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Financial Management (FM) : Project Report

The document is a project report analyzing the automobile industry in India. It analyzes key financial metrics like annual return, standard deviation, beta, systematic risk, unsystematic risk, cost of equity, cost of debt, and weighted average cost of capital for 6 major automobile companies in India - Mahindra, Tata Motors, Hindustan Motors, Hero Motocorp, Bajaj Auto, and Maruti Suzuki. The analysis finds that Tata Motors has the highest beta of 1.53, making it the most volatile compared to the market. Bajaj Auto has the lowest beta of 0.52, meaning it is the least volatile.

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71 views4 pages

Financial Management (FM) : Project Report

The document is a project report analyzing the automobile industry in India. It analyzes key financial metrics like annual return, standard deviation, beta, systematic risk, unsystematic risk, cost of equity, cost of debt, and weighted average cost of capital for 6 major automobile companies in India - Mahindra, Tata Motors, Hindustan Motors, Hero Motocorp, Bajaj Auto, and Maruti Suzuki. The analysis finds that Tata Motors has the highest beta of 1.53, making it the most volatile compared to the market. Bajaj Auto has the lowest beta of 0.52, meaning it is the least volatile.

Uploaded by

ismath
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Project Report

Financial Management (FM)

Industry: Automobile

Project Team: Group 4 (WMP 11th Batch)


S. No. Name Roll No. Email ID

1
About the Industry
The automotive industry is a wide range of companies and organizations involved in the design,
development, manufacturing, marketing, and selling of motor vehicles.[1] It is one of the
world's most important economic sectors by revenue. The automotive industry does not
include industries dedicated to the maintenance of automobiles following delivery to the end-
user, such as automobile repair shops and motor fuel filling stations.

About the Companies


Automobile
Hero Motocorp Ltd.
Bajaj Auto Limited
Tata Motors
Hindustan Motors
Maruti Suzuki
Mahindra

Project data _ Bajaj Auto Limited - Reena Prasad WMP WMP 11040 FM
FM_heromoto_PranavFM Project - Rajinder 11038
Pahwa.xlsx KumarFM Project
Sharma Project HM.xlsx
Tata Motors.xlsx
(WMP11037).xlsx

Beta Calculation -
Maruti_Saurabh.xlsx Swetank WMP
11042 FM _ Mahindra.xlsx

2
Result of Analysis

Hero Bajaj
Tata Hindustan Maruti NSE (Nifty
Parameters Mahindra Motocorp Auto
Motors Motors Udyog Ltd 50)
Ltd Ltd

Annual Return 18.76% 9.22% -26.09% -13.24% -2.35% -3.56% 26.33%

Standard Deviation 1.80% 2.52% 3.46% 1.48% 1.35% 1.70% 0.87%


Standard Deviation
28.00% 40.57% 54.25% 23.33% 21.04% 26.43% 13.49%
(Annualized)

Beta (β) 0.80 1.53 1.09 0.71 0.52 0.90 1.00

Systematic Risk 10.82% 26.66% 18.09% 11.33% 6.99% 15.04%

Unsystematic Risk 17.17% 13.92% 36.16% 12.01% 14.05% 11.39%

Cost of Equity (CoE) 13.56% 18.92% 15.93% 12.76% 11.07% 14.28%


Estimated Cost of Debt (CoD) 13.27% 14% 27.45% 5.85% 5.85% 5.85%
Weighted Average Cost of
12.65% 15.81% 19.90% 9.48% 11.00% 14.17%
Capital (WACC)

Conclusion of the study

Among all the companies, Tata is the most volatile company having Beta value 1.53. Bajaj Auto
corp. has the lowest Beta value 0.52, hence, does not vary much with the market changes.

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