This document summarizes a research paper on fundamental analysis of IT sector companies in India. It discusses the objectives to analyze company positions and identify the best performing IT companies. It covers topics such as the IT industry overview, economic analysis, industry analysis using SWOT, research methodology including ratio analysis. The findings suggest Infosys is the top ranked company based on financial ratios. The conclusion recommends investing in Infosys while advising to sell shares of weaker performer Wipro.

1. “FUNDAMENTAL ANALYSIS OF
IT SECTOR COMPANIES IN INDIA”
By :
Vishal Moradiya
Enrollment NO : 107920592027
M.B.A. – 1, Semester - II

2. TOPICS COVERED
 Objectives of the study
 Introduction
 IT industry
 Economic analysis
 Industry analysis
 SWOT analysis
 Research methodology
 Ratio analysis
 Findings
 Conclusions
 Bibliography

3. OBJECTIVES OF THE STUDY
• To know the company position.
• To analyze that which IT Company is
good compare to other IT company
SCOPS OF THE STUDY
• Market research.
• Identify the IT Sector in market.

4. INTRODUCTION
 Stock Markets are driven by various factors.
 The working of stock exchanges in india started in
1875. with 318 persons.
 Bombay stock exchange in 1965.
 The 30 stock sensitive index.
 In 1990 the BSE crossed the 1000 mark.
 NSE was incorporated in 1992.
 Market practise, infrastructures, technology, risk
management, investor services,

5. “SOUTH GUJARAT SHARE AND SHARE BROKERS LIMITED”
 Whole time director – Mr. Bhadresh G. Kapadiya
 31st march 1995 which was first financial year completed.
 Loss of Rs. 80,000
 In surat at 23 July 1996 at belgiam chambers.
 There are more then 16,000 holders which having debate A/c
in sgssl.
 Company has a computer to computer link
 CMR approach….
1. speed & Quality in System
2. consistency of services quality
3. professional approach
4. fulfilling the client’s need

6. IT INDUSTRY
 The Information Technology Association of
America (ITAA):
 “ the study, design, development, implementation,
support or management of computer- based
information systems, particularly software
applications and computer hardware.”

7. IT SECTOR – AN OVERVIEW
 IT Services
 Engineering Services
 BPO – Services
 E – Business
IT = SUCCESS FACTORS
 The Indian Education System
 High Quality Human Resource
 Competitive Costs

8. THE INDIAN IT INDUSTRY
 Market Size
2011 – US$ 80 billion (exports)
 Outsourcing
4 million technical workers,
67,785 computer software professionals
 Domestic Market
2009-10 5.3 per cent.
laptop market is expected to grow by
37 per cent in 2011
 Government Initiatives

9. ECONOMIC ANALYSIS
 Gross Domestic Product
Sectors 2009-10 2010-11
Agriculture 0.4 5.4
Industry 8.0 8.1
Services 10.1 9.6
 Inflation
 Inflation in India is based on Wholesale
Price Index.
 June 23, 2011 =9.13%

10. ECONOMIC ANALYSIS (CONT.)
Interest Rates:
 lower interest rate for the brokers who are doing business
with borrowed money.
Foreign Investment
 During the period April-February 2010-11, FDI flows
into India totalled US$ 25.9 billion. Admittedly, FDI
flows in 2010-11 have seen a slowdown from the
previous year.

11. IT SECTORS
 Zero Customs duty
 Plants to setting- ANDHRA PRADESH,BIHAR,
 Create New National Knowledge Centers,
 The govt. is trading to reduce the international
communication cost.
 Challenges for Indian economic in 2011
Getting inflation under control

12. INDUSTRY ANALYSIS
 Major players in IT – ITES sector
 Infosys Technologies Ltd.
 Tata Consultancy Services.
 Wipro Technologies.
 HCL
 Intel
 GE
 IBM
 Dell
 Microsoft

13. INDUSTRY ANALYSIS (CONT,)
 Advantages in india
 Cost advantage
 Ease of scalability
 Quality of services
 Infrastructure
Segment Growth(%)
Hardware 5.9
Software 8.5
Services(IT) 6
Services(BPO) 10

14. SWOT ANALYSIS
STRENGTHS WEAKNESS
 Highly skilled human  Absence of practical
resource knowledge
 Low wage structure  Less Research and
Development
 Quality of work
 Contribution of IT
 Indian time zone
sector is small

15. SWOT ANALYSIS (CONT.)
OPPORTUNITIES THREATS
 high quality IT  Lack of data security
education market systems
 IT development
 increasing number of
working age people concentrated in a few
cities only
 Upcoming international
 English language
players in the market barrier

16. MARKET CAPITALIZATION
Companies Mkt.Cap. (In Rs. Cr.)
INFOSYS 1,69,868.48
TCS 1,32,576.57
WIPRO 1,02,839.74
TECH MAHINDRA 91,398.84

17. RESEARCH METHODOLOGY
 Business research is a systematic
inquiry whose objective
PROBLEM STATAEMENT:
“Fundamental Analysis of the IT Companies”.
RESEARCH OBJECTIVE:
 PRIMARY OBJECTIVES:
 SECONDARY OBJECTIVES:

18. RESEARCH DESIGN
 My research design is descriptive.
IMPORTANCE OF THE STUDY
 Benefit to the investors
DATE COLLECTION:
 Primary Data Collection: Survey
 Secondary Data Collection: Internet, Books, Magazines,
News Paper, Television

19. RATIO ANALYSIS
 Meaning of accounting ratio:-
“A ratio is simply one number expressed in terms of
another, it is an expression of relationship spelt out by
dividing one figure by another.”
 Uses or utility of ratio:
 Utility to management:
 Utility of Shareholders and Investors:-
 Utility to Employees:-
 Utility to Government and/or RBI:-

20. I have founded several different types of ratio as
follows
 Current ratio
 Debt- equity ratio
 Net profit ratio
 Dividend Per Share

21.  CURRENT RATIO:-

22.  DEBT- EQUITY RATIO :-

23.  NET PROFIT RATIO :-

24.  DIVIDEND PER SHARE :-

25. FINDINGS
 The infrastructure of is also very good for the IT
sector.
 the India it industry is growing at 34% to 36%
 The Infosys, TCS, Tech Mahindra are big giant of
Indian IT Industry.
 the current ratio the quick ratio is very high of
Infosys company.
 the Infosys is doing business by own money.
 I would suggest invest Infosys technologies.
 The market position of Wipro is also weak so the
investor should sell its share.

26. CONCLUSION
 INFOSYS – Stood First
 TATA CUNSUTANCY SERVICES - second
 TECH MAHINDRA – third
 WIPRO – fourth rank - because but the EPS,
DPS, profit ratio low so the Wipro getting the
fourth rank.

27. BIBLIOGRAPHY
Sr. No. Book Name Author Edition
1 Financial management “I.M.PANDEY” 9th edition
2 Research methodology “R. KOTHARI” 2nd edition
WEBSITES :-
http://www.infy.com
http://www.TCS.com
http://www.wipro.com
http://www.nse.com
http://www.bse.com
http://www.moneycontrol.com