SIP Presentation

1. FUNDAMENTALANDTECHNICALANALYSISIN
MININGANDINSURANCESECTOR
HDFC LIFE
PRESENTED BY-
HRISHIKESH HIMESH

2. INTRODUCTIONTO COMPANY
Established in 2000, HDFC Life is a leading long-term life insurance solutions
provider in India, offering a range of individual and group insurance solutions
that meet various customer needs such as Protection, Pension, Savings,
Investment and Health.
HDFC Life continues to benefit from its presence across the country with 412
branches and additional distribution touchpoints through several
partnerships. The partnerships comprise 265 bancassurance partners
including NBFCs (Non-Banking Financial Companies), MFIs (Micro Finance
Institutions), SFBs (Small Finance Banks), etc. and 39 partnerships within non-
traditional ecosystems. The Company is also strengthened by a strong base of
financial consultants.

3. LEARNINGDURINGTHE
INTERNSHIPPERIOD
 Fundamental Analysis- It predicts two things:
I. Top line factor (revenue)
II. Bottom line factor (profit)
 Technical Analysis- It includes charts and patterns to predict future
prices by analyzing past price movements.

4. FUNDAMENTALANALYSIS
COMPANY STOCKS
UNDERVALUED OVERVALUED
TOP LINE
(REVENUE)
BOTTOM LINE
(PROFIT)
PEG RATIO
PEG RATIO

5. MININGSECTOR
Acceptance and Rejection for undervalued stock
1. if revenue increases and profit increase then , select
2. if revenue increases and profit decreases then, select
3. if revenue decreases and profit increases then, select
4. if both revenue and profit decreases then , reject
MINING
SECTOR
P/E
OVERVALUED/UN
DERVALUED
revenue
in fy2019
revenue in
fy2018
profit in fy
2019
profit in
fy2018
increase /
decrease
PEG = PE/EPSG
select/r
eject
COAL INDIA 5 OV 0.033 select
VEDANTA 3.47 UV 44,796 49,533 5,075 7,256 decrease reject
NMDC 5.19 OV 0.199 select
Average
4.553333
333

6. INSURANCESECTOR
INSURANCE SECTOR P/E
OVERVALUED/UN
DERVALUED
revenue
in fy2019
revenue in
fy2018
profit in
fy 2019
profit in
fy2018
increase /
decrease
PEG =
PE/EPSG
select/
reject
HDFC LIFE 70.46 OV 4.81 reject
SBI LIFE 51.97 UV 1,51,76,978 1,29,29,320 1,32,67,964 1,15,03,922 increase select
ICICI PRU 41.09 UV 1,72,78,937 1,83,36,019 1,14,06,462 1,61,98,259 decrease reject
Average 54.50666667

7.  PEG Ratio between 0 - 1 are considered as good and those are considered
are Growth Picks.
 The stocks whose either topline or bottom line increases or both increases
are Value Picks.
UNDERVALUED
STOCK
OVERVALUED
STOCK
VEDANTA COAL INDIA
SBI LIFE NMDC
ICICI PRU HDFC LIFE
VALUE PICK GROWTH PICK
SBILIFE COAL INDIA
NMDC

8. RATIOANALYSIS
MINING SECTOR
With the help of ratios stock are compared and ranked.
ratios mining sector ranking sum total of ranking
coal india nmdc nmdc coal india nmdc coal india
liquidity 2.68 2.6 1 2 1 2
debt equity 0.3 0.02 1 2 1 2
profitability 3.01 38.19 1 2 1 2
dividend payout 63.04 237.93 1 2 1 2
activity 18.74 24.61 1 2 1 2
5 10

9. INSURANCESECTOR
ratios insurance sector
Sbi life
solvency ratio 2.17
operating ratio 6.4
persistency 85.07
commission ratio 4.1
settlement expense ratio 95.03
embedded value 224.02

10. ALLOCATIONOFFUND
ASSET UNDER MANAGEMENT = 10,00,00,000
companies fund allocation
nmdc 4,00,00,000
sbilife 4,00,00,000
coal india 2,00,00,000
TOTAL 10,00,00,000

11. NAVCALCULATION
NET ASSET VALUE = AUM/NO. OF UNITS
NAV = 10,00,00,000/1,00,00,000 = 10
companies 22-Aprno of shares allocation cash in hand (fixed) 23-Aprno of shares allocation
nmdc 75 5,33,333 4,00,00,000 39999975 76.95 5,33,333 41039974.35
sbi life 706.8 56,593 4,00,00,000 39999932.4 719 56,593 40690367
coal india 141 1,41,844 2,00,00,000 20000004 140.9 1,41,844 19985819.6
10,00,00,000 99999911.4 101716161
89
nav 10.1716161 change in sector
%change in nav 1.71
INDEX OF MINING 665.77 INDEX OF MINING 670.35 0.687925259
INDEX OF INSURANCE 796.91 INDEX OF INSURANCE 784.54 -1.552245548