A STUDY ON THE ANALYSIS OF PRICE MOVEMENT OF SHARES IN FMCG AND POWER

SECTOR
 CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION

This dissertation named “A study on the price movement of the shares and the annual performance of the
company with reference fmcg and power sector” analyses the various features the impact of price movements of the shares
of the performance of the particular companies. The fmcg and power sector trading in NSC nifty are taken for my study. For
that i followed the major steps of the economy, industry and company and also various tools and variables used for the
analyzing the unaudited quarterly financial reports.

REASONS FOR THE PRICE MOVEMENT OF SHARES

A specific may have a temporarily high price when for what everreason, there has been a high demand for
it. This demand may have nothing to do with the company it self but may rather relate to, for example an institute investor
trying to diversify out risk. There are various reasons for the price movement of the shares :-

 The market expects the earnings to rise rapidly in the future. For example a gold mining company
which has just begun to mine may not have made money yet but next quarter it will most likely find the gold and make a lot
of money. The same applies to pharmaceutical companies often a large amount of their revenue comes from the best few
patented products, so when a promising new product is approved, investors may buy up the stock.
 The company was previously making a lot of money, but in the last year or quarter it had a
special one time expense (called a “charge”) which lowered the earnings significantly. Stock holders understanding
(possibly incorrectly) that this was a one time issue, will still buy stock at the same price as before, and only sell at the least
that same price.
 Hype for the stock has caused people to buy the stock for a higher price than they normally
would. This is called bubble. One of the most important uses of the P/E metric is to decide whether a stock is undergoing a
bubble or anti-bubble by the comparing its P/E to similar companies. Historically, bubbles have been followed by crashes.
As such prudent investors try to stay out of them

 The P/E ratio (price-to-earnings ratio) of a stock (also called its "earnings multiple", or simply
"multiple", "P/E", or "PE") is a measure of the price paid for a share relative to the income or profit earned by the firm per
share. A higher P/E ratio means that investors are paying more for each unit of income. It is a valuation ratio included in
other financial ratios. The reciprocal of the P/E ratio is known as the earnings yield.

 The price per share (numerator) is the market price of a single share of the stock. The earnings
per share (denominator) is the net income of the company for the most recent 12 month period, divided by number of shares
outstanding. The EPS used can also be the "diluted EPS" or the "comprehensive EPS".
 For example, if stock A is trading at $24 and the Earnings Per Share for the most recent 12
month period is $3, then the P/E ratio is 24/3=8. Stock A said to have a P/E of 8 (or a multiple of 8). Put another way, the
purchaser is paying $8 for every one dollar of earnings.
 By relating price and earnings per share for a company, one can analyze the market's valuation of
a company's shares relative to the wealth the company is actually creating.
 One reason to calculate P/Es is for investors to compare the value of stocks. If one stock has a
P/E twice that of another stock, all things being equal, it is a less attractive investment. Companies are rarely equal,
however, and comparisons between industries, countries, and time periods may be misleading.
 The company has some sort of business advantage which seems to ensure that it will continue
make money for a long time with very little risk. Thus investors are willing to buy the stock even at a higher price for the
piece of mind that they all not loose their money.
 A large amount of money has been inserted into the stock market, out of proportion of the
growth of the companies across the same time period. Since there are only limited amount of stocks to buy, supply and
demand dictate that the price of the stocks must go up. This factor can make comparing P/E ratios over time difficult.

WHAT IS A PRICE?
To begin, we must first understand what price is, Financial theorists define stock price at the present
value of all future earnings expectation of the company, dividend by tis number of shares outstanding. What this means is
the earning capacity of the company is what defines the price. Often, companies can get significant value out of a relatively
small investments in the assets because the ability for those assets to make money is significant.

Even companies that loose money today can have a high share price because price is based on the future
earnings of the company. No enterprise is in the business to loose money, so the expectation is that every business will
make money some day. So long as there is a potential for the future revenue streams to shareholders, there will be a price
there some one will pay for the shares.

The earnings that a company could make in the future, the growth that the company could realize and the
time to the realization of those goals are factors which affect the estimate that market makes on the earnings potential
 THE MARKET MECHANISM

The value of the publicity traded shares is liquidity. Publicity traded companies are worth more than
private ones simply because there is greater access to buyers and sellers, and market efficiency can better determine share
price. The stock market provides value to any company that chooses to list its shares because the company gains liquidity.
In a theoretical sense, any time some one buys the shares of the company in the market, they are effectively stating that they
believe the shares of the company are undervalued. The fact that they are buying implies a belief and expectation that the
shares will increase in the future. At the same time, the person who is selling the share is experiencing the opposite belief.
By selling, they imply that the stock is over valued and the expectation that the stock will go lower in the future. In this
way, the stock market is forum for debate on what the value of the company and its shares.

FACTORS CAUSING MOVEMENTS IN STOCK PRICE

There are four factors that cause movements in stock price.

1. New information
2. Uncertainty
3. Psychological factors
a) Fear
b) Greed
4. Supply and Demand

1. New information
In any financial ext book it may only find this factor mentioned as the determinant of share price.
Information is the key as it gives the market a reason to value a stock at a particular price level. The market will price the
stock based on all the information that the public is aware of. As new information comes into the public realm, the market
will adjust the prices up and down based on how the market perceives the information will effect the future earnings
capacity of the company.

It is important to know how information flows from company to the public. The public is supposed to
learn new information through the insurance of news. The reality is that the information usually makes it out before the
news is released. Rumors play a big part in the flow of information, particularly today when technology allows for the rapid
and wide discrimination of the information. That close to the company has access to privileged information that they will
act upon by buying and selling in the market.

The ramification of this is that investors who wait for news to make investment decisions often get into
the stocks long after the information contened in the news has already been priced in. “Buy on rumer, and sell on news” is a
saying that has grown popular because it is often the case that stocks move up in anticipation of positive news and then sell
off when expectation is answered by the news released.

Technical analysis is very important because it provides tools that allows investors to identify the signs
that new information is been stocked into the market before the news is released. Stocks that trade abnormally often do so
because of the significant new information, both positive and negative. In this way technical analysis helps to reveal
fundamental changes in the company before the broader market is aware of it.

2. Uncertainty:
When the company will make in the future is far from certain. For this reason, we should expect the stocks
to bounce around a little bit because of the nervousness of the market about the future of the company. The uncertain future
of the company will bring some volatility in share prices even during a period in which there is no new information.
Companies that have established a performance record will tend to show less volatility as determined by
uncertainty. General motors which is a well established company with many years of revenues, will show less volatility
then an upset company that has not yet had an opportunity to establish a track record of revenues and earnings. Because of
uncertainty these stock will trade difficultly and will provide different kinds of trading opportunities.

4. Psychological factors
Humans are behind the activities of the trading market. That means human characteristics are also factors
in how share prices move.
Understanding human psychology is extremely important in evaluating investment opportunities because
human psychology creates and accentuates many of the opportunities that investors can capitalize on.
For example greed often causes stocks to go higher than they deserve to go.
By deserve I mean that they go higher than the present value of the future earnings potentials can justify.
New information can cause a freeze in the market that makes investors loose sight of rational valuation and simply buy the
for the fear of being left behind.
 Fear and greed present incorrect valuations in the market that can exist relatively for a short period but
long enough for smart investors for capitalizing on. Emotion in the market can be viewed for the amplification I pulled and
the stocks moves back to where it should reside based on the information of the company.

5. Supply and Demand

While popular stocks like dell and general motors trade millions of shares every day, the majority of the
stocks that we can choose to invest do not have much liquidity. As a result stocks that trade smaller value of shares are
subjected to fluctuation because of supply and demand. If a large share holder wants to sell a large number of shares into the
market with weak liquidity, the share holder can dramatically move share price.
Supply and demand can take the short term balance out of the market and present opportunities for
investors to see that the balance is restored. Investors can anticipate abnormal supply and demand verities can price reflects
all the information which is known about the company and the ability to make money in the future. As information about
the company’s prospects is made public, prices will change. Uncertainty of the failure can bring added volatility which
psychological factors can amplify the effect of new information. Finally supply and demand can cause fluctuations not
motivated by new information.

REASONS FOR THE COMPANIES TO CARE ABOUT THEIR STOCK PRICES

Companies live and die by their stock price, yet for the most part they don’t participate in trading their
stocks within the market. Companies receive money from the securities market only when they first sell the security to the
public in the primary market, which is commonly referred to an initial public offer

1.Those in Management are often Shareholders Too

The first and most obvious reason why those in management care about the stock market is that they typically have a
monetary interest in the company. It's not unusual for the founder of a public company to own a significant number the
outstanding shares, and it's also not unusual for the management of a company to have salary incentives or stock options
tied to the company's stock prices. For these two reasons, management acts as stockholders and thus pay attention to their
stock price.

2.Wrath of the Shareholders

Too often investors forget that stock means ownership. The job of management is to produce gains for the shareholders.
Although a manager has little or no control of share price in the short run, poor stock performance could, over the long run,
be attributed to mismanagement of the company. If the stock price consistently underperforms the shareholders'
expectations, the shareholders are going to be unhappy with the management and look for changes. In extreme cases
shareholders can band together and try to oust current management in a proxy fight. To what extent shareholders can
control management is debatable. Nevertheless, executives must always factor in the desires of shareholders since these
shareholders are part owners of the company.

3. Financing
Another main role of the stock market is to act as a barometer for financial health. Analysts are constantly scrutinizing
companies and reflecting this information onto its traded securities. Because of this, creditors tend to look favorably upon
companies whose shares are performing strongly. This preferential treatment is in part due to the tie between a company's
earnings and its share price. Over the long term, strong earnings are a good indication that the company will be able to meet
debt requirements. As a result, the company will receive cheaper financing through a lower interest rate, which in turn
increases the amount of value returned from a capital project.
Alternatively, favorable market performance is useful for a company seeking additional equity financing. If there is
demand, a company can always sell more shares to the public to raise money. Essentially this is like printing money, and it
isn't bad for the company as long as it doesn't dilute its existing share base too much, in which case issuing more shares can
have horrible consequences for existing shareholders.

4. The Hunters and the Hunted

Unlike private companies, publicly traded companies, if they allow their share price to decline
substantially, stand vulnerable to takeover by another company. This exposure is a result of the nature of ownership in the
company. Private companies are usually managed by the owners themselves, and the shares are closely held. If private
owners don't want to sell, the company cannot be taken over. Publicly-traded companies, on the other hand, have shares
distributed over a large base of owners who can easily sell at any time. To accumulate shares for the purpose of takeover,
potential bidders are better able to make offers to shareholders when they are trading at lower prices. For this reason,
companies would want their stock price to remain relatively stable, so that they remain strong and deter interested
corporations from taking them.

On the other side of the takeover equation, a company with a hot stock has a great advantage when
looking to buy other companies. Instead of having to buy with cash, a company will simply issue more shares to fund the
takeover. In strong markets this is extremely common - so much that a strong stock price is a matter of survival in
competitive industries.
5.Ego
Finally, a company may aim to increase share simply to increase their prestige and exposure to the public. Managers are
human too, and like anybody they are always thinking ahead to their next job. The larger the market capitalization of a
company, the more analyst coverage the company will receive. Essentially, analyst coverage is a form of free publicity
advertising and allows both senior managers and the company itself to introduce them to a wider audience.

For these reasons, a company's stock price is a matter of concern. If performance of their stock is ignored, the life of the
company and its management may be threatened with adverse consequences, such as the

DETERMINING THE SHARE PRICES

Share prices in traded company are determined by market supply and demand, and thus depend upon the
expectations of the buyers and sellers. Among these the following are important while investing
 The company’s future and recent performance
 Perceived risk
 New product lines
 Prospects for the companies of this type, the “market sector”
 Prevailing moods and fashions.

1.2 SUBJECT BACK GROUND OF THE STUDY

The impact of the price movement of the shares on annual performance of the companies continuous to be
an important research question in finance. Some companies enjoy high price o earnings ratio and other growth measures,
while the measure remains negligible for others, the result is that the investor needs t be more contingent that even before
the reasons the possibility underlying abbreviations in connections between stock price movements and annual
performance. Investors should consider whether the companies share is a good value, it is not always that the stock should
always be purchased of good performance of companies and sold on bad performance. This paper attempt to find the price
movement of the shares and the performance of their respective companies. It is apparently that there are extremely wide
day-to-day changes in the price quote on most of the stock exchanges. It is not possible to say whether it is economic or
psychological realities which are the major causes of the price fluctuatons in the stock markets. This is an important issue,
as it brings into account the analyzing the annual performance of companies and the price movements of the shares of that
particular companies to the investors.
The Indian automotive industry consists of five segments: commercial vehicles;
multi-utility vehicles & passenger cars; two-wheelers; three-wheelers; and
tractors. With 5,822,963 units sold in the domestic market and 453,591 units
exported during the first nine months of FY2005 (9MFY2005), the industry
(excluding tractors) marked a growth of 17% over the corresponding previous.
The two-wheeler sales have witnessed a spectacular growth trend since the mid
nineties.
Two-wheelers: Market Size & Growth
In terms of volume, 4,613,436 units of two-wheelers were sold in the country in
9MFY2005 with 256,765 units exported. The total two-wheeler sales of the
Indian industry accounted for around 77.5% of the total vehicles sold in the
period mentioned
Figure 1:Segmental Growth of the Indian Two Wheeler Indust

ry
(FY1995-2004)

After facing its worst recession during the early 1990s, the industry bounced
back with a 25% increase in volume sales in FY1995. However, the momentum
could not be sustained and sales growth dipped to 20% in FY1996 and further
down to 12% in FY1997. The economic slowdown in FY1998 took a heavy toll
of two-wheeler sales, with the year-on-year sales (volume) growth rate
declining to 3% that year. However, sales picked up thereafter mainly on the
strength of an increase in the disposable income of middle-income salaried
people (following the implementation of the Fifth Pay Commission's
recommendations), higher access to relatively inexpensive financing, and
increasing availability of fuel efficient two-wheeler models. Nevertheless, this
phenomenon proved short-lived and the two-wheeler sales declined marginally
in FY2001. This was followed by a revival in sales growth for the industry in
FY2002. Although, the overall two-wheeler sales increased in FY2002, the
scooter and moped segments faced de-growth. FY2003 also witnessed a healthy
growth in overall two-wheeler sales led by higher growth in motorcycles even
as the sales of scooters and mopeds continued to decline. Healthy growth in
two-wheeler sales during FY2004 was led by growth in motorcycles even as
the scooters segment posted healthy growth while the mopeds continued to
decline. Figure 1 presents the variations across various product sub-segments of
the two-wheeler industry between FY1995 and FY2004.
Demand Drivers
The demand for two-wheelers has been influenced by a number of factors over
the past five years. The key demand drivers for the growth of the two-wheeler
industry are as follows:
▪ Inadequate public transportation system, especially in the semi-urban and
rural areas;
▪ Increased availability of cheap consumer financing in the past 3-4 years;
▪ Increasing availability of fuel-efficient and low-maintenance models;
▪ Increasing urbanisation, which creates a need for personal transportation;
▪ Changes in the demographic profile;
▪ Difference between two-wheeler and passenger car prices, which makes two-
wheelers the entrylevel vehicle;
▪ Steady increase in per capita income over the past five years; and
▪ Increasing number of models with different features to satisfy diverse
consumer needs.

MARKET CHARACTERISTICS

Demand

Segmental Classification and Characteristics

The three main product segments in the two-wheeler category are scooters,
motorcycles and mopeds. However, in response to evolving demographics and
various other factors, other subsegments emerged, viz. scooterettes, gearless
scooters, and 4-stroke scooters. While the first two emerged as a response to
demographic changes, the introduction of 4-stroke scooters has followed the
imposition of stringent pollution control norms in the early 2000. Besides, these
prominent sub-segments, product groups within these sub-segments have
gained importance in the recent years. Examples include 125cc motorcycles,
100-125 cc gearless scooters, etc. The characteristics of each of the three broad
segments are discussed in Table 1.

Table 1

Two-Wheelers: Comparative Characteristics

Scooter Motorcycle Moped

Price*(Rs.
as in
> 22,000 > 30,000 > 12,000
January
2005)

2-stroke, 4- Mainly 4-
Stroke 2-stroke
stroke stroke

Engine
Capacity 90-150 100, 125, > 125 50, 60
(cc)

Ignition Kick/Electronic Kick/Electronic Kick/Electronic

Engine 6.5-9 7-8 and above 2-3

Power
(bhp)

Weight
90-100 > 100 60-70
(kg)

Fuel
Efficiency
50-75 50-80+ 70-80
(kms per
litre)

Load
High Highest Low
Carrying

*Ex-showroom Mumbai
Compiled by INGRES

Segmental Market Share

The Indian two-wheeler industry has undergone a significant change over the
past 10 years with the preference changing from scooters and mopeds to
motorcycles. The scooters segment was the largest till FY1998, accounting for
around 42% of the two-wheeler sales (motorcycles and mopeds accounted for
37% and 21 % of the market respectively, that year). However, the motorcycles
segment that had witnessed high growth (since FY1994) became larger than the
scooter segment in terms of market share for the first time in FY1999. Between
FY1996 and 9MFY2005, the motorcycles segment more than doubled its share
of the two-wheeler industry to 79% even as the market shares of scooters and
mopeds stood lower at 16% and 5%, respectively.
 Figure 2
Trends in Segmental Share in Industry Sales
(FY1996-9MFY2005)

While scooter sales declined sharply by 28% in FY2001, motorcycle sales

reported a healthy growth of 20%, indicating a clear shift in consumer
preference. This shift, which continues, has been prompted by two major
factors: change in the country's demographic profile, and technological
advancements.

Over the past 10-15 years the demographic profile of the typical two-wheeler
customer has changed. The customer is likely to be salaried and in the first job.
With a younger audience, the attributes that are sought of a two-wheeler have
also changed. Following the opening up of the economy and the increasing
exposure levels of this new target audience, power and styling are now as
important as comfort and utility.

The marketing pitch of scooters has typically emphasised reliability, price,

comfort and utility across various applications. Motorcycles, on the other hand,
have been traditionally positioned as vehicles of power and style, which are
rugged and more durable. These features have now been complemented by the
availability of new designs and technological innovations. Moreover, higher
mileage offered by the executive and entry-level models has also attracted
interest of two-wheeler customer. Given this market positioning of scooters and
motorcycles, it is not surprising that the new set of customers has preferred
motorcycles to scooters. With better ground clearance, larger wheels and better
suspension offered by motorcycles, they are well positioned to capture the
rising demand in rural areas where these characteristics matter most.

Scooters are perceived to be family vehicles, which offer more functional value
such as broader seat, bigger storage space and easier ride. However, with the
second-hand car market developing, a preference for used cars to new two-
wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few
years have witnessed a shift in preference towards gearless scooters (that are
popular among women) within the scooters segment. Motorcycles, offer higher
fuel efficiency, greater acceleration and more environment-friendliness. Given
the declining difference in prices of scooters and motorcycles in the past few
years, the preference has shifted towards motorcycles. Besides a change in
demographic profile, technology and reduction in the price difference between
motorcycles and scooters, another factor that has weighed in favour of
motorcycles is the high re-sale value they offer. Thus, the customer is willing to
pay an up-front premium while purchasing a motorcycle in exchange for lower
maintenance and a relatively higher resale value.
 Supply
Manufacturers

As the following graph indicates, the Indian two-wheeler industry is highly

concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto
Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over
80% of the industry sales as in 9MFY2005. The other key players in the two-
wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic
Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd
(Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and
Honda Motorcycle & Scooter India (P) Ltd (HMSI).

1.3 NEED FOR THE STUDY

 Investor’s wealth is precious. Hence needs to analyze the prevailing economic conditions of
the country and also the shares of the respective companies.
 Investment is the commitment of fund expectation with some positive rate o return and is
always associated with risk, may be diversifiable non- diversifiable or both for reducing the risk and increasing the return,
analyzing the securities, considering the price movement of the shares and performance of the companies is a must.
 As each investor has his own preference and choice of investments, considering the shares
and the relative movement of he shares and price movements with companies performances enables of getting better
portfolio.
 Portfolio management is assuming importance and more and more people are showing
interest in investing in companies which are doing good.
 CHAPTER -2

3.1 Review of literature

Chen, Roll, and Ross (1986) found that innovations in the spread between short and long interest rates,
expected inflation and unexpected inflation, industrial production and the spread between high and low grade bonds were
significant determinants of stock price movements, and concluded that this worked through the way in which risk was
priced by the market in particular that microeconomics risks were all significantly priced and seemed to replace other
variables which might be expected to influence the price such as the movements of a market portfolio.

Lee (1987) examined the role of fundamental analysis in the stock market.Specifically, market responses
to Abelson‟s fundamental analyses in Barron‟swereexplored. The analyses in Abelson‟s column were classified, according
to theircontents, into four categories. Market reactions to those different contents toanalyses were measured. Univariate t-
test, binomial Z-test, ANOVA F-test and Chi-square independence tests, were applied to chec the significance and the
uniformityof market reactions to various fundamental analyses. It was found that the marketreacted discriminatingly to the
contents of fundamental analyses and that investors
did not make significant monetary gains from the use of Abelson‟s analyses.

Brown (1989) examined a particular “exact” k-factor economy where each of the k-factors was priced and
contributes equally on an average to the variance of returns.Both factor analysis of security return and the analysis of each
value seemed to indicate that a market factor explain the major part of security returns. Authorsfound that such evidence
was consistent with an economy where there were in fact k“equally important” priced factors, each value analysis in all
context of such aneconomy will lead an investigator to the false inference that the one important“factor” is the returns on an
equally weighted marketing index.

Chan, Hamao, and Lakonishok (1991) tried to relate cross- sectional differences in returns on Japanese
stocks to the underlying behavior of four variables; earningyield, size, book-to-market ratio, and cash flow yield.
Alternative statistical specification and various estimation methods were applied to a comprehensive, high quality data set
that extends from 1971 to 1988. The sample includes both manufacturing and nonmanufacturing firms, companies from
both sections of theTokyo Stock Exchange, and also delisted securities. Authors‟ findings revealed a significant relationship
between these variables and expected returns in the Japanesemarket of the four variables considered, the book-to-market
ratio and cash flow yield
have the most significant positive impact on expected returns.

Chan, Hamao, and Lakonishok (1993) various method were used to estimate the effect the earnings
yield, company size, book-to-market ratio and cash flow yield on Japanese stock prices over the period 1971-88. The
authors used monthly data on all the stocks of the first and second section of the Tokyo stock exchange from January1971
to December 1988. The data set included both delisted stocks (123 companies over the period) and non- manufacturing
companies. The entire sample as of December 1988 included 1570 companies, 1130 of which are in the first section .The
findings revealed a significant relation between returns in the Japanese market and four fundamental variables Earning
yield, size, book-to-market ratio and cash flow yield. The performance of the book-to market ratio especially this variable is
statistically and economically the most important of the four variables investigated.The difference in average returns
between quartiles of firms ranked by the book-to-market ratio is 1.10 percent per month. Another variable, cash flow yield,
also has positive and generally significant impact of returns. The authors made no attempt to rationalize the general level of
such a value strategy, even if this entails sacrificing gpotentially superior performance in the long run.
 King, Sentana, and Wadhwani (1994) set out to explain the time – variation in theinternational
covariance between stock indices. They specified a model with bothobservable factors (economic variables) and
unobservable factors. They alsoallowed for time varying conditional variance of the factors by specifying GARCHtype
processes. The economic variables they used include: short and long- term interest rates, exchange rates, industrial
production, money supply, real oil price,real commodity price index, although they found these variables to be
ratherinsignificant in explaining linkage between stock markets compared to twounobservable factors.

Blume, Easley, and Ohara (1994) investigated the information role of volume andits applicability for
technical analysis. The authors developed a new equilibriummodel in which aggregate supply is fixed and traders receive
signals with differingquality. The paper shows that volume provides information on information qualitythat cannot be
deducted from the prices statistic. The paper showed how volume, information precision, and price movements relate, and
demonstrate how sequencesof volume and price can be information. The authors also showed that traderswhouse
information contained in market statistics do better than traders, who do not.Technical analysis thus arises as a natural
component agents learning process. As theanalysis suggests, introducing volume unrelated to the underlying information
structure would survey weakly the ability of uninformed traders to interpret marketinformation accurately.

Cochrane (1994) examined the causes of variation between GDP growth andstock returns using the
conventional VAR identification approach. In his analysis,he showed that substantial amount of variation is due to
transitory stocks. Hedefined the transitory shock from two perspectives – in relation to theconsumption/ GDP ratio and in
relation to the dividend/Price ratio. Transitoryshock to consumption – GDP ratio is a shock to GDP holding
consumptionconstant so that the shock does not affect consumption contemporaneously. Thefacts that the consumption
(GDP ratio did not forecast consumption growth andthat consumption was nearly a random walk this definition. Similarly,
he definedtransitory shocks to the dividend- price system as shocks to stock prices holdingdividends constant so that the
shock did not affect dividends contemporaneously.The fact that the dividend (price ratio may not forecast dividend growth
and thatdividend was nearly a random walk can justify this definition.

Caginalp and Balenorich (1996) generalized through the study that the assets flowmodel of the dynamic
of equity prices to multiple groups of investor with distinctstrategies and assessments of value applications include the
closed- end fund puzzle,government privatization, and marketing of initial and secondary offering ofequities. The
generalized model provides a theoretical foundation for the practice oftechnical analysis, in which price history and patterns
were examined in order toobtain an indication of future prices. The assets flow model, which was an extensionof price
adjusted due to disequilibria, tracks the finite assets of each groups andinvolved a preference function that was governed by
the price trend in addition tothe fundamental value of the equity. The system, which consisted of a system ofordinary
differential equations, uses parameters that characteristics the extent to
which investors preference were governed by trend versus fundamental value, andthe scales associated
with each motivation. The evolution toward equilibrium isfound to be much more complex than the monotonic change that
is implied bystandard prices theories. Finally, the time scale for the return to equilibrium, aconcept crucial to securities
marketing, was considered in a precise quantitativecontext.

Barbee, Mukherji, and Raines (1996) suggested that the sales-price ratio (SIP)may be a more reliable
indicator of firm‟s relative market valuation than PIE or B/Mbecause different accounting methods for depreciation and
inventory affect earningand book value of equity but not sales. Unlike P/E and B/M, S/P was also ameaningful measure of
value for all stocks because it cannot be negative. Barbee etal. found that S/P absorbs the rules of B/M, MYE, and P/E in
explaining U.S. stockreturns during the 1979-91 periods.

Mukherji, Dhatt, and Kim (1997) found that fundamental analysis of stock returnsin Korea revealed that
annual stock returns during the 1982-93 periods werepositively related to B/M, S/P, and D/E and negatively related to firm
size but notsignificantly related to E/P or Beta. The findings of the study also suggest that forKorean stocks, B/M, and S/P
were more consistent indicators of fundamental valuethan E/P. Furthermore, D/E was a more reliable proxy for risk than
that of beta.

Antoniou et al. (1997) The study was aimed to examine whether seeminglyefficient can, infact, be
predicted by the use of technical analysis of both pastvolume and part returns data. The study used daily closing prices for
63 stockstraded in the Istanbul Stock Exchange (ISE) in the period from January, 1988 toDecember, 1993. This paper
investigated the extent to which past volume, inconjunction with past returns, can predict returns from seemingly efficient
prices.The result revealed that technical analysis on volume can aid the prediction ofreturns which cannot be predicted by
the analysis of past returns in isolation. Thiswas particularly the case for low levels of trading volume. The results
presentedhere suggested that any assessment of the volume depicts the fact that market prices were not fully revealing.
Volume has a useful role to play that was captured
.
Barnhart and Barnhart (1998) Introductory investments course offers students aunique opportunity to
grasp the practical concepts of fundamental analysis. Theproject discussed in this article combines reading and reporting on
an investment“pro‟s” book that student enjoy with the fundamental analysis of two companies in asemester course. The
project described here is based on information from PeterLynch‟s one upon Wall Street and on common elements of
fundamental analysis.Also provided were details concerning information required in the project, sourcesof this information,
and the format used to present the material in the class. Itprovided students with the real world skills to analyze and make
intelligent decisionsabout investing in stocks. Results are presented that confirm the enhancement ofskills relevant to team
work, presentation, technical writing, and the inherent andother areas.

Abarbanell and Bushee (1998) examined whether the application of fundamentalanalysis can yield
significant abnormal return. The authors examined ninefundamental signals used by LT and AB as predictors of
contemporaneous returns.The source of return data was the 1995 CRSP daily NYSE/AMEX file. Main sampleincluded
observations from 1974-1988. The holdout sample covered the 1989-1993periods using a collection of signals that reflected
traditional rules of fundamentalanalysis related to contemporaneous change in inventories, accounts receivable,gross
margin, selling expenses, capital expenditure, effective tax rates, inventorymethods, audit qualification, and labor force
sales productivity. Authors form
portfolios t hat on an average 12 months cumulative size-adjusted abnormal return of
13.2 percent. The paper found evidence that the fundamental signals provideinformation about future
returns that is associated with future earning news.Moreover, a significant portion of the abnormal return was generated
aroundsubsequent earning announcement. Significant abnormal returns to the fundamentalstrategy were not earned after the
end of one year of return cumulative, indicatinglittle support for the idea that the signals capture information about the
multiple-year-ahead earnings was not immediately impounded in price or about long-termshifts in firm risk.

Sullivan, Timmermann, and White (1999) In this paper authors utilized white‟sReality check bootstrap
methodology to evaluate simple technical trading ruleswhile qualifying the data snooping bias and fully adjusting its effect
in the contextof the full universe from which the trading rules were drawn. Hence, for the firsttime, the paper presented a
comprehensive test of performance across all technicaltrading rules examined. The authors considered the study of Brock
(1992),expended their universe of 26 trading rules, applied the rules of 100 years of dailydate on the Dow Jones Industrial
Average, and determined the effects of data
snooping. This applied a new methodology that allowed researchers to control fordata snooping biases to
compute the statistical significance of investmentperformance while accounting for the dependencies resulting from
investigatingseveral investment rules. It summarizes in a single spastic the significance of thebest performing model after
accounting for data snooping.

Lo, Mamaysky, and Wang (2000) proposed a new approach to evaluate theefficiency of technical
analysis. The authors applied the goodness of fit andkalmogorov – smirnov tests to the daily returns of individual
NYSE/AMEX andNASDAQ stocks from 1962 to 1996 using data from the center for research insecurities prices (CRSP).
The authors found that certain technical patterns, whenapplied to many stocks over many time periods, do provide
incrementalinformation, especially from NASDAQ stocks. Authors‟ model suggested that
 technical analysis can be improved by using automated algorithms such as authors
and traditional patterns such as head- end – shoulders and rectangles, althoughsometime effective, need
not be optimal. By comparing the unconditionalempirical distribution of daily stock returns to the conditional
distributionconditioned on specific technical indicators such as head- end – shoulder ordouble- bottoms- authors found that
over the 31 year sample period, severaltechnical indicators do provide incremental information and may have some
practical value.

Fernado, Christan, and Simon (2000) tested the profitability of simple technicaltrading rule based on
Artificial Neural Network (ANN) model. They made a smallstudy on „The Profitability of Technical Trading Rules based
on Artificial NeuralNetwork: Evidence from the Madrid Stock Market‟. Their results were based onapplying this
investment strategy to the General Index of the Madrid stock market,and suggested that, in absence of trading costs, the
technical trading rule wasalways superior to buy-and-hold strategy for both the “bear” market and “bull”market and “stable”
market. On the other hand, they found that the buy-and-holdstrategy generated higher return than the trading rule based on
ANN for a sub-
period presenting upward trend (bull market).

Dickinson (2000) found evidence that an approach which combines both theinsights of the literature on
macroeconomics forces and the stock market and thework on international stock market integration can provide a suitable
empirical basison which to investigate the relationship between fundamental and the stock market.The studies concentrated
on the U.S. (New York) and three European stock markets(London, Paris and Frankfurt). This research has uncovered a
number of keymacroeconomics variables (e.g. output, inflation, interest rates) as significantdeterminants of stock market. In
particular it consider the extent to which correlationbetween international stock markets is a result of globalization of
financial market orwhether they reflect the integrated nature of the real economy, as represented bycommon elements key
macroeconomics variables.

Swanson, Rees, and Juarez (2001) examined developing Mexican equity marketand found out that the
value of fundamental analysis could contribute to generatehigher returns. The findings were that though five fundamental
analyses could helpto eunuch investors, the earnings of the companies were not the primary factor thatdetermines the share
movement.
 Beneish, Lee, and Tarpley (2001) used two-stage approach toward financialstatements analysis. In the
first stage, they used market based signals to identifylikely extreme performers. In the second stage, they use fundamental
signals todifferentiate between winners and losers among the firms identified as likelyextreme performers in the first stage.
Their result indicates the importance ofcarrying fundamental contextually.

Lai, Balachandher, and Nor (2001) examined the predictability of technicaltrading rules on the daily
returns of the Kuala Lumber Stock exchange compositeindex for the full sample period from January 1977 to December
1999, whichincludes both bull abs bear periods. The random walk model was tested byapplying the variance ratio and the
multiple variance ratio tests on the marketreturns. After testing for random walk in Malaysian stock market, the
predictability of two technical trading rules of the variables, length movingaverage (FMA) rule was
examined. The results indicated non- random loss ofsuccessive prices changes. The findings indicate no random walk in the
KLSE andimply a potential for technical trading rules to generate above average returns.This was verified by the
predictability of FMA and VMA rules examined in thisstudy and the significantly positive returns generated by these rules
even in thepresence of trading cost.

Kwon and Kish (2002) This study consisted of an empirical analysis on technicaltrading rules ( the
simple price moving average, the momentum, and tradingvolume) utilizing the NYSE value weighted index over the period
1962-1996 aswell as, three sub periods. The sample period included 8685 daily observationfrom 1 July 1962 to 31
December 1996. In addition to the full sample period, threesub periods (01/07/1962-31/12/1972, 01/01/1973-31/12/1984
and 01/01/1985-31/12/1996) were tested to determine if the value of the trading rules dissipateover time. The methodology
employed in this study included the tradition t- testand residual boot strap methodology utilizing random weak, GARCH- M
and
GARCH-M with some instrument variables. The result indicated that the technicaltrading rules add a
value to captive profit opportunity over a buy hold strategywhen the trading rules were applied to the different sub samples;
the results wereweaker in the last sub period, 1985-1996. This may imply that the market wasgetting efficient information
over the recent years because of technicalimprovements.

Mitra (2002) made a study on „Profiting from Technical Analysis in Indian StockMarket‟. Researcher
tried to find out a trading strategy that was profitable evenafter transaction cost. Author used daily closing prices of ACC,
Relianceindustries, State bank of India, and TISCO from the stock market published quotesduring the period Dec, 1995 to
Feb, 1999. Author used two tools for analysispurpose: (a) Moving average crossover (b) Use of filter rules. The trading
tools ormethods tested in the study were giving profitable results, which helps investor tobelieve that making profit in stock
market was not just a matter of chance. Authorconcluded that investors are not always right in enjoying the trading, but they
need
 to have an analytical and systematic approach to make trading profit on acumulative basis.

Sehgal and Garhyan (2002) evaluated whether share recommendation based ontechnical analysis
provide abnormal returns in the Indian capital market. Severalreturns measures have been employed including those
adjusted for market trend, riskand transaction costs. The study involved 21645 recommendations for 21 companiesusing 13
technical indicators. The mean return was found statistically significant forthe total period. But the gains disappear in the
case of market adjusted measures.The returns were found significant for the risk- adjusted measures and also after
theadjustment for transaction costs.

Moube and Jannach (2003) tried to find out which of the concepts of fundamentalanalysis were the most
important factors and indicators for the asset managersbasically for everyone questioned the first factor of look at the
financial state of thecompany, which was usually determined by such ratios as return easy returns, salesdevelopment, future
earnings, stability of balance sheets dept easily, equity ratio).Besides, majority of respondents mentioned such key valuation
concepts as price toearning and price to book value.

Wong, Manzar, and Chew (2003) focused on the role of technical analysis insignaling the timing of
stock market entry and exists through the study „HowRewarding is Technical Analysis Evidence from Singapore Stock
Market?‟ Teststatistics were introduced to test the performance of the most established of thetrend followers, the moving
average, and the most frequently used counter-trendindicator, the relative strength index. The result showed that, the
indicators can beused to generate significant positive return. It was found that member firms ofSingapore Stock Exchange
tend to enjoy substantial profit by applying technical
indicators. This could be the reason why most member firms do have their owntrading teams that rely
heavily on technical analysis.

Lucke (2003) made a study on the topic „Are Technical Trading Rules profitableEvidence for Head and
Shoulder Rules?‟ He focused on the prominent head andhoulder pattern as a representative trading rule which incorporate
varioustechnical‟ ideas such as smoothed trends, trend reversal, resistance levels andvolatility clustering. For various
combinations of the building bullocks of head andshoulder definitions, the result was generally negative Returns to head
andshoulder trading rules were not significantly positive and if there is any evidencefrom non-zero returns at all then it is
evidence for negative returns.

Osler (2003) documents clustering in currency stop loss and take profit orders,and used that clustering to
provide an explanation for two families predictionsfrom technical analysis: (1) tend to reverse course at predictable support
andresistance levels, and (2) tend to be usually rapid after series cross such levels. Thedata comprises stop level and take
profit orders placed at Natwest markets, a largeforeign exchange dealing bank, in three currencies pairs- dollar-yen, dollar-
UKpound, and Euro- dollar- from August 1, 1999, to April 11, 2000. All customerorders and the bulk of in house orders
were included. The data was first available
on individual currency stop loss and take profit orders. Take profit orders clusterparticularly strongly at
round numbers, which could explain the first prediction.Stop loss orders cluster strongly just beyond round numbers, which
could explainthe second prediction.

Shostak (2005) The stock market does not have a life of its own. Success or failureof the stock investing
is determined ultimately by the failure or success of thebusiness itself, which is undoubtedly true for the majority of cases.

Sehgal and Gupta (2005) aimed at providing insights about the ways to technicaltraders in the financial
market and the trading strategies that they adopt. The sampleconsists of 25 respondents. The respondents are investment
analysts, mutual fundmanagers, brokers, and active technical traders. It was a representative set of activeinvestors, as in the
study, authors were looking for a specialized sample involvingrespondents with a long experience in the stock market and a
reasonable length ofthe time spent on technical trading. The questionnaire was distributed personally byhand or through e-
mail to 50 individuals. It was observed that the samplerespondents tend to use technical analysis with fundamental analysis
for securityselection. They fit the technical tools mainly on the equity segment of the market
and relatively prefer their use during the market upturns. They further feel thatvolume indicators provide
independent information compared to price indicators.The survey findings should be extremely relevant for technical
traders who werecontinuously on the lookout for investment strategies to beat the market. Theyshould also be useful for
financial software developers who wished to know thatthey should explain the technical tool box. Finally, it has
implications for marketregulators and the investing community in general, as it should help, in a better way,in the
understanding the investors‟ behavior, in the short- run for the Indian Market.

Westerhoff (2005) The goal of this paper was to develop a novel stock marketmodel in which the orders
of the chartists are not only based on past prices but alsoon past trading volume and to set up an artificial laboratory to
explore theconsequences of trading breaks. The authors proposed a novel model andinvestigated the effectiveness of trading
breaks. The nonlinear model consisted oftwo types of traders: while fundamentalists expect prices to return toward
theirintrinsic value, cartelists extrapolate past price movements into the future.
Moreover, chartists condition their orders on past trading volume. The model isable to replicate several
stylized facts of stock markets such as facts tails andvolatility clustering. Using the model as artificial stock market
laboratory thestudy found that trading breaks have the power to reduce volatility and iffundamentals do not move too
strongly also mispricing.
 Das (2005) showed there was evidence that stock prices and interest rates possess acommon trend in many
of the countries he studied with the exception of India.However, there was strong evidence of common cycles for the other
countries.These findings provided support to the view that although bond markets and stockmarkets in these countries were
linked, this may not be through a common trend, butthrough a common cyclical pattern. From the policy point of view,
being linkedthrough a common cyclical pattern provided the advantage of better forecasting ordecomposition of stock price
change off acted by bank interest rate change.

Koller, Mare, and David (2005) asserted that significant deviation from intrinsic value was rare, and
markets revert to economic fundamentals discounted cash flow(DCF) analysis. But they also discovered three key
conditions for market deviations from economic fundamental which included irrational investor behavior, systematic
patterns of behavior across different investors, and limits to arbitrage financial markets the latter occurring where there were
no barriers to arbitrage leading to the exploitation of systematic patterns of irrational behaviour when these conditions all
apply, behavioral finance predicts that pricing biases infinancial markets can be both significant and persistent.

Hunjak and Cingula (2005) argued that neither technical nor fundamental analysis can be used on the
Croatian stock market due to low trading volumes and high volatility. The researchers have developed their model, which
according to their opinions should suit during the investment process on the Croatian stock market. Fundamental analysis
was assigned the weight of 8.1 percent, technical analysis 18.8 percent and the rest was dedicated to after factors, risk
(Market,political and development) - 34.1 percent, insider trading 31.6 percent and subjective estimation 7.3 percent.
Maillet and Michel (2005) found that unlike the findings for main dollar rates,there was no significant
technical analysis profitability for the Europeancurrencies. The significance of chartist performance did not depend,
unlikeprevious findings, on the length of the period over which the moving average wascomputed, although the return
differential between the naira and chartist strategieswas positive for almost every combination of short and long moving
average ofsome European currencies. The earlier results concluded that generally technical
analysis trading rules were profitable when applied to several US dollar exchangerates. These results were
linked to the presence of long swings in the dollar series,and here, it is tested whether they still hold in a different setting,
with a quasi-fixed exchange rate system. Applying non- parametric and parametric tests to themain European currencies
does not allow to confirm, in this case, the profitabilityof these rules. These results strengthen the like hood of the
hypothesis of a causallink from the exchange rate of DGP to the profitability of technical analysistrading rules, as already
highlighted in several articles.

Chang, Metghalchi, and Chan (2006) made a study on „Technical TradingStrategies and Cross-National
Information Linkage: The Case of Taiwan StockExchange‟. They tested four prevalent moving average technical trading
rules forTaiwan stock market through this study. They used daily Taiwan stock exchange‟sweighted price index from data
stream from 1983 to 2002. After that, theyinvestigated predictive power of trading strategies over buy-and-hold
strategy.They made suggestion from the results of this study that, technical rules repredictive for Taiwan stock market
applying the information reflected in the U.S.stock markets to project Taiwan stock market. This movement was
comparable tousing Taiwan stock market information in isolation because the two markets werestrongly correlated. Finally,
this study indicated that leverage/money strategyhelps investors to beat buy-and-hold strategy.

Chen and Li (2006) examined the problems of thin trading and inefficiency, useunadjusted and adjusted
returns, considered past volume in- conjunction with pastreturns, tried absolute and relative variable, in order to bring out
the value, if any,of technical analysis. This paper uses daily stock prices and the trading volume of constituent companies in
SZSE component. A- Share index on the Shenzhen stock exchange examine the usefulness of technical analysis. The
authors did notfind reasonably strong evidence supporting either spurious or genuine
predictability of returns, or that volume contains additional information omitted byprices, for the majority
of the 39 companies listed of the SZSE component A-share index and its constituent stocks are considered, the value of
technicalanalysis might have been exaggerated or overstated.

Becchetti and Giacomo (2007) found that the fundamental component of theearning price ratio (E/P) -
evaluated with two-state growth DFC Model- plays a crucial role in explaining the cross-sectional variability of the
AUTOMOBILE INDUSTRY

Abhijeet Singh and Brijesh Kumar (2011) Hero Honda Motors Ltd, is running a program called Good
life Passport to Relationship Reward, with an objective to create an innovative environment for interaction between Hero
Honda and its customers. Members of this program are given a magnetic card in which all information is stored and this
card is swiped when using any service at a showroom or workshop and it works like a loyalty benefit card. Abhijeet Singh
(2011) Tata Motors uses a customer relationship management and dealer management system (CRM-DMS) which
integrates one of the largest applications in the automobile industry, linking more than 1200 dealers across India.CRM DOS
has helped Tata Motors to improve its inventory management, tax calculation and pricing. This system has also proved to be
beneficial to dealers because it has reduced their working capital cost.
Arvind Saxena (2010) Director and Board member (marketing and sales), Hyundai Motor India (HMIL)
“No company in automobile sector can fight competition on price. Companies need to have the right product, distribution,
CRM and after sales service network to grow.
Biswajit Mahanty and Virupaxi Bagodi (2006) The success of two wheeler manufacturers in India
depends on the competitive advantage gained by them through after sales service and providing and maintaining customer
satisfaction in the face of rapid changes in technology is a difficult task, which can be overcome by timely addition of
capacity and upgrading of technical manpower and focusing on the CRM programs.
2 Biswajit Mahanty and Virupaxi Bagodi (2007) More than 55 million two-wheelers are moving on
Indian roads. Accordingly, two-wheeler service sector should have generated revenue amounting to INR 100,000 million
per year, but in reality, this has not been realised in the organised service sector, the Indian two-wheeler service industry has
not considered servicing as a line of business and providing conveniently reliable services is most important in two-wheeler
services in India to capture the market.
Biswajit Mahanty and Virupaxi Bagodi (2008) It is an era of customer delight for the two wheeler
industry and the conventional measures implemented by the service organizations tend to be inadequate to attract customers
persistently.
Gordon Fullerton (2006), “Putting relationship in CRM”, that JEEP, a division of Daimler Chrysler
Automobile Company, has served a classic example of CRM program that provides a considerable value to both the
customers and the firm by developing a program exclusively for jeep owners and fostered a community that is highly
effectively committed to the product, the brand and the customers.

Kevin Keller(2012) Caterpillar has become a leading firm by maximizing the total customer value with
the help of effective CRM , best after sales service in the industry and better trained dealer. This allows the firm to
command a premium price of 10% to 20% higher than competitors such as Volvo, Komatsu etc. Michael Cusumano, Steve

Kahl and Fernaando Suarez (2008) in their research paper “A theory of services in product industries”,
has concluded that in many product oriented industries, services have become increasingly important. In case of
automobiles, many automakers generate the vast majority of their profits from a service activity closely tied to their product
activity. The automobile industry overall generates a large portion of its profits from other product-related service activities
such as insurance and repairs. The authors argued that despite the seeming importance of services, there is not much theory
to help researchers or practitioners explain the 3 conditions under which services matter in product industries. The general
view that emerges from the services literature is that services tend to become important for manufacturing firms once their
industries reach a mature stage.

Milind Bade (2011) GM-Marketing, Bajaj Auto, has mentioned that Bajaj Auto Limited is currently
trying to move the industry from a commuter to a biker mindset and at present the focus of the company is on keeping the
sub brands and the mother brand different and the main motive behind establishing individual brand is to create
differentiation which would help Bajaj auto, as an organization to develop relationship easily with its customers. Mona J
Fitzsimmons (2010) has concluded that the profitability of automobile manufacturers depends on exploiting value added
services for instance automobile manufacturers have discovered that financing and after sales service can achieve
significant profits.

Oyama (2012) Honda Motor wants to be number one in the Indian market and the company wanted 30%
of Honda’s global sales to come from Indian operations by 2020. HMSI have had issues related to production in the past
with most of its models having the longest waiting period in the country, this reduced in Honda’s penetration in the rural
market, which is less than a third of Hero Moto Corp.
Pawan Chabra (2011) Nowadays every second bike sold in the premium segment is a pulsar and this
shows the dominance of Bajaj in the Indian market place, this was possible because the company has been regularly making
the alterations to make the motorbike look fresh at all times and Bajaj today holds over 50% market in the premium
segment (for FY 2010-2011) followed by a distant second largest player Honda Motorcycle & scooter India with a 19%
market share. 4
Pawan Chabra (2011) has mentioned that the death knell off Bajaj’s scooters business was sounded
when the company officially stopped the production of its flagship Chetak in December 2002, to get cracking on its
ambition of becoming a credible motorcycle brand manufacturer, the company invested big in R&D and product
development, but the company faced challenges in the sales and distribution because their dealers had little idea how to sell
motorcycles, so the entire dealership network was trained to sell motorcycles.

Philip Kotler(2012) Harley – Davidson dealers ranging from the CEO to the sales staff, maintain
personalized relationships with customers through face to face and social media contact. Knowing customers as individuals
and conducting ongoing research to keep up with their changing expectations and experiences which helps Harley –
Davidson to define their customers needs better.

R K Garg (2011) CRM requires a seamless, single view of the customer with consistent cross-channel
interaction models and it is recommend that companies bundle all internal CRM strategies into one comprehensive multi-
channel strategy. More over if the two wheeler manufacturer integrate CRM with SCM, then product design and production
planning can be aligned with the customer information available, to increase customer loyalty.

S.Saravan, N Panchanathan and S Pragadeeswaran (2009) concluded in their research paper “Markets
and Consumers- Consumer Behavior Towards Showroom Services of TwoWheeler with reference to Cuddalore District”
that students and employees are more satisfied about showroom service and age of consumer is an important factor while
choosing the brand of bike and all the consumers give importance all factors relating to buying a vehicle. 5 Shashank
Srivastava (2012) GM Maruti Suzuki has mentioned that the consumer is price conscious and the brand loyalty is
diminishing because of the number of options in each segment moreover the customers are ready to experiment today.
 Steve Kahl and Fernaando Suarez (2008) in their research paper “Product, Process, and Service: A New
Industry Lifecycle Model”, has concluded that Existing models of industry lifecycle evolution tend to focus on changes in
the products and processes and largely overlook the dynamics of services, but increasingly, the revenues of many firms are
becoming dominated by sales of services rather than products, or products sold with services to gain competitive
differentiation in markets marked by increasing product commoditization.

Susan Suffes (2006) Audi (UK), a leading manufacturer in the prestige automobile market implemented
CRM successfully and this helped Audi to develop a model to drive growth and engineer a dramatic turnaround by creating
a superior customer experience.
V.G. Ramakrishnan (2003) The vehicle servicing business in India is undergoing a transformation. In
early days, the servicing needs of the vehicles were undertaken mostly by roadside mechanics and a few organized
workshops. Companies need to focus on building a chain of authorized service stations covering the entire country to
service its vehicles. As the competition in the market has intensified and profit margins squeezed, companies need to view
servicing as a money spinner for the entire operation. In the recent years, other players have entered in the field and the
creation of national chain of organized workshops is underway and that is likely to change the nature of vehicle servicing
market in India.
 CHAPTER 3
COMPANY PROFILE

FMCG COMPANIES:

Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company; its journey
began 75 years ago, in 1933, when the company was first incorporated. In 1931, HUL set up its first Indian
subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited in the
year 1933 and United Traders Limited in 1935. These three companies merged to form Hindustan Unilever
Limited in November 1956.

In the year 1958 the company was started its Research Unit at Mumbai Factory namely The Hindustan
Unilever Research Centre (HLRC). HUL meets every day needs for nutrition, hygiene, and personal care
with brands that help people feel good, look good and get more out of life.

The notable thing in company's history is the company became the first foreign subsidiary in India to offer
equity to the Indian public. The company also partaking in sell abroad, the export business gives a sustain
growth to the company in every agenda. The company's Formal Exports Department was started in the year
1962 and HUL recognized by Government of India as Star Trading House in Exports in 1992. A turning
point to the company was guaranteed in the year 1993, HUL's largest competitor, Tata Oil Mills Company
(TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till
that time. Merger ultimately accomplished in December 1994. HUL forms Nepal Lever Limited in 1994,
HUL and US-based Kimberley-Clark Corporation form 50:50joint venture as Kimberley-Clark Lever Ltd to
market Huggies diapers and Kotex feminine care products. Factory was set up at Pune in 1995. HUL
acquired Kwality and Milk food 100% brand names and distribution assets accordingly HUL introduced
Wall's. The company and Indian cosmetics major, Lakme Ltd came to joint ventures and formed Lakme
Lever Ltd and HUL recognized as Super Star Trading House in1995.
service it renders to the community. HUL is focusing on health & hygiene education, women empowerment,
and water management. It is also involved in education and rehabilitation of special or underprivileged
children, care for the destitute and HIV-positive, and rural development. In 2001, the company embarked on
an ambitious program, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural
women, thereby improving their livelihood and the standard of living in rural communities. The company's
spotlight was turned on to Ayurvedic health & beauty, HUL entered Ayurvedic health & beauty centre
category with the Ayush range and Ayush Therapy Centres 2002.

During the year 2003 the company launched Hindustan Lever Network, a strong initiative by the company
worth of Rs.1800 crore for Direct Selling Channel. The company acquired Marine business from the
Amalgam group companies on March of the same year. In line with company's business strategy to exit non-
core business, the Company has disposed its Mushroom business, which formed part of KICM (Madras) Ltd
and its Seeds Business also in the year 2004.

As of December 2005, Lever India Exports Ltd, Lipton India Exports Ltd, Merry weather Food Products Ltd,
Toc Disinfectants Ltd and International Fisheries Ltd was merged with the company, both the five companies
are wholly owned subsidiaries of the company and Vasishti Detergents Ltd (VDL) came in to fold of the
company as a result of amalgamation of the Tata Oil Mills Company Ltd, VDL was merged with the
company in February, 2006. Modern Foods Industries (India) Ltd and Modern Foods & Nutrition Industries
Ltd was merged with itself as of September 30, 2006. In March 2007 "Sangam Direct" a non-store home
delivery retail business, operated by Unilever India Exports Limited (UIEL), a fully owned subsidiary was
transferred to Wadhavan Foods Retail Pvt. Ltd (WFRPL) on a slump sale business and also in same month of
the same year the company had carried out Demerger of its operational facilities in Shamnagar, Jamnagar
and Janmam lands into three independent and separate companies, being 100% subsidiaries of the company
known as Shamnagar Estates Pvt. Limited, Jamnagar Properties Pvt. Limited and Hindustan Kwality Walls
Foods Pvt. Limited. In June 2007, The Company has changed its name from Hindustan Lever Ltd (HLL) to
Hindustan Unilever Ltd (HUL).

Hindustan Unilever has been consistently recognized within India and globally by eminent organizations and
the government for its achievements in various fields. The organization has been recognized among others by
TERI, Far East Economic Review, Asian Wall Street Journal
and Business world. More recently, Hewitt Associates ranked Hindustan Unilever among the top four
companies globally in the list of Global Top Companies for Leaders. The Company was ranked number one
in the Asia-Pacific region and in India.

During 2008, Unilever announced its collaboration with the Indian Dental Association (IDA) in conjunction
with World Dental Federation (FDI) through its Pepsodent, leading oral care brand to help improve the oral
health and hygiene standards in India. The Demerger and transfer of certain immoveable properties of
Hindustan Unilever Limited to Brooke Bond Real Estates Private Limited was an event of the company on
April 2008.

HUL has more than 670 live patents and 700 million consumers use HUL brands in India as part of their
daily lives. The company moves with the mission of "add vitality to life" through its presence in over 20
distinct categories in Home & Personal Care Products and Foods & Beverages. HUL identified five key
platforms and have articulated goals, both short term and long term goals, stretching to 2015, would work in
areas of health & nutrition & women empowerment on the social front, the economic agenda would be to
enhance livelihoods and the environmental agenda would focus on water conservation and cutting green
house gases.

Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products
are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India. It has 39
factories in the country. Two out of three Indians use the company's products and HUL products have the
largest consumer reach being available in over 80 per cent of consumer homes across India. HUL was one of
the eight Indian companies to be featured on the Forbes list of World's Most Reputed companies in 2007.

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, and estimates
that two out of three Indians use its products. It has over 42 factories across India.

HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading
House by the Government of India.

In 2001, the company embarked on a programme called Shakti, through which it creates micro- enterprises
for rural women. Shakti also includes health and hygiene education through the Shakti Vani Programme,
which now covers 15 states in India with over 45,000 wome
 History of Indian Tobacco Company (ITC)

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its
gs were humble. A leased office on Radha Bazar Lane, Kolkata,was the centre of the Company's existence. ITC is one of
oremost private sector companies with a market capitalisation of over US $ 33 billion and a turnover of US $ 7 billion. ITC is
ong the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among
Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today. ITC ranks
ndia's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times.
ranks among Asia's 50 best performing companies compiled by Business Week.
a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods &
onery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While
n outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is
gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and
ry.
As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented.
n Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its
n to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this
hy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to
ng the competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on
tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain
ment and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a
nt share of these emerging high-growth markets in India.

3. Nestle India Ltd

 History of Nestle India Ltd

Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven actories and a large number of
ers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is
ed to long-term sustainable growth and shareholder satisfaction. It operates in the FMCG sector.

The Company insists on honesty, integrity and fairness in all aspects of its business and expects the
its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with
knowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.
as been a partner in India's growth for over nine decades now and has built a very special relationship of trust
mitment with the people of India. The Company's activities in India have facilitated direct and indirect
ment and provides livelihood to about one million people including farmers, suppliers of packaging materials,
and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of India and
e consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The
f innovation and renovation within the Company and access to the Nestlé Group's proprietary
gy/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct
ge in these efforts. It helps the Company to create value that can be sustained over the long term by offering
ers a wide variety of high quality, safe food products at affordable prices.

Nestlé India manufactures products of truly international quality under internationally famousbrand
uch as NESCAFÉ, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in
ears the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ
ilk, NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita.

Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of
e communities where it operates.

The strategic goals of NESTLENestle India Ltd wants to expand its baby food department. At present
ands 85% of the of the Rs1,500 crore infant foods and nutrition market with brands such as Cerelac and Nestum
oods) and Lactogen, Nestogen and Nan (infant milk). Farex from Heinz India Pvt. Ltd is its key competitor in
ods.

It is focusing mainly on this as Nestlé's baby food and nutrition comprise 66% of the company’s
 sales. Nestle has strong pricing power and superior profit margins in baby foods, which boosts profitability of
ment relative to Nestlé's average gross margins. Infant food and nutrition as a category will grow 10-12% and
well placed to capture growth in this category because it is at the forefront of infant foods technology. It has
ed innovations such as Nan 2, 3 and variants of Lactogen and Nestogen. They have also launched Nido, aimed at
al needs of children aged over two years.

The strategy is to establish a basis and then expand into more niches as demand rises. Other goals are
uct improvement and technological aspects such as process innovation.

Dabur Company:-

Dabur India Limited (DIL) was incorporated in 16th September of the ear 1975 for manufacture of
de edible & industrial guargum powder and its sophisticated derivatives. Now the it is one of the leading FMCG
es in India with building on a legacy

of quality and experience for over the years, Dabur is today India's most trusted name and the world's
Ayurvedic and Natural Health Care Company. The Company's FMCG portfolio includes five flagship brands
inct brand identities, which consists Dabur as the master brand for natural healthcare products, Vatika for
m personal care, Hajmola for digestives, Real for fruit-based drinks and Anmol for affordable personal care
.

An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet
ar 1978. After a year, in 1979, Dabur Research Foundation was set up and also commercial production of the
 dern herbal medicines plant was started at Sahibabad. DIL had launched the pharmaceutical medicines in the
8. During the year 1989, the company made a care with fun by the way of its business strategy, Ayurvedic
e formulation was converted into a children's fun product with the launch of Hajmola Candy. In an innovative
curative product was converted to a confectionary item for wider usage. During the year 1992, a new range of
oil under the brand name `Anmol' was launched. The company developed Dab 10, an intermediate for anti-
rug namely Taxol.

DIL had entered into a joint venture agreement with M/s. Guldenhorst BV Netherland to form a
y for manufacture and marketing of all types of bubble gum, chewing gum, toffees, chocolate, cocoa related
and sugar based spreading creams etc. The company entered into capital market, Dabur came out with its public
the year 1994 and also in the same year DIL had entered into oncology segment. An integrated facility was
d at Alwar for manufacture of Ayurvedic Veterinary range. The company had signed a MOU with Osein
onal Ltd for manufacture of biscuits, snack, foods & other products in India. During the year 1995, in addition to
ing products, the company had exported products like an improved version of Chyawanprash (with more honey
pungency) liquid form of Chyawanprash an aqueous based, hair vitalizer Melatonine etc. The Company had
nto foods business with the launch of Real Fruit Juice in the year 1996, the first local brand of 100%

pure natural fruit juices made to international standards. In 1997, The Company had set up a new
turing unit with a high degree of automation at Baddi (H.P.) to produce company's well- known brands viz.
nprash, Janma Ghunti, Ayurvedic Oils and Asva-Arishtas. Burman family hands over management of the
y to professionals in the year 1998. In the same year, Dabur had signed a joint venture with Bongrain
onal SA of France to form a new company under the name of Dabon International Ltd. After a year, in 1999,
entered into an agreement with its Spanish partner Agrolimen to offload its 49 per cent stake in the joint venture
y General De Confiteria India Ltd in favour of an Agrolimen group company.

During the year 2000, Dabur had launched Efarelle Comfort, a natural menstrual pain reliever and also
pany's ayurvedic specialties division has launched plain isabgol husk under the brand name Nature Care. Super
y drugs With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the
pecialised area of cancer therapy in the year 2001. In the year 2003, the company had demerged its
euticals business from the FMCG business into a separate company as part of plans to provider greater focus to
businesses. Also in the year 2003, DIL made its tie up with Free Markets Inc for using leading edge
 gies to execute online markets for its procurement needs. CRISIL assigned CRISIL GVC LEVEL 2 rating for
nce and value creation practices of the company. As a reflection of its constant efforts at achieving superior
tandards, Dabur became the first Ayurvedic products company to get ISO 9002 certification. Made tie up
hal for cancer drug in the year 2004 and also in the same year DIL had acquired a Nigerian company called
Consumer Care Ltd. During the year 2005, as part of the inorganic growth strategy, Dabur India acquired
s Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the
market for the consideration of Rs 143- crore all-cash deal. In the year 2006, Pasadensa Foods Ltd was

2. AUTOMOBILE SECTOR:

MOTORS LIMITED.

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20
lion) in 2016-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with
nning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck
anufacturer, and the world's second largest bus manufacturer.
Tata Motors Limited is India’s largest automobile company, reported gross revenue (stand-alone) of Rs.28599.27
ores (2007-08: Rs.33093.93 crores) in 2008-09, a year marked by severe demand contraction in the automobile industry.
venues (net of excise) for the year were Rs. 25660.79 crores compared to Rs.28739.41 crores in 2007-08, a decline of 10.7%.
e Profit before Tax was Rs.1013.76 crores compared to Rs.2576.47 crores in 2007-08, a decline of 60.7%. The Profit after Tax
the year was Rs.1001.26 crores compared to Rs.2028.92 crores, a decline of 50.7%. It is the leader in commercial vehicles in
ch segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility
hicle segments. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus
anufacturer.
2. MARUTI SUZUKI:

Maruti Suzuki is a subsidiary of Suzuki Motor Corporation Japan. More than half the numbers of cars sold in India
wear Maruti Suzuki badge. They offer a full range of cars – from entry level Maruti 800 & Alto to stylish hatchback
Ritz, A star, Swift, Wagon R, Estillo and sedans Dzire, SX4 and Sports Utility Vehicle Grand Vitara. Since inception,
it has produced and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other
countries. Its turnover for the fiscal 2015-16stood at Rs. 203,583 Million & Profit after Tax at Rs. 12,187 Million.
Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in
terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian
government, and 54.2% by Suzuki of Japan. As of May 10, 2007, Govt. of India sold its complete share to Indian
financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Suzuki India Ltd. has sold
a total of 84,808 vehicles in August 2016, an increase of 41.6%, compared to 59,908 vehicles in the same period of
2008. The company's domestic sales in August 2016 increased 29.3% to 69,961 vehicles, compared to 54,113 vehicles
in August 2008. Total passenger car sales in August 2016 increased 30.5% to 69,629 units, compared to 53,351 units
in August 2008 The company's exports increased 156.2% to 14,847 units, compared to 5,795 units in August 2008.
 3. MAHINDRA GROUP’S:

The Mahindra Group’s Automotive Sector is in the business of manufacturing and marketing utility vehicles and light
commercial vehicles, including three-wheelers. It is the market leader in utility vehicles in India since inception, and
currently accounts for about half of India’s market for utility vehicles. The Automotive Sector continues to be a leader
in the utility vehicle segment with a diverse portfolio that includes mass transport as well as new generation vehicles
like Scorpio, Bolero and the recently launched Xylo.
The Company operates in nine segments: automotive segment comprises of sales of automobiles, spare parts and
related services; farm equipment segment comprises of sales of tractors, spare parts and related services; information
technology (IT) services comprises of services rendered for IT and telecom; financial services comprise of services
relating to financing, leasing and hire purchase of automobiles and tractors; steel trading and processing comprises of
trading and processing of steel; infrastructure comprise of operating of commercial complexes, project management
and development; hospitality segment comprises of sale of timeshare; Systech segment comprises of automotive
components and other related products and services, and its others segment comprise of logistics, after-market, two
wheelers and investment. During the fiscal year ended March 31, 2011, the Company acquired a 70% stake in
Ssangyong Motor Company Limited.
 CHAPTER 4

4.1 DATA ANALYSIS & INTERPRETATION

RESEARCH METHODOLOGY

4.1 RESEARCH
Research is a process in which the researchers wish to find out the end result for a given problem and thus the
solution helps in future course of action. The research has been defined as “A careful investigation or enquiry
especially through search for new facts in branch of knowledge”

4.2 RESEARCH DESIGN

The research design used in this project is Analytical in nature the procedure using, which researcher has to
use facts or information already available, and analyze these to make a critical evaluation of the performance.

4.3 DATA COLLECTION

 Primary Sources
1. Data are collected through personal interviews and discussion with Finance-Executive.
2. Data are collected through personal interviews and discussion with Material
Planning- Deputy Manager.
 Secondary Sources
1. From the annual reports maintained by the company.
2. Books and journals pertaining to the topic.

 Ratio analysis.

4.5 Period of study

The present study has taken into account Five years viz., 2014-2018
4.1 :BALANCE SHEET FOR AUTOMOBLE INDUSTRIES

TATA MOTORS
Balance Sheet of Tata Motors ------------------- in Rs. Cr. -------------------

Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Sources Of Funds
Total Share Capital 634.65 570.60 514.05 385.54 385.41
Equity Share Capital 634.65 570.60 514.05 385.54 385.41
Share Application Money 3.06 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 19,351.40 14,208.55 11,855.15 7,428.45 6,458.39

Revaluation Reserves 24.19 24.63 25.07 25.51 25.95

Networth 20,013.30 14,803.78 12,394.27 7,839.50 6,869.75

Secured Loans 7,766.05 7,742.60 5,251.65 2,461.99 2,022.04
Unsecured Loans 8,132.70 8,883.31 7,913.91 3,818.53 1,987.10
Total Debt 15,898.75 16,625.91 13,165.56 6,280.52 4,009.14
Total Liabilities 35,912.05 31,429.69 25,559.83 14,120.02 10,878.89

Application Of Funds
Gross Block 21,883.32 18,416.81 13,905.17 10,830.83 8,775.80
Less: Accum. Depreciation 8,466.25 7,212.92 6,259.90 5,443.52 4,894.54
Net Block 13,417.07 11,203.89 7,645.27 5,387.31 3,881.26
Capital Work in Progress 4,058.56 5,232.15 6,954.04 5,064.96 2,513.32
Investments 22,624.21 22,336.90 12,968.13 4,910.27 2,477.00
Inventories 3,891.39 2,935.59 2,229.81 2,421.83 2,500.95
Sundry Debtors 2,602.88 2,391.92 1,555.20 1,130.73 782.18

Cash and Bank Balance 638.79 612.16 638.17 750.14 535.78

Total Current Assets 7,133.06 5,939.67 4,423.18 4,302.70 3,818.91

Loans and Advances 5,852.42 5,248.71 5,909.75 4,831.36 6,208.53

Fixed Deposits 1,790.13 1,141.10 503.65 1,647.17 290.98

Total CA, Loans & Advances 14,775.61 12,329.48 10,836.58 10,781.23 10,318.42

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 15,740.69 16,909.30 10,968.95 10,040.37 6,956.88

Provisions 3,222.71 2,763.43 1,877.26 1,989.43 1,364.32

Total CL & Provisions 18,963.40 19,672.73 12,846.21 12,029.80 8,321.20

Net Current Assets -4,187.79 -7,343.25 -2,009.63 -1,248.57 1,997.22

Miscellaneous Expenses 0.00 0.00 2.02 6.05 10.09

Total Assets 35,912.05 31,429.69 25,559.83 14,120.02 10,878.89

Contingent Liabilities 4,798.83 3,708.33 5,433.07 5,590.83 5,196.07

Book Value (Rs) 314.93 259.03 240.64 202.70 177.59

Profit & Loss account of Tata
------------------- in Rs. Cr. -------------------
Motors
Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Income
Sales Turnover 52,067.87 38,173.39 28,538.20 33,123.54 31,089.69
Excise Duty 4,110.63 2,800.10 2,877.53 4,355.63 4,425.44
Net Sales 47,957.24 35,373.29 25,660.67 28,767.91 26,664.25
Other Income 341.53 1,220.86 921.29 734.17 1,114.38
Stock Adjustments 354.22 606.63 -238.04 -40.48 349.68

Total Income 48,652.99 37,200.78 26,343.92 29,461.60 28,128.31

Expenditure
Raw Materials 35,047.05 25,366.12 18,801.37 20,891.33 19,879.56
Power & Fuel Cost 471.28 362.62 304.94 325.19 327.41
Employee Cost 2,294.02 1,836.13 1,551.39 1,544.57 1,367.83
Other Manufacturing Expenses 1,753.46 1,289.60 866.65 904.95 872.95
Selling and Admin Expenses 2,790.19 2,126.10 1,652.31 2,197.49 1,505.23
Miscellaneous Expenses 2,067.42 1,707.06 1,438.89 964.78 1,051.49
Preoperative Exp Capitalised -817.68 -740.54 -916.02 -1,131.40 -577.05
Total Expenses 43,605.74 31,947.09 23,699.53 25,696.91 24,427.42

Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Operating Profit 4,705.72 4,032.83 1,723.10 3,030.52 2,586.51
PBDIT 5,047.25 5,253.69 2,644.39 3,764.69 3,700.89
Interest 1,383.79 1,246.25 704.92 471.56 455.75
PBDT 3,663.46 4,007.44 1,939.47 3,293.13 3,245.14
Depreciation 1,360.77 1,033.87 874.54 652.31 586.29
Other Written Off 106.17 144.03 51.17 64.35 85.02

Profit Before Tax 2,196.52 2,829.54 1,013.76 2,576.47 2,573.83

Extra-ordinary items 0.00 0.00 15.29 0.00 -0.07

PBT (Post Extra-ord Items) 2,196.52 2,829.54 1,029.05 2,576.47 2,573.76

Tax 384.70 589.46 12.50 547.55 660.37

Reported Net Profit 1,811.82 2,240.08 1,001.26 2,028.92 1,913.46

Total Value Addition 8,558.69 6,580.97 4,898.16 4,805.58 4,547.86

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,274.23 859.05 311.61 578.43 578.07

Corporate Dividend Tax 192.80 132.89 34.09 81.25 98.25

Per share data (annualised)

Shares in issue (lakhs) 6,346.14 5,705.58 5,140.08 3,855.04 3,853.74

Earning Per Share (Rs) 28.55 39.26 19.48 52.63 49.65

Equity Dividend (%) 200.00 150.00 60.00 150.00 150.00

Book Value (Rs) 314.93 259.03 240.64 202.70 177.59

4. MARUTI SUZUKI

Balance Sheet of Maruti Suzuki

------------------- in Rs. Cr. -------------------
India
Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Sources Of Funds
Total Share Capital 144.50 144.50 144.50 144.50 144.50
Equity Share Capital 144.50 144.50 144.50 144.50 144.50
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 13,723.00 11,690.60 9,200.40 8,270.90 6,709.40
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 13,867.50 11,835.10 9,344.90 8,415.40 6,853.90
Secured Loans 31.20 26.50 0.10 0.10 63.50
Unsecured Loans 278.10 794.90 698.80 900.10 567.30
Total Debt 309.30 821.40 698.90 900.20 630.80
Total Liabilities 14,176.80 12,656.50 10,043.80 9,315.60 7,484.70
Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Application Of Funds
Gross Block 11,737.70 10,406.70 8,720.60 7,285.30 6,146.80
Less: Accum. Depreciation 6,208.30 5,382.00 4,649.80 3,988.80 3,487.10

Net Block 5,529.40 5,024.70 4,070.80 3,296.50 2,659.70

Capital Work in Progress 1,428.60 387.60 861.30 736.30 238.90

Investments 5,106.70 7,176.60 3,173.30 5,180.70 3,409.20

Inventories 1,415.00 1,208.80 902.30 1,038.00 713.20

Sundry Debtors 893.30 809.90 918.90 655.50 747.40

Cash and Bank Balance 95.50 98.20 239.00 324.00 114.80

Total Current Assets 2,403.80 2,116.90 2,060.20 2,017.50 1,575.40

Loans and Advances 1,626.30 1,739.10 1,809.80 1,173.00 1,072.60

Fixed Deposits 2,413.00 0.00 1,700.00 0.00 1,308.00

Total CA, Loans & Advances 6,443.10 3,856.00 5,570.00 3,190.50 3,956.00

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 3,805.20 3,160.00 3,250.90 2,718.90 2,288.60

Provisions 525.80 628.40 380.70 369.50 490.50

Total CL & Provisions 4,331.00 3,788.40 3,631.60 3,088.40 2,779.10

Net Current Assets 2,112.10 67.60 1,938.40 102.10 1,176.90

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 14,176.80 12,656.50 10,043.80 9,315.60 7,484.70

Contingent Liabilities 5,450.60 3,657.20 1,901.70 2,734.20 2,094.60

Book Value (Rs) 479.99 409.65 323.45 291.28 237.23

Profit & Loss account of Maruti

------------------- in Rs. Cr. -------------------
Suzuki India
Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Income
Sales Turnover 40,865.50 32,174.10 23,381.50 21,200.40 17,358.40
Excise Duty 4,304.00 2,856.40 2,652.10 3,133.60 2,552.00
Net Sales 36,561.50 29,317.70 20,729.40 18,066.80 14,806.40
Other Income 784.60 662.00 491.70 494.00 338.10
Stock Adjustments 73.20 200.90 -356.60 336.30 -200.70

Total Income 37,419.30 30,180.60 20,864.50 18,897.10 14,943.80

Expenditure
Raw Materials 28,880.00 22,636.30 15,983.20 13,958.30 10,863.00
Power & Fuel Cost 210.20 216.60 193.60 147.30 97.40
Employee Cost 703.60 545.60 471.10 356.20 288.40
Other Manufacturing Expenses 1,949.40 1,061.60 716.10 523.30 392.40
Selling and Admin Expenses 1,153.87 1,032.17 817.66 521.48 483.26
Miscellaneous Expenses 289.73 201.73 236.84 287.62 239.44
Preoperative Exp Capitalised -25.70 0.00 -22.30 -19.80 -14.30
Total Expenses 33,161.10 25,694.00 18,396.20 15,774.40 12,349.60

Operating Profit 3,473.60 3,824.60 1,976.60 2,628.70 2,256.10

PBDIT 4,258.20 4,486.60 2,468.30 3,122.70 2,594.20
Interest 24.40 33.50 51.00 59.60 37.60
PBDT 4,233.80 4,453.10 2,417.30 3,063.10 2,556.60
Depreciation 1,013.50 825.00 706.50 568.20 271.40
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 3,220.30 3,628.10 1,710.80 2,494.90 2,285.20
Extra-ordinary items 18.90 51.10 37.90 76.60 33.40
PBT (Post Extra-ord Items) 3,239.20 3,679.20 1,748.70 2,571.50 2,318.60
Tax 820.20 1,094.90 457.10 763.30 705.30

Reported Net Profit 2,288.60 2,497.60 1,218.70 1,730.80 1,562.00

Total Value Addition 4,281.10 3,057.70 2,413.00 1,816.10 1,486.60

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 216.70 173.30 101.10 144.50 130.00

Corporate Dividend Tax 35.10 28.80 17.20 24.80 21.90

Per share data (annualised)

Shares in issue (lakhs) 2,889.10 2,889.10 2,889.10 2,889.10 2,889.10

Earning Per Share (Rs) 79.21 86.45 42.18 59.91 54.07

Equity Dividend (%) 150.00 120.00 70.00 100.00 90.00

Book Value (Rs) 479.99 409.65 323.45 291.28 237.23

5. MAHINDRA AND MAHINDRA:

Balance Sheet of Mahindra and
------------------- in Rs. Cr. -------------------
Mahindra
Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Sources Of Funds
Total Share Capital 293.62 282.95 272.62 239.07 238.03
Equity Share Capital 293.62 282.95 272.62 239.07 238.03
Share Application Money 33.97 8.01 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 9,974.62 7,527.60 4,959.26 4,098.53 3,302.01
Revaluation Reserves 11.18 11.67 12.09 12.47 12.86

Networth 10,313.39 7,830.23 5,243.97 4,350.07 3,552.90

Secured Loans 407.23 602.45 981.00 617.26 106.65
Unsecured Loans 1,998.06 2,277.70 3,071.76 1,969.80 1,529.35
Total Debt 2,405.29 2,880.15 4,052.76 2,587.06 1,636.00
Total Liabilities 12,718.68 10,710.38 9,296.73 6,937.13 5,188.90
Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Application Of Funds
Gross Block 5,849.27 4,866.18 4,653.66 3,552.64 3,180.57
Less: Accum. Depreciation 2,841.73 2,537.77 2,326.29 1,841.68 1,639.12
Net Block 3,007.54 2,328.41 2,327.37 1,710.96 1,541.45
Capital Work in Progress 1,364.31 1,374.31 886.96 649.94 329.72
Investments 9,325.29 6,398.02 5,786.41 4,215.06 2,237.46
Inventories 1,694.21 1,188.78 1,060.67 1,084.11 878.48
Sundry Debtors 1,354.72 1,258.08 1,043.65 1,004.88 700.89
Cash and Bank Balance 447.62 475.17 635.61 310.58 415.89
Total Current Assets 3,496.55 2,922.03 2,739.93 2,399.57 1,995.26

Loans and Advances 2,653.52 2,034.47 1,402.45 866.19 1,011.50

Fixed Deposits 167.02 1,268.06 938.82 550.65 910.18

Total CA, Loans & Advances 6,317.09 6,224.56 5,081.20 3,816.41 3,916.94

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 5,289.67 3,822.50 3,520.20 2,525.31 2,138.77

Provisions 2,005.88 1,796.54 1,277.56 943.46 715.43

Total CL & Provisions 7,295.55 5,619.04 4,797.76 3,468.77 2,854.20

Net Current Assets -978.46 605.52 283.44 347.64 1,062.74

Miscellaneous Expenses 0.00 4.12 12.55 13.53 17.55

Total Assets 12,718.68 10,710.38 9,296.73 6,937.13 5,188.92

Contingent Liabilities 2,632.10 2,307.70 1,220.39 985.35 1,008.27

Book Value (Rs) 174.85 138.02 191.91 181.43 148.72

Profit & Loss account of Mahindra

------------------- in Rs. Cr. -------------------
and Mahindra
Mar
Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
‘18
Income
Sales Turnover 25,569.55 20,323.63 14,668.13 12,894.94 11,231.99
Excise Duty 2,092.02 1,807.30 1,587.05 1,584.57 1,310.65
Net Sales 23,477.53 18,516.33 13,081.08 11,310.37 9,921.34
Other Income 563.13 285.09 132.65 575.96 531.17
Stock Adjustments 202.23 23.69 -156.29 149.11 6.41
Total Income 24,242.89 18,825.11 13,057.44 12,035.44 10,458.92
Expenditure
Raw Materials 16,604.88 12,461.56 9,208.71 7,963.82 6,937.16
Power & Fuel Cost 143.93 120.97 98.69 91.33 65.19
Employee Cost 1,445.56 1,199.85 1,024.52 853.65 666.15
Other Manufacturing Expenses 98.33 96.92 75.36 73.35 68.80
Selling and Admin Expenses 1,735.63 1,439.26 1,109.96 1,108.33 891.29
Miscellaneous Expenses 261.10 264.21 165.83 257.84 210.03
Preoperative Exp Capitalised -50.87 -59.55 -42.83 -46.49 -47.10
Total Expenses 20,238.56 15,523.22 11,640.24 10,301.83 8,791.52

Operating Profit 3,441.20 3,016.80 1,284.55 1,157.65 1,136.23

PBDIT 4,004.33 3,301.89 1,417.20 1,733.61 1,667.40

Interest 70.86 156.85 134.12 87.59 19.80

PBDT 3,933.47 3,145.04 1,283.08 1,646.02 1,647.60

Depreciation 413.86 370.78 291.51 238.66 209.59

Other Written Off 0.00 0.00 0.00 0.59 0.33

Profit Before Tax 3,519.61 2,774.26 991.57 1,406.77 1,437.68

Extra-ordinary items 0.00 72.49 48.97 0.00 -19.19

PBT (Post Extra-ord Items) 3,519.61 2,846.75 1,040.54 1,406.77 1,418.49

Tax 857.51 759.00 199.69 303.40 350.10

Reported Net Profit 2,662.10 2,087.75 836.78 1,103.37 1,068.39

Total Value Addition 3,633.68 3,061.66 2,431.53 2,338.01 1,854.37

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 706.08 549.52 278.83 282.61 282.23

Corporate Dividend Tax 96.56 74.23 33.23 38.48 42.50

Per share data (annualised)

Shares in issue (lakhs) 5,872.47 5,659.08 2,726.16 2,390.73 2,380.33

Earning Per Share (Rs) 45.33 36.89 30.69 46.15 44.88

Equity Dividend (%) 230.00 190.00 100.00 115.00 115.00

Book Value (Rs) 174.85 138.02 191.91 181.43 148.72

RATIO ANALYSIS:

EARNINGS PER SHARE

 Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Tata Motors 28.55 39.26 19.48 52.63 49.65
Maruti 79.21 86.45 42.18 59.91 54.07
Mahindra 45.33 36.89 30.69 46.15 44.88

EARNING PER SHARE

100

80

60 Tata Motors
Maruti
40
Mahindra
20

0
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Interpretations
EPS measures the profit available to the equity shareholders per share, that is the amount that they can get on every
share held. Till 2017 TATA and Maruti had a rising EPS but in 2018both of them fall and the effect is more on Tata
motors because of the slump in domestic and international markets and sharp fall in sales and net profits which
resulted in low EPS. Mahindra is not much affected as its sales have increased from the previous year. But as trend
shows Mahindra motors has potential so a shareholder can expect better in future.
SALES
Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14
Tata Motors 52,067.87 38,173.39 28,538.20 33,123.54 31,089.69

Maruti 40,865.50 32,174.10 23,381.50 21,200.40 17,358.40

Mahindra 25,569.55 20,323.63 14,668.13 12,894.94 11,231.99

SALES
60,000.00

50,000.00

40,000.00
Tata Motors
30,000.00 Maruti

20,000.00 Mahindra

10,000.00

0.00
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Interpretations
Maruti and Mahindra show a positive trend in sales over the past five years. Though slowdown in the economy
brought hurdles but these companies have potential to grow in future as lots of products are still to add in their
portfolio. Moreover increased demand in foreign market also seems to be a positive signal for better future. TATA has
witnessed a decline in sales of each segment. Maruti and Mahindra are going swiftly.
DIVIDEND PER SHARE

Mar ‘18 Mar ‘17 Mar Mar ‘15 Mar ‘14

‘16
Tata Motors 20 15 6 15 15

Maruti 7.5 6 3.5 5 4.5

Mahindra 11.5 9.5 10 11.5 11.5

DIVIDEND PER SHARE

20
18
16
14
12 Tata Motors
10 Maruti
8
Mahindra
6
4
2
0
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Interpretations
Tata motors and Maruti Suzuki both the companies showed a positive trend in paying dividends till 2008, but the
scenario changed in 2016 as both the company’s dividend
per share fell but again raised from 2017 . According to graph Tata’s dividend has fallen drastically while Maruti stick
to below 5 per share. Mahindra has made a slight reduction from rs.11.5 per share in 2008 to rs.10 per share this year.
Therefore Mahindra would be the best option for an investor.

RETURN ON INVESTMENT (ROI)

 Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14

Tata 9.06 15.15 8.09 25.98 28

Motors
Maruti 16.5 21.1 13.04 20.56 22.79

Mahindra 25.92 26.74 16.03 25.51 30.18

RETURN ON INVESTMENT (ROI)

40

30
Tata Motors
20 Maruti

10 Mahindra

0
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Interpretations
ROI is one of the most important ratios used for measuring the overall efficiency of a firm and determines whether the
investments in the firms are attractive or not. According the graph, ROI of TATA has declined to a large extent in
2016, making it a quite risky investment. Maruti’s ROI has also declined but Mahindra’s ROI is showing a higher rate
compared to TATA and Maruti in 2016. As the investors would like to invest only where the return is higher,
Mahindra would be attractive for investment.
DIVIDEND PAYOUT RATIO

Mar ‘18 Mar ‘17 Mar ‘16 Mar ‘15 Mar ‘14

Tata 80.96 44.28 34.52 32.51 35.34

Motors
Maruti 11 8.09 9.7 9.78 9.72

Mahindra 30.15 29.87 37.29 29.1 30.39

DIVIDEND PAYOUT RATIO

90
80
70
60
Tata Motors
50
Maruti
40
30 Mahindra
20
10
0
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Interpretations

Dividend payout ratio is the percentage of earnings paid to shareholders in dividends. It provides an idea to an
investor of how well earnings support the dividend payments. Maruti has maintained a stable payout ratio. Both
TATA and Mahindra have increased their payout ratio in which Mahindra shows a higher payout ratio.
FMCG SECTOR:

Financial report Indian Tobacco Company (ITC)

Profit and Loss A/C (Rs. in Crores)

Particulars Mar ‘18 Mar ‘17 Mar '09

Income
Sales Turnover 30633.57 26399.63 23247.84
Excise Duty 9512.74 7832.18 8262.03
Net Sales 21120.83 18567.45 14985.81
Other Income 775.76 545.05 426.21
Stock Adjustments 308.42 -447.54 630.3
Total Income 22205.01 18664.96 16042.32
Expenditure
Raw Materials 8601.13 7140.69 6864.96
Power & Fuel Cost 421.68 387.34 394.12
Employee Cost 1178.46 1014.87 903.37
Other Manufacturing Expenses 560.57 413.79 402.88
Selling and Admin Expenses 2408.03 2093.87 1684.41
Miscellaneous Expenses 1120.89 1008.91 516.9
Preoperative Exp Capitalised -60.54 -71.88 -72.55
Total Expenses 14230.22 11987.59 10694.09

Operating Profit 7199.03 6132.32 4922.02

PBDIT 7974.79 6677.37 5348.23
Interest 78.11 90.28 47.65
PBDT 7896.68 6587.09 5300.58
Depreciation 655.99 608.71 549.41
Other Written Off 0 0 0
Profit Before Tax 7240.69 5978.38 4751.17
Extra-ordinary items 35.21 48.65 81.52
PBT (Post Extra-ord Items) 7275.9 6027.03 4832.69
Tax 2287.69 1965.43 1565.13
Reported Net Profit 4987.61 4061 3263.59
Total Value Addition 5629.09 4846.9 3829.13
Preference Dividend 0 0 0
Equity Dividend 3443.47 3818.18 1396.53
Corporate Dividend Tax 558.62 634.15 237.34

Per share data (annualised)

Shares in issue (lakhs) 77381.44 38181.77 37744
Earning Per Share (Rs) 6.45 10.64 8.65
Equity Dividend (%) 445 1000 370
Book Value (Rs) 20.55 36.69 36.24
 Balance Sheet (Annual) (Rs. in
Crores)

Particulars Mar ‘18 Mar ‘17 Mar '09

Sources Of Funds
Total Share Capital 773.81 381.82 377.44
Equity Share Capital 773.81 381.82 377.44
Share Application Money 0 0 0
Preference Share Capital 0 0 0
Reserves 15126.12 13628.17 13302.55
Revaluation Reserves 53.34 54.39 55.09
Networth 15953.27 14064.38 13735.08
Secured Loans 1.94 0 11.63
Unsecured Loans 97.26 107.71 165.92
Total Debt 99.2 107.71 177.55
Total Liabilities 16052.47 14172.09 13912.63
Application Of Funds
Gross Block 12765.82 11967.86 10558.65
Less: Accum. Depreciation 4420.75 3825.46 3286.74
Net Block 8345.07 8142.4 7271.91
Capital Work in Progress 1333.4 1008.99 1214.06
Investments 5554.66 5726.87 2837.75
Inventories 5267.53 4549.07 4599.72
Sundry Debtors 907.62 858.8 668.67
Cash and Bank Balance 98.77 120.16 68.73
Total Current Assets 6273.92 5528.03 5337.12
Loans and Advances 2173.89 1929.16 2150.21
Fixed Deposits 2144.47 1006.12 963.66
Total CA, Loans & Advances 10592.28 8463.31 8450.99
Deffered Credit 0 0 0
Current Liabilities 5668.1 4619.54 4121.59
Provisions 4104.84 4549.94 1740.49
Total CL & Provisions 9772.94 9169.48 5862.08
Net Current Assets 819.34 -706.17 2588.91
Miscellaneous Expenses 0 0 0
Total Assets 16052.47 14172.09 13912.63

Contingent Liabilities 251.78 258.73 261.36

Book Value (Rs) 20.55 36.69 36.24
Key Financial Ratios

Particulars Mar ‘18 Mar ‘17 Mar '09

Investment ValuationRatios
Face Value 1 1 1
Dividend Per Share 4.45 10 3.7
Profitability Ratios
Operating Profit Margin(%) 34.08 33.02 32.84
Net Profit Margin(%) 22.91 21.3 21.18
Return On Net Worth(%) 31.36 28.98 23.85

Liquidity And Solvency Ratios

Debt Equity Ratio 0.01 0.01 0.01

Management Efficiency Ratios

Inventory Turnover Ratio 6.05 6.04 5.26
Debtors Turnover Ratio 23.91 24.31 21.32
Working capital turnover Ratio 25.78 -26.29 5.79

Cash Flow Indicator Ratios

Dividend Payout Ratio 0.69 0.94 0.43
Sales growth % 13.75 23.90 6.80
Earnings Per Share 6.45 10.64 8.65
Financial report Nestle India Ltd

Profit and Loss A/C (Rs. in

Crores)

Particulars Dec '11 Dec '10 Dec '09

Income
Sales Turnover 7682.22 6382.78 5232.59
Excise Duty 191.4 122.57 90.69
Net Sales 7490.82 6260.21 5141.9
Other Income 12.35 27.25 14.26
Stock Adjustments 56.93 83.67 6.3
Total Income 7560.1 6371.13 5162.46
Expenditure
Raw Materials 3671.64 3168.18 2478.94
Power & Fuel Cost 295.81 219.2 158.87
Employee Cost 546.46 433.44 432.38
Other Manufacturing Expenses 120.49 110.91 94.05
Selling and Admin Expenses 1200.14 1026.88 839.22
Miscellaneous Expenses 159.07 130.66 115.98
Preoperative Exp Capitalised 0 0 0
Total Expenses 5993.61 5089.27 4119.44

Operating Profit 1554.14 1254.61 1028.76

PBDIT 1566.49 1281.86 1043.02
Interest 9.06 1.07 1.4
PBDT 1557.43 1280.79 1041.62
Depreciation 153.33 127.75 111.27
Other Written Off 0 0 0
Profit Before Tax 1404.1 1153.04 930.35
Extra-ordinary items 0 0 0
PBT (Post Extra-ord Items) 1404.1 1153.04 930.35
Tax 426.38 326.45 261.97
Reported Net Profit 961.55 818.66 655
Total Value Addition 2321.97 1921.08 1640.5
Preference Dividend 0 0 0
Equity Dividend 467.62 467.62 467.62
Corporate Dividend Tax 75.39 77.2 79.47

Per share data (annualised)

Shares in issue (lakhs) 964.16 964.16 964.16
Earning Per Share (Rs) 99.73 84.91 67.94
Equity Dividend (%) 485 485 485
Book Value (Rs) 132.13 88.72 60.29
 Balance Sheet (Annual) (Rs. in
Crores)

Particulars Dec '11 Dec '10 Dec '09

Sources Of Funds
Total Share Capital 96.42 96.42 96.42
Equity Share Capital 96.42 96.42 96.42
Share Application Money 0 0 0
Preference Share Capital 0 0 0
Reserves 1177.54 759 484.85
Revaluation Reserves 0 0 0
Networth 1273.96 855.42 581.27
Secured Loans 0.84 0 0
Unsecured Loans 970.03 0 0
Total Debt 970.87 0 0
Total Liabilities 2244.83 855.42 581.27
Application Of Funds
Gross Block 2552.21 1854.7 1640.79
Less: Accum. Depreciation 976.46 841.96 744.59
Net Block 1575.75 1012.74 896.2
Capital Work in Progress 1418.64 348.91 79.63
Investments 134.37 150.68 203.26
Inventories 734.04 575.95 498.74
Sundry Debtors 115.42 63.29 64.19
Cash and Bank Balance 25.55 19.45 26.73
Total Current Assets 875.01 658.69 589.66
Loans and Advances 256.36 200.17 184.85
Fixed Deposits 201.66 235.84 128.86
Total CA, Loans & Advances 1333.03 1094.7 903.37
Deffered Credit 0 0 0
Current Liabilities 1113.13 843.68 666.39
Provisions 1103.83 907.94 834.79
Total CL & Provisions 2216.96 1751.62 1501.18
Net Current Assets -883.93 -656.92 -597.81
Miscellaneous Expenses 0 0 0
Total Assets 2244.83 855.41 581.28

Contingent Liabilities 0 0 63.07

Book Value (Rs) 132.13 88.72 60.29
Key Financial Ratios

Particulars Dec '11 Dec '10 Dec '09

Investment Valuation Ratios

Face Value 10 10 10
Dividend Per Share 48.5 48.5 48.5
Profitability Ratios
Operating ProfitMargin(%) 20.53 19.91 19.74
Net Profit Margin(%) 12.75 13 12.67
Return On Net Worth(%) 75.47 95.7 112.68

Liquidity And Solvency Ratios

Debt Equity Ratio 0.76 -- --

Management Efficiency Ratios

Inventory Turnover Ratio 11.6 12.33 11.61
Debtors Turnover Ratio 83.83 98.22 93.68
Working capital turnover Ratio -8.47 -9.53 -8.60

Cash Flow Indicator Ratios

Dividend Payout Ratio 0.05 0.06 0.07
Sales growth % 19.66 21.75 18.79
Earnings Per Share 99.73 84.91 67.94
Financial report of Dabur Company

Profit and Loss A/C (Rs. in

Crores)

Particulars Mar ‘18 Mar ‘17 Mar '09

Income
Sales Turnover 3305.42 2891 39.16 2435.85
Excise Duty 30.99 23.58 78.31 27.52
Net Sales 3274.43 2867.42 3391.9 2408.33
Other Income 39.16 27.95 39.16 29.3
Stock Adjustments 78.31 9.68 78.31 38.89
Total Income 3391.9 2905.05 3391.9 2476.52
Expenditure
Raw Materials 1740.68 1393.97 35.43 1271.74
Power & Fuel Cost 42.39 35.43 212.34 36.63
Employee Cost 230.84 212.34 22.74 167.32
Other Manufacturing Expenses 25.21 22.74 557.26 17.59
Selling and Admin Expenses 589.09 557.26 103.84 425.16
Miscellaneous Expenses 100.15 103.84 35.43 84.68
Total Expenses 2728.36 2325.58 212.34 2003.12

Operating Profit 624.38 551.52 13.28 444.1

PBDIT 663.54 579.47 566.19 473.4
Interest 12.93 13.28 31.91 14.47
PBDT 650.61 566.19 5.66 458.93
Depreciation 37.73 31.91 528.62 27.42
Other Written Off 16.6 5.66 -0.19 3.94
Profit Before Tax 596.28 528.62 528.43 427.57
Extra-ordinary items 0.25 -0.19 13.28 -0.72
PBT (Post Extra-ord Items) 596.53 528.43 566.19 426.85
Tax 124.85 93.7 51.44
Reported Net Profit 471.41 433.33 13.28 373.55
Total Value Addition 987.68 931.61 566.19 731.38
Preference Dividend 0 0 31.91 0
Equity Dividend 200.19 173.6 5.66 151.39
Corporate Dividend Tax 32.82 29.5 528.62 25.73
Per share data (annualised)
Shares in issue (lakhs) 17407.24 8675.86 528.43 8650.76
Earning Per Share (Rs) 2.71 4.99 13.28 4.32
Equity Dividend (%) 115 200 566.19 175
Book Value (Rs) 6.33 8.64 31.z91 8.53
 Balance Sheet (Annual) (Rs. in
Crores)

Particulars Mar ‘18 Mar ‘17 Mar '09

Sources Of Funds
Total Share Capital 174.07 86.76 86.51
Equity Share Capital 174.07 86.76 86.51
Share Application Money 0 0.14 0
Preference ShareCapital 0 0 0
Reserves 927.09 662.48 651.69
Revaluation Reserves 0 0 0
Networth 1101.16 749.38 738.2
Secured Loans 17.57 24.27 8.26
Unsecured Loans 235.78 81.8 130.72
Total Debt 253.35 106.07 138.98
Total Liabilities 1354.51 855.45 877.18

Application Of Funds
Gross Block 766.88 687.23 518.77
Less: Accum. Depreciation 269.32 236.28 210.45
Net Block 497.56 450.95 308.32
Capital Work in Progress 11.92 23.31 51.71
Investments 519.23 348.51 232.05
Inventories 460.58 298.44 261.72
Sundry Debtors 202.46 130.48 112.36
Cash and Bank Balance 26.08 48.8 32.16
Total Current Assets 689.12 477.72 406.24
Loans and Advances 461.81 348.94 455.65
Fixed Deposits 166.33 115.11 111.53
Total CA, Loans & 1317.26 941.77 973.42
Advances
Deffered Credit 0 0 0
Current Liabilities 539.05 471.73 381.87
Provisions 535.36 440.1 315.1
Total CL & Provisions 1074.41 911.83 696.97
Net Current Assets 242.85 29.94 276.45
Miscellaneous Expenses 82.95 2.74 8.64
Total Assets 1354.51 855.45 877.17

Contingent Liabilities 1075.89 173.48 174.15

Book Value (Rs) 6.33 8.64 8.53
Key Financial Ratios

Particulars Mar ‘18 Mar ‘17 Mar '09

Investment Valuation Ratios

Face Value 1 1 1
Dividend Per Share 1.15 2 1.75
Profitability Ratios
Operating Profit Margin(%) 19.06 19.17 18.33
Net Profit Margin(%) 14.27 15.03 15.44
Return On Net Worth(%) 46.29 58.04 51.2

Liquidity And Solvency Ratios

Debt Equity Ratio 0.23 0.14 0.19

Management Efficiency Ratios

Inventory Turnover Ratio 8.65 11.31 10.94

Debtors Turnover Ratio 19.67 23.62 22.63

working capital turnover Ratio 13.48 95.77 8.71

Cash Flow Indicator Ratios

Dividend Payout Ratio 0.42 0.40 0.40

Sales growth % 14.19 19.06 15.03

Earnings Per Share 2.71 4.99 4.32
 Profitability Ratio:-

1) Operating profit margin:-

Operating margin is a measurement of what proportion of a company's

revenue is left over after paying for variable costs of production such as
wages, raw materials, etc. A healthy operating margin is required for a
company to be able to pay for its fixed costs, such as interest on debt. If a
company's margin is increasing, it is earning more per dollar of sales. The
higher the margin, the better.

Formula of operating profit margin:

= Operating income/ Net sales × 100

Operating profit margin

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 14.46 15.74 13.53

ITC 32.84 33.02 34.08

NESTLE 19.74 19.91 20.53

DABUR 18.33 19.17 19.06

Analysis:

Operating profit margin shows how much a company makes (before interest
and taxes) on each rupee of sales. We can see that the ratio of HUL is more
in Mar'10 compared to Mar'09 this shows that the company is earning more
compared to previous year but in the year Mar'11 the company's operating
margin has reduced by 2.21% which is not good for the company. And same
is the case with Dabur in Mar'10 its operating margin increased but slightly
reduced in Mar'11.
In ITC and Nestle the operating margin is increasing at constant rate
compared to its previous year this shows that both the companies are more
on each rupee of sales which is good sign for any company.

Here, in Mar'11, ITC's operating margin is more compared to its competitors

this shows that company has left with more amount of revenue after paying
for variable costs of production such as wages, raw materials, etc. which
shows the company is much more healthier than its counterparty.

2) Net profit ratio:-

Net profit ratio is the ratio of net profit (after taxes) to net sales. It is
expressed as percentage. The two basic components of the net profit ratio
are the net profit and sales. The net profits are obtained after deducting
income-tax and, generally, non-operating expenses and incomes are
excluded from the net profits for calculating this ratio. Thus, incomes such
as interest on investments outside the business, profit on sales of fixed assets
and losses on sales of fixed assets, etc are excluded. NP ratio is used to
measure the overall profitability and hence it is very useful to proprietors.
The ratio is very useful as if the net profit is not sufficient, the firm shall not
be able to achieve a satisfactory return on its investment.

Formula of Net Profit Ratio:

Net Profit Ratio = (Net profit / Net sales) × 100

Net profit ratio

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 12.09 12.29 11.56

ITC 21.18 21.30 22.91

NESTLE 12.67 13.00 12.75

DABUR 15.44 15.03 14.27

Analysis:

Net profit ratio shows that situation of overall profit of the Company. In
above calculation, Net profit ratio of HUL and Naestle is slightly increasing
in year 2017 by .20% and .33% respectively which dosent create a much
difference but in year 2018both companies NP ratio is decreasing.

In case of ITC its NP ratio is constantly increasing which shows the

company is good position compared to its competitors and reserse is the
caase with Dabur its NP ratio is constantly decreasing which is not good for
any company.

Here, ITC is leading in NP ratio compared to its counterparty which is good

sign for that company is growing much faster.

3) Return on net worth Ratio:-

It is the ratio of net profit to share holder's investment. It is the relationship

between net profit (after interest and tax) and share holder's/proprietor's
fund. The two basic components of this ratio are net profits and
shareholder's funds. Shareholder's funds include equity share capital,
(preference share capital) and all reserves and surplus belonging to
shareholders. Net profit means net income after payment of interest and
income tax because those will be the only profits available for share holders.

Formula of Return on Net worth Ratio:

= [Net profit (After tax & Pref. Dividend) / Share

holder’s fund] × 100 Where; Share holder’s fund =

Equity + Reserves
 Return on net worth Ratio

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 121.34 85.25 87.57

ITC 23.85 28.98 31.36

NESTLE 112.68 95.70 75.47

DABUR 51.20 58.04 46.29

Analysis:

This ratio is of great importance to the present and prospective shareholders

as well as the management of the company. Here we can see that RON of
HUL in 2016 was 121.34 and it drastically fell to 85.25 in year 2017 which
is not good for any company in retaining its shareholders but in year 2018it
has shown a sign of growth.

On the other hand ITC has is constantly increasing its RON from year 2016
to 2018which is a good sign for shareholders. Whereas Nestle's RON
drastically fell in year 2017 from 112.68 to
95.70 and further it has fallen to 75.47 in 2018which is not good for
shareholders. Same is the case with Dabur from 2016 to 2018there is
constant decrease in the RON.

Here ,in 2011, HUL is the leader in providing good returns to its
shareholders compared to its competitors that is the reason HUL is the
leader in FMCG sector.

Liquidity and Solvency Ratio:-

1) Debt Equity Ratio:-

Debt-to-Equity ratio indicates the relationship between the external equities

or outsiders funds and the internal equities or shareholders funds. It is also
known as external internal equity ratio. It is determined to ascertain
soundness of the long term financial policies of the company.
Formula of debt equity ratio:

Debt Equity Ratio = Long Term Debts /

Shareholders’ Funds Where, Long Term

Debts = Secured and Unsecured Loans

Debt Equity Ratio

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 0.2 - -

ITC 0.01 0.01 0.01

NESTLE - - 0.76

DABUR 0.19 0.14 0.23

Analysis:

This ratio shows the relative amount of funds supplied to co. by outsiders
and by owners. It also indicates the extent to which a co. has to depend upon
outsiders for is financial requirements in long terms. Generally acceptable
debt-equity ratio is 1:1. Here the ratio for HUL is 0.2:1 for the year 2016
and 0:1 for the year 2017 and 2018which is good for the co. this shows that
the co. is not much dependent on outside capital which indicates the co. is
financially strong.

And the ratio for ITC is impressive from 2016 to 2018it is constant 0.01:1
which is good for any company and co. is financially strong by not being
much dependent on outside capital. On the other hand ratio for Nestle is 0:1
for the first 2 years and in 2018it is 0.76:1 which shows the is not much
financially strong compared to its competitors.

On the other hand ratios for Dabur is constantly increasing year on year
which shows the co. is not financially strong.
Management Efficiency Ratios:-

1) Inventory Turnover Ratio:-

Every firm has to maintain a certain level of inventory of finished goods so

as to be able to meet the requirements of the business. But the level of
inventory should neither be too high nor too low. This ratio tells how often a
business’ inventory turns over during the course of the year. Because
inventories are least liquid form of assets, a high inventory turnover ratio is
generally positive. On the other hand, an unusually high ratio compared to
the average for your industry could mean a business is losing sales because
of inadequate stock on hand.

If your business has sufficient assets tied up in inventory, tracking your

turnover is critical to successful financial planning. If inventory is turning
too slowly, it could indicate that it may be hampering your cash flow.
Because his ratio judges annual inventory turns, it is usually conducted once
a year.

To judge whether the ratio of a firm is satisfactory or not, it should be

compared over a period of time on the basis of trend analysis. It can also be
compared with the level of other forms in that line of business as well as
with industry average.

Formula of Inventory Turnover Ratio:

= Cost of Goods Sold / Avg. Inventory

Where, C.O.G.S. = Sales – Gross Profit

Inventory
Turnover Ratio
Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 9.26 8.99 7.91

ITC 5.26 6.04 6.05

NESTLE 11.61 12.33 11.60

DABUR 10.94 11.31 8.65
Analysis:

Inventory ratio indicates the efficiency of a firm’s inventory management

and also shows the rate at which stocks are converted into sales and then
into cash. High inventory ratio is more preferable especially for consumer
goods. Here Inventory ratio for HUL in 2016, 2017, 2018is 9.26, 8.99, 7.91
respectively this shows that ratio is constantly decreasing which is not good
for co. And on the other hand the ratio for ITC is constantly increasing from
2016 to 2018which clearly indicates the increase in sales.

The ratio for Nestle is high compared to its competitors it has high turnover
of 11.60 in 2018and on the other hand the ratio for Dabur is continuously
decreasing from 2016-2018which indicates the inefficiency of management
in converting its sales into cash quickly.

2) Debtors Turnover Ratio:-

A concern may sell goods on cash as well as on credit. Credit is one of the
important elements of sales promotion. The volume of sales can be
increased a liberal credit policy. The effect of a liberal credit policy may
result in tying up substantial funds of a firm in the form of trade debtors (or
receivables). Trade debtors are expected to be converted into cash within a
short period of time and are included in current assets. Hence, the liquidity
position of concern to pay its short term obligations in time depends upon
the quality of its trade debtors.

The higher the value of debtors turnover the more efficient is the
management of debtors or more liquid the debtors are. Similarly, low
debtors turnover ratio implies inefficient management of debtors or less
liquid debtors. It is the reliable measure of the time of cash flow from credit
sales.
Formula of Debtors Turnover Ratio:

Debtors Turnover Ratio = Total Sales (Net Sales) / Avg. Debtors

 Debtors Turnover Ratio

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 41.83 29.24 24.28

ITC 21.32 24.31 23.91

NESTLE 93.68 98.22 83.83

DABUR 22.63 23.62 19.67

Analysis:

Debtors turnover ratio shows the rate at which cash is generated by the
turnover of debtors. Here, Debtors turnover ratio for HUL is high in the year
2016 and gradually it is decreasing in subsequent years which is bad for the
co. and on the other hand the ratio for ITC is fluctuating and not much
impressive in collecting money from debtors.

Whereas ratio for Nestle is quite impressive it has high turnover ratio of
83.83 in 2018which shows the management is strict towards its debtors in
collecting amount money from them. And the turnover ratio of Dabur is low
compared to other co. in the year 2018which is 19.67 this indicates the co. is
not strict towards its debtors in collecting money.

3) Working Capital Turnover Ratio:-

Working capital turnover ratio indicates the velocity of the utilization of net
working capital. The working capital turnover ratio measures the efficiency
with which the working capital is being used by a firm. A high ratio
indicates efficient utilization of working capital and a low ratio indicates
otherwise. But a very high working capital turnover ratio may also mean
lack of sufficient working capital which is not a good situation.

Formula of Working Capital Turnover Ratio:

= Sales (or Cost of Sales) / Net Working capital

Where; Net Working Capital = Current assets – Current liabilities
 Working capital Turnover Ratio

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 284.82 -15.91 -17.98

ITC 5.79 -26.29 25.78

NESTLE -8.60 -9.53 -8.47

DABUR 8.71 95.77 13.48

Analysis:

Total assets turnover ratio indicates effective utilization of total assets in

generating sales. Here fixed assets turnover ratio of HUL is very high in the
year 2016 which shows lack of insufficient working capital and negative in
the subsequent years. On the other hand ITC has good Working capital
turnover ratio which states that the co. is utilizing its total assets effectively
in generating sales.

On the other hand Nestle has negative ratio which is not for a co. and co.
should concentrate on it to make it a positive. Whereas the working capital
turnover ratio of Dabur is very impressive this indicates the management is
effectively utilizing its total assets in generating sales.

Cash Flow Indicator Ratios:-

1) Earnings per Share (EPS):-

Earnings per share ratio (EPS Ratio) is a small variation of return on equity
capital ratio and is calculated by dividing the net profit after taxes and
preference dividend by the total number of equity shares. The earnings per
share is a good measure of profitability and when compared with EPS of
similar companies, it gives a view of the comparative earnings or earnings
power of the firm. EPS ratio calculated for a number of years indicates
whether or not the earning power of the company has increased.
Formula of EPS:

= ( Net profit – Pref. Dividend ) / No. of shares

Earnings per share

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 11.47 10.09 10.68

ITC 8.65 10.64 6.45

NESTLE 67.94 84.91 99.73

DABUR 4.32 4.99 2.71

Analysis:

This ratio gives a view of the comparative earnings or earnings power of the
firm. Here in HUL EPS has reduced after 2016 which is not a good sign for
the company but it has shown a sign of increasing its EPS in 2018which is
positive for the co. Whereas ITC has fluctuating EPS one year it is
increasing and in the other year it is decreasing which is not good for any
co.

On the other hand EPS of Nestle is continuously increasing year on year

which is very good for the co. While in Dabur co. the EPS is not much
attractive and it has been reduced in the year 2018from 2017 to almost 50%
which is not good for the company.

Here, Nestle is much strong in EPS compared to other companies which is good for
company.

2) Dividend payout Ratio:-

Dividend payout ratio is calculated to find the extent to which earnings per
share have been used for paying dividend and to know what portion of
earnings has been retained in the business. It is an important ratio because
ploughing back of profits enables a company to grow and pay more
dividends in future.
 The payout ratio and the retained earning ratio are the indicators of the
amount of earnings that have been ploughed back in the business. The lower
the payout ratio, the higher will be the amount of earnings ploughed back in
the business and vice versa. A lower payout ratio or higher retained earnings
ratio means a stronger financial position of the company.

Formula of Dividend payout Ratio:

= Dividend per share / Earnings per Share

Dividend payout Ratio

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 0.65 0.64 0.61

ITC 0.43 0.94 0.69

NESTLE 0.07 0.06 0.05

DABUR 0.40 0.40 0.42

Analysis:

Dividend Payout ratio is indicator of the amount of earnings that have been
ploughed back in the business. In HUL there is higher payout ratio which
indicates the co. is paying more to its shareholders and lower amount of
earnings are ploughed back in the business. Same is the case with ITC
which is not good strong financial condition of both the companies.

Whereas in Nestle co. the payout ratio is low that means the higher amount
of earnings are ploughed back in the business, which is good for strong
financial condition. And payout ratio for Dabur is constant over the years
which is also a sign of good strong financial condition.

Comparatively Nestle is good because it uses whole fund for his strong financial purpose.
 3) Sales Growth:-

Formula of Sales Growth:

= [(Sales Current Year – Sales Previous Year) / Sales Previous Year] × 100

Sales growth

Particulars Mar ‘16 Mar ‘17 Mar ‘18

HUL 47.72 -13.34 10.81

ITC 6.80 23.90 13.75

NESTLE 18.79 21.75 19.66

DABUR 15.03 19.06 14.19

Analysis:

Sales growth is also useful for particular FMCG Sector. Sales growth of
HUL in 2018is very good compared to its last year where it was negative
13.34 it is good sign co. is growing.

On the other hand ITC, Nestle and Dabur has faced a decrease in their sales
growth compared to there last year where each co. has experienced sales
growth.

Here we have seen overall sales growth of HUL is very impressive

compared to other companies.
CHAPTER 5

FINDINGS AND SUGGESTIONS:

 As per the analysis done on the FMCG sector here are some of
the recommendations from our side:
 Infosys recorded a high quality of earnings while Tata Motors has the lowest
quality of earnings for the year 2014-2015.
 Dabour has the lowest P/E ratio while Mahindra Auto recorded a P/E for the
year 2014-2015.
 Since the share prices are moving over the month it is impossible to predict a
generalized value for the variables.
 From the industry analysis it is clear that the growth rate of Fmcg and
Automobile industry is increasing.
 Besides the factors used for analysis there are several other factors like labour
strikes management, employee employer relationship which judge the
performance of companies.
 The three companies were performing well till 2008 with a positive trend in the
earnings per share. But there was a downward trend in 2009 but again from
2015 it was upward. Especially, TATA has witnessed a steep fall in the year
2014.
 The sales trend has been upward and positive in case of all the three companies.
The sales growth looks positive but in the year 2014, TATA’s sales have
declined whereas Maruti and Mahindra have maintained the same upward
positive trend.

 Based on the research analysis the investor should go for HUL

and Nestle India both these companies are growing at faster rate
compared to others.
 The company’s Liquidity Ratio shows a satisfactory trend.
 Quick Ratio shows that HUL and Nestle to meet its current obligations
(liabilities)..
 The efficiency of inventory control in sri HUL and Dabour a satisfactory
position..
RECOMMENDATIONS:

 Besides looking at the company performance the investor should analyse the
economy and the industry as a whole.
 It is better to invest in companies with good market value, good performance in
revenue and should consider the various factors affecting the performance
before investing.
 I would recommend Infosys as good for investment because as it has high
quality of earnings and high compounded annual growth rate.
 Even though the industry may perform well, several ratios like, financial ratios,
growth ratios, sales etc.. should be properly analyzed with reference to that
company and also with the industry.
 As P/E ratio is directly related to market price per share and the Earnings per
share while looking at the P/E ratio one should analyze the return and go for
better portfolio.
 A higher P/E ratio indicates that the stocks are extremely overvalued. If the firm
does not earn a huge growth of earnings it will increase the amount paid by each
investor to the share.
CONCLUSION

The collapse in market place both Fmcg and Automobile industry witnessed
unprecedented turbulence in the wake of global financial meltdown. A runaway
inflation touching a high point of 12% early in the year, the tight monetary policies
followed by the authorities for most of the year to control inflation with the consequent
high interest rates and weak consumer demand, have collectively had a devastating
effect on the automotive sector. During the financial year 2015-16 the there is downfall
in the growth of the company. The main reason behind this downfall is because of the
global recession. The downfall of net profit during the financial year 2015-16 is 29.6%
over the financial year
TATA Motors, which was trying to consolidate its leadership position in the market,
also had to face the impact of global meltdown. Amid the crippling economic crisis,
Tata purchased Britain’s Jaguar Land Rover (JLR) from Ford Motor Company.
Acquiring JLR saddled Tata with some tough losses. Dividends and earnings remain
low.
 BIBLIOGRAPHY
Saeed, K. (2009) "FMCG Markets in India-The next big thing? ”
Kiran, K S.(2011) " FMCG: Expect no strong repeat show as demand flags" Economic
times Sarath, C. (2009) "Still Shinning"

Books:

 Jain Rajiv, A premium of Guide to Investor, 2004

 Narora M N, Management Accounting, Himalaya Publishing House, 2003
 Chandra Prasanna, Investment Analysis and Portfolio Management, Himalaya
Publishing house, 2003

website

 www.nseindia.com
 www.bseindia.com
 www.investopedia.com
 www.moneycontrol.com
 www.indiainfoline.com
 www.sebi.gov.in
 www.tatamotors.com
 www.marutisuzuki.com
 www.mahindra.com
 www.yahoofinance.com