INTRODUCTION

India is a developing country. Nowadays many people are interested to invest in financial markets
especially on equities to get ig returns! and to save ta" in onest way. #quities are playing a
ma$or role in contri%ution of capital to te %usiness from te %eginning. &ince te introduction of
sares concept! large num%ers of investors are sowing interest to invest in stock market.
In an industry plagued wit skepticism and a stock market increasingly difficult to predict
and contend wit! if one looks ard enoug tere may still %e a genuine aid for te Day
Trader and &ort Term Investor.
Te price of a security represents a consensus. It is te price at wic one person agrees
to %uy and anoter agrees to sell. Te price at wic an investor is willing to %uy or sell
depends primarily on is e"pectations. If e e"pects te security's price to rise! e will
%uy it( if te investor e"pects te price to fall! e will sell it. Tese simple statements are
te cause of a ma$or callenge in forecasting security prices! %ecause tey refer to uman
e"pectations. )s we all know firstand! umans e"pectations are neiter easily
quantifia%le nor predicta%le. If prices are %ased on investor e"pectations! ten knowing
wat a security sould sell for *i.e.! fundamental analysis+ %ecomes less important tan
knowing wat oter investors e"pect it to sell for. Tat's not to say tat knowing wat a
security sould sell for isn't important,,it is. -ut tere is usually a fairly strong consensus
of a stock's future earnings tat te average investor cannot disprove
.undamental analysis and tecnical analysis can co,e"ist in peace and complement eac
oter. &ince all te investors in te stock market want to make te ma"imum profits
possi%le! tey $ust cannot afford to ignore eiter fundamental or tecnical analysis.
Equity Analysis
N##D O. T/# &TUD0
To start any %usiness capital plays ma$or role. Capital can %e acquired in two ways %y issuing sares or %y
taking de%t from financial institutions or %orrowing money from financial institutions. Te owners of te
company ave to pay regular interest and principal amount at te end.
&tock is ownersip in a company! wit eac sare of stock representing a tiny piece of ownersip. Te
more sares you own! te more of te company you own. Te more sares you own! te more dividends
you earn wen te company makes a profit. In te financial world! ownersip is called 1#quity2.
)dvantages of selling stock3
) company can raise more capital tan it could %orrow.
) company does not ave to make periodic interest payments to creditors.
) company does not ave to make principal payments
R#&#)RC/ D#&I4N
O-5#CTI6# O. T/# &TUD0
To provide an overview of Indian 7arma Industry.
To study a%out some of te ma$or players in Indian 7arma Industry.
To compare te financial ratios of te ma$or players and interpreting tem.
To identify te growt drivers of te Indian parma industry.
8#T/ODO9O40 O. &TUD03
Equity Analysis
Te wole study can %e termed as a desk researc. /ence tere is no field work
and collection of primary data for tis researc e"cept for secondary information
o%tained %y te medium of internet! $ournals and maga:ines.
D)T) CO99#CTION3
Only secondary data was collected from te internet! company we%sites!
maga:ines and various articles. /owever te main source of information is )nnual
report provided %y te companies.
LIMITATIONS OF THE STUDY:
Te companies were cosen %ased on convenience and availa%ility of secondary
data.
#;UIT0 R#&#)RC/3
#quity Researc refers to te study of te performance of te economy as a wole!
te industry and various companies and analy:ing te same. It ena%les to predict
te future performance of a particular stock %ased on its past performance! te
current status of te internal as well as te e"ternal environment.
#;UIT0 R#&#)RC/ can %e done %y two metods3
.UND)8#NT)9 )N)90&I&3
/ere we look at %alance seet! income statement etc. to determine a company<s
value. In financial terms it is used to measure a company<s intrinsic value. It takes
a long term approac to analy:e te market as compared to tecnical analysis. It
often looks at data over a num%er of years.
T#C/NIC)9 )N)90&I&3
Tecnical traders study te price movements of te particular company's stock in
te market. Tecnical analysts strongly %elieve tat te price movements follow a
trend and %y identifying te trend! one can accurately predict te price tat migt
occur in future. Tecnical analysts use financial tools wit software support.
Equity Analysis
&T#7& IN .UND)8#N)T)9 )N)90&I&3
Te various steps in fundamental analysis are listed %elow. .undamental )nalysis
is a conservative and non,speculative approac %ased on te =.undamental
analysis of
Te #conomy
Te Industry
Te Company

&CO7# O. T/# &TUD0
Te scope of te study is identified after and during te study is conducted. Te pro$ect is %ased on tools
like fundamental analysis and ratio analysis. .urter! te study is %ased on information of last five years.
Te analysis is made %y taking into consideration five companies i.e. parma companies
Te scope of te study is limited for a period of five years.
Te scope is limited to only te fundamental analysis of te cosen
Equity Analysis