Comparative Study of BSE and NSE With Special Reference of Risk and Return

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Comparative Study of BSE and NSE With Special Reference of Risk and Return
A PROJECT SUBMITED
IN PART OF COMPLETION OF
MASTER OF FINANCIAL MANAGEMENT
TO
TIMSR
BY
MAURYA SANDEEPKUMAR RAMJASH GEETA
UNDER
Prof. ABHISHEK RAJURKAR
TIMSR
MFM – BATCH – 2018-2021
Shyamnarayan Thakur Marg, Thakur Village,
Kandivali (East), Mumbai 400101

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CERTIFICATE
This is to certify that the study presented by Mr. Maurya Sandeepkumar Ramjash to THAKUR
INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH (TIMSR) in part completion
of Master’s Degree in FINANCIAL MANAGEMENT under Comparative Study of BSE and
NSE With Special Reference of Risk and Return done under my guidance in the year 2014-2017.
The Project is in the nature of original work that has not so far been submitted for any other course
in this institute or any other institute. Reference of work and relative sources of information have
been given at the end of the project
Signature of the Candidate
Mr. Maurya Sandeepkumar Ramjash
Forwarded through the Research Guide
Signature of the Guide
Prof. Abhishek Rajurkar

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ACKNOWLEDGEMENT
I believe that behind the ascend of each and every student lie not only the relentless urge to work
hard but also the guidance and inspiration of their guide, co-guide and other helpful people.
With a deep sense of gratitude I would like to thank each of the project work.
I owe a special thanks to my project guide Prof. Abhishek Rajurkar for providing me with the
valuable insight in to the projects. She elucidated me the minute intricacies of the project.
Sincere thanks to workforce of TIMSR, for their kind and timely support & cooperation.

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Sr. No. Index
1. Background of Study
2. Risk Analysis
3. Return Analysis
4. Difference between Risk and Return
5. Difference Between BSE & NSE
6. Representative Stocks for the purpose of Analysis
7. Financial Analysis
8. BSE SEXSEX Vs NSE NIFY
9. Conclusion
10 Bibliography

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Background of Study
The Bombay Stock Exchange (BSE) is known as the largest and oldest stock exchange of India.
Established in 1875, BSE has facilitated the growth of the Indian corporate sector by providing it an
efficient capital-raising platform.
1. It traces its history to the 1850s, when four Gujarati and one Parsi stockbroker would gather
under banyan trees in front of Mumbai’s Town Hall.
2. Due to Increase in number of members the group finally moved to Dalal Street, Mumbai in
1874 and in 1875 became an official organization known as ‘The Native Share & Stock
Brokers Association’. In 1956, BSE became the first stock exchange to be recognized by the
Indian Government under the Securities Contracts Regulation Act.how to aAbout Indian
Stock Market – History of BSE and NSE
3. Bombay Stock Exchange developed BSE Sensex in 1986, giving BSE a means to measure
it’s overall performance of the exchange. They switched to an electronic trading system in
1995.
4. It took the exchange only fifty days to make this transition. In 2000, BSE used this index to
open its derivatives market, trading Sensex futures contracts. The development of Sensex
options along with equity derivatives followed in 2001 and 2002, expanded BSE’s trading
platform.
5. National Stock Exchange (NSE) is located at Mumbai, India. It is the 11th largest stock
exchange in the world by market capitalization. NSE’s key index is the S&P CNX Nifty,
known as NIFTY (NSE fifty), an index of fifty major stocks weighted by market
capitalization.
6. NSE is mutually owned by a set of leading financial institutions, banks, insurance companies
and other financial intermediaries in India. But its ownership and management operate as a
separate entity. There are at least 2 foreign investors “NYSE Euronext” and “Goldman
Sachs” who have taken a stake in the NSE. It is the second fastest growing exchange in the
world with a recorded growth of 16.6%.
7. SEBI is the regulator for securities market in India. It was established by The Government of
India in the year 1988 and has given statutory powers in the year 1992 by SEBI Act, 1992.
Both NSE and BSE are monitored by SEBI.

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What is Risk
Risk is defined in financial terms as the chance that an outcome or investment's actual gains will
differ from an expected outcome or return. Risk includes the possibility of losing some or all of an
original investment.
Quantifiably, risk is usually assessed by considering historical behaviors and outcomes. In finance,
standard deviation is a common metric associated with risk. Standard deviation provides a measure
of the volatility of asset prices in comparison to their historical averages in a given time frame.
Overall, it is possible and prudent to manage investing risks by understanding the basics of risk and
how it is measured. Learning the risks that can apply to different scenarios and some of the ways to
manage them holistically will help all types of investors and business managers to avoid unnecessary
and costly losses.
The Basics of Risk
1. Everyone is exposed to some type of risk every day – whether it’s from driving, walking
down the street, investing, capital planning, or something else. An investor’s personality,
lifestyle, and age are some of the top factors to consider for individual investment
management and risk purposes. Each investor has a unique risk profile that determines their
willingness and ability to withstand risk. In general, as investment risks rise, investors expect
higher returns to compensate for taking those risks.
2. A fundamental idea in finance is the relationship between risk and return. The greater the
amount of risk an investor is willing to take, the greater the potential return. Risks can come
in various ways and investors need to be compensated for taking on additional risk. For
example, a U.S. Treasury bond is considered one of the safest investments and when
compared to a corporate bond, provides a lower rate of return. A corporation is much more
likely to go bankrupt than the U.S. government. Because the default risk of investing in a
corporate bond is higher, investors are offered a higher rate of return.

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3. Quantifiably, risk is usually assessed by considering historical behaviors and outcomes. In
finance, standard deviation is a common metric associated with risk. Standard deviation
provides a measure of the volatility of a value in comparison to its historical average. A high
standard deviation indicates a lot of value volatility and therefore a high degree of risk.
4. Individuals, financial advisors, and companies can all develop risk management strategies to
help manage risks associated with their investments and business activities. Academically,
there are several theories, metrics, and strategies that have been identified to measure,
analyze, and manage risks. Some of these include: standard deviation, beta, Value at Risk
(VaR), and the Capital Asset Pricing Model (CAPM). Measuring and quantifying risk often
allows investors, traders, and business managers to hedge some risks away by using various
strategies including diversification and derivative positions.
Riskless Securities
While it is true that no investment is fully free of all possible risks, certain securities have so little
practical risk that they are considered risk-free or riskless.
Riskless securities often form a baseline for analyzing and measuring risk. These types of
investments offer an expected rate of return with very little or no risk. Oftentimes, all types of
investors will look to these securities for preserving emergency savings or for holding assets that
need to be immediately accessible.
Risk and Time Horizons
1. Time horizon and liquidity of investments is often a key factor influencing risk assessment
and risk management. If an investor needs funds to be immediately accessible, they are less
likely to invest in high risk investments or investments that cannot be immediately liquidated
and more likely to place their money in riskless securities.
2. Time horizons will also be an important factor for individual investment portfolios. Younger
investors with longer time horizons to retirement may be willing to invest in higher risk
investments with higher potential returns. Older investors would have a different risk
tolerance since they will need funds to be more readily available.
Evaluation of a Risk Management Plan
A risk management plan can never be perfect. However, the degree of its success depends upon risk
analysis, management policies, planning and activities. A well-defined management plan can be
successful only if risks are properly accessed. And if not, the main objective of risk management
plan itself is defeated. Critical evaluation of a risk management plan at every stage is very necessary

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especially at an early stage. It will allow companies to discover the flaws before it gets into the
action. Once you’re through the process, you can address the issues and then introduce it.
Below are the steps can help in analyzing and evaluating the risk management plan.
1. Problem Analysis: Keep a note of all the events and activities of a risk management plan.
Check out the problems arising from their implementation and assess if they have a serious
impact on the whole process. Make a note of those that have serious implications.
2. Match the Outcomes of a Risk Management Plans with its Objectives: Ends justify
means. Check if the possible outcomes of a risk management plan are in tandem with its pre-
defined objectives. It plays a vital role in analyzing if the plan in action is perfect. If it
produces desired results, it does not need to be changed. But if it fails to produce what is
required can be a really serious issue. After all, an organization deploys its resources
including time, money and human capital and above all, the main aim of the organization is
also defeated.
3. Evaluate If All the Activities in the Plan are Effective: It requires a thorough investigation
of each activity of a risk management plan. Checking out the efficiency of all the activities
and discovering the flaws in their implementation allow you to analyze the whole plan
systematically.
4. Evaluate the Business Environment: A thorough study and critical evaluation of business
environment where a risk management plan is to be implemented is essential. Take time to
assess, analyze and decide what exactly is required.
5. Make Possible Changes in Faulty Activities: After evaluating the effectiveness and
efficiency of all the activities, try to make possible changes in the action plan to get desired
results. It may be very time consuming but is necessary for successful implementation of
your risk management plan.
6. Review the Changed Activities: After making changes in already existing activities and
events of a risk management plan, go for a final review. Try to note down the possible
outcomes of the changed activity and match them with the main objectives of the risk
management plan. Go ahead in case they are in line with them.
Evaluating a risk management plan sometimes can be very frustrating. It is definitely a time-
consuming process and also requires more of human efforts. Therefore, it is always better to
analyze and evaluate a plan at every stage otherwise it will result in wastage of time, finances
and efforts. In order to keep a check on it, specialized teams of risk managers can be
appointed. The whole event can be outsourced to a risk management firm. The professionals

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at the firm can help you design, develop, implement and evaluate a risk management plan for
your company.
Investing Risk
1. Carrying Risk: While the traditional rule of thumb is “the higher the risk, the higher the
potential return,” a more accurate statement is, “the higher the risk, the higher the potential
return, and the less likely it will achieve the higher return.” To understand this relationship
completely, you must know what your risk tolerance is and be able to gauge the relative risk
of a particular investment correctly. When you choose to put your money into investments
that are riskier than a standard savings or money market deposit account, you run the
possibility of experiencing any or all of the following to some degree:
a. Losing your principal: Individual stocks or high-yield bonds could cause you to lose
everything.
b. Not keeping pace with inflation: Your investments could rise in value slower than
prices. This is more likely to happen if you invest in cash equivalents, like Treasury or
municipal bonds.
c. Coming up short: There is a real chance that your investments don't earn enough to
cover your retirement needs.
d. Paying high fees or other costs: Expensive fees on mutual funds can make it tough to
make a good return. Beware of actively-managed mutual funds or ones with sales loads.
Multiple Risk Profiles
There are 3 main investment vehicles are readily available to most investors: stocks, bonds and
mutual funds. From these carry more risk than others, and within each assets class we can find that
risk can also vary quite a bit.
1. Stocks - Most people have stocks in their investment portfolio, and for a good reason.
According to Ibbotson Associates, stocks have reliably returned an average rate of 10%
annually since 1926.
This is higher than the return you're likely to get from many other investments, especially
less risky ones such as bonds. However, be cautious with stocks.
You could buy stock in established, blue-chip companies that have a fairly stable stock price,
pay out dividends, and are considered relatively safe. Or, you could choose to invest in
smaller companies, such as startups or penny-stock firms, where your returns are much more
volatile.

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2. Bonds: - A popular way to offset some of the risks from investing in stocks is to keep a
certain amount of your money invested in bonds. When you purchase bonds, you're
essentially lending money to a corporation, municipality, or other government entity,
depending on which bonds you buy.
Bonds generally provide more safety than stocks and are given a rating from agencies such as
Moody's and Standard & Poor’s. Ratings act like a credit score or report card, and AAA-
rated bonds are considered the safest.
When you buy government bonds, you receive a guarantee from Uncle Sam that you'll get
your money back plus interest. At the other extreme are junk bonds, which are sold by
corporations.
Junk bonds promise much higher returns than long-term government bonds, but they're high-
risk, and in some cases not even considered investment-grade securities.
3. Mutual Funds: Mutual funds make sense for many investors because they're managed by
professional portfolio managers so that you don't need to worry about watching the market or
monitoring a stock portfolio.
Mutual funds work like a basket of stocks or bonds, and when you buy shares of a mutual
fund, you get the benefit of the variety of assets held within the fund.
You can choose from a wide variety of funds with different risk profiles. Some hold large-
company stocks; some blend large- and small-company stocks; some hold bonds; some hold
gold and other precious metals; some hold shares in foreign corporations; and just about any
other asset type that comes to mind.
While mutual funds don't completely take away risk, you can use them to hedge against risk
from other investments.
Chances of Losing Money
1. The most common type of risk is the danger that your investment will lose money. You can
make investments that guarantee you won’t lose money, but you will give up most of the
opportunity to earn a decent return in exchange. For example, U.S.
2. Treasury bonds and bills carry the full faith and credit of the United States behind them,
which makes these issues the safest in the world. Bank certificates of deposit (CDs) with a
federally insured bank are also very secure.

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3. However, the price for this safety is a very low return on your investment. When you
calculate the effects of inflation on your investment and the taxes you pay on the earnings,
your investment may return very little in real growth.
Accepting of Higher Risk
1. All investors need to find their comfort level with risk and construct an investment strategy
around that level. A portfolio that carries a significant degree of risk may have the potential
for outstanding returns, but it may also cause you to lose your life savings.
2. Your comfort level with risk should pass the “good night’s sleep” test, which means you
should not worry about the amount of risk in your portfolio so much that it causes you to lose
sleep.
3. There is no right or wrong amount of risk; it is a very personal decision for each investor.
Young investors can afford higher risk than older investors because they have more time to
recover if the market declines.
4. If you are five years away from retirement, you probably don’t want to be taking
extraordinary risks with your nest egg, because you will have little time left to recover from a
significant loss. Of course, a too-conservative approach may mean you don’t achieve your
financial goals.
Bottom Line of Risk in Stocks
1. Investors can control some of the risks in their portfolio through the proper mix of stocks and
bonds. Most experts consider a portfolio more heavily weighted toward stocks riskier than a
portfolio that favors bonds.
2. Risk is a natural part of investing. Investors need to find their comfort level and build their
portfolios and expectations accordingly.

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What is Return
1. A return, also known as a financial return, in its simplest terms, is the money made or lost on
an investment over some period of time.
2. A return can be expressed nominally as the change in dollar value of an investment over
time. A return can also be expressed as a percentage derived from the ratio of profit to
investment.
3. Returns can also be presented as net results (after fees, taxes, and inflation) or gross returns
that do not account for anything but the price change. It even includes a 401(k) investment.
Understanding a Return
1. Prudent investors know that a precise definition of return is situational and dependent on the
financial data input to measure it. An omnibus term like profit could mean gross, operating,
net, before tax, or after tax. An omnibus term like investment could mean selected, average,
or total assets.
2. A holding period return is an investment's return over the time it is owned by a particular
investor. Holding period return may be expressed nominally or as a percentage. When
expressed as a percentage, the term often used is rate of return (RoR).
3. For example, the return earned during the periodic interval of a month is a monthly return
and of a year is an annual return. Often, people are interested in the annual return of an
investment, or year-on-year (YoY) return, which calculates the price change from today to
that of the same date one year ago.
4. Returns over periodic intervals of different lengths can only be compared when they have
been converted to same length intervals. It is customary to compare returns earned during
year-long intervals. The process of converting shorter or longer return intervals to annual
returns is called annualization.
Nominal Return
1. A nominal return is the net profit or loss of an investment expressed in nominal terms. It can
be calculated by figuring the change in the value of the investment over a stated time period
plus any distributions minus any outlays.
2. Distributions received by an investor depend on the type of investment or venture but may
include dividends, interest, rents, rights, benefits, or other cash-flows received by an investor.

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Outlays paid by an investor depend on the type of investment or venture but may include
taxes, costs, fees, or expenditures paid by an investor to acquire, maintain, and sell an
investment.
Example - Assume an investor buys $1,000 worth of publicly traded stock, receives no distributions,
pays no outlays, and sells the stock two years later for $1,200. The nominal return in dollars is
$1,200 - $1,000 = $200.
Real Return
1. A real rate of return is adjusted for changes in prices due to inflation or other external factors.
This method expresses the nominal rate of return in real terms, which keeps the purchasing
power of a given level of capital constant over time.
2. Adjusting the nominal return to compensate for factors such as inflation allows you to
determine how much of your nominal return is real return. Knowing the real rate of return of
an investment is very important before investing your money. That’s because inflation can
reduce the value as time goes on, just as taxes also chip away at it.
The total return for a stock includes both capital gains/losses and dividend income,
while the nominal return for a stock only depicts its price change.
3. Investors should also consider whether the risk involved with a certain investment is
something they can tolerate given the real rate of return.
4. Expressing rates of return in real values rather than nominal values, particularly during
periods of high inflation, offers a clearer picture of an investment's value.
Return Ratios
1. Return ratios are a subset of financial ratios that measure how effectively an investment is
being managed. They help to evaluate if the highest possible return is being generated on an
investment.
2. In general, return ratios compare the tools available to generate profit, such as the investment
in assets or equity to net income.
3. Return ratios make this comparison by dividing selected or total assets or equity into net
income. The result is a percentage of return per dollar invested that can be used to evaluate
the strength of the investment by comparing it to benchmarks like the return ratios of similar
investments, companies, industries, or markets.
4. For instance, return of capital (ROC) means the recovery of the original investment.

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Difference between Risk and Return
1. Every investment contains some ‘risk’, though the intensity of the risk depends on the class
of investment.
2. On the other hand, ‘return’ is what every investor is after. It is the most sought out factor in
the financial market.
3. As per the tradeoff between risk and return, the amount of risk determines the degree of
return. If an investor is looking for higher returns, he must invest in the instruments
containing higher risk.
4. However, if the risk bearing capacity of the investor is low or they are not looking for high
returns, they should invest in the low risk profile instrument.
Investment Risk vs. Return on Investment
1. The investor must keep in mind that though the risk and return are proportionate to each
other, higher risk doesn’t guarantee higher return; it only increases the probability of it.
2. Hence, an investor looking to get higher returns must be able to have good risk bearing
capacity, because without investing in the riskier instrument higher returns cannot be
achieved.
3. Also, one should not only focus on getting the return. To have a balanced combination of risk
and return in their portfolio, the investor needs to analyze their risk-bearing ability,
investment goal, and time duration in which they would like to achieve it.

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About BSE &NSE
1. BSE stands for 'Bombay Stock Exchange’, and NSE stands for 'National Stock Exchange’.
2. In India, we have two main stock exchange markets: National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE).
1. What is BSE?
a. In 1875, BSE or Bombay Stock Exchange was established, and it was formerly known as
'The native share and stock brokers association’. However, after 1957, Government of India
recognized this stock exchange as the premier stock exchange of India, under the Securities
Contract Regulation Act, 1956.
b. SENSEX was also introduced in 1986 as the first ever equity index of India to offer an
identifying base for top 30 exchange trading companies. In 1995, BSE on-line trading
(BOLT) was established, and at that time, its capacity amounted to 8 million transactions per
day. BSE is the first stock exchange of Asia, and it offers varied services such as market data
services, risk management, CDSL (Central Depository Services Limited) depository services,
etc.
c. Bombay Stock Exchange is additionally 12th biggest stock exchange marketplace in the
world, and as of July 2017, its market capitalization is over $2 trillion.
2. What is NSE?
a. NSE or National Stock Exchange is located in Mumbai, and it is India’s leading stock
exchange market. It first came into existence in 1992 and brought with it an electronic
exchange system in India, which led to the removal of the paper-based system.
b. NSE introduced Nifty 50 in 1996 as the identifying base for top 50 stock index, and it is
extensively utilized as Indian capital markets’ barometer and by Indian investors. National
Stock Exchange became a stock exchange recognized company by 1993, and in 1992, it was
incorporated as a tax paying company under Securities Contracts Act, 1956.
c. Formation of NSDL (National Securities Depository Limited) took place in 1995 to offer
investors a safe platform for transferring and holding their bonds and shares electronically.
National Stock Exchange is the 10th biggest stock exchange marketplace, and as of March
2017, its market capitalization reached over $1.41 trillion.

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Difference between BSE and NSE
1. NSE is the biggest stock exchange in India, while BSE is the oldest stock exchange in India.
2. The BSE was established in 1875, while the NSE was Established in 1992.
3. The benchmark index for the NSE is the Nifty, while for the BSE it is Sensex.
4. Global Rank is 11th and 10th
5. BSE promotes trading in equity, debt instruments, mutual funds, currencies, derivatives,
while NSE promotes trading equity, equity derivatives, debt and currency derivatives
segments.
6. The vision of BSE is to 'Emerge as the premier Indian Stock Exchange with best - in - class
global practice in technology, products innovation and customer service', while NSE's vision
is to 'Continue to be a leader, establish global presence, facilitate the financial well being of
people'.
7. The BSE's Sensex comprises of 30 companies, while NSE's Nifty comprises of 50
companies.
8. Website reference for BSE is www.bseindia.com and for NSE it is www.nseindia.com.
9. Index Value (as on October 21, 2019) for BSE is 39,298.38 and for NSE, it stands at
11,661.85.
10. The Managing Director and CEO of BSE is Mr. Ashish Kumar Chauhan and for NSE it is
Mr. Vikram Limaye.
11. The number of listed companies is 1696 for NSE and 5749 for BSE.
Conclusion- Both the stock exchanges, National Stock Exchange and Bombay Stock
Exchange, are an important part of Indian Capital Market. Every day, hundreds of thousands
of brokers and investors trade on these stock exchanges. And both are established in
Mumbai, Maharashtra, and SEBI (Securities and Exchange Board of India) recognized.

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Representative stock for the purpose of Analysis
1. Large cap stock
a. Reliance Inds.
b. Establishment Year – 8th May 1973
c. Promoter - Ambani family - The promoter group, the Ambani family, holds approx.
46.32% of the total shares whereas the remaining 53.68% shares are held by public
shareholders, including FII and corporate bodies. Life Insurance Corporation of India is
the largest non-promoter investor in the company, with 7.98% shareholding.
d. Management -
Sr. No. Name Designation
1 Adil Zainulbhai Independent Director
2 Alok Agarwal Chief Financial Officer
3
Arundhati
Bhattacharya
Independent Director
4 Dipak C Jain Independent Director
5 Hital R Meswani Executive Director
6 K Sethuraman
Group Co. Secretary & Compliance
Officer
7 K Sethuraman Secretary
8 K V Chowdary Non Executive Director
9 Mukesh D Ambani CEO
10 Mukesh D Ambani Chairman & Managing Director
11 Nikhil R Meswani Executive Director
12 Nita M Ambani Non Independent Director
13 P M S Prasad Executive Director
14 Pawan Kumar Kapil Executive Director
15
Raghunath A
Mashelkar
16
Raminder Singh
Gujral
17 Savithri Parekh Jt. Co. Secreatary & Compliance Officer
18 Shumeet Banerji Independent Director
19 Srikanth Venkatachari Jt. Chief Financial Officer
20 Yogendra P Trivedi Independent Director

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e. Brief Introduction –
1. Reliance Industries Limited (RIL) is an Indian multinational conglomerate company
headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India
engaged in energy, petrochemicals, textiles, natural resources, retail, and
telecommunications.
2. Reliance is one of the most profitable companies in India.
3. The largest publicly traded company in India by market capitalization.
4. The largest company in India as measured by revenue after recently surpassing the
government-controlled Indian Oil Corporation.
5. On 22 June 2020, Reliance Industries became the first Indian company to exceed
US$150 billion in market capitalization after its market capitalization hit ₹11,43,667
crore on the BSE.
6. The company is ranked 96th on the Fortune Global 500 list of the world's biggest
corporations as of 2020.
7. It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016.
Reliance continues to be India's largest exporter, accounting for 8% of India's total
merchandise exports with a value of ₹1,47,755 crore and access to markets in 108
countries.
8. Reliance is responsible for almost 5% of the government of India's total revenues
from customs and excise duty. It is also the highest income tax payer in the private
sector in India.
f. Industry – Petroleum, Natural gas, Petrochemicals, Textiles, Retail,
Telecommunications, Media, Television etc.

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2. Mid Cap Stock
a. Larsen and Toubro
b. Established year – 7th February 1938
c. Promoters
Holder's Name
No of
Shares
% Share
Holding
No Of Shares 1404034846 100%
Promoters 0 0%
Foreign Institutions 247395456 17.62%
N Banks Mutual
Funds
229161053 16.32%
Central Govt 6957241 0.50%
Others 317442539 22.61%
General Public 319409254 22.75%
Financial Institutions 262264480 18.68%
GDR 21404823 1.52%
d. Management
Name Designation
A M Naik Group Chairman
A Sivaram Nair Co. Secretary & Compl. Officer
A Sivaram Nair Secretary
Adil Siraj
Zainulbhai
Ajay Shankar Independent Director
Arvind Gupta Nominee Director
D K Sen
WholeTime Director &
Sr.Exe.VP
Hasit Joshipura Senior Vice President & Head
Hemant Bhargava Nominee Director
Jayant Damodar
Patil
Sr.Exe.VP
M Damodaran Independent Director
M M Chitale Independent Director
M V Satish
Sr.Exe.VP
Naina Lal Kidwai Independent Director
Narayanan Kumar Independent Director

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R Shankar Raman WholeTime Director & CFO
S N Subrahmanyan CEO
S N Subrahmanyan Managing Director & CEO
Sanjeev Aga Independent Director
Shailendra Narain
Roy
Sr.Exe.VP
Subodh Bhargava Independent Director
Subramanian Sarma Non Executive Director
Sunita Sharma Nominee Director
T Thomas Mathew Independent Director
Vikram Singh
Mehta
e. Brief Introduction - Larsen & Toubro is a major technology, engineering,
construction, manufacturing and financial services conglomerate, with global
operations. L&T addresses critical needs in key sectors - Hydrocarbon,
Infrastructure, Power, Process Industries and Defense - for customers in over 30
countries around the world.
L&T is engaged in core, high impact sectors of the economy and our integrated
capabilities span the entire spectrum of ‘design to deliver’. With 8 decades of a
strong, customer focused approach and a continuous quest for world-class quality,
we have unmatched expertise across Technology, Engineering, Construction,
Infrastructure Projects and Manufacturing, and maintain a leadership in all our
major lines of business.
Every aspect of L&T's businesses is characterized by professionalism and high
standards of corporate governance. Sustainability is embedded into our long-term
strategy for growth.

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The Company’s manufacturing footprint extends across eight countries in
addition to India. L&T has several international offices and a supply chain that
extends around the globe.
g. Industry Type - Larsen & Toubro (L&T) is a technology, engineering, construction and
manufacturing company. It is one of the largest and most respected companies in India's
private sector.

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3. Small Cap Stock
a. Novavax Inc. (NVAX)
b. Established year – 1987
c. Promoters –
Stockholder Stake
Shares
owned
Total value
($)
Shares
bought /
sold
Total
change
The Vanguard Group, Inc. 8.34% 5,307,429 740,386,346 789,322 17.47%
BlackRock Fund Advisors 5.75% 3,661,096 510,722,892 -92,816 -2.47%
Franklin Advisers, Inc. 3.53% 2,244,422 313,096,869 -763,002 -25.37%
SSgA Funds Management, Inc. 2.68% 1,708,859 238,385,831 -604,488 -26.13%
RA Capital Management LP 1.88% 1,198,602 167,204,979 -3,560,231 -74.81%
Capital Research & Management
Co....
1.82% 1,156,379 161,314,871 712,151 160.31%
Fidelity Management & Research
Co...
1.69% 1,074,722 149,923,719 1,074,722 --
Geode Capital Management LLC 1.41% 899,016 125,412,732 -659 -0.07%
Northern Trust Investments, Inc.(... 1.14% 728,193 101,582,924 20,538 2.90%
Perceptive Advisors LLC 1.11% 707,715 98,726,243 357,715 102.20%
d. Management -
Name Designation
John J. Trizzino
Executive Vice President, Chief Business Officer and Chief Financial
Officer
John A. Herrmann
III
Executive Vice President, Chief Legal Officer
Jill Hoyt Executive Vice President, Chief Human Resources Officer
e. Brief Introduction - Novavax, Inc. (Nasdaq:NVAX) is a late-stage
biotechnology company that promotes improved health globally through the
discovery, development, and commercialization of innovative vaccines to prevent
serious infectious diseases. Novavax recently initiated development of NVX-
CoV2373, its vaccine candidate against SARS-CoV-2, the virus that causes
COVID-19, with Phase 1 clinical trial results expected in July of 2020.
NanoFlu™, its quadrivalent influenza nanoparticle vaccine, met all primary
objectives in its pivotal Phase 3 clinical trial in older adults. Both vaccine
candidates incorporate Novavax’ proprietary saponin-based Matrix-M™ adjuvant
in order to enhance the immune response and stimulate high levels of neutralizing
antibodies. Novavax is a leading innovator of recombinant vaccines; its

23 | P a g e
proprietary technology platform combines the power and speed of genetic
engineering to efficiently produce highly immunogenic nanoparticles in order to
address urgent global health needs.
f. Industry Type – Biotechnology Novavax, Inc. is an American vaccine
development company headquartered in Gaithersburg, Maryland, with additional
facilities in Rockville, Maryland and Uppsala, Sweden. As of 2020, it has an
ongoing Phase III clinical trial in older adults for its candidate vaccine for
seasonal influenza, NanoFlu and a candidate vaccine for prevention of COVID-
19.

24 | P a g e
4. Banking Sector stock
a. SBI
b. Established Year – 1st July 1955
c. Promoters –
Shareholders Shareholding
Promoters: Government of India 56.92%
FIIs/GDRs/OCBs/NRIs 10.94%
Banks & Insurance Companies 10.63%
Mutual Funds & UTI 13.72%
Others 7.79%
Total 100.00%
d. Management –
Sr. No. Name Designation Under Section of SBI Act 1955
1 Shri Dinesh Kumar Khara Chairman 19(a)
2 Shri C.S. Setty Managing Director 19 (b)
3 Shri Ashwani Bhatia Managing Director 19 (b)
4 Shri B. Venugopal Director 19 (c)
5 Dr Ganesh Natarajan Director 19 (c)
6 Shri Ketan S. Vikamsey Director 19 (c)
7 Shri Mrugank M Paranjape Director 19 (c)
8 Dr. Pushpendra Rai Director 19 (d)
9 Dr.Purnima Gupta Director 19 (d)
10 Shri Sanjeev Maheshwari Director 19 (d)
11 Shri Debasish Panda Director 19 (e)
12 Shri Chandan Sinha Director 19 (f)
e. Brief Introduction - State Bank of India (SBI) is an Indian multinational, public sector
banking and financial services statutory body headquartered in Mumbai, Maharashtra.
SBI is the 43rd largest bank in the world and ranked 236th in the Fortune Global 500 list
of the world's biggest corporations of 2019.
A nationalized bank, it is the largest in India with a 23% market share by assets and a
25% share of the total loan and deposits market.
The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of
India, making it the oldest commercial bank in the Indian subcontinent. The Bank of
Madras merged into the other two presidency banks in British India, the Bank of Calcutta
and the Bank of Bombay, to form the Imperial Bank of India, which in turn became the
State Bank of India in 1955.

25 | P a g e
The Government of India took control of the Imperial Bank of India in 1955, with
Reserve Bank of India (India's central bank) taking a 60% stake, renaming it State Bank
of India.
f. Industry
a. Banking. Retail Banking Correspondent Banking
b. Credit Finance. Commercial Loans Merchant Banking.
c. Services. Global Trade Services Treasury Management Compliance & Risk
Remmitance from India International About Us.

26 | P a g e
5. Auto Sector stocks
a. TATA Motors
b. Established Year – 1945
c. Promoters –
Holder's Name No of Shares % Share Holding
No Of Shares 3088973894 100%
Promoters 1309551138 42.39%
Foreign Institutions 489139770 15.84%
Nbanks Mutual Funds 173058881 5.60%
Others 396570030 12.84%
d. Management –
Name Designation
Guenter Butschek CEO
Guenter Butschek Managing Director & CEO
H K Sethna Co. Secretary & Compl. Officer
H K Sethna Secretary
Hanne Sorensen Ind. Non-Executive Director
N Chandrasekaran Chairman & Non-Exe.Director
Om Prakash Bhatt Ind. Non-Executive Director
P B Balaji Group Chief Financial Officer
Ralf Speth Non Executive Director
Ratan N Tata Chairman Emeritus
Vedika Bhandarkar Independent Director
e. Brief Introduction -
A. Tata Motors Limited is an Indian multinational automotive
manufacturing company headquartered in Mumbai, Maharashtra, India.
It is a part of Tata Group, an Indian conglomerate. Its products include
passenger cars, trucks, vans, coaches, buses, sports cars, construction
equipment and military vehicles.
B. Formerly known as Tata Engineering and Locomotive Company
(TELCO), Tata Motors is a part of the Tata Group. Tata Motors has auto
manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow,
Sanand, Dharwad, and Pune in India, as well as in Argentina, South
Africa, Great Britain, and Thailand.

27 | P a g e
C. It has research and development centres in Pune, Jamshedpur, Lucknow,
and Dharwad, India and South Korea, Great Britain, and Spain. Tata
Motors' principal subsidiaries purchased the English premium car maker
Jaguar Land Rover (the maker of Jaguar and Land Rover cars) and the
South Korean commercial vehicle manufacturer Tata Daewoo.
D. Tata Motors has a bus-manufacturing joint venture with Marcopolo S.A.
(Tata Marcopolo), a construction-equipment manufacturing joint venture
with Hitachi (Tata Hitachi Construction Machinery), and a joint venture
with Fiat Chrysler which manufactures automotive components and Fiat
Chrysler and Tata branded vehicles.
E. Founded in 1945 as a manufacturer of locomotives, the company
manufactured its first commercial vehicle in 1954 in a collaboration with
Daimler-Benz AG, which ended in 1969. Tata Motors entered the
passenger vehicle market in 1988 with the launch of the TataMobile
followed by the Tata Sierra in 1991, becoming the first Indian
manufacturer to achieve the capability of developing a competitive
indigenous automobile.
F. In 1998, Tata launched the first fully indigenous Indian passenger car,
the Indica, and in 2008 launched the Tata Nano, the world's cheapest
car. Tata Motors acquired the South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004 and purchased Jaguar Land
Rover from Ford in 2008.
G. Tata Motors is listed on the BSE (Bombay Stock Exchange), where it is
a constituent of the BSE SENSEX index, the National Stock Exchange
of India, and the New York Stock Exchange. The company is ranked
265th on the Fortune Global 500 list of the world's biggest corporations
as of 2019.
H. On 17 January 2017, Natarajan Chandrasekaran was appointed chairman
of the company Tata Group. Tata Motors increases its UV market share
to over 8% in FY2019.
g. Industry - It is a part of Tata Group, an Indian conglomerate. Its products include
passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment
and military vehicles.

28 | P a g e
6. Pharma Sector Stock
a. Cipla
b. Established year – 1935
c. Promoters -
Name of the Shareholder Total Shares held
Shares pledged or otherwise
encumbered
Number
As a % of
grand total (A)
+ (B) + (C)
Numbe
r
% of
Total
shares
held
As a %
of
grand
total
(A) +
(B) +
(C)
MUSTAFA KHWAJA
HAMIED
34,567,572 4.29 0 0 0
MN RAJKUMAR GARMENTS
LLP
5,376,852 0.67 0 0 0
YUSUF KHWAJA HAMIED 163,967,68
7
20.36 0 0 0
Kamil Hamied 10,939,500 1.36 0 0 0
Shree Riddhi Chemicals LLP 0 0 0 0 0
Sophie Ahmed 45,982,000 5.71 0 0 0
Rumana Hamied 9,886,500 1.23 0 0 0
Alps Remedies Private Limited 492,985 0.06 0 0 0
Farida Hamied 0 0 0 0 0
Hamsons Laboratories LLP 0 0 0 0 0
Samina Hamied 17,909,500 2.22 0 0 0
Shirin Hamied 6,363,000 0.79 0 0 0
NEO RESEARCH LABS
PRIVATE LIMITED
0 0 0 0 0

29 | P a g e
d. Management –
Name Designation
Adil Zainulbhai Independent Director
Ashok Sinha Independent Director
Geena Malhotra Global Head
Kedar Upadhye Global Chief Financial Officer
M K Hamied Vice Chairman
Naina Lal Kidwai Independent Director
Peter Lankau Independent Director
Peter Mugyenyi Independent Director
Punita Lal Independent Director
Raghunathan Ananthanarayanan Global Chief Financial Officer
Rajendra Chopra Co. Secretary & Compl. Officer
Rajendra Chopra Secretary
Raju Mistry Global Chief People Officer
Ranjana Pathak Global Head
S Radhakrishnan Non Exe.Non Ind.Director
Samina Vaziralli Executive Vice Chairman
Umang Vohra Managing Director & Global CEO
Y K Hamied CEO
Y K Hamied Chairman
e. Brief Introduction - Cipla is a market-leading medicine maker in India. The company
has roughly 1,500 pharmaceutical products in more than 60 therapeutic categories. Some
are sold domestically, while the rest reach international markets in more than 150
countries.
It offers prescription drugs for all kinds of ailments -- arthritis, cancer, depression -- as
well as over-the-counter drugs for colds, oral hygiene, and skin care. Cipla leads the
domestic retail pharmaceutical market. The firm also makes bulk drugs, agrochemicals,
and animal products.
It has eight manufacturing plants located throughout the country. Cipla was founded as
The Chemical, Industrial, & Pharmaceutical Laboratories by Khwaja Abdul Hamied in
1935.
f. Industry - Cipla Limited is an Indian multinational pharmaceutical company,
headquartered in Mumbai, India. Cipla primarily develops medicines to treat respiratory,
cardiovascular disease, arthritis, diabetes, weight control and depression; other medical
conditions.

30 | P a g e
As of 17 September 2014, its market capitalisation was ₹49,611.58 crore (equivalent to
₹530 billion or US$7.5 billion in 2019), making it India's 42nd largest publicly traded
company by market value

31 | P a g e
7. IT Industry
a. Tata Consultancy Services
b. Established Year – 1st Apr 1968
c. Promoters –
Holder's Name No of Shares % Share Holding
No Of Shares 3752384706 100%
Promoters 2703542000 72.05%
Foreign Institutions 600369219 16%
Nbanks Mutual Funds 106448823 2.84%
Others 20932871 0.56%
d. Management
Name Designation
Aarthi Subramanian Director
Aman Mehta Independent Director
Daniel Hughes Callahan Independent Director
Debashis Ghosh Business Head
Hanne Birgitte Breinbjerg Sorensen Independent Director
K Ananth Krishnan Chief Technology Officer
K Krithivasan Business Head
Kamal Bhadada Business Head
Keki M Mistry Independent Director
Krishnan Ramanujam Business Head
Milind Lakkad Global Head - HR
N Chandrasekaran Chairman
N G Subramaniam Exe.Director & COO
O P Bhatt Independent Director
Pradeep Kumar Khosla Independent Director
Rajendra Moholkar Co. Secretary & Compl. Officer
Rajendra Moholkar Secretary
Rajesh Gopinathan CEO
Rajesh Gopinathan Managing Director & CEO
Ravi Viswanathan Chief Marketing Officer
Ron Sommer Independent Director
Shankar Narayanan Business Head
Suresh Muthuswami Business Head
Susheel Vasudevan Business Head
V Ramakrishnan Chief Financial Officer

32 | P a g e
e. Brief Introduction –
A. Tata Consultancy Services Limited (TCS) is an Indian multinational
information technology (IT) services and consulting company
headquartered in Mumbai, Maharashtra, India. It is a subsidiary of the
Tata Group and operates in 149 locations across 46 countries.
B. TCS is the second largest Indian company by market capitalisation. Tata
consultancy services is now placed among the most valuable IT services
brands worldwide.
C. In 2015, TCS was ranked 64th overall in the Forbes World's Most
Innovative Companies ranking, making it both the highest-ranked IT
services company and the top Indian company. It is the world's largest
IT services provider.
D. As of 2018, it is ranked eleventh on the Fortune India 500 list.[14] In
April 2018, TCS became the first Indian IT company to reach $100
billion in market capitalization and second Indian company ever (after
Reliance Industries achieved it in 2007 after its market capitalisation
stood at ₹6,79,332.81 crore ($102.6 billion) on the Bombay Stock
Exchange.
E. In 2016–2017, Parent company Tata Sons owned 72.05% of TCS;[20]
and more than 70% of Tata Sons' dividends were generated by TCS.[21]
In March 2018, Tata Sons decided to sell stocks of TCS worth $1.25
billion in a bulk deal.
f. Industry –
TCS' services are currently organised into the following service lines (percentage of total TCS
revenues in the 2012-13 financial year generated by each respective service line is shown in
parentheses):
 Application development and maintenance (43.80%) value;
 Asset leverage solutions (2.70%);
 Assurance services (7.70%);
 Business process outsourcing (12.50%);
 Consulting (2.00%);
 Engineering and Industrial services (4.60%);
 Enterprise solution (15.21%); and
 IT infrastructure services (11.50%)
 Cognitive Business Operations

33 | P a g e
 Cloud Infrastructure
 Automation and AIWW

34 | P a g e
Comparative Analysis
1. Reliance Industries
Reliance Industries on Thursday recorded a 0.1 per cent rise in consolidated profit (after exceptional
item) at Rs 39,880 crore in the year ended March 2020.
The oil-to-telecom conglomerate had posted a profit of Rs 39,837 crore in complete FY19. RIL
recorded a rise in revenue of 5.4 per cent at Rs 659,205 crore in FY20, the company said in a
regulatory filing.
RIL posted a 39 per cent fall in consolidated profit to Rs 6,348 crore during January-March quarter
2020 as against Rs 10,362 crore in the corresponding period of last year.
The revenue from operations were recorded at Rs 139,283 crore, down 2.30 per cent from Rs
142,565 crore in the year-ago period.
a. Net profit for the year grew by 0.1% YoY.
b. Net profit margins during the year declined from 6.9% in FY19 to 6.7% in
FY20.
c. The company's operating profit increased by 4.8% YoY during the fiscal.
Operating profit margins witnessed a fall and down at 15.3% in FY20 as
against 14.7% in FY19.
d. Other income grew by 66.4% YoY.

35 | P a g e
Balance Sheet
Equities & Liabilities Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Share Capital 6,339 6,339 6,335 3,251 3,240
Reserves & Surplus 418,244 398,983 308,297 285,058 236,936
Current Liabilities 310,183 202,021 190,647 152,826 125,022
Other Liabilities 234,146 168,402 112,246 105,611 92,522
Total Liabilities 968,912 775,745 617,525 546,746 457,720
Assets
Fixed Assets 334,436 314,745 300,447 287,319 238,289
Current Assets 166,597 152,864 123,912 106,281 90,564
Other Assets 467,879 308,136 193,166 153,146 128,867
Total Assets 968,912 775,745 617,525 546,746 457,720
Other Info
Contingent Liabilities 68,624 111,869 66,970 73,386 79,905

36 | P a g e
Valuation Ratios
Valuation Ratios Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
P/E (x) 0 24.34 16.47 6.75 6.11
P/B (x) 1.66 2.13 1.78 1.49 1.41
EV/EBITDA (x) 13.96 15.03 10.9 10.17 8.89
P/S (x) 2.1 2.33 1.93 1.77 1.45
Return Ratio
Return Ratios Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Return on Networth / Equity (%) 7.27 8.67 10.68 10.89 11.41
ROCE (%) 8.6 9.95 11.8 11.04 8.24
Return On Assets (%) 3.18 4.53 5.44 5.74 5.98
Growth Ratios
Growth Ratios Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
3 Yr CAGR Sales (%) 11.55 16.81 -4.12 -14.71 -13.5
3 Yr CAGR Net Profit (%) -- 8.65 13.95 12.65 9.29

37 | P a g e
2. Larsen & Toubro
Income Statement
Annual Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Sales 10,184 8,907 6,906 6,182 5,569
Other Income 421 329 525 198 338
Total Income 10,605 9,236 7,431 6,381 5,908
Total Expenditure 8,526 7,272 5,949 5,193 4,744
EBIT 2,079 1,964 1,482 1,187 1,163
Interest 72 4 13 3 10
Tax 454 484 308 246 215
Net Profit 1,552 1,475 1,160 937 938

38 | P a g e
Let us have a look at the detailed performance review of the company during FY19-20.
1. Operating income during the year rose 7.6% on a year-on-year
(YoY) basis.
2. The company's operating profit increased by 2.7% YoY during the
fiscal. Operating profit margins witnessed a fall and stood at 11.2%
in FY20 as against 11.8% in FY19.
3. Depreciation charges increased by 28.0% and finance costs
increased by 55.2% YoY, respectively.
4. Other income grew by 28.6% YoY.
5. Net profit for the year grew by 0.2% YoY.
6. Net profit margins during the year declined from 7.5% in FY19 to
6.9% in FY20.
No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 1,352,203 1,454,524 7.60%
Other income Rs m 18,365 23,609 28.60%
Total Revenues Rs m 1,370,568 1,478,133 7.80%
Gross profit Rs m 158,990 163,290 2.70%
Depreciation Rs m 19,230 24,623 28.00%
Interest Rs m 18,026 27,967 55.20%
Profit before tax Rs m 140,099 134,310 -4.10%
Tax Rs m 40,671 32,632 -19.80%
Profit after tax Rs m 102,166 102,397 0.20%
Gross profit margin % 11.8 11.2
Effective tax rate % 29 24.3
Net profit margin % 7.5 6.9

39 | P a g e
Balance Sheet
Equities & Liabilities
Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
Share Capital 17 17 17 17 16
Other Liabilities 1,003 32 48 28 233
Assets
Fixed Assets 1,191 322 279 287 339
Current Assets 5,986 4,840 3,983 3,074 2,158
Other Assets 1,138 1,063 788 851 740
Total Assets 8,316 6,226 5,051 4,212 3,238
Other Info
Contingent Liabilities 718 616 593 577
Valuation Ratios
Valuation Ratios
Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
P/E (x) 0 19.96 19.79 12.97 0
P/B (x) 4.76 6.22 6.2 4.09 0
EV/EBITDA (x) 10.72 14.18 14.5 9.23 0
P/S (x) 2.44 3.29 3.34 1.97 0
Return Ratio
Return Ratios
Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
Return on Networth / Equity
(%)
29.68 31.29 31.19 31.49 50.34
ROCE (%) 33.35 41.38 30.79 31.19 55.49
Return On Assets (%) 18.66 23.69 22.96 22.25 28.97
Growth Ratios
Growth Ratios
Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
3 Yr CAGR Sales (%) 18.1 16.94 13.33 10.01 15.51
3 Yr CAGR Net Profit (%) 18.3 16.28 14.46 0.78 17.43

40 | P a g e
3. TATA Motors
Income Statement
Annual Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Sales 43,928 69,202 58,831 44,316 42,845
Other Income 1,383 2,554 1,557 981 1,402
Total Income 45,311 71,757 60,389 45,297 44,247
Total Expenditure 50,465 67,564 59,591 46,081 42,499
EBIT -5,154 4,192 797 -784 1,524
Interest 1,973 1,793 1,744 1,569 1,592
Tax 162 378 87 76 -4
Net Profit -7,289 2,020 -1,034 -2,429 -62

41 | P a g e
1. Tata Motors’ net loss stood at Rs 9,894.2 crore in the three months ended March compared
with a profit of Rs 1,117 crore a year ago, as a lockdown to contain the coronavirus
pandemic across its markets ravaged sales.
2. That included a Rs 2,549-crore provision for impairment in its passenger vehicles business,
onerous contracts and subsidiaries.
Balance Sheet
Share Capital 719 679 679 679 679
Assets
Fixed Assets 29,702 28,573 26,800 28,043 26,762
Current Assets 13,568 13,229 14,971 12,757 11,861
Other Assets 19,318 19,106 17,440 18,077 18,051
Total Assets 62,589 60,909 59,212 58,878 56,676
Other Info
Contingent Liabilities 4,737 7,246 5,269 4,787
3. The automaker will also cut 1,100 more jobs at Jaguar Land Rover and defer or cancel
investments at domestic business and luxury arm as it looks to pare debt.
4. Of the 36 analysts tracking the stock, 18 recommend a ‘buy’, 11 suggest a ‘hold’ and the rest
has a ‘sell’ rating.
5. The average 12-month target price tracked by Bloomberg implies an upside of 10%. Shares
of Tata Motors dropped as much as 5%

42 | P a g e
Valuation Ratios
Valuation Ratios Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
P/E (x) 0 29.34 -107.2 -65.15 -2147.8
P/B (x) 1.39 2.67 5.51 7.48 5.64
EV/EBITDA (x) 58.65 10.06 26.03 68.21 33.26
P/S (x) 0.58 0.86 1.89 3.57 3.06
Return Ratio
Return Ratios Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
Return on Networth / Equity
(%)
-39.64 9.11 -5.13 -11.48 -0.26
ROCE (%) -7.18 11.57 5.04 -1.19 5.31
Return On Assets (%) -11.64 3.31 -1.74 -4.12 -0.1
Growth Ratios
Growth Ratios Mar-
20
Mar-
19
Mar-
18
Mar-
17
Mar-
16
3 Yr CAGR Sales (%) -0.29 17.33 17.47 8.93 -1.45
3 Yr CAGR Net Profit (%) -- 218.91 -- 93.66 --

43 | P a g e
4. Cipla
CIPLA Income Statement Analysis
1. Operating income during the year rose 4.5% on a year-on-year (YoY) basis.
2. The company's operating profit increased by 3.5% YoY during the fiscal. Operating profit
margins witnessed a fall and stood at 19.2% in FY20 as against 19.4% in FY19.
3. Depreciation charges decreased by 11.4% and finance costs increased by 17.2% YoY,
respectively.
4. Other income declined by 27.8% YoY.
6. Net profit margins during the year declined from 9.1% in FY19 to 8.8% in FY20.
12 Mar-19*
12 Mar-20*
%
Change
159,710 166,949 4.50%
4,766 3,442 -27.80%
164,475 170,391 3.60%
30,973 32,060 3.50%
13,263 11,747 -11.40%
1,684 1,974 17.20%
20,791 21,782 4.80%
5,695 6,312 10.80%
14,924 14,995 0.50%
19.4 19.2
27.4 29
9.1 8.8

44 | P a g e
Net Sales 159,710 166,949 4.50%
Other income 4,766 3,442 -27.80%
Total Revenues 164,475 170,391 3.60%
Gross profit 30,973 32,060 3.50%
Depreciation 13,263 11,747 -11.40%
Interest 1,684 1,974 17.20%
Profit before tax 20,791 21,782 4.80%
Tax 5,695 6,312 10.80%
Profit after tax 14,924 14,995 0.50%
Gross profit margin 19.4 19.2
Effective tax rate 27.4 29
Net profit margin 9.1 8.8

45 | P a g e
Current Valuations for CIPLA
Valuation Ratios
P/E (x) 0 22.55 29.89 48.88 28.11
P/B (x) 1.96 2.7 3.1 3.72 3.43
EV/EBITDA (x) 9.33 13.79 17.26 27.76 18.1
P/S (x) 2.69 3.45 3.84 4.42 3.4
1. The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.6, an
improvement from the EPS of Rs 18.5 recorded last year.
2. The price to earnings (P/E) ratio, at the current price of Rs 778.1, stands at 38.1 times its
trailing twelve months earnings.
3. The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the
price to sales ratio stands at 2.3 times.
4. The company's price to cash flow (P/CF) ratio stood at 23.0 times its end-of-year operating
cash flow earnings.
CIPLA Share Price Performance
1. Over the last one year, CIPLA share price has moved up from Rs 467.8 to Rs 787.2,
registering a Gain of Rs 319.4 or around 68.3%.
2. Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,361.0 (up 0.2%). Over
the last one year it has moved up from 13,446.2 to 21,361.0, a gain of 7,915 points (up
58.9%).
3. Overall, the S&P BSE SENSEX is up 14.3% over the year.

46 | P a g e
Balance Sheet
Share Capital 161 161 161 160 160
Other Liabilities 417 311 249 250 298
Assets
Fixed Assets 4,470 4,486 4,782 4,791 4,377
Current Assets 9,027 9,478 7,938 6,345 6,467
Other Assets 6,907 4,453 4,373 4,470 4,394
Total Assets 20,405 18,418 17,094 15,607 15,239
Other Info
Ratio Analysis for CIPLA
Return Ratio
ROCE (%) 16.86 15.63 13.93 9.39 11.9
Return On Assets (%) 11.36 10.25 8.59 6.24 9.59
1. Current Ratio
The company's current ratio deteriorated and stood at 2.7x during FY20, from 3.3x during FY19.
The current ratio measures the company's ability to pay short-term and long-term obligations.
2. Interest Coverage Ratio
The company's interest coverage ratio deteriorated and stood at 12.0x during FY20, from 13.3x
during FY19.
The interest coverage ratio of a company states how easily a company can pay its interest expense on
outstanding debt. A higher ratio is preferable.
3. Return on Equity (ROE)
The ROE for the company declined and down at 9.5% during FY20, from 9.9% during FY20. The
ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

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Growth Ratios
Growth Ratios Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
3 Yr CAGR Sales (%) 8.42 1.05 6.03 7.14 21.55
3 Yr CAGR Net Profit (%) 54.2 13.64 11.51 -16.2 -1.5

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5. Tata Consultancy Services
TCS Income Statement Analysis
1. Operating income during the year rose 7.2% on a year-on-year (YoY) basis.
2. The company's operating profit increased by 6.6% YoY during the fiscal. Operating profit
margins witnessed a fall and stood at 26.8% in FY20 as against 27.0% in FY19.
3. Depreciation charges increased by 71.6% and finance costs increased by 366.7% YoY,
respectively.
4. Other income grew by 6.5% YoY.
6. Net profit margins during the year declined from 20.9% in FY19 to 20.1% in FY20.
Net Sales 1,464,630 1,569,490 7.20%
Other income 43,110 45,920 6.50%
Total Revenues 1,507,740 1,615,410 7.10%
Gross profit 395,060 421,090 6.60%
Depreciation 20,560 35,290 71.60%
Interest 1,980 9,240 366.70%
Profit before tax 415,630 422,480 1.60%
Tax 100,010 98,010 -2.00%
Profit after tax 315,620 324,470 2.80%
Gross profit margin 27 26.8
Effective tax rate 24.1 23.2
Net profit margin 20.9 20.1

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Balance Sheet Analysis
Balance Sheet
Share Capital 375 375 191 197 197
Assets
Fixed Assets 16,903 10,495 10,678 10,708 10,720
Current Assets 79,194 79,032 68,222 68,442 53,377
Other Assets 8,878 9,973 12,156 10,608 13,320
Total Assets 104,975 99,500 91,056 89,758 77,417
Other Info
1. The company's current liabilities during FY20 stood at Rs 271 billion as compared to Rs 221
billion in FY19, thereby witnessing an increase of 22.5%.
2. Current assets fell 2% and stood at Rs 902 billion, while fixed assets rose 63% and stood at
Rs 216 billion in FY20.
3. Overall, the total assets and liabilities for FY20 stood at Rs 1,209 billion as against Rs 1,149
billion during FY19, thereby witnessing a growth of 5%.

50 | P a g e
Current Valuations for TCS
Valuation Ratios
P/E (x) 0 25.23 10.86 10.13 10.76
P/B (x) 9.19 9.51 7.17 6.14 7.62
EV/EBITDA (x) 14.94 17.4 16.1 15.09 15.94
P/S (x) 5.21 6.09 5.59 5.17 5.77
1. The trailing twelve-month earnings per share (EPS) of the company stands at Rs 86.5, an
improvement from the EPS of Rs 84.1 recorded last year.
2. The price to earnings (P/E) ratio, at the current price of Rs 2,265.0, stands at 27.7 times its
trailing twelve months earnings.
3. The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the
price to sales ratio stands at 4.7 times.
4. The company's price to cash flow (P/CF) ratio stood at 24.1 times its end-of-year operating
cash flow earnings.
Ratio Analysis
Return Ratio
ROCE (%) 52.79 50.71 41.5 38.05 34.9
Return On Assets (%) 31.68 30.21 27.72 26.35 29.8
Growth Ratios
Growth Ratios Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
3 Yr CAGR Sales (%) 19.02 19.77 15.03 19.72 33.16
3 Yr CAGR Net Profit (%) 18.58 14.15 14.49 13.15 34.34

51 | P a g e
1. Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY20,
from 4.2x during FY19.
The current ratio measures the company's ability to pay short-term and long-term obligations.
2. Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at
46.7x during FY20, from 210.9x during FY19.
The interest coverage ratio of a company states how easily a company can pay its interest
expense on outstanding debt. A higher ratio is preferable.
3. Return on Equity (ROE): The ROE for the company improved and stood at 38.6% during
FY20, from 35.3% during FY20. The ROE measures the ability of a firm to generate profits
from its shareholders capital in the company.
4. Return on Capital Employed (ROCE): The ROCE for the company improved and stood at
51.3% during FY20, from 46.7% during FY19. The ROCE measures the ability of a firm to
generate profits from its total capital (shareholder capital plus debt capital) employed in the
company.
5. Return on Assets (ROA): The ROA of the company declined and down at 27.6% during
FY20, from 27.6% during FY19. The ROA measures how efficiently the company uses its
assets to generate earnings.
Shares Performance
1. Over the last one year, TCS share price has moved up from Rs 2,248.6 to Rs 2,265.0,
registering a gain of Rs 16.4 or around 0.7%.
2. Meanwhile, the S&P BSE IT Index is trading at Rs 18,100.7 (up 0.6%). Over the last one
year it has moved up from 15,638.8 to 18,100.7, a gain of 2,462 points (up 15.7%).

52 | P a g e
6. State bank Of India
Price Rs 266.3
Mkt Cap Rs m 2,066,839
Vol '000 516.7
P/E X 11.5
P/CF X 1.4
EPS (TTM) Rs 23.1
% ch % -0.5
No. of shares m 7,762.78
% ch week % -1.5
% ch 1-mth % 10.8
% ch 12-mth % -19.8
52 week H/L Rs 339.9/149.6
SBI INCOME DATA
No. of Mths
Year Ending
Mar-
16*
Mar-
17*
Mar-
18*
Mar-
19*
Mar-
20*
Interest income 2,206,328 2,304,475 2,289,703 2,533,221 2,698,517
Other income 528,284 681,930 775,572 773,652 981,590
Interest expense 1,430,474 1,491,147 1,466,030 1,558,675 1,611,238
Net interest income 775,854 813,328 823,673 974,547 1,087,279
Operating expense 743,072 872,901 961,544 1,148,003 1,317,816
Provisions/contingencies 379,298 612,909 746,816 628,566 470,991
Profit before tax 181,768 9,448 -109,114 -28,370 280,062
Extraordinary Inc (Exp) 0 0 0 0 0
Minority Interest -7,945 3,386 -8,070 -10,509 -13,722
Prior Period Items 2,758 2,933 4,382 2,815 29,631
Tax 54,335 13,355 -67,240 -59,061 98,294
Profit after tax 122,246 2,412 -45,563 22,996 197,678
Net profit margin 5.5 0.1 -2 0.9 7.3
SBI Share Price Performance
1. Over the last one year, SBI share price has moved down from Rs 326.9 to Rs 266.3,
registering a Loss of Rs 60.7 or around 18.6%.
2. Meanwhile, the S&P BSE BANKEX Index is trading at Rs 34,978.9 (down 0.9%). Over the
last one year it has moved down from 36,768.3 to 34,978.9, a gain of 1,789 points (down
4.9%).

53 | P a g e
BSE SENSEX V/s NSE NIFY
1. BSE SENSEX
Year Open High Low Close
2016 26101.5 29077.3 22494.6 26626.5
2017 26711.2 34138 26447.1 34056.8
2018 34060 38989.7 32483.8 36068.3
2019 36161.8 41810 35287.2 41253.7
2020 41349.4 46992.6 25638.9 46890.3

54 | P a g e
2. NSE NIFTY
Difference Between Sensex and Nifty
Sensex and Nifty are stock market indices, which are used to depict the strength of the stock market.
While both are calculated almost in the same method, there are a few differences between the two
market indices.
1. While Nifty is derived from ‘National Fifty’, Sensex is derived from ‘Sensitive Index’.
2. Sensex is operated by the Bombay Stock Exchange (BSE), while Nifty is operated by the
India Index Services Products Ltd. (IISL), a subsidiary of National Stock Exchange (NSE).
3. Nifty consists of 50 selected stocks from the top 50 companies, which are used to determine
the index, while Sensex consists of 30 selected stocks from the top 30 companies, which are
used to determine the index
4. The base index value of Nifty is 1000, while the base index value of Sensex is 100.
Factors That Affect the Performance of an Index
Sensex and Nifty are sensitive to the changes in the economy. When the economy is booming, it gets
reflected in the superior performance of the stock market and the indices will be upward. Several
macro-economic factors, therefore, influence the performance of indices.
Change in rate of interest: Interest rate and stock market move in the opposite direction. When the
interest rate goes up in the economy, lending becomes costlier. To compensate this, companies
reduce their expenses, which put pressure on stock performance. As a result, indices fall.

55 | P a g e
Conclusion:
1. Nifty and Sensex are two of the major stock market indices in India. Both Nifty and Sensex
depict the strength of the stock market, and have many similarities. However, the key
difference between Sensex and Nifty is that Nifty is designed to measure the performance of
50 top companies, while Sensex has been designed to measure the performance of 30 well-
established companies.
2. Furthermore, the base value of the index for Sensex is 100, while the base index value of
Nifty is 1000.
3. Sensex and Nifty are the benchmark indices of BSE and NSE, respectively. Nifty comprising
50 stocks is a broader index than Sensex, which contains top 30 performing stocks.
4. Hence, Sensex is more niche. So, when the market is bullish, the top companies perform
better, pushing Sensex higher. If you compare only the data, then Sensex has performed
better than Nifty, which has a broader base of 50 companies.
5. Sensex is calculated on the top 30 large-cap company stocks trading in BSE. Nifty consider a
much broader base to include the top 50 trading stocks, and hence, is more diversified.
Because of the broader base, the value of Nifty is often less than Sensex.
6. Apart from that, both indices measure overall market performance, indicate market
movement, and allow investors to compare, and use them as a basis to measure portfolio
performance.

56 | P a g e
Conclusion
1. Market Review
Equity benchmarks consistently maintained their downward journey for the third consecutive session
and the NSE Nifty closed the F&O expiry session below the 5,500 mark. The BSE benchmark
Sensex fell 223 points or 1.21% to close at 18,209 and the NSE Nifty lost 59 points or 1.06% to end
at 5,488. Selling was seen in Financial, metal, technology, realty, power stocks while cement shares
showed buying interest on positive Q1 numbers. The market breadth was in favour of declines and
the total traded turnover was at Rs 2.5 lakh crore. In the July series, the Sensex and Nifty tumbled
around 3%.
2. Nifty Technical outlook for the day
Equity benchmarks consistently maintained their downward journey for the third consecutive session
and closed the July F&O expiry below the 5,500 mark. The short term trend has turned very pathetic
as huge selling is seen across all sectors, where financials, steel and capital goods have turned very
weak. On the lower side strong and final support for nifty future seen at 5431 which is the trend-line
joining from the lows of 11 (Feb) 5175 to lows of 25 (May) 5328.
And going forward if nifty future trades consistently below 5430 then 5360 – 5290 is possible very
soon. So Avoid buying below 5430. For the Sensex strong support exits at 18130 levels and break
below this point could drift the index lower to next support of 17900 – 17750 levels while resistance
seen at 18600 levels and rally could be only stability above 18600 levels.
BANK NIFTY @ 10834 has also turned very negative which was few days back strongly holding
above its 200-EMA of 11003. Strong support is seen around 10700-10620-10500 levels where
possibly buying could emerge. Banking index could turn very negative only if closes below 10500
till then there is chance that we could see a bounce back.
A stock exchange is an exchange where traders and stock brokers buy and sell shares of stock, bonds
and other securities.
It also offers facilities for issue and redemption of securities and other financial instruments. Stock
issued by listed companies and unit trusts, bonds and pooled investment products can be traded on a
stock exchange.
A stock exchange functions as a 'continuous auction' market where transactions are conducted
between the buyers and sellers.

57 | P a g e
A stock exchange plays an important role in the economy. It helps to raise capital for business,
mobilize savings for investment, facilitates the growth of companies, and enables profit sharing.
It assists in creating investment opportunities for small investors, and raising capital for development
projects taken up by the government. It acts as a barometer of the economy.
Sensex and Nifty are essential to buy and sell stocks on BSE and NSE respectively while using your
trading account. There are a variety of indices that summaries stock performance based on sector,
company size, and other features.
Indices help to pick stocks faster, discover the underlying sentiments of investors, and aid in
convenient passive investing.
Another important step to take before you begin your trading journey is to open trading account. For
those who are unaware of the meaning of a trading account, an online trading account allows one to
access BSE and NSE to buy or sell stocks using the stock market indices like Sensex and Nifty as
their guide. Once you’ve opened your trading account, you can trade with relative ease and
flexibility.
Hence after studying and comparing both the Bombay stock exchange and National stock exchanges,
we can conclude that both BSE and NSE are the pillars of Indian stock market. As nervous system is
important for the functioning of the body, similarly they are the nervous system of the Indian
economy.
They are not the rivals; they should try to be complementary to each other. If both go hand in hand
than it will result in rapid growth and up liftmen of the nation. Though they function differently and
rules, norms and procedures of both the stock exchanges are different they are the main source in the
up liftmen of the nation’s growth.
The growth of the nation entirely depends on these two factors. Finally it can be concluded that BSE
and NSE are the icons of Indian capital market. BSE is the icon of stability, consistent and constant
growth in terms of financial performance while NSE is the icon of rapid growth and taking a lead in
implementing innovations.
NSE was incorporated only before twenty years and today it has overtaken the BSE which ruled
monopolistically on Indian capital market over a century. This shows the efficiency and
effectiveness of the performance of the management of NSE. BSE and NSE are not rivals; both of
them are the pillars of Indian economy.

58 | P a g e
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