Kinjal Presentation

8/4/2019 Kinjal Presentation

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FUNDAMENTAL AND

ENVIRONMENTAL ANALYSISOF THE POWER SECTOR OFINDIA

By:Kinjal Modha(NR10052)

Saloni Shah(NR10091)


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INTRODUCTION ANAND RATHI

Leading full service securities firm Provides the entire gamut of financial

services. 350 locations across India International presence in Dubai, Hong Kong &

New York Founded by Mr. Anand Rathi and Mr. Pradeep

Gupta AR provides a breadth of financial and

advisory services, supported by powerful

research teams. Including wealth management, Investment bankingCorporate advisoryBrokerage & distribution of equitiesCommoditiesMutual funds Insurance


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INTRODUCTION POWER SECTOR

Total Installed Capacity of Indian Power Sector

(By Fuel) (By 31st March , 2010)

Source: 91st Annual Reports of TATA Power


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STRATEGIES FOR POWER SECTOR

Power Generation Strategy

Transmission Strategy

Distribution strategy

Regulation Strategy Financing Strategy

Conservation Strategy

Communication Strategy


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RESEARCH METHODOLOGY

OBJECTIVES:To compare performance of the selected

companies of the power sector of India

To make Fundamental Analysis using ratios ofthe selected five companies in the powersector which are listed on a National StockExchange and Bombay Stock Exchange.

To make the Environmental Analysis of theselected five companies in the power sectorwhich are listed on a National Stock Exchangeand Bombay Stock Exchange.


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SOURCE OF DATA: Secondary Data

ANALYSIS TOOLS: Various Accounting Ratios

Weighted Average

Environmental Analysis


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COMPANIES ANALYSED

NTPC

TPC

Torrent Power

Powergrid

BHEL


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FUNDAMENTAL ANALYSIS USINGRATIOS

Debt-to-equity ratio

Current Ratio

Interest Cover Ratio

Fixed Asset Turnover Ratio

Inventory Turnover Ratio

Debtors Turnover Ratio

ROCE (Return on Capital Employed)

RONW (Return on Net Worth)

EPS (Earnings per Share)


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ENVIRONMENTAL ANALYSIS

The most Eco-friendly to least Eco-

friendly

The source used to generate the power


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DESIGN: Descriptive Research

LIMITATIOS:Time Constraint

Only Power Sector

Only Five Companies

For the Year ranging from 2005-06 to 2009-2010


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FUNDAMENTAL ANALYSIS


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ANALYSIS


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ANALYSIS


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ANALYSIS


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ANALYSIS


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ANALYSIS


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ANALYSIS


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ANALYSIS


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ANALYSIS


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ANALYSIS

RANKING OF COMPANIES ON THE


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RANKING OF COMPANIES ON THEBASIS OF FUNDAMENTALANALYSIS

Year NTPC TPC Torrent Powergrid BHEL

Debts to Equity Ratio 3 2 4 5 1

Current Ratio 1 2 4 5 3

Interest Cover Ratio 2 4 3 5 1

Fixed Asset Turnover Ratio 3 2 4 4 1

Inventory Turnover Ratio 1 2 4 4 3

Debtors Turnover Ratio 2 3 1 4 5

Return On Capital Employed 3 4 2 5 1Return On Net Worth 3 5 2 4 1

Price Earnings Ratio 4 1 5 3 2

Earnings Per Share 4 2 3 5 1


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RANKS FOR WEIGHTED AVERAGE

Company xw w Weighted Average Ranks

NTPC 262.62 24 10.9425 3

TPC 327.05 24 13.62708 2

Torrent 247.01 24 10.29208 4

Powergrid 140.64 24 5.86 5

BHEL 957.34 24 39.88917 1


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RANKING ON THE BASIS OFENVIRONMENTAL ANALYSIS

Company Name Rank

NTPC 3

TPC 1

Torrent 4

Powergrid 5

BHEL 2

Tata power: power generation technologies

BHEL: PCRI


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FINDINGS

BHEL: liquidity, EPS Price to Earnings ratio of TPC

Torrent gives higher return on capital employed

BHEL also gives higher return on net worth

Environmental analysis TPC

On the basis of both the analysis, we can rank TPC and BHEL

as the best amongst the power sector companies and the

environmental policies they are using have tried to protect our

environment from the pollution.


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CONCLUSION

BHEL and TPC

BHEL for Fundamentals

TPC for Environmental

Powergrid


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BIBLOGRAPHY

June 22, 2011 http://www.rathi.com/about_us.html

July 2, 2011http://www.moneycontrol.com/financials/ntpc/ratios/NTP

July 2, 2011

http://www.moneycontrol.com/financials/torrentpower/ratios/TP1 July 2, 2011

http://www.moneycontrol.com/financials/tatapowercompany/ratio

July 2, 2011http://www.moneycontrol.com/financials/powergridcorporationind

July 2, 2011http://www.moneycontrol.com/financials/bharatheavyelectricals/r
http://www.rathi.com/about_us.htmlhttp://www.moneycontrol.com/financials/ntpc/ratios/NTPhttp://www.moneycontrol.com/financials/torrentpower/ratios/TP14http://www.moneycontrol.com/financials/tatapowercompany/ratios/TPChttp://www.moneycontrol.com/financials/powergridcorporationindia/ratios/PGChttp://www.moneycontrol.com/financials/bharatheavyelectricals/ratios/BHEhttp://www.moneycontrol.com/financials/bharatheavyelectricals/ratios/BHEhttp://www.moneycontrol.com/financials/powergridcorporationindia/ratios/PGChttp://www.moneycontrol.com/financials/tatapowercompany/ratios/TPChttp://www.moneycontrol.com/financials/torrentpower/ratios/TP14http://www.moneycontrol.com/financials/ntpc/ratios/NTPhttp://www.rathi.com/about_us.html


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THANK YOU
http://www.moneycontrol.com/financials/bharatheavyelectricals/ratios/BHE

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