A Study of Fundamental Analysis on Selected Stocks Project

NEED OF STUDY:

Fundamental value or intrinsic value is very important in doing an investment. The intrinsic value of the stock does not refer to market value but refers to the natural value of the stock. Through fundamental analysis, we can arrive at the fundamental value of the stock which enhances the understanding of different stock to investors. Fundamental value or intrinsic value is the actual value of the stock which can be derived from fundamental analysis and this value is very important at the time of investment to take a rational decision in investing in a stock. Fundamental analysis of stock also brings in elements like discounting, future projected projects are discounted in relation to the time value of money to find out the actual value of the stock. While investing in different stocks clear analysis is a need, without clear and rational analysis decision making will become very complex, to make it more easy and accurate fundamental analysis can be used.

STATEMENT OF THE PROBLEM:

Investment is a major decision in an organization because it involves financial input and there is a certain return expected out of it. investment should give a return which is good and satisfy the expectation of the investor. The Stock meeting the expectations of the investor depends on the investment pattern the investor is using. There are multiple stocks to analyze before taking an investment decision, this analyzing process is tedious and needs a lot of standards and proven expertise and if this proven technique is not used accordingly can be misleading can lead the investor to invest in a non-performing stock. Fundamental analysis brings out the true value of a stock when used procedurally that is the intrinsic value of the stock to support the investment decision of the investor rationally. Stocks are very complex to understand and they are highly fluctuating depending on the market, to analyze them and compare them to come to decision for investment is challenging and needs a lot of expertise.

OBJECTIVES OF THE STUDY

  1. To know how fundamental analysis tools are used to predict the future behavior of the stocks
  2. To analyze the performance of selected stocks.
  3. To determine economic value added and market value added.
  4. To offer suggestions based on the analysis of the study.

SCOPE OF THE STUDY

The study is totally dependent on the data collected from the secondary sources. The study is totally dependent on the accuracy of the data collected from the secondary sources, the study will give the investors in detail analysis of the stock.

SAMPLE SIZE

BANKING SECTOR IT SECTOR FMCG SECTOR
CANARA INFOSYS ITC
HDFC WIPRO DABUR INDIA LIMITED
AXIS ORACLE HUL
SBI MPHASIS BRITANNIA
ICICI HCL AMUL

CHAPTER SCHEME 

Chapter 1 – INTRODUCTION

This part of the study gives a picture about the introduction of the topic.

Chapter 2 – REVIEW OF LITERATURE AND RESEARCH DESIGN

This part of the study contains the view of old literature on the topic and the research methodology adopted.

Chapter 3 – PROFILE OF SELECTED ORGANISATION AND        RESPONDENTS

This figure outs the type of organization and its transaction.

Chapter 4 – DATA ANALYSIS AND INTERPRETATION

It includes the calculation and interpretation of the data.

Chapter 5 – FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

This describe about the findings and conclusions about the topic and the recommendation for the study.

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