“A COMPARATIVE STUDY ON FUNDAMENTAL ANALYSIS OF SELECTED CEMENT

COMPANIES IN INDIA”

A Final project submitted to

BIJU PATNAIK UNIVERSITY OF TECHNOLOGY, ODISHA
(For the partial fulfillment of the Requirement of the Degree of MBA 2017-2019)

Submitted by:-
Taniya Agarwalla
BPUT Regd No. : - 1706258164

INTERNAL GUIDE EXTERNAL GUIDE

Mr. Bhagavan Behera Mr. Debasis Mohanty
Associate Professor of Finance

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 BIJU PATNAIK INSTITUTE OF IT AND MANAGEMENT STUDIES
BHUBANESWAR
INTERNAL GUIDE CERTIFICATE

This is to certify that the project report entitled “A COMPARATIVE STUDY ON FUNDAMENTAL ANALYSIS OF SELECTED
CEMENT INDUSTRY” in Karvy Stock Broking Ltd, Bhubaneswar has been prepared by Taniya Agarwalla under my
supervision and guidance, for the fulfillment of Master in Business Administration. His fieldwork is satisfactory.

Principal

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 BIJU PATNAIK INSTITUTE OF IT AND MANAGEMENT STUDIES

-
Acknowledgment

It is a matter of great satisfaction and pleasure to present this report on “A COMPARATIVE STUDY ON FUNDAMENTAL
ANALYSIS OF SELECTED CEMENT INDUSTRY” in Karvy Stock Broking Ltd as per BPUT guideline I am thankful to my
guide Mr. Bhagavan Behera Assistance Prof (Finance) for his kind attention and advice.

I take this opportunity to owe my thanks to all those involved in my training. Firstly I would like to thank Karvy Stock
Broking Ltd for giving the opportunity to complete my project in the organization. I put on record my sincere thanks to my
college, BIJU PATNAIK INSTITUTE OF IT AND MANAGEMENT STUDIES, Bhubaneswar for giving me such an
opportunity. I am extremely grateful to Mrs. PRIYADARSHINI DAS for the encouragement discussions and critical
assessment of the project. It was a good experience for me to work with Karvy Stock Broking Ltd. I express my gratitude
towards staff of Karvy Stock Broking Ltd, those who have helped me directly or indirectly in completing the training.

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 Name: - Taniya Agarwalla
Regd no: - 1706258164

-
DECLARATION

I do hereby declare I have undergone by a project on “A COMPARATIVE STUDY ON FUNDAMENTAL ANALYSIS OF

SELECTED CEMENT INDUSTRY” in Karvy Stock Broking Ltd. This report is submitted by me in partial fulfillment of my
Degree in Master of Business Administrative (MBA) course from BIJU PATNAIK INSTITUTE OF IT AND
MANAGEMENT STUDIES, Bhubaneswar. The report is comprehensively prepared & submitted by me is true to the best of
my knowledge. It has not been submitted & published anywhere else.

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 Name: - Taniya Agarwalla
Regd no: - 1706258164

THE EXECUTIVE SUMMARY

The project studied by me in Karvy Stock Broking, Bhubaneswar, was “A COMPARATIVE STUDY ON FUNDAMENTAL
ANALYSIS OF SELECTED CEMENT INDUSTRY”. Karvy Stockbroking Limited is India’s leading capital markets
company with All-India Presence and an extensive client base. Karvy Stock Broking possesses state of the art trading platform,
best broking practices and is the pioneer in trading product innovations.

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 -

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 CHAPTER -1

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INTRODUCTION
The Cement sector is one of the major sectors in contribution to Index of Industrial Production. Cement is one of the core industries and plays a vital
role in the growth and development of a nation. The cement industry has been expanding on the back of increasing infrastructure activities and demand
from the housing sector over the past many years. Investment in infrastructure is the main growth driver for the cement industry. And with the new
government and new promises, it seems that the infrastructure development will be the government’s first priority. The study involves the detailed
practice of the EIC Model which is tested on the cement sector. The EIC Model is E for the economy, I for industry and C for the company.
The reason for choosing the cement sector for analysis is the scope of immense growth in this sector. Investment in infrastructure is the main growth
driver for the cement industry. And with the new government and new promises, it seems that the infrastructure development will be the government’s
first priority. The housing sector is the major driver which contributes to 64% of cement consumption. With governments promise of investing Rs.
2250 crores in Rural Infrastructure Development and Rs. 8000 crores in smart cities, cement will be the most impacted sector in the economy

Indian Cement Industry

Cement hold key status in the infrastructure industry and in India it has undergone a major shift over the last 6 years but still, the brand premium is
almost non-existent in the industry. India is the second largest producer of cement in the world and produces 200 plus million tons of cement annually
but it ranks below steel and aluminum in terms of value-addition though it is a highly capital-intensive industry and operates with a high level of fixed
cost and therefore volume growth is critical. India is also producing different varieties of cement like Ordinary Portland Cement (OPC), Portland
Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFC), Oil Well Cement, Rapid Hardening Portland Cement, etc. Between April to
November 2008, 25 percent of all cement produced was OPC, 67 percent was PPC and 8 percent was PBFC. For its smooth survival access to raw
materials (limestone and coal) and consumer markets are equally important in the long term. In order to meet ever-growing demand, cement companies
are multiplying their production capacity and fast developing new plants and expected to add 111 MT of annual capacity by the end of 2009–10 (FY

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2010), riding on the back of approximately 141 outstanding cement projects. According to a report by the ICRA Industry Monitor, the installed capacity
is expected to increase to 241 MTPA by FY 2010-end. For the past couple of years in general Indian cement industry demand growth has surpassed
the nation’s economic growth rate and is likely to record an annual growth of 10 percent will continue to grow by 1.2 x GDP growths in FY10, with
higher domestic demand resulting in increased capacity utilization. According to a Research Analyst at RNCOS, “The Indian cement industry is
expected to grow rapidly in coming years due to heavy demand from the housing, retail, and infrastructure industry. Though India has low per capita
consumption (110 Kgs of cement in India as compared to world average of 260 Kgs), moreover, several players have decided to raise their production
capacity during 2009-2012, which, in turn, boosts the production volume of the cement industry.

As per the Department of Industrial Policy and Promotion's latest data revealed that Indian cement modern plants are among the best in the world and
comprises of 134 large cement plants with an overall installed capacity of 173.08 million tones along with more than 350 operating mini-cement plants,
with an estimated capacity of 11.10 million tones per annum. Continuous technological changes, upgrading, and assimilation of latest technology have
been going on in the cement industry. At present 93 percent of the total installed capacity in the industry is based on modern and environment-friendly
dry process technology and the remaining 7 percent of the capacity is based on old wet and semi-dry process technology. The cement industry in India
has to be viewed on a regional basis viz. northern, western, southern and eastern. Since demand is erratic in certain regions, companies that focus on
these regions suffer if there is a decline in prices. The Indian cement industry is highly fragmented; generally, the top six companies share almost 60%
of industry capacity and the remaining 40% is distributed among 40 small players. The boom in the real estate and construction industry in India saw
a sudden and sharp increase in the price of cement, to the extent of a price increment as high as 17 percent in a single month. Against a 17 percent rise
in demand last year, cement industry saw a sluggish growth in installed capacity, at only a little more than 1 percent, says a recent study conducted by
the Government.
Fundamental Analysis thus involves 3 steps: -
1. Economic Analysis
2. Industry Analysis
3. Company analysis

1. ECONOMIC ANALYSIS

EIC analysis is not just about balance-sheets or analysis of a company's financial performance. It is also crucial to look at the broader picture- the
macroeconomic factors that may directly or indirectly affect the economy, industry, and stocks of the company. Economic Analysis is the First Step in
a three-step security analysis process. An economic slowdown has implications for the earnings and margins of companies. At economy level,
fundamental analysis will focus on the economic indicators of the country to assess the present and future growth of the economy. It aims at analyzing
the overall Economy and identifying the general direction, in which the economy is heading. Although there are many macroeconomic indicators that
are relevant to markets, given below are some must-track-indicators

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At economy level, fundamental analysis will focus on the economic indicators of the country to assess the present and future growth of the economy.
Major economic indicators include the GDP growth rate, inflation, imports, exports, monetary and fiscal policies, foreign exchange reserves, IIP, etc.
The basic assumption is that if the economy grows, companies would do well.

2. INDUSTRY ANALYSIS
Cement is a key infrastructure industry. It has been decontrolled from price and distribution on 1st March 1989 and licensed on 25th July 1991.
However, the performance of the industry and prices of cement are monitored regularly. The constraints faced by the industry are reviewed in the
Infrastructure Coordination Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination). Its performance
is also reviewed by the Cabinet Committee on Infrastructure.

The Cement Industry witnessed a slow start in the FY 2005 due to change in the Government at the center; a slowdown in infrastructure spending
during the transition and adversities of drought-like conditions in the South and West. The subsequent regaining of momentum enabled the industry to
clock a dispatch growth of 7% for the full year. The Cement sector appears to be on a sustainable growth path, given the strong outlook for the housing
sector and the renewed momentum in infrastructure spending. The Cement sector appears to be on a sustainable growth path, given the robust outlook
in Government infrastructure spending. It is expected that the industry would grow at an average 8% annual growth in the long run.

3. COMPANY ANALYSIS
Company Analysis is the final stage of fundamental analysis. The economic analysis provides the investor a broad outline of the prospects of growth
in the economy. The industry analysis helps the investor to select the industry in which the investment would be rewarding. Now he has to decide the
company in which he should invest his money. Company analysis provides the answer to this question.
Company analysis deals with the estimation of return and risk of individual shares. This calls for information. Many pieces of information influence
investment decisions. Information regarding companies can be broadly classified into two broad groups: internal and external. Internal information
consists of data and events made public by companies concerning their operations. The internal information sources include annual reports to
shareholders, public and private statements of officers of the company, the company’s financial statements, and etc. external sources of information
are those generated independently outside the company. These are prepared by investment services and the financial press.
In company analysis, the analyst tries to forecast the future earnings of the company because there is a strong evidence that earnings have a direct and
powerful effect upon share prices. The level, trend, and stability f earnings of a company, however, depend upon a number of factors concerning the
operations of the company.

Scope
The scope of the project is limited to only one country, one sector, and 4 companies. Economic analysis, only India has been taken into consideration.
The reason is the growth aspects of the country due to political changes. With new government and promises for good days ahead, something good is
expected. The sector analysis is limited to the extent of cement sector which is again selected on the basis of growth opportunities in it. Last 2 years

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have not been the best for this sector but with government’s new initiatives and investment in infrastructure, the sector is expected to grow at pace. The
company analysis is limited to the Top 3 companies in the cement sector.

Objectives
The project was undertaken with a purpose to ensure that the investment decision on stocks can be fruitful. The stock market is not easy to predict. The
number of factors which are considered may never be enough. The fluctuation in the stock market may also run on sentiments. But the study involves
fundamental analysis which is the basis for predicting the stock market for investment in stocks. The project involves three step EIC analysis backed
with regression analysis. The study will give a brief analysis of the country’s economy and its relative position in terms of investment opportunities.
After the country analysis is over the study is then focused on the cement sector. The sector analysis includes an analysis of the sector in terms of sector
growth prospects, government initiatives, drivers in that sector etc. The third step is to do a company analysis to find out which company’s prospects
for growth is more and is worth investing. The objectives for the research paper are:
1. To study fundamental analysis of the cement sector.
2. To study how fundamental analysis can help one make decisions about investing in stock.
3. To find out which stock is good for investment based on the fundamental analysis.
Model Related Objectives
1. To develop a statistical model of share prices and index and its correlation.
2. To test the model based on real-time data available.
3. To apply the model for predicting the future prices of shares.
4. To know the right company to invest in two scenarios that are booming and recession.

Research Methodology
Type of Research: -
The study involves comparing cement companies for investment on two bases:
1) Financial Analysis (Ratio Analysis):
Ratio Analysis is defined as the systematic use of ratio to interpret the financial statements. So the strengths and weaknesses of a firm, as well as
its historical performance and the current financial condition can be determined. Ratio analysis is a cornerstone of fundamental analysi s.Ratios
are classified into four categories. Each category shows a different aspect of the company’s performance. The ratios are:
a) Liquidity Ratios: A class of financial metrics that are used to determine a company's ability to pay off its short-term debts obligations. Generally
the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. Common liquidity ratios
include the current ratio, the quick ratio, and the operating cash flow ratio.

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 b) Profitability Ratios: A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses
and other relevant costs incurred during a specific period of time. Some examples of profitability ratios are profit margin, return on assets and
return on equity.
c) Activity Ratios: Accounting ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales. Activity
ratios are used to measure the relative efficiency of a firm based on its use of its assets, leverage or other such balance sheet items.
d) Leverage Ratios: Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to
measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and
interest expenses
2) Statistical Analysis (Multi- Regression Model):
The Multi- Regression Analysis gives you the impression for predicting a value of a dependent variable in respect of another independent variable.
For Multi-Regression analysis last 5 years data has been collected of the monthly share prices of 3 companies and 4 indexes on which statistical
tools have been used with the help of Microsoft Excel. For this model, a test was conducted with every company with real-time data

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 CHAPTER-2

KARVY STOCK BROKING LIMITED

Karvy is a financial services company headquartered in Hyderabad, India. Karvy Group is one of the leading financial services conglomerates.
Headquartered in Hyderabad, it offers a range of financial services including stock broking, distribution of financial products, depository participant,
commodities broking, wealth management, and more. It is ranked among the top five in the country across its business segments. Other than India, it
also has a presence in Bahrain, Dubai, Malaysia, Philippines and the United States.

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“Success is a journey, not a destination.” If we look for examples to prove this quote then we can find many but there is none like that of KARVY.
Back in the year 1981, five people created history by establishing KARVY and company which is today known as KARVY, the largest financial service
provider in India.

The vision of KARVY: To achieve & sustain market leadership, KARVY shall aim for complete customer satisfaction, by combining its human and
technological resources, to provide world class quality services. In the process, KARVY shall strive to meet and exceed customer’s satisfaction and set
industry standards.

Mission statement: “Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by
building an innovative, enterprising, and technology-driven organization which will set highest standards of service and business ethics.”

HR POLICY:

“It is the policy and commitment of KARVY not to discriminate on the basis of race, sex, age, color, national origin, height, weight, marital status,
sexual orientation, religion, disability or Veteran status in its employment policies.”

-
KARVY GROUP

The Karvy Group is a premier integrated financial services provider, ranked among the top-5 in the country across its business segments. The Group
services over 70 million individual investors in various capacities, and provides investor services to over 600 corporate houses. Karvy Group established
its presence through a wide network of over 450 branches, (or 900 offices) covering in excess of 400 cities and towns.

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The Group is professionally managed and ranks among the best in technology, operations and research across the financial industry. The Karvy Group
has evolved over the last three decades and today it assumes many avatars. Broadly the group pursues two lines of businesses and can be graphically
represented as follows:

KARVY Services:-

1. Financial Services:-
A. Equity Broking:-

Stock markets are considered unpredictable, but they reflect the mood of the economy. Over the years, investment in equities is considered to
be the best long-term wealth maximization option. The gap between unpredictability and a safety anchor in the market is bridged by the in-
depth knowledge of market functioning and changing trends, planning with foresight and choosing one’s options with care. From that
perspective, our equity broking and advisory services are beyond just a medium for buying and selling stocks and shares. Instead, we provide
services which are multi-dimensional and multi-focused in its scope.

B. Distribution of financial products:-

Securities and investments created to provide buyers and sellers with short term or long term financial gains are known as financial products.
These allow liquidity to circulate in an economy and risk to be spread. Many of the financial products are in the form of contracts that you can
negotiate on financial markets. The contracts stipulate cash movement at present and in future, depending on conditions stated.

Financial products can help us grow the amount of money we have to meet various financial goals, such as retirement, children’s education,
marriage and so on.

Before you invest in any financial product, you should learn about any potential risks, limitations, costs as well as other characteristics of the
products.

C. Currency Derivatives:-

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 Currency derivative is basically a risk managing instrument which enables entities with Fx-fluctuations risk to take long or short positions to
hedge opposite short/long positions. In the competitive world where exports and imports are an integral part of the business, companies have
exposure to foreign exchange risk.

D. Wealth management services:-

Karvy, with over 25 years’ expertise in the financial markets, is offering comprehensive wealth management solutions for its customers through
Karvy Private Wealth (KPW). Our wealth managers provide direction to a client’s financial decisions, enabling him to achieve his financial
and life goals. As a wealth manager, we collate the relevant financial information and life goals of the client, assess his risk tolerance level,
examine his current financial status, and identify a strategy to fulfill his goals.

E. Portfolio Management Services:-

Portfolio Management Services (PMS) as an equity investment solution has been a popular choice amongst High Net worth Individuals (HNIs)
ever since the Market watchdog, SEBI, has tightened regulations. In 2010, the regulator-mandated ‘High watermark principle’ to be used as the
basis of sharing profits from the portfolio returns as a management fee. This implies that the investor is charged a fee only in case there is a real
addition to the capital introduced by him. This is a unique characteristic which offers a low-cost opportunity for optimization of returns generated
by competent portfolio managers with robust track records.

F. Commodities Broking:-

An ISO 9001:2008 certified company, Karvy Comtrade Limited (KCTL) is India’s leading commodities brokerage house. We have a
membership of Multi Commodity Exchange of India (MCX), National Commodity and Derivatives Exchange (NCDEX), National Multi-
Commodity Exchange of India (NMCE), National Spot Exchange (NSEL), NCDEX Spot Exchange (NSPOT), Ace Commodity Exchange
(ACE) and Indian Commodity Exchange (ICEX). We are one of the early players in this business and have built a very strong research which
is widely acknowledged across our customer base be it the corporates or the traders who comprise our prime customer segment.

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 G. KARVY Fortune:-

Karvy Fortune is constantly on the lookout for hard-working, ambitious individuals who would like to build a robust business without the usual
hassles associated with starting an enterprise. As a business partner of Karvy Fortune, you get to be a part of an established broking house,
which is hugely successful in providing financial services to millions of customers. The risk-reward ratio for the individual/ enterprise becoming
a franchise is also very low considering this is an already established business model and a brand name that has great value in the financial
markets in India.

H. Investment Banking:-

The high-quality professional team and our work-oriented dedication have propelled us to offer value-added corporate financial services and
serve as a professional navigator for the long-term growth of our clients which include leading corporates, state governments, foreign
institutional investors, and public and private sector companies and banks in Indian and global markets.

I. Non-Banking Financial Services:-

Karvy Finance, an NBFC established in 2009, is primarily focused on Micro & Small Enterprise Secured Business Loans with Loan against
Property, Loan against Gold & Loan for Small Commercial Vehicles. Karvy Finance believes in serving the underserved business customers in
India’s market for all their loan needs with a network of 75 neighborhood lending branches in 35 locations. Karvy Finance aims to provide Fast,
Friendly & Flexible loan services to its target audience.

J. Register Offices:-

Karvy Computershare is a 50:50 joint venture between Karvy and Australia-based Computershare – the world’s largest transfer agent. Karvy
Computershare is the largest registrar in India, servicing over 70 million investor accounts spread over 1,300 issuers including banks, PSUs,
and mutual funds. Karvy Computershare has a workforce of around 4,000 experienced professionals drawn from various disciplines. The
worldwide network of Computershare will hold us in good stead by keeping us abreast of the international standards, in addition to letting us
leverage the best technologies from around the world.

K. Realty Services:-

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 Karvy’s Realty services are engaged in the business of value-added real estate and property services. We offer individuals and corporates myriad
options across investments, financing, and advisory services in the realty sector. Building on the Karvy brand as a leading industry benchmark
for world-class customer servicing and quality standards, we bring forth a reputation for reliability, dependability, and honesty. We have a deep
understanding of the sector, and, therefore, the needs and preferences of our clients. Our team of qualified realty professionals facilitates long-
term relationships with buyers and sellers of properties alike across the country, thus enabling clients to put their money in genuine properties
for a decent value appreciation at the right place and at the right price.

L. Insurance Repository:-

Karvy Insurance Repository (Kinrep) is a licensed Insurance Repository in India. Kinrep has been offering various life and general insurance
companies since 2008. Kinrep has completely home grown mature business applications to cater to the in house team as well as clients. Karvy
Insurance Repository is a leader in transforming and managing business processes using a blend of cutting-edge technology and refined
practices. Kinrep has a wide network of 500 branches across the length and breadth of the country. Kinrep is the first insurance repository to
offer a full suite of services to insurers, policyholders and agents of life insurance on a variety of mobile/tablet platforms including the
conventional ones. Kinrep brings over 2000 man-years of pooled BPO experience with over 100 man-years in the Insurance industry.

M. Forex and currencies:-

Forex and currencies is another business vertical of the Karvy group to venture into Trade and Corporate Finance Segment, Forex Corporate
Advisory Services. The company has been registered with FEDAI. We offer syndication services to the Indian clients in the area of Buyers
and Suppliers Credit Services. External Commercial Borrowings, Working capital arrangement, Bill Discounting & Short Term Investment
options etc.

N. The Finapolis:-

The Finapolis is a premier personal finance magazine providing credible research, actionable investment advice, and insightful analysis.
Covering a wide gamut of issues related to mutual funds, stocks, insurance, realty, commodities, wealth management, tax and banking sectors
plus comprehensive statistics, The Finapolis keeps you abreast of the latest in the world of investment. With a pan-India presence, The Finapolis

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 has a circulation of over 45,000 copies with a readership of 80,000. Our subscribers and readers constitute retail investors, investment
professionals, and corporate houses.

2. Non-Financial Services:-
A. Data Management Services:-

Karvy services in the areas of E-governance processing, insurance back office processing, record keeping, and back office for BFSI clientele and
telecom, data management requirements of large corporations. Data Management Services offers services in the areas of E-governance processing,
insurance back office processing, record keeping, and back office for BFSI clientele and telecom, data management requirements of large
corporations.

B. Market Research:-

Intelligent design, innovative pan India solutions for data collection and hardcore researchers that unveil the reality and impact your business by
enabling superior decision making.

Karvy Insights (KI, pronounced ‘key’), is the market research arm of the Karvy Group. It is a full-service market research and insights organization,
offering both Qualitative and Quantitative research solutions across sectors like CPG, Automotive, Finance, Retail/e-comm, Telecom,
Infrastructure, Social research to name a few. KI is all about discovering different facets of life in all its nuances, detail and complexities. Its vision
is to offer 'operative' intelligence to facilitate growth in every sphere, person, and business.

C. Analytics:-

New age techniques, best in class partnerships and an army of data scientists ensure that we provide you with incisive direction and predictive
analytics for superior business outcomes. Karvy Analytics is building world-class solutions for the global analytics universe. Its solutions bring
immediate business benefits to global customers interested in leveraging big data, statistical and mathematical modeling techniques, social analytics,
and mobile descriptive analytics for new business insights. Karvy Analytics is focused on multi-industry use cases for companies that need
technology and professional services for their functional and operational analytics projects.

Promoters and Management Team-

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Mr.C.Parthasarathy
Chairman & Managing Director

Mr. C. Parthasarathy is the Chairman and Managing Director of the diversified

financial services Karvy group. C Parthasarathy (CP as he is better known in the
Industry), has the uncanny knack of staying ahead of the curve and the foresight to
spot opportunities that seem invisible on the horizon for the others. Karvy’s entire
history is a case study of turning adversity into opportunity. Over the years CP’s
vision and leadership skills have helped the group navigate through the turbulent
times with a strong sense of purpose and clarity of thought.
Mr.M.Yugandhar
Managing Director

Mr. M Yugandhar, Managing Director is a founder member of the KARVY Group.

He is a Fellow Member of the Institute of Chartered Accountants of India and has
varied experience in the field of financial services spanning over 30 odd years.
Yugandhar has helped position and build a strong brand for the group in the
registry and other financial services businesses. The registry business of Karvy is
one of its flagship businesses and with the collaboration with Computershare has
grown to become the largest registrar in India for over two decades. Yugandhar
has played a key role in building strong relationships with public sector banks and
other PSUs which has helped Karvy win some important mandates from some of
India’s renowned companies.

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Mr.M.S.Ramakrishna
Director

Mr. M S Ramakrishna, Director, founder member of KARVY GROUP, he is the

orchestrator of technology initiatives such as the call center in the service of the
customer.

Mr. Ramakrishna was a member of the Hyderabad Stock Exchange and has more
than 30 years of experience in the financial services arena. He has helped
KARVY diversify into the field of medical transcription leveraging on the
company's core competency of transaction processing.

He is an Independent Director on the board of several reputed companies

MANAGEMENT TEAM

Mr.V.Mahesh
Managing Director – Karvy Data Management

Mr. V Mahesh, is the Managing Director of Karvy Data Management and has
work experience spanning over 2 decades with in depth exposure to operations on
most financial services businesses. Commencing his professional stint with the
Registry business where he has to his credit managing over 300 IPOs and other
forms of offerings, he was amongst the first few to work closely on the Book
Building process initiated by SEBI in 1995. After initially working with MCS as
an Assistant Vice President, he moved to Karvy. He was also responsible to
initiate the process of setting up the Depository participant business in Karvy and
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Mr.V.Ganesh
CEO – Karvy Computershare

Mr. V Ganesh is a Chartered and Cost Accountant by profession and has over 2.5
decades of experience in the financial services space and is part of Karvy Group’s
leadership team. Before joining KARVY, he was associated with ITC’s risk
management and financial audit services department. Earlier he was associated
with Proctor and Gamble and was responsible for product pricing and financial
support functions for P&G’s soaps and health care businesses.

Mr. Sushil Sinha

Whole time Director - Karvy Comtrade

Mr. Sushil Sinha, the Country Head of Karvy Comtrade Ltd, has successfully made
Karvy Comtrade a force to reckon with in the marketplace. With over 10 years of
expertise in the broking sector, he is a well-known face today in the electronic and
print media. Under his aegis, the company has won numerous honors and awards
nationwide, including the UTV Bloomberg Leadership Award 2011 and India’s Best
Market Analyst Award—for two consecutive years—by Zee Business.

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Mr. P. B. Ramapriyan
CEO - Distribution & Allied Businesses

Mr. Ramapriyan is working with Karvy for over 2 decades, He has strength of sorts
in the distribution of financial products including Equity, Bonds, Fixed Deposits and
Auto Finance. He has successfully marketed several financial products for large
number of corporate of various sizes. He is also responsible for managing the Pan
India Network of brokers and sub-brokers. He has been instrumental in Karvy’s
success in distribution of debt products.
KARVY is a better option:-

Karvy’s business entities address a heterogeneous swathe of the population from the super-rich to the nouveau riche, the ubiquitous middle class, the
lower classes urban and the rural folks. All of whom either make a living through large business, SMEs, professional services, traders, farmers, labor,
blue and white collar jobs and the government.

Another key feature of Karvy has been its ability to offer leading-edge advice based on incisive ideas that are strongly rooted in high-quality research
on every conceivable aspect of investments be it equities, forex, commodities, bonds, fixed returns, debt instruments or any other investment grade
asset class.

KARVY Companies:-

 Karvy Stock Broking LTD

Equity Broking, Depository Participant, Distribution of Financial Products (Mutual Funds, FD, and Bonds), Wealth Management Services, Currency
Derivatives, Portfolio Management Services

 Karvy Comtrade LTD

Commodities Broking

 Karvy Capital LTD( Formerly Karvy Capital Private LTD)

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NBFC & Portfolio Manager

 Karvy Investment Advisory Services LTD

Investment Advisory Services

 Karvy Holdings LTD

Core Investment Company

 Karvy Middle East LLC

Wealth Management Products for NRI's

 Karvy Realty (India) LTD

Realty Services

 Karvy Financial Services LTD

Awards and Recognitions

Chairman of the diversified financial services group- Karvy, C Parthasarathy has bagged the ‘Entrepreneur of the Year’ award from the Telangana
government for 2017. The award was given for his contribution to IT sector in the state apart from employment generation.

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 Karvy Comtrade Limited received “Market Excellence Award, Commodities - Metal” at the Zee Market Excellence Awards 2016.
 The SKOCH – BSE Order of Merit award and the SKOCH – BSE Aspiring Nation award for KSBL’s efforts to educate, empower and help
create an enlightened corps of financial market investors

2014

KSBL won the "NSDL Star Performer Award 2014 for Highest Asset Value" the third time consecutively.

Karvy Comtrade Limited won the prestigious ZEE Business Award for the "Best Agricultural Analyst" in the fifth edition of India’s Best Market
Analyst

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 2011

Karvy Comtrade also bagged the ‘Broker with Best Corporate Desk for Commodity Broking’ award at the Bloomberg UTV Financial Leadership
Awards 2011

Business Analysis:-

Strengths:-

1. Cooperative and experienced branch manager

2. Good database
3. Low pricing
4. KARVY brand

Weakness:-

1. Inexperienced staff
2. Low awareness due to the low advertisement
3. Lack of loyal clientage

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 4. Developing product

Opportunity:-

1. Untapped market
2. Increased spending power
3. Changing mindset of customers
4. Unpredictable Sensex

Threats:-

1. Reach
2. Stiff competition from existing players in the market.

COMPETITORS OF KARVY STOCK BROCKING LIMITED

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 IIFL is one of Karvy Stock Broking's top rivals. IIFL's headquarters is in Mumbai, Maharashtra, and was founded in 1995. IIFL operates in the
Diversified Financial Services industry. IIFL generates ∞% of Karvy Stock Broking's revenue.

Motilal Oswal has been one of Karvy Stock Broking's top competitors. Motilal Oswal was founded in 1987 in Mumbai, Maharashtra. Motilal Oswal
is in the Banks industry. Motilal Oswal generates $83M more revenue than Karvy Stock Broking.

Angel Broking is one of Karvy Stock Broking's top competitors. Angel Broking was founded in Mumbai, Maharashtra} in 1987. Angel Broking
operates in the Diversified Financial Services industry. Compared to Karvy Stock Broking, Angel Broking generates $1.3B more revenue.

Citibank is perceived as one of Karvy's biggest rivals. Citibank's headquarters is in New York, New York, and was founded in 1812. Citibank
operates in the Banks industry. Citibank generates 466,000% of Karvy's revenue.

Costumers of Karvy:-

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1. Potential customer – The Potential Customers

The Potential Customer is a type of customer that is at the very beginning of your sales funnel. Technically, Customers is not your customer yet.
However, you should give them the full treatment and hopefully change that quickly. Potential Customers is a lead that needs nurturing and warming
up before making a buying decision. He already showed some interest in your business, either by filling out a contact form, asking a question on one
of your support channels, signing up for a newsletter or came to your website as a result of other lead generation methods. That piece of interest is
what separates Customers from other website visitors. You can use that spark of interest to convert him into a paying customer.

2. New customer – New Customers

New Customers is the fresh customer that just bought something from you. He is still learning the ropes of using your product. You need to do
everything in your power to make that adoption period smooth. Even though you already made a sale, you can’t leave Customers without any help. If
he won’t receive it, he may not find much success with your product. The time you save by not helping Customers will be less valuable than the future
business he may bring. You can make sure that doesn’t happen with a proper user onboarding.

3. Discount customer – Discount Customers

Discount Customers is the type of customer that sees value in your product but won’t buy it at full price. Upselling your product to Customers is nearly
impossible. Customers are usually looking for some extra information on the exact conditions of the deal or discount you are offering. You can help
him by explaining the deal and what he needs to do to use it.

Eligibility to Invest

The following are eligible to purchase Units of most schemes:

Individual Investors: - They invest for their personal benefit or the benefit of their family. Examples:

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  Resident Indian adult individuals, above the age of 18: They can invest, either singly or jointly (not exceeding three names)
 Minors i.e. persons below the age of 18: Since they are not legally eligible to contract, they need to invest through their Parents/Lawful
guardians.
 Hindu Undivided Families (HUFs): Here, family members pool the family money (inherited) for investments. The head of the family (called
“Karta”) invests on behalf of the family. Against his name in the application, he would add the letters “HUF” to show that the investment
belongs to the family.
 Non-Resident Indians (NRIs) /Persons of Indian origin (PIO) resident abroad: Indian citizens, who are working abroad, and their family residing
abroad, are typical NRIs who invest in India. Some Indians go on to become citizens of foreign countries such as the US, Canada, New Zealand
etc. Since India does not permit dual citizenship, they need to give up their Indian citizenship. However, their status as erstwhile Indians,
entitles them to invest in mutual fund schemes on full repatriation or non-repatriation basis. As part of the documentation, they will need to
provide their PIO (Person of Indian Origin) Card / OCI (Overseas Citizenship of India) Card.
 NRI / PIO resident abroad have the facility of investing on repatriable basis i.e. when they sell the investment, the sale proceeds can be
transferred abroad. Alternatively, they can invest on non-repatriable basis, in which case the proceeds from the sale of those investments cannot
be remitted abroad.
 Foreign investors can invest in equity schemes of MFs registered with SEBI after completing the KYC process.

Non-individual Investors

 Here, the individuals who sign the documents are investing on behalf of organizations/institutions they represent, such as:
 Companies / corporate bodies, registered in India
 Registered Societies and Co-operative Societies
 Trustees of Religious and Charitable Trusts
 Trustees of private trusts
 Partner(s) of Partnership Firms
 Association of Persons or Body of Individuals, whether incorporated or not
 Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions and Investment Institutions

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  Other Mutual Funds registered with SEBI
 Foreign Institutional Investors (FIIs) registered with SEBI
 International Multilateral Agencies approved by the Government of India
 Army/Navy/Air Force, Para-Military Units, and other eligible institutions
 Scientific and Industrial Research Organizations
 Universities and Educational Institutions

SEBI and RBI circulars dated August 9, 2011, have allowed Qualified Foreign Investors (QFIs) who meet KYC requirements to invest in equity and
debt schemes of Mutual Funds through two routes:

 Direct route - Holding MF units in the Demat account through a SEBI registered depository participant (DP).
 Indirect route- Holding MF units via Unit Confirmation Receipt (UCR)

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 -

CHAPTER-3

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 ANALYSIS AND FINDINGS
WEEKLY EXECUTIVE REPORT
WEEK 1: -
In my first week, we were taught by the employees of Karvy. We were given rigorous training about the KYC forms, about the requirements of KYC
forms, about the client code given by Karvy, about the demat and trading account. We got to know about the brokerage charges of intraday and
delivery in Karvy. We were taught about the investment strategy of Karvy. We were also taught about the products of Karvy, about the derivatives,
future contract, and forward contract as well as about the options.

And then at the end, we were given an assignment of opening the demat and trading account.

WEEK 2:-

In my second week, went to customers and approached them for opening the demat and trading account. In this week I talked with several customers.
I tried to cover almost two areas of Bhubaneswar i.e., Acharya Vihar and Vani Vihar. In this week I approached several customers. I talked with the
some of the businessmen.

In my this first week of interaction with customers I got to learn a lot.

WEEK 3:-

In my third week, I went to some other locations in Bhubaneswar i.e., Jayadev Vihar and patia. In this week also I interacted with various kinds of
customers. I tried to convenience the customers for opening the Demat and Trading Account. I tried to tell them about the benefits of investing in the
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stock market. I tried to change their mindset for investing their money in a such a market where they can have a profit, as well as they, can also suffer
from the loss. There were certain questions asked by the customers and I was unable to answer them so I took the help of my external guide and he
helped a lot to me answer the queries of the customers.

I am very thankful to my external guide for helping me.

WEEK 4:-

In this week also I started to search my customers in some of the new locations of Bhubaneswar. In this week I talked to some of the businessmen,
some of the individuals who were doing their job in TCS. This week something strange happened to me. I met with a person without knowing his
designation and I started to tell them about the benefits of Demat and Trading account as well as about the brokerage charges of Demat and Trading
account. But he started asking me several questions as if he was taking my test. And at the last, he said me that he is in these stock market business
for last year 6 years and he was providing an internship to several students.

This was a great experience for me.

WEEK 5:-

In this week also I met several customers of mine in some of the new location. This time I went to my home I searched for the new customers there. I
tried to search for potential customers who can open the Demat account and Trading account. There were certain customers who were interested in
opening demat and trading account but I was unable to answer the questions.

So I tried to answer all the questions of the customers.

WEEK 6:-

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In my final week also I approached some customers and tried to explain to them about the benefits of Demat and Trading account and also explained
to them about the benefits of the Demat account and Trading account as well as about the brokerage charges of intraday and delivery.

This was a great experience for me to interact with several customers.

Findings

From the 45 days of my internship, I found that I developed some knowledge of the stock market. I got to know about Demat and Trading account
and their brokerage charges. I got to have some knowledge about the derivatives, forward contract, future contract, options. I also get to know about
the products of Karvy.

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 CHAPTER-4

SUGGESTIONS AND CONCLUSIONS

The feedback that I got from the customers is that it has long working hours. The company serves as the best mentors and has a good working
environment. Happy to see Employee flexible policies. One of few companies were weekend privacy is given importance.
Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are
meager and obscure. As an investor progresses in his/her life stage and as his/her financial goals change, so does the unique investor profile.
Maximum investors are aware of all the investment options. Investors do not invest in a single avenue. They prefer different avenues and maximum

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investors prefer to invest in shares, mutual funds & debentures. The investment decision of investors is influenced by their own decision and through
friends & relatives.
I concluded that it has a good platform for the learners. We can learn something new and can have quite different knowledge about the stock market.
The team at Karvy is very supportive and cooperative.

BIBLIOGRAPHY
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Books referred: Security analysis and portfolio management by S.Kevin

Newspaper –Business standard, Economic times

WEBSITES:

- www.nseindia.com
- www.bseindia.com
- www.stockcharts.com
- www.investopedia.com
- www.moneycontrol.com
- www.google.com
- www.karvy.com

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