They believe the market overreacts to good and bad news, causing stock price movements that do not correspond with the company’s long-term fundamentals. The result is an opportunity for value investors to profit by buying when the price is deflated. The very definition of value investing is subjective. Some value investors only look at present assets/earnings and don place any value on future growth. Other value investors base strategies completely around the estimation of future growth and cash flows. Despite the different methodologies, it all comes back to trying to buy something for less than its worth.
The purpose behind this project was to learn the mannerisms of the stock market trading and to understand the basic difference between speculation in the stock market and some study based investments undertaken to derive value. . The reason behind choosing this project that it provides hands on experience with what goes on in the stock market on a day to day basis. The field of equity research is very vast and one has to look into various specks of the functioning of the company to get to any conclusion about the possible performance of the company in the market.
Investors like warren buffet made a proper research about the companies. The field of equity research is full of challenges. It is your door to fame, fortune and, above all, professional challenge. In a world that is shrinking in size due to information technology and blurring boundaries between nations, the stock market (or the equities market) is all set to grow in size. The project is done with Kandahar Securities Ltd. A very well known company in the lied of stock broking and capital market services sector.
This project gave me a chance to get valuable insights from a hoard of vastly experienced people in this field and to get various approaches each one adopts to evaluate various companies. The project was carried out in the Pun office of Kandahar Securities Ltd. Which is located on Bankcard road. The duration of the project was two months. These two months were not only limited to learning and devoting time towards equity research but it also provided an insight on what various services such broking houses provide ND what efforts are required to manage such organizations.
The project initiated with understanding the dynamics of the sugar sector, the threats and opportunities surrounding this sector, the government policies and also the global scenario with respect to the sugar sector. Based on a few parameters 1 company was short listed from a group of about 12 companies. This company was further studied in detail with respect to their financial and the management s future plans regarding the functioning of the company, their expansion plans, various news about these company and its global forays. Based on the complete study of the companies such companies like Baja] Hindustan Ltd. Cooked promising and with a view to derive maximum value from the investment Baja] Hindustan, the company with strong financial, competent management personnel, promising global forays was recommended as a buy or hold share. OBJECTIVE: To analyze the sugar industry and find the future growth opportunities. To set up different parameters on the basis of which the listed sugar companies will be compared so as to select one best company. To carry out the company analysis of the selected company and to suggest whether it s a viable investment option.
To look at the historical performance data of the company and estimate the future performance of stocks. Looking at this information to gain an insight on the company measure its future performance by examining related economic, financial and other qualitative and quantitative factors. To estimate a value that an investor can compare with the security’s current price and figure out what sort of position to take with that security. SCOPE: The scope of this project is limited to only one sector I. E. Sugar sector. This project is concerned with only one sector of companies in the stock market.