Perfomance Comparision of Securities
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Finance
Project work
Performance Comparison of Securities
Table of Contents
Objective
Introduction
Analysis
3.1 Revenue Growth
3.1.1
Observations:
3.1.2
Rankings:
3.2 PAT Growth
3.2.1
Observations:
3.2.2
Rankings:
3.3 EPS Comparative Study
3.3.1
Observations:
3.3.2
Rankings:
3.3 P/E Comparative Study
3.3.1
Observations:
3.3.2
Rankings:
4 Interim Conclusion
Individual Security Analysis
5.1 MACD (Moving Average Convergence/Divergence)
5.1.1
Overview:
5.1.2
Interpretation:
5.2 RSI (Relative Strength Index)
5.2.1
Overview:
5.2.2
Interpretation:
5.3 Candlestick Analysis Interpretation
5.3.1
Dark Cloud Cover
5.3.2
Evening Star
5.3.3
Engulfing Pattern
5.3.4
Shooting Star
5.3.5
Three Black Crows
5.3.6
Inverted Hammer
5.3.7
Morning Star
5.3.8
Piercing Line
5.3.9
Three white soldiers
5.3.10
Downside Tasuki Gap
5.3.11
Falling Three methods
5.3.12
Rising Three methods
5.4 Tata Consultancy Services (TCS)
5.4.1
Stock Price Movement Chart:
5.4.2
Candlestick Analysis:
5.4.3
MACD Analysis:
5.4.4
RSI Analysis:
5.5 WIPRO
5.5.1
Stock Price Movement Chart:
5.5.2
Candlestick Analysis:
5.5.3
MACD Analysis:
5.5.4
RSI Analysis:
5.6 INFOSYS
5.6.1
Stock Price Movement Chart:
5.6.2
Candlestick Analysis:
5.6.3
MACD Analysis:
5.6.4
RSI Analysis:
5.7 SATYAM
5.7.1
Stock Price Movement Chart:
5.7.2
Candlestick Analysis:
5.7.3
MACD Analysis:
5.7.4
RSI Analysis:
6 References
Objective
The purpose of this report is to evaluate the performance of common stocks under alternate investment strategies. The main focus of this report will be to measure the investment performance of the sample securities on the basis of P/E ratio, EPS, revenue growth, PAT growth rate and other technical analysis.
Introduction
A common stock represents the speculative net worth of the company. The companies are no more simply valued on the basis of their net worth only. A lot of factors are taken into account to gauge the potential of a company, such as the stock prices, the P/E evaluation and comparison of P/E with the companies in similar business, EPS and various other technical ratios.
For an institutional or a retail investor it is extremely important to understand the future growth prospect of the company to take an invested position. To gauge this growth prospect one could choose to research on the macroeconomic factors that impact the industry/country that the company is operational in or one could choose to research the microeconomic factors that will impact the question the relevance and existence of the business itself.
But, if one has to take a relatively short term view and keep into account that the above mentioned factors will be constant throughout the period under evaluation, it becomes extremely important to carry out the technical analysis.
Since the funds with every investor are limited and diversification is the only way to hedge risk, one would like to invest only in the best performing security within each sector. So, the choice of a security over its rival business parties in a particular sector needs to be studied carefully.
We will be studying the securities under the IT sector to have a focussed discussion and develop a comparative view.
The securities under observation are:
HCL TECHNOLOGIES
INFOSYS
SATYAM COMPUTER SERVICES LIMITED
TATA CONSULTANCY SERVICES (TCS)
TECH MAHINDRA
WIPRO
Analysis
3.1 Revenue Growth
The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the “top line” or “gross income” figure from which costs are subtracted to determine net income.
Revenue is calculated by multiplying the price at which goods or services are sold by the number