A

REPORT ON
AGRICULTURE INDUSTRY
IN INDIA
WITH SPECIFIC REFERENCE TO

Submitted to
Prof. Indrajeet Kole
Prof. Prajakta Gokhale

SUBMITTED BY:
HARSHIT GUPTA
PGDM-MPM
 GUIDE CERTIFICATE

This is to certify that the Project Report entitled “ Agriculture Industry in

India with special reference to Deepak Fertilisers & Petrochemicals Corp. Ltd.”
which is being submitted herewith for the award of the degree of PGDM,
Sinhgad institute Of Management; Pune is the result of the research work
completed by Harshit Gupta under my supervision and guidance.

Mr. Indrajeet Kole

(Project Guide)
Date:
Place: Pune
 INTRODUCTION

Agriculture is the artificial cultivation and processing of animals, plants, fungi and other life

forms for food, fibers and other by products. Agriculture was the key implement in the rise of
sedentary human civilization, whereby farming of domesticated species created
food surpluses that nurtured the development of much denser and more stratified societies.
Agriculture in India is the means of livelihood of almost two thirds of the work force in the
country. It has always been INDIA'S most important economic sector. The 1970s saw a huge
increase in India's wheat production that heralded the Green Revolution in the country. The
increase in post -independence agricultural production has been brought about by bringing
additional area under cultivation, extension of irrigation facilities, use of better seeds, better
techniques, water management, and plant protection. Dependence on India agricultural
imports in the ea’rly 1960s convinced planners that India's growing population, as well as
concerns about national independence, security, and political stability, required self-
sufficiency in food production. This perception led to a program of agricultural improvement
called the Green Revolution, to a public distribution system, and to price supports for
farmers. The growth in food-grain production is a result of concentrated efforts to increase all
the Green Revolution inputs needed for higher yields: better seed, more fertilizer, improved
irrigation, and education of farmers. Although increased irrigation has helped to lessen year-
to-year fluctuations in farm production resulting from the vagaries of the monsoons, it has not
eliminated those fluctuations.

Nontraditional crops of India, such as summer mung (a variety of lentil, part of the pulse
family), soybeans, peanuts, and sunflowers, were gradually gaining importance. Steps have
been taken to ensure an increase in the supply of non-chemical fertilizers at reasonable prices.
There are 53 fertilizer quality control laboratories in the country. Realizing the importance of
Indian agricultural production for economic development, the central Government of India
has played an active role in all aspects of agricultural development. Planning is centralized,
and plan priorities, policies, and resource allocations are decided at the central level. Food
and price policy also are decided by the central government. Thus, although agriculture in
India is constitutionally the responsibility of the states rather than the central government, the
latter plays a key role in formulating policy and providing financial resources for agriculture.
Expansion in crop production, therefore, has to come almost entirely from increasing yields
on lands already in some kind of agricultural use.
The monsoons, however, play a critical role in Indian agriculture in determining whether the
harvest will be bountiful, average, or poor in any given year. One of the objectives of
government policy in the early 1990s was to find methods of reducing this dependence on the
monsoons.
 INDUSTRY OVERVIEW

India ranks second worldwide in farm output. Agriculture and allied sectors like forestry and
logging accounted for 14.6% of the GDP in 2009-10, employed 52% of the total workforce,
10.23 per cent (provisional) of the total exports and despite a steady decline of its share in
the GDP, is still the largest economic sector and plays a significant role in the overall socio-
economic development of India.

India's agriculture and allied sector grew by 3.8 per cent in the first six months of the current
fiscal (2010-11), against one per cent in the year-ago period on the back of better Kharif crop
output. According to the GDP data released by the Central Statistical Organization (CSO) on
November 30, 2010, the country's farm sector grew by 2.5 per cent and 4.4 per cent each in
the first two quarters of the current fiscal, against 1.9 per cent and 0.9 per cent, respectively,
in the same period last year.

The Government is giving highest priority to agriculture and allied sector. The Eleventh Plan
allocation has been considerably higher over the Tenth Plan allocation. An amount of US$ 19
billion has been allocated for the Ministry of Agriculture during the Eleventh Five Year Plan.

Capital investment in agriculture has increased from US$ 1.2 billion in 2007-08 to US$ 3.26
billion in 2010-11 (inclusive of State Plan Scheme Rashtriya Krishi Vikas Yojana), as per a
Ministry of Agriculture press release dated August 3, 2010.

History of the industry

Since independence, India has become one of the largest producers of wheat, edible oil,
potato, spices, rubber, tea, fishing, fruits, and vegetables in the world. The Ministry of
Agriculture oversees activities relating to agriculture in India. Various institutions for
agriculture related research in India were organized under the Indian Council of Agricultural
Research (est. 1929). Other organizations such as the National Dairy Development Board
(est. 1965), and National Bank for Agriculture and Rural Development (est. 1982) aided the
formation of cooperatives and improved financing.

Indian agriculture began by 9000 BCE as a result of early cultivation of plants, and
domestication of crops and animals. Settled life soon followed with implements and
techniques being developed for agriculture. Double monsoons led to two harvests being
reaped in one year. Indian products soon reached the world via existing trading networks and
foreign crops were introduced to India. Plants and animals—considered essential to their
survival by the Indians—came to be worshiped and venerated.

The middle ages saw irrigation channels reach a new level of sophistication in India and
Indian crops affecting the economies of other regions of the world under Islamic patronage.
Land and water management systems were developed with an aim of providing uniform
growth. Despite some stagnation during the later modern era the independent Republic of
India was able to develop a comprehensive agricultural program.
FACTS AND FIGURES OF INDIAN AGRICULTURE

 India has the largest area in the world under pulse crops .
 India is the first in the world to evolve a cotton hybrid.
 India has the world's highest percentage of arable land to the total geographical area,
in the world.
 About 50% of India's geographical area is used for agricultural activity. With the
spread of irrigation facilities, the introduction of high yielding variety of seeds and
farm mechanization, the vulnerability of the Indian agricultural sector to the vagaries
of the monsoons has declined, compared to earlier.
 About 80 percent of India's farmland is used to grow India's main foods--grains and
pulses, the seeds of various pod vegetables, such as beans, chickpeas, and pigeon
peas.
 India has the world's largest cattle and buffalo population. These animals are not
butchered for meat, but farmers keep cattle and water buffaloes for plowing and for
milk. Most commercial milk production comes from water buffaloes. Hides from
cattle and water buffaloes are used for leather after the animals have died. Sheep are
raised mostly for wool and sheepskin.
 Dairy accounts for nearly 26% of the total value of agricultural output. India has the
world's second highest production of milk. India possesses 26 good breeds of cattle
and six breeds of buffaloes. India's cattle is renowned the world over for its quality of
endurance and resistance to tropical diseases.
 India grows more than half of the world's mangoes and leads all countries in the
production of cashews, millet, peanuts, pulses, sesame seeds, and tea.
 The nation ranks second in the production of cauliflowers, jute, onions, rice, sorghum,
and sugar cane.
 India is a major producer of apples, bananas, coconuts, coffee, cotton, eggplants,
oranges, potatoes, rapeseeds, rubber, tobacco, and wheat.

 India is also the world's largest grower of betel nuts, which are palm nuts chewed as
a stimulant by many people in tropical Asia. It is also a leading producer of such
spices as cardamom, ginger, pepper, and turmeric.

 In terms of gross fertilizer consumption, India ranks fourth in the world, after the
USA, the erstwhile USSR and China.

 India lives mainly in its villages, 600,000 of them.

 Agriculture provides livelihood to about 65% of India's labour force

 Agriculture contributes nearly 33% to India's Gross Domestic Product (GDP)

 Agriculture accounts for about 10% of India's exports.

 The farmers and their families use most of their crops. Half of all Indian farms are less
than 2.5 acres (1 hectare) in area. Only 4 percent cover more than 25 acres (10
hectares).
India’s Position in World Agriculture

RANK

Total Area Seventh

Irrigated Area First
Population Second
Economically Active population Second
Total Cereals Third
Wheat Second
Rice Second
Coarse grains Fourth
Total Pulses First
Oil Seeds Second
Fruits and Vegetables Second
Implements (Tractors) Third
Milk First
Live Stock (castles, Buffaloes) First

The Indian Agricultural Scenario

The total geographical area of India is 328.7 million hectares of which 140.3 million hectares
is net sown area, while 193.7 million hectares is the gross cropped area, according to the
Annual Report 2009-10 of the Ministry of Agriculture.

Production

India has become the world's largest producer across a range of commodities due to its
favourable agro-climatic conditions and rich natural resource base. India is the largest
producer of coconuts, mangoes, bananas, milk and dairy products, cashew nuts, pulses,
ginger, turmeric and black pepper. It is also the second largest producer of rice, wheat, sugar,
cotton, fruits and vegetables.

As per the Centre for Monitoring Indian Economy (CMIE) farm output will grow by 10 per
cent to 114 million tonne (MT) in the 2010 Kharif season, while Rabi season is expected to
report a 2 per cent increase at 116.6 MT.

Oilseeds production is expected to rise by 11.1 per cent during the season to 18.1 per cent,
sugarcane to notch up by 15.6 per cent to 321 MT and cotton to grow by 12.4 per cent to 26.9
million bales compared to 23.9 million bales in the last season. The agency pegs the overall
foodgrain output growth up by 5.3 per cent to 229.7 MT.

Major agricultural crops, including foodgrain, oilseeds, cotton, sugarcane, and fruits and
vegetables, are projected to grow by 7.2 per cent in 2010-11, while production of non-food
crops as a whole is projected to grow by 9.7 per cent in the year.
Exports

According to the government's agri-trade promotion body, Agricultural and Processed Food
Products Export Development Authority (APEDA), India's exports of agricultural and
floricultural products, fruits and vegetables, animal products, cereals and processed food
products was worth US$ 1.14 billion during April-May 2010-11.

India's agri-export turnover is expected to rise to nearly US$ 18 billion by 2014, according to
APEDA.

Major Players in this Industry

1. National Fertilizer Ltd.

2. Paradeep Phosphates Ltd.
3. Fertilizers & Chemical Travancore Ltd.
4. Pyrites, Phosphate & Chemicals Ltd.
5. Hindustan Fertilizer Corporation Ltd.
6. Deepak Fertilisers & Petrochemicals Corp. Ltd.
DEEPAK FERTILISERS & PETROCHEMICALS CORP. LTD.

Company Information

The genesis of Deepak Fertilisers And Petrochemicals Corporation could be said to be in the
year 1970 when Mr. C. K. Mehta set up Deepak Nitrite Ltd, combining his skills in trading
and manufacturing. DNL grew by leaps and bounds, surpassing expectations of all investors
and also won many prestigious awards like the Sir P.C. Ray award, for being the best
Chemical Industrial unit inIndia. 
In 1983, Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) started
commercial production of ammonia (in technical collaboration with Fish International
Engineers (USA) using natural gas as feedstock. This marked the fulfillment of a need for
lateral integration into the world of basic building block chemicals, premium fertilizers and
petrochemicals. At the time, this was India's only merchant ammonia manufacturer. The
International Finance Corporation initially supported this venture of Deepak group in the
form of equity participation in DFPCL.

The company undertook major expansion and diversification in 1989 to achieve forward
integration of ammonia and diversification in Methanol.

In July 1992, DFPCL commenced commercial production of Low Density Ammonium

Nitrate (LDAN), Nitro Phosphate (NP), Dilute Nitric Acid (DNA), and Concentrated Nitric
Acid (CNA).

This has resulted in a multi-product portfolio for DFPCL consisting of chemicals,

petrochemicals, fertilizers and other agri-inputs. To ensure an uninterrupted supply of natural
gas to its plant, DFPCL laid its own 43 km gas pipeline from the coastal fall point of Bombay
High to its plants in Tajola, thus becoming one of the first companies in India to have its own
gas pipeline.

The Company has now diversified into specialty retailing with Ishanya, India’s largest
Design Centre and Specialty Mall for interiors and exteriors. This 5,50,000 sq.ft. Project is
located near the hear of Pune and is home to 52 product and service categories in interiors
and exteriors.

DFPCL has a chemical storage terminal at Jawaharlal Nehru Port Trust (JNPT) to provide
support to its logistics management system and ensure a window to the world trade in
chemicals. It is in the process of adding new storage facilities for Ammonia, Methanol and
other products. The company also leases port storage capacities at Bombay Port Trust and
Vishakhapatnam.

DFPCL's business can be broadly categorized into : -

1. Chemicals
2. Agribusiness
3. Specialty Retailing
 Chemicals: This division of DFPCL manufactures Methanol, various grades of Nitric Acid
and Ammonia. DFPCL is one of the largest producers of Methanol in India, which in turn is
used to manufacture drugs, pharmaceuticals, DMT, pesticides, methylamines, formaldehyde,
etc. DFPCL is also one of the largest manufactures various concentrations of Nitric Acid
(60%, 68%, 72% and 98%). Ammonium Nitrate: The explosives division manufactures Low
Density Ammonium Nitrate, which is used for making Ammonium Nitrate-fuel oil (ANFO),
blasting agents and also emulsified ANFO (HANFO). DFPCL is the largest manufacturer of
ammonium nitrate in India (capacity expanded to 100.000 tpa in September 2002), and the
only one making prilled Ammonium Nitrate (AN). Their products are used for open cast
mining, underground metalliferrous mining and construction Industry.

Agribusiness: This division of DFPCL manufactures 23:23:0 prilled Nitro phosphate

fertilizers under the brand name Mahadhan. DFPCL markets Mahadhan through a network of
over 1000 dealers. Thanks to the company's rigorous adherence to quality, Mahadhan is one
of most widely accepted fertilizer brands in India...

Specialty Retailing:

Ishanya: Ishanya is India's first International Design Centre and Specialty Mall - a centre for
excellence in space design and the one-stop shop for interior and exterior products.

 For architects and interior designers, Ishanya is a platform to showcase their art, craft
and vision to a targeted and discerning audience.
 For manufacturers and retailers of interior and exterior products, it's the perfect
marketplace to make the most of India's real estate and construction boom. For
homeowners, corporate shoppers and visitors, Ishanya will provide the ultimate experience
in shopping for the home.

Social Responsibilities: The Company has been contributing towards social causes for
nearly two decades. The Deepak Charitable Trust (DCT) and the Deepak Medical Foundation
(DMF) with the support of DFPCL and Deepak Nitrite Limited are carrying on development
activities for society. 
DCT has been actively working in the area of mother and childcare. Through an integrated
network of women health workers the foundation has been imparting training and
communication on health care. Extending the activities on both sides, the Foundation has
catalyzed and supported the creation of Aanganwadis, and taken education to youth on family
planning. The Foundation is now working to curtail the spread of HIV / AIDS.

DFPCL takes an active interest in environmental protection. In addition to regulatory

requirements of the State Pollution Boards and Federation of Indian Industries, care is taken
to reduce pollution by incorporation of appropriate effluent handling disposal systems.
Ishanya Foundation

The Ishanya Foundation is focused on ‘Women Empowerment’, ‘Education’ and ‘Health’. As

its maiden project, the foundation started a Diabetic Centre at the Jahangir hospital, Pune.
The Ishanya Foundation Diabetic Centre is equipped with advanced machines like
Biothesiometer, Hand Doppler, and the RS Scan (foot mapping machine). The centre offers a
preventive, curative and research effort on diabetes. In its outreach programme, a number of
diabetic camps and cataract operations were conducted free of cost for the needy.
 The Ishanya Foundation serves 27 villages around Taloja by offering free OPD check-up by a
team of doctors, trained medical and paramedical staff. It has started self help groups to
enable women save money and put it to right use, thereby gaining recognition and respect in
the society. Mobile libraries have been started in three schools in Taloja and joyful activities
are carried out for these children.

In our plants we continuously monitor solid, semisolid and gaseous affluent discharges to
ensure that they are within allowable limits. We also help other small industries as well as
customers in solving their environment- related problems.

Future Prospects: DFPCL will continue to make deeper inroads into value-added chemicals,
agro inputs and related services and specialty retailing.

 DFPCL plans to leverage its well-knit marketing and distribution network in

chemicals and fertilizer industry to provide value-added services to their customers for
sourcing raw materials and assisting them in exporting their products. The chemical
storage and drumming facilities at Jawaharlal Nehru Port (JNPT) near Bombay will
provide further value-added services.
 We are now executing two projects—an Ammonia storage facility at JNPT and a 300
MTPA AN manufacturing facility at Paradip in Orissa on the East Coast of India
 Deeper in-roads into agro-inputs and services markets are on the drawing board,
including the MAHADHAN Agriculture Research Centre (MARC), which will serve to
partner with farmers, providing education, training and ensuring that they achieve the best
performance. The Mahadhan Saarrthie initiative is being quickly expanded across
Maharashtra.

Dreams of visionary minds and planned strategy by professional managers will give shape to
an exciting future at DFPCL
 FINANCIAL STATEMENT ANALYSIS

NSE Code DEEPAKFERT

BSE Code 500645 P/E 7.38
Dividend Yield
ISIN Demat INE501A01019 3.02 EPS 20.19
%
Book Value 120.66 Face Value 10
Market Cap 13133.72

STATEMENT OF FINANCIAL POSITION

(Rs in Millions)
Particulars Mar 2010 Mar 2009 Mar 2008 Mar 2007 Mar2006  
SOURCES OF FUNDS            
Share Capital 882.05   882.05   882.05   882.05   882.05  
Share warrants & Outstandings 0.00   0.00   0.00   0.00   0.00  
Total Reserve 8421.95   7149.09   6105.99   5472.56   4854.72  
Shareholder's Funds 9304.00   8031.14   6988.04   6354.61   5736.77  
Secured Loans 6090.37   4460.76   1983.88   2553.14   1760.80  
Unsecured Loans 1221.60   1616.76   1509.91   700.00   0  
Total Debts 7311.97   6077.51   3493.80   3253.14   1760.80  
Total Liabilities 16615.97   14108.65   10481.83   9607.75   7497.57  
APPLICATION OF FUNDS :               
Gross Block 13493.63   12659.60   10392.20   8849.81   6774.12  
Less: Accumulated
5906.36   5367.82   4876.85   4456.38   4079.43  
Depreciation
Less: Impairment of Assets 0   0   0   0   0  
Net Block 7587.26   7291.77   5515.35   4393.43   2694.70  
Lease Adjustment A/c 0   0   0   0   0  
Capital Work in Progress 4141.59   2435.03   2481.95   1877.52   2256.76  
Pre-operative Expenses pending 0   0   0   0   0  
Assets in transit 0   0   0   0   0  
Investments 1557.73   1544.57   1427.45   2096.10   2266.54  
Current Assets, LoansAdvances               
Inventories 1116.32   985.40   792.35   1152.60   609.12  
Sundry Debtors 1981.25   2719.45   2168.12   1219.79   906.03  
Cash and Bank 2062.43   1589.52   300.44   350.67   226.67  
Other Current Assets 99.29   121.50   64.12   72.66   158.81  
Loans and Advances 1007.53   778.35   849.39   827.09   443.09  
Total Current Assets 6266.83   6194.22   4174.43   3622.80   2343.72  
Less : Current Liabilities and
              
Provisions
Current Liabilities 1676.52   2188.49   2080.35   1386.89   1153.59  
Provisions 639.91   523.40   432.20   356.21   452.72  
Total Current Liabilities 2316.43   2711.88   2512.55   1743.09   1606.30  
Net Current Assets 3950.40   3482.34   1661.88   1879.71   737.42  
Miscellaneous Expenses not
0   5.49   12.08   18.68   25.27  
written off
Deferred Tax Assets 97.76   76.80   49.61   41.06   62.17  
Deferred Tax Liability 718.78   727.35   666.49   698.74   545.29  
Deferred Tax Assets /
-621.02   -650.55   -616.88   -657.68   -483.11  
Liabilities
Total Assets 16615.97   14108.65   10481.83   9607.75   7497.57  
Contingent Liabilities 860.25   657.41   479.81   345.13   544.72  

INCOME STATEMENT
 (Rs in Millions)

Particulars Mar 2010 Mar 2009 Mar 2008 Mar 2007

No of Months 12 12 12 12 12
Gross Sales 13541.64 14988.71 11349.53 9041.82 6117.68
Less: Inter divisional transfers 0 0 0 0 0
Less: Sales Returns 0 0 0 0 0
Less: Excise 647.64 844.52 940.64 710.48 489.06
Net Sales 12894.01 14144.19 10408.89 8331.34 5628.62
EXPENDITURE:
Increase/ Decrease in Stock -54.76 76.78 235.19 -430.33 -52.68
Raw Materials Consumed 7666.75 8863.45 6745.78 5859.57 3427.14
Power &Fuel Cost 146.46 167.14 185.61 169.48 126.52
Employee Cost 793.05 681.65 530.60 421.98 375.54
Other Manufacturing Expenses 748.89 590.73 387.84 343.27 241.82
General and Administration Expenses 231.19 258.43 171.27 167.43 125.51
Selling and Distribution Expenses 167.37 128.28 147.54 163.24 91.02
Miscellaneous Expenses 410.12 656.22 260.02 194.31 258.24
Less: Pre-operative Expenses 0 0 0 0 0
Total Expenditure 10109.09 11422.66 8663.86 6888.94 4593.11
Operating Profit (Excl OI) 2784.92 2721.53 1745.03 1442.40 1035.51
Other Income 449.03 360.01 404.22 363.01 326.33
Operating Profit 3233.95 3081.54 2149.25 1805.40 1361.84
Interest 463.29 404.66 159.46 114.88 56.49
PBDT 2770.66 2676.88 1989.79 1690.53 1305.34
Depreciation 643.32 523.76 447.05 390.83 315.59
PBT Exceptional Items 2127.34 2153.12 1542.74 1299.69 989.76
Exceptional Income/Expenses 250.44 -33.11 -27.60 -18.21 127.26
Profit Before Tax 2377.78 2120.01 1515.13 1281.48 1117.01
Provision for Tax 657.30 632.97 512.48 352.22 319.29
Profits After Tax 1720.48 1487.04 1002.66 929.26 797.72
Extraordinary Items 0 0 0 0 0
Adj to Profit After Tax 0 0 0 0 12.50
Profit Balance B/F 5117.78 4194.94 3672.98 3165.32 2756.00
Appropriations 6838.26 5681.98 4675.63 4094.58 3566.22
Equity Dividend% 45.00 40.00 35.00 30.00 30.00
Earnings Per Share 19.51 16.86 11.37 10.54 9.04
Book Value 105.48 90.99 79.09 71.83 64.75

CASH FLOW
(Rs in Millions)
Particular Mar2010 Mar 2009 Mar 2008 Mar 2007 Mar 2006
Profit Before Tax 2377.78 2120.01 1515.13 1281.48 1117.01
Adjustment 491.87 962.35 592.02 453.33 194.02
Changes In working Capital -63.84 -793.43 -20.79 -730.72 -389.48
Cash Flow after changes in W. Capital 2805.80 2288.93 2086.37 1004.09 921.55
Cash Flow from Operating Activities 2155.57 1720.07 1557.45 655.46 612.61
Cash Flow from Investing Activities -2188.24 -2065.62 -1341.77 -1532.20 -1112.88
Cash Flow from Financing Activities 505.57 1634.64 -265.91 1000.74 495.62
Net Cash Inflow / Outflow 472.91 1289.08 -50.23 124.01 -4.66
Opening Cash & Cash Equivalents 1589.52 300.44 350.67 226.67 231.32
Cash & Cash Equivalent on M&A 0 0 0 0 0
Cash & Cash Equivalent of Subsi. 0 0 0 0 0
Translation adjustment on reserves 0 0 0 0 0
Effect of Foreign Exchange Fluc. 0 0 0 0 0
Closing Cash & Cash Equivalent 2062.43 1589.52 300.44 350.67 226.67

RATIO ANALYSIS

Ratio analysis is a technique by which various figures in the profit & loss a/c in b/s are
related to each other to give a meaningful conclusion got interpreting & deciding the line of
action for decision making & control.

A. Liquidity Ratios
B. Leverage/Solvency Ratio
C. Profitability Ratios
D. Turnover Ratios
E. Valuation Ratios

Following Parties are interested in Ratio analysis.

Interested in which Ratio

 Party

I) Shareholder 1. Return on Capital

employed.
2. Rate of dividend.
3. Long term solvency.
4. Earning per share.
II) Creditors 1. Current ratio.
2. Liquidity ratio.
3. Debts equity ratio.
III) 1. G.P. ratio.
Government 2. N.P. ratio.
3. Capacity utilisation.
IV) 1. All turn over ratio.
Management

Liquidity Ratios:
Means ability of company to make cash available as & when required. The liquidity ratios
study the firm’s short term solvency and ability to pay off the liabilities. Consequently, these
ratios focus on current assets and current liabilities. Some of the common liquidity ratios are:

i. Current Ratio
ii. Quick Ratio/Acid Test Ratio
iii. Absolute Quick ratio

i.Current Ratio:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
10 09
Current 62 61 417 3622.80 2343.72
Assets 66 94. 4.43
.8 22
3
Current 23 27 251 1743.09 1606.30
Liabilities 16 11. 2.55
.4 88
3
Current Ratio 2.70 2.28 1.66 2.07 1.45
Interpretation: Current ratio is important as per company liquidity posidition. In the above
analysis this ratio is constantly increase except 2008 due to recession in the market. But
currently company’s liquidity posidition is sound good.

ii.Liquid /Acid Test / Ratio:

Quick 4043.68 4308.97 2368.56 1570.46 1132.7

/Liquid
Assets
Current 23 27 251 1743.09 1606.30
Liabilities 16 11. 2.55
.4 88
3
Liquid /Acid 1.74:1 1.59:1 0.94:1 0.90:1 0.70:1
Test / Ratio

Interpretation: This ratio is the further part of current ratio which tells currently available
cash posidition of the company if company wants to pay his liability so this ratio should be
just equal to the current liability. And this company has sound liquid assets for paying his
liquid liability.

Profitability Ratios
Profits are the ultimate test of the management. It can be measured by variety of ways.
Profitability ratios communicate the profitability of events that have already taken place.
Important profitability ratios are as follows:

i. GP Ratio
ii. NP Ratio
iii. Operating Profit Ratio
iv. Operating Ratio
v. Return on Asset
vi. Return on Capital Employed
vii. Return on Equity
viii. Proprietary Ratio

i.Operating Profit Ratio:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
10 09
Operating 32 30 214 1805.40 1361.84
Profit 33 81. 9.25
 .9 54
5
Sales 12 14 104 8331.3 5628.62
89 14 08.8 4
4. 4.1 9
01 9
Operating 25.08 21.34 20.64 21.66 24.19
Profit Ratio

Interpretation: This ratio is calculated by EBITDA which is calculated before interest, tax,
depreciation and amortization. That’s why this ratio should be sound enough for paying these
terms. Profit is the main terms which are consider by all stakeholder of the company. So this
company has just enough amount of operating profit but he should try to improve this ratio.

ii.Return on Equity:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
10 09
Sh 9 80 698 6354.61 5736.77
ar 3 31. 8.0
eh 0 14 4
ol 4.
de 0
r's 0
Fu
nd
s
Net Profit 5 41 367 3165. 2756.00
1 94. 2.9 32
1 94 8
7.
7
8
Return on 55% 52.23% 52.56% 49.81% 48.04%
Equity

Interpretation: It is the mandatory work for the management to maximize the share holder
wealth. So this ratio tells about how efficiently managers use shareholder wealth and how
much return shareholders getting. With the above analysis managers currently give
appropriate return on the shareholders wealth with compare to past years experience.
iii.Return on Capital Employed:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 2
2 20 008
0 09
1
0
PBIT 2 30 214 1805. 1361.84
3 81 9.2 40
3 .5 5
9. 4
5
Capital 14939.45 11920.16 8401.38 8220.86 6343.98
Employed=Total
Assets-Current
Liabilities
Return on Capital 15.6% 25.85% 25.58% 21.96% 21.46%
Employed

Interpretation: Capital employed is the fund which is generated for running our whole
business activity. So in this fund we can include debt as well as share capital. This ratio tells
about how effectively we use this fund and how much return we have getting on this fund.
With the above analysis ROCE become lesser with compare to past result which is alarming
situation.

Leverage/Solvency Ratios
The term leverage in general refers to a relationship between two interrelated variables. In
financial analysis it represents the influence of one financial variable over some other related
variable. It is an ability of the firm to use fixed costs to magnify the returns to the
shareholders.

i. Debt-Equity Ratio
ii. Interest Coverage Ratio
iii. Fixed Charge Coverage Ratio
iv. Total debt ratio/ Debt-Asset Ratio
v. Fixed Assets Ratio
i.Debt-Equity Ratio:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
 10 09
Total Debt 73 60 349 3253. 1760.80
11 77. 3.80 14
.9 51
7
Equity 51 41 367 3165. 2756.00
17 94. 2.98 32
.7 94
8
Debt/Equity 1.42:1 1.44:1 0.95:1 1.02:1 0.63:1

Interpretation: This ratio is very important for investors as well as managers of the
company. With the above analysis company have sound balance on debt and equity for
minimize his cost of capital and financial risk. So company have ideal debt equity ratio.

ii. Interest Coverage Ratio:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
10 09
Interest 463.29 404.66 159.46 114.88 56.49
PBIT 32 30 214 1805.4 1361.84
33 81. 9.25 0
.9 54
5
Interest 6.98 7.61 13.47 15.71 24.10
Coverage
Ratio

Interpretation: This ratio is important as per banks point of view. This ratio means how
many times company have profit for paying his fixed interest on debt capital. But currently
company is in critical posidition. Company generates only 6 times profit which is dangerous
posidition and increase solvency risk.

Turnover Ratios:

These ratios measure the effectiveness with which the firm uses its resources. It shows how
efficiently and effectively the assets of the firm being utilized. Some of the important activity
ratios are as follows:

i. Working Capital Turnover Ratio

ii. Inventory/Stock Turnover Ratio
iii. Debtors Turnover Ratio
iv. Creditors Turnover Ratio
 v. Fixed Assets Turnover Ratio
vi. Capital Turnover Ratio

i.Inventory/Stock Turnover Ratio:

Year M Ma Mar  Mar 2007 Mar 2006

ar  r 2 200
20 00 8
10 9
Sales 12 14 104 8331.3 5628.62
89 14 08.8 4
4. 4.1 9
01 9
I 11 98 792 1152.60 609.12
n 16 5.4 .35
v .3 0
e 2
nt
o
ri
e
s
Inventory 11.55 14.35 13.13 7.22 9.24
Turnover
Ratio

Interpretation: How many times we turn our stock with related to total sales which are
important as per operation perspective. Company has sound enough this ratio for minimize
his carrying cost.

ii.Working Capital Turnover Ratio:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
10 09
Sales 12 14 104 8331.3 5628.62
89 14 08.8 4
 4. 4.1 9
01 9
Working 39 34 166 1879.71 737.42
Capital 50 82. 1.88
.4 34
0
Ratio 3.26 4.06 6.26 4.43 7.63

Interpretation: Working capital is the main tool for running our business activity. This ratio
is decrease with compare to past year analysis which is alarming situation.

iii.Debtors Turnover Ratio:

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
10 09
Sales 12 14 104 8331.3 5628.62
89 14 08.8 4
4. 4.1 9
01 9
Debtors 19 27 216 1219.79 906.03
81 19. 8.12
.2 45
5
Debtors 6.5 5.2 4.8 6.83 6.2
Turnover
Ratio

Interpretation: This ratio is as better as it can reduce because cash in hand is better than
with compare to in the market. Company has just good this ratio but company should make
some policy to minimize this ratio.

iv. Debtors Collection Period =

12 months
DTR

Year M M Ma Mar 2007 Mar 2006

ar  ar  r 20
20 20 08
 10 09
DTR 6.5 5.2 4.8 6.83 6.2
Month 12 12 12 12 12
Ratio 1.84 2.30 2.5 1.75 1.93

VALUATION RATIO:

i.Price Earnings Ratio:

A valuation ratio of a company's current share price compared to its per-share earnings.
P/E Ratio= Market Price Per Share / Earning Per Share

Market Price per Share=148.90 Earnings per Share=19.51

Price Earnings Ratio=7.63

Interpretation: It is the very important ratio for the valuation of the company. This ratio is
important for comparing one company to another company. Currently company’s P/E ratio is
7.63. It’s mean that investors have to invest 7.63 rupees for earning 1 rupee. Which is far
enough for short term perspective?

ii.P/B Ratio:
A ratio used to compare a stock's market value to its book value. It is calculated by dividing
the current closing price of the stock by the latest quarter's book value per share. 

P/B Ratio= Current Market Price

Book Price of the Stock

Current Market Price=148.90 Book Price of the Stock=105.48

P/B Ratio=1.41
Interpretation: It is also a valuation ratio which is calculated for the investor’s perspective.
After this analysis we can say that company has not much difference in its book value and
market value.

EQUITY RESEARCH
Research is a function of the market and is influenced by the swings in the market.
When the objective of the analysis is to determine what stock to buy and at what price, there
are two basic methodologies

1. Fundamental Analysis maintains that markets may misprice a security in the short
run but that the "correct" price will eventually be reached. Profits can be made by
trading the mispriced security and then waiting for the market to recognize its
"mistake" and reprise the security.
2. Technical Analysis maintains that all information is reflected already in the stock
price. Trends 'are your friend' and sentiment changes predate and predict trend
changes. Investors' emotional responses to price movements lead to recognizable
price chart patterns. Technical analysis does not care what the 'value' of a stock is.
Their price predictions are only extrapolations from historical price patterns.

Investors can use any or all of these different but somewhat complementary methods for
stock picking. For example many fundamental investors use technicals for deciding entry and
exit points. Many technical investors use fundamentals to limit their universe of possible
stock to 'good' companies.

The choice of stock analysis is determined by the investor's belief in the different paradigms
for "how the stock market works".

Brief discussion on fundamental and technical analysis is given below:

FUNDAMENTAL ANALYSIS
Fundamental analysis of a business involves analyzing its financial statements and health, its
management and competitive advantages, and its competitors and markets. When applied to
futures and forex, it focuses on the overall state of the economy, interest rates, production,
earnings, and management. When analyzing a stock, futures contract, or currency using
fundamental analysis there are two basic approaches one can use; bottom up analysis and top
down analysis.[1] The term is used to distinguish such analysis from other types of
investment analysis, such as quantitative analysis and technical analysis.

Fundamental analysis is performed on historical and present data, but with the goal of making
financial forecasts. There are several possible objectives:

 to conduct a company stock valuation and predict its probable price evolution,
 to make a projection on its business performance,
 to evaluate its management and make internal business decisions,
 to calculate its credit risk.

Fundamental analysis includes:

1. Economic analysis
2. Industry analysis
3. Company analysis

On the basis of these three analyses the intrinsic value of the shares are determined. This is
considered as the true value of the share. If the intrinsic value is higher than the market price
it is recommended to buy the share. If it is equal to market price hold the share and if it is less
than the market price sell the shares.

1. Economic Analysis:

The Economy of India is the eleventh largest in the world by nominal GDP and the fourth
largest by purchasing power parity (PPP). The country's per capita GDP (PPP) is $3,290
(IMF, 127th) in 2010. Following strong economic reforms from the post-independence
socialist economy, the country's economic growth progressed at a rapid pace, as free market
principles were initiated in 1990 for international competition and foreign investment.

Social democratic policies governed India's economy from 1947 to 1991. The economy was
characterized by extensive regulation, protectionism, public ownership, pervasive corruption
and slow growth. Since 1991, continuing economic liberalization has moved the country
towards a market-based economy. A revival of economic reforms and better economic policy
in first decade of the 21st century accelerated India's economic growth rate. In recent years,
Indian cities have continued to liberalize business regulations. By 2008, India had established
itself as the world's second-fastest growing major economy.

However, as a result of the financial crisis of 2007–2010, coupled with a poor monsoon,
India's gross domestic product (GDP) growth rate significantly slowed to 6.7% in 2008–09,
but subsequently recovered to 7.2% in 2009–10, while the fiscal deficit rose from 5.9% to a
high 6.5% during the same period. India’s current account deficit surged to 4.1% of GDP
during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 2009–2010,
according to the state Labor Bureau, was 9.4% nationwide, rising to 10.1% in rural areas,
where two-thirds of the 1.2 billion populations live.

India's large service industry accounts for 57.2% of the country's GDP while the industrial
and agricultural sector contribute 28% and 14.6% respectively. Agriculture is the
predominant occupation in India, accounting for about 52% of employment. The service
sector makes up a further 34% and industrial sector around 14%. However, statistics from a
2009-10 government survey, which used a smaller sample size than earlier surveys, suggested
that the share of agriculture in employment had dropped to 45.5%.

Major industries include agriculture telecommunications, textiles, chemicals, food

processing, steel, transportation equipment, cement, mining, petroleum, machinery,
information technology-enabled services and pharmaceuticals. The Labor force totals 500
million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea,
sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish. In 2009-2010,
India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia
and Germany. Previously a closed economy, India's trade and business sector has grown fast.
India currently accounts for 1.5% of world trade as of 2007 according to the World Trade
Statistics of the WTO in 2006, which valued India's total merchandise trade (counting exports
and imports) at $294 billion and India's services trade at $143 billion. Thus, India's global
economic engagement in 2006 covering both merchandise and services trade was of the order
of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's total trade in
goods and services has reached a share of 43% of GDP in 2005–06, up from 16% in 1990–
91.

2. Industry Analysis:

Agriculture in India has a long history, dating back to ten thousand years.

Today, India ranks second worldwide in farm output. Agriculture and allied sectors like
forestry and logging accounted for 16.6% of the GDP in 2007, employed 52% of the total
workforce and despite a steady decline of its share in the GDP, is still the largest economic
sector and plays a significant role in the overall socio-economic development of India.

India is the largest producer in the world of fresh fruit, anise, fennel, badian, coriander,
tropical fresh fruit, jute, pigeon peas, pulses, spices, millets, castor oil seed, sesame seeds,
safflower seeds, lemons, limes, cow's milk, dry chillies and peppers, chick peas, cashew nuts,
okra, ginger, turmeric guavas, mangoes, goat milk and buffalo milk and meat. Coffee. It also
has the world's largest cattle population (281 million). It is the second largest producer of
cashews, cabbages, cotton seed and lint, fresh vegetables, garlic, egg plant, goat meat, silk,
nutmeg. mace, cardamom, onions, wheat, rice, sugarcane, lentil, dry beans, groundnut, tea,
green peas, cauliflowers, potatoes, pumpkins, squashes, gourds and inland fish. It is the third
largest producer of tobacco, sorghum, rapeseed, coconuts, hen's eggs and tomatoes. India
accounts for 10% of the world fruit production with first rank in the production of mangoes,
papaya, banana and sapota.

3. Company Analysis:

Main Tools of Company Analysis

 1. Earnings per Share – EPS
2. Price to Earnings Ratio – P/E
3. Projected Earnings Growth – PEG
4. Price to Sales – P/S
5. Price to Book – P/B
6. Dividend Payout Ratio
7. Dividend Yield
8. Book Value
9. Return on Equity

1. Price to Sales – P/S

One ratio we can use is Price to Sales or P/S ratio. This metric looks at the current stock price
relative to the total sales per share. We can calculate the P/S by dividing the market cap of the
stock by the total revenues of the company.

We can also calculate the P/S by dividing the current stock price by the sales per share.

P/S=MarketCap/Revenues or P/S = Stock Price / Sales Price Per Share

Much like P/E, the P/S number reflects the value placed on sales by the market. The lower
the P/S, the better the value, at least that’s the conventional wisdom. However, this is
definitely not a number you want to use in isolation. When dealing with a young company,
there are many questions to answer and the P/S supplies just one answer.

Current Market Cap =13133.72

Net Sales = 12894.01

Price to Sales Ratio = 1.0185

2. Price Earnings Ratio:

A valuation ratio of a company's current share price compared to its per-share earnings.
P/E Ratio= Market Price Per Share / Earning Per Share

Market Price per Share=148.90 Earnings per Share=19.51

Price Earnings Ratio=7.63

Interpretation: It is the very important ratio for the valuation of the company. This ratio is
important for comparing one company to another company. Currently company’s P/E ratio is
7.63. It’s mean that investors have to invest 7.63 rupees for earning 1 rupee. Which is far
enough for short term perspective?

3. Price to Book Ratio
Investors looking for hot stocks aren’t the only ones trolling the markets. A quiet group of
folks called value investors go about their business looking for companies that the market has
passed by.

Some of these investors become quite wealthy finding sleepers, holding on to them for the
long term as the companies go about their business without much attention from the market,
until one day they pop up on the screen, and some analyst “discovers” them and bids up the
stock. Meanwhile, the value investor pockets a hefty profit.

Value investors look for some other indicators besides earnings growth and so on. One of the
metrics they look for is the Price to Book ratio or P/B. This measurement looks at the value
the market places on the book value of the company.

We can calculate the P/B by taking the current price per share and dividing by the book value
per share.

P/B = Share Price / Book Value Per Share

Like the P/E, the lower the P/B, the better the value. Value investors would use a low P/B is
stock screens, for instance, to identify potential candidates.

P/B Ratio= Current Market Price

Book Price of the Stock

Current Market Price=148.90

Book Price of the Stock=105.48
P/B Ratio=1.41

4. Dividend Payout Ratio

Companies that pay higher dividends may be in mature industries where there is little room
for growth and paying higher dividends is the best use of profits (utilities used to fall into this
group, although in recent years many of them have been diversifying).

Either way, we must view the whole DPR issue in the context of the company and its
industry. By itself, it tells us very little.

DPR = Dividends Per Share / EPS

Dividends Per Share = 8.77

Earning Per Share = 19.51

Dividend Payout Ratio = 45%

5. Dividend Yield
If you are a value investor or looking for dividend income then there are a couple of
measurements that are specific to you. For dividend investors, one of the telling metrics is
Dividend Yield.

This measurement tells you what percentage return a company pays out to shareholders in the
form of dividends. Older, well-established companies tend to payout a higher percentage then
do younger companies and their dividend history can be more consistent.

You calculate the Dividend Yield by taking the annual dividend per share and divide by the
stock’s price.

Dividend Yield = Annual dividend per share / Stock's price per share

Annual dividend per share = 8.77

Stock's price per share = 150.45

Dividend Yield = 5.82%

6. Book Value

How much is a company worth and is that value reflected in the stock price?

There are several ways to define a company’s worth or value. One of the ways you define
value is market cap or how much money would you need to buy every single share of stock at
the current price.

Another way to determine a company’s value is to go to the balance statement and look at the
Book Value. The Book Value is simply the company’s assets minus its liabilities.

Book Value = Assets - Liabilities

In other words, if you wanted to close the doors, how much would be left after you settled all
the outstanding obligations and sold off all the assets.

A company that is a viable growing business will always be worth more than its book value
for its ability to generate earnings and growth.

Assets = 16615.97  

Liabilities = 9304.00

Book Value = 7311.97

TECHNICAL ANALYSIS
Technical analysis is the analysis of past price changes in the hope of forecasting future price
changes. Technical analysis is a security analysis discipline for forecasting the future
direction of prices through the study of past market data, primarily price and volume.
A stock or commodity market analysis technique which examines only market action such as
prices, trading volume and open interest. It is the study of market behavior which tries to
discern patterns which enhance position taking. Among some of the tools and indicators used
are: charts, volume, open interest, put to call ratios, moving averages, and oscillators. This
compares to Fundamental Analysis and Conditional Analysis. Evaluating investments by
assuming that the future price of a security can be predicted by analyzing the past
performance of the stock and the market as a whole. Technicians are "number crunchers."
This is the opposite of Fundamental Analysis.
A method of evaluating securities by analyzing statistics generated by market activity, such
as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic
value, but instead use charts and other tools to identify patterns that can suggest future
activity. Technical analysts believe that the historical performance of stocks and markets are
indications of future performance.

In a shopping mall, a fundamental analyst would go to each store, study the product that was
being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit
on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of
the products in the store, the technical analyst's decision would be based on the patterns or
activity of people going into each store.

In the technical analysis we have compare past stock price of Deepak Fertilizer
with BSE SENSEX. Such that, how the stock price of a particular company
moves with the main SENSEX where company is listed?

Stock Prices of Jan. and Feb. of DEEPAK FERTILISERS &

PETROCHEMICALS CORP. LTD.
DATE OPEN HIGH LOW CLOSE VOLUME
25-02- 11 149.9 153 147.95 150.45 48538
24-02-11 154.85 154.85 148 148.9 38052
22-02-11 160 160 153.2 154.35 118248
21-02-11 169.7 169.7 156.9 159.65 108432
18-02-11 167 171.75 160.4 162.4 50649
17-02-11 171.2 171.85 166.4 168.8 58049
16-02-11 169.4 171.9 165 170.1 108803
15-02-11 162.2 169 160.25 167.2 69918
14-02-11 159 165 159 161.85 222789
11-02-11 155 160.7 146.3 159 330620
10-02-11 150.35 155.8 145.3 152.1 112155
09-02-11 157.85 157.85 150.15 154 68815
08-02-11 163.5 164.65 154.7 158.35 61311
07-02-11 162 166.45 161.85 164.35 70727
04-02-11 161.7 166.25 161.1 162.85 95400
03-02-11 157 162.8 156.3 160 133861
02-02-11 162.35 162.95 156.1 157.45 93929
01-02-11 161 162.8 157 158.85 82148
31-01-11 155.7 162.7 155 159 84052
28-01-11 154 157.85 149 156.35 31544
27-01-11 163 163 155.5 156.85 47629
25-01-11 167.8 168 158.65 162 72885
24-01-11 170 172.2 165 165.7 31612
21-01-11 172.95 173.5 168.55 169.8 16607
20-01-11 173.8 173.9 169.05 170.55 11214
19-01-11 171.35 175.6 171.2 173.95 13040
18-01-11 176 176.8 170.05 171.3 14218
17-01-11 176.5 179.9 174.5 174.9 18759
14-01-11 182.2 184.4 178.3 179.15 54442
13-01-11 177.25 186 177.25 182.45 81697
12-01-11 176.5 179.3 174.1 177.45 43143
11-01-11 170 178.4 169.5 175.1 104778
10-01-11 179.95 180 166.2 167.65 47579
07-01-11 179.9 184.8 175 176.4 114895
06-01-11 174 187 172 180.05 436708
05-01-11 172 180 170.1 176.9 215492
04-01-11 169.5 172.25 168.5 170 624605
Technical Charts of Stock Prices of Deepak Fertilizer:
Chart 1
Chart 2

Stock Prices of Jan. and Feb. of BSE 30 STOCKS SENSEX

 Date Open High Low Close
3 January  20,621.61  20,664.80  20,531.00  20,561.05 
4 January  20,617.38  20,651.21  20,449.01  20,498.72 
5 January  20,509.95  20,509.95  20,243.95  20,301.10 
6 January  20,395.50  20,425.85  20,107.17  20,184.74 
7 January  20,163.85  20,210.62  19,629.22  19,691.81 
10 January  19,714.42  19,720.43  19,158.43  19,224.12 
11 January  19,279.77  19,431.56  19,003.60  19,196.34 
12 January  19,353.34  19,574.63  19,048.56  19,534.10 
13 January  19,492.30  19,522.38  19,136.27  19,182.82 
14 January  19,198.04  19,447.82  18,811.96  18,860.44 
17 January  18,911.43  19,018.94  18,779.38  18,882.25 
18 January  18,983.20  19,120.62  18,933.47  19,092.05 
19 January  19,153.31  19,167.06  18,898.56  18,978.32 
20 January  18,892.43  19,100.26  18,794.73  19,046.54 
21 January  19,007.08  19,065.34  18,932.40  19,007.53 
24 January  19,095.69  19,194.46  18,998.38  19,151.28 
25 January  19,227.42  19,340.99  18,949.44  18,969.45 
27 January  19,086.69  19,086.69  18,656.05  18,684.43 
28 January  18,708.62  18,723.12  18,235.45  18,395.97 
31 January  18,226.21  18,395.09  18,038.48  18,327.76 
1 February  18,425.18  18,452.06  17,982.17  18,022.22 
2 February  18,216.91  18,306.00  18,042.61  18,090.62 
3 February  18,113.73  18,466.21  18,064.61  18,449.31 
4 February  18,450.07  18,542.20  17,926.98  18,008.15 
7 February  18,135.02  18,180.94  17,977.01  18,037.19 
8 February  18,141.51  18,141.51  17,742.18  17,775.70 
9 February  17,723.99  17,864.32  17,508.35  17,592.77 
10 February  17,603.29  17,636.88  17,362.59  17,463.04 
11 February  17,519.13  17,752.56  17,295.62  17,728.61 
14 February  17,940.16  18,227.62  17,857.12  18,202.20 
15 February  18,260.08  18,361.66  18,050.48  18,273.80 
16 February  18,273.06  18,358.84  18,216.12  18,300.90 
17 February  18,345.12  18,532.61  18,233.79  18,506.82 
18 February  18,564.08  18,690.97  18,159.82  18,211.52 
21 February  18,238.54  18,457.49  18,082.66  18,438.31 
22 February  18,390.72  18,457.90  18,187.33  18,296.16 
23 February  18,233.77  18,377.48  18,150.01  18,178.33 
24 February  18,135.12  18,135.12  17,559.70  17,632.41 
25 February  17,775.08  17,812.44  17,469.97  17,700.91 
28 February  17,811.08  18,296.53  17,718.88  17,823.40 

‘
Technical Charts of BSE SENSEX:
Chart 3
‘’’

Chart 4

Research Analysis:
Two month low price of stock is 147.95
Two month high price of stock is 186.00
Percent change = 25.71%

Two month low price of BSE SENSEX is 17463.04

Two month high price of BSE SENSEX is 20561.05
Percent change = 17.7

1. Stock has high sensitivity with compare to BSE SENSEX.

2. If we see that since Jan. stock price and sensex price constantly decrease. So we can say
that stock have positive beta factor with related to sensex.

3. In the starting time of Jan stock made a resilience level at 180 Rs. But due to increase
number of seller in the market, stock fall down to near 150 Rs.

4. Currently stock trade at the price range between 150-155. So we can predict that in the
shorter future time stock will be trade between 153-158 ranges. Because there is not much
potential in the market.

5. Currently stock trade at their lower rate so we can say that stock will be trade at slightly
high price.

6. If we see candlestick chart of stock and BSE Sensex here is similar movement. So stock
prices changes similar to the Sensex price in the future.

CONCLUSION
Doing this project has been a good learning for me and helped me to understand the Indian
agriculture scenario. From decades back to the 21st century, India has come a long way in the
agriculture sector. The Indian Agriculture Industry is on the brink of a revolution that will
modernize the entire food chain, as the total food production in India is likely to double in the
next ten years. That will become very beneficial for our entire economy. So that we can say
that Indian agriculture industry have a great potential for our growth.
This research also helps me to increase my analytical power and to understand company’s
financial statement and its means.
In the first part of the project, I have make analysis of company’s balance sheet, profit and
loss statement and ratios. Such things helped me to understand company’s financial position
with respect to decisions of managers and investors of the company. This analysis is part of a
fundamental analysis to predict the future price movement of the stock and to judge about the
growth potential of the company in future.
In the second part of the project, I have made fundamental and technical analysis for equity
research to know about future price movement of the stock of the company.
In the fundamental analysis, I made research on all the external factors to know about future
price movement. In the technical analysis, I made analysis of past price movement to predict
the future price change of the stock. This technical analysis I have done by comparing the
historical price of BSE SENSEX.

So this project helped me to understand all related scenario for the company research analysis
with respect to investors as well as managers of the company.