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EAPM

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Suryakant Ojha
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11 views

EAPM

Report

Uploaded by

Suryakant Ojha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Submitted by

Bhumika Sharma 2352353


Malvika Sharma 2352101
Nitish Mathur 2352359
Priyanshu Sharma 2352133
Equity Analysis & Portfolio Management Suryakant Ojha 2352112

Report on fundamental and technical analysis of stocks


Presented to
Dr. Saima Rizvi
Overview of Stock Selection
We have selected a diverse portfolio of stocks, including BIOCON LTD., a leader in the
biotechnology industry; JSW STEEL & POWER LTD, a major player and operates
primarily in the steel industry. The company is involved in the manufacturing and
production of steel products, including flat and long products; HDFC BANK, a prominent
private sector bank offering comprehensive financial services; L&T, a leading Larsen &
Toubro, operates primarily in the engineering and construction industry; and
POWERGRID, Power Grid Corporation of India Limited, operates in the electric utility
sector. The company is primarily involved in the transmission of electricity and managing
the national power grid in India.

Biotechnology Industry BIOCON LTD.

Steel Industry JSW STEEL & POWER LTD.

Banking Sector HDFC BANK

Construction Industry L&T

Power Grid Industry POWER GRID

1
Fundamental Analysis of Stocks

ECONOMIC
ANALYSIS

FUNDAMENTAL
INDUSRTY
ANALYSIS
ANALYSIS

COMPANY
ANALYSIS

2
ECONOMIC ANALYSIS
Biocon Ltd. is positioned well in the biopharmaceutical sector, benefiting from
rising global demand for biosimilars and chronic disease treatments, though
regulatory challenges and R&D costs pose risks. JSW Steel & Power Ltd. is one of
India's largest steel producers, capitalizing on infrastructure growth and
urbanization, but faces volatility from raw material prices and global market
conditions. HDFC Bank stands out in the banking sector with strong asset growth
and low NPAs, driven by digital adoption and consumer credit demand, although it
remains sensitive to economic fluctuations. L&T, a leader in engineering and
construction, thrives on government infrastructure initiatives, but must navigate
project execution risks and economic cycles. POWERGRID, as a key player in
electricity transmission, benefits from stable revenues and government support for
renewable energy, while its performance is influenced by regulatory frameworks and
energy market dynamics. Overall, these companies are well-positioned within their
industries, though they face distinct challenges tied to market conditions and
regulatory environments.

INDUSTRY ANALYSIS
Biotechnology Industry (Biocon Ltd.)
Biocon Ltd. operates in the burgeoning biotechnology and biopharmaceutical
industry, which is driven by a growing global demand for innovative treatments,
particularly for chronic diseases. In FY 2022, Biocon reported a revenue of
approximately ₹7,750 crores, reflecting a growth of around 14%. For FY 2023, the
company aimed for a revenue growth of about 10%, with expectations to reach
around ₹8,500 crores. This growth is largely attributed to the increasing adoption of
biosimilars and a strong focus on R&D.

Steel Industry ( JSW STEEL & POWER LTD.)


JSW Steel & Power Ltd. operates in the steel manufacturing industry, which is
critical for infrastructure development and economic growth. In FY 2022, the
company reported a revenue of approximately ₹1.45 lakh crore, achieving a growth
of around 23% driven by robust demand in domestic and international markets. For
FY 2023, JSW aimed for continued growth of about 10%, with revenues projected
to reach around ₹1.6 lakh crore. The company benefits from its diversified product
portfolio and strong market presence but faces challenges from fluctuating raw
material costs and global steel price volatility.
3
Banking Sector (HDFC BANK)
HDFC Bank operates in the Indian banking and financial services sector,
characterized by strong growth driven by increasing digital adoption and rising
consumer credit demand. In FY 2022, the bank reported a revenue of approximately
₹1.66 lakh crore, reflecting a growth of about 18%. For FY 2023, HDFC Bank
projected a growth rate of around 15%, with expected revenues reaching
approximately ₹1.9 lakh crore. The bank's strong asset quality, low NPA ratio, and
extensive branch network position it favourably in a competitive landscape.
However, it must navigate challenges such as regulatory changes and economic
fluctuations.

Construction Industry(L&T)
Larsen & Toubro (L&T) operates in the engineering and construction industry, a
vital sector for infrastructure development in India. In FY 2022, L&T reported a
revenue of approximately ₹1.61 lakh crore, achieving a growth of around 10%
driven by robust demand for infrastructure projects across sectors such as
transportation, power, and urban development. For FY 2023, the company projected
a revenue growth of about 12%, targeting around ₹1.8 lakh crore. L&T benefits from
its diverse portfolio and strong order book, but it faces challenges related to project
execution, cost inflation, and competitive pressures.

Power Grid Industry (POWER GRID)


Power Grid Corporation of India Ltd. (POWERGRID) operates in the electric utility
sector, focusing on the transmission of electricity across the country. In FY 2022,
POWERGRID reported a revenue of approximately ₹45,000 crores, reflecting a
growth of around 12% due to increasing demand for electricity and ongoing
investments in infrastructure. For FY 2023, the company anticipated a growth rate
of about 10%, aiming for revenues around ₹49,500 crores. POWERGRID benefits
from a stable regulatory framework and a strong asset base, but it faces challenges
from evolving energy policies and competition in the renewable sector.

4
Company Analysis

BIOCON JSW STEEL & POWER HDFC


Company Name LTD. LTD BANK
L&T POWERGRID

Current Market Price 346.35 1033.75 1657.65 3493.95 338.85

CURRENT RATIO 3.99 0.08 29.32 1.76 1.12

P/B ratio 2.11 3.26 2.41 5.69 3.62

Book Value Per Share ₹ 90.89 ₹ 261.56 ₹ 600.77 ₹ 614.21 93.7

EPS ₹ 2.00 ₹ 36.34 ₹ 90.42 94.95 16.88

P/E ratio 56.92 18.1 17.2 36.8 20.07

Sector P/E 49.78 33.94 18.9 41.92 32.47

DEBT TO EQUITY
0.798 1.11 1.61 1.09 1.42
RATIO

Beta 1.1 1.28 1.01 1.43 1.28

SHAREHOLDING

Biocon JSW Steel HDFC Bank L&T Powergrid


Promoter 60.64 44.81 48.02 - 51.34
FII 5.9 25.52 - 22.85 28.73
DII 14.29 11.03 35.31 39.26 16.33
Public 18.9 18.3 16.67 37.88 3.6

5
Conclusion

Based on the analysis, which stock would yield the most return if invested?
Best stock for Investment: HDFC Bank
According to the analysis report, HDFC Bank shows strong growth in the banking
sector with a projected revenue increase and low Non-Performing Assets (NPA).
It has a relatively low P/E ratio (17.2) compared to other companies, indicating it
might be undervalued with a good potential for return. HDFC Bank appears to
have strong fundamentals, a favorable P/E ratio, and good growth potential,
making it likely to yield the most return if invested. However, investing decisions
should also consider personal risk tolerance and market conditions.

Alterntive-
Apart from HDFC Bank, the next best alternative for investment would be L&T
(Larsen & Toubro) because of it’s steady growth due to government
infrastructure initiatives, but has a higher P/E ratio (36.8), suggesting a higher
valuation risk.

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