COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Bangalore university
REPORT ON

MASTER OF BUSINESS ADMINISTRATION

COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF

SELECTED STOCK (MAHINDRA AND SUZUKI)

Submitted by

Gagandeep J

Reg No: P03EC22M015024

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MAHINDRA AND MAHINDRA COMPANY

Introduction:
Mahindra & Mahindra Limited is an Indian multinational car manufacturing
corporation headquartered in mumbai, maharashtra, India. It was established in
1945 as Muhammad & Mahindra and later renamed as Mahindra and Mahindra. It
is one of the largest vehicle manufacturers by production in India and the largest
manufacturer of tractors in the world. It is a part of the Mahindra group, an Indian
conglomerate.
It was ranked 17th on a list of top companies in India by fortune india 500 in 2018.
Its major competitors in the Indian market include maruti suzuki and tata motors.
Homegrown auto major Mahindra & Mahindra (M&M) on Tuesday announced the
acquisition of majority stake in the wholly-owned arm of Ford Motor Co (FMC) that
will see it take over the automotive business of the US auto major in India. The
new entity will develop the market and distribute Ford brand vehicles in India. The
JV will also sell both - Mahindra and Ford - cars in the high-growth emerging
markets. As part of the agreement, M&M will acquire 51% stake in a wholly-owned
arm of the US auto major -- Ardour Automotive Private Ltd, presently a
whollyowned subsidiary of Ford Motor Company Inc, the USA for around Rs 657
crore, the Indian firm said in a regulatory filing. mahindra & Total Sales Down 21%
To 43,343 Units In September

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'Our combined strengths are a potent recipe for success'

The balance 49% equity shareholding in Ardour will be held by FMC and/or any of
its affiliates, it added. M&M said it is committed to fund in the aggregate, for
acquiring 51% stake and for the future operations of the company, an amount not
exceeding Rs 1,400 crore which includes the likely investment of about Rs 657
crores for 51 per cent in the JV. The new venture will acquire the automotive
business of Ford India Pvt Ltd (FIPL), a wholly-owned subsidiary of FMC, and has
been engaged in the automotive business in India since 1995. The automotive
business to be acquired includes vehicle manufacturing plants of Ford India at
Chennai and Sanand.

History

**Maruti Udyog Limited: Pioneering Excellence in Indian Automotive History**

In 1981, the Government of India and Suzuki Motor Corporation birthed Maruti
Udyog Limited, evolving from a joint venture to a symbol of automotive prowess.
The early '80s saw Maruti as an importer, but in 1983, local production began with
the iconic Maruti 800. The company ventured into international markets in 1987,
sending cars to Hungary. By 1988, the Gurgaon plant's capacity soared to 100,000
units per year.

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The '90s marked a surge with the Maruti 1000, Zen, Esteem, and the millionth
vehicle milestone in 1994. Post-1991 liberalization, Suzuki increased its stake to
50%, forging a robust joint venture.
Entering the new millennium, Maruti pioneered customer service with India's first
call center in 2000. The company diversified its portfolio, introducing models like
the Alto and venturing into the used car market with Maruti True Value in 2001.
Strategic partnerships continued, leading to the establishment of "Maruti Suzuki
Automobiles India" in 2006. The company embraced environmental responsibility
with cleaner cars meeting Bharat Stage III emission standards.
Milestones kept coming: the ten millionth vehicle sold in 2012, a market share
exceeding 45% in 2014, and the fifteen millionth vehicle produced in 2015.
In a visionary move in 2019, Maruti Suzuki announced the phase-out of diesel car
production by April 2020, aligning with Bharat Stage VI emission standards.
Chairman R.C. Bhargava emphasized a focus on Corporate Average Fuel Efficiency
(CAFE) norms and a growing market for Compressed Natural Gas (CNG) vehicles.
Looking ahead, Maruti Suzuki plans to launch its first electric car, the Maruti Suzuki
WagonR Electric, in the second half of 2021, marking a stride toward sustainable
mobility.
Maruti Udyog Limited's journey remains a testament to Indian automotive
excellence, blending innovation with every mile traveled.

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EXECUTIVE SUMMARY

“Comparative Study on Risk and Return Analysis of Selected stock” is an

attempt to analyze weather the Return and Risk is impact on Indian stock
market. The report was conducted in Share khan Ltd. The data is collected
for the period 2016 to 2020 to analyze the impact of Risk and analysis.

The 1st chapter comprises of the introduction about the topic,

Information about Industry profile, and also Company profile, it includes
Information about Promoters, vision, mission & quality policy,
products/services, Infrastructure facilities, Competitors, SWOT analysis,
Future growth and Financial information.

The 2nd chapter comprises the Theoretical background of the study and the
Literature Review with the Research gap.

The 3rd chapter comprises the Research Design. It is consist the

Statement of Problem, Need of the study, Objectives of the study, Scope
of the study, Research Methodology, Limitations.

The 4th chapter comprises the Analyze part where the Statistical tool
is apply to know the Impact regulation on insider trading, the tables
and graphs is applied to understand the study.

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Chapter-1
Introduction:
Before 1990’s the primary place of investment have been financial
institution deposits, gold, property and such other forms of tangible
belongings however for the past few years we have been witnessing
numerous funding opportunities developing inside the shape of
primary and secondary market for the reason that globalization
which had its inception for the duration of ninety’s overseas capital
flowing to India. New multinational company entered the
marketplace and quite a few investment opportunities were opened
to the folks who stored their saving in financial institution and other
sort of constant assets. The rapid increase of capital markets in India
has spread out new funding avenues for investors, who want to see
better returns on their investments and investible price range and
are looking for higher approaches of investing their surplus finances.
The increase in the variety of funding opportunities has brought
about portfolio management gaining lot of importance and the
cutting-edge scientific techniques are followed to discover the

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proper combination of securities on the way to result in capital

appreciation in the end and a better yield on go back for the invested
price range of the investor. The topic analysis of risk and return in
the baking had been selected because a lot of investors are making
investment in the shares of baking company. The investors have to
be aware of the risk involved in making the investment. So, the
investors have to calculate the variance and the standard deviation
value to know the present condition of the company to know
whether there is any risk in investing in the particular company and
does the company offer good returns.

The baking which I have been selected for research having different
growth strategies and difference in revenue, profitability and market
capitalization. Currently, overall, baking in India is considered as
fairly mature in terms of supply, product range and reach-even
though reach in rural India still remains a challenge for the private
sector and foreign banks.

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INDUSTRY PROFILE
FINANCIAL MARKET

Money related bazaars stay convenient to spring liquidness in the

agenda in addition intended for horizontal salaried of the frameworks.
These corporate segments stay the efforts that spring agencies to
obtaining in addition selling of budgetary belongings in addition
supervisions. The budgetary bazaars manage the desires of ventures
through the gracefully of principal since diverse sources.

Services of investment banks

• Capital advertise administrations:. Vertebral up commitment and

worth reinforce the association deal (embracing, blend, and
increment elective charges). Modify past due obligations into sorted
out record things.
• Brokeraging administrations: serving the buy and offer of fiscal
things amidst buyers and sellers. A current period theory agents
trade business organizations to self trading examiners all through
world . The assurance of trading on inline and disengaged stand
offered by a money related affiliation.
• Personal banking : in height one pay individuals are furnished
particular organizations by private bank. A monetary organizations
sorting out must demand an alternate to meet the models for a
private money related organizations.

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Investment services

• Protection services: This is an essentially authority keeping up and

handling of the creation protections, total measure of advantages on the
planet is almost US$ 100 trillion.
• Hedge finance management : fence money the executives gracefully the
assets as often as possible utilize the administrations of more prominent
of division at more noteworthy venture banks to move out their
exchange.
• Investment managing : The every now and again known to characterize
organizations which proceed onward aggregate speculation stocks. The
administrations enrolled under the protections and exchange commission
customer speculation is the fundamental wellspring of capital.

As indicated by recognized premise again arranged into two sorts

1. Organized financial markets

2. Non- organized financial markets

As per useful principle change associated bazaars are agreed into 2 sorts

1. MONEY MARKET

Currency advertise is where we can raise transient capital

Interbank call money market

Bill market and

Bank loan markets Etc

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E.g., treasury bills, commercial papers, CD’s etc

2. CAPITAL MARKET

Capital market is a residence somewhere we can promotion long term capital

Primary market

Secondary market

PRIMARY MARKET

A fundamental market gives new security on an exchange for associations,

governments, and various social affairs to procure financing through
commitment based or esteem based insurances. Fundamental markets are
energized by ensuring

packs containing adventure banks that set a beginning worth run for a given
security and regulate its arrangement to money related pros.

SECONDARY MARKET

The fundamental bazaar agreements through the new-fangled matters of

sanctuaries. Phenomenal assurances are imported the discretionary
market, which is generally identified as monetary trade or typical exchange.
"The assistant bazaar is the place offers are imported". It is a business
residence which offers fluidity to the offers gave in the basic market. As
such, the improvement of helper showcase hinge on upon the fundamental
market.

STOCK MARKET IN INDIA

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Typical trades stay the ideal kind of market protections whether of the
administration in addition partial government figures or supplementary
open frames as likewise for the offers in addition debentures gave through
the business entities. In the securities exchange, buys in addition deals of
offers stay influenced in the states of permitted rivalry. Management
protections are exchanged external the exchanging the type of finished the
counter deals or buy. The deals that are crash into in the exchanging
through individuals from the stock trades at the most attractive costs are
controlled by the fundamental laws of flexibly and request.

HISTORY OF STOCK EXCHANGE IN INDIA

The main routine trades working in the nineteenth era stayed individuals of
Mumbai arrangement in 1875 in addition Ahmadabad established up in
1894. These stayed composed as willful non benefit - causing relationship of
dealers to manage in addition ensure their inclinations. Prior to the
regulator on the protections beneath the structure in 1950, it was a state
focus in addition the Bombay protections indentures (control)
demonstration of 1925 cast-off to manage exchanging the protections. U
nder this demonstration, the Mumbai stock trade stayed supposed in 1927
in addition Ahmadabad in 1937. During the war blast, several routine trade
stayed composed not extended afterwards it become a central subject,
crucial representation stayed projected in addition a panel regulated
departed interested in the bill of protections guideline . built on the panel's
propositions in addition sweeping conversation, the protections contract
became law in 1956.

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1,4 COMPANY PROFILE

Company Name : Sharekhan ltd

Establishment Year : 1925

Nature of1Business : Service Provider Depository Service,Online Trading
Service & Technical Research

Number of1employees :Around 4000

Web :www .sharekhan.com

1.5 MANAGEMENT TEAM

1. Mr. Tarun Shah

Tarun Shah is CEO of the organization. A knowledge move on since

St. Xavier's College, Mumbai, Tarun Shah has begun his expert
lifespan in deals in addition promoting in a synthetic concoctions
organization. His hands-on methodology in addition thorough
involvement in deals drove him to developed difficulties that the
principal souks gave.

2. Mr. Shankar Vailaya

Shankar Vailaya is the Director ( Operational ) of the organization.

An alumni in business as of the University of Mangalore and an
Associate of the Member of the Institute of Chartered
Accountants of India.

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3. Mr. Jaideep Arora

The organization's Chairman (Products but also Technology) is

Jaideep Arora. Jaideep has a B.Tech from IIT Kanpur and a PGDM
at IIM Kolkatta. Jaideep joined Sharekhan as Head of Sales And
marketing in June 2000.

1.6Company Background:

SSKI(SS Kantilal Ishwarlal protections Private Limited ) bunch includes

Institutional and corporate fund. Although the recognized broking
dissection obliges the biggest local in addition remote recognized financial
specialists, the corporate account division centers around the specialty
zones, for example, framework, telecom and media SSKI clutches a sizable
part of the business sectors in every one of these fragments.

To stop a story, Sharekhan is a values centered association following its

ancestry to SSKI a veteran values arrangements organization with more
than 8 many years of involvement with the Indian financial exchanges

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1.7SSKI –Corporate Structure

SSKI Corporate Structure

Key Officials Designation

1. Mr. Shripal Morakhi Chairperson

2. Mr. Tarun Shah CEO

3. Mr. kaliyan Sales Head of Online sales

4. Mr. Hemendra Aggarwal Head of Cluster

5. Mr.Maneet Rastogi & Regional Sales Manager
Mr.Amit pal Singh

The connection's web exchanging and hypothesis website page –

www.sharekhan.com – was instigated on Feb 8, 2000.The website
gives users access to popular content as well as an exchange office
for retail customers all throughout the country. The place has a
chosen incorrect of more than 2 lakh clients and is known for its
language permitted, cash related professional agreeable language,
and mind blowing exploration. The total cost of transferring

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individuals right now exceeds 8 lakhs. While electronic trading

currently accounts for essentially more than 8% of the bit by bit
swapping stocks in India, Share khan alone accounts for 323 % of the
volumes transferred on the web.

The data and survey door has gained popularity among its supporters
as a result of its consistent dedicated to delivering patrons with best-
in-breed advancement as well as dominant bazaar material. The
detached has remained to tenancy clients pick informed decisions as
well as improve the route toward putting assets into pillories.

On April 17, 2002 Share khan impelled Hurry Trade, a net-based

executable submission that impersonates the agent depots nearby
congregation of extra evidence critical to the Day Sellers. This stayed
all of a sudden that a net-based exchange post of this check stood
existing to the dealers. Over the latest a half year Speed Trade has
transformed into an acknowledged average designed for the Day
Exchange social order finished the net.

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On Oct 1, 2007, Sharekhan once more pushed his more coordinated

Softwarebased object Craft Tiger, a web-based executable submission that
duplicates the delegate termini nearby gathering of extra evidence required
by the Day Sellers. It includes greater eminence, which shifts it on or after
adding that it partakes the mixed mortal designated for Equity & Supplies.

Shairekhan's crushed substance includes over thousand five

concentrations in 410 urban networks in India, 210 of which are
wholly confirmed brushwood. Sharekhan has always been
confided in bringing assets into development to grow its business.
The organisation has apparently utilised such a well names in the
IT industry, such as Microsoft, Oracle, Microsoft, Cambridge
Technologies, Nexgenix, Vigenette, and Verisign Financial
Technologies India Ltd., to figure the aforementioned transaction
engine in addition thereto. The Morakiya family holds a greater
part picket in the association, but, the most well brand, CITI
GROUP, has kept a larger part palisade in the association.

Sharekhan business

1. Business brokerage

2. Provider of services

3. Services of Depository

4. Services for Online Trading

5. Technical Investigation

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1.7 Vision and Mission

Vision

To stand the greatest marketing broking product in the selling

corporate of the financial exchange.

Mission

To teach in addition engage the distinct speculator to settle on

improved venture choices over superiority advices in addition unrivaled
administrations.

Quality Policy

Refusal of order for penny stocks.

User friendly online facility.

Setting up client’s exposure limits.

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PRODUCTS OF SHAREKHAN

ShareKhan’s Product Classic Account

This greatest empowers the client to trade complete the location

in addition it is sensible designed for the selling money related pro
who is coincidental contradicted in addition accordingly prefers to
place assets interested in stocks or else who don't employment
too consistently.

It empowers examiner towards acquisition and move stocks

operational nearby the going through geographies comparable
different wristwatch records. Composed Banking, De-tangle in

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addition Numeral agreements, Real-time selection following worth

signals in addition Immediate money trade.

Features

 Incorporation of On-line exchange, Saving Bank and Demit cooling

counts.

 Cash trade office counter to acquisitions besides freedom of offers

 Instant solicitation and trade assertion by E-mail

 Single shelter boundary designed for Cash in addition subordinates

and that's only the tip of the iceberg

 Establishment to come in esteem generate in addition assessment the

identical operational in showcase watch.

Trade Tiger

Exchange Tiger is a web-based programming submission which is

the mix of Impartiality and Possessions, that empowers us to
purchase in addition move offer in addition glowing as wares thing
right away. It is perfect for each customer of Sharekhan Ltd.

Features

 Integration of Fairness and Possessions Market

 Immediate request Performance and Authorization.

 Real-time spilling cites, spasm by-spasm graphs.

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 Hot keys like representative's incurable

 Back-up office to put exchanges on Through Receiver lines

Dial-N-Trade

Along with sanctioning entree designed for our argument on the

internet, the Characteristic in addition Employment Tiger Version
likewise bounces our Dial-n- change directions. Through this
government, entirely need to organize is control is dedicated
smartphone traces which might be 1800-22-7500, 39707500.

Capital Management

SSKI follow a multi-taught approach consolidating quantitative

investigation (utilization of models and factual examination),
crucial examination (industry and friends investigation, showcase
and financial patterns) and specialized examination (purchasing
and selling examples of stocks). The regular characteristics that
can be found over the entirety of our value portfolios are:

 High-quality protections.

 Holding generally broadened among industry segments

 Stock with satisfactory market capitalization and free buoy

 Stock focus according to customer hazard profile however by and

large to keep at reasonable levels

SSKI venture development includes three particular advances:

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1. Screening

2. Research

3. Model portfolio development

1.9 CHARGE STRUCTURE

Pre-Paid or AMC A/C

Money up front volume which resolve be copiously adjusted contrary to

brokerage that we compensated in year.

Schemes Brokerage will be charged

1. 750/- scheme 0.05 to 0.50

2. 1000/- scheme 0.045 to 0.45

3. 2,000/- scheme 0.030 to 0.40
4. 6,000/- scheme 0.025 to 0.025
5. 18,000/- scheme 0.020 to 0.20
6. 30,000/- scheme 0.015 to 0.18
7. 60,000/- scheme 0.010 to 0.15
8. 1,00,000/- scheme 0.0075 to 0.10

Least Margin of Rs. 25,000 for Opening an account

Yearly Upkeep Charges is nil for 1st year and Rs.400 for 2nd year.

Online Trade in Share

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Sharekhan clients cannister working exchange complete the PCs,

through web amid the bazaar controls.

Online Fund Transfer

They remain taking tie-up with 11 banks intended for online

reserve exchanging i.e., HDFC, ICICI, IDBI, CITI, Union Bank of
India, Oriental Bank of Commerce, AXIS, Bank of India and Yes
Bank.

Research based speculation counsel

Investment in addition exchanging administrations

Transaction besides courses

Knowhow based speculation instruments

Unified demat office

Buyer cannister exchange – Equities, Derivatives, Commodities

Infrastructure facilities

Sharekhan counselor outlets are intended to be put where clients

can come in contact with venture openings in an environment of
persuaded and solace the look and feel of office ventures has a
steady branch picture for the organization.

Early noticeable branches set up in the business spaces of potential

ventures zones extending between 75sft to 1000sft.

The significant segment of the branch territory devoted for client use.

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The furniture is adaptable in utilizing the branch for financial

specialist's motivation.

Connectivity to NSE AND BSE for exchanging offices.

Each branch involves prepared and qualified speculation

consultants to take care the necessities of the client.

COMPETITORS

1. Angel Broking

This organization is a 30 years of age organization built up in the year

1987. They are putting forth a broad scope of money related
arrangement helped by greetings tech computerized innovation. In
percent they have 16,308 exchanging terminals and a mammoth
system of sub-specialists. They resolved to give " Real estimation of
cash " to every one of their customers.

2. India bulls Housing Finance

India bulls Housing Investment Limited is a home loan moneylender

which is head quartered in New Delhi, India It is India's second biggest
lodging account organization and is controlled by the National
Housing Bank. It is a piece of Sameer Gehlaut's India bulls gathering
and contributes around 80% of the gatherings turnover.

3. Reliance Capital

Dependence Capital Limited (BSE: 500111, NSE: RELCAPITAL) is an

Indian expanded budgetary administrations holding organization

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advanced by Reliance Cluster. It is a integral of Nifty Midcap 50 and

MSCI Universal Trivial Top Catalog, is a piece of the Reliance Group.
It is among India's driving in addition record important money related
administrations organizations in the remote division. As on March 31,
2017, the total assets of the organization remained at Rs 16,548
crore, while its complete resources as on the date remained at Rs
82,209 crore.

SWOT ANALYSIS

Fig 1.0 SWOT Analyses

1. Strengths

Wide range of innovative financial products

Intensive research on all industry divisions

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Strong IT framework

One of the biggest system of branches across nation

Pan-India nearness with more than 1,500 outlets serving 950,000

clients across 450 urban areas

2. Weaknesses

Penetration limited to urban areas

Less exposures

Deficiency of cognizance between buyer

Not as much of effort on buyer retention

3. Opportunities

Increasing rustic market

Receiving Urban Minority

Educating people about the benefits of investment to increase target

audience

Essence on HNI’s ( in height net worth individual )

4. Threats

Strict Fiscal actions by Government & RBI

Access of external finance businesses in Indian market.

Aggressive promotional strategies by close competition .

Future Growth & Prospectus

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2,00,000 in addition to retail clients being adjusted through

concentrated call focuses.

Branches/Semi branches adjusting prosperous/forceful dealers through

high aptitude money related counselor.

250 free speculation supervisors/franchisee overhauling 50,000

exceptionally esteemed customers.

New activities Portfolio the executives Services and items exchanging.

McKinsey 7s framework:

In the 1980s, well-known business consultants Robert H. Waterman, Jr. and

Tom (who also established the MBWA— "Management by Walking Around"
concept and book In Search of Excellence) developed the McKinsey 7S
Framework. This was a strategic vision for enterprises, business units, and
teams as a whole. Structure, strategy, systems, skills, style, staff, and shared
values are the seven S's.

The model is most commonly used to examine and track changes in an

organization's internal status.

The model is based on the premise that these seven factors must be aligned
and mutually reinforcing for an organization to operate well. As a result, the
model can be used to determine what needs to be realigned in order to
improve performance, as well as to keep alignment (and performance)
during other sorts of change.

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OBJECTIVE OF THE MODEL:

To determine how effectively a company is positioned to fulfil its stated goal

 Improve a company's performance by examining the anticipated effects of

future changes within the company.

 During a merger or acquisition, align departments and processes.

 Determine the best way to put a proposed strategy into action.

A. STRUCTURE
Successful strategy implementation depends in the large part on a firm’s
“Organizational
Structure”.
Managing Director

General Manager

Manager

Sales Mngr Processing R and D Financial Technical

Deputy Manager

Sale s Mngr Processing R&D Financial Technical

Asst. Manager

Executive

Asst. Exec Helpers Trainees

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B. SYSTEM

Share Khan has been following a well-defined system for the past few years,
which involves recognising problems amongst departments and resolving
them through interconnected processes. It helps the organisation achieve its
goals by increasing its effectiveness and efficiency.

To measure quality, the corporation uses a high-tech system, and all divisions
are computerised, allowing for easier interaction between them.

The system department offers the essential technical support for screen-
based trading and all other departments' computerised operations. The
system department's many activities include.

 Development of various software applications required for the company's

operation.
 Maintenance of various software that allows for online trading with the NSE and
BSE.
NESS and BOSS are the main back-office system software used for NSE and BSE
trading calculations, respectively. Share Khan built this software in-house,
and they are utilised to keep track of all of the trades that take place each
day. It also does the required deduction computations and generates all
types of reports required by brokers and their clients.

C. SHARED VALUES

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Integrity: Share Khan is honest and forthright in their dealings with employees,
members.
Brokers shareholders and the communities in which they do business.
Commitment to excellence: company is committed to achieve highest level
of excellence. They believe in one another and encourage one another. They
recognise and respect one another's abilities. They aspire to be the best in
their field. There are no second-class citizens, and everyone's job is equally
vital. Empathy for the other person isn't a flaw. Suspicion creates suspicion,
and suspicion grows suspicion. It is critical to trust and be trusted, and
leaders require followers. The way a leader treats his or her followers has a
direct impact on the leader's effectiveness. It is necessary to establish
interpersonal business partnerships. It is required that you conduct yourself
in a professional manner. Respect and loyalty are earned, not given.
Circumstances can change shared values, but only with care, subtlety, and
concern for one another's needs.

D. STYLE

Style in McKinsey 7-S Framework refers to “How managers collectively spend

their time and attention and how they use symbolic behaviour”. “How
management acts are more important than what management says”.
Symbolic behaviour’s typically have more people on the board who
understand exploration or have headed exploration department.

The objective of the organization consists of 2 components:

 Corporate culture refers to the dominant values, beliefs, and norms that emerge

over time and become generally permanent aspects of organisational life.

 Management Style: What managers do is more important than what they say.

What do company executives do with their free time?

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What are they focusing attention on?

In Share Khan the leadership style followed is democratic group efforts. Here
all employees play an active part in giving suggestions for decision-making.
All major decisions are taken in the branches concerned. MD & DGM of the
concerned department take the major decisions.

E. STAFF

The term "Staff" has a special meaning in the McKinsey 7-S framework. The
term "Staff," according to Waterman and his colleagues, refers to how
businesses integrate new recruits into the main stream of their operations
and how they manage their careers as new entrants evolve into future
managers.

Share Khan ltd has a well-established method of recruiting graduates from

prestigious technical and management schools and offering on-the-job
training in a variety of functional areas before deciding on the final
placement in consultation with the individual concerned. Consultancy
services, Tele-recruitment, and advertisements are all used to fill positions.
In most cases, advertisements are only placed for high-level positions, and
only after consulting with the unit leader. HR staff are responsible for
carrying out HR department functions in accordance with established
procedures while interacting with sections and departments of both
divisions.

F. SKILLS

Waterman views talent to be one of an organization's most important

attributes or competencies. The term talents refers to the characters that

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

most people use to characterise a business. The company has the necessary
abilities to carry out the organization's strategy, for example.

 A thorough and specialised understanding of insurance

products;
 A high degree of communication specialty;  The ability to

convert people into clients.

Communication, leadership, administration, time management, computer

expertise, presentation skills, and team building are all talents that
employees possess at the executor level. They are also educated in other
areas, such as self-development.

The HR department recognises numerous areas where employees'

technical/professional skills can be updated on a regular basis, as well as
attitudinal adjustments that help to establish a positive work culture in all
areas.

G. STRATEGY

The concept of strategy the Share Khan expects to provide certain high-class
services, standard technology etc.

And these, the Share Khan hope to achieve by:

 Customers' demands must be understood, and greater products and services

must be provided.
 Using technology to provide rapid, efficient, and easy service to customers

 Developing and implementing superior risk management and investment

methods to provide policyholders with a sustainable and predictable return.

 A pioneering attitude and a commitment to excellence.

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

 Collaboration and teamwork are essential, as is a grasp of client demands and a

desire to meet them.

 The highest level of service.

 A continuously high level of performance.

 Share Khan has a wide range of professional prospects for people from various

backgrounds.
 Continue reading to learn more about how each of the functions contributes to

the company's growth.

FINANCIAL STATEMENTS

Y/e 31 Mar ( In .Rs Cr) Mar – 2021 Mar – 2020

Equity capital 37.50 37.50
Preference capital 50 50
Reserves 1220 1224
Net worth 1304 1210
Minor Intrest
Debtors 336 336
Deferred tax liabilities (net) --- 1.50

Total liabilities 2948 2859

Fixed Assets 102 76
Intangible Assets
Investments 501 3.50
Deferred Tax Asset (Net) 24.80 12.10

Net Working Capital (16) (129)

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Inventories ---- ----

Inventory Days ---- ----
Sundry debtors 253 316
Debtor days ---- ----
Other Current Assets 856 545

Sundry Creditors (978) (859)

Creditor Days ---- ----
Other Current Liabilities (169) (138)

Cash 1298 1564

Total Asset 2948 2859

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Chapter –2

CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

2.1 Conceptual background

These restrictions were further revised in 2002 and dubbed SEBI

Directions 1992. Financial management is important in all types of
business including banks and other financial institutions as well as
industrial and retail firms. Financial management involves the solution of
the three major decisions i.e., investment decision, financing decision and
dividend decision. A firm always strives to solve jointly for an optimal
combination of the three interrelated decisions to achieve the objective
of maximizing the value of the firms to its shareholders. Portfolio
management of financial institution assets means allocation of fund to
different security or stock having different degree of risk and varying rate
of return in such way the main goal of financial institution is maximize the
return and minimize the risk by selecting a portfolio of securities

2.2 Review of literature

 Abdul Rahman (2008):
There is a open minded of contemporary audit is to report the written work to
provide the aggregate index on securities business blend and to pull their
valuation and last outcomes of the study thought about for review

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

 Surinder S Yadav (2009):

The motivation behind his paper is to apprise the teaching abundant of S&P
CNX nifty register choosing in India securities advertise. The S&P CNX nifty
portfolio is an important serve of indiacomprising60mostasmanytimes as
much as possible.

 David L Scotland William Edward (1989):

Regarded the critical is of owning familiar stock and the mode of minify the risk.
Commented that these verity of financial risk hang son how heavily business
debt.

 Preethi Singh (1985)

Release of the elementary rules for selecting the companies invest in and
understanding bulk of return and risk is mainly primary to invest system.
Agreement with investor a risk antipathetic.

 Imlak Sheikh:
There is a period two words the need from or wake full understanding of
managerial delimitation of risk and return handling to conduct and lags
understanding risky and resolution market situation.

 Author: Varun Dewar (2013):

The ratio for this paper is look at the affiliated predictive ability of present earning
and its competence and currency flows for next term cash flows companies
Indian.

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

 Fredrick S Hiller:
The evaluation of proposed investment is bottom on the aggregate of risk
interested in it. This is interested with the source of the type of absolute well
defined and complete information that is required or a precise appraisal of
risk investment.

 Yoav Ganzach (2011):

This article investigates the relationship between discrimination of risk and

judgment looking forward return of financial resources. It suggest that for
unusual assets both risk and return judgement and receive from global
reference in the direction the assets.

 Author: Anil Sharma (2010):

The intent behind this paper is to arrange and take supply and streams hope of
research on securities inventory blend by assessing the open written work to
provide quick and basic days of research.

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Chapter – 3

RESEARCH METHODOLOGY

3.0 Statement of the problem

Measuring return authorize financial specialist examine how well they done and
it has ever in the opinion of future retunes. Safety inspection is worked around
likelihood the financial specialist are suffering with two indispensable properties
basis in the securities the drawn that can be average form holding securities and
the risk on that coming that is proficient will not be as much as the risk that was
standards has basic role of this journalist center upon return laying open and
how they are measured speculators demand to spread out anticipated that
profit affair would their flexibility for risk return is than over come upon power
and the rural reimburse in this speculation course of action and it is the key
techniques approachable to speculators in looking at alternative venture.

3.1 Need for the study

The study of risk and return analysis will guide the investors to segment the
portfolio of securities match up to diverse investment option in terms of risk and
return. The study of risk and return investigation helps the investor to pick up the
securities based on his choice. The study of this kind provides information about
the performance of various stocks in the market in terms of risk and return. This
paper emphasizes on the market fluctuations relations to the prices of Scrip’s
though the fundamental analysis.

3.3 Objective of the study

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

• To identify risk levels of different stocks for investment decisions.

• To study the Risk involved in the stocks of selected companies.
• To make comparative study of risk and return of financial services
companies

3.4 Limitation of the study

• This study has mainly relied on secondary data.
• The study is limited to data collected from ten companies listed under
Financial Services NSE.
• The prediction of the risk cannot be accurate since the fluctuations in the
market is based on other External factors and it is uncertain.
• The study is restricted to five years only.

Research Methodology

Category of Research :Exploratory Study

Category of data :Primary (Obtained from company sources
and secondary data (rom company report
and market)

Exploratory Research

Exploratory analysis is a way of researching a problem that has not

before been studied or fully reviewed. Exploratory research often
leads to a better understanding of the current issue, but it does
not usually lead in a conclusive result.

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Limitations of the study

1. The study is generally based on the data available in the various web

sources and other secondary data.

2. The study is only done on the stock traders, investors and brokers

Shivamogga city, Karnataka

3. The study is with respect to the customer’s perception on intervention

regulators on insider trading.

4. This results of the study might change in other places based on traders

and investors perceptions.

5. There are very less research papers available on this study

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Chapter – 4

ANALYSIS AND INTERPRETATION

1) YES BANK
Table 1: Calculation of Average Return of Yes Bank
Year Opening Share Closing Share (P1-P0) (P1-P0)/P0*100
Price Price
2016 172.6 309.35 136.75 79.23
2017 309.64 304.85 -4.79 -1.55
2018 307 276.1 -30.9 -10.07
2019 276 22.45 -253.55 -91.87
2020 22 15.6 -6.4 -29.09
Total Return -53.34
Average -10.67
Return
Analysis: In the above table shows that 5 years average return of Yes Bank.

In the above table shows that 5 years average return of Yes Bank.
Graph 1:

AVERAGE RETURN OF YES BANK

100.00
80.00
60.00
40.00
20.00
0.00
-20.00 2016 2017 2018 2019 2020
-40.00
-60.00
-80.00
-100.00
-120.00

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Interpretation: -
In the year 2015 the returns were 79.23, in the year 2019 the returns were -
29.09. The average return of the Yes Bank -10.65. So, we can interpret that high
risk involved investment in the yes bank.

Calculation of Standard Deviation of Yes bank

Table no 2
Year Return(R) Average Return(R) D = (R-R) D2
2016 79.23 -10.67 89.9 8082.01
2017 -1.55 -10.67 9.12 83.17
2018 -10.07 -10.67 0.6 0.36
2019 -91.87 -10.67 -81.2 6593.44
2020 -29.09 -10.67 -18.42 339.30
∑D2=15098.28

Calculation: Average Return = -10.67

Standard Deviation (Risk) = Variance = 1∕n-1(∑d²)
=1/5-1(15098.28) = 3774.57
Standard Deviation (Risk) = = = 61.43
Coefficient of variation = Average Return/ Standard Deviation -10.67/61.43
Coefficient of variation = -0.17

Interpretation:
The Standard deviation of the Yes bank is 61.43 and its variance is 3774.57

2) HDFC BANK

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Table 3: Calculation of Average Return of HDFC BANK

Year Opening Share Closing Share (P1-P0) (P1-P0)/P0*100
Price Price
2016 534.4 818.1 283.7 53.09
2017 819.5 943.05 123.55 15.08
2018 945.25 1212.68 267.43 28.29
2019 1228.55 861.9 -366.65 -29.84
2020 863.85 1151.4 287.55 33.29
Total Return 99.89
Average 19.98
Return
Analysis: In
the above table shows that 5 years average return of HDFC Bank.

Graph no: 2

AVERAGE RETURN OF HDFC BANK

60.00

50.00

40.00

30.00

20.00

10.00

0.00
2016 2017 2018 2019 2020
-10.00

-20.00

-30.00

-40.00

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Interpretation: -
In the year 2016 the returns were 53.09% and in the year 2020 the returns were
33.29. The average return of the HDFC Bank is 19.08. So, we can interpret that
low risk involved investment in the HDFC bank.

Table 4: Calculation of Standard Deviation of HDFC Bank

Year Return(R) Average D = (R-R) D2
Return(R)
2016 53.09 19.98 33.11 1096.27
2017 15.08 19.98 -4.9 24.01
2018 28.29 19.98 8.31 69.05
2019 -29.84 19.98 -49.82 2482.03
2020 33.29 19.98 13.31 177.15
∑D2=
3848.52

Calculation: Average Return = 19.98

Standard Deviation (Risk) = Variance = 1∕n-1(∑d²)
=1/5-1(3848.52) = 962.13
Standard Deviation (Risk) = = = 31.08
Coefficient of variation = Average Return/ Standard Deviation 19.98/31.08
Coefficient of variation = 0.64
Interpretation: The Standard deviation of the HDFC Bank is 31.08 and its
variance is 962.13,
3. KOTAK MAHINDRA BANK
Table 5: Calculation of Average Return of Kotak Mahindra Bank
Year Opening Share Closing Share (P1-P0) (P1-
Price Price P0)/P0*100
2016 682 872.2 190.2 27.89
2017 877 1047.8 170.8 19.48

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

2018 1049.05 1340.9 291.85 27.82

2019 1336 1296.05 -39.95 -2.99
2020 1294.9 1753 458.1 35.38
Total Return 107.57

Average 21.51
Return
Analysis:
In the above table shows that 5 years average return of Kotak Mahindra Bank

Graph no: 3

AVERAGE RETURN OF KOTAK

MAHINDRA BANK
40.00

35.00
30.00

25.00

20.00

15.00

10.00
5.00

0.00
2016 2017 2018 2019 2020
-5.00

Interpretation:
In the year 2016 the returns were 27.89 and in the year 2020 the returns were
35.38. The average return of the Kotak Mahindra Bank is 21.514. So, we can
interpret that low risk involved investment in the Kotak Mahindra Bank.

Table no: 6 Calculation of Standard Deviation of Kotak Mahindra Bank

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Year Return(R) Average Return(R) D = (R-R) D2

2016 27.89 21.51 6.38 40.70
2017 19.48 21.51 -2.03 4.12
2018 27.82 21.51 6.31 39.81
2019 -2.99 21.51 -24.5 600.25
2020 35.38 21.51 13.87 192.37
∑D2= 877.26

Calculation: Average Return = 21.51

Standard Deviation (Risk) = Variance = 1∕n-1(∑d²)
=1/5-1(877.26) = 219.32
Standard Deviation (Risk) = = = 14.80
Coefficient of variation = Average Return/ Standard Deviation 21.51/14.80
Coefficient of variation = 1.45
Interpretation: The Standard deviation of the Kotak Mahindra Bank is 14.80 and
its variance is 219.32

5. CENTRAL BANK OF INDIA

Table 7: Calculation of Average Return of Central Bank of India
Opening Share Closing Share (P1-
Year Price Price (P1-P0) P0)/P0*100
2016 73.75 105.65 31.9 43.25
2017 105.95 72.35 -33.6 -31.71
2018 72.9 34.95 -37.95 -52.06
2019 36.05 12.25 -23.8 -66.02

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

2020 12.45 16.3 3.85 30.92

Total Return -75.612
Average
Return -15.122
Analysis:
In the above table shows that 5 years average return of Central Bank of India

Graph no: 5

AVERAGE RETURN OF CENTRAL BANK OF

INDIA
60.00

40.00

20.00

0.00
2016 2017 2018 2019 2020
-20.00

-40.00

-60.00

-80.00

Interpretation:
In the year 2016 the returns were 43.25 and in the year 2020 the returns were
30.92. The average return of the Central Bank of India is 21.514. So, we can
interpret that high risk involved investment in the Central Bank of India.

Table no: 8 Calculation of Standard Deviation of Central Bank of India

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Average
Year
Return(R) Return(R) D = (R-R) D2
2016 43.25 -15.122 58.372 3407.29
2017 -31.71 -15.122 -16.588 275.1617
2018 -52.06 -15.122 -36.938 1364.416
2019 -66.02 -15.122 -50.898 2590.606
2020 30.92 -15.122 46.042 2119.866
∑D2=
9757.34

Calculation: Average Return = -15.12

Standard Deviation (Risk) = Variance = 1∕n-1(∑d²)
=1/5-1(9757.34) = 2439.33
Standard Deviation (Risk) = = = 49.38
Coefficient of variation = Average Return/ Standard Deviation -15.12/49.38
Coefficient of variation = -0.31
Interpretation:

The Standard deviation of the Central Bank of India is 49.38 and its variance is
2439.33

6. INDUSTRIAL DEVELOPMENT BANK OF INDIA

Table 9: Calculation of Average Return of Industrial Development Bank of India
Year Opening Share Closing Share (P1-P0) (P1-
Price Price P0)/P0*100
2016 70.75 75.1 4.35 6.15
2017 75.6 72.2 -3.4 -4.50
2018 71 44.6 -26.4 -37.18
2019 46.85 19.3 -27.55 -58.80
2020 19.45 38.55 19.1 98.20

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Total Return 3.86

Average 0.77
Return
Analysis: In
the above table shows that 5 years average return of Industrial Development
Bank of India

Graph no: 6

AVERAGE RETURN OF INDUSTRIAL

DEVELOPMENT BANK OF INDIA
120.00
100.00
80.00
60.00
40.00
20.00
0.00
2016 2017 2018 2019 2020
-20.00
-40.00
-60.00
-80.00

Interpretation:
In the year 2016 the returns were 6.15 and in the year 2020 the returns were
98.20. The average return of the Industrial Development Bank of India is 0.77.
So, we can interpret that high risk involved investment in the Industrial
Development Bank of India.

Calculation of Standard Deviation of Industrial Development Bank of

India Table 10:

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Year Return(R) Average D = (R-R) D2

Return(R)
2016 6.15 0.77 5.38 28.94
2017 -4.5 0.77 -5.27 27.77
2018 -37.18 0.77 -37.95 1440.20
2019 -58.8 0.77 -59.57 3548.58
2020 98.2 0.77 97.43 9492.60
∑D2= 14538.11

Calculation: Average Return = 0.77

Standard Deviation (Risk) = Variance = 1∕n-1(∑d²)
=1/5-1(14538.11) = 3,634.52
Standard Deviation (Risk) = = = 60.28
Coefficient of variation = Average Return/ Standard Deviation 0.77/60.23
Coefficient of variation = 0.012
Interpretation:

The Standard deviation of the Central Bank of India is 60.28 and its variance is
3,634.52

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 COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

7. JM FINANCIAL LIMITED

Table 11: Calculation of Average Return of JM Financial Limited

Year Opening Share Closing Share (P1-P0) (P1-P0)/P0*100
Price Price

2016 37.8 88.6 50.8 134.39

2017 89.35 128.8 39.45 44.15

2018 130.1 94.05 -36.05 -27.71

2019 94.8 64.75 -30.05 -31.70

2020 64.8 84.55 19.75 30.48

Total Return 149.614

Average Return 29.923

 COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Analysis:

In the above table shows that 5 years average return of JM Financial Limited

Graph no: 7

AVERAGE RETURN OF JM
FINANCIAL LIMITED
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
-20.00 2016 2017 2018 2019 2020

-40.00
-60.00

Interpretation:
In the year 2016 the returns were 134.39 and in the year 2020 the returns were 30.48. The
average return of the JM Financial Limited is 29.92. So, we can interpret that moderate risk
involved investment in the JM Financial.

IT Page 39

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

8. INDUSIND BANK

Table 13: Calculation of Average Return of the IndusInd Bank

Year Opening Share Closing Share (P1-P0) (P1-
Price Price P0)/P0*100
2016 966.65 1425.15 458.5 47.43
2017 1425.75 1796.75 371 26.02
2018 1801.6 1821.1 19.5 1.08
2019 1797 351.3 -1445.7 -80.45
2020 386.4 954.45 568.05 147.01
Total Return 141.10
Average 28.22
Return
Analysis:
In the above table shows that 5 years average return of IndusInd Bank

Graph no: 8

AVERAGE RETURN OF INDUSIND BANK

200.0
0

150.0
0

100.0
0

50.0
0

0.0
0 2016 2017 2018 2019 2020

-
50.00

-
100.00

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Interpretation:
In the year 2016 the returns were 47.43 and in the year 2020 the returns were
147.10. The average return of the IndusInd Bank is 28.22. So, we can interpret
that moderate risk involved investment in the IndusInd Bank.

Calculation of Standard Deviation of IndusInd Bank

Table 14:
Year Return(R) Average D = (R-R) D2
Return(R)
2016 47.43 28.22 19.21 369.02
2017 26.02 28.22 -2.2 4.84
2018 1.08 28.22 -27.14 736.58
2019 -80.45 28.22 -108.67 11809.17
2020 147.01 28.22 118.79 14111.06
∑D2=27030.68

Calculation: Average Return = 28.28

Standard Deviation (Risk)
=1/5-1(27030.68) = 6,757.67
Standard Deviation (Risk)
Coefficient of variation = Average Return/ Standard Deviation 28.28/82.20
Coefficient of variation = 0.34

Interpretation:
The Standard deviation of the IndusInd Bank is 82.20 and its variance is 6757.67

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

9. DEWAN HOUSING FINANCE CORPORATION LTD

Table 15: Calculation of Average Return of the Dewan Housing Finance
Corporation Ltd
Year Opening Share Closing Share (P1-P0) (P1-P0)/P0*100
Price Price
2016 197.9 367.15 169.25 85.52
2017 370 510.15 140.15 37.88
2018 515.1 149.5 -365.6 -70.98
2019 152.05 8.65 -143.4 -94.31
2020 8.65 15.65 7 80.92
Total Return 39.04
Average 7.81
Return
Analysis: In
the above table shows that 5 years average return of Dewan Housing Finance
Corporation

Graph no: 9
AVERAGE RETURN OF DEWAN HOUSING
FINANCECORPORATION LTD
100.0
080.0
0
60.0
0
40.0
0
20.0
00.0
-0 2016 2017 2018 2019 2020
20.00
-
40.00
-
60.00
-
- 80.00
100.00
-
120.00

Interpretation:
In the year 2016 the returns were 85.52 and in the year 2020 the returns were
80.92. The average return of the Dewan Housing Finance Corporation Ltd is 7.81.
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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

So, we can interpret that high risk involved investment in the Dewan Housing
Finance Corporation Ltd.

Calculation of Standard Deviation of Dewan Housing Finance Corporation

Ltd Table 16:
Year Return(R) Average D = (R-R) D2
Return(R)
2016 85.52 7.81 77.71 6038.84

2017 37.88 7.81 30.07 904.20

2018 -70.98 7.81 -78.79 6207.86

2019 -94.31 7.81 -102.12 10428.49

2020 80.92 7.81 73.11 5345.07

∑D2=28924.48

Calculation: Average Return = 7.81

Standard Deviation (Risk) = Variance = 1∕n-1(∑d²)
=1/5-1(28924.48) = 7231.12
Standard Deviation (Risk) = = =85.03
Coefficient of variation = Average Return/ Standard Deviation 7.81/85.03
Coefficient of variation = 0.09
Interpretation: The Standard deviation of the Dewan Housing Finance
Corporation is 85.03 and its variance is 7231.12

10. MAHINDRA FINANCIAL SERVICES LIMITED

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

Table 17: Calculation of Average Return of the Mahindra Financial Services

Limited
Year Opening Share Closing Share (P1-P0) (P1-P0)/P0*100
Price Price
2016 245.2 314.9 69.7 28.43
2017 318.45 463.25 144.8 45.47
2018 463 429.3 -33.7 -7.28
2019 424.05 89.75 -334.3 -78.84
2020 88.41 198.95 110.54 125.03
Total Return 112.81
Average 22.56
Return
Analysis:
In the above table shows that 5 years average return of Mahindra Financial
Services Limited

Graph no: 10
AVERAGE RETURN OF MAHINDRA FINANCIAL
SERVICES LTD
150.00

100.00

50.00

0.00
2016 2017 2018 2019 2020

-50.00

-100.00

Interpretation:
In the year 2016 the returns were 28.53 and in the year 2020 the returns were
125.03. The average return of the Mahindra Financial Services Limited is 22.56.

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

So, we can interpret that moderate risk involved investment in the Mahindra
Financial Services Limited.

Calculation of Standard Deviation of Mahindra Financial Services

Limited Table 18
Year Return(R) Average D = (R-R) D2
Return(R)
2016 28.43 22.56 5.87 34.46
2017 45.47 22.56 22.91 524.87
2018 -7.28 22.56 -29.84 890.43
2019 -78.84 22.56 -101.4 10281.96
2020 125.03 22.56 102.47 10500.10
∑D2=22231.81

Calculation: Average Return = 22.56

Standard Deviation (Risk) = Variance = 1∕n-1(∑d²)
=1/5-1(22231.81) = 5557.95
Standard Deviation (Risk) = = = 74.55
Coefficient of variation = Average Return/ Standard Deviation
22.56/74.55 Coefficient of variation= 0.30

Interpretation:
The Standard deviation of the Mahindra Financial Services Limited is 74.55 and
its variance is 5557.95 .

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11. BANK OF BARODA

Table no 19: Calculation of Average Return of the Bank of Baroda
Year Opening Share Closing Share (P1-P0) (P1-P0)/P0*100
Price Price
2016 145.7 172.95 27.25 18.70
2017 173.9 142.3 -31.6 -18.17
2018 142.6 130.1 -12.5 -8.77
2019 133 53.55 -79.45 -59.74
2020 54 74.1 20.1 37.22
Total Return -30.75
Average -6.15
Return
Analysis:
In the above table shows that 5 years average return of Bank of Baroda

Graph no 11
AVERAGE RETURN OF BANK OF BARODA
60.00

40.00

20.00

0.00
2016 2017 2018 2019 2020
-20.00

-40.00

-60.00

-80.00

Interpretation:

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In the year 2016 the returns were 18.70 and in the year 2020 the returns were -
30.75. The average return of the Bank of Baroda is -6.15. So, we can interpret
that high risk involved investment in the Bank of Baroda.

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13. Depicting all Calculated

Values Table no 21:
Standard
Average Deviation Coefficient Of
Company Name Return (Risk) Variance Variation
Yes Bank -10.67 61.43 3774.57 -0.17

HDFC Bank 19.98 31.08 962.13 0.64

Kotak Mahindra Bank 21.51 14.8 219.32 1.45

Central Bank of India -15.12 49.38 2439.33 -0.31

Industrial Development
Bank of 0.77 60.28 3634.52 0.012
India
JM Financial Limited 29.92 67.51 4558.75 0.44

IndusInd Bank 28.28 82.2 6757.67 0.34

Dewan Housing
7.81 85.03 7231.12 0.09
Finance Corporation Ltd
Mahindra Financial Services
22.56 74.55 5557.95 0.3
Limited
Bank of Baroda -6.15 37.15 5521.71 -0.17

Analysis:
In the above table shows the 5 years Average Return, Standard
Deviation (Risk), Variance and Coefficient of variation of all selected
companies.

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Graphically Representation of Risk and Return of Selected Companies

Graph no 12

Interpretation:
Among the 12 selected companies JM Financial Limited gives highest
rate of return (29.92) to their shareholder and their investment risk is
67.15. Central Bank of India gives lowest rate of return (-15.12) and their
investment risk 49.13. Out of 12 companies 4 stocks gives a negative
return to their shareholder. Those are Yes Bank, Central Bank of India,
Bank of Baroda and Punjab National Bank and their return is -10.67, -
15.12, -6.12, -2.88 respectively.

CHAPTER 5
SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTIONS

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5.1 SUMMARY OF FINDINGS

 The firm “Yes Bank” has an average return of -10.67, investment risk is
61.43 and coefficient of variation is -0.67. The highest market price is
309.64 in the year 2017; the lowest market price is 15.6 in the year 2020.
 The firm “HDFC Bank” has an average return of 19.98, investment risk is
31.08 and coefficient of variation is 0.64. The highest market price is
1228.55 in the year 2019; the lowest market price is 534.4 in the year 2016.
 The firm “Kotak Mahindra Bank” has an average return of 21.51,
investment risk is 14.80 and coefficient of variation is 1.45. The highest
market price is 1296.05 in the year 2019; the lowest market price is 682 in
the year 2016.
 The firm “Central Bank of India” has an average return of -15.12,
investment risk is 49.38 and coefficient of variation is -0.31. The highest
market price is 105.95 in the year 2016; the lowest market price is 12.45 in
the year 2020.
 The firm “JM Financial Limited” has an average return of 29.92, investment
risk is 67.51 and coefficient of variation is 0.44. The highest market price is
130.1 in the year 2018; the lowest market price is 37.8 in the year 2016.
 The firm “IndusInd Bank” has an average return of 28.22, investment risk is
82.20 and coefficient of variation is 0.34. The highest market price is 1801.6
in the year 2018; the lowest market price is 386.4 in the year 2020.
 The firm “Dewan Housing Development Finance Ltd” has an average return
of 7.81, investment risk is 85.03 and coefficient of variation is 0.09. The

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highest market price is 515.1 in the year 2018; the lowest market price is
8.65 in the year 2020.
 The firm “Mahindra Financial Services Ltd” has an average return of 22.56,
investment risk is 74.55 and coefficient of variation is 0.30. The highest
market price is 515.1 in the year 2018; the lowest market price is 8.65 in
the year 2020.
 The firm “Bank of Baroda” has an average return of -6.51, investment risk
is 37.15 and coefficient of variation is -0.17. The highest market price is
173.9 in the year 2017; the lowest market price is 53.55 in the year 2020.

CONCLUSION
The risk and return relationship is a fundamental concept in not only financial
analysis, but in every aspect of life. For decisions to maximise benefit, the joint
influence on expected (future) return or benefit and risks or cost must be
considered by people or an institution. The amount that an investor earned on
an investment in a certain amount of time is expressed in return. Return
encompasses the interest, dividend and capital gains and risk constitutes the
uncertainty of a given task. Financially, the risk is the chance or probability of
returns for a certain investment. The risk and return trade off says that the
potential return rises with an increase in risk. It is important for an investor to
decide on a balance between the desire for the lowest possible risk and highest
possible return.

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5.2 SUGGESTION

 The company Yes Bank has a coefficient of -0.17 and HDFC Bank has a

coefficient of 0.64 and when a comparison is made between these banks,

the investor has an option to invest in HDFC Bank.
 The company State Bank of India has a coefficient of 0.44 and Kotak

Mahindra Bank has a coefficient of 1.45 and when a comparison is made

between these banks, the investor has an option to invest in State Bank of
India.
 The company Central Bank of India has a coefficient of -0.31 and Industrial

Development Bank of India has a coefficient of 0.012 and when a

comparison is made between these banks, the investor has an option to
invest in Industrial Development Bank of India.
 The company JM Financial Ltd has a coefficient of 0.44 and IndusInd Bank

has a coefficient of 0.34 and when a comparison is made between these

banks, the investor has an option to invest in IndusInd Bank.
 The company Dewan Housing Development Finance Ltd has a coefficient of

0.09 and Mahindra Financial Services Ltd has a coefficient of 0.30 and when
a comparison is made between these banks, the investor has an option to
invest in Dewan Housing Development Finance Ltd.

REFERANCES

1) Anil Sharma year 2020: qualitative research in financial markets

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

2) Jaspal Singh year 2015: international journal of law and management

3) Patterson 2005: value at stocks in market, international journals of

emerging markets.

4) Patel 2006: “Risk in financial market”

5) Ahmet 2005: socially responsible stocks, journal of advance in

management

Website:
• www.sharekhan.com
• www.capitalmarketindia.com
• www.wikipedia.com www.yahoo,com

1. How would you rate the management efficiency of Suzuki?

A. Excellent

B. good

C. average

D. poor

2. What is the opinion on the competitive positioning of Mahindra in its industry?

A. Strongly Competitive

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B. Moderately Competitive

C. Weakly Competitive

3. what is your opinion on the regulatory environment affecting Mahindra?

A. Favorable

B. Neutral

C. Unfavorable

4. What is your opinion on the regulatory environment affecting Suzuki?

A. favorable

B. Neutral

C. unfavorable

5. How do you perceive the overall risk of investing in Suzuki! A.

High Risk.

B. Moderate Risk.

C. Low risk

6. Would you consider investing in Mahindra or Suzuki based on your risk and return analysis

A. Yes’ Mahindra

B. yes Suzuki

C. No. Neither

7. What is your opinion on the competitive positioning of Suzuki in its industry?

A. Strongly Competitive

B. Moderately Competitive

C. Weakly Competitive

8. How closely do you follow the financial performance of Suzuki?

A. Very Closely

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B. Moderately

C. Rarely

9. How closely do you follow the financial performance of Mahindra?

A. Generous

B. Moderate

C. Inadequate

10. What is your investment horizon?

A.Short -term(less than 1year)

B. Medium- term (1-3years) C. Long

– term ( more than 3 years) Other:

11. How would you rate your risk tolerance?

A. High Risk Taker

B. Moderate Risk Taker

C.Conservative investor

Option 4 Other:

12. Have you invested in stocks of Mahindra before?

A. yes

B.No

13. Have you invested in stocks of Suzuki before?

A. yes

B. No

14. What factors influence your decision to invest in a stock ? (select all the apply)

A. Company financial

B. industry Trends C. Economic conditions

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d. Analyst Recommendation Other:

15. How do you perceive the growth potential of Mahindra?

A. High growth potential

B. Moderate growth potential

C. Low growth potential

16. How do you perceive the growth potential of Suzuki?

A. High growth potential

B. Moderate growth potential

C. Low growth potential Other:

17. What is your expectation regarding the volatility of Mahindra stock?

A. High Volatility

B. Moderate Volatility

C. Low Volatility

18. What is your expectation regarding the volatility of Suzuki stock?

A. High Volatility

B. Moderate Volatility

C. Low Volatility

19. How would you rate the management efficiency of Mahindra?

A. Excellent

B. good C. average

d. poor

20. How familiar are you with the stock market?

A. Very familiar

B. Somewhat familiar

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c. Not familiar

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ANALYSIS 1.
The following pie chart showcases the information about the
consumer purchasing the product like electrical’ convenience and
unsought products frequently
1.How would you rate the management efficiency of Suzuki?

INTERPRETATION
As of my last update, Suzuki Motor Corporation has products where
26.8%generally been regarded as having efficient
management,following 26.7% with a strong focus on innovation and
quality.product and 26.8% However, for other 18.3%the most current
evaluation, it's advisable to check recent financial reports and analysis
ANALSIS 2.
The below pie chart provides information about the role of design in
purchasing
2. What is the opinion on the competitive positioning of Mahindra in
its industry?

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INTERPRETION
As of my last update, Mahindra & Mahindra has a strong
28.1%competitive positioning within its industry, particularly in
sectors such as automotive, farm equipment, and IT services.13.8% Its
diversified portfolio, focus on innovation, and emphasis on
sustainability have contributed to its competitive edge.
58.1%However, market dynamics can change, so it's a good idea to
check recent industry analyses for the most current opinion on
Mahindra's competitive positioning.
ALALYSIS 3.
The following pie charts information about the factors that involve in
purchasing of a product
3.What is your opinion on the regulatory environment affecting
Mahindra?

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Interpretation.
Based and sustainability. The regulatory environment can
greatly25.8% impact companies like Mahindra, especially in industries
like automotive and agriculture where regulations and23.3% on
emissions, safety standards, and land use can have then50.9%
significant effects. Keeping up with and adapting to these regulations
is crucial for Mahindra's long-term success.
ANALYSIS
The below pie chart indicates about the customer prefrences

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4. What is your opinion on the regulatory environment affecting

Suzuki.

Interpretation
automotive industry where emissions standards, safety regulations
31.7%, and trade policies play a significant role. Adapting 22% to and
complying with these regulations is essential for Suzuki's 46.3%
continued growth and success in various markets.
ANALYSIS 5

How do you perceive the overall risk of investing in Suzuki ?

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Interpretation

Investing in Suzuki carries both opportunities and risks. While it's an

established company with a strong global 34.4% presence, factors
such as fluctuating market 23.3% conditions, competition, regulatory
changes, and technological advancement 42.3% could pose risks.

6.Would you consider investing in Mahindra or Suzuki based on your

risk and return analysis

Interpretation :
real-time information or personalized financial advice of 36.8% .
Investment decisions should be based on thorough research 19.6%,
current market conditions, and individual financial goals 43.6%.
Additionally, risk tolerance varies from person to person. However, I
can provide general considerations for assessing the risk and return of
investments in companies like Mahindra and Suzuki.

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ANALYSIS 8;
8.HOW Closely do you follow the financial performance of Suzuki?

INTERPRETATION
I can provide information on Suzuki's financial performance up to my last
38.1%update in January 2022. For the latest data, you might want 16.2%to
check recent financial reports or news updates 45.6%on Suzuki.

ANALASIS 9.
9.How closely do you follow the financial performance of Mahindra?

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

I can provide information on Mahindra's financial performance up to29.6% my

last update in January 2022. For the latest data, 22.8%you might want to check
recent financial reports or news 47.5%updates on Mahindra.
ANALASIS10.
10.What is your investment horizon?

INTERPRETATION

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COMPARATIVE STUDY ON RISK AND RETURN ANALYSIS OF SELECTED STOCK

An, I don't have personal investments or a specific 29.8% investment horizon.

However, I can assist with providing information30.4% and insights on various
investment then 37.9% staragies and financial topics
ANALASIS 11.
11.How would you rate your risk tolerance?

INTERPRETATION
I'm an AI language model, I don't have personal experiences24.2% or emotions,
including risk tolerance. However, I can help users explore different26.7% risk
tolerance levels and understand47.8% how they might align with their
investment goals and preferences.

ANALASIS12.

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12.How you invested in stocks of Mahindra before?

INTERPRETATION

As an AI, I don't have the ability to invest in stocks or any 40.1%financial assets.
My purpose is to provide information and assistance to users like you. If you're
interested in investing in Mahindra stocks,59.9% you'll need to use a brokerage
platform or consult with a financial advisor to make investment decision .
ANALASIS13.
13.How you invested in stocks of Suzuki before?

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INTERPRETATION

As an AI, I don't have the capability to invest in stocks or any financial

assets.47.8% My primary function is to provide information and assistance to
users. If you're interested in investing in Suzuki stocks, you'll need to use a
brokerage 52.2%platform or consult with a financial advisor to make investment
decisions.
ANALYSIS 14

What factor influence your decision to invest in a stock (select all the apply)

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INTERPRETATION :
Overall, I aim to make informed decisions of 26.5 % based on a combination of
quantitative analysis of 8.6% , qualitative assessment of 36.4%, and
understanding of 28.4% market dynamics.

ANALYSIS 15

How do you perceive the growth potential of Mahindra

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INTERPRETATION

Mahindra is a diversified conglomerate 37.9% with interests in 12.4% various

sectors such as automotive, farm equipment, aerospace, and IT services of
49.7%.
ANALYSIS 16

How do you perceive the growth potential of Suzuki.

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INTERPRETATION :

Suzuki is a diversified conglomerate 31.3% with interests in 34.4% various

sectors such as automotive, farm equipment, aerospace, and IT services of
33.8%.

ANALYSIS 17
What is expectation regarding the volatility of Mahindra stock

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INTERPRETATION :

Stock prices are influenced by a multitude of factors including company

performance 32.5%, industry trends, market sentiment, economic conditions,
and geopolitical events22.1% , among others. It's essential for investors to
conduct thorough45.4% research, analyze relevant information, and consider
their own investment goals and risk tolerance when making investment
decisions.
ANALYSIS 18

What is expectation regarding the volatility of Suzuki stock.

INTERPRETATION :

Stock prices are influenced by a multitude of factors including company

performance 28%, industry trends, market sentiment, economic conditions, and
geopolitical events 17.7% , among others. It's essential for investors to conduct
thorough 54.3% research, analyze relevant information, and consider their own
investment goals and risk tolerance when making investment decisions.
ANALYSIS 19

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How would you rate the management efficiency of Mahindra.

INTERPRETATION :
Evaluating factors such as cost management 20.1%, supply chain efficiency of
11.6%, and productivity levels 43.9% can indicate how well management 24.4%
is optimizing operational processes to enhance profitability and
competitiveness.
ANALYSIS 20
How familier are you with the stock market ?

INTERPRETATION :

I'm familiar with the stock market that , I can provide information on stocks
32.9%, investment strategies 14%, market trends, and more 53%. If you have
any questions or need assistance, feel free to ask.

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