A Study on Risk and Return Analysis of Selected Stocks in BSE Sensex by ABHISHEK.V (1AZ16MBA04)
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A Project report (16MBAPR407) A Study on Risk and Return analysis of Selected Stocks in BSE Sensex BY ABHISHEK.V (1AZ16MBA04) Submitted to VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM In partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of INTERNAL GUIDE EXTERNAL GUIDE Dr.Prakash B Yargol Meghesh.M Professor Business Head Acharya Institute of Technology J WINGS Department of MBA Acharya Institute of Technology Soladevanahalli, Bangalore-560 107 May 2018 CERTIFICATE TO WHOl\l SO EVER IT MAY CONCERN I. This is to certify that Mr. Abhishek.\", a student of Acharya Institute of Technology - th Bangal01:e, Pursued 03 (Three) months of Internship with us from 15 January 2018 to 24'h March 2018 2. During the Summer Internship. he has successfully completed the project titled "A ~tudy on Risk and Re-turn analysis of selected stocks in BSE Sensex" under the guidance of Mr. Megesh. M. 3. The Students performance during the Internship and comments on his project work are as under:- Mr. Abhishek.V completes ass1gnmcnls in a timely manner. performs quality work that is accurate and thorough, and manages time effectively. Student is responsible, punctual. ha~ good attendance. Student expresses thoughts clearly and is professional in dealing with both co-workers and the clients. Initiative asks for work if not assigned and is able to work independently. We wish him all the very best in foturt' endeavors (Signature of the Autl10rized Company Official) Name Me~esh. M Designation: Business I lead Date 2-l-03 -2018 No. 960/1, DM Complex, 2nd Floor, 5th Cross, Opp: V V Convention Hall, Babusapalya, ,. ,,. T , t- _ .C:: 1. ACHARYA INSTITUTE OF TECHNOLOGY (Affiliated to Visvesvaraya Technological University, Belagavi, Approved by AICTE, New Delhi and Accredited by NBA and NAAC ) Date: 19/05/2018 CERTIFICATE This is to certify that Mr. Abhishek V bearing USN 1AZ16MBA04 is a bonafide student of Master of Business Administration course of the Institute 2016-18 batch, affiliated to Visvesvaraya Technological University, Belgaum. Project report on "A Study on Risk and Return Analysis of Selected Stock in BSE Sensex" at J Wings Manifest, Bangalore is prepared by him under the guidance of Dr. Prakash B Yaragol in partial fulfillment of the requirements for the award of the degree of Master of Business Administration, Visvesvaraya Technological University, Belgaum, Karnataka. ~)~2<, IS-/1co1<r Signature of Internal Guide Signature o Head of the Department Department of MBA Ach arya l'istitute of Te"~-- ·· .,. ..,~. ;: ,., . ·- · ' ' r,N ,& ').»~ Signature of Principal PRINCIPAL ·• vA 1'NSTi ri '1 - .- :--:-- . ·-:,,-r....... ,, "'" ' . , ....... , ..,1l'lvL .. ·101at::vanaha l11 '-;~;;~-=- -,1·-.;-~c:;' 1u 1 DECLARATION I, Abhishek. V, hereby declare that the Internship report entitled "A Study on Risk and Return Analysis of Selected Stocks in BSE Sensex" at "J . WINGS" (Kalyan Nagar. Bangalore) prepared by me under the guidance of Dr.Prakash B Yargol, Professor of M.B.A Department. Acharya Institute of Technology and external assistance by Megesh.M, Business Head, J WTNGS. I also declare that this Internship work is towards the partial fulfilment of the university regulations for the award of degree of Master of Business Administration by Visvcsvaraya Technological University. Bclgaum. I have undergone a summer project for a period of Ten weeks. I further declare that this project is based on the original study undertaken by me and has not been submitted for the award of any degree/diploma from any other University / Institution. Ab~ Place: BANGALORE Signature of the student Date: ;). ~ / 0 S/ J O I f A BHlSHEK .V IAZ16MBA04 ACKNOWLEDGEMENT I wish to thank all the respondents from the firms who spent their valuable time in discussing with me and giving valuable data by filling up the questionnaire. I deem it a privilege to thank our Principal, Dr.Sharanabasava Pilli, Dr.Mahesh, Dean Academics and our HOD Dr.Nijaguna for having given me the opportunity to do the project, which has been a very valuable learning experience. I am truly grateful to my external guide Meghesh.M, Business Head, J Wings manifest, and my internal research Guide, Dr. Prakash B Yargol, for their research guidance, encouragement, and opportunities provided. My sincere and heartfelt thanks to all my teachers at the Department of MBA, Acharya Institute of Technology for their valuable support and guidance. Last, but not least, I want to express my deep appreciation to my parents for their unstinted support. ABHISHEK V. 1AZ16MBA04 TABLE OF CONTENTS Chapter Chapter Titles Page No No Declaration Acknowledgement Company Certificate College Certificate 1 Executive Summary 1 Introduction 1.1 Introduction 2 1.2 Industry Profile 2 1.3 Company profile 5 1.3.2 Vision mission & quality policy 6 1.3.3 Products/ service profile 6 1.3.4 Areas of operation 8 1.3.5 Infrastructural facilities 8 9 1.4 Competitors information 10 1.5 Swot analysis 11 1.5 Future growth & prospectus 12 1.6 Financial statement 2 Conceptual background and literature review 2.1 Theoretical background of the study 13 2.2 Literature review with research gap 17 3 Research Design 3.1 Statement of the problem 21 3.2 Need for the study 21 3.3 Objectives 21 21 3.4 Scope of the study 22 3.5 Research methodology 22 3.7 Limitations 24 3.8 Chapter scheme. 24 4 Analysis and Interpretation 4.1 Data 26 4.2 Data Analysis 26 4.3 Interpretation of Data 26 4.4 Statistical Tools results 26 5 Summary of Findings, Conclusion and Suggestions 5.1 Findings 70 5.2 Conclusions 71 5.3 Suggestions/ Recommendations 72 Bibliography Annexure List of Tables Table no Particulars Page number 1 Leverage Ratios 12 2 Profitability Ratios 12 3 Table showing return and risk of Sensex 26 4 Table showing risk and return of Adani Ports and Special 27 Econmic Zone Ltd. 5 Table showing risk and return calculation of Asian Paints Ltd. 29 6 Table showing risk and return calculation of Axis Bank Ltd. 31 7 Table showing risk and return calculation of Bajaj Auto Ltd. 33 8 Table showing risk and return calculation of Bharti Airtel Ltd. 35 9 Table showing risk and return calculation of Coal India Ltd. 37 10 Table showing risk and return calculation of Hero Moto Corp 39 11 Table showing risk and return calculation of Housing 41 Development Finance Corporation Ltd. 12 Table showing risk and return calculation of Hindustan Unilever 43 Ltd. 13 Table showing risk and return calculation of Induslnd Bank Ltd. 45 14 Table showing risk and return calculation of Infosys Ltd. 47 15 Table showing Risk and return of calculation ITC Ltd. 49 16 Table showing Risk and return calculation of Kotak Mahindra 51 Bank Ltd. 17 Table showing risk and return calculation of Larsen and Toubro 53 Ltd. 18 Table showing risk and return calculation of Mahindra and 55 Mahindra Ltd. 19 Table showing risk and return calculation of ONGC Ltd. 57 20 Table showing risk and return calculation of Reliance Industry 59 Ltd. 21 Table showing risk and return calculation of Tata Consultancy 61 Service Ltd. 22 Table showing risk and return calculation of Wipro Ltd. 63 23 Table showing risk and return calculation of Yes Bank Ltd. 65 24 Table showing security review of companies 67 List of Graphs Graph Particulars Page No No 1 Graph Showing Yearly Return of Adani Ports and Special 28 Economic Zone. 2 Graph Showing Yearly Return of Asian Paints. 30 3 Graph Showing Yearly Return of Axis Bank Ltd. 32 4 Graph Showing Yearly Return of Bajaj Auto. 34 5 Graph Showing Yearly Return of Bharti Airtel 36 6 Graph Showing Yearly Return of Coal India. 38 7 Table showing risk and return calculation of Hero Moto Corp 40 8 Graph Showing Yearly Return of Housing Development Finance 42 Corporation. 9 Graph Showing Yearly Return of Hindustan Unilever Ltd. 44 10 Graph Showing Yearly Return of Induslnd Bank Ltd. 46 11 Graph Showing Yearly Return of Infosys Ltd. 48 12 Graph Showing Yearly Return of ITC Ltd. 50 13 Graph Showing Yearly Return of Kotak Mahindra Bank Ltd. 52 14 Graph Showing Yearly Return of Larsen and Toubro Ltd. 54 15 Graph Showing Yearly Return of Mahindra and Mahindra Ltd. 56 16 Graph Showing Yearly Return of Oil and Natural Gas Corp Ltd. 58 17 Graph Showing Yearly Return of Reliance Industry Ltd. 60 18 Graph Showing Yearly Return of Tata Consultancy Services Ltd. 62 19 Graph Showing Yearly Return of Wipro Ltd. 64 20 Graph Showing Yearly Return of Yes Bank Ltd. 66 21 Graph showing risk of the selected stocks. 68 22 Graph showing return of the selected stocks. 69 Executive Summary This project was carried on to know the working environment in a company and it is a part of our curriculum. This project gives us pre- professional experience and gives knowledge and skills prior starting our carrier. This project has exposed us to understand the working of company, industry and take up in depth study relating to an issue. There will be many issue in an organization where in I have chosen one of those issue for the study. This project has helped me in understanding business operations and challenges faced by the company. The theoretical knowledge which I have gained in the class room was helpful in this project and applied it practically. As a requirement of Master of Business Administration course as per the requirement of VTU this project has been taken up. This project was carried at J WINGS, which has been providing advisory based services and products for his or his clients to finally video display their folder of monetary and financial goals.