A STUDY ON FUNDAMENTAL ANALYSIS IN SHAREKHAN PRIVATE LIMITED.

Management study MBA

Project work entitled a STUDY ON FUNDAMENTAL ANALYSIS with special reference to sharekhan private limited, is mainly conducted to identify the factors which will make the investors to select stock to invest in future to earn better return. Fundamentals are associated with the economic health of a company. The fundamentals tell you about a company. We can say a company is having healthy fundamentals if it is growing at a nice pace, generating a profit, has limited debts and abundant cash. The analysis of a company's fundamentals involves getting deep into its financials, rather than day-to-day movement in its share price. Equity researchers normally do fundamental analysis in order to calculate the intrinsic value of a company's stock. If a company's stock is trading above the intrinsic value or fair value, then the stock is overvalued. If a company's stock is trading below the intrinsic value, then the stock is undervalued. However, if you watch the stock markets very closely, the share price of most companies never matches the fair value. Often, day traders and investors who would prefer short term investment options invest in those stocks, regardless of the companies' long term growth prospects. However, long term investors generally prefer to invest in companies with robust fundamentals and ignore near-term share price movements Company analysis deals with various ratios such as DPS, EPS ,current ratio, Debt-Equity ratio, asset turnover ratio, liquidity ratio, and trend analysis are used. It also focuses on the calculation of Intrinsic value of shares and compared with Market value. If intrinsic value is greater than market value the share is said to be undervalued whereas if market value is greater than intrinsic value, the share is overvalued. From the study TCS, Bajaj auto, Yesbank.

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