TABLE OF CONTENTS

PAGE
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INTRODUCTION 3

1.1 COMPANY INTRODUCTION 4

1.2 PROJECT INTRODUCTION 8
1
1.3 INTRODUCTION OF STOCK MARKET 9
1.4 REVIEW OF MEDIA SECTOR 14
1.5 SCOPE OF STUDY 18

2 LITERATURE REVIEW 19

RESEARCH METHODOLOGY 25

3
3.1 TYPE OF RESEARCH 26
3.2 TOOLS FOR ANALYSIS 33

4 DATA ANALYSIS 35

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 PAGE
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OUTLOOK, INTERPRETATION AND CONCLUSION 46

5 5.1 OUTLOOK 47
5.2 INTERPRETATION 47
5.3 CONCLUSION 48

49
BIBLIOGRAPHY

6 6.1 NEWSPAPERS 50
6.2 WEBSITES 50

2
1. INTRODUCTION

3
1.1 Company introduction

AN OVERVIEW OF – FINANCEPLUS INDIA

MISSION:

To add value to our customers by implementing simple and efficient processes with high
employee engagement and effective communication

VISION:
To be the hub of financial support services

VALUES:
HELPING: anticipate the needs of each other and act on it

COMMITMENT: commit to work by creating authentic relationships and communication

CONTINUOUS LEARNING: cultivate potential through learning and innovating quality, for
efficient improvements

TRUST: being trustworthy and doing the right thing always

FLEXIBILITY: to be flexible as per customer and business requirements that are in line with
the WPP policy

ACCOUNTABILTY: being accountable and passionate comes straight from the heart and
should be included in everything you do

RESPECT: treat people with respect

TRANSPARENCY: eliminate bureaucracy and dare to be transparent by having the courage

to be completely candid and direct

4
COMPANY PROFILE–
Financeplus is WPP’s internal Financial Shared Service organisation, providing transactional
back-office financial services to WPP companies. Financeplus supports a range of processes
including:

Accounts Payable

Accounts Receivable

Media Billing & Payments

Treasury

Accounting and Reporting

In certain countries we also handle local tax, payroll, client accounting & billing

By consolidating activities under one roof, Financeplus takes advantage of volume to deliver
increased efficiency. This is achieved by standardising, streamlining, and aligning relevant
processes, and introducing tools & technology to drive effectiveness across our operations.
By taking over transactional financial activities, Financeplus allows our agencies to focus on
commercial activities, client management and revenue / cost management.

The first Financeplus started in the UK in 2011. We now have established offices in
Australia, India, Malaysia, Mexico, Spain, the UK, and the USA, and have recently started in
Venezuela. Our objective is to cover all WPP’s major markets.

Financeplus has a clearly defined migration methodology that we will use for all future
deployments. This will ensure a smoother transfer of activities with full clarity and proper
preparation.

Outside of the USA, Financeplus is involved in the development of a new ERP which will
allow us to better streamline our services and create a strong foundation for the future.

Financeplus is split into 2 distinct geographical operations:

Financeplus North America - managed by Graham Russell, based in New York

Financeplus International - managed by Michel Karam, based in London

WPP is the world's largest communications services group, employing 200,000 people*
working in 3,000 offices in 113 countries.

5
HISTORY

The company was founded as Wire and Plastic Products plc to manufacture wire shopping
baskets in 1971. In 1985 Martin Sorrell, searching for a listed company through which to
build a worldwide marketing services company, bought a controlling stake of just under 30%
at a cost of $676,000. Sorrell had been the financial director for the advertising
agency Saatchi & Saatchi from 1977 to 1985, managing its takeovers of companies in the US
and the UK. The holding company was renamed WPP Group and in 1987 Sorrell became its
chief executive.
During 1986 WPP became the parent company of Picquotware, a manufacturer of teapots and
jugs, based in Northampton. In November 1987 a fire destroyed the Northampton factory and
production was restarted at Burntwood in Staffordshire. On 25 November 2004 WPP closed
the Burntwood factory and stopped manufacturing Picquotware: all assets were sold on 14
December 2004.
In 1987 the company acquired J. Walter Thompson (including JWT, Hill & Knowlton and
MRB Group) for $566m. The company listed on NASDAQ in 1988. In 1989 it acquired
Ogilvy Group for $864m and in 1998 formed an alliance with Asatsu-DK Inc. of Japan.
In May 2000, WPP agreed to acquire the United States-based advertising company Young &
Rubicam for $5.7 billion, in what was at the time the largest ever takeover in the advertising
sector. The takeover made WPP the largest advertising company in the world measured by
billings and revenue, overtaking Omnicom Group and Interpublic. In 2006, WPP took over
majority share of China's largest field marketing and brand activation agency, Always
Marketing. Always has since been placed under the J. Walter Thompson group to provide
breakthrough into the Chinese market and full on field marketing and brand activation
support to JWT offices around Asia. In 2007, WPP Digital was created to develop the
Group's digital capabilities. In October 2008, WPP acquired market research firm Taylor
Nelson Sofres for £1.6 billion.
During 2009 WPP reduced its workforce by around 14,000 employees, or 12.3% of its then
total staff numbers, in response to the onset of the 2008–2012 global recession.
In June 2012, WPP agreed to acquire the digital advertising agency AKQA for US$540
million. In March 2014 WPP agreed to acquire a minority stake in Swedish broadcaster
FlowNetwork. In July 2015 WPP agreed to acquire a majority stake in the digital healthcare
agency ABS Creative. Then in November 2015 WPP agreed to acquire a majority stake a
global digital agency.
Many of WPP's constituent agencies use Microsoft Windows, and the organisation was hit
hard by the 2017 cyberattacks on Ukraine, with some staff's computer access limited
to webmail only as much as ten days later. It was suggested that poor patch
management and user access administration following IT staffing cuts may have contributed
to the scale of the infection affecting WPP

6
SERVICES OFFERED–

Within WPP, our clients have access to companies with all the necessary marketing and
communications skills. The Group comprises leading companies in all these disciplines:

Advertising
Global, national and specialist advertising services from a range of top international and
specialist agencies, amongst them Bates CHI Partners, Grey, JWT, Ogilvy &
Mather and Y&R.

Media Investment Management

Above- and below-the-line media planning and buying and specialist sponsorship and
branded entertainment services
from GroupM companies MediaCom, MEC, Mindshare, Maxus, plus tenthavenue and
others.

Data Investment Management (formerly known as Consumer Insight)

WPP's Kantar companies, including TNS, Millward Brown, Kantar Futures and many other
specialists in brand, consumer, media and marketplace insight, work with clients to generate
and apply great insights.

Public Relations & Public Affairs

Corporate, consumer, financial and brand-building services from PR and lobbying
firms Burson-Marsteller, Cohn & Wolfe, H+K Strategies, Ogilvy Public
Relations, Finsbury and others.

Branding & Identity

Consumer, corporate and employee branding and design services, covering identity,
packaging, literature, events, training and architecture from Addison Group, Brand
Union, FITCH, Lambie-Nairn, Landor Associates, The Partners and others.

Direct, Digital, Promotion & Relationship Marketing

The full range of general and specialist customer, channel, direct, field, retail, promotional
and point-of-sale services from AKQA, Geometry Global, OgilvyOne Worldwide,
RTC, VML, Wunderman and others.

Healthcare Communications
Ogilvy CommonHealth Worldwide, GCI Health, ghg, Sudler & Hennessey and others
provide integrated healthcare marketing solutions from advertising to medical education and
online marketing.

Specialist Communications

7
A comprehensive range of specialist services, from custom media and multicultural
marketing to event, sports, youth and entertainment marketing; corporate and business-to-
business; media, technology and production services.

WPP Digital
Through WPP Digital, WPP companies and their clients have access to a portfolio of digital
experts including Blue State Digital, and POSSIBLE

1.2 Project introduction

To study the media sector stock in the market and the factors that affect the share prices of
the stocks of the sector. To carry out the company analysis of the selected companies and to
suggest whether they are a viable investment option.

Also to look at the historical performance data of the company and estimate the future
performance of stocks. Looking at this information to gain an insight on the company s future
performance. It is a method of evaluating a security by attempting to measure its future
performance by examining related economic, financial, and other qualitative and quantitative
factors. To estimate a value that an investor can compare with the security’s current price and
figure out what sort of position to take with that security.

8
1.3 Introduction of stock market

Introduction to Basic Terminologies of Stock Market–

 EQUITY MARKETS:

Equity Market
Equity market is the market in which shares are issued and traded, either through exchanges
or over-the-counter markets. Also known as the stock market, it is one of the most vital areas
of a market economy because it gives companies access to capital and based on its future
performance it gives its investors a slice of ownership in a company with the potential to gain
good returns.

 PRIMARY MARKET

The primary market is that part of the capital markets that deals with the issuance of new
securities. Companies, governments, or public sector institutions can obtain funding
through the sale of a new stock or bond issue.

 SECONDARY MARKET

Once the initial sale is complete in the primary market, further trading is said to conduct on the
secondary market. There are totally twenty-one recognized stock exchanges in India excluding
the Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of
India Limited (NSEIL).

DEBT MARKET
Debt market refers to the financial market where investors buy and sell debt securities,
mostly in the form of bonds. These markets are important source of funds, especially in a
developing economy like India. India debt market is one of the largest in Asia. Like all other
countries, debt market in India is also considered a useful substitute to banking channels for
finance. The most distinguishing feature of the debt instruments of Indian debt market is that
the return is fixed.

Debt Markets in India and all around the world are dominated by Government securities,
which account for between 50 – 75% of the trading volumes and the market capitalization in

9
all markets. Government securities (G-Secs) account for 70 – 75% of the outstanding value of
issued securities and 90-95% of the trading volumes in the Indian Debt Markets.

Classification of Indian Debt Market:

Indian debt market can be classified into two categories:

It consists of Financial
It consists of central and Institutions bonds,
state government Corporate bonds and
securities. It means that, debentures and Public
the central and state Sector Units bonds.
government is taking These bonds are issued
loans. It is also the most to meet financial
dominant category in requirements at a fixed
the India debt market cost and hence remove
uncertainty in financial
costs

Government
Securities
Market (G- Bond
Sec Market) Market

10
  MUTUAL FUNDS

A Mutual Fund is the most suitable investment for the average person as it offers an
opportunity to invest in a diversified, professionally managed portfolio at a relatively low
cost. Any person with any surplus money that can be invested, even as little as a few
thousand rupees, can invest in Mutual Funds. Each Mutual Fund scheme has a defined
investment objective and strategy. The team undertakes this in the most professional manner.
Markets for equity shares, debentures, bonds, and other fixed income instruments; real estate,
derivatives and other assets have reached their maturity and are driven by latest up-to-date
information. A mutual fund is thus the ideal investment vehicle for today’s complex and
modern financial scenario. Price changes in these assets are driven by global events occurring
every day, in-fact every minute in faraway places. It will be very difficult, in-fact next too
impossible for an ordinary individual to have the knowledge, skills, inclination, and time to
keep track of events, understand their implications and act speedily. An individual also finds
it difficult to keep track of ownership of his assets, investments, brokerage dues and bank
transactions etc. A mutual fund is the answer to all these situations. It appoints professionally
qualified and experienced staff that manages each of these functions on a full time basis. The
costs of hiring these professionals per investor are very low, as the pool of money invested is
large. In effect, the mutual fund vehicle exploits economies of scale in all three areas -
research, investments, and transaction processing.

Diversification of investments in mutual funds reduces the overall investment risks by

spreading the risks across different assets. The types of mutual funds are subject to large scale
variation subject to investment objective, size strategy and style.

The Three Basic Features of Mutual Funds

 All mutual funds charge expenses. Expenses namely marketing, management or

brokerage fees, fund expenses are generally passed back to the investors.
 Investors exercise no control over what securities the fund buys or sells.
 The buying and selling of securities within the mutual fund portfolio generates capital
gains and losses which are passed back to investors even if they have not sold any of
their mutual fund shares.

11
 DIFFERENT TYPES OF MUTUAL FUNDS

Classification of Mutual
Fund

On the Basis of On the Basis of

Objective Flexibility

Hedge Funds Close-ended

Funds

Open-ended
Funds
Debt/Income
Funds

Tax Saving
Funds

Index Funds

Equity,
Growth/Funds

12
  DERIVATIVES

A derivative is a financial instrument that gets its value from some good or stock. It is the
derived value of an underlying asset. It is, in its most basic form, simply a contract between
two parties to exchange value based on the action of a good or service. Typically, the seller
receives money in exchange for an agreement to purchase or sell some good or service at
some specified future date.

Derivatives offer some degree of leverage or multiplication as a mortgage. For a small

amount of money, the investor can control a much larger value of company stock than would
be possible without use of these instruments. This can work both ways, though. If the investor
is correct, then more money can be made than if the investment had been made directly into
the company itself. The losses are multiplied instead, however, if the investor is wrong.

The basic concept of a derivative contract remains the same whether the underlying happens
to be a commodity or a financial asset. However, there are some features which are very
peculiar to commodity derivative markets.

Financial Derivatives can be classified as below:

Futures
• Speculation
• Arbitrage
• Hedging
Options
• Call option
• Put option

13
1.4 Review on Media sector

 Introduction
The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and
is making high growth strides. Proving its resilience to the world, the Indian M&E industry is
on the cusp of a strong phase of growth, backed by rising consumer demand and improving
advertising revenues.
The industry has been largely driven by increasing digitisation and higher internet usage over
the last decade. Internet has almost become a mainstream media for entertainment for most of
the people.

 Market Dynamics

The Indian media & entertainment sector is expected to grow at a Compound Annual Growth
Rate (CAGR) of 14.3 per cent to touch Rs 2.26 trillion (US$ 33.9 billion) by 2020, while
revenues from advertising is expected to grow at 15.9 per cent to Rs 99,400 crore (US$ 14.91
billion).
Over FY 2015-20, radio will likely grow at a CAGR of 16.9 per cent, while digital
advertising will grow at 33.5 per cent. The largest segment, India’s television industry, is
expected to grow at a CAGR of 15 per cent, while print media is expected to grow at a
CAGR of 8.6 per cent.!
India is one of the highest spending and fastest growing advertising market globally. The
country’s expenditure on advertising is estimated at 15.5 per cent in 2016, and is expected to
grow by 11.2 per cent in 2017, based on various media events like T20 Cricket World Cup,
the Indian Premier League (IPL) and State elections. Television segment, which continues to
hold highest share of spending, is expected to grow by 12.3 per cent in 2016 and 11 per cent
in 2017, led by increased spending by packaged consumer goods brands and e-commerce
companies. $
The Foreign Direct Investment (FDI) inflows in the Information and Broadcasting (I&B)
sector (including Print Media) in the period April 2000 – December 2016 stood at US$ 6.3
billion, as per data released by Department of Industrial Policy and Promotion (DIPP).

 Recent development/Investments

 Hot star, a digital streaming platform owned by Star India Ltd, has entered a
partnership with Zapr Media Labs, a media tech company based in Bengaluru, to
perform analysis on mobile audience that can be leveraged by brands to create
personalised communication.
 Big tree Entertainment Pvt. Ltd, which owns Bookmyshow, has acquired a 75 per cent
stake in Town script, an online event registration and ticketing platform based in
Pune.

14
 PE major Warburg Pincus has purchased 14 per cent stake in India’s largest multiplex
chain PVR Ltd for Rs 820 crore (US$ 123 million).
 ITW Consulting, a global sports consulting and management company, has forayed
into the Indian market by launching its entertainment, media, and communication
arm, ITW Playworx, which will be based in Mumbai with offices across Delhi,
Bengaluru, Chennai, and Kolkata.
 Carnival Cinemas, the third largest cinema multiplex chain in India, has collaborated
with Odisha government to build 30 entertainment centres or recreation zones over 1-
1.5 acres of land in tier-II or tier-III locations of each district.
 Dekkho, an online video streaming platform, has raised US$ 1.2 million in a seed
around from seven angel investors, which will be used for scaling its technology
infrastructure and invest in content licensing.
 Amazon has launched its Prime Video service in India at a competitive annual
subscription price of Rs 499 (US$ 7.48), with a one-month free trial, including range
of Hollywood as well as international movies, TV Shows and nine Indian original
shows, in its content library.
 Reliance Capital, part of Anil Ambani-led Reliance Group, has announced the sale of
its radio and television broadcasting businesses under Reliance Broadcast Network to
the Zee group for Rs 1,900 crore (US$ 285 million).
 The Ministry of Information & Broadcasting has outlined plans to set up a Film
Promotion Fund, to provide financial assistance to Indian films which would be
selected in any competition section of an International Film Festival, or being India’s
official nomination to the Academy Awards under Foreign Film Category, for
promotional activities.
 Dentsu Aegis Network Ltd, the UK-based media and digital marketing
communications company, has acquired Perfect Relations Group, an independent
public relations firm, enabling the company to further strengthen its overall
communications offering in the Indian market.
 KidZania, a Mexican chain of family entertainment centres, plans to expand its
footprint to southern India by investing Rs 100 crore (US$ 15 million) for setting up a
theme park, which will be spread over 75,000 sqft, by the end of 2017, or early 2018.
 LeEco, the China-based technology company, plans to invest about Rs 1,330 crore
(US$ 199.5 million) into developing content for India, including its own produced
content, in the next two to three years.
 Vice Media LLC, a US-based digital media, and broadcasting company, has entered a
Joint Venture (JV) agreement with the Times Group to open a new bureau and
production hub in Mumbai, and launch digital, television, mobile and branded content
in India.
 Cinepolis, a Mexico-based multiplex chain, plans to add 160 more screens by
investing around Rs 400 crore (US$ 60 million) in India in the next two years, thereby
taking its total count to 400 screens in the country.
 Dalian Wanda Group Co Ltd, world's largest cinema chain operator, has initiated talks
with leading multiplex owners in India such as PVR Ltd and Carnival Cinemas Ltd, to
acquire assets and enter the Indian market.
 US based investment firm Tiger Global Management LLC has acquired a 25 per cent
stake in 'The Viral Fever' (TVF), an online video content creator, for US$ 10 million.

15
 Balaji Telefilms Limited (Balaji Telefilms) has raised Rs 150.08 crore (US$ 22.51
million) through allotment of equity shares on preferential basis to catapult the launch
and growth of ALT Digital Media, a Business-to-Consumer(B2C) digital content
business segment of Balaji Group.
 Global video-streaming service Netflix has entered India as high-speed Internet
connectivity is becoming rapidly available to Indians and nearly one-fifth of India's
1.3 billion population is now online.
 Reliance Entertainment (owned by Mr Anil Ambani) and DreamWorks (led by Mr
Steven Spielberg), along with Participant Media (led by Mr Jeff Skoll) and
Entertainment One (eOne) have formed a new film, television and digital content
creation company called ‘Amblin Partners’, and have raised US$ 500 million in debt
to develop and produce films.
 Scoop Whoop, an Indian digital media, and content start-up, has raised US$ 4 million
from Kalaari Capital and plans to use the funds for expansion of its video production
unit called Scoop Whoop Talkies.
 Mobvista International Technology Ltd, a global mobile advertising and game
publishing company, plans to increase its investment in India by US$ 100 million
over 2015-18, with a view to capture a bigger share of the booming e-commerce and
ad-tech space.
 The digital arm of New Delhi Television Limited (NDTV) namely NDTV
Convergence, that owns and operates the NDTV group's digital properties, has signed
a deal worth US$ 13-15 million with content discovery platform Taboola.
 Turner International India has announced the expansion of its television bouquet for
children with the launch of Toonami, a channel dedicated to animated action. This is
the American company’s third children’s channel in India after Cartoon Network and
POGO. Toonami joins an assortment of over 15 channels in the kids’ genre, which
attracts close to Rs 500 crore (US$ 75 million) in advertising.

16
Porter’s 5 forces analysis for

Media Sector

Substitute Products • Film industry, print media & internet

• Significant sporting events like World
Cup, T20, etc. & other cultural events

Threat of New Entrants • High sunk costs are involved

• High capital requirements
• Access to distribution is difficult

Bargaining power of suppliers • The number of suppliers is very high

which leads to the low bargaining power
with them
• Increasing number of content providers

Bargaining power of customers • Increased globalisation

• Consumers loyalty towards one channel is
less, as variety of alternative sources of
entertainment is available

Competitive Rivalry • Highly fragmented industry that is no

single enterprise has large enough share to
influence the entire sector
• High fixed costs & highly perishable
products

17
1.5 Scope of the study
The scope of this project is limited to only one sector i.e. telecom (service provider) sector.
This project is concerned with only one sector of companies in the stock market. The project
does not extend its scope to any other sector of companies.

Also, the project is concerned with only two companies from among the major players in the
Telecom sector i.e. Balaji telefilms, zee media, and Hindustan media.

18
2. LITERATURE REVIEW

19
Some important works undertaken in recent years which are very closely connected with the
present study are reviewed:

Name of the Author: Vashisht

Year of Publication: January 2008

Analysed the determinants of competitiveness in the Indian auto industry. The automobile
sector is a key player in the global and Indian economy. The global motor vehicle industry
contributes to 54 percent directly to the total manufacturing employment, 12.9 percent to the
total manufacturing production value and 8.3 percent to the total industrial investment.

Name of the Author: RAY

Year of Publication: January 2012

Examine the trends in capacity utilization in the Indian automobile sector at aggregate level
during post liberalized economic scenario and also attempts to estimate the economic
performance of Indian automobile industry in term of capacity utilization at the aggregate level.

Name of the Author: Shinde Govind & Dubey Manisha

Year of Publication: January 2011

The study has been conducted considering the segments such as passenger, commercial vehicle
and utility vehicle two and three wheeler vehicle of key players’ performance of also analyse
of SWOT analysis and key factors influencing growth of automobile industry.

20
Name of the Author: Sharma Nishi 2011

Year of Publication: 2011

Studied the financial performance of and commercial vehicle segment of the automobile
industry in the terms of four financial parameters’ namely liquidity, profitability, leverage and
managerial efficiency analysis for the period of decade from 2001-02 to 2010-11. The study
concludes that profitability and Managerial efficiency of TATA motors as well as Mahindra &
Mahindra Ltd are satisfactory but their liquidity position is not satisfactory. The liquidity
position of commercial vehicle is much better than passenger vehicle segment.

Name of the Author: Singh Amarjit & Gupta Vinod

Year of Publication: 2012

Explored and overview of automobile industry. Indian automobile industry itself as a

manufacturing hub and many joint ventures have been setup in India with foreign collaboration.
Swot analysis done there are some challenges by the virtue of the which automobile industry
faces lot of problems and some innovative key features are keyless entry, electrically controlled
mechanism enhanced deriving control soft feel interiors and also need to focus in future on fuel
efficiency, emission reduction safety and durability.

Name of the Author: Zafar S.M. Tariq & Khalid S.M.

Year of Publication: 2012

The Study explored that ration are calculated from financial statements which are prepared as
desired policies adopted on depreciation and stock valuation by the management. Ratio is
simple comparison of numerator and a denominator that cannot produced complete and
authentic picture of business. Results are manipulated and also may not highlighted other factor
which affect performance of firm by promoter.

21
Name of the Author: Ray Sabapriya

Year of Publication: 2012

Studied the sample of automobile companies to evaluate the performance of industry through
indicators namely sales, production and export trend etc. for period 2003-04. The study finds
that automobile industry has been passing though disruptive phases by over debt burden,
underutilization of assets and liquidity instability. The researcher suggested to improving the
labour productivity, labour flexibility and capital efficiency for success of industry in future.

Name of the Author: Dawar Varun

Year of Publication: 2012

Study to analyse the effect of various fundamental corporate policy variables like dividend,
debit, capital expenditure on stock prices of automobile companies of India. The study tends
that dividend & investment policy are relevant and capital structure irrelevant to stock prices.

Name of the Author: Mistry Dharmendra

Year of Publication: 2012

Understand a study to analyse the effect of various determinants on the profitability of the
selected companies. It concluded that debt equity ratio, inventory ratio, total assets were
important determinants which effect positive or negative effect on the profitability. It suggested
improving solvency as to reduce fixed financial burden on the company profit & give the
benefit of trading on equity to the shareholders.

Name of the Author: Murlidhar, A. Lok Hande & Rana Vishal S.

Year of Publication: 2013

The author tries to evaluate the performance of Hyundai Motors Company with respect to
export, Domestic Sales, productions and profit after tax. For this purpose, the pie chart and bar
graph are used to show the performance of company various years.

22
Name of the Author: Dharmaraj, A and Kathirvel N

Year of Publication: 2013

Explored an overview of new industrial policy act 1991, which allow 100 percent foreign direct
investment. An attempt is made to find out the effect of FDI on financial performance of
automobile industry. It is conducted that the liquidity ratios show minor changes and
profitability shows an increasing trend during post FDI when compared to pre FDI. Post FDI
efficiency ratio shows that companies are efficiently utilizing the available resources.

Name of the Author: Rapheal Nisha

Year of Publication: 2013

The author tries to evaluate the financial performance of Indian tire industry. The study was
conducted for period 2003-04 to 2011-12 to analyse the performance with financial indicators,
sales trend, export trend, production trend etc. The result suggests the key to success in industry
is to improve labour productivity and flexibility and capital efficiency.

Name of the Author: Hotwani Rahki

Year of Publication: 2013

The author examines the profitability position and growth of company in light of sales and
profitability of Tata Motors for past ten years. Data is analysed through rations, standard
deviations and coefficient of variance. The study reveals that there not exists a strong
relationship between sales & profitability of company.

Name of the Author: Sharma Rashmi, Pande Neeraj & Singh Avinash

Year of Publication: 2013

For understanding how social media monitoring can help diving the customer decision & also
study. The functions of social media i.e. monitor, responses amplify and lead at Maruti Suzuki
India Pvt ltd.

23
The research had discussion with social media team median managers for collecting data &
also visited the official social media sites of MSIL.

Name of the Author: Daniel A. Moses Joshunar

Year of Publication: 2013

The study has been conducted to identify the financial strength and weakness of the Tata motors
ltd. Using past 5 year financial statements. Trend analysis & ratio analysis used to comment of
financial status of company. Financial performance of company is satisfactory and also
suggested to increase the loan levels of company for the better performance.

Name of the Author: Dhole Madhavi.

Year of Publication: 2013

Investing the impact of price movement of share on selected company performance. It advises
due investors consider various factors before choosing the better portfolio. Sentimental factors
do play a role in price movement only in short term but in long run annual performance is sole
factor responsible for price movement.

Name of the Author: Shende Vikram

Year of Publication: 2014

Research will be helpful for the new entrants and existing car manufacturing companies in
India to find out the customer expectations and their market offerings. The objective of study
is the identification of factors influencing customer’s performance for particular segment of
cars

24
3. RESEARCH METHODOLOGY

25
3.1 Type of research
The project is on equity research analysis of the sector. Hence study must be done based on
information and news available about the sector i.e. secondary data by various modes. This
research had to be completed by doing Fundamental analysis and Technical analysis of the
companies.

Secondary data was collected from the internet, company websites, magazines, and various
articles. However, the main source of information is Annual Report issued by the companies
and quarterly reports of the current year showing their performances in current market
scenario.

RESEARCH TECHNIQUE–

The project is on equity research analysis of the sectors. Hence study must be done based on
information and news available about the sectors i.e. secondary data by various modes. This
research had to be completed by doing Fundamental analysis and Technical analysis of the
companies.

Secondary data was collected from the internet, company websites, magazines, and various
articles. However, the main source of information is Annual Report issued by the companies
and quarterly reports of the current year showing their performances in current market
scenario.

Firstly, data was analysed based on the industry. Both the industry i.e. banking and cement
were focused on and its performance and relation with the Indian economy was monitored
and then specific stocks were chosen to be invested in depending upon the fundamentals of
the company stocks. These stocks were individually analysed and then measured whether it
would give maximum returns if invested in.

The research on the sectors and companies in those sectors is explained in the later part of the
report.

 FUNDAMENTAL ANALYSIS

Fundamental analysis of a business involves analysing its financial statements and health, its
management and competitive advantages, and its competitors and markets. When analysing a
stock, futures contract, or currency using fundamental analysis there are two basic approaches
one can use; bottom up analysis and top down analysis. The term is used to distinguish such
analysis from other types of investment analysis, such as quantitative analysis and technical
analysis.

Fundamental analysis is performed on historical and present data, but with the goal of making
financial forecasts. There are several possible objectives:

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  To conduct a company stock valuation and predict its probable price evolution,
 To make a projection on its business performance,
 To evaluate its management and make projected decisions,

Fundamental analysis includes:

1. Economic analysis

2. Industry analysis

3. Company analysis

based on these three analyses the intrinsic value of the shares is determined. This is
considered as the true value of the share. If the intrinsic value is higher than the market price
it is recommended to buy the share. If it is equal to market price, then hold the share and if it
is less than the market price then sells the shares.

 TECHNICAL ANALYSIS

Technical analysis is a financial term used to denote a security analysis discipline for
forecasting the direction of prices through the study of past market data, primarily price and
volume. Behavioural economics and quantitative analysis incorporate technical analysis,
which being an aspect of active management stands in contradiction to much of modern
portfolio theory.

Technical analysis employs models and trading rules based on price and volume
transformations, such as the relative strength index, moving averages, regressions, inter-
market and intra-market price correlations, business cycles, stock market cycles or,
classically, through recognition of chart patterns. Technical analysis stands in contrast to the
fundamental analysis approach to security and stock analysis. Technical analysis analyses
price, volume, and other market information, whereas fundamental analysis looks at the facts
of the company, market, currency, or commodity.

Most large brokerage, trading group, or financial institutions will typically have both a
technical analysis and fundamental analysis team.

Concepts -
 Resistance — a price level that may prompt a net increase of selling activity
 Support — a price level that may prompt a net increase of buying activity
 Breakout — the concept whereby prices forcefully penetrate an area of prior
support or resistance, usually, but not always, accompanied by an increase in
volume.

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  Trending — the phenomenon by which price movement tends to persist in one
direction for an extended period
 Average true range — averaged daily trading range, adjusted for price gaps
 Chart patterns— distinctive pattern created by the movement of security prices on
a chart
 Momentum — the rate of price change

 Chart Types:
There are three main types of charts that are used by investors and traders depending on the
information that they are seeking and their individual skill levels. The chart types are: the line
chart, the bar chart, the candlestick chart.

i. Line Chart -

The most basic of the three charts is the line charts because it represents only the closing
prices over a set period. The line is formed by connecting the closing prices over the period.
Line charts do not provide visual information of the trading range for the individual points
such as the high, low, and opening prices. However, the closing price is often considered to
be the most important price in stock data compared to the high and low for the day and
therefore it is the only value used in line charts.

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 ii. Bar Chart -
The bar chart expands on the line chart by adding several more key pieces of information to
each data point. The chart is made up of a series of vertical lines that represent each data
point. This vertical line represents the high and low for the trading period, along with the
closing price. The close and open are represented on the vertical line by a horizontal dash.

The opening price on a bar chart is illustrated by the dash that is located on the left side of the
vertical bar. Conversely, the close is represented by the dash on the right. Generally, if the
left dash (open) is lower than the right dash (close) then the bar will be shaded black,
representing an up period for the stock, which means it has gained value. A bar that is
coloured red signals that the stock has gone down in value over that period. When this is the
case, the dash on the right (close) is lower than the dash on the left (open).

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 iii. Candlestick Charts –

The candlestick chart is like a bar chart, but it differs in the way that it is visually constructed.
like the bar chart, the candlestick also has a thin vertical line showing the period's trading
range. The difference comes in the formation of a wide bar on the vertical line, which
illustrates the difference between the open and close. And, like bar charts, candlesticks also
rely heavily on the use of colours to explain what has happened during the trading period.
There are two colour constructs for days up and one for days that the price falls. When the
price of the stock is up and closes above the opening trade, the candlestick will usually be
white or clear. If the stock has traded down for the period, then the candlestick will usually be
red or black, depending on the site. If the stock's price has closed above the previous day’s
close but below the day's open, the candlestick will be black or filled with the colour that is
used to indicate an up day.

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  Chart Patterns –

HEAD AND SHOULDER -

This is one of the most popular and reliable chart patterns in technical analysis. Head and
shoulders is a reversal chart pattern that when formed, signals that the security is likely to
move against the previous trend Head and shoulders top is a chart pattern that is formed at the
high of an upward movement and signals that the upward trend is about to end. Head and
shoulders bottom, also known as inverse head and shoulders is the lesser known of the two,
but is used to signal a reversal in a downtrend.

Cup and Handle -

A cup with handle chart is a bullish continuation pattern in which the upward trend has
paused but will continue in an upward direction once the pattern is confirmed. This price
pattern forms what looks like a cup, which is preceded by an upward trend. The handle
follows the cup formation and is formed by a generally downward/sideways movement in the
security's price. Once the price movement pushes above the resistance lines formed in the
handle, the upward trend can continue. There is a wide ranging period for this type of pattern,
with the span ranging from several months to more than a year.

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Double Tops and Bottoms -

This chart pattern is another well-known pattern that signals a trend reversal - it is one of the
most reliable and is commonly used. These patterns are formed after a sustained trend and
signal to chartists that the trend is about to reverse. The pattern is created when a price
movement tests support or resistance levels twice and is unable to break through. This pattern
is often used to signal intermediate and long-term trend reversals.

Triangles -

Triangles are some of the most well-known chart patterns used in technical analysis. The
three types of triangles, which vary in construct and implication, are the symmetrical triangle,
ascending and descending triangle. These chart patterns are considered to last anywhere from
a couple of weeks to several months.

Flag and Pennant -

These two short-term chart patterns are continuation patterns that are formed when there is a
sharp price movement followed by a generally sideways price movement. This pattern is then
completed upon another sharp price movement in the same direction as the move that started
the trend. The patterns are generally thought to last from one to three weeks.

Wedge -
The wedge chart pattern can be either a continuation or reversal pattern. It is like a
symmetrical triangle except that the wedge pattern slants in an upward or downward
direction, while the symmetrical triangle generally shows a sideways movement. The other
difference is that wedges tend to form over longer periods, usually between three and six
months.

Triple Tops and Bottoms -

Triple tops and triple bottoms are another type of reversal chart pattern in chart analysis.
These are not as prevalent in charts as head and shoulders and double tops and bottoms, but
they act in a similar fashion. These two chart patterns are formed when the price movement
tests a level of support or resistance three times and is unable to break through; this signals a
reversal of the prior trend.

Rounding Bottom -

A rounding bottom, also referred to as a saucer bottom, is a long-term reversal pattern that
signals a shift from a downward trend to an upward trend. This pattern is traditionally thought
to last anywhere from several months to several years.

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 3.2 Tools for analysis
EQUITY RESEARCH TECHNIQUE –

 Sector Analysis-

Sector Analysis was done based on research and understanding various companies of the
sector i.e. Media sector, which had strong Fundamentals over other companies of the
same sector. Companies’ growth and past performance was considered along with its top-
line (Revenue) and Bottom-line (Profits) for that period.

Companies with strong fundamentals were preferred.

The Ratios that were taken into consideration were:

 P/E Ratio-
In general, a high P/E suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the
whole story by itself. It's usually more useful to compare the P/E ratios of one company to
other companies in the same industry, to the market in general or against the company's own
historical P/E. It would not be useful for investors using the P/E ratio as a basis for their
investment to compare the P/E of a technology company (high P/E) to a utility company (low
P/E) as each industry has much different growth prospects.

The P/E is sometimes referred to as the "multiple", because it shows how much investors are
willing to pay per rupee of earnings. If a company were currently trading at a multiple (P/E)
of 20, the interpretation is that an investor is willing to pay Rs.20 for Re.1 of current
earnings.

It is important that investors note an important problem that arises with the P/E measure, and
to avoid basing a decision on this measure alone. The denominator (earnings) is based on an
accounting measure of earnings that is susceptible to forms of manipulation, making the
quality of the P/E only as good as the quality of the underlying earnings number.

 Generally, a high P/E ratio means that investors are anticipating higher growth in the
future.
 The average market P/E ratio is 20-25 times earnings.
 The p/e ratio can use estimated earnings to get the forward looking P/E ratio.

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  PEG ratio -

The PEG ratio that indicates an over or under priced stock varies by industry and by company
type; though a broad rule of thumb is that a PEG ratio below one is desirable. Also, the
accuracy of the PEG ratio depends on the inputs used. Using historical growth rates, for
example, may provide an inaccurate PEG ratio if future growth rates are expected to deviate
from historical growth rates. To distinguish between calculation methods using future growth
and historical growth, the terms "forward PEG" and "trailing PEG" are sometimes used.

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4. DATA ANALYSIS

35
MEDIA SECTOR ANALYSIS

REVENUE FROM DIFFERENT SOURCES

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 MEDIA COMPANY ANALYSIS
COMPANIES PRICE P/E EPS

PVR 1361.60 71.21 19.12

ZEE MEDIA 38.55 47.59 0.68

BALAJI TELEFILM 179.55 44.01 4.08

SUN TV NETWORK 810.95 32.63 24.85

HT MEDIA 86.35 25.55 3.38

HINDUSTAN MEDIA 280.55 10.68 26.28

FILMCITY MEDIA 0.81 NILL NILL

ENT NETWORK IND 918.80 80.38 11.43

SECTOR P/E 23.48

SELECTED COMPANIES

COMPANIES PRICE PRICE PROFIT VOLUME AMT P/E

AS ON AS ON AS ON
27/7/2017 21/7/2017 27/7/2017
ZEE MEDIA 38.60 38.30 0.30 18103 698775.8 47.59

BALAJI TELEFILM 179.95 178.02 1.93 87990 15833800 44.01

HINDUSTAN MEDIA 282.10 276.20 5.9 962 271380.2 10.68

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  ZEE MEDIA

Zee Entertainment Enterprises Ltd. (ZEEL) is an Indian media and entertainment company
based in Mumbai, Maharashtra, India. A subsidiary of the Essel Group the company's
founder is Subhas Chandra and its CEO and Managing Director is Punit Goenka. The
company has 35 channels serving Indian content across India and 169 countries, with the
latest being World is One News. of mainstream films in Indian languages

In 2008, Zee Networks launched Zee Motion Pictures, an independent subsidiary of Zee
Entertainment Enterprises focusing on development, production, distribution and marketing
of mainstream films in Indian languages
including Hindi, Kannada, Bengali, Telugu, Marathi, Tamil and Malayalam. Zee Motion
Pictures also operates Zee Limelight. Gadar: Ek Prem
Katha, Natsamrat, Sairat and Rustom include their successful productions.

Ownership pattern

In its latest stock exchange filing dated 31 March 2017, Zee reported a promoter holding of
43.07 %. Large promoter holding indicates conviction and sincerity of the promoters. We
believe that a greater than 35 % promoter holding offers safety to the retail investors.

At the same time, institutional holding in the Company stood at 51.85 % (FII+DII). Large
institutional holding indicates the confidence of seasoned investors. At the same time, it can
also lead to high volatility in the stock price as institutions buy and sell larger stakes than
retail participants.

PRICE CHART

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Annual Income Statement Data
Actuals in M INR Estimates in M INR

Fiscal Period March 2015 2016 2017 2018 2019 2020

Total Income from Operations 25 378 29 040 27 815 33 940 42 291 48 556

Operating income (EBITDA) 5 166 5 600 3 749 5 370 7 352 9 600

Operating profit (EBIT) 3 911 4 318 2 409 3 915 5 126 7 923

Pre-Tax Profit (EBT) 2 858 3 406 1 363 1 974 3 261 5 471

Net income 1 773 2 335 970 1 415 2 216 3 830

EPS ( INR) 25,4 33,4 13,9 19,1 30,6 54,8

Dividend per Share ( INR) 5,00 6,50 3,00 4,91 6,93 6,00

Yield 1,26% 1,64% 0,76% 1,24% 1,75% 1,52%

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  BALAJI TELEFILMS

What started out as a simple notion to provide content for the television broadcasters has today
grown to become an entertainment powerhouse known as Balaji Telefilms Ltd. Under the
hands on leadership of Shobha Kapoor (M.D) alongside the extraordinary vision and creative
story telling of Ekta Kapoor (Joint M.D.) Balaji Telefilms Ltd. has far exceeded its potential
of yesterday and has now set the industry standard for all.
Balaji Telefilms Ltd. was originally incorporated as a private limited company on November
10th 1994 and went public on February 28th 2000. Today Balaji Telefilms Ltd is amongst the
largest content production houses in Asia and Middle East with regards to delivering Hindi and
regional content. We are listed on the BSE with a BSE Code of 532382 and the NSE with an
NSE Code of BALAJITELE.
As a reigning expert in the T.V. medium along with being credited by many to have polarized
and changed the face of the Indian television, we are committed to being proactive visionaries
to stay ahead of the competition. We have unrivaled leadership in providing television content
and have produced over 17,000 hours of valuable content that has shattered TRP/GRP records!
Starting from a single production of Mano Ya Na Mano, we have now become a conglomerate
that has produced several hit shows to its credit such as Kyu Ki Saas Bhi Kabhi Bhau Thi, Bade
Achhe Lagte Hai, Pavitra Rishta, Naagin and many more.
Constant drive for growth and progression led us to venture into producing content on the silver
screen through a subsidiary created in 2001, Balaji Motion Pictures Ltd. In a short period Balaji
Motion Pictures Ltd. has established itself as one of the top movie studios in the country and
has worked with most of the leading actors and actors in the industry, Today Balaji Motion
Pictures Ltd. has etched itself in the industry as a provider of differentiated cinematic
experience.
With geographical boundaries disappearing in the world of the internet, we aim to make our
content seamlessly available globally. Our digital business is all about igniting a surge in direct
entertainment consumption, from which we can now capture the entire value stream, right from
the earliest sparks of content ideation to the final point of the consumer across platforms.
We have developed ALTBalaji as a subscription based video on demand service. ALTBalaji
aims to reach out directly to individual audiences, by providing them with original, exclusive,
and tailor-made shows, that they can access at their fingertips. These shows tailored especially
for Indians across the globe will consist of premium, high quality shows featuring popular
celebrities, acclaimed writers, and award winning directors, making ALTBalaji a true

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alternative to mainstream entertainment. With stories from different worlds, in genres ranging
from thrillers, mystery and crime to drama, comedy, and romance; ALTBalaji has shown for
everyone, from college going youngsters to professionals with families.
As we look to further our growth and continued success, we are committed to enhancing
shareholders value and provide distinctive content that our audiences expect from us. We will
continue to expand through our expertise in content creation across TV, Motion Pictures and
Digital and provide entertainment to our millions of consumers. In time, we wish to emerge as
one of the most recognized and most influential entertainment providers globally.

PRICE CHART

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INCOME STATEMENT EVOLUTION

Annual Income Statement Data

Actuals in M INR Estimates in M INR

Fiscal Period June 2015 2016 2017 2018 2019 2020

Total Income from Operations 35 119 46 251 55 671 57 559 67 589 79 194

Operating income (EBITDA) 9 324 11 646 15 609 13 331 17 149 21 089

Operating profit (EBIT) 2 566 3 733 11 253 8 352 11 587 14 674

Pre-Tax Profit (EBT) 1 103 3 042 11 194 8 490 11 547 15 214

Net income 2 097 2 670 10 039 7 151 9 429 12 230

EPS ( INR) 60,2 76,6 288 203 272 349

Dividend per Share ( INR) 14,0 - 20,0 19,4 21,7 24,8

Yield 0,19% - 0,27% 0,27% 0,30% 0,34%

 HINDUSTAN MEDIA

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The Company was incorporated on July 9, 1918 under the Indian Companies Act, 1913 as a
public limited company under the name 'The Behar Journals Limited' and received the
certificate of commencement of business on January 14, 1919. On November 17, 1987 the
name of the Company was changed to 'Searchlight Publishing House Limited' to reflect to
make the name of the Company more in consonance with its publication, 'Searchlight'.
Subsequently, the name of Company was changed to its present name 'Hindustan Media
Ventures Ltd.' to reflect the expanded business activities intended to be undertaken by the
Company and to be in consonance with the prevailing industry trends and a fresh certificate of
incorporation to this effect was issued on November 11, 2008.
Year Event
Incorporation of our Company as The Behar Journals Limited' by individuals including
1918 Dr. Rajendra Prasad, Mr. Sachidannand Sinha and Mr. Syed Hassan Imam, who were
the founder Directors of our Company.
Commencement of business of our Company.
1919 Commissioning of printing press at Patna.
Commencement of printing and publishing of English newspaper, Searchlight'.
1947 Commencement of printing and publication of Hindi daily Pradeep' at Patna.
Commencement of printing of Hindi daily Hindustan' and the English daily Hindustan
Times' on behalf of The Hindustan Times Limited' at Patna.
1986
Termination of printing and publication of the Hindi daily Pradeep' and the English
Daily Searchlight'.
Name of the Company changed to Searchlight Publishing House Limited', to capitalize
1987
on the name earned by its publication Searchlight'.
Commencement of printing of Hindi daily Hindustan' and English daily Hindustan
2000 Times' from Ranchi location, in terms of a printing agreement with the holding
company and publisher of the said publications The Hindustan Times Limited'
Name of the Company changed to Hindustan Media Ventures Ltd.', to reflect the
2008
expanded business activities of our Company.
Acquisition of Hindi business ‘from HT Media comprising of Hindi daily newspaper,
Hindustan' including Ravivasriya Hindustan'; magazines Nandan' and Kadambini'; and
2009
internet portals of the said publications, including all assets, liabilities and employees
pertaining to the said Hindi business.
The Company came out with an Initial Public Offering (IPO) of shares, aggregating Rs.
2010
270 Cr., and got listed on BSE & NSE on 21st July, 2010

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PRICE CHART

INCOME STATEMENT EVOLUTION

44
Annual Income Statement Data

Actuals in M INR Estimates in M INR

Fiscal Period March 2015 2016 2017 2018 2019 2020

Sales 8 057 9 064 9 333 9 818 10 797 11 764

EBITDA 1 665 2 177 2 653 2 367 2 698 3 028

Operating profit (EBIT) 1 422 1 952 2 451 2 414 2 720 2 786

Pre-Tax Profit (EBT) 1 881 2 446 2 612 2 904 3 298 3 969

Net income 1 409 1 806 1 895 2 010 2 298 2 757

P/E ratio - - 10,9 10,3 8,99 7,48

EPS ( INR ) 19,2 24,6 25,8 27,4 31,3 37,6

Dividend per Share ( INR

1,20 1,20 - 1,56 1,58 1,77
)

Yield - - - 0,55% 0,56% 0,63%

Reference price ( INR ) 281 281.1 281.1 281.1

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5. OUTLOOK, INTERPRETATION,
CONCLUSION

46
5.1 OUTLOOK -

Media Industry Outlook

The Indian Media and Entertainment industry is on an impressive growth path. The revenue
from advertising is expected to grow at a CAGR of 13 per cent and will exceed Rs 81,600
crore (US$ 12.24 billion) in 2019 from Rs 41,400 crore (US$ 6.21 billion) in 2014. Internet
access has surpassed the print segment as the second-largest segment contributing to the
overall pie of M&E industry revenues.
Television and print are expected to remain the largest contributors to the advertising pie in
2018 as well. Internet advertising will emerge as the third-largest segment, with a share of
about 16 per cent in the total M&E advertising pie. The film segment which contributed Rs
12,640 crore (US$ 1.89 billion) in 2014 is projected to grow steadily at a CAGR of 10 per
cent on the back of higher domestic and overseas box-office collections as well as cable and
satellite rights.

5.2 INTERPRETATION –
 The main aim of this project which was to do equity research in Media sector and it
also shows the opportunities of investment where returns can be maximized.

 The major players in Indian Media Industry which has good investment prospects are
–

ZEE MEDIA

BALAJI TELEFILM

HINDUSTAN MEDIA

 The top-line (Revenue) and bottom-line (Profit) of the companies selected under
cement sector are performing better than others in similar sector.

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5.3 CONCLUSION -
This project has given me broad aspect to gain knowledge of the financial activities. This
project was a good exposure for us to get acquainted with the sector analysis as well as other
financial aspects i.e. equity markets, debt markets, mutual funds, derivatives, etc. and how the
work in the life.

From the project it can be concluded on the sector that,

 Media industry is a cyclical service industry where the profit and return on capital
is dependent on the demand cycle picture. Given the high potential growth, quite
a few foreign transnational’s have been eyeing the Indian Markets and are
planning to acquire domestic companies. This could lead to higher prospects of
growth to this sector in the coming years.

This Internship and project has not only exposed us to do this research but has also given us
an opportunity to understand the corporate world, work culture and professionalism, which
would help us to excel in our career

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6. BIBLIOGRAPHY

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6.1 NEWSPAPER –
 Economic Times of India
 Business Standard

6.2 WEBSITES
 www.info.shine.com
 www.moneycontrol.com
 www.equimaster.com
 www.indiainfoline.com
 www.moneyworks4me.com
 www.wikipedia.com

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