Introduction

Economic Analysis and overview of Companies

Economic Analysis

• Economic factors plays major role in any investment decision.

• Economic analysis and Forecasting company performance is necessary for making investment.

Investment decision refers to making a decision regarding the buy and sell orders.

Criteria for investment Decision

Mood of market Overall Performance Investor’s Perception

• Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands.

• Their Core purpose "creating brands people love". They collaborate and work as team to convert products into brands.

Company overview

A few facts and figures • Make and sell three kinds of confectionery:

chocolate, gum and candy.• Operate in over 60 countries John Cadbury opened

for business in 1824 - making us nearly 200 years young.

• Work with around 35,000 direct and indirect suppliers.

• Employ around 50,000 people • Every day millions of people around the world

enjoy the brands

Hindustan Times Limited

Hindustan Times Limited

• Owner: K. K. Birla Group

• Founded: 1924

• Headquarters: New Delhi, India

Facts about the company• Hindustan Times was started in 1924 and it has an 80-

year history as one of India's leading newspapers. • Hindustan Times has a circulation of over 1.2 million and

is the fastest growing mainline English newspaper in terms of readership.

• In July 2005, Hindustan Times made a successful entry into the commercial capital of India – Mumbai.

Corporate Journey

Editions cover 65% of population Pan-India sales presence

Hindustan -Third largest read daily• Consolidating presence in existing businesses

Revenue growing > 30% Aggressive expansion of readership base.

• Rapid expansion in UPSuccessful new launches in UP

Meerut/Agra/Kanpur.Encouraging consumer response to product.

• Future plansTransferring Hindi business into a subsidiary.Aggressive expansion strategy to market leader

through UP, Uttranchal, MP and Punjab expansion.

Introduction

Industry Analysis

Once the economics analysis is made and the forecast of the economy is known the investor will then have some idea of the likely growth of the economy and its trend. After that, the analyst would look into the industry groups which are promising in the coming year or years and then only he will able to choose the companies in those industry groups.

Industry Analysis of Hindustan Times

• Cost• Labour and other industrial problem• Competition• Future Prospect• Constant innovation

Introduction

Company Analysis

Company Analysis

•After analyzing the Economy & Industry an investor should also analyze the company in which he wants to invest because it provides clear idea about the financial background & growth prospects of a company.•It also provides right direction to the investor to allocate their funds. •Without doing company analysis it may happen that the investor have to bare losses on his investments.

Factors to be considered The basic factor in company analysis is to analyse the

Balance Sheet data of the company to know about :-• Capital usage.• Return on net worth.• Return on equity.• Financial status of the company amongst the industry.

Other important factors are:

• Size of the company and its Growth & Expansion.• Profitability of the company.• Forecast for future position.• Industry performance.• Prospects of the industry.

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