EQUITY ANALYSIS WITH REFERENCE TO MONARCH NETWORTH CAPITAL LIMITED

ABSTRACT

The Present study covers all the information related to the Equities it also covers the risk and returns in Automobile industry. The study is confined only one Sector i.e. Automobile industry and the entire study is based upon their Stock prices for a period of last two years from 2020 (Jan-Mar 2020 and Jan-Mar 2021). The present study gives an insight into this issue by analyzing the Equity Share Prices of the Automobile industry with reference to BSE 500 index. Research design or research methodology is the procedure of collecting, analyzing and interpreting the data to diagnose the problem and react to the opportunity in such a way where the costs can be minimized and the desired level of accuracy can be achieved to arrive at a particular conclusion. The methodology used in the study for the completion of the project and the fulfillment of the project objectives.

The data that is used in this project is of secondary nature. The data is to be collected from secondary sources such as Company reports and Annual records and various websites, journals, newspapers, books, etc. the analysis used in this project has been done using selective technical tools. Beta, Risk and return analysis, Equity Share Values will be used to analysed the risk and return category of Automobile industry. Four companies were selected for the purpose of data analysis. They are: Tata Motors Ltd, Maruti Suzuki,Ashok Leyland and Bajaj Auto Ltd.Companies need to invest in diverse areas in order to minimize their risk and get optimum returns. In Equity market, risk is analysed and trading decisions are taken on basis of Risk and Return analysis. It is collecting share prices of the company for a period of three years .However, a company cannot blindly invest in everything in order to reduce its risk since it involves huge money and effort. So, it is important for a company to properly decide its portfolio and invest carefully.

INTRODUCTION

India is a developing country. Nowadays many people are interested to invest in financial markets especially on equities to get high returns, and to save tax in honest way. Equities are playing a major role in contribution of capital to the business from the beginning. Since the introduction of shares concept, large numbers of investors are showing interest to invest in stock market.

In an industry plagued with skepticism and a stock market increasingly difficult to predict and contend with, if one looks hard enough there may still be a genuine aid for the Day Trader and Short Term Investor.

The price of a security represents a consensus. It is the price at which one person agrees to buy and another agrees to sell. The price at which an investor is willing to buy or sell depends primarily on his expectations. If he expects the security's price to rise, he will buy it; if the investor expects the price to fall, he will sell it.

These simple statements are the cause of a major challenge in forecasting security prices, because they refer to human expectations. As we all know firsthand, humans expectations are neither easily quantifiable nor predictable. If prices are based on investor expectations, then knowing what a security should sell for (i.e., fundamental analysis) becomes less important than knowing what other investors expect it to sell for. That's not to say that knowing what a security should sell for isn't important--it is. But there is usually a fairly strong consensus of a stock's future earnings that the average investor cannot disprove

Fundamental analysis and technical analysis can co-exist in peace and complement each other. Since all the investors in the stock market want to make the maximum profits possible, they just cannot afford to ignore either fundamental or technical analysis.

NEED OF THE STUDY

Companies need to invest in diverse areas in order to minimize their risk and get optimum returns. However, a company cannot blindly invest in everything in order to reduce its risk since it involves huge money and effort. So, it is important for a company to properly decide its portfolio and invest carefully. The present study gives an insight into this issue by analyzing the Equity Share Prices of the Automobile industry with reference to BSE 500 index.

OBJECTIVES OF THE STUDY

To observe the rate of fluctuations in Equity share prices of Automobile industry.
To determine the amount of risk & returns involved in the securities of Automobileindustry.
To observe the degree of market volatility in Automobile industry.
To find the correlation between BSE 500 index and selected Automobile stock.

SCOPE OF THE STUDY

The study covers all the information related to the Equities it also covers the risk and returns in Automobile industry. The study is confined only one Sector i.eAutomobile industry and the entire study is based upon their Stock prices for a period of last two years i.e.,2015-16 and 2017-18.

REAEARCH METHODOLOGY

Research design or research methodology is the procedure of collecting, analyzing and interpreting the data to diagnose the problem and react to the opportunity in such a way where the costs can be minimized and the desired level of accuracy can be achieved to arrive at a particular conclusion. The methodology used in the study for the completion of the project and the fulfillment of the project objectives.

Source of data

Secondary data have been collected from the respective unit though manuals and annual reports of the company. Further the data collected from the historical/existing sources of data as databases, journals books articles, research reports, websites and etc.

Period of the study

The study is done for a period of 45 days in the organization where the necessary guidance and the information required for the project is provided.

Data analysis tools:

Beta, Risk and return analysis, Equity Share Values are used to analyze the risk and return category of Automobile industry.

Sample Size:

Four companies were selected for the purpose of data analysis. They are:

TATA MOTORS LTD.
MARUTI SUZUKI.
ASHOK LEYLAND.
BAJAJ AUTO LTD.

LIMITATIONS OF THE STUDY

The present project work has been undertaken to provide information regarding risk return on equity share prices of Automobile industry. The following are the limitations of the study.

The study is based on the secondary data which is available from various.
The study is limited to only one sector.
The time taken to undertaken the project work is very short; hence only One sector was chosen for the study.
The market index taken for the study in BSE 500 index.

For Complete Project Please Send a Message To projectaxistech@gmail.com

Search This Blog

MBA PROJECTS