A STUDY ON SHARE PRICES OF RELATED STOCKS USING FUNDAMENTAL & TECHNICAL ANALYSIS <br />                                   ...
STOCK EXCHANGE<br />Mumbai stock exchange established in 1875.<br />Next Ahmedabad stock exchange was set up<br />    in 1...
FEATURES OF STOCK EXCHANGE<br />Control by the governing body .<br />Rules & regulations.<br />Listed securities.<br />Qui...
SECURITIES & EXCHANGE BOARD OF INDIA<br />FEATURES:-<br />To protect investors .<br />To safeguard rights of investors in ...
FUNCTIONS OF SEBI<br />Regulating the business in stock exchange.<br />Prohibiting frauds and malpractices in market.<br /...
SHARES<br />A share in a company is one of the units in which the total capital of the company is divided.<br />Example:<b...
OBJECTIVE OF THE STUDY<br /> PRIMARY OBJECTIVE<br />To give better insight to the investor in deciding the investment in s...
FINANCIAL ANALYSIS<br />The primary objective is to judge profits and financial soundness of the company.<br />Better unde...
TECHNICAL ANALYSIS<br />The examination of the past price.<br />To forecast future price.<br />Technical analysis can be a...
     Line chart
     Point and figure chart etc..</li></li></ul><li>RATIOS USED<br />INVENTORY TURNOVER RATIO<br />Every firm has to maint...
Cont….<br />DEBTOR TURNOVER RATIO<br />    Debtor’s turnover ratio indicates the velocity of debt collection of firm. <br ...
Cont…<br />Operating profit margin  <br />Indicates the operating profit margin after taking into account all indirect cos...
INTRODUCTION TO THE COMPANY<br />ELGI EQUIPMENTS LTD<br /> Public Limited Company commenced in 1975.<br /> Manufactures Ai...
RATIO ANALYSIS OF ELGI<br />
TECHNICAL ANALYSIS OF ELGI<br />Bullish market<br />         on 23rd, 27th, 29th of Dec  , July 1st, 13th, & 14th of Jan m...
INTRODUCTION TO THE COMPANY<br />RANBAXY LABORATORIES LIMITED<br />India’s largest pharmaceutical Company.<br /> It is ran...
RATIO ANALYSIS OF RANBAXY<br />
TECHNICAL ANALYSIS OF RANBAXY<br />Bull market<br />             on 28th, 31st of Dec & 1st of June month of 2005 (white c...
FINDINGS & SUMMARY<br />Findings & conclusions were drawn from the   financial and technical analysis.<br />Share prices o...
CONCLUSION<br />Elgi were mostly bearish in mood and so the investor can sell these shares in a short term and can buy the...
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A study on share prices of elgi & ranbaxy

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A study on share prices of elgi & ranbaxy

  1. 1. A STUDY ON SHARE PRICES OF RELATED STOCKS USING FUNDAMENTAL & TECHNICAL ANALYSIS <br /> Presented by<br /> Vignesh c j <br /> 8uta45 <br />
  2. 2. STOCK EXCHANGE<br />Mumbai stock exchange established in 1875.<br />Next Ahmedabad stock exchange was set up<br /> in 1894.<br />Regulated by SEBI (securities & exchange board of India). <br />It was set up in 1988 ,but came into force during 1992.<br />
  3. 3. FEATURES OF STOCK EXCHANGE<br />Control by the governing body .<br />Rules & regulations.<br />Listed securities.<br />Quick disposal.<br />Good security for loan.<br />
  4. 4. SECURITIES & EXCHANGE BOARD OF INDIA<br />FEATURES:-<br />To protect investors .<br />To safeguard rights of investors in securities.<br />Compulsory registration & issue of certificates to the intermediaries.<br />Chairman and five members are appointed by the central government. <br />Ensure a market place to rise funds at low cost. <br />INVESTORS<br />
  5. 5. FUNCTIONS OF SEBI<br />Regulating the business in stock exchange.<br />Prohibiting frauds and malpractices in market.<br />Inspection, enquiry and audit of stock exchange.<br />Registering and regulating the working of intermediaries.<br />Prohibiting insider trading in securities.<br />
  6. 6. SHARES<br />A share in a company is one of the units in which the total capital of the company is divided.<br />Example:<br />If the capital of a company is 10000 and is divided into 1000 units of Rs10 each, each unit of Rs.10 shall be called a share of the company.<br />
  7. 7. OBJECTIVE OF THE STUDY<br /> PRIMARY OBJECTIVE<br />To give better insight to the investor in deciding the investment in share of the selected companies scrip’s. <br />SECONDARY OBJECTIVE <br />To compute the future value of the shares of the selected companies. <br />To understand trends and patterns in share price movements. <br />To analyze price movements using candle stick. <br />
  8. 8. FINANCIAL ANALYSIS<br />The primary objective is to judge profits and financial soundness of the company.<br />Better understanding of a firm’s position and performance.<br />It consist of various ratios.<br />
  9. 9. TECHNICAL ANALYSIS<br />The examination of the past price.<br />To forecast future price.<br />Technical analysis can be analyzed by<br /><ul><li> Bar chart
  10. 10. Line chart
  11. 11. Point and figure chart etc..</li></li></ul><li>RATIOS USED<br />INVENTORY TURNOVER RATIO<br />Every firm has to maintain a certain level of inventory of finished goods to be able to meet requirement of business.<br />Cost of goods sold * 100<br />Average inventory at cost<br />CURRENT RATIO<br /> The ratio indicates the company’s ability to meet current obligations, i.e. the current assets must be sufficient to pay current liabilities <br />Current assets *100<br /> Current liability<br />
  12. 12. Cont….<br />DEBTOR TURNOVER RATIO<br /> Debtor’s turnover ratio indicates the velocity of debt collection of firm. <br />Total sale<br /> Debtors<br />RETURN ON INVESTMENT<br />Return on shareholders investment popularly known as ROI.<br />Net profit (after interest &tax) *100<br />Shareholders funds <br />
  13. 13. Cont…<br />Operating profit margin <br />Indicates the operating profit margin after taking into account all indirect costs and expenses of manufacturing, administrative and distribution activities.<br />Operating profit *100<br />Net sales<br />Dividend yield ratio<br /> Is calculated to evaluate the relationship between dividend per share paid and the market value of share. <br />Dividend per share<br /> Market value per share<br />
  14. 14. INTRODUCTION TO THE COMPANY<br />ELGI EQUIPMENTS LTD<br /> Public Limited Company commenced in 1975.<br /> Manufactures Air - Compressors, Hydraulic lift, Lubricating Equipment, Horns, Power brakes, etc..<br />Technical collaborations with PumpenFabrikUrach, Landweher and Gobel .<br />Specializes in custom-built solutions.<br />
  15. 15. RATIO ANALYSIS OF ELGI<br />
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  19. 19. TECHNICAL ANALYSIS OF ELGI<br />Bullish market<br /> on 23rd, 27th, 29th of Dec , July 1st, 13th, & 14th of Jan month .(white candle in chart, buying is best)<br />Bearish market<br /> on 16th, 17th, 20th, 21st, 22nd, 24th, 28th, 30th, 31st, of Jan and from march 1st to July first.(black candle in chart, selling is best)<br />
  20. 20. INTRODUCTION TO THE COMPANY<br />RANBAXY LABORATORIES LIMITED<br />India’s largest pharmaceutical Company.<br /> It is ranked amongst the top ten generic companies in worldwide.<br />The Company was incorporated in 1961 and went public in 1973.<br />The Company has a strong Brand marketing team and distribution network in India<br />Largest investor on R&D in the Indian pharmaceutical industry with an R&D spend of 7% of its sales during 2004.<br />It has joined hands with GlaxoSmithKline Plc for a global alliance in the area of drug discovery and development. <br />
  21. 21. RATIO ANALYSIS OF RANBAXY<br />
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  25. 25. TECHNICAL ANALYSIS OF RANBAXY<br />Bull market<br /> on 28th, 31st of Dec & 1st of June month of 2005 (white candle in chart, buying is best).<br />Bear market<br /> on 16th, 17th, 20th, 21st to 24th, 27th, 29th, 30th, of Dec & 1st of march, April, may, July, Oct, Nov, Dec (black candle in chart, selling is best).<br />
  26. 26. FINDINGS & SUMMARY<br />Findings & conclusions were drawn from the financial and technical analysis.<br />Share prices of Elgi was 56.69.<br />Share prices of Ranbaxy was 1256.86.<br />Uses of stop loss order of shares.<br />Requirements' to buy and sell the shares.<br />
  27. 27. CONCLUSION<br />Elgi were mostly bearish in mood and so the investor can sell these shares in a short term and can buy them when the price decreases.<br />Same as Elgi, Ranbaxy also mostly in bearish mood and so the investor can sell these shares in a short term and can buy them when the price decreases<br />
  28. 28. Thank You!<br />

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