FUNDAMENTAL ANLAYSIS OF BHARTI AIRTEL
SUBJECT:- SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
Dr. Hussain Yaganti
1. Devisetty Yeswanth 2008A7PS038H 2. G Sai Kaushik 2008A2PS300H
BITS PILANI HYDERABAD CAMPUS
Fundamental analysis is the examination of the underlying forces that affect the well being of the company, industry groups and companies. As with most analysis the goal is to develop a forecast of future price movement and profit from it. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level their might be an examination of supply and demand forces of the products. For the national economy fundamental analysis might focus on economic data to asses the present and future growth of the economy. Fundamental analysis is a method of evaluating a security by attempting to measure its intrinsic value by examining related economy, financial and other qualitative and quantitative factors. Three phase of the fundamental analysis are: A. Understanding of the Macro Economic environment and developments (Economy analysis) B. Analyzing the prospectus of the industry to which the firm belongs(Industry analysis) C. Assessing the projected performance of the company( Company analysis)
The economy is like the tide and the various industry groups and individual companies are like boats. When economy expands most industry groups and companies benefits and grows, when the economy declines, most sectors and companies usually suffer. The stock market does not operate in a vacuum it is an integral part of the whole economy of a country, more so in a free economy like that of United States and to some extent in mixed economy like ours. To gain an insight into the complexities of stock market one needs to develop a sound economic understanding and be able to interpret the impact of...