Perfomance Comparision of Securities

Finance

Project work

Performance Comparison of Securities

Table of Contents

1 Objective 3

2 Introduction 3

3 Analysis 4

3.1 Revenue Growth 4

3.1.1 Observations: 5

3.1.2 Rankings: 5

3.2 PAT Growth 5

3.2.1 Observations: 6

3.2.2 Rankings: 6

3.3 EPS Comparative Study 7

3.3.1 Observations: 8

3.3.2 Rankings: 8

3.3 P/E Comparative Study 9

3.3.1 Observations: 10

3.3.2 Rankings: 10

4 Interim Conclusion 11

5 Individual Security Analysis 12

5.1 MACD (Moving Average Convergence/Divergence) 12

5.1.1 Overview: 12

5.1.2 Interpretation: 12

5.2 RSI (Relative Strength Index) 13

5.2.1 Overview: 13

5.2.2 Interpretation: 13

5.3 Candlestick Analysis Interpretation 14

5.3.1 Dark Cloud Cover 14

5.3.2 Evening Star 14

5.3.3 Engulfing Pattern 14

5.3.4 Shooting Star 14

5.3.5 Three Black Crows 14

5.3.6 Inverted Hammer 14

5.3.7 Morning Star 14

5.3.8 Piercing Line 15

5.3.9 Three white soldiers 15

5.3.10 Downside Tasuki Gap 15

5.3.11 Falling Three methods 15

5.3.12 Rising Three methods 15

5.4 Tata Consultancy Services (TCS) 16

5.4.1 Stock Price Movement Chart: 16

5.4.2 Candlestick Analysis: 17

5.4.3 MACD Analysis: 18

5.4.4 RSI Analysis: 18

5.5 WIPRO 19

5.5.1 Stock Price Movement Chart: 19

5.5.2 Candlestick Analysis: 20

5.5.3 MACD Analysis: 21

5.5.4 RSI Analysis: 21

5.6 INFOSYS 22

5.6.1 Stock Price Movement Chart: 22

5.6.2 Candlestick Analysis: 23

5.6.3 MACD Analysis: 24

5.6.4 RSI Analysis: 24

5.7 SATYAM 25

5.7.1 Stock Price Movement Chart: 25

5.7.2 Candlestick Analysis: 26

5.7.3 MACD Analysis: 27

5.7.4 RSI Analysis: 27

6 References 28

1 Objective

The purpose of this report is to evaluate the performance of common stocks under alternate investment strategies. The main focus of this report will be to measure the investment performance of the sample securities on the basis of P/E ratio, EPS, revenue growth, PAT growth rate and other technical analysis.

2 Introduction

A common stock represents the speculative net worth of the company. The companies are no more simply valued on the basis of their net worth only. A lot of factors are taken into account to gauge the potential of a company, such as the stock prices, the P/E evaluation and comparison of P/E with the companies in similar business, EPS and various other technical ratios.

For an institutional or a retail investor it is extremely important to understand the future growth prospect of the company to take an invested position. To gauge this growth prospect one could choose to research on the macroeconomic factors that impact the industry/country that the company is operational in or one could choose to research the microeconomic factors that will impact the question the relevance and existence of the business itself.

But, if one has to take a relatively short term view and keep into account that the above mentioned factors will be constant throughout the period under evaluation, it becomes extremely important to carry out the technical analysis.

Since the funds with every investor are limited and diversification is the only way to hedge risk, one would like to invest only in the best performing security within each sector. So, the choice of a security over its rival business parties in a particular sector needs to be studied carefully.

We will be studying the securities under the IT sector to have a focussed discussion and develop a comparative view.

The securities under observation are:

1. HCL TECHNOLOGIES

2. INFOSYS

3. SATYAM COMPUTER SERVICES LIMITED

4. TATA CONSULTANCY SERVICES (TCS)

5. TECH MAHINDRA

6. WIPRO

3 Analysis

3.1 Revenue Growth

The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.

Revenue is calculated by multiplying the price at which goods or services are sold by the number