Manufacturing Company Financial Analysis and Co-Relating with Their Stock Prices

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  • Topic: TVS Motors, Cost of carry, TVS Apache
  • Pages : 14 (3696 words )
  • Download(s) : 48
  • Published : March 8, 2012
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Executive Summary4
Voltas Ltd5
Company profile:5
Cost of Carrying for Jan 2011 to Sept 2011:5
Analysis:5
TVS Motors Company Limited6
Company profile:6
Cost of Carrying for Jan 2011 to Sept 2011:6
Analysis:7
Titan Industries Limited8
Company profile:8
Cost of Carrying for Jan 2011 to Sept 2011:8
Analysis:8
TATA Steel Ltd10
Company profile:10
Cost of Carrying for Jan 2011 to Sept 2011:10
Analysis:10
Suzlon Energy Ltd11
Company profile:11
Cost of Carrying for Jan 2011 to Sept 2011:11
Analysis:11
Siemens Ltd13
Company profile:13
Cost of Carrying for Jan 2011 to Sept 2011:13
Analysis:14
Reliance Power Limited15
Company profile:15
Cost of Carrying for Jan 2011 to Sept 2011:15
Analysis:15
Larsen & Toubro Limited16
Company profile:16
Cost of Carrying for Jan 2011 to Sept 2011:16
Analysis:17
Jindal Steel & Power Limited18
Company profile:18
Cost of Carrying for Jan 2011 to Sept 2011:18
Analysis:18
Godrej Consumer Products Limited19
Company profile:19
Cost of Carrying for Jan 2011 to Sept 2011:19
Analysis:20
GlaxoSmithKline Pharmaceuticals Limited21
Company profile:21
Cost of Carrying for Jan 2011 to Sept 2011:21
Analysis:21
Dr. Reddy's Laboratories Limited22
Company profile:22
Cost of Carrying for Jan 2011 to Sept 2011:22
Analysis:22
Bibliography23


Executive Summary
This Project report is to calculate cost of carry for 12 Indian manufacturing companies which are listed on India Stock Exchange for period Jan 2011 to Sept 2011. Below listed companies are used in the report to do the analysis. 1.Voltas Ltd

2.TVS Motors Company Limited
3.Titan Industries Limited
4.TATA Steel Ltd
5.Suzlon Energy Ltd
6.Siemens Ltd
7.Reliance Power Limited
8.Larsen & Toubro Limited
9.Jindal Steel & Power Limited
10.Godrej Consumer Products Limited
11.GlaxoSmithKline Pharmaceuticals Limited
12.Dr. Reddy's Laboratories Limited

What is cost of carry?
The cost of carry is the cost of "carrying" or holding a position. If long, the cost of carry is the cost of interest paid on a margin account. Conversely, if short, the cost of carry is the cost of paying dividends, or rather the opportunity cost; the cost of purchasing a particular security rather than an alternative. For most investments, the cost of carry generally refers to the risk-free interest rate that could be earned by investing currency in a theoretically safe investment vehicle such as a money market account minus any future cash-flows that are expected from holding an equivalent instrument with the same risk (generally expressed in percentage terms and called the convenience yield). Storage costs (generally expressed as a percentage of the spot price) should be added to the cost of carry for physical commodities such as corn, wheat, or gold. The cost of carry model expresses the forward price (or, as an approximation, the futures price) as a function of the spot price and the cost of carry.

Where,
F - Forward price,
S - Spot price,
r - risk-free interest rate,
s -storage cost,
c - Convenience yield,
t- Time to delivery


Voltas Ltd
Company profile:
Voltas Limited is an engineering solutions provider and project specialist. The Company offers engineering solutions for a range of industries in areas, such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management and treatment, cold chain solutions, building management systems, and indoor air quality. Business segments of Voltas are: Electro-mechanical Projects and Services, Engineering Products and Services, Unitary Cooling Products for Comfort and Commercial use, and Others. Others Segment consists of Lalbuksh Voltas Engineering Services & Trading LLC (Lalvol), a Joint Venture company (JVC), in Sultanate of Oman, engaged in horticulture, water management and purification....
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