final assignment of sapm
TRANSCRIPT
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Assignment on
Fundamental and Technical
analysis
Of
HDFC bank LTD
SUBMITTED TO
PROF. SHIRURSIR
SUMITTED BY:-
ANKUR AGRAWAL
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INTRODUCTION
HDFC Bank Limited is a majorIndian financial
services company based in India, incorporated in
August 1994, after the Reserve Bank of
India allowed establishing private sector banks. TheBank was promoted by the Housing Development
Finance Corporation, a premier housing finance
company (set up in 1977) ofIndia. HDFC Bank has
1,725 branches and over 5,000 ATMs, in 780 cities
in India, and all branches of the bank are linked on
an online real-time basis. As of 30 September 2008
the bank had total assets of Rs.1006.82 billion. For
the fiscal year 2010-11, the bank has reported net
profit of 3,926.30crore (US$875.56 million), up33.1% from the previous fiscal. Total annual
earnings of the bank increased by 20.37% reaching
at 24,263.4 crore (US$5.41 billion) in 2010-11.
It is one of the Big Four banks ofIndia, along
with State Bank ofIndia, ICICIBankand Punjab
National Bankits main competitors.
HDFC Bank was incorporated in 1994 by Housing
Development Finance Corporation Limited
(HDFC), India's largest housing finance company.It was among the first companies to receive an 'in
principle' approval from the Reserve Bank ofIndia
(RBI) to set up a bank in the private sector. The
Bank started operations as a scheduled commercial
bank in January 1995 under the RBI's liberalization
policies
Type Public
Traded as BSE:500180
NSE:HDFCBANKNYSE:HDB
Industry BankingFinancial services
Founded August 1994
Headquarters Mumbai, India
Area served Worldwide
Key people Aditya Puri (MD)
Products Finance and insuranceInvestment BankingCommercial BankingRetail Banking
Private BankingAsset Management
Revenue24,628.38 crore (US$5.49 billion)(2011)
Operatingincome 7,885.28 crore (US$1.7
6 billion)(2011)
Profit 4,017.69 crore (US$895.94 million)(2011)
Total assets $53.670billion (2010)
Total equity $6.787billion (2010)
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RETAIL BANKING SERVICES
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March
2009, the bank had a total card base (debit and credit cards) of over 13 million. TheBank is also one of the leading players in the merchant acquiring business with
over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is positioned in various net based B2C
opportunities including a wide range of internet banking services for Fixed
Deposits, Loans, Bill Payments, etc.
BUSINESS FOCUS
HDFC Bank deals with three key business segments. - Wholesale BankingServices, Retail Banking Services, Treasury. It has entered the banking consortia
of over 50 corporate for providing working capital finance, trade
services, corporate finance, and merchant banking. It is also providing
sophisticated product structures in areas of foreign exchange and derivatives,money markets and debt trading and equity research
TREASURYWithin this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
These services are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing thereturns and market risk on this investment portfolio.
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TECHNICAL ANALYSIS
Technical analysis is a financial term used to denote a security analysis discipline
for forecasting the direction of prices through the study of past market data,
primarily price and volume.[1]Behavioral economics and quantitativeanalysis incorporate technical analysis, which being an aspect ofactive
management stands in contradiction to much ofmodern portfolio theory. The
efficacy of both technical and fundamental analysis is disputed by efficient-market
hypothesis which states that stock market prices are essentially unpredictable.
PrincipalTechnicians say that a market's price reflects all relevant information, so their
analysis looks at the history of a security's trading pattern rather than external
drivers such as economic, fundamental and news events. Price action also tends to
repeat itself because investors collectively tend toward patterned behavior hence
technicians' focus on identifiable trends and conditions.
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 theoverall 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
ofinvestment analysis, such as quantitative analysis and technical analysis
Principal.
The main principle of fundamental analysis is to find profitable companies to
invest in by comparing revenues, sales, management, etc. There are two types of
drivers to look at in fundamental analysis: internal drivers and external drivers.
Internal drivers are company specific (e.g. revenue, net income, assets, debts, etc.).
External drivers are things that can affect the company's profitability but is not
company specific (e.g. the economy, industry averages, etc.)
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Technical Analysis and of HDFC Bank Ltd.
Pivot Point - Support Resistance
Pivot Point - 456.97
Support Price Resistance Price
Support1 451.533 Resistance1 461.433
Support2 447.067 Resistance2 466.867
Support3 441.633 Resistance3 471.333
Intra Day support & resistance
Only Valid for 25/08/2011
General Information
Name HDFC Bank Ltd.
Sector BANKS
Current Price 456.0
Price Change -3.40 / -0.74%
Previous Close 459.4
Average Volume 3271480.0
Nse Code HDFCBANK
Bse Code 500180
Part ofIndex BSE BSE 30
Part ofIndex NSE Nifty 50
Futures and options Yes More F&O Shares
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HDFC BANK :- CHART
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MACD For HDFC Bank Ltd.
MACD (26d ,12d) -9.10683
Signal Line -7.50977
Macd Above Signal
Line
false
Macd/Signal Line
trend days
26
Macd Above Zero
Line
false
Macd/Zero Line trend
days
15
More Technical Indicator
Name Value
Stochastic D Fast 19.0733Stochastic K Fast 21.6162
Stochastic D Slow 20.2797
Relative Strength
Index (RSI) (14
day)
36.5096
BollingerBand
Up
499.174
BollingerBand
Middle
472.432
BollingerBand
Low
445.691
Moving Average Trends
Trend Type Price Above
MA?
No of
Days
15 Day false 25
50 Day false 16
100 Days false 8
15 Day Abv
50 Days MA
false 10
50 Day Abv
100 Days
MA
true 88
Moving Average of HDFC Bank Ltd.
Current Price 456.0
Three Days 456.15
Five Days 458.34
Ten Days 464.355Fifteen Days 466.777
Twenty Two Days 475.091
Thirty Days 483.256
Fifty Days 485.242
Hundred Days 474.869
Two Hundred Days 458.196
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Exponential Moving Average Trends
Trend Type Price Above
EMA?
No of
Days
15 Day false 19
50 Day false 16
100 Days false 8
15 Day Abv
50 Days
EMA
false 11
50 Day Abv
100 Days
EMA
true 99
Exponential Moving Average of
HDFC Bank Ltd.
Current Price 456.0
Five Days 458.747
Ten Days 463.081
Fifteen Days Days 467.388
Twenty Days 470.936
Fifty Days 477.498
Hundred Days 472.641
Two Hundred
Days
459.655
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Three Month Technical Chart for HDFC Bank Ltd.
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CONCLUSION OF TECHNICAL ANALYSIS
Technical Analysis is the study of market action, principally through the use of
charts. Market action is expressed through movement of prices and the volumes
that accompany them. Prices and volumes are therefore the only two variables tobe studied when using technical analysis. Technical analysis is the art of
interpreting stock price movements. Since financial market analysis involves some
degree of subjectivity, all of them are therefore an art and not a science (which
involves exact rules being met under all circumstances).
Since technical analysis deals with the market and not geographical areas, it will
work in any free trading financial markets anywhere.
according to the chart of HDFC bankBSE AND NSE are equally is involve is
stock market . the HDFC bank are realizing the more profit between the years.
In the first month chart shows the first month is stochastic (14030), RSI (140)
MACD(26D, 12D)
The price is also fluctuate is different different year, which affects the control of
financial statement.
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FUNDAMENTAL ANALYSIS OF HDFC BANK
PROFIT AND LOSS A/C
Profit & Loss account of HDFC
Bank
------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Interest Earned 19,928.21 16,172.90 16,332.26 10,115.00 6,889.02
OtherIncome 4,433.51 3,810.62 3,470.63 2,205.38 1,510.24
Total Income 24,361.72 19,983.52 19,802.89 12,320.38 8,399.26
Expenditure
Interest expended 9,385.08 7,786.30 8,911.10 4,887.12 3,179.45
Employee Cost 2,836.04 2,289.18 2,238.20 1,301.35 776.86
Selling and Admin Expenses 2,510.82 3,395.83 2,851.26 974.79 727.53
Depreciation 497.41 394.39 359.91 271.72 219.60
Miscellaneous Expenses 5,205.97 3,169.12 3,197.49 3,295.22 2,113.28
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 8,045.36 7,703.41 7,290.66 3,935.28 2,590.66
Provisions & Contingencies 3,004.88 1,545.11 1,356.20 1,907.80 1,246.61
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Total Expenses 20,435.32 17,034.82 17,557.96 10,730.20 7,016.72
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit for the Year 3,926.40 2,948.70 2,244.94 1,590.18 1,382.54
Extraordionary Items -2.65 -0.93 -0.59 -0.06 -0.35
Profit brought forward 4,532.79 3,455.57 2,574.63 1,932.03 1,455.02
Total 8,456.54 6,403.34 4,818.98 3,522.15 2,837.21
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 767.62 549.29 425.38 301.27 223.57
Corporate Dividend Tax 124.53 91.23 72.29 51.20 38.00
Per share data (annualised)
Earning PerShare (Rs) 84.40 64.42 52.77 44.87 43.29
Equity Dividend (%) 165.00 120.00 100.00 85.00 70.00
Book Value (Rs) 545.53 470.19 344.44 324.38 201.42
Appropriations
Transfer to Statutory Reserves 997.52 935.15 641.25 436.05 288.38
Transfer to Other Reserves 392.64 294.87 224.50 159.02 114.14
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Proposed Dividend/Transfer to Govt 892.15 640.52 497.67 352.47 261.57
Balance c/f to Balance Sheet 6,174.24 4,532.79 3,455.57 2,574.61 1,932.03
Total 8,456.55 6,403.33 4,818.99 3,522.15 2,596.12
BALANCE SHEET
HDFC Bank
Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share Capital 465.23 457.74 425.38 354.43 319.39
Equity Share Capital 465.23 457.74 425.38 354.43 319.39
Share Application Money 0.00 0.00 400.92 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 24,914.04 21,064.75 14,226.43 11,142.80 6,113.76
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 25,379.27 21,522.49 15,052.73 11,497.23 6,433.15
Deposits 208,586.41 167,404.44 142,811.58 100,768.60 68,297.94Borrowings 14,394.06 12,915.69 2,685.84 4,478.86 2,815.39
Total Debt 222,980.47 180,320.13 145,497.42 105,247.46 71,113.33
Other Liabilities & Provisions 28,992.86 20,615.94 22,720.62 16,431.91 13,689.13
Total Liabilities 277,352.60 222,458.56 183,270.77 133,176.60 91,235.61
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Assets
Cash & Balances with RBI 25,100.82 15,483.28 13,527.21 12,553.18 5,182.48
Balance with Banks, Moneyat Call
4,568.02 14,459.11 3,979.41 2,225.16 3,971.40
Advances 159,982.67 125,830.59 98,883.05 63,426.90 46,944.78
Investments 70,929.37 58,607.62 58,817.55 49,393.54 30,564.80
Gross Block 5,244.21 4,707.97 3,956.63 2,386.99 1,917.56
Accumulated Depreciation 3,073.56 2,585.16 2,249.90 1,211.86 950.89
Net Block 2,170.65 2,122.81 1,706.73 1,175.13 966.67
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Capital Work In Progress 0.00 0.00 0.00 0.00 0.00
Other Assets 14,601.08 5,955.15 6,356.83 4,402.69 3,605.48
Total Assets 277,352.61 222,458.56 183,270.78 133,176.60 91,235.61
Contingent Liabilities 559,681.87 466,236.24 396,594.31 582,835.94 202,126.73
Bills for collection 28,869.10 20,940.13 17,939.62 17,092.85 7,211.88
Book Value (Rs) 545.53 470.19 344.44 324.38 201.42
CASE FLOW
Cash Flow ------------------- in Rs. Cr. -------------------
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
12 mths 12 mths 12 mths 12 mths 12 mths
Net Profit Before
Tax 5818.66 4289.14 3299.25 2280.63 1638.75
Net Cash From OperatingActivities
-375.83 9389.89 -1736.14 3583.43 666.63
Net Cash (used in)/fromInvesting Activities
-1122.74 -551.51 -663.78 -619.82 -311.40
Net Cash (used in)/fromFinancing Activities
1227.99 3598.91 2964.66 3628.34 1637.88
Net (decrease)/increase InCash and Cash Equivalents
-273.56 12435.78 564.74 6591.95 1993.11
Opening Cash & CashEquivalents
29942.40 17506.62 14778.34 8074.54 6188.66
Closing Cash & CashEquivalents
29668.83 29942.40 15343.08 14666.49 8181.77
RATIOS:-
LIQUIDITY RATIO:-
Currrunt ratio = Current assests /currunt libilties
= 277,352.61/277,352.60
= 1.0037:1
ACID TEST RATIO
Current assests inventories/current liabilities
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=277,352.61 - 8,045.36 / 277,352.60
O.9997
RECENT DEVELOPMENT :-
08-JUL-11 Housing Development Finance Corporation (HDFC) Bank has posted a
net profit of Rs 8.45 billion for the quarter ended June 30, 2011 as compared to Rs
6.95 billion for the quarter ended June 30, 2010, reflecting increase of 21.58%. 14-
JUN-11 Citigroup today announced that it has reduced its 11.4% stake in HousingDevelopment Finance Corporation (HDFC) by 1.5% to a 9.9% beneficial interest.
Headquartered in Mumbai.
08-JUL-11
Housing Development Finance Corporation (HDFC) Bank has posted a net profit
of Rs 8.45 billion for the quarter ended June 30, 2011 as compared to Rs 6.95
billion for the quarter ended June 30, 2010, reflecting increase of 21.58%.
14-JUN-11
Citigroup today announced that it has reduced its 11.4% stake in Housing
Development Finance Corporation (HDFC) by 1.5% to a 9.9% beneficial interest.
Headquartered in Mumbai, HDFC is an Indian non-bank financial company in
housing finance and mortgages with USD 37 billion of total assets as ofMar. 31,
2011.
25-APR-11
Country`s second largest private sectorHDFC Bank has been declared thestrongest bank in Asia Pacific by the Asian Banker magazine, report PTI.
18-APR-11
HDFC Bank, one of the India`s largest private sector banks, announced a growth of
33.2% in net profit for the quarter ended March 2011 to Rs 11.15 billion over the
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quarter ended March 2010. Meanwhile, total income grew 34.38% during the
fourth quarter of financial year 2011 to Rs 67.24 billion.
18-APR-11
HDFC Bank has posted a consolidated profit of 32.92% Rs 39,924.90 million forthe quarter ended March 31, 2011 as compared to Rs 30,036.50 million for the
same period last year.
07-MAR-11
The seventh Annual edition of the prestigious Banking Technology Conference &
Expo, organised by The Indian Banks` Association got underway today amongst
an august gathering of top-level bankers of the Indian Banking Industry and
Technology bigwigs at Hotel Trident, Mumbai. The
07-FEB-11
HDFC Bank, the country`s second largest private bank, today signed a
Memorandum ofUnderstanding (MoU) with the Indian Army to offer them salary
accounts and a suite of banking products and services.
03-FEB-11
HDFC Bank, second largest private bank in the country, announced one common
easy-to-remember telephone number for its millions of PhoneBanking customers.
The Bank already offers this service in 9 regional languages