A STUYDY ON EQUITY ANALYSIS IN AUTOMOBILE INDUSTRY WITH

REFERENCE TO SHAREKHAN

Introduction of the study:

Over the decades, investors have been presented with a number of products and a good

equity portfolio can have a combination of all of them. When one thinks of aggressive

investment option, equity is bound to top the list for many. While some think that equity

allows them to earn quick returns in a short period of time, the reward is always higher

over the long term. No doubt, markets do offer opportunities of doubling the capital at

regular intervals as was the case in 2008-09, but it was a not a planned exercise for many.

In fact, the turnaround in quick time was beyond everyone's expectation but it only

proved the fact that equity has the ability to bounce back in quick time. As a matter of

fact, the turnaround for most assets has come down in recent times and with economies

getting globalised at a faster pace, the cycles are likely to get shorter going forward.

For those looking at equity allocation in their portfolio, trading in stocks is not the only

option. Today, there is a larger basket of products which allows investors to have equity

allocation. These include direct stocks, mutual funds, futures and options, insurance and

pension plans etc.

“The Indian Automobile industry is a success story providing employment for millions

and ensuring that essential drugs at affordable prices are available to the vast population

of this sub-continent.”

The Indian Automobile Industry today is in the front rank of India’s science-based

industries with wide ranging capabilities in the complex field of drug manufacture and

technology. It ranks very high in the third world, in terms of technology, quality and

range of manufactured.

Playing a key role in promoting and sustaining development in the vital field of

Manifature, Indian Automobile Industry boasts of quality producers and many units

approved by regulatory authorities in USA and UK. International companies associated

with this sector have stimulated, assisted and spearheaded this dynamic development in

the past 53 years and helped to put India on the Automobile map of the world.

The present study Performance analysis of equities in Automobile industry. Brings into

surface the risk and return involved and the options for the various investments for the

efficient management of the portfolio.

RESEARCH METHODOLOGY

Need for the study:

Companies need to invest in diverse areas in order to minimize their risk and get

optimum returns. However, a company cannot blindly invest in everything in order to

reduce its risk since it involves huge money and effort. So, it is important for a company

to properly decide its portfolio and invest carefully. The present study gives an insight

into this issue by analyzing the Equity Share Prices of the Automobile industry.

Research problem:

Equity shares belong to the high risk and high return category where the returns depend

much on investor’s luck. Out of the total Automobile companies in India, only 25% are

listed companies. Automobile industry requires heavy investments for research and

development compared to any other industry. Inspite of this heavy investment, there is no

guarantee for expected outcome. When such is the situation, the investor is highly

affected. Whatever is the risk he beared does not become fruitful.

Further, Automobile industry is the least affected industry even in case of recession. This

is evident from the world’s recession in the year 2008. This means that Automobile

companies seem to be immune to the economic ups and downs. Hence, investment in

Automobile sector is rated as one of the most secure investments.

The present study attempts to analyze the risk and return in the Automobile industry in

the current scenario and attempts to give a well understanding to the investors regarding

the investment in this industry.

Objectives of the Study

To observe the rate of fluctuations in Equity share prices of Automobile industry.

To determine the amount of risk & returns involved in the securities of

Automobile industry.

To observe the degree of volatility in Automobile industry.

To understand the price fluctuations & the factors influencing the fluctuations of

Automobile industry.

Scope of the Study

The study covers all the information related to the Equities it also covers the risk and

returns in Automobile industry. The study is confined only one Sector i.e Automobile

industry and the entire study is based upon their Stock prices for a period of last five

years.

Method of data collection:

The data that is used in this project is of secondary nature. The data is to be collected

from secondary sources such as Company reports and Annual records and various

websites, journals, newspapers, books, etc. the analysis used in this project has been done

using selective technical tools. In Equity market, risk is analyzed and trading decisions

are taken on basis of technical analysis. It is collecting share prices of the company for a

period of two years.

Source of data

Secondary data have been collected from the respective unit though manuals and annual

reports of the company.

Further the data collected from the historical/existing sources of data as databases,

journals books, articles, research reports, websites and etc.

Period of the study

The study is done for a period of 60 days in the organization where the necessary

guidance and the information required for the project is provided.

Data analysis tools:

Beta, Risk and return analysis, Equity Share Values are used to analyze the risk and

return category of Automobile industry.

Limitations of the Study

The present project work has been undertaken to provide information regarding risk

return on equity share prices of Automobile industry. The following are the limitations of

the study.

The study is based on the secondary data which is available from various.

The study is limited to only one sector.

The time taken to undertaken the project work is very short; hence only One

sector was chosen for the study.

LITERATURE REVIEW

According to Kevin Return and risk are two important characteristics of every

investment. Investors base their investment decision on the expected return and risk of

investments. Risk is measured by the variability in returns.

Investors attempt to reduce the variability of returns through diversification of

investment. This results in the creation of a portfolio. With a given set of securities, any

number of portfolios may be created by altering the proportion of funds invested in each

security. Among these portfolios some dominate others or some are more efficient than

the vast majority of portfolios because of lower risk or higher returns.

Diversification helps to reduce risk, but even a well diversified portfolio does not become

risk free. If we construct a portfolio including all the securities in the stock market, that

would be the most diversified portfolio. Even such a portfolio would be subject to

considerable variability. This variability is undiversifiable and is known as the market

risk or systematic risk because it affects all he securities in the market.

The real risk of a security is the market risk which cannot be eliminated through

diversification. This is indicated by the sensitivity of a security to the movements of the

market and is measured by the beta coefficient of the security.

A rational investor would expect the return on a security to be commensurate with its

risk. The higher the risk of security, the higher would be the return expected from it. And

since the relevant risk of a security is its market risk or systematic risk, the return is

correlated with this risk only. The capital asset pricing model gives the nature of the

relationship between the expected return and the systematic risk of a security.

According to Charles investment of funds in various assets is only part of the overall

financial decision making and planning that most individuals must do. Before investing,

each individual should develop an overall financial plan. Such a plan should include the

decision on whether to purchase a house, which for most individuals represents a major

investment.

Investors should expect a risk premium for buying a risky asset such as a stock. The

greater the riskiness of that stock, the higher the risk premium should be. If investors hold

well-diversified portfolios, they should be interested in portfolio risk rather than

individual security risk. Different stocks will affect a well diversified portfolio

differently. The relevant risk for an individual stock is its contribution to the riskiness of

a well diversified portfolio is market risk, or systematic risk, which is non diversifiable.

CONCEPTUAL FRAME WORK

Investment is the activity, which is made with the objective of earning some sort of

positive returns in the future. It is the commitment of the funds to earn future returns and

it involves sacrificing the present investment for the future return. Every person makes

the investment so that the funds he has increases as keeping cash with himself is not

going to help as it will not generate any returns and also with the passage of time the time

value of the money will come down. As the inflation will rise the purchasing power of

the money will come down and this will result that the investor who does not invest will

become more poor as he will not have any funds whose value have been increased. Thus

every person whether he is a businessman or a common man will make the investment

with the objective of getting future returns.

Types of Investments:-

There are basically three types of investments from which the investors can choose. The

three kinds of investment have their own risk and return profile and investor will decide

to invest taking into account his own risk appetite. The main types of investments are: -

Economic investments:-

These investments refer to the net addition to the capital stock of the society. The capital

stock of the society refers to the investments made in plant, building, land and machinery

which are used for the further production of the goods. This type of investments are very

important for the development of the economy because if the investment are not made in

the plant and machinery the industrial production will come down and which will bring

down the overall growth of the economy.

Financial Investments:-

This type of investments refers to the investments made in the marketable securities

which are of tradable nature. It includes the shares, debentures, bonds and units of the

mutual funds and any other securities which is covered under the ambit of the Securities

Contract Regulations Act definition of the word security. The investments made in the

capital market instruments are of vital important for the country economic growth as the

stock market index is called as the barometer of the economy.

General Investments:-

These investments refer to the investments made by the common investor in his own

small assets like the television, car, house, motor cycle. These types of investments are

termed as the household investments. Such types of investment are important for the

domestic economy of the country. When the demand in the domestic economy boost the

overall productions and the manufacturing in the industrial sectors also goes up and this

causes rise in the employment activity and thus boost up the GDP growth rate of the

country. The organizations like the Central Statistical Organization (CSO) regularly takes

the study of the investments made in the household sector which shows that the level of

consumptions in the domestic markets.

Characteristics of Investment

Certain features characterize all investments. The following are the main characteristic

features if investments: -

1. Return: -

All investments are characterized by the expectation of a return. In fact, investments

are made with the primary objective of deriving a return. The return may be received in

the form of yield plus capital appreciation. The difference between the sale price & the

purchase price is capital appreciation. The dividend or interest received from the

investment is the yield. Different types of investments promise different rates of

return. The return from an investment depends upon the nature of investment, the

maturity period & a host of other factors.

2. Risk: -

Risk is inherent in any investment. The risk may relate to loss of capital, delay in

repayment of capital, nonpayment of interest, or variability of returns. While some

investments like government securities & bank deposits are almost risk less, others are

more risky. The risk of an investment depends on the following factors.

The longer the maturity period, the longer is the risk.

The lower the creditworthiness of the borrower, the higher is the risk.

The risk varies with the nature of investment. Investments in ownership securities like

equity share carry higher risk compared to investments in debt instrument like

debentures & bonds.

3. Safety: -

The safety of an investment implies the certainty of return of capital without loss of

money or time. Safety is another features which an investors desire for his investments.

Every investor expects to get back his capital on maturity without loss & without

delay.

4. Liquidity: -

An investment, which is easily saleable, or marketable without loss of money & without

loss of time is said to possess liquidity. Some investments like company deposits, bank

deposits, P.O. deposits, NSC, NSS etc. are not marketable. Some investment instrument

like preference shares & debentures are marketable, but there are no buyers in many

cases & hence their liquidity is negligible. Equity shares of companies listed on stock

exchanges are easily marketable through the stock exchanges.

An investor generally prefers liquidity for his investment, safety of his funds, a good

return with minimum risk or minimization of risk & maximization of return.

IMPORTANCE

In the current situation, investment is becomes necessary for everyone & it is important

& useful in the following ways:

1. Retirement planning: -

Investment decision has become significant as people retire between the ages of 55 &

60. Also, the trend shows longer life expectancy. The earning from employment

should, therefore, be calculated in such a manner that a portion should be put away as a

savings. Savings by themselves do not increase wealth; these must be invested in such a

way that the principal & income will be adequate for a greater number of retirement

years. Increase in working population, proper planning for life span & longevity

have ensured the need for balanced investments.

2. Increasing rates of taxation: -

Taxation is one of the crucial factors in any country, which introduce an element of

compulsion, in a person’s saving. In the form investments, there are various forms of

saving outlets in our country, which help in bringing down the tax level by offering

deductions in personal income.

For examples: -

Unit linked insurance plan,

Life insurance,

National saving certificates,

Development bonds,

Post office cumulative deposit schemes etc.

3. Rates of interest: -

It is also an important aspect for sound investment plan. It varies between

investment & another. This may vary between risky & safe investment, they may also

differ due different benefits schemes offered by the investments. These aspects must

be considered before actually investing. The investor has to include in his portfolio

several kinds of investments stability of interest is as important as receiving high rate of

interest.

4. Inflation: -

Since the last decade, now a day’s inflation becomes a continuous problem. In

these years of rising prices, several problems are associated coupled with a falling

standard of living. Before funds are invested, erosion of the resource will have to be

carefully considered in order to make the right choice of investments. The investor will

try & search outlets, which gives him a high rate of return in form of interest to cover any

decrease due to inflation. He will also have to judge whether the interest or return will

be continuous or there is a likelihood of irregularity. Coupled with high rate of interest,

he will have to find an outlet, which will ensure safety of principal. Beside high rate of

interest & safety of principal an investor also has to always bear in mind the taxation

angle, the interest earned through investment should not unduly increase his taxation

burden otherwise; the benefit derived from interest will be compensated by an increase

in taxation.

5. Income: -

For increasing in employment opportunities in India. Investment decisions have

assumed importance. After independence with the stage of development in the country a

number of organization & services came into being.

For example: -

The Indian administrative services.

Banking recruitment services.

Expansion in private corporate sector.

Public sector enterprises.

Establishing of financial institutions, tourism, hotels, and education.

More avenues for investment have led to the ability & willingness of

working people to save & invest their funds.

6. Investment channels: -

The growth & development of country leading to greater economic activity has

led to the introduction of a vast array of investment outlays. Apart from putting aside

saving in savings banks where interest is low, investor has the choice of a variety of

instruments. The question to reason out is which is the most suitable channel? Which

media will give a balanced growth & stability of return? The investor in his choice of

investment will give a balanced growth & stability of return? The investor in his choice

of investment will have try & achieve a proper mix between high rates of return to reap

the benefits of both.

For example: -

Fixed deposit in corporate sector

Unit trust schemes.

RISK – RETURN OF VARIOUS INVESTMENT AVENUES

The risk/return relationship is a fundamental concept in not only financial analysis, but in

every aspect of life. If decisions are to lead to benefit maximization, it is necessary that

individuals/institutions consider the combined influence on expected (future) return or

benefit as well as on risk/cost. The requirement that expected return/benefit be

commensurate with risk/cost is known as the "risk/return trade-off" in finance.

This session discusses the trade-off and, using conventional statistical tools, provides a

method for quantifying risk. Two categories of risk borne by the firm's stockholders,

business risk and financial risk, are discussed and demonstrated, as is the concept of

leverage. The session also examines risk reduction via portfolio diversification and what

requirements need to be met for firms to experience the benefits of diversification. The

Capital Asset Pricing Model (CAPM) is used to demonstrate the risk/return trade-off by

relating the required return on the firm's investments to its beta (or market) risk.

Every investment is characterized by return & risk. Investors intuitively understand the

concept of risk. A person making an investment expects to get some return from the

investment in the future. But, as future is uncertain, so is the future expected return. It is

this uncertainty associated with the returns from an investment that introduces risk into

an investment. Risk arises where there is a possibility of variation between expectation

and realization with regard to an investment.

Meaning of Risk

Risk & uncertainty are an integrate part of an investment decision. Technically ‘risk’ can

be defined as situation where the possible consequences of the decision that is to be taken

are known. ‘Uncertainty’ is generally defined to apply to situations where the

probabilities cannot be estimated. However, risk & uncertainty are used interchangeably.

Types of risks

1. Systematic risk: -

Systematic risk is non diversifiable & is associated with the securities market as well as

the economic, sociological, political, & legal considerations of prices of all securities in

the economy. The affect of these factors is to put pressure on all securities in such a way

that the prices of all stocks will more in the same direction.

Example: -

During a boom period prices of all securities will rise & indicate that the economy is

moving towards prosperity. Market risk, interest rate risk & purchasing power risk are

grouped under systematic risk.

RISK

SYSTEMATIC UNSYSTEMATIC

i. Market Risk i. Business Risk

ii. Interest Rate Risk ii. Financial Risk

iii. Purchasing power Risk

1. Systematic Risk

(A) Market risk

Market risk is referred to as stock variability due to changes in investor’s attitudes &

expectations. The investor reaction towards tangible and intangible events is the chief

cause affecting ‘market risk’.

(B) Interest rate risk

There are four types of movements in prices of stocks in the markets. These may termed

as (1) long term, (2) cyclical (bull and bear markets), (3) intermediate or within the cycle,

and (4) short term. The prices of all securities rise or fall depending on the change in

interest rates. The longer the maturity period of a security the higher the yield on an

investment & lower the fluctuations in prices.

(C) Purchasing Power risk

Purchasing power risk is also known as inflation risk. This risk arises out of change in the

prices of goods & services and technically it covers both inflation and deflation periods.

During the last two decades it has been seen that inflationary pressures have been

continuously affecting the Indian economy. Therefore, in India purchasing power risk is

associated with inflation and rising prices in the economy.

2. Unsystematic Risk: -

The importance of unsystematic risk arises out of the uncertainty surrounding of

particular firm or industry due to factors like labour strike, consumer preferences and

management policies. These uncertainties directly affect the financing and operating

environment of the firm. Unsystematic risks can owing to these considerations be said to

complement the systematic risk forces.

(A) Business risk

Every corporate organization has its own objectives and goals and aims at a particular

gross profit & operating income & also accepts to provide a certain level of dividend

income to its shareholders. It also hopes to plough back some profits. Once it identifies

its operating level of earnings, the degree of variation from this operating level would

measure business risk.

(B) Financial Risk: -

Financial risk in a company is associated with the method through which it plans its

financial structure. If the capital structure of a company tends to make earning unstable,

the company may fail financially. How a company raises funds to finance its needs and

growth will have an impact on its future earnings and consequently on the stability of

earnings. Debt financing provides a low cost source of funds to a company, at the same

time providing financial leverage for the common stock holders. As long as the earnings

of the company are higher than the cost of borrowed funds, the earning per share of

common stock is increased. Unfortunately, a large amount of debt financing also

increases the variability of the returns of the common stock holder & thus increases their

risk. It is found that variation in returns for shareholders in levered firms (borrowed funds

company) is higher than in unlevered firms. The variance in returns is the financial risk.

PHASES OF PORTFOLIO MANAGEMENT

Five phases can be identified in this process:

1. Security analysis

2. Portfolio analysis

3. Portfolio selection

4. Portfolio revision

5. Portfolio evaluation

Phase I: Security Analysis

An examination and evaluation of the various factors affecting the value of a security.

Security Analysis stands for the proposition that a well-disciplined investor can

determine a rough value for a company from all of its financial statements, make

purchases when the market inevitably under-prices some of them, earn a satisfactory

return, and never be in real danger of permanent loss.

Phase II: Portfolio Analysis

Analysis phase of portfolio management consists of identifying the range of possible

portfolios that can be constituted from a given set of securities and calculating their return

and risk for further analysis.

Phase III: Portfolio Selection

The proper goal of portfolio construction is to generate a portfolio that provides the

highest returns at a given level of risk. A portfolio having this characteristic is known as

an efficient portfolio. The inputs from portfolio analysis can be used to identify the set of

efficient portfolios. From this set of efficient portfolios, the optimal portfolio has to be

selected for investment. Harry Markowitz portfolio theory provides both the conceptual

framework and analytical tools for determining the optimal portfolio in a disciplined and

objective way.

Phase IV: Portfolio Revision

Having constructed the optimal portfolio, the investor has to constantly monitor the

portfolio to ensure that it continues to be optimal. Portfolio revision is as important as

portfolio analysis and selection.

Phase V: Portfolio Evaluation

It is the process, which is concerned with assessing the performance of the portfolio over

a selected period of time in terms of returns and risk. This involves quantitative

measurement of actual return realized and the risk born by the portfolio over the period of

investment. It provides a feedback mechanism for improving the entire portfolio

management process.

MODELS

Some of the financial models used in the process of Valuation, stock selection, and

management of portfolios include:

Maximizing return, given an acceptable level of risk.

Modern portfolio theory—a model proposed by Harry Markowitz among others.

The single-index model of portfolio variance.

Capital asset pricing model.

Arbitrage pricing theory.

The Jensen Index.

The Treynor Index.

The Sharpe Diagonal (or Index) model.

Value at risk model.

BETA:

The Beta coefficient, in terms of finance and investing, is a measure of a stock (or

portfolio)’s volatility in relation to the rest of the market. Beta is calculated for individual

companies using regression analysis.

The beta coefficient is a key parameter in the capital asset pricing model (CAPM). It

measures the part of the asset's statistical variance that cannot be mitigated by the

diversification provided by the portfolio of many risky assets, because it is correlated

with the return of the other assets that are in the portfolio.

For example, if every stock in the New York Stock Exchange was uncorrelated with

every other stock, then every stock would have a Beta of zero, and it would be possible to

create a portfolio that was nearly risk free, simply by diversifying it sufficiently so that

the variations in the individual stocks' prices averaged out. In reality, investments tend to

be correlated, more so within an industry, or when considering a single asset class (such

as equities). This correlated risk, measured by Beta, is what actually creates almost all of

the risk in a diversified portfolio.

The formula for the Beta of an asset within a portfolio is

Where

ra measures the rate of return of the asset,

rp measures the rate of return of the portfolio of which the asset is a part

And Cov (ra, rp) is the covariance between the rates of return.

Formulas:

1.

2.

3.

= Square root ((mean return -expected return)^2/N)

4. Covariance: COV (X, Y)=1/N[(RX-RX)(RY-RY)]

AUTOMOBILE INDUSTRY PROFILE

Driving the most luxurious car has been made possible by the stiff competition in the

automobile industry in India, with overseas players gathering the same momentum as the

domestic participants.

Every other day, we have been hearing about some new launches, some low cost cars -

all customized in a manner such that the common man is not left behind. In 2009, the

automobile industry is expected to see a growth rate of around 9%, with the disclaimer

that the auto industry in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following

Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of

automobiles. Several Indian automobile manufacturers have spread their operations

globally as well, asking for more investments in the Indian automobile sector by the

MNCs.

Potential of the Automobile industry in 2008, Hyundai Motors alone exported 240,000

cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its

India plant by 2011. Similar plans are for General Motors.

Segmentation of market share of automobile industry in India

Passenger Vehicle: 15.96%

Commercial Vehicle: 3.95%

Three wheelers: 3.60%

Two wheelers: 76.49%

Top Automobile Companies in India

Tata Motors

Tata Motors is the largest automobile manufacturing companies in India. Established way

back in 1945 Tata Motors is a multinational automobile company with its headquarters in

Mumbai. Previously known as Telco TATA Engineering and Locomotive Company Tata

Motors belongs to Tata Group. This company manufactures compact medium sized

utility vehicles. Over the last few decades it has stood as the undisputed leader in the

commercial vehicles segment. It is also the third largest producer of passenger cars in

India. This automobile company in India is listed on both the Bombay Stock Exchange

and the New York Stock Exchange. The revenues earned by Tata Morts in 2010

accounted to $20.572 billion. Some of the well known cars manufactured by Tata Motors

are: Tata Indigo, Tata Indica, Tata Sumo Tata Indigo Marina and Tata safari.

Hindustan Motors Limited

Hindustan Motors Limited was founded in the year 1942 by B.M Birla. It is an operative

subsidy of the Birla Technical Services group. This company held the title of the biggest

manufacturer of cars in India before Maruti Udyog. Hindustan Motors was the pioneer in

manufacturing automobiles in India. The company accounted for a sales turnover of Rs

150.66 crore in 2010. Some of the important cars and multi utility vehicles manufactured

by Hindustan Motors Limited include; Mitsubishi Lancer, Trekker, Contessa,

Ambassador, Porter, Pushpak and the Mitsubishi.

Ashoke Leyland

Ashoke Leyland is a leading commercial vehicle manufacturer in India. It was

established in 1948. The company over the years has become synonymous with the

production of trucks, passenger buses and emergency military vehicles. It happens to be

the second largest commercial vehicle producer in India holding a market share of almost

30 percent. The company holds a record for selling almost 60, 000 vehicles and almost

7000 engines per years. Ashok Leyland accounted for consolidated revenues of US$ 1.4

billion in 2009. Some of the popular products by this company are; Panther BS-II Muti-

axle Vehicles, Cheetah Bus-III, Tractors and Ecomet, Lynx BS-II, Diesel and Natural

Gas gensets from 15KVA to 250KVA.

Maruti Suzuki India Limited

Maruti Suzuki India Limited was established in 1981. A part of this company is owned

by Suzuki Motor Corporation of Japan. It is the country's largest passenger car

manufacturing company. Credited for having brought in the automobile revolution in the

country Maruti Suzuki India Limited was known as Maruti Udyog Limited till 2007.

With its headquarters in Delhi this automobile company in India happens to be the largest

producer and market share holder of cars. The company accounted for consolidated

revenues of US$4.8 billion in 2010. Maruti Suzuki India Limited is credited for

manufactures a variety of passenger cars SUVs, and Sedans. Some of Maruti's most

popular cars are: Alto, Gypsy, Omni, Wagon R, Maruti 800, Versa, Zen, Esteem, Baleno

and Swift.

Hyundai Motor India Limited

Hyundai Motor India Limited (HMIL) is owned entirely by Hyundai Motors of South

Korea. Hyundai Motors happens to be the largest car manufacturer in South Korea and

the sixth largest in the world. This automobile company in India is also the largest

passenger cars exporter in India. Established on May 6 1996 this company in a short span

of time has taken the Indian automobile industry by storm. Some of the popular cars

manufactured by this company are; Santro, Getz Prime, Hyundai i10, Hyundai i20

Accent and the Verna and Sonata

Bajaj Auto

Bajaj Auto is another important automobile manufacturing company in India. It is one of

the India's most trusted car manufacturers. It is an operative subsidy of the Bajaj Group.

Bajaj Auto happens to be the largest two and three wheeler manufacturer in India and

also ranks in this field across the globe. This automobile company was established on 2

November 1945. The company was then known as M/s Bachraj Trading Corporation

Private Limited. The company made a modest beginning by importing and then selling

two and three wheelers in India. Today Bajaj Auto has become synonymous with two and

three wheelers in the country. Some of its popular two wheelers are; Pulsar 220DTS and

Kawasaki Ninja 250R.

Indian Automobile Industry SWOT Analysis

Strengths

Domestic Market is large

Government provides monetary assistance for manufacturing units

Reduced Labor cost

Weaknesses

Infrastructural setbacks

Low productivity

Too many taxes levied by government increase the cost of production

Low investments in Research and Development

Opportunities

Reduction in Excise duty

Rural demand is rising

Income level is at a constant increase

Threats

Increasing rates of interest

Too much competition

Rising cost of raw materials

COMPANIES PROFILES

Ashok Leyland Company profile

Ashok Leyland Ltd is an India-based company. The company is engaged in the

manufacturing of commercial vehicles and related components. The company's products

include buses, trucks, engines, defense and special vehicles. From 18 seater to 82 seater

double-decker buses, from 7.5 ton to 49 ton in haulage vehicles, from numerous special

application vehicles to diesel engines for industrial, marine and genset applications,

Ashok Leyland offers a range of products. The company is the flagship of the Hinduja

Group, one of the largest commercial vehicle manufacturers in India. The company is

headquartered in Chennai, India. Their manufacturing footprint is pan-India with two

facilities in Prague (Czech Republic) and Ras Al Khaimah (UAE). Ashok Leyland Ltd

was incorporated in the year 1948 with the name Ashok Motors. The company was set up

in collaboration with Austin Motor Company, England for the assembly of Austin cars.

In The year 1949, they commenced production at the factory situated at Ennore, south of

Madras. Also, they rolled out the first indigenously assembled A40 Austin car. In they

ear 1950, the company made an agreement with Leyland, UK in which Ashok Motors got

sole rights to import, assemble and progressively manufacture Leyland trucks for seven

years. In the year 1954, the Government approved the progressive manufacture of

Leyland commercial vehicles and a license was granted for the manufacture of 1,000

Comets a year. In the year 1955, the company name was changed to Ashok Leyland Ltd

with equity participation from Leyland Motors Ltd. In the year 1967, the company

launched 'Titan', the first Indian-made double decker with 50% indigenous components.

In the year 1970, the company designed and delivered 1,000 numbers of the 6x4 'Hippo'

Tipper to the Indian Army based on their specific requirements.

In the year 1972, the license was granted to manufacture 10,000 vehicles a year. In the

year 1976, the company introduced the 'Viking', the first ever bus with an alternator and a

unique front overhang that facilitated front entry. In the year 1978, they introduced

India's first rear-engine bus, 'Cheetah'. In the year 1980, the company inaugurated their

second plant, Hosur I in Hosur. They launched India's first 13-ton truck, 'Tusker' with a

125 hp engine. Also, they launched country's first multi-axle truck, 'Taurus'. In the year

1982, they introduced India's first vestibule or the articulated bus. They inaugurated two

new manufacturing facilities at Bhandara (Maharashtra) and Alwar (Rajasthan) in March

1982 and August 1982 respectively. In the year 1993, the company received ISO 9002

certification. In the year 1995, they received ISO 9001 Certification. Aslo, they set a

driver training facility at Namakkal.

In the year 1996, the company set up their second plant at Hosur. In the year 1997, they

launched the Stallion, an all-terrain logistic vehicle. Also, they launched India's first

CNG-powered bus. In the year 2002, the company developed the country's first Hybrid

Electric Vehicle and showcased at Auto Expo 2002. In the year 2006, the company

acquired the truck business of Czech Republic-based AVIA. They entered into an

agreement with Ras Al Khaimah Investment Authority For the setting up of a bus

assembly plant in the UAE. In the year 2007, the company entered into a joint venture

with Nissan Motor Company, Japan for manufacture and marketing of Light Commercial

Vehicles. They entered into a joint venture with Continental AG, Germany for the

development of automotive infronics. Also, they entered into a joint venture with

Alteams Group, Finland for the production of HPDC (High Pressure Die Casting)

extruded aluminum components. In the year 2008, the company entered into a joint

venture with John Deere, USA for the manufacture of construction equipment products.

They established Albonair, GmbH for development of vehicle emission treatment /

control systems and products.

In March 2010, the company inaugurated a plant at Pantnagar in Uttarakhand. This is the

company's modern, technologically world-class and largest plant with a capacity to touch

75,000 vehicles. They introduced the new, future-ready U-Truck platform with the

promise of a holistically superior level of trucking. The company bought 26% stake in

Optare plc, a well-known bus maker in the UK. In order to cater to the emerging markets

in China and India, Albonair (India) Pvt Ltd was incorporated during the year. During

they ear 2010-11, the company acquired 26% in the equity share capital of Optare plc,

U.K., a leading bus manufacturer in U.K., which will benefit the company in their

endeavour to address new markets, and to accelerate technology development. In

December 16, 2010, the company inaugurated the state-of-the-art factory built as a

venture between the company and Ras Al Khaimah Investment Authority (RAKIA), at

Ras Al Khaimah. This facility will cater to the needs of the African/Middle East markets

and also facilitate launching of AVIA range of trucks manufactured by Avia Ashok

Leyland Motors s.r.o. to these markets.

In the year 2011, the company entered into the LCV segment with the launch of Dost. In

September 2011, the company entered into into the Tanzanian market by bagging an

order for 723 trucks, buses and special application vehicles. In October 2011, the

company entered into the construction equipment space with the launch of a new brand,

LEYLAND DEERE. In November 2011, the company received the contact to supply 700

cluster CNG buses to Delhi. In the year 2012, the company launched Jan Bus, world's

first single step entry, front engine, fully flat floor bus. They introduced U-3723, India's

first 37-tonne haulage truck with the highest payload of up to 27 tonnes. In January 2012,

the company increased their stake in Optare plc to 75.1%.

Bajaj Auto Ltd Company profile

Bajaj Auto Ltd is one of the leading two & three wheeler manufacturers in India. The

company is well known for their R&D, product development, process engineering and

low-cost manufacturing skills. The company is the largest exported of two and three-

wheelers in the country with exports forming 18% of its total sales. The company has two

subsidiaries, namely Bajaj Auto International Holdings BV and PT Bajaj Indonesia. The

company was incorporated on April 30, 2007 as a wholly owned subsidiary of erstwhile

Bajaj Auto Ltd (the holding company) with the name Bajaj Investment & Holding Ltd.

The company received the certificate of commencement of business on May 7, 2007. The

holding company operated in the segments, such as automotive, insurance and

investment, and others. Considering the growth opportunities in the auto, wind-energy,

insurance and finance sectors, and the holding company de-merged their activities into

three separate entities, each of which can focus on their core businesses and strengthen

competencies. The auto business of the holding company along with all assets and

liabilities pertaining thereto including investments in PT Bajaj Auto Indonesia and in a

few vendor companies transferred to Bajaj Investment & Holding Ltd. In addition a total

of Rs 15,000 million in cash and cash equivalents also transferred to Bajaj Investment &

Holding Ltd. As the part of the scheme, Bajaj Holdings and Investment Ltd were

renamed as Bajaj Auto Ltd. The appointed date of this de-merger was closing hours of

business on March 31, 2007.

In April 9, 2007, the company inaugurated their green field plant at Pantnagar in

Uttarakhand. In the first year of operations, the plant produced over 275,000 vehicles.

The company's vehicle assembly plant at Akurdi was shut down from September 3, 2007

due to higher cost of production. In November 2007, Bajaj Auto International Holdings

BV, a wholly owned subsidiary company acquired 14.51% equity stake in KTM Power

Sports AG of Austria, Europe's second largest sport motorcycle manufacturer for Rs 345

crore. During the year 2007-08, the company launched XCD 125 DTS-Si and the Three-

wheeler Direct Injected auto rickshaw. The Chakan plant completed the cumulative

production of over 2 million Pulsar. During the year 2009-10, the company expanded the

production capacity of Motorised Two & Three Wheelers by 300,000 Nos to 4,260,000

Nos. The company launched Pulsar 220 F, Pulsar 180 UG, Pulsar 150 UG, Pulsar 135 LS

and Discover DTS-si in the market. During the year 2010-11, the company expanded the

production capacity of Motorised Two & Three Wheelers by 780,000 Nos to 5,040,000

Nos. The company launched Avenger 220 DTS-i, KTM Duke 125, Discover 150 and

Discover 125 in the market. The company plans to maintain the capacity of two and

three-wheelers at the current level of 5,040,000 numbers per annum during the year

ending 31 March 2012. The 4 wheel vehicle development work is under progress and

commercial launch of the first product from this platform is scheduled for 2012.

TVS Motor Company Profile

TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-

wheeler manufacturer in India. The company manufactures a wide range of two-wheelers

from mopeds to racing inspired motorcycles. The company is having their manufacturing

plants at Hosur in Tamilnadu, Mysore in Karnataka and Solan in Himachal Pradesh. They

are also having one unit located at Indonesia. Their subsidiaries include Sundaram Auto

Components Ltd, TVS Motor Company (Europe) BV, TVS Motor (Singapore) Pte Ltd,

PT TVS Motor Company, Indonesia, TVS Energy Ltd and TVS Housing Ltd. TVS Motor

Company Ltd is a part of Sundaram Clayton group in TVS group of companies. In the

year 1979, Sundaram-Clayton Ltd started Moped Division at Hosur to manufacture TVS

50 mopeds. In the year 1982, the company entered into a technical know-how and

assistance agreement with Suzuki Motor Co Ltd of Japan and in the year 1985, they

incorporated a new company Lakshmi Auto Components Pvt Ltd for the manufacture of

critical engines and transmission parts. In the year 1986, the company acquired the assets

of the moped division from Sundaram Clayton Ltd. Also, the name of the company was

changed from Indo Suzuki Motorcycles Ltd to TVS Suzuki Ltd.

In the year 1992, they launched two modes of motor cycles namely, Samurai and Shogun

and in the year 1993, they launched TVS Scooty. During 1999-2000, TVS Suzuki Ltd

was amalgamated with Sundaram Auto Engineers Ltd, an unlisted group company which

was incorporated in the year 1992. As per the scheme, all the assets and liabilities of

erstwhile TVS Suzuki Ltd together with all obligations and contingent liabilities were

vested in Sundaram Auto Engineers (India) Ltd with effect from April 22, 1999. This

merged entity was later renamed TVS Suzuki Ltd. The TVS group and Suzuki Motor

Corporation parted ways from their 15-year-old joint venture on September 27, 2001. The

shares held by the Suzuki Motor Corporation were acquired by Anusha Investments Ltd,

a wholly owned subsidiary of Sundaram-Clayton Ltd for Rs 9 crore. Thus, the company

became a subsidiary of Sundaram-Clayton Ltd with effect from November 15, 2001.

Since, Suzuki Motor Corporation ceased to be a shareholder of the company, the

company cannot use the word 'Suzuki' as the part of their name and hence the name of the

company was changed to TVS Motor Company Ltd. During the year 2002-03, the new

stylish TVS Scooty Pep and the upgraded version of Fiero was launched in the market. In

April 1, 2003, the subsidiary company namely, Lakshmi Auto Components Ltd acquired

the entire paid up capital of Sundaram Auto Components Ltd. Consequently, Sundaram

Auto Components Ltd became a subsidiary company with effect from April 1, 2003. In

October 2003, the company entered into a scheme of arrangement with Lakshmi Auto

Components Ltd and Sundaram Auto Components Ltd. As per the scheme, all the assets

and liabilities of the rubber and plastic businesses of Lakshmi Auto Components Ltd

were transferred to Sundaram Auto Components Ltd on slump sale basis on April 1, 2003

for a consideration of 12.25 crores. The remaining business of Lakshmi Auto

Components Ltd, namely engine components division together with their investments in

other bodies corporate was transferred to the company with effect from April 2, 2003.

During the year 2003-04, the company launched new products such as TVS Centra, New

Victor GL, Fiero F2 & Fx and Scooty Pep.

During the year 2004-05, they launched new products such as TVS Star, New Victor

GLX, New Victor GX and Scooty Pep 'Splash' series. During the year 2005-06, the

company entered into a joint venture with Columbian party for exploring opportunities in

Columbian market with an equity investment of Rs 5 million. The company incorporated

TVS Motor Company (Europe) B V in Netherlands as a wholly owned subsidiary of the

company with an investment of Rs 91.63 crore. During the year, TVS Motor Singapore

Pte Ltd, Singapore became a wholly owned subsidiary of the company with an

investment of Rs 30.51 crore. PT TVS Motor Company Indonesia was incorporated in

Indonesia to manufacture motorcycles and parts with an investment of USD 27.60

million and became subsidiary of the company in view of it being the subsidiary of TVS

Motor Company (Europe) B V, which holds 75% of the share capital. The remaining

25% was held by TVS Motor Singapore Pte Ltd. PT TVS Motor Company Indonesia has

acquired lands in Indonesia for setting up a facility for manufacturing two wheelers.

During the year 2006-07, the company has established a new plant in Himachal Pradesh

with an annual production capacity of 4,00,000 units scalable to 6,00,000 units. PT TVS

Motor Company Indonesia, a subsidiary of the company, established a manufacturing

facility at Karawang, near Jakarta in Indonesia with production capacity of 3 lakh

vehicles per annum. During the year, the company launched multiple new products and

variants such as, StaR City ES, StaR Sport, Scooty Teenz and 99 Colors on Scooty PEP.

During the year 2007-08, the company commenced commercial production from its

Nalagarh Plant located in Himachal Pradesh. They commenced their commercial

production from their state-of-the art plant located at Karawang in Indonesia and

launched TVS Neo, which is exclusively developed for the Indonesian market. During

the year, the company launched various new products and variants such as TVS Flame,

Apache RTR, StaR Sport, StaR City 110 cc, Scooty TeenZ Electric, TVS Tru4 Oil. In

March 2008, the company launched their three wheeler, TVS King in two variants,

namely two stroke petrol and two stroke LPG. The company won the Team Tech 2007

Award of Excellence for Integrated use of Advanced Computer Aided Engineering

Technologies in product development. They also won the prestigious SAP ACE 2007

Awards for Customer Excellence in the Most Innovative Netweaver Category for several

SAP implementations that are put in place. In June 2008, the company entered into a

contract manufacturing arrangement with Mahabharat Motors Manufacturing Pvt Ltd

whereby TVS motor cycles will be manufactured at the latter's two-wheeler

manufacturing facility that is located on the outskirts of Kolkata. TVS would help

Mahabharat Motors to set up the factory and provides engineering support to them. The

production would commence from June 2009.

During the year 2008-09, the company launched Scooty Streak, a tough and trendy

variant of Scooty Pep+ and Apache RTR RD, premium segment motorcycle. Also, they

launched their three-wheeler, TVS King in six states. In June 2009, T V Sundram Iyengar

& Sons Ltd and their subsidiaries acquired the holding of foreign collaborators, Clayton

Dewandre Holdings Ltd in Sundaram-Clayton Ltd. Thus, Sundaram-Clayton Ltd became

a subsidiary of T V Sundram Iyengar & Sons Ltd. Consequent to this acquisition, the

company also became the subsidiary of TVS with effect from June 3, 2009. During the

year 2009-10, the company launched TVS JIVE and TVS Wego in the market. They also

launched a four stroke three-wheeler with superior features. They commenced export of

TVS Apache to Brazil. Also, they developed a pan India presence in three-wheelers.

In December 2009, the company acquired the entire shareholding of TVS Energy Ltd.

Thus, TVS Energy became a wholly owned subsidiary of the company. In June 2010,

they acquired the entire paid up capital of TVS Housing Ltd and thus, TVS Housing Ltd

became a wholly owned subsidiary of the company. In October 2010, the company won

the SAP ACE Award for Consumer Excellence 2010 in 'Best Run Award in Automotive'

category. They also won the Silver EDGE award from Information Week, a leading IT

magazine for in house design and development of Data Acquisition System for improving

shop floor productivity. Information Week annually recognize enterprises driving growth

and excellence through IT. In November 2010, the company launched TVS TRU4

Premium, a semi-synthetic 4T Engine Oil. In February 2011, Indian Bank signed an MoU

with the company for financing three wheelers manufactured by the company. In March

2011, the company introduced ABS (Anti-lock Braking System) in their premium

segment motorcycle TVS Apache RTR 180, giving the bike formidable stopping power

and superior braking control that compliments its high performance capability.

ABOUT MAHINDRA & MAHINDRA:

Mahindra & Mahindra Ltd is an India-based company. The company operates in nine

segments: automotive segment comprises of sales of automobiles, spare parts and related

services; farm equipment segment comprises of sales of tractors, spare parts and related

services; information technology (IT) services comprises of services rendered for IT and

telecom; financial services comprise of services relating to financing, leasing and hire

purchase of automobiles and tractors; steel trading and processing comprises of trading

and processing of steel; infrastructure comprise of operating of commercial complexes,

project management and development; hospitality segment comprises of sale of

timeshare; Systech segment comprises of automotive components and other related

products and services, and its others segment comprise of logistics, after-market, two

wheelers and investment.

Mahindra & Mahindra Ltd was incorporated on October 2, 1945 with the name Mahindra

& Mohammed Ltd. The company was renamed as Mahindra & Mahindra Ltd in the year

1948. The steel trading business was commenced in association with suppliers in UK. In

the year 1950, the company commenced the first business with Mitsubishi Corporation

and 5000 tons of wagon building plates from Yawata Iron & Steel were supplied. In the

year 1953 Otis Elevator Company (India) was established. A joint venture was made with

Rubery Owen & Company Limited, UK and established a company under the name of

Mahindra Owen. The company's Machine Tools Division was commenced its operations

in the year 1958. In the year 1960, Mahindra Sintered Products Limited was established

based on a joint venture with Bir Field (GKN Group, UK). In the year 1962, Mahindra

Ugine Steel Company was established as a joint venture between the company and Ugine

Kuhlmann, France.

In the year 1963, International Tractor Company of India was established as a joint

venture with International Harvester Company, USA. In the year 1965, the company

entered into light commercial vehicles segment. They established Vickers Sperry of India

Ltd, a joint venture with Sperry Rand Corporation, USA. In the year 1969, the company

entered the world market with export of utility vehicles and spare parts.

In the year 1977, International Tractor Company of India merged with the company and

became its Tractor Division. In the year 1982, Mahindra brand of tractors were launched

and also became the market leader in the Indian tractor market. In the year 1991, the

company introduced commander range of vehicles in the market. Also, they established

Mahindra Financial Services Ltd as a wholesale fund provider.

In the year 1995, Mahindra Holding & Finance Limited became a subsidiary of the

company to carry out business as an investment company. The company made a technical

collaboration with Mitsubishi / Samcor to manufacture the Mitsubishi L300. In the year

1996, Mahindra Ford India Limited was established, a joint venture with Ford Motor

Company, USA, to manufacture passenger cars. In the year 1999, the company acquired

a major stake in Gujarat Tractors and renamed it Mahindra Gujarat Tractors Ltd. Also,

Mahindra & Mahindra Financial Services Ltd became a subsidiary of the company.

In the year 2000, the company set up their first satellite tractor plant at Rudrapur. They

launched a new age tractor, Mahindra Arjun 605 DI (60 HP) in the market. Also, they

launched Bolero GLX (a utility vehicle) launched in response to the needs of urban

consumers. In the year 2001, the company launched Champion, a 3-wheeler diesel

vehicle. They launched Mahindra MaXX, a multi-utility vehicle positioned with the

caption 'Maximum Space, Maximum Comfort'. They made a tie up with Renault for

Petrol Engines.

In the year 2002, the company launched Scorpio, a new generation, world-class sports

utility vehicle. In the year 2003, they launched Invader, a sporty open top vehicle and

MaXX Pik Up. They set up second tractor assembly plant in USA. They ventured into

Industrial engine business. Also, they launched India's first Turbo tractor, Mahindra

Sarpanch 595 DI Super Turbo.

In the year 2004, the company launched Bolero and Scorpio in Latin American, Middle

East and South African markets. They signed an MoU to enter into joint venture with

Jiangling Motor Company Group (JMCG) of China, to acquire tractor manufacturing

assets from Jiangling Tractor Company, a subsidiary of Jiangling Motor Company

Group.

In the year 2005, the company acquired 51% stake in SAR Transmission Private

Limited, a company engaged in manufacture of gears and transmission shafts. The

company became the became the first Indian auto manufacturer to launch the Common

Rail Diesel Engine (CRDe), offering it in the Scorpio. They acquired 80% stake in the

joint venture with Jiangling Motors i.e. in Mahindra (China) Tractor Company. They

established Mahindra Renault Ltd, a joint venture with Renault to manufacture and

market Logan, a mid-sized sedan, in India. Also, they established Mahindra International

Ltd, a joint venture with International Truck and Engine Corporation to manufacture

trucks & buses in India.

In the year 2006, the company acquired the Stokes Group of UK, the largest automotive

forgings company in the UK. They launched the Scorpio V-series.

In July 2007, the company launched the Mahindra Pik-Up (double cab) in Chile. In

November 1, 2007, a wholly owned affiliate of Navistar International Corporation signed

a joint venture agreement with the company to produce diesel engines for medium and

heavy commercial trucks and buses in India.

In the year 2008, the company introduced FuelSmart system in Bolero and Scorpio

SUVs. They entered into JV with TMI Pacific in Australia. In the year 2009, the

company launched Xylo. Also, they launched New, Mighty Muscular Scorpio in the

market. During the year 2009-10, the company hived off Mahindra Defence Systems

Division into a wholly owned subsidiary, Mahindra Defence Land Systems Pvt Ltd (now

rechristened as Defence Land Systems India Pvt Ltd) with effect from July 1, 2009. Also,

the company signed a joint venture agreement on November 30, 2009 with BAE Systems

Plc. to form a 74:26 Joint Venture for defence land systems products. The company

divested 46.66% of the equity share capital in Mahindra Gears & Transmissions Pvt Ltd

in favour of ICICI Venture Fund. As per the scheme of arrangement between the

company and Mahindra Shubhlabh Services Ltd, the Agri Inputs Business of along with

other common assets and liabilities of MSSL was de-merged and transferred into the

company.

During the year 2010-11, the company acquired SYMC, a premier manufacturer of

sports utility vehicles and recreational vehicles in Korea. Also, the company acquired

38% of the paid-up equity share capital through a Preferential Allotment in EPC

Industrie' Ltd (EPC), a company listed on the Bombay Stock Exchange Limited. In

February, 2010, the company had launched Maxximo in a very competitive small 4-

wheeler cargo segment (0.75 Ton).

In June 2011, Bristlecone International AG became a subsidiary of the company. Today,

the company's operations span 18 key industries that form the foundation of every

modern economy: aerospace, aftermarket, agribusiness, automotive, components,

construction equipment, consulting services, defense, energy, farm equipment, finance

and insurance, industrial equipment, information technology, leisure and hospitality,

logistics, real estate, retail, and two wheelers.

Tata Motors Ltd Company Profile

Tata Motors Ltd is India's largest automobile company. The company is the leader in

commercial vehicles in each segment, and among the top three in passenger vehicles with

winning products in the compact, midsize car and utility vehicle segments. They are the

world's fourth largest truck manufacturer, and the world's second largest bus

manufacturer. The company is engaged in the development, designing, manufacturing,

assembling and sale of vehicles, including financing thereof, as well as sale of related

parts and accessories. They manufacture commercial vehicle, three passenger vehicle,

truck and bus. They have a portfolio of automotive products, ranging from sub-1 ton to

49 ton gross vehicle weight (GVW), trucks (including pickup trucks) and from small,

medium, and large buses and coaches to passenger cars, including the car, the Tata Nano.

The company's segments include automotive, and others, which include information

technology (IT) services, construction equipment manufacturing, machine tools and

factory automation solutions, high-precision tooling and plastic and electronic

components for certain applications, and investment business. The company's passenger

cars include the Indica, the Indica Vista, the Indigo and the Indigo Marina. Jaguar

produces four car lines: XK, XF, XJ and X-Type. They manufacture a number of utility

vehicles (UV), including the Sumo, and the sports utility vehicle (SUV), Tata Safari.

Also, they manufacture a variety of light commercial vehicles (LCVs), including pickup

trucks, trucks and buses with GVW of between 0.7 ton and 7.5 tons. This also includes

the Ace, a mini-truck with a 0.7 ton payload, the Magic, a passenger variant for

commercial transportation and the Winger. They also manufacture a variety of medium

and heavy commercial vehicles (M&HCVs), which include trucks, buses, dumpers and

multi-axled vehicles with GVW of between 9 tons to 49 tons.

The company's manufacturing plants are situated at Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka)

and Sanand (Gujarat). Through their subsidiaries and associate companies, the company

has operations in the UK, South Korea, Thailand and Spain. Tata Motors Ltd was

incorporated in the year 1945 with the name Tata Engineering and Locomotive Co Ltd

for manufacturing locomotives and other engineering products. In the year 1948, the

company introduced steam road roller in collaboration with Marshall Sons (UK). In the

year 1954, they made collaboration with Daimler Benz AG, West Germany for

manufacturing medium commercial vehicles. In the year 1959, they set up a Research

and Development Centre at Jamshedpur.

In the year 1961, they started to export their products and the fist truck being shipped to

Sri Lanka. In the year 1966, the company set up the Engineering Research Centre at Pune

to provide impetus to automobile Research and Development. In the year 1977, they

manufactured first commercial vehicle in Pune. In the year 1983, they commenced

manufacturing of Heavy Commercial Vehicle. In the year 1985, the company produced

first hydraulic excavator in collaboration with Hitachi. In the year 1986, they produced

the indigenously designed light commercial vehicle Tata 407 followed by 608. In the year

1989, they introduced third LCV model, Tatamobile 206. In the year 1991, the company

launched first indigenous passenger car, Tata Sierra and in the next year, they launched

Tata Estate. In the year 1993, the company signed a joint venture agreement with

Cummins Engine Co. Inc. for the manufacture of high horsepower and emission friendly

diesel engines. In the year 1994, the company launched Tata Sumo and LPT 709. During

the year, the company signed a joint venture agreement with Daimler - Benz / Mercedes -

Benz for manufacture of Mercedes Benz passenger cars in India. Also, they singed a joint

venture agreement with Tata Holset Ltd, UK for manufacturing turbochargers to be used

on Cummins engines. In the year 1995, they launched Mercedes Benz car E220 and in

the next year, they launched Tata Sumo deluxe.

In the year 1997, the company launched Tata Sierra Turbo and in the next year, they

launched Tata Safari and Indica in the market. In the year 2000, they launched Indica

2000 and CNG buses. In the year 2001, they launched Indica V2, CNG Indica and Tata

Safari EX. In the year 2002, the company signed a product agreement with MG Rover of

the UK. Also, they launched Petrol version of Indica V2, EX series in Commercial

vehicles, Tata Sumo+ Series and Tata Indigo. In the year 2003, they launched Tata Safari

Limited Edition CityRover, 135 PS Tata Safari EXi Petrol and Tata SFC 407 EX Turbo

in the market. In July 29, 2003, the name of the company was changed from Tata

Engineering Co Ltd to Tata Motors Ltd. In the year 2004, the company acquired Daewoo

Commercial Vehicle Company and renamed it as Tata Daewoo Commercial Vehicle Co.

Ltd. This company launched the heavy duty truck 'NOVUS' in Korea. Also, the company

launched Tata Indica V2, Tata LPT 909 EX, Sumo Victa and Indigo Marina during the

year. In the year 2005, the company acquired 21% stake in Hispano Carrocera SA,

Spanish bus manufacturing Company. The company launched branded buses and

coaches, namely Starbus and Globus in the market. Also, they launched Tata Ace, Indigo

SX series, Indica V2 Turbo Diesel, Tata TL 4X4 and Tata Novus. During the year, the

company inaugurated a new factory at Jamshedpur for Novus. Also, they unveiled Tata

Xover at the 75th Geneva Motor Show. In the year 2006, the company made a joint

venture with Marcopolo, Brazil for manufacturing fully built buses & coaches for India &

markets abroad. They launched Indica V2 Xeta and new Indigo range. Also, they

unveiled new long wheel base premium Indigo & X-over concept at Auto Expo 2006. In

the year 2007, the company and Thonburi Automotive Assembly Plant Co. (Thonburi)

formed a joint venture company in Thailand to manufacture, assemble and market pickup

trucks. They inaugurated Tata-Fiat plant at Ranjangaon. They launched long wheel base

Indigo XL, Tata Spacio, Magic, Winger, Sumo Victa Turbo DI, Indica V2 Turbo with

dual airbags & ABS and Safari DICOR 2.2 VTT range.

During the year 2007-08, the company unveiled the TATA Nano, the world's least

expensive car at the Auto Expo 2008 in New Delhi. Subsequently, the car was also

unveiled at the Geneva Motor Show and received international acclaim. They

commenced production of TATA Ace from their manufacturing facility at Uttarakhand

during the year. During the year, the company developed new products for the M&HCV

passenger carrier sub-segment and displayed in the Auto Expo 2008, a 28 seater bus and

an air conditioned low floor bus developed through their joint venture - Tata Marcopolo

Motors Ltd. In the LCV segment, the company introduced two new products - Magic and

Winger, which hold a strong potential to shape the future of commercial passenger

transportation in India. Further, the company unveiled the 1 Ton and CNG variant of

Ace, Cargo Panel van, Xenon XT - a lifestyle pickup truck and Winger Executive office

concept vehicle in the Auto Expo 2008. They showcased their new range of tactical and

armoured vehicles for military and para-military forces in the Defence Expo 2008. These

include Tata Light Specialist Vehicle, Light Armoured Troop Carrier, Tata 8x8 HMV and

the armoured Tata Safari.

During the year 2007-08, the company signed an agreement with Flat Group automobiles

SpA Italy and Flat India Automobiles Pvt Ltd (FIAPL) for establishment of joint venture

to manufacture passenger cars engines and transmissions at Ranjangaon in India. They

sold 15% stake each, in their subsidiary companies, HV Axles Ltd (HVAL) and HV

Transmissions Ltd (HVTL). In March 2008, the Company introduced Tata Xenon- 1 Ton

pickup truck in Thailand through its subsidiary Tata Motors (Thailand) Ltd. In June 2,

2008, the company acquired the businesses of Jaguar and Land Rover (a part of Premier

Automotive Group of Ford Motor Co.) for USD 2.3 billion. Jaguar and Land Rover are in

the business of development, manufacture and sale of high end luxury cars and SUVs

respectively. The acquisition includes the ownership of three major manufacturing plants,

two advanced design centres in UK a worldwide sales network, Intellectual Property

Rights (including perpetual royalty free licenses) and Brands and Trade marks.

During the year 2008-09, the company partially divested their stake in Tata AutoComp

Systems Ltd an associate company, from 50% to 26%. Also, they sold their investment in

Tata Tele Services Ltd. During the year, the company launched 28 new commercial

vehicles. Among the new products launched during the year were LPT 3118 - a truck

with lift axle, CNG variants of the Ace, Magic and Xenon, new range of LCV buses

manufactured by Tata Marcopolo Motors and the ICV 909 bus. The company also

completed the execution of their first order of 650 low floor buses to Delhi Transport

Corporation (DTC). They have also bagged a second order of 1625 similar buses from

DTC to be executed in financial year 2009-10, the total order value of which is over Rs

2200 crore. In May 2009, they also unveiled the World Truck range of their next

generation heavy trucks. During the year 2009-10, the company acquired 79% shares in

Hispano Carrocera, S A by way of exercise of the existing call option, through mutual

agreement with the other share-holder, Investalia S. A., Spain, for a consideration of Euro

2 million (Rs 1371 lakh). Consequently, Hispano Carrocera, S A has become a 100%

subsidiary of the company. Also, the company sold 20% stake in Telco Construction

Equipment Company Ltd (Telcon) to Hitachi Construction Machinery Co Ltd. The

company now holds 39.75% stake in Telcon. During the year, the company launched the

new heavy truck range Prima. Also, they launched the new range of buses (based on the

Prima platform with bodies being made by Tata Marcopolo displayed at the Delhi Auto

Expo in January 2010). In small commercial vehicles, they launched the Ace EX and

Super Ace. In June 2010, the company inaugurated the factory for the Nano mini car at

Sanand, in the western state of Gujarat. The factory is having an initial capacity of

producing 250,000 cars per year.

During the year 2010-11, the company launched the Aria, a premium crossover with

high-end features such as 4x4, Torque on Demand, ESP, six airbags. They launched BS

IV compliant variants of the Indica and the Indigo CS, the Indica eV2 and Indigo eCS

with segment leading fuel efficiencies. These vehicles are powered by the Companys

1.4L CRAIL engine. The company Elan, a high end variant of the Indigo Manza sedan.

They launched Venture, a Multi Purpose Vehicle (MPV) on the Ace platform. The

company expanded the Prima range launched during the previous year with the

introduction of the Prima Construck range of tippers in the market. Also, the company

launched the all new Jaguar XJ, the new 4.4 V8 diesel Range Rover and the new 2.2

diesel Land Rover. In September 2010, the company acquired 80% stake in Trilix Srl.,

Turin (Italy), a design and engineering company. The company increased their

shareholdingin Tata Precision Industries Pte. Ltd from 49.99% to 78.39% by subscribing

to an additional 28.4% share of Tata Precision Industries Pte Ltd, Singapore on February

15, 2011. Tata Precision Industries Pte Ltd holds 100% shares of Tata Engineering

Services Pte Ltd, hence Tata Engineering Services Pte Ltd also became a subsidiary.

Maruti Suzuki India Ltd Company Profile

Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car

company, accounting for over 50 per cent of the domestic car market. The company

offers full range of cars from entry level Maruti 800 & Alto to stylish hatchback Ritz, A-

star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand

Vitara. The company is a subsidiary of Suzuki Motor Corporation of Japan. The company

is engaged in the business of manufacturing, purchase and sale of motor vehicles and

spare parts (automobiles). The other activities of the company include facilitation of pre-

owned car sales, fleet management and car financing. They have four plants, three

located at Palam Gurgaon Road, Gurgaon, Haryana and one located at Manesar Industrial

Town, Gurgaon, Haryana. The company has seven subsidiary companies, namely Maruti

Insurance Business Agency Ltd, Maruti Insurance Distribution Services Ltd, Maruti

Insurance Agency Solutions Ltd, Maruti Insurance Agency Network Ltd, Maruti

Insurance Agency Services Ltd, Maruti Insurance Agency Logistics Ltd and True Value

Solutions Ltd. The first six subsidiaries are engaged in the business of selling motor

insurance policies to owners of Maruti Suzuki vehicles and seventh subsidiary, True

Value Solutions Ltd is engaged in the business of sale of certified pre-owned cars under

the brand 'Maruti True Value'. Maruti Suzuki India Ltd was incorporated on February 24,

1981 with the name Maruti Udyog Ltd.

The company was formed as a government company, with Suzuki as a minor partner, to

make a people's car for middle class India. Over the years, the company's product range

has widened, ownership has changed hands and the customer has evolved. In October 2,

1982, the company signed the license and joint venture agreement with Suzuki Motor

Corporation, Japan. In the year 1983, the company started their productions and launched

Maruti 800. In the year 1984, they introduced Maruti Omni and during the next year, they

launched Maruti Gypsy in the market. In the year 1987, the company forayed into the

foreign market by exporting first lot of 500 cars to Hungary. In the year 1990, the

company launched India's first three-box car, Sedan. In the year 1992, Suzuki Motor

Corporation, Japan increased their stake in the company to 50%. In the year 1993, they

introduced the Maruti Zen and in the next year they launched Maruti Esteem in the

market. In the year 1995, the company commenced their second plant. In the year 1997,

they started Maruti Service Master as model workshop in India to look after sales

services. In the year 1999, the third plant with new press, paint and assembly shops

became operational.

In the year 2000, the company launched Maruti Alto in the market. In the year 2002,

Suzuki Motor Corporation increased their stake in the company to 54.2%. In January

2002, the company introduced 10 finance companies (8 + 2JVs) in Mumbai. Also, they

found one new business segment, Maruti True Value for sales, purchase and trade of pre-

owned cars in India. In the year 2005, the company launched the first world strategic

model from Suzuki Motor Corporation 'the SWIFT' in India. In the year 2006, they

launched WaganR Duo with LPG and also the New Zen Estillo. During the year 2006-07,

the company commenced operations in the new car plant and the diesel engine facility at

Manesar, Haryana. In November 2006, they inaugurated a new institute of Driving

Training and Research (IDTR), which was set up as a collaborative project with Delhi

Government at Sarai Kale Khan in South Delhi.

During the year 2007-08, the company signed an agreement with the Adani group for

exporting 200,000 units annually through the Mundra port in Gujarat. They launched

Swift Diesel and SX4- Luxury Sedan with Tag line 'MEN ARE BACK' during the year.

In July 2007, the company launched the new Grand Vitara, a stylish, muscular and 5-

seater in the MUV segment. The company changed their name from Maruti Udyog Ltd to

Maruti Suzuki India Ltd with effect from September 17, 2007. During the year, the

company entered into a joint venture agreement with Magneti Marelli Powertrain SpA

and formed Magneti Marelli Powertrain India Pvt Ltd for manufacturing Electric Control

Units. Also they entered into another joint venture agreement with Futaba Industrial Co

Ltd and formed FMI Automotive Components Ltd for manufacturing Exhaust Systems

Components. During the year, the company made pact with Shriram City Union Finance

Ltd, a part of Shriram Group, Chennai, to offer easy, transparent and hassle-free car

finance to their customers, particularly in semi urban and rural markets. The agreement is

a joint initiative of the two companies for providing competitive car finance to people in

Tier-II and Tier-III cities across the country. During the year 2008-09, the company

launched a new A2 segment car, branded the A-star in India and in Europe as the new

Alto. They raised their production capacity to a landmark 1 million cars. In June 2008,

the company launched Maruti 800 Duo, which is a dual fuel (LPG-cum- petrol) model

car. In March 2009, the company launched A-star or Suzuki Alto at Geneva Motor Show

sales begin at EU. In April 2009, the company revealed new Ritz K12M engine at

Gurgaon plant.

During the year 2009-10, the company raised the capacity of their next generation K-

series engine plant to more than 500,000 units per annum. They started work on an

additional plant of 250,000 cars per annum capacity at Manesar. The company launched

their fifth world strategic model, the Ritz. They also came out with the spacious multi

purpose van, Eeco and the all new WagonR with a K-series engine. During the year

2010-11, the company launched refreshed variants of WagonR and Alto with the new K-

series engines. SX4 was offered with a Super Turbo Diesel engine. The Company

launched the Suzuki Kizashi, India's first sports luxury sedan. It sports a 2.4 litre engine

and is endowed with best-in-class features. The Company developed in-house i-GPI

(Integrated Gas Port Injection) Technology and launched factory-fitted CNG variants for

five of its models: Alto, WagonR, Eeco, Estilo and SX4. Apart from launching new

products, the company added 131 new sales outlets to reach 933 outlets in 668 cities and

increased its service reach to 1,395 cities with 2,946 outlets. The company's network is

now servicing about 1.2 million vehicles every month. The company plans to establish

Plant C at Manesar, which will have an installed capacity of 250,000 units per annum.

The plant is likely to be ready by end of fiscal 2012/ early 2013. The company plans to

set up Rs 1700 crore diesel engine plant at Gurgaon. They are going to double the diesel

engine capacity at their Gurgaon facility to six lakh units by 2014. Of this, Rs 950 crore

is being invested for the first phase of 1.5 diesel engines by mid-2013.

DATA ANALYSIS AND INTERPRETATION

TATA MOTORS LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of  Shares Trades Total TurnoverJan-11 1,321.00 1,334.30 1,113.00 1,148.25 95,07,436 2,88,245 11,46,05,68,259Feb-11 1,153.00 1,258.00 1,043.20 1,081.80 1,47,83,186 4,48,506 16,82,11,60,141Mar-11 1,097.00 1,260.00 1,097.00 1,247.50 89,90,876 2,78,880 10,45,37,61,078Apr-11 1,244.00 1,301.90 1,188.50 1,229.10 44,88,031 1,48,871 5,60,33,11,125May-11 1,240.00 1,243.90 1,075.10 1,092.50 81,29,852 2,79,360 9,33,66,12,121Jun-11 1,095.70 1,097.00 925 993.5 90,77,883 2,94,520 9,05,70,98,253Jul-11 1,006.00 1,077.00 941.75 947.4 50,64,329 1,72,867 5,10,11,08,638Aug-11 954 966.75 695 741.7 1,04,03,186 3,05,428 8,16,42,93,797Sep-11 751 792.4 137.65 156.1 3,95,94,376 4,41,940 7,86,65,11,397Oct-11 154.3 207.9 145.4 198.45 4,84,52,466 4,51,627 8,64,41,69,079Nov-11 195.3 202.45 160.2 172.45 5,90,23,249 5,23,881 10,68,71,79,278Dec-11 181 195.6 167.75 178.4 4,54,79,837 4,41,427 8,26,37,55,913

Interpretation:

In the year 2011, the Equity share price values are decreased compared to the starting

month and finally stood at 178.4 in the month of December.

DETERMINATION OF RISK AND RETURN OF TATA MOTORS AS ON 2011

Month BSE-500

TATA MOTORS LTD

INDEX RETURNS

TATA MOTORS RETURNS

Jan-11 7,128.29 1,148.25 0.040566 0.061425Feb-11 6,850.40 1,081.80 -0.07891 -0.13283Mar-11 7,437.26 1,247.50 0.001363 0.01497Apr-11 7,427.14 1,229.10 0.02672 0.125034May-11 7,233.85 1,092.50 -0.00433 0.099648Jun-11 7,265.32 993.5 0.021657 0.048659Jul-11 7,111.31 947.4 0.096203 0.277336Aug-11 6,487.22 741.7 0.015888 3.751441Sep-11 6,385.76 156.1 -0.05582 -0.2134Oct-11 6,763.26 198.45 0.10565 0.150768Nov-11 6,117.00 172.45 0.058546 -0.03335Dec-11 5,778.68 178.4 0.227537 4.149701

INDEX VARIANCE

TATA MOTORS VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.003158 1.270373 0.0039361.246174

0.056197

1.127108

3.866151 0.068347 0.004671

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.004904 1.265701 1.270606 4.14 Interpretation:From the above table, it is understood that the β- value of TATA MOTORS is around

1.24 and that explains low volatility in the stock price. This low volatility in the stock

price indicates the low risk in the investments. Also the risk and returns values of TATA

MOTORS are 1.27 and 1.14 respectively.

TATA MOTORS LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of  Shares

Trades Total Turnover

Jan-12 182 244.8 178.65 243.6 4,88,36,247 4,26,127 10,39,14,93,440Feb-12 244.8 292 240.6 270.8 5,13,73,748 4,70,963 13,52,54,61,119Mar-12 269.75 297.25 262.4 275.7 3,33,81,894 3,43,171 9,22,98,48,961Apr-12 280 320.6 273.85 316.75 2,50,43,607 2,79,233 7,46,46,22,585May-12 312.95 313 230.2 233.2 3,74,13,229 4,71,623 10,06,26,91,202Jun-12 235 251.85 217 242.05 4,67,38,975 6,12,532 11,05,49,77,251Jul-12 239.9 248.15 202.95 225.9 3,15,75,184 3,72,144 7,25,56,87,651Aug-12 224.5 249.75 216.25 233.75 2,93,62,600 3,54,069 6,96,00,21,924Sep-12 237 289.3 225.15 267.45 2,58,96,096 3,00,492 6,73,99,85,981Oct-12 267.3 283.65 245.35 254.65 1,85,02,941 2,28,161 4,96,20,15,308Nov-12 257 285.5 256.2 274.25 2,24,57,418 2,63,818 6,11,60,77,420Dec-12 273.2 287.45 269.3 278.05 94,61,947 81,747 2,63,22,96,594

Interpretation:

In the year 2012, the Equity share price values are increased compared to the starting

month and finally stood at 278.05 in the month of December.

DETERMINATION OF RISK AND RETURN OF TATA MOTORS AS ON 2012

Month BSE-500

TATA MOTORS LTD

INDEX RETURNS

TATA MOTORS RETURNS

Jan-12 6,549.31 243.6 -0.04491 -0.10044Feb-12 6,857.28 270.8 0.014446 -0.01777Mar-12 6,759.63 275.7 0.009124 -0.1296Apr-12 6,698.51 316.75 0.066635 0.358276May-12 6,280.04 233.2 -0.06022 -0.03656Jun-12 6,682.47 242.05 0.011622 0.071492Jul-12 6,605.70 225.9 -0.00402 -0.03358Aug-12 6,632.34 233.75 -0.07967 -0.126Sep-12 7,206.51 267.45 0.012325 0.050265Oct-12 7,118.77 254.65 -0.04733 -0.07147Nov-12 7,472.45 274.25 -0.00842 -0.01367Dec-12 7,535.92 278.05 -0.13042 -0.04907

INDEX VARIANCE

TATA MOTORS VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.001975 0.020725 0.0039722.010539

0.04218

0.136608

0.213159 0.75819 0.574852

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.007985 -0.55413 -0.54614 -0.049 Interpretation:

From the above table, it is understood that the β- value of TATA MOTORS is around

2.01 and that explains low volatility in the stock price. This low volatility in the stock

price indicates the low risk in the investments. Also the risk and returns values of TATA

MOTORS are -0.54 and -0.049 respectively.

MARUTI SUZUKI INDIA LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of  Shares

No. of  Trades

Total Turnover

Jan-11 1,430.00 1,452.20 1,170.00 1,252.80 9,17,296 38,523 1,21,68,90,307Feb-11 1,270.00 1,271.90 1,145.50 1,206.70 7,49,252 40,185 90,08,51,117Mar-11 1,215.70 1,345.00 1,125.90 1,263.55 18,99,252 83,460 2,33,11,50,874Apr-11 1,248.00 1,335.00 1,216.80 1,319.75 12,13,479 59,527 1,57,09,51,588May-11 1,320.00 1,333.90 1,188.60 1,227.50 7,85,478 39,265 97,33,63,919Jun-11 1,227.00 1,259.00 1,087.15 1,158.45 16,30,072 81,845 1,94,04,61,927Jul-11 1,155.00 1,224.90 1,130.10 1,207.90 9,43,003 51,338 1,11,03,09,606Aug-11 1,210.10 1,287.00 1,048.00 1,092.35 19,47,311 59,962 2,31,70,01,268Sep-11 1,080.00 1,161.00 1,045.00 1,081.40 18,77,458 1,05,820 2,06,95,08,938Oct-11 1,084.90 1,178.00 1,010.45 1,125.65 22,45,520 1,17,164 2,44,05,39,341Nov-11 1,121.00 1,152.00 910 968.65 17,77,246 92,546 1,79,69,58,393Dec-11 985 1,015.50 905.55 920.05 15,34,779 75,480 1,48,11,89,065

Interpretation:

In the year 2011, the Equity share price values are decreased compared to the starting

month and finally stood at 920.05 in the month of December.

DETERMINATION OF RISK AND RETURN OF MARUTI SUZUKI AS ON 2011

Month BSE-500

MARUTI SUZUKI INDIA LTD

INDEX RETURNS

MARUTI SUZUKI RETURNS

Jan-11 7,128.29 1,252.80 0.040566 0.038203Feb-11 6,850.40 1,206.70 -0.07891 -0.04499Mar-11 7,437.26 1,263.55 0.001363 -0.04258Apr-11 7,427.14 1,319.75 0.02672 0.075153May-11 7,233.85 1,227.50 -0.00433 0.059606Jun-11 7,265.32 1,158.45 0.021657 -0.04094Jul-11 7,111.31 1,207.90 0.096203 0.105781Aug-11 6,487.22 1,092.35 0.015888 0.010126Sep-11 6,385.76 1,081.40 -0.05582 -0.03931Oct-11 6,763.26 1,125.65 0.10565 0.162081Nov-11 6,117.00 968.65 0.058546 0.052823Dec-11 5,778.68 920.05 0.227537 0.335947

INDEX VARIANCE

MARUTI SUZUKI VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.003158 0.004781 0.0028820.912621

0.056197

0.069146

0.128292 0.815889 0.665674

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.00263 -0.66089 -0.65826 0.335 Interpretation:

From the above table, it is understood that the β- value of MARUTI SUZUKI is around

0.91 and that explains low volatility in the stock price. This low volatility in the stock

price indicates the low risk in the investments. Also the risk and returns values of

MARUTI SUZUKI are -0.66 and 0.335 respectively.

MARUTI SUZUKI INDIA LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of  Shares

No. of  Trades

Total Turnover

Jan-12 930 1,224.80 916.85 1,187.55 30,62,756 1,59,688 3,34,58,07,874Feb-12 1,195.00 1,375.00 1,182.00 1,256.25 16,00,316 83,734 2,03,89,50,105Mar-12 1,268.00 1,428.20 1,249.70 1,349.10 16,17,153 85,930 2,15,67,10,411Apr-12 1,354.00 1,415.00 1,262.10 1,369.90 9,67,935 50,067 1,30,65,92,103May-12 1,375.00 1,380.05 1,098.30 1,106.45 15,37,374 75,896 1,82,62,68,105Jun-12 1,116.50 1,176.00 1,052.00 1,169.75 17,82,399 91,939 1,97,70,02,444Jul-12 1,175.15 1,249.70 1,075.00 1,133.05 36,35,640 1,69,964 4,13,75,48,406Aug-12 1,131.40 1,206.00 1,109.20 1,138.55 10,70,714 58,043 1,24,47,30,947Sep-12 1,138.00 1,368.70 1,128.05 1,349.90 16,17,263 50,873 2,00,07,04,385Oct-12 1,355.50 1,443.75 1,335.00 1,436.25 15,01,357 72,821 2,07,96,72,471Nov-12 1,440.00 1,514.95 1,434.50 1,473.55 14,42,353 64,235 2,12,28,85,208Dec-12 1,482.00 1,537.00 1,459.60 1,475.85 2,89,793 16,469 43,41,10,016

Interpretation:

In the year 2012, the Equity share price values are increased compared to the starting

month and finally stood at 1475.85 in the month of December.

DETERMINATION OF RISK AND RETURN OF MARUTI SUZUKI AS ON 2012

Month BSE-500

MARUTI SUZUKI INDIA LTD

INDEX RETURNS

MARUTI SUZUKI RETURNS

Jan-12 6,549.31 1,187.55 -0.04491 -0.05469Feb-12 6,857.28 1,256.25 0.014446 -0.06882Mar-12 6,759.63 1,349.10 0.009124 -0.01518Apr-12 6,698.51 1,369.90 0.066635 0.238104May-12 6,280.04 1,106.45 -0.06022 -0.05411Jun-12 6,682.47 1,169.75 0.011622 0.03239Jul-12 6,605.70 1,133.05 -0.00402 -0.00483Aug-12 6,632.34 1,138.55 -0.07967 -0.15657Sep-12 7,206.51 1,349.90 0.012325 -0.06012Oct-12 7,118.77 1,436.25 -0.04733 -0.02531Nov-12 7,472.45 1,473.55 -0.00842 -0.00156Dec-12 7,535.92 1,475.85 -0.13042 -0.1707

INDEX VARIANCE

MARUTI SUZUKI VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.001779 0.009477 0.0028881.623056

0.04218

0.097352

0.040982 0.773551 0.598382

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.004687 -0.5889 -0.58422 -0.17 Interpretation:

From the above table, it is understood that the β- value of MARUTI SUZUKI is high and

that explains high volatility in the stock price. This high volatility in the stock price

indicates the high risk in the investments.

ASHOK LEYLAND LTD EQUITY SHARE PRICES AS ON 2011

Month Open High Low CloseNo. of  Shares

No. of  Trades

Total Turnover

Jan-11 64.6 68.7 52.25 58.95 1,51,93,098 87,237 92,64,26,769Feb-11 59.45 59.45 45.1 46.7 1,44,79,833 66,222 75,59,59,646Mar-11 46.7 57.9 46.7 56.9 1,73,45,631 71,032 92,49,53,001Apr-11 57.85 59.8 52.5 53.05 1,43,01,444 58,801 79,43,08,053May-11 53.25 53.25 45 51.1 1,53,93,352 74,381 76,36,90,986Jun-11 51.2 55.65 45.35 48.65 1,45,54,881 56,174 71,91,98,007Jul-11 48.7 53.3 47.9 51.05 1,23,30,390 60,932 63,05,49,931Aug-11 51.7 52.4 22.75 24.85 1,47,13,498 56,542 38,19,94,705Sep-11 25 27.9 24.35 26.1 1,91,94,923 48,017 49,76,43,645Oct-11 26.5 27.35 23.2 27.25 1,63,81,427 29,508 40,68,65,456Nov-11 27 29.9 24.2 24.6 1,15,55,348 38,486 30,70,67,119Dec-11 25.15 27.05 20.05 22.75 1,40,24,402 41,533 33,21,80,017 Interpretation:

In the year 2011, the Equity share price values are drastically decreased compared to the

starting month and finally stood at 22.75 in the month of December.

DETERMINATION OF RISK AND RETURN OF ASHOK LEYLAND AS ON 2011

Month BSE-500

ASHOK LEYLAND LTD

INDEX RETURNS

ASHOK LEYLAND LTD RETURNS

Jan-11 7,128.29 58.95 0.040566 0.262313Feb-11 6,850.40 46.7 -0.07891 -0.17926Mar-11 7,437.26 56.9 0.001363 0.072573Apr-11 7,427.14 53.05 0.02672 0.03816May-11 7,233.85 51.1 -0.00433 0.05036Jun-11 7,265.32 48.65 0.021657 -0.04701Jul-11 7,111.31 51.05 0.096203 1.054326Aug-11 6,487.22 24.85 0.015888 -0.04789Sep-11 6,385.76 26.1 -0.05582 -0.0422Oct-11 6,763.26 27.25 0.10565 0.107724Nov-11 6,117.00 24.6 0.058546 0.081319Dec-11 5,778.68 22.75 0.227537 1.350405

INDEX VARIANCE

ASHOK LEYLAND LTD

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.0031580.108053 0.010536

3.336268

0.056197

0.328714

0.591281 0.627411 0.393645

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.035152 -0.28559 -0.25044 1.35

Interpretation:

From the above table, it is understood that the β- value of ASHOK LEYLAND is around

3.3 and that explains high volatility in the stock price. This high volatility in the stock

price indicates the high risk in the investments. Also the risk and returns values of

ASHOK LEYLAND are -0.25 and 1.35 respectively.

ASHOK LEYLAND LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of  Shares

No. of  Trades

Total Turnover

Jan-12 23 27.9 22.1 27.4 1,22,27,072 33,286 31,13,86,324Feb-12 28.4 30.5 25.6 28.3 3,03,25,585 65,529 86,07,27,013Mar-12 28.05 30.4 26.9 30.3 1,90,19,116 40,329 54,55,80,321Apr-12 30.6 32.55 28.7 32.25 1,48,59,359 38,828 45,63,56,906May-12 32.5 32.9 23.7 25 2,17,57,572 40,796 58,51,47,455Jun-12 24.7 29 24.3 24.95 1,21,33,089 29,719 31,06,21,173Jul-12 25.25 26.15 21.15 22.3 2,76,18,265 52,961 66,40,99,556Aug-12 22.4 23.5 20.25 20.7 1,79,74,195 39,026 39,74,17,277Sep-12 21.1 24.85 20.55 24.05 1,36,18,698 31,719 30,70,24,428Oct-12 24 25 22.9 23.45 90,94,808 27,137 21,81,18,872Nov-12 23.45 28.65 23.3 28.35 2,97,04,907 60,181 77,04,79,907Dec-12 28.35 28.7 26.45 26.7 98,87,818 13,595 27,49,29,557

Interpretation:

In the year 2012, the Equity share price values are drastically decreased compared to the

starting month and finally stood at 26.7 in the month of December.

DETERMINATION OF RISK AND RETURN OF ASHOK LEYLAND AS ON 2012

Month BSE-500

ASHOK LEYLAND LTD

INDEX RETURNS

ASHOK LEYLAND LTD RETURNS

Jan-12 6,549.31 27.4 -0.04491 -0.0318Feb-12 6,857.28 28.3 0.014446 -0.06601Mar-12 6,759.63 30.3 0.009124 -0.06047Apr-12 6,698.51 32.25 0.066635 0.29May-12 6,280.04 25 -0.06022 0.002004Jun-12 6,682.47 24.95 0.011622 0.118834Jul-12 6,605.70 22.3 -0.00402 0.077295Aug-12 6,632.34 20.7 -0.07967 -0.13929Sep-12 7,206.51 24.05 0.012325 0.025586Oct-12 7,118.77 23.45 -0.04733 -0.17284Nov-12 7,472.45 28.35 -0.00842 0.061798Dec-12 7,535.92 26.7 -0.13042 0.10511

INDEX VARIANCE

ASHOK LEYLAND VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.001779 0.016597 0.0036832.070276

0.04218

0.128829

0.375126 0.745615 0.555941

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.007626 -0.53934 -0.53172 0.105 Interpretation:

From the above table, it is understood that the β- value of ASHOK LEYLAND NS is

around 2.07 and that explains high volatility in the stock price. This high volatility in the

stock price indicates the high risk in the investments. Also the risk and returns values of

ASHOK LEYLAND are -0.53 and 0.105 respectively.

BAJAJ AUTO LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of Shares

No. of Trades

Total Turnover

Jan-11 1,559.95 1,564.95 1,214.10 1,248.65 29,75,651 1,26,070 3,93,54,27,050Feb-11 1,270.00 1,364.00 1,189.60 1,268.30 10,90,460 47,941 1,38,02,49,022Mar-11 1,275.00 1,473.00 1,275.00 1,459.80 7,95,662 36,130 1,09,57,50,751Apr-11 1,470.00 1,496.00 1,364.00 1,462.80 5,63,198 30,062 81,74,47,783May-11 1,482.50 1,489.40 1,260.05 1,344.35 15,72,304 84,401 2,06,14,98,367Jun-11 1,344.35 1,439.90 1,293.25 1,405.90 10,53,260 31,478 1,43,35,69,168Jul-11 1,420.00 1,476.85 1,405.25 1,464.85 7,17,275 32,420 1,02,76,59,534Aug-11 1,470.00 1,615.35 1,351.25 1,573.00 8,06,799 49,172 1,19,90,20,303Sep-11 1,589.00 1,694.90 1,486.00 1,534.35 7,96,298 50,172 1,27,17,97,321Oct-11 1,532.00 1,822.15 1,478.20 1,733.15 8,40,758 54,555 1,36,51,42,998Nov-11 1,726.70 1,773.80 1,566.25 1,672.85 8,32,069 52,300 1,39,81,24,979Dec-11 1,696.00 1,738.95 1,567.80 1,592.80 8,77,068 55,637 1,45,27,59,366

Interpretation:

In the year 2011, the Equity share price values are increased and finally stood at 1592.80

in the month of December.

DETERMINATION OF RISK AND RETURN OF BAJAJ AUTO AS ON 2011

Month BSE-500

BAJAJ AUTO LTD

INDEX RETURNS

BAJAJ AUTO RETURNS

Jan-11 7,128.29 1,248.65 0.040566 -0.01549Feb-11 6,850.40 1,268.30 -0.07891 -0.13118Mar-11 7,437.26 1,459.80 0.001363 -0.00205Apr-11 7,427.14 1,462.80 0.02672 0.088109May-11 7,233.85 1,344.35 -0.00433 -0.04378Jun-11 7,265.32 1,405.90 0.021657 -0.04024Jul-11 7,111.31 1,464.85 0.096203 -0.06875Aug-11 6,487.22 1,573.00 0.015888 0.02519Sep-11 6,385.76 1,534.35 -0.05582 -0.1147Oct-11 6,763.26 1,733.15 0.10565 0.036046Nov-11 6,117.00 1,672.85 0.058546 0.050257Dec-11 5,778.68 1,592.80 0.227537 -0.2166

INDEX VARIANCE

BAJAJ AUTO VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.003158 0.004683 0.0020740.656653

0.056197

0.068433

-0.36602 0.593168 0.351848

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.001362 -0.34716 -0.3458 -0.216 Interpretation:

From the above table, it is understood that the β- value of BAJAJ AUTO is around 0.65

and that explains low volatility in the stock price. This low volatility in the stock price

indicates the low risk in the investments. Also the risk and returns values of BAJAJ

AUTO are -0.34 and -0.21respectively.

BAJAJ AUTO LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of Shares

No. of Trades

Total Turnover

Jan-12 1,595.00 1,608.50 1,410.00 1,600.95 22,37,677 1,42,149 3,31,31,66,958Feb-12 1,620.00 1,839.00 1,586.00 1,798.95 8,46,535 54,207 1,45,08,74,625Mar-12 1,820.00 1,820.00 1,610.00 1,677.90 7,31,953 37,289 1,27,21,48,518Apr-12 1,685.00 1,757.00 1,578.30 1,623.10 5,55,915 27,677 91,86,81,264May-12 1,622.00 1,638.50 1,456.55 1,513.00 11,92,925 66,902 1,84,12,48,661Jun-12 1,505.00 1,590.00 1,454.00 1,572.00 9,11,167 39,279 1,40,18,90,874Jul-12 1,572.10 1,617.00 1,423.10 1,601.35 13,05,437 75,444 1,99,06,82,582Aug-12 1,598.00 1,735.50 1,590.00 1,615.40 5,96,732 32,487 99,24,71,431Sep-12 1,620.00 1,850.00 1,618.90 1,832.50 4,34,414 24,479 75,22,50,111Oct-12 1,837.00 1,837.00 1,705.00 1,813.95 4,78,673 23,369 84,74,13,962Nov-12 1,810.80 1,977.00 1,800.00 1,930.55 5,55,457 26,261 1,03,70,41,504Dec-12 1,925.10 2,013.75 1,915.10 2,003.95 3,15,474 11,428 61,61,76,686

Interpretation:

In the year 2012, the Equity share price values are increased compared to the starting

month and finally stood at 2003.95 in the month of December.

DETERMINATION OF RISK AND RETURN OF BAJAJ AUTO AS ON 2012

Month BSE-500

BAJAJ AUTO LTD

INDEX RETURNS

BAJAJ AUTO RETURNS

Jan-12 6,549.31 1,600.95 -0.04491 -0.11006Feb-12 6,857.28 1,798.95 0.014446 0.072144Mar-12 6,759.63 1,677.90 0.009124 0.033763Apr-12 6,698.51 1,623.10 0.066635 0.072769May-12 6,280.04 1,513.00 -0.06022 -0.03753Jun-12 6,682.47 1,572.00 0.011622 -0.01833Jul-12 6,605.70 1,601.35 -0.00402 -0.0087Aug-12 6,632.34 1,615.40 -0.07967 -0.11847Sep-12 7,206.51 1,832.50 0.012325 0.010226Oct-12 7,118.77 1,813.95 -0.04733 -0.0604Nov-12 7,472.45 1,930.55 -0.00842 -0.03663Dec-12 7,535.92 2,003.95 -0.13042 -0.20122

INDEX VARIANCE

BAJAJ AUTO VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.001779 0.004102 0.002143 1.20440.04218

0.064049

-0.04413 0.872482 0.761225

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.002581 -0.75712 -0.75454 -0.201 Interpretation:From the above table, it is understood that the β- value of BAJAJ AUTO is around 1.2

and that explains high volatility in the stock price. This high volatility in the stock price

indicates the high risk in the investments. Also the risk and returns values of BAJAJ

AUTO are -0.75 and -0.201 respectively

TVS MOTOR COMPANY LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of  Shares

No. of Trades

Total Turnover

Jan-11 73.1 74.5 50.5 54.45 1,46,42,006 88,809 91,32,26,013Feb-11 55.25 60 43.7 50.75 1,14,89,499 75,120 59,22,92,927Mar-11 51 61.15 51 60 1,28,85,056 77,931 72,74,29,395Apr-11 60.5 63 54.7 56.35 1,38,97,512 78,829 82,22,17,352May-11 57.5 57.9 50.1 54.15 90,45,470 60,663 48,38,56,855Jun-11 54.85 56.75 50.15 53.65 40,46,822 37,765 21,82,31,446Jul-11 55 55.1 48.6 49.35 50,17,362 29,434 25,89,49,917Aug-11 50.6 57.65 48.35 55.3 81,70,211 50,078 43,58,12,869Sep-11 56.5 66.25 56 61 83,91,545 58,291 51,01,16,418Oct-11 61 70.3 57.55 68.8 72,18,538 47,423 46,09,88,059Nov-11 69.1 69.4 58.25 59.25 90,66,421 64,672 59,25,40,537Dec-11 63 63.4 46.15 51.9 50,95,050 38,919 27,54,39,383

Interpretation:

In the year 2011, the Equity share price values are increased and decreased compared to

the starting month and finally stood at 51.9 in the month of December.

DETERMINATION OF RISK AND RETURN OF TVS MOTOR AS ON 2011

Month BSE-500

TVS MOTOR COMPANY LTD

INDEX RETURNS

TVS MOTOR RETURNS

Jan-11 7,128.29 54.45 0.040566 0.072906Feb-11 6,850.40 50.75 -0.07891 -0.15417Mar-11 7,437.26 60 0.001363 0.064774Apr-11 7,427.14 56.35 0.02672 0.040628May-11 7,233.85 54.15 -0.00433 0.00932Jun-11 7,265.32 53.65 0.021657 0.087133Jul-11 7,111.31 49.35 0.096203 -0.10759Aug-11 6,487.22 55.3 0.015888 -0.09344Sep-11 6,385.76 61 -0.05582 -0.11337Oct-11 6,763.26 68.8 0.10565 0.161181Nov-11 6,117.00 59.25 0.058546 0.141618Dec-11 5,778.68 51.9 0.227537 0.108984 INDEX VARIANCE

TVS VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.003158 0.012072 0.0032461.027675

0.056197

0.109875

-0.12485 0.578185 0.334297

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.003335 -0.32222 -0.31889 0.108 Interpretation:

From the above table, it is understood that the β- value of TVS MOTOR is around 1.02

and that explains low volatility in the stock price. This low volatility in the stock price

indicates the low risk in the investments. Also the risk and returns values of TVS

MOTOR are -0.31and 0.108 respectively.

TVS MOTOR COMPANY LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of  Shares

No. of Trades

Total Turnover

Jan-12 52.5 55.2 46.05 52.4 99,94,675 66,275 50,42,95,974Feb-12 52.4 55.5 46.5 47.2 1,22,75,150 73,250 63,46,42,581Mar-12 47.9 48.5 37 41 89,87,510 46,067 38,38,30,504Apr-12 41.95 43.95 38.1 41 76,25,286 38,915 31,38,31,329May-12 42.05 42.05 32.1 34 69,06,301 41,618 24,68,60,171Jun-12 33.95 36.6 31.9 36.45 61,28,302 28,358 20,63,75,664Jul-12 36.55 42.05 34.8 37.9 1,05,59,033 51,059 40,81,33,985Aug-12 37.9 41 37.4 39.15 24,04,563 16,668 9,41,86,046Sep-12 38.6 43.9 35.65 42.25 57,50,930 27,806 23,32,11,505Oct-12 42.45 46.95 38.1 38.8 46,73,389 30,958 19,69,70,465Nov-12 38.75 40.2 36.6 38.95 27,25,223 16,296 10,47,15,609Dec-12 39 41.4 38.35 38.55 19,20,736 8,382 7,67,35,178

Interpretation:

In the year 2012, the Equity share price values are decreased compared to the starting

month and finally stood at 38.35in the month of December.

DETERMINATION OF RISK AND RETURN OF TVS MOTOR AS ON 2012

Month BSE-500

TVS MOTOR COMPANY LTD

INDEX RETURNS

TVS MOTOR RETURNS

Jan-12 6,549.31 52.4 -0.04491 0.110169Feb-12 6,857.28 47.2 0.014446 0.15122Mar-12 6,759.63 41 0.009124 0Apr-12 6,698.51 41 0.066635 0.205882May-12 6,280.04 34 -0.06022 -0.06722Jun-12 6,682.47 36.45 0.011622 -0.03826Jul-12 6,605.70 37.9 -0.00402 -0.03193Aug-12 6,632.34 39.15 -0.07967 -0.07337Sep-12 7,206.51 42.25 0.012325 0.088918Oct-12 7,118.77 38.8 -0.04733 -0.00385Nov-12 7,472.45 38.95 -0.00842 0.010376Dec-12 7,535.92 38.55 -0.13042 0.351939

INDEX VARIANCE

TVS MOTOR VARIANCE

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.001779 0.008655 0.0023541.323228

0.04218

0.09303

0.52452 0.659953 0.435538

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.003115 -0.42688 -0.42377 0.35 Interpretation:

From the above table, it is understood that the β- value of TVS MOTOR is around 1.32

and that explains low volatility in the stock price. This low volatility in the stock price

indicates the low risk in the investments. Also the risk and returns values of TVS

MOTOR are -0.42 and 0.35 respectively.

MAHINDRA & MAHINDRA LTD EQUITYNSHARE PRICES AS ON 2011

Month Open High Low Close No. of Shares

No. of  Trades

Total Turnover

Jan-11 792 801.9 677.2 712.05 41,81,009 98,612 3,09,88,98,806Feb-11 720 721 585.1 614.1 60,18,303 1,66,835 3,90,35,48,034Mar-11 622.9 811.5 622.9 698.6 50,75,320 1,25,782 3,38,00,01,026Apr-11 701 778.25 697.05 753.8 26,65,526 71,682 1,97,65,66,498May-11 761 765 649.25 672.15 40,95,252 1,13,654 2,81,62,03,222Jun-11 676 705 617 701.3 31,82,711 86,786 2,12,19,83,088Jul-11 702 752 688.1 718.25 22,35,315 65,540 1,60,08,07,867Aug-11 723.2 746.1 633 737.55 45,69,214 1,33,049 3,22,52,86,326Sep-11 740 820.8 740 802.55 52,51,277 1,24,040 4,17,08,13,515Oct-11 800 874.75 775 863.2 26,87,102 70,909 2,18,71,02,904Nov-11 855 862.95 681.7 723.85 52,74,002 1,51,259 4,04,80,40,888Dec-11 743.1 762.55 633.4 683.05 49,13,251 1,50,943 3,40,87,22,475

Interpretation:

In the year 2011, the Equity share price values are increased and decreased compared to

the starting month and finally stood at 683.05 in the month of December.

DETERMINATION OF RISK AND RETURN OF MAHINDRA & MAHINDRA LTD AS ON 2011

Month BSE-500

MAHINDRA & MAHINDRA LTD

INDEX RETURNS

MAHINDRA & MAHINDRA RETURNS

Jan-11 7,128.29 712.05 0.040566 0.159502Feb-11 6,850.40 614.1 -0.07891 -0.12096Mar-11 7,437.26 698.6 0.001363 -0.07323Apr-11 7,427.14 753.8 0.02672 0.121476May-11 7,233.85 672.15 -0.00433 -0.04157Jun-11 7,265.32 701.3 0.021657 -0.0236Jul-11 7,111.31 718.25 0.096203 -0.02617Aug-11 6,487.22 737.55 0.015888 -0.08099Sep-11 6,385.76 802.55 -0.05582 -0.07026Oct-11 6,763.26 863.2 0.10565 0.192512Nov-11 6,117.00 723.85 0.058546 0.059732Dec-11 5,778.68 683.05 0.227537 0.096451 INDEX VARIANCE M&M

COVARIANCE BETA SDX SDY

ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.0031580.011444 0.003708

1.174109

0.056197

0.106976

-0.1707 0.678469 0.460321

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK RETURNS

0.004354 -0.44888 -0.44452 0.09 Interpretation:

From the above table, it is understood that the β- value of MAHINDRA & MAHINDRA

is around 1.17 and that explains high volatility in the stock price. This high volatility in

the stock price indicates the high risk in the investments. Also the risk and returns value

of MAHINDRA & MAHINDRA is -0.44 and 0.09 respectively.

MAHINDRA & MAHINDRA LTD EQUITYNSHARE PRICES AS ON 2012

Month Open High Low Close No. of Shares

No. of  Trades

Total Turnover

Jan-12 691 710 628.2 672.85 72,91,755 2,01,558 4,88,03,01,800Feb-12 672.2 766.85 672.2 707.65 61,17,337 1,84,250 4,36,76,57,404Mar-12 709.9 709.9 650 696.9 48,04,295 1,43,288 3,26,45,79,335Apr-12 708 734 679.05 710.15 24,85,398 67,905 1,75,27,47,000May-12 713.8 721 621.75 651.7 29,36,077 95,443 1,93,60,38,919Jun-12 650 712.75 636.2 706.9 21,22,507 61,943 1,44,84,48,328Jul-12 710.5 738.5 675.1 700.45 18,24,793 46,588 1,30,52,76,030Aug-12 703 790 681.55 765.15 21,65,681 66,823 1,60,87,97,456Sep-12 772 871.5 741.2 864.5 23,95,623 70,093 1,93,71,47,334Oct-12 864.5 899.1 819 884.25 26,03,510 62,966 2,22,64,78,236Nov-12 885 960.95 880 944.85 25,01,825 70,162 2,31,29,49,773Dec-12 950 964.45 913.75 927.95 9,34,783 19,931 87,27,29,952

Interpretation:

In the year 2012, the Equity share price values are increased compared to the starting

month and finally stood at 927.95 in the month of December.

DETERMINATION OF RISK AND RETURN OF MAHINDRA & MAHINDRA LTD AS ON 2012

Month BSE-500 MAHINDRA & MAHINDRA LTD

INDEX RETURNS

MAHINDRA & MAHINDRA RETURNS

Jan-12 6,549.31 672.85 -0.04491 -0.04918Feb-12 6,857.28 707.65 0.014446 0.015425Mar-12 6,759.63 696.9 0.009124 -0.01866Apr-12 6,698.51 710.15 0.066635 0.089689May-12 6,280.04 651.7 -0.06022 -0.07809Jun-12 6,682.47 706.9 0.011622 0.009208Jul-12 6,605.70 700.45 -0.00402 -0.08456Aug-12 6,632.34 765.15 -0.07967 -0.11492Sep-12 7,206.51 864.5 0.012325 -0.02234Oct-12 7,118.77 884.25 -0.04733 -0.06414Nov-12 7,472.45 944.85 -0.00842 0.018212Dec-12 7,535.92 927.95 -0.13042 -0.29934

INDEX VARIANCE

M&M

COVARIANCE

BETA

SDX SDY ALPHA

CO.OF CORRELATION

CO.OF DETERMINATION

0.001779

0.003439

0.001964 1.10373

0.04218

0.05864

-0.15539

0.873314 0.762677

SYSTEMATIC RISK

UNSYSTEMATIC RISK

TOTAL RISK

RETURNS

0.002167 -0.75924 -0.75707

-0.29

Interpretation:

From the above table, it is understood that the β- value of MAHINDRA & MAHINDRA

is around 1.1 and that explains low volatility in the stock price. This low volatility in the

stock price indicates the low risk in the investments. Also the risk and returns values of

MAHINDRA & MAHINDRA are -0.75 and -0.29 respectively.

FINDINGS:

The values of Beta, Risk and Returns of Automobile industry in the year 2011 in the

following table

COMPANIES BETA RISK RETURNS

TATA MOTORS 1.2 1.27 4.14

MARUTI SUZUKI 0.91 -0.65 0.33

ASHOK LEYLAND 3.3 -0.25 1.35

BAJAJ AUTO 0.65 -0.34 0.21

TVS MOTOR 1.02 -0.31 0.18

MAHINDRA & MAHINDRA 1.17 -0.44 0.09

The sensitivity of a security to market movements is called Beta. Here, the beta

values of MARUTI SUZUKI, BAJAJ AUTO and TVS MOTOR are less than and

equal to 1, it is considered to be as safety fund. That means these types of funds

have more protection in the case of market slow down.

And the beta value of TATA MOTORS, ASHOK LEYLAND, and MAHINDRA

& MAHINDRA is greater than 1 which represents the fund returns are more than

the market and also fall more than the market.

The values of Beta, Risk and Returns of Automobile industry in the year 2012 in the

following table

COMPANIES BETA RISK RETURNS

TATA MOTORS 2.01 -0.54 -0.04

MARUTI SUZUKI 1.62 -0.58 -0.17

ASHOK LEYLAND 2.07 -0.53 0.1

BAJAJ AUTO 1.2 -0.75 -0.2

TVS MOTOR 1.32 -0.42 0.35

MAHINDRA & MAHINDRA 1.1 -0.75 -0.29

The sensitivity of a security to market movements is called Beta. Here, the beta

values MARUTI SUZUKI, BAJAJ AUTO and TVS MOTOR are equal to 1, it is

considered to be as safety fund. That means these types of funds have more

protection in the case of market slow down.

And the beta value of TATA MOTORS, ASHOK LEYLAND, and MAHINDRA

& MAHINDRA is greater than 1 which represents the fund returns are more than

the market and also fall more than the market.

Suggestions:

1. It is suggested to the investors to choose MARUTI SUZUKI, BAJAJ AUTO and

TVS MOTOR to safe their investments even in market loss.

2. If investors want to get more returns bearing more risk he is suggested to choose

TATA MOTORS, ASHOK LEYLAND, and MAHINDRA & MAHINDRA.

3. The stock market is characterized by the tradeoff between risk and return. The

higher the risk the investor is willing and able to take, the higher the potential

rewards from the investment. Therefore, if a particular investment offers you high

returns, it is an indication that it will come with a high risk burden.

4. As part of the selection process, investor should determine the risk level of the

stock as well as their risk tolerance. If they are looking for high returns they

should be able to meet high potential losses as well.

5. There is no safe investment that will provide investors with high returns over a

short period of time. Therefore, investor should direct their resources toward long

– term investment that are more likely to reward you for the patience with high

returns.

Conclusion:

The Study on Performance Analysis of equity shares in Automobile industries was

undertaken with an objective of getting an insight into the concept of investments, the

risks and the returns involved. The study aims to determine the risk involved in the

investments and the factors affecting the risk. The other objectives of the study are to

observe the rate of fluctuations and the degree of volatility of the Automobile industry.

The study is confined to the Automobile sector and analyzed six companies – MARUTI

SUZUKI, BAJAJ AUTO, TVS MOTOR, TATA MOTORS, ASHOK LEYLAND, and

MAHINDRA & MAHINDRA. The study is done using the NIFTY values and other

related data from the Stock Exchanges. The data of the only one sector – MARUTI

SUZUKI, BAJAJ AUTO, TVS MOTOR, TATA MOTORS, ASHOK LEYLAND and

MAHINDRA & MAHINDR are collected. The entire study is based on the secondary

data only. The analytical tools used for the study are risk and return analysis. The study is

done at Hyderabad for a period of 60days. The study had few limitations which were

taken care of.

The information collected was analyzed using appropriate techniques – risk and return

analysis. From the analysis, it was found that the risk of TATA MOTORS, ASHOK

LEYLAND and MAHINDRA & MAHINDRA are very high. That means the returns for

the investment in these companies is very high. The remaining three companies have beta

values less than 1 and it is suggested to the investors to invest in these companies to

protect their money even in the market losses.

Bibliography

1. S. Kelvin, Security analysis and portfolio management, Prentice-Hall of India, 1st

edition, 2009.

2. Rohini singh, Security analysis and portfolio management, Excel books, 1st

edition, 2009

3. Dr. Maheswari S.N, Management Accounting and Financial control, sultan chand

and sons, 1992.

Webliography

1. www.indiainfoline.com

2. www.bse.com

3. www.nse.com

4. www.moneycontrol.com

5. www.wikipedia.com

6. www.investopedia.com