins India Ltd

Cummins India Ltd is a part of Cummins Inc. one of the worlds largest designer and manufacturer
of diesel engines. The company was started in India at Pune in 1962 (as Kirloskaar Cummins Ltd)
and deals in Power generation, construction & mining, compressors, locomotives, marine, oilfields,
fire pumps & cranes, automotive and special applications. The company has its manufacturing
facilities in Nashik, Bardez, Sholapur, Pune, Bharuch.
Asea Brown Boveri Ltd (ABB)
Asea Brown Boveri Ltd (ABB) is a subsidiary of ABB ltd Zurich which is a leader in Power and
Automation technologies. The company operates in around 100 countries. ABB India caters to
power and industry sectors. The company has its vast installed base, extensive local manufacturing
at 8 units and a nationwide marketing and service presence. ABB has also set up a global R&D
centre in Bangalore.
Siemens Ltd
Siemens Ltd has its flagship of the Siemens Group in India. Siemens AG, the parent company holds
53.63% in Siemens Ltd. The company mainly deals in power generation and distribution equipment,
industrial projects and equipment, transportation systems, communication and healthcare products
and has its manufacturing units in Aurangabad, Nashik, Goa, Thane and Parganas North.
PROSPECTS OF MANUFACTURING INDUSTRY IN INDIA
Economic Drivers
Globalization

Single large market

Source capital where it is cheapest, produce where it is efficient, sell where it
is most profitable.
Local markets integrated with global markets larger size
Firms need to compete globally (in terms of price, quality, response)

Promoting factors
Capital mobility for investments (in addition to export earnings)
Labour mobility (Huge skilled labour)

33 | P a g e

World Trade Organization

150 members accounting for 97% of world trade
Goal: help trade flow smoothly, freely, fairly and predictably
Through agreements negotiated and ratified by member countries

Intellectual Property Rights

Technological Drivers
Artificial Intelligence
Green materials
Direct manufacturing
Future Enablers
Bionics and Reverse Engineering
Knowledge Management
Product Lifecycle Engineering
Will lead to
New materials, processes and applications (Products)
New Paradigms of manufacturing and trade
Draft policies

Conventional policies
Essentially deal with the operating system for industry
Infrastructure: power, water, transportation, communication
Economic incentives: licensing, duties, taxes, subsidies, zones
Necessary, but insufficient for sustained competitiveness
Manufacturing competitiveness:

34 | P a g e

Continuous improvement in price, quality and response

Government-Academic Interface
Create respect for manufacturing
Promote manufacturing knowledge workers through media

Academia-Industry Interface
Identify leaders for manufacturing
Generate ideas for further exploration

Industry-Government Interface
Commercially exploit innovative ideas
Build world class manufacturing firms

There are three national associations representing all type of industries, small and large. These are
Federation of Indian Chambers of Commerce and Industries (FICCI), Confederation of Indian
Industries (CII) and Association of Chambers of Commerce and Industries (ASSOCHAM).
Industrial production in India is divided into basic, capital, intermediate, consumer goods, and
consumer non-durable goods industries. Manufacturing growth has been led by the automotive,
machinery, textile, chemicals and metal industries. NMIZs have been set up to augment the industry
by increasing the contribution of manufacturing to 25% of GDP by 2022.
The budget 2012-13 also shown the positive sign for power, construction, infrastructure etc. which
will help to grow the manufacturing sector in future in India.
ANALYSIS OF MANUFACTURING INDUSTRY UNDER PORTERS FIVE FORCES
MODEL
Bargaining Power of Buyers (Medium)
In India though the demand for manufacturing product is very much but the consumers bargaining
power is low in India as the number of good manufacturing companies to buy from is limited in
number. Hence, the manufacturing companies are in a better position. In case of power sector, Govt.
regulates the power sector to ensure supply of power at reasonable prices but this regulation is
limited. In case of metal sector, there are only few players in Indian market. So, the bargaining
power for the buyers is very less. Overall, power of buyers is medium.
35 | P a g e

Bargaining Power of Suppliers (High)

Coal, Iron Ore, Bauxite, Zinc Oxide, Oil and Gas used as raw materials for Manufacturing Industry.
The supply of these raw materials in India is limited and hence Raw Materials Suppliers are in a
dominant position. Power Companies are required to import coal if the domestic supply is not
sufficient, which proves to be an expensive affair. Steel Companies are importing Coaking Coal on a
regular as there is non-availability of Coaking Coal in India. Infact Steel Companies are importing
Iron ore also. Aluminum Companies are importing Bauxite from outside as there is delaying in
decision of Bauxite mining project in India. These all options prove an expensive one. Hence, the
power of suppliers is high.
Competitive Rivalry (Medium)
Since, demand for Manufacturing Product is way above its supply, there is almost no competitive
rivalry in the Manufacturing Industry as all the production can be used up. However, with Govt.
encouragement, private participation (especially because of higher efficiency) is expected to increase
in the coming years to take advantage of the huge for Manufacturing Product. Hence, the
competitive rivalry is Medium.
Availability of Substitutes (Medium)
Power does not have a substitute but it can be generated from different sources of energy. Currently
Thermal Power is dominant in India, coal being the major raw material. Coal availability is limited
and there-fore, power from nuclear sources, Hydro sources and Renewable energy sources could be
used as substitutes for Thermal Power in future. Although demand for power outstrips its supply,
36 | P a g e

going forward, thermal power companies have threat from non-thermal power generators. For Metal
sector there is no substitute. Hence, the threat of substitution is Medium for Power Sector and Low
for Metal Sector.
Threat of new Entrants (Medium)
The Manufacturing Industry is highly capital-intensive Industry and hence demands huge
investment. But now there lots of foreign company, NRI and private sectors want to invest in
Manufacturing Industry. Moreover, obtaining regulatory approvals in this sector is a difficult task.
Hence, the threat of new entrant appears to be medium.

FINANCIAL SYSTEM OVERVIEW

INTRODUCTION
In World of commerce, apart from money equally revolutionary concept was the concept of limited
liability. Before the industrial revolution economy was self-sufficient village economy. The artisans
produced goods and services on demand. It was industrial revolution, which paved the way for
production in anticipation of demand, and along with it came the economies of large-scale
production and to support this was needed huge finance. Innovative forms of business establishment,
incorporating the principle of Limited liability emerged. Form the highly imaginative world of
business, a novel form of business organization viz. Joint Stock Companies, with the features like
limited liability and the separation of ownership and management was born. Risk is an important and
inherent part of any business. Risk cannot be avoided. We can only try to manage it. This was the
best example of risk management by spreading it in small portions amongst the large number of
shareholders. This was achieved by a concept called shares or stock and the need for trading in these
stocks was felt.

CAPITAL FORMATIONS AND ECONOMIC DEVELOPMENT

Multiplicity of wants and scarcity of means to satisfy these unlimited wants has continued to be the
fundamental of economic problem. Money resources are required to move physical resources.
Mobilization of resources for economic for economic development was and continues to be the
major problem with all developing and developed nations. The capital might be from within the
country or outside the country. But one of the greatest challenges of nations today is creating
conditions conducive for capital formation as also for attracting capital from various countries. A
growing economy with vibrant capital and money market with rules and regulations in place is of
capital formation Prerequisite for attracting capital. Stock market plays a key role in the entire gamut
of financial system.
37 | P a g e

Having broadly discussed the developments and the basic issues involved, we will now try to review
the Indian financial System. India has come a long way during the last decade of the 20 th Century.
With the path-breaking budget of 91-92 presented by Dr. Man Mohan Sing an era of globalization,
liberalization, decontrol and de-regulation was adhered in. Since then a lot of water has flown from
under the bridge and lot of Development has taken place. The focus all along has been to faster
economic development.

INDIAN FINANCIAL SYSTEM

The Financial system comprises a variety of intermediaries, markets and instruments. It provides the
principal means by which savings are transformed into investments.
The Indian Financial system broadly classified into the formal (organized) financial system and the
informal (unorganized) financial system.
The formal financial system comes under the preview of:
The Ministry of Finance (MOF)
Reserve Bank of India(RBI)
Securities and Exchange board of India (SEBI), and
Other regulatory bodies
The informal system consists of:
Groups of persons operating as funds or associations.
Individual money lenders such as neighbors, relatives, landlords, traders, and so on.
Financial intermediaries such as finance, investment, and chit-fund companies.
Partnership firms consisting of local brokers, pawnbrokers, and non-bank.

FINANCIAL INSTRUMENTS IN THE MARKET

The changes in the regulatory framework of the capital market & fiscal policies have also resulted in
newer kinds of financial instruments being introduced in the market. These instruments are depended
on period, interest rate, trading etc.
i) Equity Shares
38 | P a g e

ii) Preference Share

iii) Debentures iv) Bonds iii) Govt. Securities

INDIAN FINANCIAL SYSTEM

Formal (organized)
Financial System

Informal (organized)
Financial System

Financial Markets

Money Market

Capital Market

Derivatives

Equity/Stock
Market

Future
Option
Primary Market

Secondary Market

Swap
Forward

Public Issue
Rights Issue
Private
Placement
Preferential
allotment

39 | P a g e

NSE
BSE

Conceptual Framework of how the Financial System works

The Financial System
Funds

Funds

Financial
Institutions
Commercial Banks

Deposits/shares

Insurance
Companies

Loans

Mutual Funds
Providend Funds
Supplier of Funds

Funds

NBFCs
Demand of Funds
Private
Placements

Individual
Business
Governments

Individual Business
Governments
Securities

Financial Markets
Funds

Money Market

Funds

Capital Market
Securities

Securities

A Financial System is a set of Institutional Arrangements, through which financial surpluses are
mobilized from the units generating surplus income to others in need of them. Financial markets,
Financial Instruments, Financial Services and Financial Institutions constitute the Financial
System. Financial Market provide channels for allocation of savings to investment, that is how
the savings are channelized into investments thus generating further income, cash or assets.
Financial market has two major components viz. money market and capital market. Money
market refers to the market where borrowers and lenders exchange short-term funds, to solve
their liquidity needs. Money market instruments have low default risk, maturities under one year
and high marketability (liquidity). Low default risk implies that generally the risk of non40 | P a g e

payment of money is low. Maturities under one year imply that all contracts are of maximum one
year. Capital market comprises of institutions and mechanisms through which medium to long
term funds are pooled and made available to business, government and individuals. It facilitates
investment in fixed assets. Capital market consists of securities or stock market. Securities
market consists of Primary Market and Secondary Market.
Primary market consists of channel for sale of new securities, while Secondary market securities
already issued.
Secondary market enables those who already hold securities to adjust their investment in
response to change in their assessment of risk and return, the statement implies that those who
already holds the securities may want to sell them in case if those securities are not paying off, or
if he/she needs to adjust his liquidity or for any other reason. Secondary market refers to stock
exchanges, a stock exchange provides mechanism to buy and sell the securities already issues in
primary market. There are at present 23 stock exchanges in India.

STOCK MARKET
The term Stock market is a concept for the mechanism that enables the trading of company
stocks (collective shares) and other securities. The size of the stock market is estimated at about
3000 trillion. The stocks are listed and traded on stock exchanges which are entities specialized
in the business of bringing buyers and sellers of stocks and securities together.
Participants in the stock market range from small individual stock investors to large hedge fund
traders, who can be based anywhere. Their orders usually end up with a professional at a stock
exchange, who executes order.
Some exchanges are physical locations where transactions are carried out on a trading floor, by a
method known as open outcry (e.g.:- New York stock exchange). This type of auction is used in
stock exchanges and commodity exchanges where traders may enter verbal bids and offers
simultaneously. The other type of exchange is a virtual kind, composed of a network of
computers where trades are made electronically via traders at computer terminals (e.g.- Nasdaq).
Actual trades are based on an auction market paradigm where a potential buyer bids a specific
price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at
market means that investor will accept any bid price or ask price for the stock.) When the bid and
ask prices match, a sale takes place on a first come first served basis if there are multiple bidders
or askers at a given price.

41 | P a g e

The purpose of a stock exchange is to facilitate the exchange of securities between buyers and
sellers, thus providing a market place (virtual or real). The exchanges provide real-time trading
information on the listed securities, facilitating price discovery.

Market participants
Many years ago, worldwide, buyers and sellers were individual investors, such as wealthy
businessmen, with long family histories (and emotional ties) to particular corporations. Over
time, markets have become more institutionalized; buyers and sellers are largely institutions
(e.g. - pension funds, insurance companies, mutual funds, index funds, exchange-traded funds,
hedge funds, investor groups, banks and various other financial institutions).
With the rise of the institutional investor market operation also improves. Thus, the government
was responsible for fixed (and exorbitant) fees being markedly reduced for the small
investor, but only after the large institutions had managed to break the brokers solid front on
fees.

Importance of Stock Market

Stock market is an important part of the economy of a country. The stock market plays a vital
role in the growth of the industry and commerce of the country that eventually affects the
economy of the country to a great extent. That is reason that the government, industry and even
the central banks of the country keep a close watch on the happenings of the stock market. The
stock market is important from both the industrys point of view.
The stock market is one of the most important sources for companies to raise money. This allows
business to go public, or raise additional capital for expansion. The liquidity that an exchange
provides affords investors the ability to quickly and easily sell securities. This is an attractive
feature of investing in stocks, compared to other less liquid investments such as real estate.
Exchanges act as clearing house for each transaction. The smooth functioning of exchanges
facilitate economic growth in that lower cost and enterprise risks promote the production of
goods and services as well as employment in this way the Financial system contributes to
increased prosperity.

IMPACT OF STOCK EXCHANGES IN INDIA

I.
II.

Increase in rate of return on investment

Availability of funds for growth of industries

42 | P a g e

III.

Mobilization of savings

IV.

Increase in employment

V.
VI.
VII.
VIII.

Diversification of Industries
Increase in GDP
Increase in standard of living
Decrease in Trade Deficit

TRADING IN INDIA:The trading on stock exchange in India used to take place through open outcry without use of
information technology for immediate matching or recording of trades. This was time consuming
and inefficient. This imposed limits on trading volumes and efficiency. In order to provide
efficiency, liquidity and transparency, NSE introduced a nationwide online fully automated
screen based trading system (SBTS) where a member can punch into the computer quantities of
securities and the prices at which he likes to transact and the transaction is executed as soon as it
finds matching sale or buy order from a counter party. SBTS electronically matches order on
strict time/price priority and hence cuts down on time, cost and risk of error, as well as on fraud
resulting in improved operational efficiency. It allows faster incorporation of price sensitive
information into prevailing prices, thus increasing the information efficiency of markets. It
enables market participants, irrespective of their geographical locations, to trade with one
another simultaneously, improving the depth of liquidity market. It also provides a perfect audit
trail, which helps to resolve disputes by logging in the trade execution process in entirety. Today
India can boast that almost 100% trading take place through electronic order matching.
Technology was used to carry the trading platform from the trading hall of stock exchanges to
the premises of brokers. NSE carried the further platform further the PCs at the residence of
Clients through the Internet for Users in geographically vast country like India.

43 | P a g e

Conceptual Framework
Trading Network

Source: nseindia

44 | P a g e

INTRODUCTION ABOUT SHAREKHAN

Sharekhan Ltd. Is one of the leading retail stock broking house of SSKI Group which is running
successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI
Group, which has over eight decades of experience in the stock broking business. Sharekhan
offer its customers a wide range of equity related services.
Sharekhan is Indias leading online retail broking house. It is the retail broking arm of the
Mumbai-based SSKI( SHRIPAL SHRWANTILAL KANTILAL ISWARNATH LIMITED). It is
a brokerage firm which is established on 8th February 2000. Sharekhan has toady a pan-India
presence with over 1,529 outlets serving 950,000 customers across 450 cities. It also has
International presence through its branches in the UAE and Oman.
Sharekhan is a member of the Bombay Stock Exchange, the National Stock Exchange and the
countrys two leading commodity exchanges, the NCDEX and MCX. Sharekhan is also
registered as a depository participant with National Securities Depository and Central Depository
Services.
On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application that
emulates the broker terminals along with host of other information relevant to the Day Traders.
This was for the first time that a net-based trading station of this caliber was offered to the
traders. In the last six months Speed Trade has become a de facto standard for the Day Trading
community over the net.
Sharekhan has always believed in investing in technology to build its business. The company has
used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,
Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India
Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Morakhiya family
holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.
With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the leading
players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of
the market in each of these segments. SSKIs institutional broking arm is accounted for 7% of
the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional
portfolio investment in the country. It has 60 Institutional clients spread over India, Far East, UK
and US. Foreign Institutional Investors generate about 65% of the Organizations Revenue, with
a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very
prestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped
45 | P a g e

etc. the group has placed over US$ 1 billion in private equity deals. Some of the clients include
BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia and Shoppers Stop.

VISION
To be the Best Retail Brokering Brand in the Retail Business of Stock market.

MISSION
To educate and empower the individual investor to make better investment decisions through
quality advice and superior service.
Credential of Sharekhan: Among the top 3 branded retail service providers
No. 1 player in Online Business
Largest network of branded broking outlets in the country serving around 9,50,000
clients.

REASON TO CHOOSE SHAREKHAN LIMITED

Experience
SSKI has more than eight decades of trust and credibility in the Indian Stock market. In the Asia
Money brokers poll held recently, SSKI won the Indias Best Broking House for 2004 award.
Ever since it launched Sharekhan as its retail broking division in February 2000, it has been
providing Institutional Level Research and Broking Services to individual investors.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS and EXECUTION Services for investors.
These Services are accessible through its centers across the country over the internet (through the
website www.sharekhan.com) as well as over the Voice Tool.
Knowledge
One can get right information at right time from Sharekhan Limiteds content-rich portal. One
can also get a useful set of knowledge-based tools that will empower him to take informed
decisions.
46 | P a g e

Technology
With its online trading account one can buy and sell shares in an instant from anywhere. By its
powerful online trading tools one can full control over his/her investment in shares.
Customer Service
Customer Service team will assist one for any help that one may require relating to transactions,
billing, demat and other queries. Its customer service can be contacted via a toll free number,
email or live chat on www.sharekhan.com.
Convenience
For investment advice and transaction one can call its Dial-N-Trade number. Sharekhan Ltd. has
a dedicated call-centre to provide this service via a Toll Free Number 1800-22-7500 & 1800-227050 from anywhere in India.
Investment Advice
It has dedicated research teams of more than 30 people for fundamental and technical researches.
The pulse of the market is continuously tracked by Sharekhans analyst and provides timely
investment advice to its clients in the form of daily research emails, online chat, printed reports
and SMS alert.

MANAGEMENT

Dinesh Murikya

Owner of the company

Tarun Shah

CEO of the company

Shankar Vailaya

Director (Operations)

Jaideep Arora

Director (Products & Technology)

Pathik Gandotra

Head of Research

Rishi Kohli

Vice President of Equity Derivatives

Nikhil Vora

Vice President of Research

Amit Arora

Head Operation

47 | P a g e

 Kalyan Raman

Vice President of Client Acquisition

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED

The different types of products and services offered by Sharekhan Ltd. are as follows:
Equity and Derivatives Trading, Depository Services, Online Services, Commodities Trading,
Dial-n-Trade, Portfolio Management, Share Shops, IPO & Bonds, Fundamental Research,
Technical Research, Spot Market, Currency Derivatives and Mutual funds.

Source: Sharekhan Ltd.

TYPES OF ACCOUNT IN SHAREKHAN LIMITED

Sharekhan offers two types of trading account for its clients
Classic Account (which include a feature known as Fast Trade Advanced Classic for the
online users) and
Speed Trade Account

CLASSIC ACCOUNT
48 | P a g e

This is User Friendly Product which allows the client to trade through website
www.sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to
invest in stocks or who does not trade too frequently. This account allow investors to buy and
sell stocks online along with the following features like multiple watch lists, Integrated Banking,
Demat and Digital Contracts, Real-time Portfolio Tracking with price alerts and Instant credit &
transfer.
This account comes with the following features:
i.

Online Trading Account for investing in Equities and Derivatives

ii.

Free Trading through Phone (Dial-n-Trade)

a. Two dedicated numbers (1800-22-7500 and 39707500) for placing the orders
using cell phones or landline phones.
b. Automatic funds transfer with phone banking facilities (for Citibank and HDFC
bank customers)
c. Simple and Secure Interactive Voice Response based system for authentication
d. Get the trusted, professional advice of Sharekhan limiteds Tele Brokers
e. Before hours order placement facility between 8.00 am and 9.30 am.

iii.

Integration of: Online Trading + Saving Bank + Demat Account

iv.

Instant cash transfer facility against purchase & sale of shares

v.

IPO investments

vi.

Instant order and trade confirmation by E-mail

vii.

Single screen interface for cash and derivatives

SPEED TRADE ACCOUNT

This is an Internet-based software application, which enables one to buy and sell in an instant. It
is ideal for active traders and employees who transact frequently during days session to
capitalize on intra-day price movement.
49 | P a g e

This account comes with the following features:

i.

Instant order Execution and Confirmation

ii.

Single screen trading terminal for NSE cash, NSE F&O & BSE

iii.

Technical Studies

iv.

Multiple Charting

v.

Real-time streaming quotes

vi.

Market Summary (Cost traded scrip, highest value etc.)

vii.

Hot keys similar to brokers terminal

viii.

Alerts and reminders.

ix.

Back-up facility to place trades on Direct Phone lines

x.

Live market debts

CHARGE STRUCTURE
Fee structure for General Individual:
Charge

Classic Account(Rs.)

Speed Trade Account(Rs.)

Account Opening

750/Nil

1000/Nil

Brokerage

Intraday-.10

Intraday-.10

Delivery-.50

Delivery-.50

Depository Charges:
Account Opening Charges(Rs.)
Annual Maintenance Charges(Rs.)

50 | P a g e

Nil
400

HOW TO OPEN AN ACCOUNT WITH SHAREKHAN LIMITED?

For online trading with Sharekhan Ltd., investor has to open an account. Following are the ways
to open an account with Sahrekhan Ltd.:
One need to call them at phone number provided below and asks that he/she want to open
an account with them.
i.

One can call on the Toll free Number: 1-800-22-7500 to speak a Customer
Service Executive

ii.

Or if one stays in Mumbai, he can call on 022-66621111

One can log on to http://sharekhan.com/Locateus.aspx link to find out the nearest branch
and visit that branch.
One can send E-mail at info@sharekhan.com to know about their products and services.
One can visit the site www.sharekhan.com and click on the option Open an Account to
fill a small query form which will ask the individual to give details regarding his/her
name, city he/she lives in, his email address, phone number, pin code of the city, his
nearest Sharekhan Ltd. shop and preferences regarding the type of account he/she wants.
This information are compiled in the headquarter of the company that is in Mumbai from
where it is distributed through out the countrys branches in the form of leads on the basis
of cities and nearest share shops. After that the executives of the respective branches
contact the prospective clients over phone or through E-mail and give them information
regarding the various types of accounts and the documents they need to open an account
and then fix appointment with the prospective clients to give them demonstration and
making them undergo the formalities to open the account. After that the forms that has
collected from the clients, is scrutinized in the branch and then it is sent to Mumbai for
further processing where after a few days the clients account are generated and activated.
After the accounts are activated, a Welcome Kit is dispatched from Mumbai to the
clients address mentioned in the documents provided by them. As soon as the clients
receive the Welcome Kit, which contains the clients Trading ID and Trading Password,
they can start trading and investing in shares.
Apart from two passport size photographs, one needs to provide with the following documents in
order to open an account with Sharekhan Ltd.:
Photocopy of the clients PAN Card which should be duly attached
51 | P a g e

 Photocopy of any of the following documents duly attached which will serve as
correspondence address proof:
i.

Passport (valid)

ii.

Ration Card

iii.

Voters ID Card

iv.

Electricity Bill (should be latest and should be in the name of the client)

v.

Driving License (valid)

vi.

Flat maintenance Bill (should be latest and should be in the name of the client)

vii.

Telephone Bill (should be latest and should be in the name of the client)

viii.

Lease or Rent Agreement

ix.

Insurance Policy (should be latest and in the name of the client)

x.

Savings Bank Statement** (should be latest)

Two cheques drawn in favor of Sharekhan Ltd., one for the Account Opening Fees and
the other for the Margin Money (the minimum margin money is Rs. 5000)
** A cancelled cheque should be given by the client if he provides Saving Bank Statement as
a proof for correspondence address.
NOTE: Only Saving Bank Account cheques are accepted for the purpose of Opening an
account.

REASEARCH SECTION IN SHAREKHAN Ltd.

Sharekhan Ltd. has its own in-house Research Organization which is known as Valuline. It
comprises a team of experts who constantly keep an eye on the market and do research on the
various aspects of the share market. Generally the research is based on Fundamental and Technical
analysis of different companies and also taking into account various factors relating to the economy.
Sharekhans Research on the volatile market has been found accurate most of the time. Sharekhans
trading calls in the month of May 2012 has given.% strike rate.

52 | P a g e

Out of trading calls given by Sharekhan in the month of May 2012, hit the profit target. These
exclusive trading picks come only to Sharekhan Online Trading Customer and are based on in-depth
Technical Analysis.
As a customer of Sharekhan Ltd., one receives daily 5-6 Research Reports on their E-mails which
they can use as tips for investing in the market. These reports are named as Pre-Market Report,
Eagle Eye, High Noon, Investors Eye, Daring Derivatives and Post-Market Report. Apart from
these, Sharekhan Ltd. issues a monthly subscription by the name of Valuline which is easily
available in the market.

Source: Sharekhan Ltd.

PROJECT SPECIFIC ANALYSIS
COMPANY ANALYSIS
Once the industry group is chosen, an investor would need to narrow the list of companies before
proceeding to a more detailed analysis. Investors are usually interested in finding the leaders and the
innovators within a group. The first task is to identify the current business and competitive
environment within a group as well as the future trends. How do the companies rank according to
market share, product position and competitive advantage? Who is the current leader and how will
changes within the sector affect the current balance of power? Success depends on an edge, be it
marketing, technology, market share or innovation. A comparative analysis of the companies within
a sector will help identify the company with an edge and those most likely to keep it.

53 | P a g e

I have chosen three sectors under manufacturing for my analysis. Sectors and Companies are as
follows:
Power Sector
NTPC
Tata Power
Steel Sector
Tata Steel
JSW Steel
Infrastructure
L&T
BHEL

54 | P a g e

Indias largest power company, NTPC was set up in 1975 to accelerate power development in
India. NTPC is emerging as a diversified power major with presence in the entire value chain of the
power generation business. Apart from power generation, which is the mainstay of the company,
NTPC has already ventured into consultancy, power trading, ash utilization and coal mining. NTPC
ranked 341st in the 2010, Forbes Global 2000 ranking of the World Biggest companies. NTPC
became a Maharatna company in May 2010.
The total installed capacity of the company is 37,514 MW (including JVs) with 16 Coal based and &
7 Gas based stations, located across the country. In addition, under JVs, 7 stations are Coal based &
another station uses Naptha/LNG as fuel. The company has set a target to have an installed power
generating capacity of 1, 28,000 MW by the year 2032. The capacity will have a diversified fuel mix
comprising 56% Coal, 16% Gas, 11% Nuclear and 17% Renewable Energy Sources (RES) including
Hydro. By 2032, non fossil fuel based generation capacity shall make up nearly 28% of NTPCs
portfolio.
In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue
and 5.25% as offer for sale by Govt. of India. NTPC thus became a listed company in
November2004 with the Govt. holding 89.5% of the equity share capital. In February 2010, the
shareholding of Govt. of India was reduced from 89.5% to 84.5% through further Public Offer. The
rest is held by Institutional Investors and Public.
At NTPC, People before Plant Load Factor is the mantra that guides all HR related policies. NTPC
has been awarded No. 1, Best Workplace in India among large Organizations and the best PSU for
the year 2010, by the Great Places to Work Institute, India Chapter collaboration with The Economic
Times.
VISION
To be the Worlds largest and best power producer, powering Indias growth.
MISSION
Develop and provide reliable power, related products and services at competitive prices, integrating
multiple energy sources with innovative and eco-friendly technologies and contribute to society.
55 | P a g e

MANAGEMENT
The Company is managed by the Board of Directors, which formulates strategies, policies and
reviews its performance periodically. The Chairman & Managing Director and six Whole Time
Directors manage the business of the company under the overall supervision and guidance of the
Board.
The Board has 21 members, comprising of 1 Chairman & Managing Director, 6 Whole Time
Directors, 4 Non Official Part Time Directors, 8 Independent Directors and 2 Nominee Directors.
NAME

DESIGNATION

Arup Roy Choudhury

Chairman and Managing Director

I J Kapoor

Director (Commercial)

D K Jain

Director (Technical)

N N Misra

Director(Operations)

Rakesh Jain

Nominee Director

Adesh Jain

Independent Director

Santosh Nautiyal

Independent Director

Rajib Sekhar sahoo

Non Official Part Time Director

Ajit M Nimbalkar

Non Official Part Time Director

Homai A Daruwalla

Independent Director

Sushil Khanna

Independent Director

A K Singhal

Director (Finance)

B P Singh

Director (Projects)

S P Singh

Director (Human Resources)

I C P Keshari

Nominee Director

Kanwal Nath

Independent Director

56 | P a g e

A K Sanwalka

Independent Director

S B Ghosh Dastidar

Non Official Part Time Director

M Govinda Rao

Independent Director

S R Upadhyay

Non Official Part Time Director

Anol Nath Chatterji

Independent Director

Source: www.moneycontrol.com
Share Holding Pattern

Share
holding
Share holding pattern
as on :

31/03/2012

Face value

10
No. Of
Shares

Indian Promoters
Sub total

31/12/2011

6967361180
6967361180

%
Holding

546548149
331346348
962582636

Private Corporate
Bodies

145622674

1.77

NRI's/OCB's/Foreign
Others
Direcctors/Employees
Others
Sub total

3856922
37263 5360510
154874686

0.05

57 | P a g e

10
No. Of
Shares

%
Holding

Promoter's holding
84.5 6967361180
84.5 6967361180
Non promoter's holding
Institutional investors

Banks Fin. Inst. and

Insurance
FII's
Sub total

6.63 552125001
4.02 307924621
11.67 962247333
Other investors

0.07
1.88

30/09/2011
10
No. Of
Shares

%
Holding

84.5 6967361180
84.5 6967361180

84.5
84.5

6.7
3.73
11.67

563605737
288895774
961499023

6.84
3.5
11.66

143182739

1.74

141186021

1.71

3985285
37209 2371978
149574528

0.05

4062226
37637 2672413
147954614

0.05

0.03
1.81

0.03
1.79

General public
Grand total

160643215
8245461717

1.95 166278676
100 8245461717

2.02 168645900
100 8245460717

2.05
100

PROJECTS AND INVESTMENTS

According to the NTPC Chairman and Managing Director Arup Roy Choudhury, NTPCs
investment plan for this fiscal (2012-13) is Rs 20,900 crore where in last fiscal it was around Rs
11,000 crore.
NTPC, which has installed generation capacity of 37,514 MW, is looking to increase the capacity in
coming years, especially with thermal power projects.
NTPC has formulated a long term Corporate Plan upto 2032. In line with the Corporate Plan, the
capacity addition under implementation stage is presented below:
PROJECT

STATE

MW

Coal
1

Indira Gandhi STPP JV with IPGCL &HPGCL (500)

Haryana

500

Sipat I (660)

Chhattisgarh

660

Vallur I JV with TNEB (500)

Tamilnadu

500

Vallur Stage-I Phase-II JV with TNEB (1 x 500)

Tamilnadu

500

Simhadri II Unit IV (500)

Andhra Pradesh

500

Bongaigaon(3 x 250)

Assam

750

Rihand III (2 x 500)

Uttar Pradesh

1000

Mauda

Maharashtra

500

Vindyachal-IV (2 x 500)

Madhya Pradesh

1000

10

Nabinagar TPP JV with Railways (4 x 250)

Bihar

1000

11

Muzaffarpur Expansion (2 x 195) JV with BSEB

Bihar

390

12

Barh I (3 x 660)

Bihar

1980

58 | P a g e

13

Barh I (2 x 660)

Bihar

1320

Hydro
1

Koldam HEPP (4 x 200)

Himachal Pradesh

800

Tapovan Vishnugad HEPP (4 x 130)

Uttarakhand

520

Singrauli CW Discharge(Small Hydro)

Uttar Pradesh

Total

11,428

Source: www.ntpc.co.in
SUBSIDIARIES
NTPC Electric Supply Company Ltd. (NESCL)
NTPC Vidyut Vyapar Nigam Ltd. (NVVN)
NTPC Hydro Ltd. (NHL)
Kanti Bijlee Utpadan Nigam Ltd., (formerly known as Vaishali Power Generating Company
Ltd.)
Bharatiya Rail Bijlee Company Ltd (BRBCL)
RECOGNITION
HR Awards
NTPC awarded for Excellence in HR
NTPC ranked 19th by the GPTW for 2011 amongst 25 top Best Companies in India
NTPC ranked 6th amongst 25 top Best Employers in Country
NTPC win Star TV Talent Leadership and HR Award
Two Awards for NTPC at Asia Best Employer Brand Awards
Overall 7th in Indias Best Companies to work 2010, 1st amongst the PSUs and 1st in
Manufacturing & Production Industry Segment.
Great Place to Work Award 2010
59 | P a g e

 NCPEDP-Shell Helen Keller Award 2009

Vishwakarma Rashtriya Puraskar (VRP) 2007
Safety Awards
National Safety Award 2008 & 2009
Safety Innovation Award
Best Environment Management Station Award for Safety
Environment Awards
Golden Peacock Environmental Management Award
CII Susutainability Award
3rd Green Globe Foundation Award
Performance Awards
SCOPE Excellence Award to NTPC
PSU Excellence Award for NTPC
Top Liner Maharatna Award to NTPC
India Pride Awards Energy and Power Category
CII-EXIM Excellence Award, 2010
National Awards for Meritorious Performance
Quality Awards
International Gold Star Award for Quality 2009
CSR Awards
NTPC Awarded for Corporate Social Responsibility & Responsiveness for 2010-11
CII ITC Sustainability Award
Corporate Governance Awards
60 | P a g e

 Golden Peacock Global Award and ICSI National Award for Excellence in Corporate
Governance 2009
PROSPECTS
As per new corporate plan, NTPC plans to become a 75 GW company by the year 2017 and
envisages to have an installed capacity of 128 GW by the year 2032 with a well diversified fuel mix
comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable energy and 8% hydro power
based capacity.
As such, by the year 2032, 28% of NTPCs installed generating capacity will be based on carbon
free energy sources. Further, the coal based capacity will increasingly be based on high-efficientlow-emission technologies such as Super-critical and Ultra-Super-critical. Along with this growth,
NTPC will utilize a strategic mix of options to ensure fuel security for its fleet of power stations.
Looking at the opportunities coming its way, due to changes in the business environment, NTPC
made changes in its strategy and diversified in the business adjacencies along the energy value chain.
In its pursuit of diversification NTPC has developed strategic alliances and joint ventures with
leading national and international companies. NTPC also made long strides in developing its Ash
Utilization business.
Hydro Power: In order to give impetus to hydro power growth in the country and to have a
balanced portfolio of power generation, NTPC entered hydro power business with the 800
MW Koldam hydro project in Himachal Pradesh. Two more projects have also been taken up
in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Hydro Ltd., is setting up hydro
projects of capacities up to 250 MW.
Renewable Energy: In order to broad base its fuel mix NTPC has plan of capacity addition
of about 1,000 MW through renewable resources by 2017.
Nuclear Power: A Joint Venture Company Anushakti Vidhyut Nigam Ltd. Has been
formed (with 51% stake of NPCIL and 49% stake of NTPC) for development of nuclear
power projects in the country.
Coal Mining: In a major backward integration move to create fuel security, NTPC has
ventured into coal mining business with an aim to meet about 20% of its coal requirement
from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to
NTPC, including 2 blocks to be developed through joint venture route.
Power Trading: NTPC Vidyut Vypar Nigam Ltd. (NVVN), a wholly owned subsidiary
was created for trading power leading to optimal utilization of NTPCs assets. It is the second
61 | P a g e

largest power trading company in the country. In order to facilitate power trading in the
country, National Power Exchange Ltd. A JV of NTPC, NHPC, PFC and TCS has been
formed for operating a Power Exchange.
Ash Business: NTPC has focused on the utilization of ash generated by its power stations to
convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material
input by cement companies and brick manufacturers. NVVN is engaged in the business of
Fly Ash export and sale to domestic customers. Joint ventures with cement companies are
being planned to set up cement grinding units in the vicinity of NTPC stations.
Power Distribution: NTPC Electricity Supply Company Ltd. (NESCL), a wholly owned
subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in
Rajiv Gandhi Gramin Vidyutikaran Yojana programme for rural electrification.
Equipment Manufacturing: Enormous growth in power sector necessitates augmentation of
power equipment manufacturing capacity. NTPC has formed JVs with BHEL and Bharat
Forge Ltd. for power equipment manufacturing. NTPC has also acquired stake in
Transformers and Electricals Kerala Ltd. (TELK) for manufacturing and repair of
transformers.
Core Values BE COMMITTED
B

Business Ethics

Environmentally & Economically Sustainable

Customer Focus

Organizational & Professional Pride

Mutual Respect & Trust

Motivating Self & Others

Innovation & Speed

Total Quality for Excellence

Transparent & Respected Organization

Enterprising

Devoted

62 | P a g e

SWOT ANALYSIS OF NTPC

Strengths
Largest Market share in the domestic power generation and a broad customer portfolio across
the country
Diversified thermal generation portfolio-multiple sizes and fuel types
Highly skilled and experienced Human Resources exposed to state-of-the-art technologies in
project execution and power generation
Excellent track record of performance in project implementation and plant operations
High Brand equity among stakeholders
Navratna Status
Strong Balance Sheet-ability to raise low cost debt
Engineering skills in project configuration and package design
High credit rating indicating the high confidence of leaders
Turnaround ability for old plants-demonstrated in the take-over plants at Talcher, Tanda and
Unchachar
In-house training facility PMI,CENPEEP,R&D etc that assists in development of the sector
Established systems and procedures to institutionalize excellence in business operationsreceived ISO accreditation in several functions/areas.
Thrust on reducing social cost of capacity growth-strong execution of Resettlement &
Rehabilitation plans.
Weakness
Functional orientation hampering cross-functional perspective in decision making
Long and multi layered procurement process leading to long lead times process delays
Low risk-diversification of business portfolio: Consists primarily of generation of generation
assets
63 | P a g e

 Gaps in HR systems such as performance management, rewards and incentives and career
development
Fragmented IT architecture
Inadequate development of a strong knowledge management system that could assist in all
aspects of the business
Role ambiguity and dilution within different levels of the organization
Hierarchy for decision making that affects responsiveness
Opportunities
Broad base fuel mix by considering imported coal, gas, domestic coal, nuclear power etc
with a view to mitigate fuel risks and maintain long run competitiveness
Expand generation capacities by putting up thermal and hydro capacities, maintaining the
position of a dominant generating utility in the Indian Power Sector
Lead the development and commercial deployment of non-conventional energy sources
especially in the distributed generation mode
Execute increased number of power plants that classify for Mega Power Projects Status,
thereby reducing the cost of the projects and power and power generated
Improve collections by trading, direct sale to bulk customers and the active role in allocation
in new plants.
Forward integration into the distribution business in India
Threats
Entrance of private players in the Indian Power Sector
The existence of PSU culture affecting the organizational efficiency in comparison of the
private work culture
Low availability of fuel mix in India and high import prices might affect the cost of
electricity generation
Lack of commitment to be aware of the ever changing needs of the clients/customers

64 | P a g e

Tata Power is Indias largest integrated private power company with consolidated revenues of Rs.
19450.76 Crores for the fiscal year ended March 31, 2011. Inspired by a powerful vision, founders
of Tata Power pioneered the generation of electricity in India with the commissioning of Indias first
large hydro-electric project in 1915. Today, Tata Power has an installed generating capacity of 5297
MW and a presence across the entire value chain in generation (thermal, hydro, solar and wind)
transmission, distribution and trading. The Company has emerged as a pioneer in the Indian Power
Sector, with a track record for performance and has been a frontrunner in introducing state-of-the-art
power technologies. Among its achievement the Company has to its credit the installation of Indias
first 500 MW unit at Trombay, the first 150 MW pumped storage unit at Bhira, a Flue Gas Desulphurization plant for pollution control at Trombay and is now bringing the first 800 MW supercritical unit at Mundra, Gujarat.
The Company has successful public-private partnerships in generation, transmission and distribution
Tata Power Delhi Distribution Limited with Delhi Vidyut Board for Distribution in North Delhi,
Powerlinks Transmission Ltd. with Power Grid Corporation of India Ltd. for evacuation of
Power from Tala Hydro project in Bhutan to Delhi and Maithon Power Ltd. with Damodar Valley
Corporation for a 1050 MW Mega Power Project at Jharkhand. It is one of the largest renewable
energy players in India and is developing countrys first 4000 MW Ultra Mega Power Project at
Mundra (Gujarat) based on Super-critical technology.
Its International presence includes strategic investments in Indonesia through 30% stake in Coal
mines and a geothermal project; in Singapore through Trust Energy Resources to securitise coal
supply and the shipping of coal for its thermal power generation operations; in South Africa through
a joint venture called Cennergi to develop projects in South Africa, Botswana and Namibia; in
Australia through investments in geothermal and clean coal technologies and in Bhutan through a
hydro project in partnership with The Royal Govt. of Bhutan. With its track record of technology
leadership, project execution excellence, world class safety processes, customer care and driving
green initiatives, Tata Power is poised for a multi-fold growth and committed to lighting up lives
for generations to come.
VISION
To be the most admired Integrated Power and Energy Company delivering sustainable value to all
stakeholders
65 | P a g e

MISSION
We will become the most admired company delivering sustainable value by:
Being the supplier and partner of choice
Achieving excellence in safety, operations and project management
Focusing on the culture of sustainability
Ensuring growth and delivering value to the stakeholders
Caring for the community
MANAGEMENT
The Company is managed by the Board of Directors, which formulates strategies, policies and
reviews its performance periodically. The Chairman, Managing Director and seven Whole Time
Directors manage the business of the company under the overall supervision and guidance of the
Board.
The Board has 13 members, comprising of 1 Chairman/Chair Person, 1 Managing Director, 7 Whole
Time Directors, 2 Executive Directors, 1 Additional Director and 1 Nominee Director.
NAME

DESIGNATION

R N Tata

Chairman/Chairperson

Anil Sardana

Managing Director

S Ramakrishnan

Executive Director

S Padmanabhan

Executive Director

R GopalaKrishnan

Director

H S Vachha

Director

A J Engineer

Director

N H Mirza

Director

D M Satwalekar

Director

66 | P a g e

P G Mankad

Director

A K Basu

Director

A K Singhal

Additional Director

T Thomas Mathew

Nominee Director

Source: www.moneycontrol.com
Share Holding Pattern

Share holding
Share holding pattern as on :
Face value

31/03/2012
No. Of
Shares

31/12/2011

1
%
Holding

No. Of
Shares

Private Corporate Bodies

NRI's/OCB's/Foreign Others
GDR/ADR
Govt
Others
Sub total
General public

Promoter's holding
754792090
31.81 754816965
754792090
31.81 754816965
Non promoter's holding
Institutional investors
550579300
23.2 565531528
518998584
21.87 475470019
1148527904
48.4 1153718568
Other investors
22437736
0.95
16021164
442310
0.02
1700261
76718320
3.23
76718320
756050
0.03
882050
3447730
0.15
3294025
103767386
4.37
98581060
365950220
15.42 365921007

Grand total

2373037600

Indian Promoters
Sub total

Banks Fin. Inst. and Insurance

FII's
Sub total

Source: www.money.rediff.com

67 | P a g e

100 2373037600

30/09/2011

1
%
Holding
31.81
31.81

No. Of
Shares

1
%
Holding

754740990
754740990

31.8
31.8

23.83 575867091
20.04 474797026
48.62 1152934251

24.27
20.01
48.58

0.68
0.07
3.23
0.04
0.14
4.15
15.42

51565834
1238530
78542510
882050
2995801
135189965
330172394

2.17
0.05
3.31
0.04
0.13
5.7
13.91

100 2373037600

100

PROJECTS & INNVESTMENTS

Tata Power is looking to aggressively expand its global operations and has already made its foray
into some key developing segments and markets. Here is a glimpse of its international portfolio:
Indonesia: Coal reserves and developing a geothermal project
South Africa: Exploring growth opportunities
Singapore: Coal Supply, shipping and trading
Nepal: Scouting Hydro prospects
Australia: Developing cutting edge technology
Tata Power has an investment of $50 million for a 10% stake in Australian CompanyGeodynamics. It has also entered into a partnership with Australian Solar power company
Sunengy Pty Ltd to build a pilot plant for low cost, floating on water, solar technology in
India. The company has also invested in Exergen, Australia for clean coal technologies.
Bhutan: Hydro Presence
The company is on a multi-fold growth path. Heres quick look at the projects that are under
implementation:
Developing Indias first Ultra Mega Power Project (UMPP) at Mundra, Gujarat with an
investment of Rs. 17,000 crores (US$ 4.2 billion).
1050 MW Maithan Power Project which have already been commissioned and stabilized
236 MW Dugar Hydro Project in Himachal Pradesh which is being optimized for 500MW
1600 MW Coastal Maharashtra Project
1980 MW Tiruldih Power Project, Jharkhand
660 MW Naraj Marthapur, Orissa
Kalinganagar, Orissa 3X67.5 MW (Gas based) + 3X150 MW (Coal + Gas Based) Project
114 MW Dagachhu Hydro Project in Bhutan
240 MW Sorik Marapi Geothermal Project in Indonesia
68 | P a g e

Subsidiaries
Chemical Terminal Trombay Ltd.
Af-Taab Investment Co. Ltd.
Powerlinks Transmission Ltd.
Tata Power Trading Co. Ltd.
NELCO Ltd.
Tatanet Services Ltd.
Maithon Power Ltd.
Industrial Energy Ltd.
Industrial Power Utility Ltd.
Industrial Power Infrastructure Ltd.
Coastal Gujarat Power Ltd.
Veltina Holdings Ltd.
Bhira Investments Ltd.
Bhivpuri Investments Ltd.
Khopoli Investments Ltd.
Energy Eastern Pte Ltd.
Trust Energy Resources Pte Ltd.
Tata Power Delhi Distribution Ltd.
Vantech Investments Ltd.
Tata Power Green Energy Ltd.
Dugar Hydro Power Ltd.
69 | P a g e

Recognition
For Financial year 2012
Tata Power won three awards at the CMO Asia Awards 2011 for excellence in Brand and
Marketing in the following categories:
Best Marketing Campaign of the Year- Tata Power Energy Club
Best In-house Magazine- Transmission Lines, April 2011
Best In-house Technical Training
In June, 2011 Tata Power has been Ranked No 38 as Indias Best Companies to work as per
the study done by Great Place to Work Institute
Tata Power was bestowed the prestigious Vasundhara Award in the Industry category,
given out to recognize exemplary work carried out by Industries, Urban Local Bodies,
Schools and Environmental Non Governmental Organizations (NGOs) towards protection of
environment in the state of Maharashtra by Maharashtra pollution Control Board (MPCB) on
the occasion of World Environment Day, 5th June,2011.
Trombay Thermal Power Station has bagged the prestigious Greentech Safety Award 2011 in
the gold category (in thermal power sector) for outstanding achievement in safety
management.
Tata Power has been conferred the prestigious BML Munjal Award for Excellence in
Learning & Development for the year 2011 by Mr. Bhupinder Singh Hooda, Chief Minister
of Haryana on 21st April, 2011 at delhi. Tata Power got the award in Private sector category.
Prospects
Tata Power expects to have a capacity of 25,000 MW by 2017.
According to Managing Director Anil Sardana, Tata Power is becoming very active internationally,
both for projects as well as resources.
They have targeted South East Asia and SAARC as of their target markets. SAARC includes
Srilanka, Bangladesh, Nepal and Bhutan. Similarly they have targeted Arica, Turkey and Middle
East also.
Apart from these Tata Power is focusing on Clean Technologies which are as follows:
70 | P a g e

 Biomass Gasification: A 250KW system using rice husk will be installed at the Tata Hydro
Power plant near Karjat. If successful, this technology can be taken to hundreds of villages.
Concentrated Photovoltaic (C-PV): A 13.5 KW pilot unit is being developed in which
sunrays are concentrated on PV cells and the assembly floats on Walwhan lake (Maharastra)
in order to cool the cells. If successful, this technology can be scaled up across all the lakes
that provide hydro power to Tata Plants in West Maharashtra and thus generate about 1,000
MW.
Solar powered telecom towers: more than 600,000 telecom towers in India use diesel
generator sets to provide power to their antennas. Tata BP Solar is providing solar PV panels
that can replace the gensets on 25 such installations. This technology can be upgraded to
augment power to local grids.
High altitude wind: Tata Power will test a 35 KW turbine mounted on a blimp that will float
333m above the ground to catch winds that are more intense and sustained at that altitude.
Micro wind turbine: the company will test a 2 KW wind turbine that can be mounted on
roof tops and provide power to homes.
Core Values
Integrity: Honesty, fairness and transparency in our conduct and transactions
Trust: Faith and belief in each other
Care: Being concerned about the well being of all employees
Collaboration: Excellence through teamwork, within employees and partners
Agility: Speedy, responsive and proactive, achieved through empowering employees
Respect: Treat all stakeholders with respect and dignity
Excellence: Bettering standards continuously with passion and pride.
SWOT Analysis of Tata Power
Strength
Tata Power is Indias largest integrated power company with a significant international
presence
71 | P a g e

 Diversified thermal generation portfolio-multiple sizes and fuel types

Highly skilled and experienced Human Resources exposed to state-of-the-art technologies in
project execution and power generation
Excellent track record of performance in project implementation and plant operations
High Brand equity among stakeholders
Engineering skills in project configuration and package design
Established systems and procedures to institutionalize excellence in business operationsreceived ISO accreditation in several functions/areas.
Weakness
Low market share
Capacity creation time is very high
Promotion for employees not to good in compare to other privet power company
Functional orientation hampering cross-functional perspective in decision making
Long and multi layered procurement process leading to long lead times process delays
Role ambiguity and dilution within different levels of the organization
Hierarchy for decision making that affects responsiveness
Opportunities
Emerging markets and expansion abroad
Product and services expansion
Increasing demand
Alternative sources of power generation
Forward integration into the distribution business in India
Threats
External changes (government, politics, taxes, etc)
72 | P a g e

 Price wars
High capital intensive
Lack of commitment to be aware of the ever changing needs of the clients/customers
Low availability of fuel mix in India and high import prices might affect the cost of
electricity generation

Tata Steel has always believed that the principle of mutual benefit between countries, corporations,
customers, employees and communities is the most effective route to profitable and sustainable
growth.
Established in 1907, Tata Steel is among the top ten global steel companies with an annual crude
steel capacity of over 28 million tonnes per annum (MTPA). It is now one of the worlds most
geographically-diversified steel producers, with operations in 26 countries and a commercial
presence over 50 countries.
The Tata Steel Group, with a turnover of US$ 26.13 Billion in FY12, has over 80,000 employees
across five continents and is a Fortune 500 company.
Tata Steels larger production facilities include those in India, the UK, the Netherlands, Thailand,
Singapore, China and Australia. Operating companies within the group include Tata Steel Limited
(India), Tata Steel Europe Ltd. (formerly Corus), NatSteel, and Tata Steel Thailand (formerly
Millennium Steel).
VISION
Our vision is to be the global steel industry benchmark for value creation and corporate citizenship
GOALS
The Tata Steel Group is proud of its performance culture. We are committed to the pursuit of
challenging targets, and to safety, environmental protection, continuous improvement, openness and
social responsibility in every aspect of our business around the world.
73 | P a g e

Four key corporate goals which will be achievable by Tata Steel by 2012 are as follows:
Value Creation: Deliver a 30% return on invested capital (ROIC)
Safety: Achieve an industry leadership position by driving down our lost time injury
frequency rate (LTIF) to a maximum of 0.4 incidents per million hours worked
Environment: reduce carbon dioxide (CO2) emissions to less than 1.9 tonnes per tone of
crude steel (t/tls)
People: Rank as an employer of choice in the top quartile across all industries
Management
The Company is managed by the Board of Directors, which formulates strategies, policies and
reviews its performance periodically.
The Board has 12 members, comprising of 1 Chairman, 1 Vice Chairman, 1 Managing Director, 7
Ind. Non-Executive Directors, 2 Additional Directors.
NAME

DESIGNATION

Ratan N Tata

Chairman

B Muthuraman

Vice Chairman

H M Nerurkar

Managing Director

Subodh Bhargava

Ind. Non-Executive Director

Nusil N Wadia

Ind. Non-Executive Director

Jacobus Schraven

Ind. Non-Executive Director

S M Palia

Ind. Non-Executive Director

Andrew Robb

Ind. Non-Executive Director

Ishaat Hussain

Non Exe. Non Ind.Director

Karl-Ulrich Koehler

Non Exe. Non Ind.Director

Cyrus Pallonji Mistry

Additional Director

74 | P a g e

Additional Director

Mallika Srinivasan
Source: www.moneycontrol.com
Shareholding Pattern

Share holding
Share holding pattern as on :
Face value

31/03/2012
10
No. Of
Shares

Indian Promoters
Sub total

Banks Fin. Inst. and Insurance

FII's
Sub total
Private Corporate Bodies
NRI's/OCB's/Foreign Others
GDR/ADR
Govt
Sub total
General public
Grand total

31/12/2011

%
Holding

30/09/2011
10

No. Of
Shares

Promoter's holding
304514362
31.35 294675576
304514362
31.35 294675576
Non promoter's holding
Institutional investors
238552715
24.56 235786711
139439388
14.36 123625751
414697768
42.7 399135384
Other investors
29024559
2.99 34235991
212797
0.02
575726
18091089
1.86 20540793
121659
0.01
121659
47450104
4.89 55474169
204552216
21.06 209929321
971214450
100 959214450

%
Holding

10
No. Of
Shares

%
Holding

30.72 294619519
30.72 294619519

30.71
30.71

24.58 231010110
12.89 140604911
41.61 406322273

24.08
14.66
42.36

3.57 31063806
3.24
0.06
37397 2.14 24182668
2.52
0.01
121659
0.01
5.78 55405530
5.78
21.89 202867128
21.15
100 959214450
100

Projects and Investments

The Tata Steel Groups growth and globalization strategy is driven by its business expansion while
maintaining profitability and mitigating risks. The Tata Steel Group over the years has focused on
enhancing raw material security and announced major joint ventures in various parts of globe.
Australia:
Bowen Basin Coking Coal Mine Project 58 million tonnes of raw coal for 14 years
75 | P a g e

 Canada:
Taconite Project and Direct Shipping Ore Project
India:
Seraikela Greenfield Project (12 Million Tonnes Integrated Steel Plant), Jharkhand
Brown Field Project (Extension of Jamshedpur Plant from 5MTPA to 10MTPA), Jamshedpur
Jagdalpur (Bastar) Project, Chhattisgarh
Kalinganagar Greenfield Project (6MTPA steel), Odisha
Port Project at Dhmra, Odisha
Haldia Plant, West Bengal
Tuticorin Mines (60,000 tonnes per annum of titanium di-oxide), Tamil Nadu
Ivory Coast:
Nimba Iron Ore Project
Mozambique:
Benga Coal Project
Netherlands
Ijmuiden Steel Works (7.52MTPA)
Oman
Limestone Project
Singapore
Tata NYK Shipping Pte Ltd.
Tata Steel will invest up to 250 million pounds (about Rs 2,000 crore) in its port Talbot facility in
the UK in the near term, including 185 million pounds for rebuilding a blast furnace.
According to Minister of Wales Carwyn Jones Tata Steel will invest 800 million pounds in Wales
over the next five years.
76 | P a g e

Recognition
Over the years, Tata Steel has won many rewards and recognitions. Be it corporate excellence where
the company engages in best practices, its state-of-the-art products or its social endeavours, the
company has been rewarded in each sector over and over again
Year 2012
HM Nerurkar conferred with Corporate Leadership Award (7th May,2012)
Tata Steel tops list of Indias 50 most admired companies (22nd April,2012)
B Muthuraman conferred Padma Bhushan by President Pratibha Patil(5th April,2012)
Tata Steel among Worlds Most Ethical Companies (17th March,2012)
Tata Steel acknowledged as the most admired Indian Company (13th March,2012)
Tata Steel conferred with the prestigious CII-ITC sustainability Prize 2011 (10th
February,2012)
Tata Steel Bags Awards for Best Sports Advertisement and Best Corporate Involvement in
Sports at NDTVs Marks for Sports Campaign (6th February,2012)
Tata Steel Bags Prime Ministers Trophy(20th January,2012)
Tata Steel Bags CNBC Asias Corporate Social Responsibility Award at CNBC TV 18
India Business Leader Awards 2012(IBLA)
Tata Steel bags award at NDTV Profit Business Leadership Awards 2011
Subsidiaries
Tata Steels position has been strengthened over the years through meaningful acquisitions of
enterprises across the globe. These enterprises have individually emerged as leaders in their
respective industry segments leading to judicious investments, therefore facilitating growth.
Jamshedpur Injection Power Ltd (Jamipol)
Jamshedpur Utility and Services Company Ltd (JUSCO)
Lanka Special Steel Ltd
Rawmet Ferrous Industries
77 | P a g e

 Silla Eastern Company Limited

Tata Steel KZN
Tata Metaliks Ltd
Tata Pigments Ltd
TRL Krosaki Refractories Ltd
Tata Steel Processing and Distribution Ltd (TSPDL)
Tata Sponge Iron Ltd (TSIL)
Tayo Rolls Ltd
Tinplate Company of India Ltd (TCIL)
TRF Ltd
The Indian Steel and Wire Products Ltd (ISWP)
Prospect
Integration and growth are the new buzzwords in Tata Steels corridors as the company looks at
global markets not just to sell steel, but also to acquire raw material assets to fuel further expansion.
Already, the consolidation of Coruss operations has catapulted Tata Steel to the position of the sixth
largest steelmaker in the world. The steel giant has set up joint ventures for the development of
limestone mines in Thailand and for procuring low-ash coal from Australia and Coaking Coal from
Mozambique. It is also putting up a deep-sea port in coastal Orissa and exploring opportunities in the
titanium dioxide business in Tamil Nadu.
Core Values of Tata Steel
Integrity: We must conduct our business fairly, with honesty and transparency. Everything
we do must stand the test of public scrutiny
Understanding: We must be caring, show respect, compassion and humanity for our
colleagues and customers around the world, and always work for the benefit of the
communities we serve
Excellence: We must constantly strive to achieve the highest possible standards in our day to
day work and in the quality of the goods and services we provide
78 | P a g e

 Unity: We must work cohesively with our colleagues across the group and with our
customers and partners around the world, building strong relationships based on tolerance,
understanding and mutual cooperation
Responsibility: We must be responsible and responsive to the countries, communities and
environments in which we work, always ensuring that what comes from the people goes back
to the people many times over
SWOT Analysis of Tata Steel
Strength
High Mineral Reserves
Highly credible management team who has displayed their skills in expanding the company
through inorganic route.
Highly sophisticated Information Technology the entire mining operation of the Company
is safe guarded against accident occurrence.
Innovativeness of Tata Steel with respect to its competitors Tata Steel has the lowest
operating cost for steel manufacture in the world. Further it has displayed effective means in
adopting and eco-friendly and sustainable approach towards the manufacture of steel.
High Brand Value
Corporate Governance Tata Steel has an impeccable record for corporate governance.
Adaptability of the company in the fast change of the environment Tata Steel has displayed
immense agility in the recent past during the global financial tsunami
Excellent procurement philosophy Tata Steel has around 70% of its supplies through long
term contracts
Excellent integration with Corus Corus has a great reserve of around 2000 metallurgists
and technology which could be exploited by Tata Steel on several fronts
Spawning upon opportunities Tata Steel has been amongst the earliest to spot the escalation
in the demand for Steel in the forthcoming years. It has hence invested heavily in the
expansion of its existing facility at Jamshedpur and is setting up other green field projects at
Orissa, Jharkhand etc.

79 | P a g e

Weakness
Huge debt burden Tata Steel is having a total debt of more than 10 Billion USD
High attrition rate
Degradation in brand value owing to job losses
Products in the portfolio lacking demand Aerospace steel
Low cost recovery
Opportunities
Competitive position of the Company- Tata Steel is the second largest producer in India and
the sixth largest producer in the world
Newer technologies
Opportunities in the field India have geared up for rapid expansion in the field of
infrastructure.
Opportunities for demand of higher prices
The movement of Tata Steel in the value chain front
Improvement in the quality of operations, products, inventory management
Time for diversification
Threats
International Competition
Resources to cushion the from business environmental change
Adoptability of the company to technological changes
Global Financial Crises
Adverse effects of land acquisition picketing
Decrement in the sales volumes
Regulatory norms
80 | P a g e

JSW is part of US $ 15 billion O.P. Jindal Group. It has grown to US $ 9 billion in little over a
decade and has presence across various sectors Steel, Energy, Minerals, Port & Infrastructure,
Cement, and Aluminum.
JSW Steel, the flagship company of the JSW Group, is today an integrated steel manufacturer. JSW
Steel is the largest private sector steel manufacturer in terms of installed capacity.
The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired Primal
Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra.
In 1994, Jindal Vijaynagar Steel Ltd. (JVSL) was setup, with its plant located at Toranagallu in the
Bellary-Hospet area of Karnataka.
In 2005, Jindal Iron and Steel Co. Ltd. (JISCO) and JVSL merged to form JSW Steel Ltd.
JSW Steel has acquired a majority stake in Ispat Industries Ltd. making JSW Steel Indias largest
steel producer with a combined capacity of 14.3 MTPA by March 2011. The Company has also
acquired mining assets in Chile, USA and Mozambique.
JSW Steel offers the entire gamut of steel products Hot Rolled, Cold Rolled, Galvanized,
Galvalume, Pre-painted Galvanized, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special
Steel Bars, Rounds & Blooms. JSW Steel has manufacturing facilities at Toranagallu in Karnataka,
Vasind & Tarapur in Maharashtra and Salem in Tamil Nadu.
By 2020, the Company aims to produce 34 Million tons of steel annually with Greenfield integrated
steel palnts coming up in West Bengal and Jharkhand.
VISION
Global recognition for Quality and Efficiency while nurturing Nature and Society
MISSION
Supporting Indias growth in Steel Domain with speed & innovation.
81 | P a g e

Management
The Company is managed by the Board of Directors, which formulates strategies, policies and
reviews its performance periodically.
The Board has 14 members, comprising of 1 Chairman Emeritus, 1 Chairman and Managing
Director, 1 Jt. Managing Director & Group CFO, 1 Director & CEO, 7 Directors and 3 Nominee
Directors.
NAME

DESIGNATION

Savitri Devi Jindal

Chairman Emeritus

Sajjan Jindal

Chairman and Managing Director

M V S Seshagiri Rao

Jt. Managing Director & CFO

Vinod Nowal

Director & CEO

Jayant Acharya

Director

Yasushi Kurokawa

Nominee Director

Zarin Daruwala

Nominee Director

S K Gupta

Director

Anthony Paul Pedder

Director

Vijay Kelkar

Director

Uday M Chitale

Director

Sudipto Sarkar

Director

Kannan Vijayaraghavan

Director

Rajneesh Goel

Nominee Director

Source: www.moneycontrol.com
Shareholding Pattern

Share
82 | P a g e

holding
Share holding pattern
as on :

31/03/2012

Face value

10
No. Of
Shares

Indian Promoters
Foreign Promoters
Sub total

%
Holding

9751526
45719425
56235165

Private Corporate
Bodies

10358775

No. Of
Shares

44610913
2600938
1237500
3224506
62032632
20304768
223117200

4.37
9862290
20.49 45139387
25.2 55584800
Other investors
4.64

30/09/2011
10

Promoter's holding
78840023
35.34 78440127
5704612
2.56
5704612
84544635
37.89 84144739
Non promoter's holding
Institutional investors

Banks Fin. Inst. and

Insurance
FII's
Sub total

NRI's/OCB's/Foreign
Others
GDR/ADR
Govt
Others
Sub total
General public
Grand total

31/12/2011

10671791

19.99 44377093
1.17
3085814
0.55
1237500
1.45
3224516
27.8 62596714
9.1 20790947
100 223117200

%
Holding

10
No. Of
Shares

%
Holding

35.16
2.56
37.71

78440115
5704612
84144727

35.16
2.56
37.71

4.42
20.23
24.91

9773830
47993890
58187287

4.38
21.51
26.08

4.78

9758453

4.37

19.89 44377718
1.38
3085814
0.55
1237500
1.45
2687960
28.06 61147445
9.32 19637741
100 223117200

19.89
1.38
0.55
1.2
27.41
8.8
100

PROJECTS AND INVESTMENTS

JSW group have lots of project in India and abroad. Few projects news is as follows:
Vijayanagar Steel Plant Capacity Expansion 10 MTPA to 12 MTPA
JSW Jharkhand Steel Project (Greenfield Project) 10 MTPA with Power Plant
JSW Bengal Steel Project (Greenfield Project) 3 MTPA in Phase I with Power Plant
(Investment Rs. 35,000 Crore)
83 | P a g e

 Ramp up of US coal Mines Capacity

Recognition
The Times of India Earth Care Award 2012
Corporate Sustainability Award 2009-2011
CII-EXIM Award 2011, 2009,2008,2007
Karnataka Chapter Safety Award 2009
Greentech Environment Excellence Award 2009,2008
ISO 14001:2004 Certification
IMC Ramakrishna Bajaj National Quality Award 2009, 2008,2007
CII-ITC Sustainability Award 2008
Gold Award in Metal and Mining Sector 2007
Subsidiaries
Indian Subsidiaries
JSW Bengal Steel Ltd.
JSW Jharkhand Steel Ltd.
JSW Steel Processing Centres Ltd. (JSWSPCL)
JSW Building Systems Ltd.
Overseas Subsidiaries
JSW Steel (Netherlands) B.V. (JSW Netherlands)
JSW Steel Holding (USA) Inc. and its subsidiaries viz. JSW Steel (USA) Inc.
JSW Steel (UK) Ltd. and its subsidiaries namely Argent Independent Steel (Holdings)
Ltd. and JSW Steel Service Centre (UK) Ltd.
JSW Panama Holdings Corporation and its Chilean subsidiaries namely Inversiones
Eurosh Ltd. (IEL), Santa Fe Mining (SFM) and Santa Fe Puerto S.A (SFP)
84 | P a g e

 JSW Natural Resources Ltd (JSWNRL) and its subsidiaries JSW Natural Resources
Mozambique Lda (JSWNRML), JSW ADMS Carvao Lda
Apart from subsidiaries there are many no of Joint Ventures.
Prospects
Economic recovery is expected to continue its positive momentum across most of the economies.
China, with its 12th Five Year Plan to commerce from 2011 onwards, is slated to shift focus from
growth to income distribution while encouraging Energy Efficiency, Emission Reduction, Resource
Conservation and Social aspects. China is also expected to intensify its focus on exploring domestic
demand and restructuring of steel industry coupled with elimination of inefficient and marginal
capacities. Rest of the world is also expected to witness improved growth led by expanding
Investments and consumption with an improving global trade, even though inflation is a challenge
that most of emerging economies needs to address while keeping the growth momentum intact.
Overall the Steel sector is expected to see a good demand and higher price realization driven mainly
by restocking and surging input cost.
Core Values of JSW Steel
Transparency
Strive for Excellence
Dynamism
Passion for Learning
SWOT ANALYSIS of JSW Steel
Strength
JSW is the first steel producer in this world to use Corex Technology
JSW operates in both the upstream and downstream sectors
Vijayanagar Steel Plant is a fully integrated steel plant
The company has recently launched GALVALUME, a revolutionary product in the steel
industry.
JSW is Indias largest private steel maker
85 | P a g e

 The labor and conversion costs (these include labour cost, energy cost and other
manufacturing costs) per ton of steel are among the lowest in the industry (both domestically
and internationally)
Productivity per employee at JSW Steel is comparable to international standards
Weakness:
Inability to utilize 100% capacity
Low perception among investors about the companys management and ability to sustain
growth
It does not have own mines for some of its basic raw materials
R&D budget is very less compared to International competitors

Opportunity:
JSW steel has access to top talent from the country and that too at comparatively lower prices
than the competitors price
JSW Steel is located in a fast growing country like India where the per-capita steel
consumption is still low but this means huge potential for growth
Threat:
The entry of the world biggest steel corporations (like Arcelor Mittal) into India will pose a
major threat to the company
The domestic competitors like Tata Steel are expanding rapidly and JSW Steel need to keep
up with the competition
The current economic scenario where steel demand is declining around the world is another
major area of concern for the organization. The company has already postponed and/or
delayed some of its projects which were in the pipeline
The cyclical nature of the Steel industry means that the company needs to control its cost and
have efficient production processes throughout

86 | P a g e

 The company also needs to manage its rapid growth effectively and not go off track. This is
another area which of concern and is likely to be the managements top priority
Fiscal incentives from the govt. might be another area of concern for the company because
some of these might be withdrawn anytime

7th February, 1946 the Company was incorporated. Larsen & Toubro carries on business as civil,
mechanical, electrical, chemical & agricultural engineers as manufacturers as importers & exporters
& as contractors. The Company represents a large number of overseas manufactures, notably
manufacturers of tractors, agricultural machinery, dairy machinery, film cooling towers and general
industrial and engineering plants and coal mining machinery.
Larsen & Toubro is a USD 12.8 Billion technology, engineering, construction, manufacturing and
financial services conglomerate, with global operations.It is one of the largest and most respected
companies in Indias private sector.
More than seven decades of a strong, customer-focused approach and the continuous quest for
world-class quality have enabled it to attain and sustain leadership in all its major lines of business.
L&T has an international presence, with a global spread of offices. A thrust on international business
has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing
footprint, with facilities in China and Gulf Region.
The companys businesses are supported by a wide marketing and distribution network, and have
established a reputation for strong customer support.
L&T believes that progress must be achieved in harmony with the environment. A commitment to
community welfare and environmental protection are an integral part of the corporate vision.
In response to changing market dynamics, L&T has gone through a phased process of redefining its
organization model that facilitates growth through greater levels of empowerment. The new structure
is built around multiple businesses designated Independent Companies or ICs.
VISION
L&T shall be a professionally-managed Indian multinational, committed to total customer
satisfaction and enhancing shareholder value.
87 | P a g e

L&T-ites shall be an innovative, entrepreneurial and empowered team constantly creating value and
attaining global benchmarks.
L&T shall foster a culture of caring, trust and continuous learning while meeting expectations of
employees, stakeholders and society.
Management
The Company that we run has a strong heritage of professionalism that places the highest value on
merit and integrity. In the 70th year of the existence of L&T, all the directors of L&Ts board are
conscious of their responsibility in transforming the organization to make it truly world class, to
ensure its continued long term success and growth.
NAME

DESIGNATION

A M Naik

Chairman & Managing Director

K. Venkataramanan

CEO & Managing Director

V.K. Magapu

Whole-time Director & President

M.V. Kotwal

Whole-time Director & President

Ravi Uppal

Whole-time Director & President

S.N. Subrahmanyam

Whole-time Director & Sr. EVP

R. Shankar Raman

Whole-time Director & CFO

Shailendra Roy

Whole-time Director & Sr. Executive Vice

President

S. Rajgopal

Non-Executive Directors

S.N.Talwar

Non-Executive Directors

M.M.Chitale

Non-Executive Directors

Thomas Mathew T.

Non-Executive Directors

N. Mohan Raj

Non-Executive Directors

Subodh Bhargava

Non-Executive Directors

88 | P a g e

Mrs. Bhagyam Ramani

Non-Executive Directors

A.K. Jain

Non-Executive Directors

J.S. Bindra

Non-Executive Directors

Source: www.moneycontrol.com
Shareholding Pattern

Share holding
Share holding pattern as on :
Face value

31/03/2012
2

Banks Fin. Inst. and Insurance

FII's
Sub total
Private Corporate Bodies
NRI's/OCB's/Foreign Others
GDR/ADR
Direcctors/Employees
Others
Sub total
General public
Grand total

89 | P a g e

30/09/2011
2

%
%
%
No. Of
No. Of
Holdin
Holdin
Holdin
Shares
Shares
g
g
g
Promoter's holding
19399135
3.17 19399135
3.17 Non promoter's holding
Institutional investors
14314569
14705680
14972015
6
23.37
7
24.03
6
24.5
95638792
15.62 84700203
13.84 97404070
15.94
31994968
31602138
31891830
5
52.25
0
51.65
5
52.18
Other investors
43803839
7.15 45147667
7.38 40728318
6.66
5581648
0.91
5647686
0.92
5294036
0.87
19099263
3.12 25921934
4.24
2800694
0.46
2699194
0.44
77240660
12.61 74404116
12.16 74404116
12.17
14546652
12774127
14878871
2
23.75
5
20.88
0
24.35
14672380
14842394
14319519
4
23.96
9
24.26
4
23.43
61214001
61158573
61090220
1
99.96
9
99.96
9
99.96
No. Of
Shares

Foreign Promoters
Sub total

31/12/2011

PROJECTS AND INVESTMENTS

L&T has strong presence in Indian market and also in foreign. Here are some highlights of those
National Projects:
Rs. 2,592 crore project for construction of residential and commercial buildings in major
cities
Hyderabad Metro Rail Project
Rs. 479 crore power transmission and distribution project
Rs. 265 crore water and solar business
RS. 26 Billion National Highway Project (NH 14 244-km between Beawar and Pindwara in
Rajasthan) on BOT DBFO (Design, Built, Finance and Operate) basis, with a concession
period of 23 years
Rs. 1,937 crore NHAI project (Shivpuri-Dewas section of NH-3)
Rs. 2,538 crore Amravati-Jalgaon NHAI Project
Railway Project for Sterlite Energy Ltd. 2400 MW Power Plant
Mono rail project in Mumbai
Rs. 1,047 Crore Indian Railway Cast Steel Wheel Manufacturing Plant in Chhapara, Saran
District of Bihar
Refinery Projects, Petrochemical Projects, Fertilizers, Gas processing project, Modular
process plants
Different Power Projects Thermal, Hydal, Nuclear, Solar
Steel Plant
IT Project
Shipbuilding Project
Apart from these L&T wants to invest Rs. 10,000-Rs 11,000 crore for a 1600 MW (2x800)
power plant in West Bengal. Also they want to invest Rs. 83,000 crore in Orissa including a
2,000 MW thermal power plant.
90 | P a g e

International Project:
L&T is globalizing its operations, with increasing focus on International Business opportunities.
Over the years, L&T has outgrown its national barriers and extended its activities into the
outstretched arms of the Indian Ocean Rim countries. L&Ts international presence is increasing,
with worksites in 20 countries that encompass South Asia, South East Asia, the Middle East, Russia,
CIS countries including African countries,
UAE Bridges between Islands, Multi storied Residential complex, Commercial Complex,
International Airport Terminal, Electrical Substations, Radio Wave Towers, Submarine
Cable and Substation and Tunnel
Oman Gas Based Power Plant, Tunnel, Transmission Line, Electrical Substations, Bridges
etc.
Qatar Equipment erection, Process Piping, Office Space, Combined cycle Power plant etc.
Bahrain Electrical Project, Substation, hotel etc.
Saudi Arabia 100-200 Bed Hospitals, Substation, Transmission Line, Gas Supply project
etc.
Like these there are also different types of projects handled by L&T in Iraq, Kuwait, Sudan,
Srilanka, Yemen, Uzbekistan, Australia, Mozambique, Nepal, Malaysia, Mauritius,
Bangladesh, Maldives, Bhutan, Jordan, Kenya, Tanzania, Germany, West Indies and Russia.
Recognition
L&T wins ICC Corporate Governance and Sustainability Vision Award 2012
L&T Ranks 3rd in BSE Green Index
L&T Top Engineering Company in Business Today Listing of Best Companies to Work
For
FICCI Awards for Excellence in Quality Systems
L&T Ranks Among Top 10 in S&P ESG India Index
L&T CMD Ranked One of Indias Top Two CEOs from 1995 to 2011
L&T wins NDTV Profit Business Leadership Award
91 | P a g e

Subsidiaries
L&T has a large number (119) of subsidiaries carrying out its business all over the world. Name of
some subsidiaries are as follows:
Larsen & Toubro Infotech Ltd.
L&T Infocity Ltd.
L&T Infrastructure Development Projects Ltd.
L&T Power Ltd.
Tractor Engineers Ltd.
L&T Urban Infrastructure Ltd.
L&T Tech Park Ltd.
L&T - MHI Boilers Private Ltd.
L&T MHI Turbine Generators Private Ltd.
Offshore International FZC
L&T Power Development Ltd.
L&T Shipbuilding Ltd.
L&T Technologies Ltd.
L&T Solar Ltd.
L&T Metro Rail (Hyderabad) Ltd.
L&T Kobelco Machinery Private Ltd.
Prospects
L&T has diversified business. So, it is emerging in all the field and now huge prospects in many
areas. Some salient features are as follows:
Road Projects are offered on BOT DBFO basis and will follow new MCA.
Total coast line of over 7517 Kms shared by 9 states.
92 | P a g e

 12 Major Ports and 187 minor ports

CAGR (10yr period) Major ports 6.20%; Minor Ports 21.95%
CAGR proj. till 2012-13 7.7% overall and 15.5% containers
Terminal development in Major ports through bid route
Inland waterways development to supplement road/rail in internal logistics chain
Urban Infrastructure Development
Power Transmission Line
Railway Projects Special Freight Corridor
Potential Airports Chennai & Kolkata
Non Metro airports City Side Development
Emerging Opportunities in the Fertilizer Sector
Emerging Opportunities in Power Sector (Renewable & Non-renewable)
Shipbuilding
Aerospace
Industrial Machinery
By seeing these we can say that L&T has great future and it will grow continuous basis.
Core Competencies:
Process Technology
Modern R&D centre located at Powai Campus which support to all the business units for
successful implementation of large turnkey EPC Projects.
Highly talented Chemical Engineering group is responsible for offering complete process
engineering solution.
The Material Science & Corrosion Engineering group provides vital technology support
to all projects.
93 | P a g e

 The Rotating Machinery Group offers complete solutions for machinery-related

applications.
The Mechanical Engineering Group is engaged in: Theoritical and experimental stress
analysis for equipment, structures and piping systems.
The Ocean Engineering Group supports the L&T Hydrocarbons efforts to develop
expertise in deep-water Exploration/Production projects in Upstream Hydrocarbon sector.
The Water Technology Group is providing necessary expertise to exploit the business
potential in water management and knowledge-based water treatment solutions.
Basic & Detailed Engineering
L&T Engineering
Engineering Support By Joint Venture Companies
Electrical & Instrumentation (E&I) Engineering Group
Front End Engineering and Design
Engineering Design & Research Centre
World-class Heavy Engineering workshops at Powai (Mumbai), Hazira, Kansbahal, Chennai,
Vadodara, Katupalli and in Oman.
Global Procurement supported by SAP R/3 ERP System.
Efficient Project Management
Largest Construction Organization
Highly Skilled Commissioning Team
SWOT ANALYSIS of L&T
Strength
Huge Order Book Position L&Ts current order book stands at Rs. 1.4 trillion
A big player in Power Sector
Dharma Port has started operation
94 | P a g e

 A leader in the city rail segment

Highly skilled manpower
Excellent in-house learning facility
Global Procurement System
Modular Fabrication Yard
Excellent R&D Facility
Front End Engineering
Diversified Business
Weakness
High attrition rate
Highrarchy system
Debt Burden
Slow decision making
Opportunity
Huge Investment in Infrastructure Sector
Emerging Power Sector(Renewable & Non-Renewable)
Value unlocking in the Company
Opportunities in the Middle East
Emerging growth Fertilizers Segment
Threat
Increase in Raw material cost
Slow decision making in the hydrocarbon space
Deacceleration of Indias GDP growth rate
95 | P a g e

 Political situation of Middle East

Execution delays

BHEL is an integrated power plant equipment manufacturer and one of the largest Engineering and
Manufacturing Company in India in terms of turnover. It was established in 1964, ushering in the
indigenous Heavy Electrical Equipment industry in India a dream that has been more than realized
with a well-recognized track record of performance. The company has been earning profits
continuously since 1971-72 and paying dividends since 1976-77.
BHEL is engaged in the design, engineering, manufacture, construction, testing, commissioning and
servicing of a wide range of products and services for the core sectors of the economy, viz. Power,
Transmission, Industry, Transportation, Renewable Energy, Oil & Gas and Defense. They have 15
manufacturing divisions, two repair units, four regional offices, eight service centers, eight overseas
offices and 15 regional centers and currently operate at more than 150 project sites across India and
abroad. BHEL places strong emphasis on innovation and creative development of new technologies.
BHELs research and development (R&D) efforts are aimed not only at improving the performance
and efficiency of existing products, but also at using state-of-the-art technologies and processes to
develop new products. This enables them to have a strong customer orientation, to be sensitive to
their needs and respond quickly to the changes in the market.
The high level of quality & reliability of BHELs products is due to adherence to international
standards by acquiring and adapting some of the best technologies from leading companies in the
world including General Electric Company, Alstom SA, Siemens AG and Mitsubishi Heavy
Industries Ltd., together with technologies developed in their own R&D centers. Most of their
manufacturing units and other entities have been accredited to quality Management Systems (ISO
14001:2004) and Occupational Health & Safety Management Systems (OHSAS 18001:2007).
BHEL have a share of around 59% in Indias total installed generating capacity contributing 69%
(approx) to the total power generated from utility sets (excluding non-conventional capacity) as of
31st March, 2012. BHEL have been exporting their power and industry segment products and
services for approximately 40 years around 70 countries. They had cumulatively installed capacity of

96 | P a g e

over 8,500 MW outside of India in 21 countries, including Malaysia, Iraq, the UAE, Egypt and New
Zealand. Their physical exports range from turnkey projects to after sales services.
VISION
A global engineering enterprise providing solutions for a better tomorrow
MISSION
Providing sustainable business solutions in the fields of Energy, Industry & Infrastructure
MANAGEMENT
The Company is managed by the Board of Directors, which formulates strategies, policies and
reviews its performance periodically. The Chairman & Managing Director and eleven Whole Time
Directors manage the business of the company under the overall supervision and guidance of the
Board.
The Board has 13 members, comprising of 1 Chairman & Managing Director, 11 Whole Time
Directors, 1 Non Official Part Time Directors.
NAME

DESIGNATION

B Prasada Rao

Chairman and Managing Director

Ashok Kumar Basu

Director

Reva Nayyar

Director

Trimbakdas S Zanwar

Non Official PartTime Director

Atul Saraya

Director

M K Dube

Director

R Krishnan

Director (Human Resources)

Ambuj Sharma

Director

M A Pathan

Director

V K Jairath

Director

97 | P a g e

S Ravi

Director

O P Bhutani

Director

P K Bajpai

Director (Finance)

Source: www.moneycontrol.com
Shareholding Pattern

Share
holding
Share holding pattern
as on :

31/03/2012

Face value

2
No. Of
Shares

Indian Promoters
Sub total

Banks Fin. Inst. and

Insurance
FII's
Sub total
Private Corporate
Bodies
NRI's/OCB's/Foreign
Others
Direcctors/Employees
Others
Sub total
General public
Grand total

98 | P a g e

31/12/2011

%
Holding

2
No. Of
Shares

%
Holding

Promoter's holding
1657552000
67.72 1657552000
1657552000
67.72 1657552000
Non promoter's holding
Institutional investors
278981481
330058708
644364302

30/09/2011

11.4 187045538
13.48 299370070
26.33 630656798
Other investors

No. Of
Shares

%
Holding

67.72 331510400
67.72 331510400

67.72
67.72

7.64 33608967
12.23 63016321
25.77 128371135

6.87
12.87
26.22

69234164

2.83

91783409

3.75

4739547
3100 5937139
79913160
65769748
2447599210

0.19

4479205
3100 3219760
99484684
59905728
2447599210

0.18

0.24
3.26
2.69
100

10

0.13
4.06
2.45
100

17369532
821633
620 532898
18724525
10913782
489519842

3.55
0.17
0.11
3.83
2.23
100

PROJECTS AND INVESTMENT

Despite stagnation in the power sector and intense competitive pressure in domestic and overseas
markets, BHEL secured orders worth Rs. 22,096 Crore, during the year 2011-12. At the end of the
year, cumulative orders in hand for execution in 2012-13 and beyond, stand at about Rs. 1,34,681
Crore.
From being one of the most rapidly growing sectors till last year, the power sector in India has
witnessed a sharp slowdown during 2011-12. Project developers are facing numerous constraints
which have affected on-going as well as new projects due to factors like Coal allocation, Gas
allocation, Environmental clearance, Land acquisition, Financing, legal issues etc. As a result, the
bidding process of many projects was delayed and many projects, for which bids had been opened
more than a year ago, could not be concluded.
In the Power Sector business segment, BHEL continued to demonstrate its competitiveness by
bagging most of the Power plant & associated equipment orders placed during the year, in the
country. Orders worth Rs. 13,937 Crore were secured during the year 2011-12.
Significant orders received in the Power Sector include:
Main plant equipment package for 2x660 MW Singrauli Supercritical Power Project from
DB Power (MP) Ltd.
Main plant equipment package for 2x660 MW Singareni Thermal Power Project from
Singareni Collieries Co Ltd.
2x660 MW Steam Generator order for Mauda Supercritical Thermal Project of NTPC against
bulk tender
First ever order for new rating thermal set of 300 MW rating from Abhijeet Projects Ltd.
Significant orders received in the Industry Sector include:
Continued Customer Confidence 4 STGs from Grasim Pulp & Fibre Division
Bagged Single largest Raw Material Handling System (RMHS) order worth Rs. 1,395 Crore
from NMDC for their 3 MTPA Integrated Steel Plant being set up at Nagamar, Chhattisgarh.
Bagged Single largest order for 85 sets 25 KV AC EMU (Conv.) from ICF, Chennai and for
870 sets Wheel and Axle assembly from the Railway Board

99 | P a g e

 Secured Major order for supply of 6 nos. state-of-the-art AC Drilling Rigs from ONGC,
received after a gap of 18 years.
Record orders for motors from CHP/AHP suppliers for 217 motors and for 15 nos. 980-6500
KW motors from Manikgarh Cement.
Secured orders for 765/400 KV substation at Raichur, 400/220 KV Aurangabad substation &
400 KV Wardha substation Extn.
Secured orders for 14 nos. 285 MVA, 400 KV Generator Transformers for KAPP and RAPP
nuclear power plants of NPCIL
Secured orders for 28 nos. Power Transformers from PSTCL of 100 MVA, 220/66 KV and
12 nos. 160 MVA, 220/66KV, 19 nos. 160 MVA, 220/132 KV Auto Transformers and 32
nos. 132 KV Transformers from MPPTCL
Significant orders received in International business include:
Ukraine Entry into new market BHEL made its maiden entry into Ukraine by securing an
order for a 27 MW Steam Turbine Generator (STG) package from the ArcelorMittal group.
Single largest export order for Transformers BHEL secured the single largest export order
for transformers for Punatsangchhu - I Hydroelectric Project, Bhutan
Letter of Intent received for 6x170 MW Punatsangchhu II Hydroelectric Project, Bhutan
Repeat order for Motors from Kenya
New product in existing market Wellheads from Georgia
Footprints strengthened in 21 countries across the globe Indonesia, Iraq, Bangladesh,
Yemen, Nigeria and UAE
Recognition (2011-12)
SCOPE Meritorious Award for R&D, Technology Development and Innovation presented
by Honble President of India, Smt. Pratibha Patil
MoU Excellence Award 2009-10 as the Top Performing CPSE in Industrial Sector
presented by Honble Prime Minister of India, Dr. Manmohan Singh
NDTV Business Leadership Award
100 | P a g e

 ICWAI National Awards for Excellence in Cost Management

Essar Steel Infrastructure Excellence Award 2011
National Safety Award
Under the Rolta Corporate Awards 2010 of Dun & Bradstreet, BHEL was selected as the top
Indian Company under the Engineering /Capital Goods sector
The Intellectual Property Award 2011 was conferred on BHEL by CII
BHEL also won the Golden Peacock Award for Occupational Health & Safety 2011 and
Golden Peacock Award for Innovation Management 2011 in the Manufacturing Sector
category
BHEL was awarded the EXIM Achievement Award in the Import Category by the Tamil
Chamber of Commerce.
Dainik Bhaskar India Pride Gold Award 2011, Gentle Giant Award from the Dalal Street
Investment Journal
Enertia Award 2011
Top Export Award
BHEL was recognized as the Best Engineering Company to Work For in the Engineering &
Automotive category by Business Today magazine.
BHEL has been ranked the Ninth Most Innovative Company in the world by the renowned
US Business magazine Forbes
3 Quality Circles won Gold Medals for their case studies at the International Quality Circle
Conference (ICQCC 2011) held in Yokohama, Japan.
8 Prime Ministers Shram Awards including 2 Shram Bhushan and 5 Vishwakarma
Rashtriya Puraskars
PROSPECTS
BHEL is expected to grow 20-25 % year on year between 2012 and 2015, matching with the
countrys next five year plan strategy for the power sector and this offered good growth prospects for
the vendors in the small and medium sectors.
101 | P a g e

Strategic Plan 2012-17 crafted recently, attempts to steer the company with a vision of becoming a
global engineering enterprise. It comprises expanding our offerings in the power sector by building
EPC capability, focus on industry businesses, expansion of spares & services and adoption of a
collaborative approach.
In spite of the current stagnation in Power Sector, they believe that the power sector will continue to
remain a major contributor to their top line with transportation and transmission emerging as the
next big business verticals. BHEL will continue to strengthen their presence in the Nuclear,
Renewable and Water segments.
BHEL will continue to sustain their focus on innovation to develop strong capabilities in product
development and engineering. To uphold their reputation for excellence in their core capability of
Engineering & Technology, they will continue to upgrade existing products and systems to
contemporary levels and develop new products through continuous in-house efforts as well as
through acquisition of new technologies.
In recent years, BHEL has expanded its manufacturing capacity. They are taking various initiatives
to streamline their manufacturing value chain for full exploitation of a strong manufacturing base.
Notwithstanding the uncertainties in the business environment and rising intensity of competition,
BHELs aspire to reach a turnover level of US$ 20 Billion by 2017.
SWOT ANALYSIS of BHEL
Strength
BHELs ability to acquire modern technology and make it suitable to Indian conditions has
been an exceptional strength of the Company
The Company has 180 products under 30 major product groups that cater to the needs of the
core sector like power, industry, transmission, transportation, defense, telecommunications
and oil business
Largest source of domestic business leading to major presence and influence in the market
Low labor cost
Sound Financial position in terms of profitability and solvency
Cost competitiveness
After sales service
102 | P a g e

 Superior Quality
R&D
Global Presence
Weakness
Difficulty in keeping up the commitments on the product delivery and desired sequence of
supplies
Larger delivery cycles in comparison with international suppliers of similar equipment
Lack of effective marketing infrastructure
Inability to provide suppliers credit, soft loans and financing of power projects
Due to poor financial position of state electricity boards, which are the major customers of
BHEL in India, liquidity position of BHEL is not satisfactory
Being a public sector company BHEL is suffering from sub optimality of control due to:
Direct political intervention in managerial decision over an arm length relationship that
would restrict governments task of setting appropriate managerial incentive structure
Displacement of social objectives by political objectives, which may lead to redundant
costs and also rising costs
Internal inefficiencies in bureaucratic activity
Private goals that lead to budget growth and employment growth
Opportunities
Private sector power plants to offer expanded market as utilities suffers resource crunch
Demand for power and hence plant equipment is expected to grow
Life expansion program for old power stations
Ageing power plants would give rise to more spares and services business
Easy processing of joint ventures/collaboration/import/acquisition of new technology
Export opportunities
103 | P a g e

 Financial and operational autonomy for profit making public sector enterprises
Threats
Multilateral agencies reluctant to lend to power sector because of poor financial management
of S.E.Bs
Increased competition both national and international
Level playing ground not available, foreign companies spending much more on business
promotion tactics
More concessions to private sector and not to government owned utilities like NTPC or
S.E.Bs, so future power projects would be opened up in private sector
FINANCIALS OF DIFFERENT COMPANIES
FINANCIALS OF NTPC
Results for FY12, which signifiy as follows:
Highest ever turnover. Rs. 64832.00 Crore (Up 9.43% over FY11)
Highest ever net profit. Rs. 9,223.73 Crore (Up 1.33% over FY11)
Increase in EPS over FY11 due to increase in net profit.
Increase in Reserves and Highest ever. Rs. 65,045.71 Crore (Up more than 9% over FY11)
NTPC paid highest ever interim dividend of Rs. 2885.92 crore.
Highest ever generation in Unit : 222.07 Billion and NTPCs overall PLF(85.00%) was far
better than total Indias PLF(73.29%).
FINANCIALS OF TATA POWER

10

Results for FY12, which signifiy as follows:

Groups FY12 Consolidated Revenue crosses Rs. 25000 Crores. Revenue up by 34% at Rs.
25868.87 Crores due to strong Operational fundamentals; Operating Profit also up by 16% at
Rs. 5325 Crores;
Consolidated PAT stood at Rs. (1087.68) Crores as compared to Rs. 2059.60 Crores (due to
provisions made for Mundra impairment and deferred stripping costs)
104 | P a g e

 Crossed 5,000 MW mark, re-affirming its position as the largest integrated power company
in India
On a consolidated Financial Year Segment-wise performance, Net Revenue from Power
business was up by 31% Rs. 16169.59 Crores as compared to Rs. 12305.62 Crores and from
Coal Business was up by 44% at Rs. 9196.52 Crores as compared to Rs. 6400.47 Crores in
the last year. PBIT from Power Business was Rs. 2159.75 Crores as against Rs. 1942.94
Crores and PBIT from Coal Business was at Rs. 1988.05 Crores as compared to Rs. 1673.13
Crores reported last year
Decrease in EPS due to share split (1:10)
Decrease in Face Value
FINANCIALS OF TATA STEEL

11

Results for FY12, which signifiy as follows:

Tata Steel Groups PAT (after minority interest and share of profit of associates) during the
financial year 2011-12 (FY12) was Rs. 5,390 crores (US$ 1.06 Billion) compared to a profit
of Rs. 8,983 crores (US$ 1.77 Billion) in the financial year 2010-11 (FY11). The Groups
PAT for Q4 FY12 was Rs 433 crores (US$85 Million) compared to a loss of Rs. 603 crores
(US$118 Million) in Q3 FY12 and a profit of Rs. 4,176 crores (US$821 Million) in Q4
FY11.
Group EBITDA in FY12 was Rs. 13,533 crores (US$2.66 Billion) compared to Rs. 17,116
crores (US$3.35 Billion) in FY11. Group EBITDA in Q4 FY12 was Rs. 3,419 crores
(US$672 Million) compared to Rs. 2,023 Crores (US$398 Million) in Q3 FY12 and Rs.
4,782 crores (US$940 Million) in Q4 FY11.
Group consolidated turnover of Rs. 1, 32,900 Crores (US$26.13 Billion) in FY12 was
11.9% higher than the turnover of Rs. 1, 18,753 crores (US$ 23.34 Billion) in FY11. The
consolidated turnover of Rs. 33,999 crores (US$ 6.68 Billion) in Q4 FY12 was up by 2.7%
from Rs. 33,103 crores (US$6.51 Billion) in Q3 FY12 and by 0.55 from Rs. 33,824 crores
(US$6.65 Billion) in Q4 FY11.
The Groups Steel deliveries in FY12 fell marginally by 1.1% to 24.22 Million Tonnes
compared to 24.50 Million Tonnes in FY11. Q4 FY12 steel deliveries fell by 6.5% to 6.22
Million Tonnes compared to 6.65 Million Tonnes in Q4 FY11, but rose by 6.5% from 5.84
Million Tonnes in Q3 FY12.

105 | P a g e

 Net debt at the end of March 2012 increased slightly to Rs. 47,697 crores (US$ 9.38 Billion)
compared to Rs. 46,660 crores (US$9.17 Billion) at the end of March 2011.
Turnover at Tata Steel India in FY12 increased by 15.4 % to Rs. 33,933 Crores (US$6.67
Billion) from Rs. 29,396 crores (US$ 5.78 Billion) in FY11. Q4 FY12 sales of Rs. 9,479
crores (US$1.86 Billion) were up 13.7% from the Rs. 8,341 crores (US$1.64 Billion) of Q4
FY11 and up 13.1% from the Rs. 8,382 crores (US$1.65 Billion) of Q3 FY12.
Turnover in Tata Steel Europe in FY12 increased to Rs. 82,153 crores (US$16.15 Billion)
from Rs. 73,844 crores (US$14.52 Billion) in FY11. Q4 FY12 sales were Rs. 19,923 crores
(US$3.92 Billion) compared to Rs. 21,488 crores (US$4.22 Billion) in Q4 FY11 and Rs.
20,535 crores (US$ 4.04 Billion) in Q3 FY12. FY12 sales increased by 3.7% over FY11 as
per Tata Steel Europes reporting currency.
The Board of Directors of the Company has recommended a dividend of RS. 12 per equity
share for the financial year ended March 2012.
FINANCIALS OF JSW STEEL

Q4 FY12

PARTICULARS
Crude
Steel
Growth (YoY)

12

FY12

Production 26%

16%

Saleable Steel Sales Growth 33%

(YoY)

28%

Net Sales Growth (YoY)

35%

39%

Operating EBITDA (Crores)

1,652

5,631

PAT (Crores)

752

1,626

Net Total Debt gearing

0.69

Crude Steel Production in FY12 and Q4 FY12 was 7.43 Million Tonnes and 2.07 Million Tonnes
respectively. Similarly Sales volume in Fy12 and Q4 FY12 was 7.82 Million Tonnes and 2.31
Million Tonnes respectively.
Results for FY12, which signifiy as follows:
The Companys Gross Sales rose by 42 % to Rs. 36,720 crores as compared to FY11
106 | P a g e

 Net Sales increased by 43% to Rs. 34,124 crores as compared to FY11

Gross Sales increased by 40% to Rs. 10.930 crores compared to Q4 FY11
Net Sales increased by 41% to Rs. 10,153 crores as compared to Q4 FY11
Operating EBITDA for FY12 was Rs. 6102 crores and for Q4 FY12 is Rs. 1,887 crores
Dip in Net Profit by 19.13% over FY11 due to accounting of proportional losses of associate
Company viz. JSW Ispat Steel Limited around Rs. 1930 Crore.
Dip in EPS by 19.14 % over FY11 due to decrease in net profit
The Companys consolidated net debt gearing as on 31.03.2012 improved to 0.98 against
1.08 as on 31.12.2011
Dividend of Rs. 1 per share on 27, 90, 34,907 10% Cumulative Redeemable Preference
Shares (CRPS) of Rs. 10 each, for the year ended 31.03.2012 subject to approval of the
Members at the ensuing Annual general Meeting
The Board has, further, recommended dividend at Rs. 7.50 per equity share on the 22, 31,
17,200 equity shares of Rs. 10 each for the year ended 31.03.2012, subject to the approval of
the Members at the ensuing Annual General Meeting.
FINANCIALS OF L&T

13

Results for FY12, which signifiy as follows:

Gross Revenue for FY12 at Rs. 64,960 crore registered a growth of 23.8% over the previous
year.
Consolidated Group PAT for the year FY12 stood at Rs. 4649 crore recording an increase
of 20.1% over the previous year.
Order inflow for the year at Rs. 70,574 crore took the Companys Order Book to Rs. 1,
45,723 crore as on March 31, 2012.
Increase in EPS over FY11
The Board of Directors has recommended a Dividend of Rs. 16.50 per equity share.
The Company was able to garner sizeable new orders mainly from Building & Factories,
Infrastructure, Power Transmission & Distribution and Minerals & Metals sectors.
107 | P a g e

FINANCIALS OF BHEL

14

Results for FY12, which signifiy as follows:

Highest ever turnover of Rs. 49,301 Crore, registering a growth of 19.4% over the previous
year. PBT surged 17.8% at Rs. 10,001 Crore, during the year, compared to Rs. 8,487 Crore in
the year before
PAT rose by 21.2% at Rs. 6,868 Crore against Rs. 5,665 Crore in the previous year. During
the year highest ever interim equity dividend of 136% was paid for 2011-12, maintaining the
track record of paying dividends uninterruptedly since 1976-77.
EPS stood at Rs. 28.06 an increase of 21.2% over that of 2010-11.
Net Asset Value per share stood at Rs. 101.9 reflecting the intrinsic strength of the company
Total export turnover (Physical + Deemed) touched Rs. 22,014 Crore
TECHNICAL ANALYSIS
Bollinger Bands:
Bollinger Bands is a versatile tool combining moving averages and standard deviations and is one of
the most popular technical analysis tools available for traders. There are three components to the
Bollinger Band Indicator:
Moving Average: By default, a 20-period simple moving average is used.
Upper Band: The Upper Band is usually 2 standard deviation above the moving average
Lower Band: The Lower Band is usually 2 standard deviations below the moving average
There are three main methodologies for using Bollinger Bands:
Playing the Bands
Bollinger Band Breakouts
Option Volatility Strategies

108 | P a g e

Playing the Bands

Playing the bands is based on the premise that the vast majority of all closing process should be
between the Bollinger Bands. That stated, then a stocks price going outside the Bollinger Bands,
which occurs very rarely, should not last and should revert back to the mean, which generally
means the 20-period simple moving average.
Buy Signal
A trader buys or buys to cover when the price has fallen below the lower Bollinger Band.
Sell Signal
The sell or buy to cover exit is initiated when the stock, future, or currency price pierces outside
the Upper Bollinger Band.
Bollinger Band Breakouts
Bollinger Band Breakouts occur after a period of consolidation, when price closes outside of the
Bollinger Bands. Other indicators such as support and resistance lines can prove beneficial when
deciding whether or not to buy or sell in the direction of the breakout.
Bollinger Band Breakout through Resistance Buy Signal
Price breaks above the upper Bollinger Band after a period of price consolidation.
109 | P a g e

Bollinger Band Breakout through Support Sell Signal

Price breaks below the lower Bollinger Band.
Option Volatility Strategy
There are two basic ways to trade volatility:
i) Buy options with low volatility in hopes that volatility will increase and then sell back
those options at a higher price
ii) Sell options with high volatility in hopes that volatility will decrease and then buy back
those same options at cheaper price
Candle Stick
A candlestick chart is a style of bar-chart used primarily to describe price movements of a security,
derivative, or currency over time.
It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price
movement over a given time interval. It is most often used in technical analysis of equity and
currency price patterns.
The hollow or filled portion of the candlestick is called the body (also referred to as the real
body). The long thin lines above and below the body represent the high/low range and are called

110 | P a g e

shadows (also referred to as wicks and tails). The high is marked by the top of the other
shadow and low by the bottom of the lower shadow.
If the stock closes higher than its opening price, a hollow candlestick is drawn with the bottom of the
body represents the opening price and the top of the body representing the closing price.
If the stock closes lower than its opening price, a filled candlestick is drawn with the top of the body
representing the opening price and the bottom of the body representing the closing price.

The main behavior levels could be found here:

Buy: - The candle is white, positive. There are much more buying pressure in specified
period and it moved price up. Buyers were in charge and it can confirm broader positive
situation.
Sell: - The candle is black, negative. Selling was in action and they pushed price down. It
could confirm negative chart situation.

111 | P a g e

NIFTY CHART

TECHNICAL ANALYSIS OF DIFFERENT COMPANIES

Technical Analysis of NTPC
Bollinger Chart
The graph shows the market trend of NTPC stock price for last seven month (Nov11 May12).
The graph shows the upper band, stock fluctuation line, moving average line and lower band for the
stock of NTPC. The green line in the top shows the upper band and red line at the bottom side shows
the lower band. When the price of the stock touches the upper band, the stock is said to be
overbought and there is some good news in the market. When the price of the stock touches the
lower band, the stock is said to be oversold and there is some bad news in the market.
For example, 4th Nov11 the stock price was 179.92 and after that stock had started falling upto
155.45 still 22nd Nov11 and that point of time NIFTY was also not doing well. From 8th Nov11
21st Nov11 the NIFTY was also showing downtrend (5289.35 4778.35). 17th Feb12 NTPC stock
price had crossed the upper bollinger band and the stock price set a high (187.96) within these 7
months. From 7th Feb12 17th Feb12 the stock was showing uptrend and there was huge buying
112 | P a g e

pressure. On that time NIFTY market was also in uptrend (5564.30). As in 17th February the stock
had crossed the upper band line so, it is the best time for the investors to sell the stock. So, they had
started of selling their stock.

Source: sharekhan ltd

The stock was also moving with the moving average line but in the month of Nov11 it had came
down side to the moving average due to market performance of NIFTY was not good. At that time
everyone was in selling mood.
The resistance level for NTPC is 187.96, 179.32, 175.75 and support level is 154.74, 140.88.
In 22nd Nov11 the stock reaches the support level so; it was the best time to buy and after 22 nd
Nov11 stock had started rising.

113 | P a g e

In the month of Nov11 & Dec11 the market was volatile so the Bollinger Band width was wide and
from Jan12 the width reduced as the market was in uptrend. But after that the width had increased
due to fluctuation in Stock market. But last week of April12 the width reduced due to market got the
news of different annual performance report of the companies.
But from 30th April12 towards the stock had started declining due to global economy problem and
rupee depreciation and the stock had reached to 141.05 on 16th May12 and 23rd May12. After that it
had started rising. So, it is the best time to buy the NTPC stock to get good return in future.
Candle Stick

Source: Sharekhan Ltd.

From the above graph we can say that the stock was showing down trend from 8th Nov11 22nd
Nov11 as it is showing red and the selling pressure was high. In this time NIFTY market was not
performing well. But in 23rd Nov11 the candle stick is showing hammer that means long declination
114 | P a g e

period is over and it is time for reversal. After a long declination it is a bullish reversal. But 24th
Nov11 29th Nov11 there was not much participation between buyers and sellers. But after that
candle stick is showing that buy was very high upto 5th Dec11 and in this point of time NIFTY
market was also good. It had reached one resistance level so after that again there is time for selling.
On 20th Dec11 the stock had reached to support level so now its again time for buying. But at that
time market was not volatile and little bit steady so there was no that much of movement of stock
(buying and selling) upto 5th Jan12. On 6th Jan12 candle stick shows the hammer formation that
means its a bullish signal for the market. On 11th Jan the stock was traded highest in volume within
these seven months. Up to 23rd Jan12 market has shown the bullish trend and it touches the
resistance level. So, again the stock came little bit down the trend continue up to 30th Jan12. Up to
2nd Feb12 market was flat and stock movement was not that much. It had reached to another support
level (169.94). So, now again stock had shown the uptrend and there was huge buying pressure on 2nd
Feb12 and up to 17th Feb12. The stock had reached its highest value (187.96) on that day. Now this
is the time to book profit for the investors. So, shareholders had started selling of their stocks. Up to
7th March12 the stock had shown the declining trend and there was pressure in selling. On 7th
March12 the stock had reached the support level (169.94). So, now again this is the time for buyers
to buy the shares. Up to 15th March12 the stock had shown the uptrend. It had touched another
resistance level (179.32). On 16th March12 onwards the stock had started declining. From mid of
March12 to 3rd week of April market was steady so there is not that much of movement of stock
between buyers and sellers. From April last week onwards due to market volatility, global economic
condition the stock had started declining and on 16th May12 the stock had touched the lowest
support level of 140.88. So, this was time to buy the stock. From 23rd May12 onwards the stock had
started increasing. So, this is the time buy NTPC stock and gets good return in future.
Technical Analysis of Tata Power
Bollinger Chart
The graph shows the market trend of Tata Power stock price for last seven month (Nov11
May12). The graph shows the upper band, stock fluctuation line, moving average line and lower
band for the stock of Tata Power. The green line in the top shows the upper band and red line at the
bottom side shows the lower band. When the price of the stock touches the upper band, the stock is
said to be overbought and there is some good news in the market. When the price of the stock touches
the lower band, the stock is said to be oversold and there is some bad news in the market.
Initially Tata Power stock was trading at 900-1400 range. But 26th Sep11 Tata Power Management
had split their share at 1:10. They split the equity share of Rs. 10 each into equity shares of Rs. 1
each.
115 | P a g e

Source: sharekhan Ltd.

Now Tata Power is trading between 80 120 range. After the spliting of share Tata Power share was
showing downtrend and it was moving along with the moving average line. In 20th Dec11 the share
price touched lowest support level of 80.94 which is far below the lower band line because NIFTY
market was not performing well at that time. So, this was the time for buying the stock. The stock
started rising and cross the moving average line on 22nd Dec11. From 2nd Jan12 onwards the stock
was showing uptrend 17th Feb12 and it touches the resistance level of 118.64 which was greater than
the upper band. This was the time to book the profit. So, the shareholders had started selling and 27th
Feb12 it touched the support level of 109.79 and again it had started rising as the buyers again
started buying and up to 1st March12 stock uptrend was there. From 3rd March12 28th March12 it
was in downtrend and it had reached one support level of 95.36. From 29th March12 19th April
stock was showing slightly uptrend but NIFTY market was less volatile. From 20th April12 30th
April12 the stock was stock was trading very less. After 30th April12 the stock started falling due to
116 | P a g e

global economic scenario, rupee fall and NIFTY market fall. This trend was continue up to 25 th
May12 and the price of the stock was below moving average line. From 26th May12 onwards the
stock again started rising and cross the moving average line. So, this is the time for invest in Tata
Power stock and get good return in near future.
Candle Stick

Source: Sharekhan Ltd.

From the above graph we can say that the in the month of Nov11 the stock was showing downtrend
as the NIFTY was not performing well at that time and the selling pressure was high to stop further
loss. Then 2nd Dec11 8th Dec11 the stock was showing some trend of rising but it was very little
as there is little participation between buyers and sellers. From 9th Dec11 20th Dec11 there was
huge selling pressure and the stock had reached support level of 80.30 which is all time low. So, now
this was the time for buying the stock. From 21st Dec11 people had started buying of stock but the
117 | P a g e

participation was less though NIFTY was performing well. From 2nd Jan12 onwards the candle stick
is showing uptrend and upto 17th Feb12 it had almost shown the continuous uptrend but the market
participation of buyers and sellers not that much. From 15th Feb12 17th Feb12 the buying pressure
was very high. On 17th Feb12 it had touched the highest price. Now, this was the time for selling and
book the profit before Budget 2012-13. 20 & 22nd Feb12 the selling pressure was there and it had
crossed one support level of 111.71. So, again there will be buying. 23-24th Feb12 there was buying
but in less volume as the market was volatile. 27th Feb12 again selling pressure and cross the support
level of 111.71. 28th Feb12 1st March12 there was buying pressure of stock. From 5th March12
onwards again there was selling pressure of stock and upto 28th March the stock was downwards
trend as the NIFTY market was also not performing well. From 28th March12 20th April12 the
stock had shown uptrend that there is a particiaption between buyers and sellers and the volume is
less. From 2nd May12 22nd May12 the stock is showing due to NIFTY market, global economic
problem, rupee fall etc and the stock was performing below moving average line. So, from 23rd
May12 onwards it had started rising and there is buying tendency and 28th May12 the stock had
crossed the moving average line. So, it is the time to invest in Tata Power stock and get good return
in future.
Technical Analysis of Tata Steel
Bollinger Chart
The graph shows the market trend of Tata Steel stock price for last seven month (Nov11 May12).
The graph shows the upper band, stock fluctuation line, moving average line and lower band for the
stock of Tata Steel. The green line in the top shows the upper band and red line at the bottom side
shows the lower band. When the price of the stock touches the upper band, the stock is said to be
overbought and there is some good news in the market. When the price of the stock touches the
lower band, the stock is said to be oversold and there is some bad news in the market.
From the graph we can say that from 8th Nov11 -15th Nov11 the graph is showing down trend and
it touches the lower band. Next day it was increased little bit and again from 17th 21st Nov11
downtrend and we can say that upto 25th Nov11 the graph had shown the down trend and also stock
price was below moving average line. It was due to volatility in the NIFTY market. From 28 th
Nov11 6th Dec11 it had shown some rising in stock price but volume was not that much. From 7th
Dec11 30th Dec 11 it had shown the downwards trend. In 19th Dec11 the stock price had crossed
the lower band also. In 20th Dec11 stock slightly increased. But after that again went down. In 30th
Dec stock had reached the lowest support level of 334.00. So, it was the time for buying the stock.
So, from 2nd Jan12 2nd Feb12 the stock had shown the increasing trend as NIFTY was doing well.

118 | P a g e

Source: Sharekhan Ltd.

From 2nd Feb12 8th Feb12 the stock had reduced slightly and touched the moving average line.
But after that again it had started rising and on 15th Feb12 the stock had reched the highest resistance
level of 494.75 and after that stock was fluctuating and bollinger band also narrow down but the
trading volume was not that much. In the end of April12 the bollinger band gap width reduced to
minimum level. This shows that the stock is steady now. But after 28th April12 the stock had fallen
down again due to NIFTY fall, World stock market fall, Global Economic fall and rupee fall.
Candle Stick
From the graph we can say that from 9th Nov12 onwards the stock had started declining and the
trend was upto 25th Nov11 as the selling pressure was high to stop loss. From 28th Nov12 2nd
Dec11 there was buying pressure but it was very little. From 7th Dec11 30th Dec11 the stock had
119 | P a g e

shown declining trend and it had reached lower support level of 333.97. This is the time to buy the
stock. From 2nd Jan12 1st Feb12 there was huge buying pressure and the stock had shown uptrend.
After that again selling pressure for few days and finally on 10th Feb12 market participants buy the
highest volume of stock and 21st Feb12 the stock had reached the final resistance value of 501.59
highest within 7 month. This is the time to book the profit and sell the stock. From 22nd Feb12 6th
March12, the stock had started declining and showing down trend due to selling pressure. After that
the buying and selling participation in the market for this stock was not much. But after 2nd May12
the selling pressure started increasing as the market condition was volatile and it was up to 22 nd
May12. After that again the buying pressure started incraesing. But for last three days again the
stock had strted declining.

Source: Sharekhan Ltd.

120 | P a g e

Technical Analysis of JSW Steel

Bollinger Chart
The graph shows the market trend of JSW Steel stock price for last seven month (Nov11 May12).
The graph shows the upper band, stock fluctuation line, moving average line and lower band for the
stock of JSW Steel. The green line in the top shows the upper band and red line at the bottom side
shows the lower band. When the price of the stock touches the upper band, the stock is said to be
overbought and there is some good news in the market. When the price of the stock touches the
lower band, the stock is said to be oversold and there is some bad news in the market.

From 2nd Nov11 04th Nov11 the stock had shown the uptrend and touched the uper trend line and
after that the stock had shown downtrend. From 9th Nov11 23rd Nov11 the stock was operating
below moving average line. After that the stock had again started risisng and crossed moving average
121 | P a g e

line on 28th Nov11 and upto 7th Dec11 the stock was operating just above the moving average line.
On 8th Dec11 onwards the stock had started declining and crossed the moving average line and was
operating below moving average line and up to 20th Dec11. On 20th Dec11 the stock had touched
the lowest support level of 470.14. This was the best time for buying this stock and from 21st Dec11
onwards the stock had strated rising and cross the moving average line and up to 30th Dec11 the
stock was working along with the moving average line. From 2nd Jan12 15th Feb12 the stock had
shown the uptrend. Within this time the stock had touched the upper trend line twice. On 15 th Feb12
the stock had reached the resistance level of 868.53. this is the best time for selling and book the
profit for the investors. From 21st Feb12 11th April12 the stock was declining and fluctuating very
much and stock was operating below moving average line. From 12th April12 19th April12 the
stock was showing uptrend and 13th April11 the highest volume stock was traded in the market.
After that up to 4th May11 again stock had shown the decline trend. From 7th May12 25th May12
the stock had shown the downtrend. After that again started rising. So, this is the time to invest in the
stock.
Candle Stick
From the graph we can say that from 8th Nov11 23rd Nov11 selling pressure was there to stop loss.
it was due to market condition. From 24th Nov11 5th Dec11 there was increase in trend due to
buying pressure. From 8th Dec11 20th Dec11 the stock had declined due to selling pressure and the
stock had reached the lower support level of 470.14. This is the time to buy a stock. From 2 nd Jan12
15th Feb12 the stock had increased due to huge buying pressure and the NIFTY market was also
performing well at that time.
On 15th Feb12 the stock had reached the resistance level of 868.53. this is the best time for selling
and book the profit. Then from 17th Feb12 10th April12 the stock was showing downtrend due to
huge selling pressure and the stock was operating below moving average line and the stock was
fluctuating. After 10th April12 the stock had shown the uptrend and 13th April12 it had shown the
highest volume market operation and up to 17th April12 the stock had shown the uptrend due to
buying pressure. From 20th April12 23rd May12 the graph had shown the downtrend and
fluctuating due to selling pressure and the stock was operating below moving average line. After that
again there was a uptrend in the stock due to hammer shown in the candle stick after a long
declination. So, this is the right time to invest in this stock.

122 | P a g e

Technical Analysis of L&T

Bollinger Chart
The graph shows the market trend of L&T stock price for last seven month (Nov11 May12). The
graph shows the upper band, stock fluctuation line, moving average line and lower band for the stock
of L&T. The green line in the top shows the upper band and red line at the bottom side shows the
lower band. When the price of the stock touches the upper band, the stock is said to be overbought
and there is some good news in the market. When the price of the stock touches the lower band, the
stock is said to be oversold and there is some bad news in the market.
From 8th Nov 23rd Nov11 the graph had shown the downtrend of the stock. The stock was
operating below moving average line and also crossed lower band line. This happened due to market
condition. From 24th Nov11 7th Dec11 the stock had shown the rising trend and it was operating
just above the moving average line. From 8th Dec11 20th Dec11 the stock had shown the
declination and it was operating with lower lower band line. On 2oth Dec11 the stock had reached
the support level of 980.97 and it is the right time to buy the stock. From 20th Dec11 28th Dec11
the stock was showing uptrend but still it was operating below the moving average line.
123 | P a g e

From 28th Dec11 30th Dec11 again shown the declination. But from 2nd Jan12 - 9th Feb12 the
stock had shown the uptrend. After that up to 12th Feb it had declined. From 13th Feb12 it had started
increasing again and 15th Feb12 it had reached the resistance level of 1458.76 and it had crossed the
upper band. This is the best time to sell the stock and book the profit. From 16th Feb12 6th Mar12
the stock had shown downtrend and it was operating below movng average line. From 7th Mar12
14th March12 the stock was showing uptrend and the that the stock was fluctuating not that much. It
was moving with the moving average line. This trend was from 15th Mar12 19th Apr12. From 20th
Apr12 11th May12 the stock had shown the downtrend and it was operating below the moving
average line due to adverse global market condition. After that the stock price again shown
fluctuation with the moving average line and this condition is due to present global market and indian
stock market scenareo.
Candle Stick
124 | P a g e

From the graph we can say that from 8th Nov11 23rd Nov11 the stock had shown the decline trend
due to huge selling pressure to stop loss. It was due to market condition. From 23 rd Nov11 7th
Dec11 the stock had shown uptrend due to buying pressure. After that from 8th Dec11 20th Dec11
the stock had shown downtrend and it was below moving average line. This was due to huge selling
pressure. On 20th Dec11 the stock had reached it lowest support level of 980.97. So, it was the best
time to buy the stock. There was increase in buying pressure but volume was very less. So, up to 30 th
Dec11 the stock price movement was not that much. But from 2nd Jan12 15th Feb12 the stock had
shown the uptrend due to huge buying pressure. On 15th Feb12 the stock had reached the highest
resistance level of 1458.76. This is the best time to sell the stock and book the profit. From 17 th
Feb12 6th Mar12 the stock had shown declination due to high selling pressure and the stock was
also operating below the moving average line. Here it shows the hammer formation that means the
bullish period. After that the stock had started rising and buying pressutre also. From 15th Mar12
18th April there was not that much of participation of buyers and traders so, the stock movement was
along with the moving average line. But after that the stock had started declining due to huge selling
pressure. It was up to 11th May12. After that on 14th May12 the stock had traded of highest volume.
After that the stock was fluctuating in nature and it was fluctuating with the moving average line.

125 | P a g e

Technical Analysis of BHEL

Bollinger Chart
The graph shows the market trend of BHEL stock price for last seven month (Nov11 May12).
The graph shows the upper band, stock fluctuation line, moving average line and lower band for the
stock of BHEL. The green line in the top shows the upper band and red line at the bottom side shows
the lower band. When the price of the stock touches the upper band, the stock is said to be
overbought and there is some good news in the market. When the price of the stock touches the
lower band, the stock is said to be oversold and there is some bad news in the market.

Initially BHEL stock was trading at 1600 -2200 range. But 30th Sep11 BHELs Management had
split their share at 2:10. Now BHEL stock had traded between 200-350 range. After share split BHEL
stock perform along with the moving average line. From 8th Nov11 23rd Nov11 had shown the
declining trend and it was operating below the moving average line. After that the stock had started
rising and up to 29th Nov11 the stock was showing up trend and then again little bit down and again
126 | P a g e

uptrend upto 5th Dec11. After that in the month of Dec11 the trend was downtrend. After that in the
month of Jan12 the trend was uptrend but it was fluctuating along with moving average line. From
25th Jan12- 30th Jan12 the stock had shown downtrend. From 31st Jan12 6th Feb12 the stock was
showing uptrend. After that again fluctuation little bit for 2-3 days. Then from 10th Feb12 it had
started rising and 17th Feb12 the stock was traded highest by volume and the uptrend was continue
upto 21st Feb12. After that the stock had started declining. From 24th Feb12 onwards the stock is
showing fluctuating trend and it is showing fluctuation along with the moving average line. In 18th
May12 it had reached its lowest support level of 199.76. So, it is the best time for investment in this
stockto get long term benefit.
Candle Stick

From the graph we can say that 9th Nov11 23rd Nov11 the stock had shown down trend due to
high selling pressure. From 24th Nov11 30th Nov11 the stock had shown buying pressure. From 7th
127 | P a g e

Dec11 21st Dec11 the stock had shown down trend due to high selling pressure. In the month of
Jan12 the stock had shown uptrend due to high buying pressure. 24th Jan12 30th Jan12 had shown
downtrend due to selling pressure. 31st Jan12 21st Feb12 the stock further shown the uptrend due
to high buying pressure. From 22nd Feb12 6th March12 the stock had shown the downtrend due to
selling pressure again after that little high in stock price. From 14th March12 29th March12 the
stock had shown downtrend due to huge selling pressure. From 30th Mar12 4th Apr12 the stock
shown again some uptrend due to buying pressure. From then onwards up to 18th May12 the stock
had shown downtrend due to huge selling pressure and it had reached the lower level of seven month.
So, it is the best time for the investors to invest in the company.
PEER COMPANY EVALUATION
Peer Company Status for Power Sector
Few power company status as on 1st june12 are as follows:

Competition
Name

NTPC
Power Grid Corp
Reliance Power
NHPC
Tata Power
Neyveli Lignite
Reliance Infra
Adani Power
Jaiprakash Pow
Torrent Power
SJVN
JSW Energy
CESC
IndiaBPower
KSK Energy Vent
GVK Power
Schneider Elect

Last
Price

Sales

(Rs. cr.)

Turnover

Net
Profit

Total
Assets

145.1 119,641.69 62,053.58 9,223.73 111,572.36

103.65 47,987.10 10,035.33 3,254.95 62,092.11
89.15 25,007.70
66.12
310.86 17,450.60
18.1 22,264.34 5,654.69 2,771.77 39,153.15
93.1 22,093.30 8,495.84 1,169.73 18,229.27
82.4 13,824.33 4,866.85 1,411.33 15,178.57
430.2 11,313.83 17,906.67 2,000.26 21,636.80
45.65
9,951.86 3,948.90 -293.92 23,668.77
36.75
9,645.98 1,615.56
402.95 17,551.83
195.6
9,241.09 7,917.82 1,237.46
7,846.63
18.75
7,756.17 1,927.50 1,068.68
8,959.44
42.1
6,904.63 5,016.42
234.64 11,494.45
266.15
3,353.49 4,669.00
565
8,585.82
12.05
2,683.92
1.15
52.42
4,829.01
51
1,900.42
67.52
0.54
3,559.82
11.7
1,847.68
27.6
-8.27
2,635.13
76.5
1,829.15 1,353.50
39.76
0.08

Source: www.moneycontrol.com
128 | P a g e

Market
Cap.

Peer Company Status for Steel Sector

Few steel company status as on 1st June12 are as follows:

Competition
Name

Tata Steel
SAIL
JSW Steel
Visa Steel

Last
Price

Market
Cap.

Sales

(Rs. cr.)

Turnover

Net
Profit

Total
Assets

397.9 38,644.62 33,933.46 6,696.42 76,745.77

91.4 37,753.00 46,341.79 3,542.72 57,234.96
600.45 13,397.07 32,122.66 1,625.86 29,176.61
50.95
560.45 1,365.91 -118.85 1,761.41

Source: www.moneycontrol.com
Peer Company Status for Infrastructure
Few infrastructure company status as on 1st June12 are as follows:

Competition
Name

Larsen
BHEL
Alfa Laval
AIA Engineering
Suzlon Energy
BGR Energy
BEML
Triveni Turbine
TD Power System
Praj Industries
Tecpro Systems
Elecon Eng
Sanghvi Movers
TRF
Action Const
129 | P a g e

Last
Price

Market
Cap.

Sales

(Rs. cr.)

Turnover

Net
Profit

Total
Assets

1,134.90 69,544.34 53,170.52 4,456.50 29,007.37

206.85 50,628.61 47,978.89 7,039.96 20,317.19
3,946.95 7,167.85 1,154.17
130.54
489.67
363.45 3,428.07 1,272.56
150.91
842.24
17.55 3,119.28 6,871.21 -505.38 13,471.81
276.55 1,995.63 3,447.05
223.52 2,286.09
417.4 1,738.24 2,726.49
57.25 2,956.17
42 1,385.50
631.88
91.08
91.06
296.8
986.49
625.21
49.82
263.08
54.2
986.17
880.86
65.82
558.94
154.6
780.32 2,529.66
124.93 1,425.21
53.4
495.88 1,331.67
69.6
924.94
106.6
461.45
450.47
101.77 1,180.09
252.35
277.7
802.31
15.58
404.5
28.1
261.01
856.13
30.85
338.94

Shriram EPC
Walchandnagar
TIL
Gujarat Apollo
Kabra Extrusion
Eimco Elecon
Windsor
UB Engineering

58.2
67.1
233.85
126.15
32.05
168.5
12.6
33.05

258.08
255.45
234.56
209.09
102.25
97.2
81.81
56.41

1,382.20
963.23
238.23
216.06
192
178.47
229.56
532.44

25.51
12.8
52.98
16.77
10.01
20.33
15.44
3.15

1,700.20
562.51
266.44
196.62
114.36
139.9
20.28
218.49

Source: www.moneycontrol.com
CONCLUSION & RECOMMENDATION
Power Sector
NTPC
From Company analysis we can conclude that
Company has lots of prospects in near future
Company has diversified portfolio
Company is recognized every where
Company has Navratna Status
High Brand equity among stakeholders
It is a good company and as it is Govt. Company it will give guaranted return in future. So,
investors should invest in this company
From Financial Result
Highest ever turnover Rs. 64,832 Crore ( 9.43% up over previous year )
Highest ever net profit
It is a profitable company. So, investors should invest in this company.
From Technical Analysis
The stock had perform along with the moving average line.
The stock had performed well.
130 | P a g e

It is a good Company and profitable one. So, Govt. as well as general public should invest in this
stock to get good returns in future.
From Peer Company Evaluation
NTPC is the dominant and leading company in the power sector.
Highest Market Cap. Of Rs. 119, 641.69 Crore
Highest Sales Turnover of Rs. 62, 053.58 Crore
Highest Net Profit of Rs. 9, 223.73 Crore
Highest Total Asset Rs. 111, 572.36 Crore
It is a good company and profitable one in Power sector. So, investors money will be secured.
Investor should invest in this company to get good return on future term.
TATA POWER
From Company Analysis
Company has lots of prospects in near future
Company has diversified portfolio
High Brand equity among stakeholders
Excellent track record of performance in project implementation and plant operations
It is a good company for investment and to get good return.
From Financial
Highest ever Turnover
It is a profitable company and good option for investment for investors.
From Teechnical Analysis
Before stock split the firm had high share value range. But after the split the firms stock
also performed well
The stock was moving along with the moving average line
131 | P a g e

 From last week of May12 the stock also showing uptrend and this is the time for
investment.
It is a good and value driven company and also good for investment and get good return on
future.
From Peer Company Evaluation
According to Market Cap. The company position is 5th.
Sales turnover also good
Net profit also good
Total asset value also good.
It is a good company to invest and get decent return.
Steel Sector
TATA STEEL
From Company Analysis
High Brand Value Company
Excellent corporate governance
High Mineral Reserves
Company with massive expansion project
So, it is a value driven company and good for investment.
From Financials
Increased in turnover more than 15% in FY12 over FY11
Growth in sales
Dividend to shareholders
It is a profitable company and continuous dividend payed company. So, it is a good company for
investment.
132 | P a g e

 From Technical Analysis

The stock movement along with the moving average line and maximum time its above the
average line.
It is good for the company and as it is operating maximum time aove the average line so the
company was doing well. So, its a good option for investors to invest and get good return
From Peer Company Evaluation
It is is the leading and dominant company in the steel sector
Highest Market Cap. Of Rs. 38,644 Crore in steel sector
Highest net profit compare to competitors
Highest total asset compare to others
It is a good company to invest and get decent return
JSW STEEL
From Company Analysis
Indias largest private steel maker
Lots of Project in future
Strong International Presence
Highly technology driven
Per Employee Productivity is comparable to International Standards
It is good, highly technology driven company. So, it is good option for investment for investors.
From Financials
Highest steel production in FY12
Growth in sales year on year basis
Dividend for shareholders
It shows that Company is doing well and it is good option for investment
133 | P a g e

 From Technical Analysis

The stock is volatile in nature
But the stock will give return in future as lots of projects are in pipeline. So, it is good opetion
for investors for investment.
From Peer Company Evaluation
As per Market Cap. It is in 3rd no. among the steel sectors
Good sales turnover over other competitors
As per total assets value it is also in 3rd position
So, it is a good option for investors to invest in the stock and get good return in the future.
Infrastructure Sector
L&T
From Company Analysis
High diversified portfolio
Strong International Presence
Excellent R&D facility, Front End Engineering
Leading conglomerate in Infrastructure
So, it is a good option for investors and to get good return in future
From Financial
Increase in revenue over year on year basis
Increased in EPS
Increase in Order book in FY12
Declaration of Dividend.
This means that company is doing well and it is good for investors. Investors should invest in the
company.
134 | P a g e

 From Technical Analysis

It shows that the stock moves along with the moving average line
Overall trend of the stock is uptrend but some times it had shown downtrend due to
overall market condition of India and abroad
So, it is a good option for investors to invest in the stock and get a decent return in future time.
From Peer Company Evaluation
It is one of the leading conglomerate and dominant firm in the manufacturing industry
As per Market Cap. It is the leading conglomerate
Highest sales over the other competitors
As per total assets value it has the highest over the competitors
So, it is a excellent stock and investors can invest in this stock.
BHEL
From Company Analysis
It has diversified portfolio
Huge project in pipeline
Highly skilled manpower
Huge prospects in Future
So, it is a good option for investment and to get decent return in future.
From Financials
Highest ever turnover in FY12
Increase in turnover year on year basis
Increase in EPS

135 | P a g e

 Increase in Dividend and record of providing dividend to its shareholders year on year
basis
So, it says that company is highly profitable company and it is a good options for the investors to
get an excellent return.
From Technical Analysis
Stock is fluctuating in nature due to market condition
But it is good stock. As the company has lots of project in pipeline so it will give good return in
future term.
From Peer Company Evaluation
According to Market Cap. It has Rs. 50,628.61 crore. It is in the 2nd position
According to the Sales turnover the stock is in second position
According to the Net profit it is in the 1st position
According the Total assets turnover value it is in the 2nd postion.
So, it is one of the conglomerate company in Infrastructure segment. It is good option for the
investment.

ON-JOB TRAINING AND LEARNING FROM SIP

Title - Working in Depository Participant
Introduction
Objective
Task Assigned
Achievements
Conclusion

INTRODUCTION
I have been done my summer internship in Sharekhan Limited to perform various activities
undertaken by an e-broking firm (Depository Participant).
136 | P a g e

OBJECTIVE
Sharekhan Ltd. performs as intermediary between stock exchange and clients. Various task
related to e-broking has been assigned to me.

The main objectives are as follows:

To understand various activities in E-Broking firm. (DP)
To get familiar with the working of online trading
To gain practical knowledge in share trading
To get an exposure

TASK ASSIGNED
Market observation
Customer acquisition
Technical Issues
Administrative Tasks
Customer follow-up

Market Observation:
It was the basic task assign during the SIP. While working with an E-broking firm it very
essential to be aware about the current market issues like current news, Current market position,
stock watch, global market condition, past trend of the market etc.
It was also imperative to target particular stocks & track their daily movements. By targeting &
tracking individual stocks & scripts, it helped me understand the various factors that lead to
stocks price movements. Also taking with clients during market hours helped me to understand
psychology of the client.

Customer Acquisition:
To acquire new customers for the company it was the task given to me.

Strategy in acquiring new customers

137 | P a g e

 Reference by existing customers

Lead by company guide
Tele calling (by lead data)
Cold calling

Technical Tasks:
Various technical tasks has been performed like, software downloading, to give software
demonstration to the clients, solving various problems of the clients regarding software handling
etc.

Administrative Task:
These were the secondary task given bellow, which has been performed during the training
period.
Completion of Account opening form
Collection of requires documents from existing clients
Margin funding form
To transfer shares

Customer follow-up:
Follow-up has been given to newly acquire as well as existing clients for various issues.
Trading for offline clients under the relationship managers guidance.
To give markets updates to newly acquire as well as existing clients in market duration,
etc.

Achievements:
Stock Market observation has been done during internship period.
8 new clients have been acquired
138 | P a g e

 Companies trading software has been downloaded.

Software demonstration has been given to newly acquire as well as existing clients.
Various administrative activities have been performed.
Follow-up to the customer has been given
Company generated brokerage from the newly acquired customer by me during the
period.
Offline customers orders have been taken in regular market schedule.

CONCLUSION
Learning experience:
In my summer training, I knew about the stock market and its nitty-gritty. And now I am quite
confident about equity knowledge. Although nobody can claim complete expertise but there is a
little bit change at least from our point of view. I have learnt what are the various indices and
their significance in market. I have learnt about various fundamentals and technical aspects,
which affect the stock prices in short run and long run.

Selling Experience:
Apart from this my specific task is to sell the Demat accounts. During this period across many
people who came from different walks of life. I learnt how to deal with them, how to persuade
them and guide them in trading.
Selling an online trading account requires special focus on targeting the customers. Each and
every person does not trade / invest in the stock market. Actually what I had to do was to identify
the prospect and then convince them.
As I met more and more people, I came to know more about how to talk to them, how much time
be given to each person met. Even, by solving the customer queries, my own understanding was
enhanced.
While selling the product in the market, I also came to know more about the competitors
product like, icicdirect.com, India bulls, karvy.com, edelweiss.com and their strategy of
marketing and the consumers preference towards about the competitors product.

139 | P a g e

After sells services like customer queries, how to make a transaction and how to get access to the
terminal etc. also attend.
So, it was all a very good learning experience for me.
But investors need to be cautious on the following risk factors
Quantitative and Qualitative Market Risk Factors for Investors
Commodity Price Risk
The proces of oil, in particular, crude oil and value-added products are linked to the international
prices of such products. Once the commodity prices increase it effects whole manufacturing
industry. Thus the revenues are exposed to the risk of fluctuation in prices in the international
markets.
Operating Risk
The company is exposed operating risk, including raw material supply risk, risk of loss of market
due to competitors entry, govt. policies and natural calamities risk in respect of all the installations
and facilities. But however the companies have insured their installation and facilities, which menas
that most replacement cost will be borne by the insurance company.
Exchange Rate Risk
The companies have substantial purchases of services and equipment in foreign currencies which are
traditionally denominated in U.S. Dollars. Thus the companies are exposed to risks relating to
exchange rate fluctuations. However, the risk involved in the required payments in foreign curencies
is offset to some degree by the revenues from sales of manufacturing industry products, which are
linked to the U.S. Dollar currency exchange rates and increase if the U.S dollar strengthens against
the Indian Rupee.
Interest Rate Risk
The interest rate risk results from changes in interest rates on foreign currency loans, which may
affect the financial expenses. Thus companies are exposed to interest rate risk on its earnings.

140 | P a g e

References
1. Growth Rate of India: http://www.tradingeconomics.com/india/gdp-growth-annual
2. FDI is Prohibited in: Department of Industrial Policy and Promotion Ministry Of
Commerce and Government of India Consolidated FDI Policy (Effective from April 10,
2012) by Anjali Prasad, Chapter-6, Sector Specific Conditions on FDI, Page No. 41
3. Steps Taken by Government: Government of India Ministry of Commerce & Industry
Department of Industrial Policy & Promotion (Manufacturing Policy Section), Press Note
No.2 (2011 Series) by Anjali Prasad, National Manufacturing Policy, Page No. 4
4. Introduction to Sharekhan: http://www.sharekhan.com/AboutUs/AboutUs.htm
5. Management: http://www.sharekhan.com/AboutUs/AboutUs.htm
6. Product and Services: http://www.sharekhan.com/AboutUs/AboutUs.htm
7. CompanyAnalysis:
http://www.google.co.in/imgres?q=company+analysis&hl=en&sa=X&biw=1366&bih=572&
tbm=isch&prmd=imvnsb&tbnid=qv6FfyI21aLZFM:&imgrefurl=http://www.finalyearproject.com/2011/07/company-analysis-in-sugar-sectorfor.html&docid=nHNl6hy5KC7MDM&imgurl=http://2.bp.blogspot.com/jhWtuUlBdvE/Tg71QPxRHUI/AAAAAAAACo4/eLHVSsDa7Sk/s1600/FYPCompany%25252BAnalysis%25252BIn%25252BSugar%25252BSector.jpg&w=586&h=55
6&ei=1P_LT_DfGY7NrQf_zJGaDg&zoom=1&iact=rc&dur=445&sig=10538833516001584
0509&page=3&tbnh=118&tbnw=123&start=52&ndsp=28&ved=1t:429,r:8,s:52,i:202&tx=5
1&ty=68
8. NTPC:
http://ntpc.co.in/index.php?option=com_content&view=article&id=42&Itemid=75&lang=en
9. NTPC Shareholding Pattern: http://money.rediff.com/companies/ntpc-ltd/15130025/shareholding
10. FINANCIALS OF TATA POWER: http://www.tatapower.com/media-corner/pressrelease2012/press-release-22may12.pdf
11. FINANCIALS OF TATA STEEL: http://www.tatasteel.com/investors/pdf/Q4-FY12-pressrelease.pdf

141 | P a g e

12. FINANCIALS
OF
JSW
http://jsw.in/media_zone/pdf/press_release_Q4_14_5_2012_final_after_dvnd.pdf

STEEL:

13. FINANCIALS
OF
L&T:
http://www.larsentoubro.com/lntcorporate/LnT_PRS/PDF/LTsAnnualResults2011-12.pdf
14. Financials of BHEL: BHEL_Performance Highlights 2011-12.pdf, Page No.4

142 | P a g e