Portfoilio Mgt
-
Upload
rashmi-bhanage -
Category
Business
-
view
508 -
download
0
description
Transcript of Portfoilio Mgt
![Page 1: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/1.jpg)
Bharti Airtel
![Page 2: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/2.jpg)
INTRODUCTION
![Page 3: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/3.jpg)
Shareholding pattern
![Page 4: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/4.jpg)
position of stocks
Stock of the company opened at 325 on BSE.
Current EPS – 20.54Current P/E ratio – 16.00
Share price has seen a 52-week of Rs.376.50 and of Rs.257 on BSE.
![Page 5: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/5.jpg)
One Year Chart for Bharti Airtel Ltd.
![Page 6: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/6.jpg)
Future plans of airtel
![Page 7: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/7.jpg)
Current scenario of co.
"The latest TRAI (Telecom Regulatory Authority of India) report on VLR (Visitor Location Register) numbers once again reiterates Bharti Aritel's transparent reporting of customer numbers. With close to 92 percent active customer base, Bharti Airtel has ranked as the number one among all operators," the company said in a statement.
NEW DELHI-FEB,11
![Page 8: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/8.jpg)
ECONOMIC ANALYSIS
![Page 9: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/9.jpg)
INDIA GDP GROWTH RATE
The India GDP is worth 1217 billion dollars or 1.96% of the world economy, according to thy world Bank.
Services are the major source of economic growth, accounting for more than half of India’s output with less than one third of its labor force.
![Page 10: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/10.jpg)
![Page 11: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/11.jpg)
INDIA’S INFLATION RATE
Measures of inflation rates are CPI & GDP deflator.
The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10% points.
![Page 12: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/12.jpg)
![Page 13: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/13.jpg)
INDIA INTEREST RATE
![Page 14: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/14.jpg)
INDIA CURRENT ACCOUNT
Current account is the sum of the balance of trade, net factor income & net transfer payments.
Positive net sales to abroad generally contributes to a current account surplus; negative net sales to abroad generally contributes to a current account deficit.
![Page 15: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/15.jpg)
![Page 16: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/16.jpg)
MAR-2006 11.33%
MAR-2007 8.82%
MAR-2008 6%
MAR-2009 5.31%
MAR-2010 5.03%
EXPORT AS A PERCENTAGE OF TOTAL SALES
![Page 17: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/17.jpg)
FOREIGN DIRECT INVESTMENT
FDI up to 100% permitted in telecom service like electronic mail & voice mail.
FDI up to 74% is permitted for radio paging service & internet service provider.
![Page 18: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/18.jpg)
IMPACT OF BUDGET
The allocation of Rs. 2,400 crore from the Universal Service Obligation Fund.
11,000 telecom towers across 2.4 lacks villages.
The Government expects to collect Rs. 48,335.35 crore from the telecom sector, with 3G spectrum sales contributing 75% to the total.
The increasing in Minimum Alternate Tax (MAT) from 10% to 15%, which came as a huge blow to the sector.
![Page 19: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/19.jpg)
![Page 20: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/20.jpg)
Industry analysis.
![Page 21: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/21.jpg)
INDUSTRY ANALYSIS.oMeaning.
oPurpose.
The followings are some important factors which should be considered in
industry analysis.
oGrowth.
oProfitability.
oDemand-Supply.
oEntry barrier.
oCompetition and Market share.
oTechnology trends.
oGovernment Policy.
oCapacity Utilization.
oBargaining power of buyers.
![Page 22: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/22.jpg)
• The Indian Telecommunications network with 752 million mobile connections (as on Feb 2011) is the third largest in the world. 2nd largest in terms of wireless connection.
• Telecommunication has gained momentum in India.
• This sector is growing at a speed of 45% during the recent years.
• ' Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of India' (TRAI). It has earned good reputation for transparency and competence.
INDIAN TELECOM INDUSTRY.
![Page 23: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/23.jpg)
• Two types of players exists in ' Telecom Industry India ' community –
• State owned companies like - BSNL and MTNL.
• Private companies like - Reliance Infocomm and Tata Teleservices, Bharti Tele-Ventures, Idea Cellular, LOOP Mobile, Spice Communications etc.
• Telecom industry in India has a big market potentiality and is a fast growing sector. Government of India is eager to reconstitute this telecom industry by enacting effective policies for more investments from foreign companies.
INDIAN TELECOM INDUSTRY.
![Page 24: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/24.jpg)
1. STRENGTH.
oVery focused on telecom.
oLeadership in fast growing cellular Segment.
oPan India footprint.
oRecognized Globally.
oStrong Brand Image.
oStrong Financials.
oUnique value added services.
SWOT ANAYSIS OF BHARTI AIRTEL
![Page 25: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/25.jpg)
2. WEAKNESS.
o Price Competition from vodafone,Docomo.
o Untapped Rural market.
o Low GPRS speed.
SWOT ANAYSIS OF BHARTI AIRTEL
![Page 26: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/26.jpg)
3. Opportunities.
oHuge wireless subscriber potential.
oReady-to-pay consumers for cutting edge services.
oIndia- fastest growing mobile market in the world.
oLatest and low cost technology.
SWOT ANAYSIS OF BHARTI AIRTEL
![Page 27: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/27.jpg)
4. Threats.
oSoftware and digital content piracy.
oOther players, especially Vodafone,Loop,Docomo.
oNew Players coming in India.
o Uncertain Economic Condition.
SWOT ANAYSIS OF BHARTI AIRTEL
![Page 28: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/28.jpg)
PORTERS 5 FORCES MODEL
![Page 29: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/29.jpg)
1 .Threat from Competition
HIGH
Wireless Market – Top 4 garnering 75% market share
![Page 30: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/30.jpg)
Lack of differentiation among Service Providers
Cut throat Competition
Low Switching Costs
Number Portability will have –Ve Impact
Businesses & Consumers
2.Customer Bargaining Power
HIGH
![Page 31: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/31.jpg)
![Page 32: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/32.jpg)
![Page 33: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/33.jpg)
(Mobile virtual network operator)
![Page 34: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/34.jpg)
COMPANY ANALYSIS
![Page 35: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/35.jpg)
BALANCE SHEET RATIO ANALYSIS
Mar-06 Mar-07 Mar-08 Mar-09 Mar-10
Current ratio
0.44 0.47 0.57 0.69 0.68
Quick ratio 0.45 0.47 0.55 0.65 0.72
![Page 36: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/36.jpg)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Current ratio
Current ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Quick ratio
Quick ratio
![Page 37: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/37.jpg)
INCOME STATEMENT RATIO ANALYSIS
Mar-06 Mar-07 Mar-08 Mar-09 Mar-10
Gross profit ratio
23.14 27.47 29.08 29.33 28.15
Net profit ratio
17.80 22.46 23.99 22.58 26.36
![Page 38: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/38.jpg)
0
5
10
15
20
25
30
35
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Gross profit ratio
Gross profit ratio
0
5
10
15
20
25
30
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Net profit ratio
Net profit ratio
![Page 39: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/39.jpg)
MANAGEMENT RATIOS
Mar-06 Mar-07 Mar-08 Mar-09 MAR-10
Inventory ratio
634.52 373.35 453.06 547.83 1307.05
Account receivable ratio
12.57 14.31 12.28 12.78 15.30
![Page 40: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/40.jpg)
0
200
400
600
800
1000
1200
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Inventory ratio
Inventory ratio
02468
1012141618
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Account receivable ratio
Account receivable ratio
![Page 41: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/41.jpg)
OVERALL PROFIT ABILITY ANALYSIS
Mar-06 Mar-07 Mar-08 Mar-09 Mar-10
Return on asset ratio
0.72 0.75 1.03 1.00 0.88
Return on investment ratio
10.62 21.27 32.90 40.79 24.82
![Page 42: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/42.jpg)
0
0.2
0.4
0.6
0.8
1
1.2
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Return on asset ratio
Return on asset ratio
0
200
400
600
800
1000
1200
1400
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Return on investment ratio
Return on investment ratio
![Page 43: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/43.jpg)
MARKET TEST RATIOS
Mar-06 Mar-07 Mar-08 Mar-09 Mar-10
Earning per share ratio
10.62 21.27 32.90 40.79 24.82
05
1015202530354045
6-Mar 7-Mar 8-Mar 9-Mar 10-Mar
Earning per share ratio
Earning per share ratio
![Page 44: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/44.jpg)
• Quarterly result of Bharti Airtel.
![Page 45: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/45.jpg)
Intrinsic value of March ‘12
Expected EPS = 22.07
Expected P/E ratio = 19.20
Intrinsic value for march ‘12 = 22.07 * 19.20
= Rs.424
Market price = Rs. 332
![Page 46: Portfoilio Mgt](https://reader034.fdocuments.net/reader034/viewer/2022052601/5591f3311a28ab776e8b4595/html5/thumbnails/46.jpg)
CONCLUSION