Fundamental Analysis of Hdfc Bank

14042 Words Feb 1st, 2013 57 Pages
A Research Project On

Fundamental Analysis of ICICI Bank
On the fulfillment of two year Full time Post Graduate Diploma in Management

Guru Nanak Institute of Management, Punjabi Bagh, New Delhi

Submitted By
NEETU HANS Roll No-6003 Specialization: Finance PGDM

Supervised By
Mr. N.P Singh Asst. Prof. Finance

A Research Project On

Fundamental Analysis of ICICI Bank
On the fulfillment of two year Full time Post Graduate Diploma in Management

Guru Nanak Institute of Management, Punjabi Bagh, New Delhi

Submitted By
Rohit Sharma
Asim Rssool

Supervised By
Mr. N.P Singh

TABLE CONTENTS Sr.no TITLE 1. 2. 3. 4. 5. 6. Introduction to fundamental analysis Economic analysis Industry analysis Company analysis Research methodology Data
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If the value of the security is lower than its market price, investors should sell it.

The steps involved in fundamental analysis are:
1. Macroeconomic analysis, which involves considering currencies, commodities and indices. 2. Industry sector analysis, which involves the analysis of companies that are a part of the sector. 3. Situational analysis of a company. 4. Financial analysis of the company. 5. Valuation The valuation of any security is done through the discounted cash flow (DCF) model, which takes into consideration: 1. Dividends received by investors 2. Earnings or cash flows of a company 3. Debt, which is calculated by using the debt to equity ratio and the current ratio (current assets/current liabilities)

Fundamental Analysis Tools These are the most popular tools of fundamental analysis. Earnings per Share – EPS Price to Earnings Ratio – P/E
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Projected Earnings Growth – PEG Price to Sales – P/S Price to Book – P/B Dividend Payout Ratio Dividend Yield Book Value Return on Equity Ratio analysis

Financial ratios are tools for interpreting financial statements to provide a basis for valuing securities and appraising financial and management performance. A good financial analyst will build in financial ratio calculations extensively in a financial modeling exercise to enable