A trend analysis to analyze the market cap and its movement, identifying a relationship between Sales and Price of Stock, Performing Correlation & Regression to prove the same.

1. Capstone- A predictive
Trend Analysis of
company’s Market Cap for
Investment decision
Name- Debanjan Bose
Roll- PGDM161810332
Batch- F3
Faculty Guide – Tushar Panigrahi
Designation- Professor

2. Introduction
Stocks for the study
• 3i Infotech
• 63 Moons
• Accelya Kale Solutions
• Allied Digital Services
• Accel Frontline
• AGC Network
• AJEL
• Asyian Soft
• Cyient
• Hexaware
• Hypersoft
• Infinite
• Mindtree
• Mphasis
• NIIT Tech
• Tata Elxsi
• Hinduja Global Solutions
• Sonata Software
• Zensar Technologies
• Infinite

3. Business Model of IT Application
Development
Testing
Infrastructure
Management
BPO
Digital
Services

4. Economic
Exchange Rate Government Policy
Unemployment Supply & Demand

5. Objective
• Trend analysis of Market Capitalization for
IT stocks
• To identify a relationship between Sales
and Price of a particular stock with respect
to its movement
• Selection of stocks for long term
investment plan
Trend
Analysis
RegressionCorrelation

6. Research
Methodology
Calculation of
Market Cap
Plotting the data in
a Line Graph
Trend Line Analysis
Selection of stocks
w.r.t to Trend
Analysis
Identifying the
relationship
between Sales &
Price
Performing
Correlation &
Regression
Selection of Stocks
for Long Term
Investment

7. Data
Interpretation

8. NIIT Tech
Trend Analysis, Scatter Graph & Regression
• Sales & Price are strongly co-related because
correlation coefficient stands at 0.95
• R-square stands at 0.90 which states 90% of the
observation falls near the fitted line.
Market Cap-Rs 5057.43
Price- Rs 831.25

9. Zensar Technologies
Trend Analysis, Scatter Graph & Regression
• Sales & Price are strongly co-related because
correlation coefficient stands at 0.95
• R-square stands at 0.91 which states 91% of
the observation falls near the fitted line.
Market Cap- Rs 4009.3
Price- Rs 900.01

10. Tata Elxsi
Trend Analysis, Scatter Graph & Regression
• Sales & Price strongly co-related as the correlation
coefficient is 0.80
• R- Square is at 0.70 i.e 70% of the observation falls
near the fitted line
Market Cap- Rs 6496.99
Price- Rs 1019.75

11. Hexaware
Trend Analysis , Scatter Graph & Regression
• Sales & Price strongly co-related as the
correlation coefficient is 0.87
• R- Square is at 0.76 i.e 76% of the observation
falls near the fitted line
Market Cap- Rs 10343.61
Price- Rs 352.15

12. Conclusion
Positive trend in
Market Cap
Selection of stocks
Strong Correlation
between Sales &
Price
• The study proves that the Market Cap is strongly related
with Sales
• With Sales growth the price of the stock also increases
• Improvement in Market Cap also indicates liquidity of the
stock and the investor confidence
• NIIT Tech, Zensar Technologies, Tata Elxi and Hexaware were
the few stocks selected through this study