Manufacturing Company Financial Analysis and Co-Relating with Their Stock Prices
Executive Summary4 Voltas Ltd5 Company profile:5 Cost of Carrying for Jan 2011 to Sept 2011:5 Analysis:5 TVS Motors Company Limited6 Company profile:6 Cost of Carrying for Jan 2011 to Sept 2011:6 Analysis:7 Titan Industries Limited8 Company profile:8 Cost of Carrying for Jan 2011 to Sept 2011:8 Analysis:8 TATA Steel Ltd10 Company profile:10 Cost of Carrying for Jan 2011 to Sept 2011:10 Analysis:10 Suzlon Energy Ltd11 Company profile:11 Cost of Carrying for Jan 2011 to Sept 2011:11 Analysis:11 Siemens Ltd13 Company profile:13 Cost of Carrying for Jan 2011 to Sept 2011:13 Analysis:14 Reliance Power Limited15 Company profile:15
Cost of Carrying for Jan 2011 to Sept 2011:15 Analysis:15 Larsen & Toubro Limited16 Company profile:16 Cost of Carrying for Jan 2011 to Sept 2011:16 Analysis:17 Jindal Steel & Power Limited18 Company profile:18 Cost of Carrying for Jan 2011 to Sept 2011:18 Analysis:18 Godrej Consumer Products Limited19 Company profile:19 Cost of Carrying for Jan 2011 to Sept 2011:19 Analysis:20 GlaxoSmithKline Pharmaceuticals Limited21 Company profile:21 Cost of Carrying for Jan 2011 to Sept 2011:21 Analysis:21 Dr. Reddy’s Laboratories Limited22 Company profile:22 Cost of Carrying for Jan 2011 to Sept 2011:22 Analysis:22 Bibliography23 ? Executive Summary
This Project report is to calculate cost of carry for 12 Indian manufacturing companies which are listed on India Stock Exchange for period Jan 2011 to Sept 2011. Below listed companies are used in the report to do the analysis. 1. Voltas Ltd 2. TVS Motors Company Limited 3. Titan Industries Limited 4. TATA Steel Ltd 5. Suzlon Energy Ltd 6. Siemens Ltd 7. Reliance Power Limited 8. Larsen & Toubro Limited 9. Jindal Steel & Power Limited 10. Godrej Consumer Products Limited 11. GlaxoSmithKline Pharmaceuticals Limited 12. Dr. Reddy’s Laboratories Limited What is cost of carry? The cost of carry is the cost of “carrying” or holding a position.
If long, the cost of carry is the cost of interest paid on a margin account. Conversely, if short, the cost of carry is the cost of paying dividends, or rather the opportunity cost; the cost of purchasing a particular security rather than an alternative. For most investments, the cost of carry generally refers to the risk-free interest rate that could be earned by investing currency in a theoretically safe investment vehicle such as a money market account minus any future cash-flows that are expected from holding an equivalent instrument with the same risk (generally expressed in percentage terms and called the convenience yield).
Storage costs (generally expressed as a percentage of the spot price) should be added to the cost of carry for physical commodities such as corn, wheat, or gold. The cost of carry model expresses the forward price (or, as an approximation, the futures price) as a function of the spot price and the cost of carry. Where, F – Forward price, S – Spot price, r – risk-free interest rate, s -storage cost, c – Convenience yield, t- Time to delivery ? Voltas Ltd Company profile: Voltas Limited is an engineering solutions provider and project specialist.
The Company offers engineering solutions for a range of industries in areas, such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management and treatment, cold chain solutions, building management systems, and indoor air quality. Business segments of Voltas are: Electro-mechanical Projects and Services, Engineering Products and Services, Unitary Cooling Products for Comfort and Commercial use, and Others.
Others Segment consists of Lalbuksh Voltas Engineering Services & Trading LLC (Lalvol), a Joint Venture company (JVC), in Sultanate of Oman, engaged in horticulture, water management and purification. As of March 31, 2011, the Company held 60% interest in Lalbuksh Voltas Engineering Services & Trading L. L. C Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of Carry Jan-1131-Mar-11215. 54211. 054. 49 Feb-1131-Mar-11173. 47171. 6251. 845 Mar-1131-Mar-11162. 6162. 10. 5 Apr-1130-Jun-11179. 25176. 013. 24 May-1130-Jun-11166. 27164. 791. 48 Jun-1130-Jun-11162. 89162. 310. 58 Jul-1129-Sep-11158. 5155. 242. 91 Aug-1129-Sep-11126. 16125. 470. 69 Sep-1129-Sep-11120. 2119. 60. 6 Analysis: TVS Motors Company Limited Company profile: TVS Motor Company is a two-wheeler manufacturer in India. The Company manufactures a range of two-wheelers from mopeds to racing motorcycles. The Company’s products include mopeds, motorcycles and scooters, three wheelers and its parts. Its motorcycles products include Apache RTR 180, Flame DS 125, Flame, TVS Jive, StaR City, Sports. Variomatic Scooters products include TVS Wego, Scooty Streak, Scooty Pep+, Scooty Teenz. Mopeds products include TVS XL Super, TVS XL Heavy Duty.
During the fiscal year ended March 31, 2011 (fiscal 2011), the Company launched TVS Apache RTR 180, Scooty Pep+ and TVS Max4R. During fiscal 2011, the Company launched a customer service initiative TVS Service Anytime Anywhere (24×7). During the year, the Company sold 39,257 three wheelers; 832,567 motorcycles; 704,557 mopeds, and 466,206 scooters. The Company has exported three wheelers to 18 countries. On June 21, 2010, TVS Housing Limited became a wholly owned subsidiary of the Company Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of Carry Jan-1131-Mar-1163. 462. 241. 7 Feb-1131-Mar-1151. 5150. 980. 53 Mar-1131-Mar-1156. 7756. 250. 52 Apr-1130-Jun-1160. 8159. 631. 18 May-1130-Jun-1153. 7253. 170. 55 Jun-1130-Jun-1153. 5153. 30. 21 Jul-1129-Sep-1152. 5151. 491. 02 Aug-1129-Sep-1153. 4653. 060. 4 Sep-1129-Sep-1160. 760. 620. 08 Analysis: Titan Industries Limited Company profile: Titan Industries Limited is engaged in manufacturing of watches, jewelry, precision engineering and Eyewear. The Company has four divisions: watches, jewellery, precision engineering and eyewear. As of March 31, 2011, the Company had 311 World of Titan stores.
The Company sold its products through departmental stores, such as Shoppers’ Stop, Central, Lifestyle, Westside, Pantaloons and Reliance Retail. During the fiscal year ended March 31, 2011, the Company launched collection of watches, such as Purple by Titan, an offering of fashion watches; Raga Aqua, a new collection whose evocative designs were inspired by the oceans and seas; Tycoon by Titan, a new collection of gold look watches; and new products in the automatic watches range, which cater to premium consumers. As of March 31, 2011, the Company had 120 Tanishq stores, 29 Gold Plus stores and two Zoya stores in jewelry division.
As of March 31, 2011, the Company had approximately150 exclusive eyewear stores. Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of Carry Jan-1131-Mar-113578. 93506. 8372. 07 Feb-1131-Mar-113348. 963330. 0518. 91 Mar-1131-Mar-113521. 973511. 1910. 78 Apr-1130-Jun-114048. 123977. 470. 72 May-1130-Jun-114082. 494070. 8211. 67 Jun-1130-Jun-113291. 643308. 37-16. 73 Jul-1129-Sep-11227. 96224. 93. 06 Aug-1129-Sep-11212. 6212. 060. 54 Sep-1129-Sep-11218. 24217. 580. 66 Analysis: TATA Steel Ltd Company profile: Tata Steel Limited is a diversified steel producer.
The Company’s operations include manufacturing of Steel and Ferro Alloys, and Minerals Business. Other business segments consist of Tubes and Bearings. The Company’s principal products include flat rolled products of non alloy steel of a width of 600 millimeter and more hot rolled coils of thickness 1. 66 millimeter to 12 millimeter; tubes/pipes of circular section with outer diameter upto 114. 3 millimeter, not cold rolled, and flat rolled products of iron or non alloy steel, of a width of 600 millimeter or more, cold rolled (cold-reduced), not clad, plated or coated of a thickness of 0. millimeter or more but less than three millimeter. Tata Steel’s production facilities include those in India, the United Kingdom, the Netherlands, Thailand, Singapore, China and Australia. Effective September 27, 2011, Centennial Steel Company Limited merged with the Company. Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCoC Jan-1131-Mar-11653. 39651. 192. 2 Feb-1131-Mar-11625623. 211. 79 Mar-1131-Mar-11609. 49608. 0271. 463 Apr-1130-Jun-11632. 68625. 986. 7 May-1130-Jun-11584. 31582. 821. 49 Jun-1130-Jun-11574. 77573. 231. 54 Jul-1129-Sep-11591. 19583. 97. 9 Aug-1129-Sep-11490. 36489. 361 Sep-1129-Sep-11460. 35459. 980. 37 Analysis: Suzlon Energy Ltd Company profile: Suzlon Energy Limited (SEL) is an India-based wind power company. The Company is engaged in the business of design, development, manufacturing and supply of wind turbine generators (WTGs) of a range of capacities and its components. Its operations relate sale of WTGs and allied activities, including sale/sub-lease of land, infrastructure development income; sale of gear boxes, and sale of foundry and forging components. Others primarily include power generation operations.
During the fiscal year ended March 31, 2011, the Company through its wholly owned subsidiary AE-Rotor Holding BV, acquired an additional 4. 86% interest of REpower Systems SE. In October 2011, the Company’s indirect wholly owned subsidiary, AE-Rotor Holding BV closed the sale of 26. 06% interest In Hansen Transmissions International NV. SEL’s subsidiaries include Suzlon Towers and Structures Limited, Suzlon Power Infrastructure Limited, Suzlon Infrastructure Services Limited and Suzlon Gujarat Wind Park Limited. Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCoC
Jan-1131-Mar-1152. 851. 980. 82 Feb-1131-Mar-1147. 7247. 340. 38 Mar-1131-Mar-1146. 646. 310. 29 Apr-1130-Jun-1154. 653. 890. 71 May-1130-Jun-1151. 0350. 790. 24 Jun-1130-Jun-1150. 3150. 160. 15 Jul-1129-Sep-1151. 951. 250. 65 Aug-1129-Sep-1141. 841. 91-0. 11 Sep-1129-Sep-1139. 4339. 240. 19 Analysis: Siemens Ltd Company profile: Siemens Limited is an India-based company. The Company has eleven segments: Industry Automation, Drive Technologies, Building Technologies, Industry Solutions, Mobility, Fossil Power Generation, Oil & Gas, Power Transmission, Power Distribution, Healthcare and Real Estate.
It’s business is grouped into three sectors: industry, energy and healthcare. The product business group of Industry sector is industry automation (IA), drive technologies (DT) and building technologies (BT) divisions. The energy sector introduced products, including single phase 500 megavolt ampere high voltage direct current (HVDC) transformer, the 800 kilovolts circuit breaker, 400 kilovolts, 63 kilovolts disconnectors. The Healthcare Sector launched two magnetic resonance imaging (MRI) scanners called MAGNETOM Skyra 3 Tesla system and MAGNETOM Aera 1. Tesla system. on January 8, 2010, the Company acquired the balance 13. 85% stake in Siemens Building Technologies Pvt. Ltd. (SBTPL), a subsidiary of the Company. Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCoC Jan-1131-Mar-11785. 68768. 8916. 79 Feb-1131-Mar-11850. 08844. 815. 27 Mar-1131-Mar-11870. 02866. 63. 42 Apr-1130-Jun-11877. 36865. 0112. 35 May-1130-Jun-11867. 42860. 027. 4 Jun-1130-Jun-11878. 91875. 623. 29 Jul-1129-Sep-11930. 72913. 0317. 69 Aug-1129-Sep-11887. 178816. 17
Sep-1129-Sep-11860. 445858. 082. 365 Analysis: Reliance Power Limited Company profile: Reliance Power Limited (RPower) is a part of the Reliance Group. The Company is engaged in the development, construction and operation of power generation projects with a combined capacity of about 35,000 megawatts. The Company operates in two business segments: Power Generation and Associated Business Activities. Associated Business Activities includes project management, supervision and support services for generation and allied processes.
The Company’s projects include Rosa Phase 1, Rosa Phase 2, Butibori, Sasan Ultra Mega Power Project, Krishnapatnam Ultra Mega Power Project Chitrangi Power Project and Tilaiya Ultra Mega Power Project. During the fiscal year ended March 31, 2011, RPower secured three Ultra Mega Power Projects (UMPPs), which are based at Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand. Reliance Power is also developing coal bed methane (CBM) blocks to fuel gas based power generation. Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of Carry
Jan-1131-Mar-11149. 39146. 173. 22 Feb-1131-Mar-11119. 69118. 880. 81 Mar-1131-Mar-11123. 26122. 630. 63 Apr-1130-Jun-11133. 61131. 232. 38 May-1130-Jun-11116. 52115. 511. 01 Jun-1130-Jun-11115. 5115. 160. 34 Jul-1129-Sep-11117. 9115. 961. 94 Aug-1129-Sep-1192. 1491. 660. 48 Sep-1129-Sep-1181. 4481. 070. 37 Analysis: Larsen & Toubro Limited Company profile: Larsen & Toubro Limited is a technology, engineering, construction and manufacturing company. The Company operates in three segments Engineering & Construction Segment, Electrical & Electronics segment, Machinery & Industrial Products, and others.
The Company’s Engineering, Construction & Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings, factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical and instrumentation engineering disciplines. Its Engineering & Construction Division designs, engineering and executes projects for hydrocarbon sector with front-end design. Its heavy engineering division is organized into two independent companies: Heavy Engineering Independent Company and Ship Building Independent Company.
Its Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of Carry Jan-1131-Mar-111786. 151746. 4239. 73 Feb-1131-Mar-111589. 021580. 888. 14 Mar-1131-Mar-111579. 91575. 284. 62 Apr-1130-Jun-111717. 381683. 1234. 26 May-1130-Jun-1115851572. 4412. 56 Jun-1130-Jun-111718. 291714. 224. 07 Jul-1129-Sep-111825. 841801. 724. 14 Aug-1129-Sep-111621. 21623. 23-2. 03 Sep-1129-Sep-111563. 981556. 197. 79 Analysis: Jindal Steel & Power Limited
Company profile: Jindal Steel & Power Limited is a sponge iron manufacturer in India. As of March 31, 2011, the Company’s installed capacity at its Raigarh Unit include: 13,70,000 metric tons of sponge Iron; 30,00,000 metric tons of mild steel; 36, 000 metric tons of ferro alloys; 623 megawatts of power; 16,70,000 metric tons of hot metal/pig iron; 7,50,000 metric tons of rail and universal beam mill; 10,00,000 metric tons of plate mill, 60,000 metric tons of fabricated structures; 5,00,000 metric tons of cement plant and 6,00,000 metric tons of medium & light section mill.
The Company’s segments include iron and steel; power, and others. The Company’s manufacturing plants are located at Raigarh in Chhattisgarh, Angul in Orissa and Patratu in Jharkhand. Its machinery division is located in Raipur. Its coal mines are located at Dongamahua and Tamnar, Chhattisgarh, iron ore mine at Tensa, Orissa and iron ore pelletisation plant at Barbil, Orissa. Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of carry Jan-1131-Mar-11706. 71693. 4113. 3 Feb-1131-Mar-11652. 78648. 394. 39 Mar-1131-Mar-11669. 48666. 62. 88 Apr-1130-Jun-11700. 688. 4612. 04 May-1130-Jun-11640. 46635. 884. 58 Jun-1130-Jun-11635. 69633. 831. 86 Jul-1129-Sep-11642. 95631. 311. 65 Aug-1129-Sep-11518. 14516. 122. 02 Sep-1129-Sep-11537. 025361. 02 Analysis: Godrej Consumer Products Limited Company profile: Godrej Consumer Products Limited (GCPL) is a fast moving consumer goods company. It is engaged in manufacturing and marketing toilet soaps, hair colour, household insecticides, liquid detergents, toiletries and others. Its brands include Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow, Ezee, Protekt and Snuggy.
On March 14, 2011, it incorporated Godrej Mauritius Africa Holdings Limited. Effective May 7, 2010, GCPL incorporated Godrej Indonesia Netherlands Holding BV. On May 17, 2010, it acquired PT. Megasari Makmur Group. On May 28, 2010, it acquired the remaining 51% interest in Godrej Household Products Ltd. On June 1, 2010, it acquired Laboratoria Cuenca, Consell SA, Issue Uruguay, Issue Brazil and Argencos. On June 16, 2010, it acquired Tura from the Tura Group. During the fiscal year ended March 31, 2011, it acquired Naturesse Consumer Care Products Limited and Essence Consumer Care Products Limited.
In September 2011, it acquired 51% interest in Darling Group. Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of carry Jan-1131-Mar-11187. 38182. 8754. 505 Feb-1131-Mar-11168. 19166. 481. 71 Mar-1131-Mar-11173. 44172. 570. 87 Apr-1130-Jun-11191. 88188. 263. 62 May-1130-Jun-11187. 15185. 241. 91 Jun-1130-Jun-11195. 46194. 860. 6 Jul-1129-Sep-11224. 22219. 944. 28 Aug-1129-Sep-11206. 5204. 881. 62 Sep-1129-Sep-11201. 695200. 940. 755 Analysis: ? GlaxoSmithKline Pharmaceuticals Limited Company profile:
GlaxoSmithKline Pharmaceuticals Limited is a research-based healthcare and pharmaceutical company. Its product portfolio includes prescription medicines and vaccines. Its prescription medicines range across therapeutic areas, such as anti-infectives, dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory diseases. It also offers a range of vaccines, for the prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer and others.
During the year ended December 31, 2010, it launched Mycamine inj (Micafungin) in-licensed from Astellas and Parit D capsules (Rabeprazole in combination with Domperidone) in-licensed from Eisai, and Modvate 3 cream (Beclomethasone in combination with Clotrimazole and Neomycin) and Modvate AF cream (Beclomethasone in combination with Clotrimazole) in Dermatology. During 2010, Cefspan (Cefixime – oral antibiotic) was also relaunched Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of Carry Jan-1131-Mar-112366. 662323. 3243. 34 Feb-1131-Mar-112227. 032226. 330. Mar-1131-Mar-112104. 082110. 3-6. 22 Apr-1130-Jun-112181. 832140. 9640. 87 May-1130-Jun-112345. 32322. 6122. 69 Jun-1130-Jun-112375. 12367. 637. 47 Jul-1129-Sep-112375. 372330. 1645. 21 Aug-1129-Sep-112189. 322168. 3920. 93 Sep-1129-Sep-112084. 572077. 577 Analysis: ? Dr. Reddy’s Laboratories Limited Company profile: Dr. Reddy’s Laboratories Limited (Dr. Reddy’s) is an integrated pharmaceutical company focused on providing medicines through its three business segments: Global Generics segment, Pharmaceutical Services and Active Ingredients (PSAI) segment and Proprietary Products segment.
Its Global Generics segment includes branded and unbranded prescription and over-the-counter (OTC) drug products business. Its Pharmaceutical Services and Active Ingredients (PSAI) segment consists of its active pharmaceutical ingredients (API) business and its custom pharmaceutical services business. Its Proprietary Products segment, which consists of its Generic Biopharmaceuticals business, its New Chemical Entities (NCEs) business, its Differentiated Formulations business and its dermatology focused specialty business operated through Promius Pharma.
Cost of Carrying for Jan 2011 to Sept 2011: MonthExpiryFuture PriceSpot PriceCost of Carry Jan-1131-Mar-111680. 561650. 2630. 3 Feb-1131-Mar-111547. 9371545. 222. 717 Mar-1131-Mar-111570. 91572. 18-1. 28 Apr-1130-Jun-111676. 811646. 730. 11 May-1130-Jun-111610. 431600. 559. 88 Jun-1130-Jun-111550. 151551. 15-1 Jul-1129-Sep-111598. 111569. 5828. 53 Aug-1129-Sep-111505. 091496. 998. 1 Sep-1129-Sep-111491. 931489. 812. 12 Analysis: Bibliography http://nseindia. com/ http://www. google. com/finance http://www. investopedia. com http://in. finance. yahoo. com/