Fundamental Analysis of Hdfc Bank

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A Research Project On

Fundamental Analysis of ICICI Bank
On the fulfillment of two year Full time Post Graduate Diploma in Management

Guru Nanak Institute of Management, Punjabi Bagh, New Delhi

Submitted By
NEETU HANS Roll No-6003 Specialization: Finance PGDM

Supervised By
Mr. N.P Singh Asst. Prof. Finance

A Research Project On

Fundamental Analysis of ICICI Bank
On the fulfillment of two year Full time Post Graduate Diploma in Management

Guru Nanak Institute of Management, Punjabi Bagh, New Delhi

Submitted By
Rohit Sharma
Asim Rssool

Supervised By
Mr. N.P Singh

TABLE CONTENTS Sr.no TITLE 1. 2. 3. 4. 5. 6. Introduction to fundamental analysis Economic analysis Industry analysis Company analysis Research methodology Data analysis Economic Industry Company 7. 8. 9. Finding & Limitations Conclusion & Suggestion Bibliography Page no. 6 14 17 26 33 36 38 45 52 72 76 80

INTRODUCTION TO FUNDAMENTAL ANALYSIS (Chapter-1)

What is analysis?
The examination and evaluation of the relevant information to select the best course of action from among various alternatives. The methods used to analyze securities and make investment decisions fall into two very broad categories: fundamental analysis and technical analysis. Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company or a commodity. Technicians (sometimes called chartists) are only interested in the price movement in the market.

What is technical analysis?
Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

What is fundamental analysis?
Fundamental Analysis involves examining the economic, financial and other qualitative and quantitative factors related to a security in order to determine its intrinsic value. It attempts to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and management of companies). Fundamental analysis, which is also known as quantitative analysis, involves delving into a company‟s financial statements (such as profit and loss account and balance sheet) in order to study various financial indicators (such as revenues, earnings, liabilities, expenses and assets). Such analysis is usually carried out by analysts, brokers and savvy investors. Many analysts and investors focus on a single number--net income (or earnings)--to evaluate performance. When investors attempt to forecast the market value of a firm, they frequently rely on earnings. Many institutional investors, analysts and regulators believe earnings are not as relevant as they once were. Due to nonrecurring events, disparities in measuring risk and management's ability to disguise fundamental earnings problems, other measures beyond net income can assist in predicting future firm earnings.

Two Approaches of fundamental analysis
While carrying out fundamental analysis, investors can use either of the following approaches: 1 .Top-down approach: In this approach, an analyst investigates both international and national economic indicators, such as GDP growth rates, energy prices, inflation and interest rates. The

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search for the best security then trickles down to the analysis of total sales, price levels and foreign competition in a sector in order to identify the best business in the sector. 2. Bottom-up approach: In this approach, an analyst starts the search with specific businesses, irrespective of their industry/region.

How does fundamental analysis...
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