International Journal of Pure and Applied Mathematics Special Issue International Journal of Pure and Applied Mathematics
International Journal of Pure and Applied Mathematics Special Issue International Journal of Pure and Applied Mathematics
International Journal of Pure and Applied Mathematics Special Issue International Journal of Pure and Applied Mathematics
14810
1. Introduction
This strategy is about dissecting the worth of a company’s stock value by
profound concentrating on of the fiscal information in the shares of the
organization. The study acknowledges those company’s income Furthermore
expenses, stakes what's more liabilities, management knowledge What's more
industry flow. In other words it focuses on the business and tries to work out
what the stock price should be. Fundamental analysis is defined as the
cornerstone of the investment. The study fundamental analysis is too broad,
however, it’s tough to know where to start.There are an unending number of
speculation methodologies that are altogether different from each other, yet all
utilization the basics. The fundamental piece of this investigation includes
digging into the monetary articulations. Crucial investigation takes a gander at
this data to accomplish focus on an organization's future execution. Essential
data that is investigated can likewise incorporate an organization's monetary
reports, and non-budgetary data, for example, appraisals of the development of
interest for items sold by the organization, business examinations, and far
reaching changes, changes in government strategies and so on. Will An
fundamentalist, he knows that On those business value of a stock has a
tendency should move towards its genuine worth or innate worth or is over
those present business sector price, the guru might buy the stock on he knows
that those stock cost might ascent Also move towards its inalienable worth or
true esteem. What's more assuming that the innate quality of a stock might
have been beneath the business price, At that point the mogul will offer those
stock on account of he will knew that those stock cost is setting off will fall and
that will originate closer will its innate worth.
To analyze the performance the Iron and Steel sector companies have been
selected such as: Tata Steel, SAIL, JSW Steel, Jindal, and Visa Steel
companies of their performance levels in the investor point of view.
Population: As per the Stock Exchange 7800 Companies are listed in the BSE
and in NSE 4000 companies are trading.
Sample size:there are 5 companies taken as sample such as: Tata Steel, SAIL,
JSW Steel, Jindal, and Visa Steel.
3. Data Analysis
Examination of fluctuation (ANOVA) is a measurable model and its related
strategies, (for example, "variety" among and between gatherings) used to
dissect the distinctions among aggregate means. In its minimum complex
shape, ANOVA gives a quantifiable trial of paying little mind to whether the
techniques for a couple of social affairs are comparable, and thusly aggregates
up the t-test to more than two get-togethers.ANOVAs are helpful for looking at
(testing) at least three means (gatherings or factors) for measurable importance.
It is adroitly like different two-example t-tests. ANOVA is a specific type of
measurable speculation testing intensely utilized as a part of the investigation
of exploratory information. Test outcome (ascertained from the invalid
speculation and the example) is called measurably critical in the event that it is
esteemed far-fetched to have happened by possibility, expecting reality of the
invalid theory. Measurably critical outcome, when a likelihood (p-esteem) is
not as much as a limit (criticalness level), legitimizes the dismissal of the
invalid theory, however just if the priori likelihood of the invalid speculation
isn't high.
Table1:Table shows the earning per share
50
0
Tata Steel SAIL STEEL JSW STEELJINDAL STEEL VISA STEEL
-50
-100
-150
-200
2012-132013-142014-152015-162016-17Earnings Per Share
The graphs show that the x –axis has shown the years from 2012-2017 and the
y-axis has shown the values.
Profit for every allotment or EPS are a critical monetary measure, which
demonstrates the productivity of shares of the organization. It may be
computed Eventually Tom's perusing isolating the organization's net pay with
its aggregate amount about remarkable greater part..It is an instrument that
market member’s use every now and again should gage those productivity of a
particular organization preceding purchasing its allotments. The higher the
profit for every offer of a company, the superior is its benefit.
Hypothesis
H1.1: Earnings per share of Tata Steel, SAIL, JSW Steel, Jindal, and Visa Steel
differ significantly
Table 2: Table shows the ANOVA
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 14976.28 4 3744.0695 1.88619 0.152291639 2.866081
Within Groups 39699.81 20 1984.9907
Total 54676.09 24
This table clearly shows the calculation of one way ANOVA. The one-
way analysis of variance (ANOVA) is used to determine whether there are any
statistically significant differences between the means of two or more
independent (unrelated) groups (although you tend to only see it used when
there are a minimum of three, rather than two groups).
F-value is the critical value or table value that was used to compare the
calculated value to know whether there is any significant difference between
variables.
If calculated P-value is more than 0.05 then it is said that there is a significant
different between variables.
Tata Steel SAIL STEEL JSW STEEL JINDAL STEEL VISA STEEL
This table clearly shows the values of Net Profit Margin of different years for
different companies that are used in the analysis.
Net Profit Margin
40
20
0
-20
-40
Tata Steel SAIL STEEL JSW STEEL JINDAL STEEL STEEL
-60 V ISA
-80
-100
-120
-140
2012-132013-142014-152015-162016-17
The graphs show that the x –axis has shown the years from 2012-2017 and the
y- axis has shown the values.
Hypothesis
H1.2: Net Profit Margin of Tata Steel, SAIL, JSW Steel, Jindal, and Visa Steel
differ significantly.
Table 4:Table shows the ANOVA
ANOVA
Source of Variation SS Df MS F P-value F crit
Between Groups 7150.573 4 1787.643 4.146417 0.013188 2.866081
Within Groups 8622.592 20 431.1296
Total 15773.16 24
This table clearly shows the calculation of one way ANOVA. The restricted
investigation of fluctuation (ANOVA) is utilized to decide if there are any
factually critical contrasts between the methods for at least two autonomous
(inconsequential) gatherings.
If calculated P-value is less than 0.05 then it is said that there is a significant
different between variables.
Since the calculated value of P is 0.013188 which is less than the 5% (0.05)
significance level and the null hypothesis H1.2can be rejected. Hence, it is
concluded that, Tata Steel, SAIL, JSW Steel, Jindal, and Visa Steel are does
not differ significantly.
2012-13 8 2 10 1.6 0
This table clearly shows the values of Dividend per share of different years for
different companies that are going to be used in analyzing of Dividend per
share.
10
2
Tata Steel SAIL STEEL JSW STEELJINDAL STEEL VISA STEEL
0
2012-132013-142014-152015-162016-17
Dividend per share is a measure of the dividend payout per share of common
stock. The measure is utilized to assess the measure of profits that a salary
financial specialist may hope to get in the event that he or she were to purchase
an organization's stock. The measure is particularly powerful that the sum per
share shows administration's readiness to make steady payouts to speculators.
Hypothesis
H1.3: Dividend per share of Tata Steel, SAIL, JSW Steel, Jindal, and Visa
Steel differ significantly
Table 6: Table shows the ANOVA
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 384.9699 4 96.24248 28.63494 5.01E-08 2.866081
Within Groups 67.22032 20 3.361016
Total 452.1902 24
This table clearly shows the calculation of one way ANOVA. The one-
way analysis of variance (ANOVA) is used to determine whether there are any
statistically significant differences between the means of two or more
independent (unrelated) groups.
F-value is the critical value or table value that was used to compare the
calculated value to know whether there is any significant difference between
variables.
If calculated P-value is more than 0.05 then it is said that there no significant
different between companies regarding dividend per share.Since, the calculated
value of P is 5.01 which is more than the 5% (0.05) significance level so,
hypothesis H1.3can be rejected. Hence, it is concluded that, Tata Steel, SAIL,
JSW Steel, Jindal, and Visa Steel are not differs significantly.
Return On Investment
20
10
-20
-30
-40
2012-132013-142014-152015-162016-17
The graph shows that the x –axis has shown the years from 2012-2017 and the
y-axis has shown the values.
Hypothesis
H1.4: Return on Investment of Tata Steel, SAIL, JSW Steel, Jindal, and Visa
Steel differ significantly
Table 8: Table shows the ANOVA
ANOVA
Total 2104.586 24
This table clearly shows the calculation of one way ANOVA. The one-
way analysis of variance (ANOVA) is used to determine whether there are any
statistically significant differences between the means of two or more
independent (unrelated) groups.
Here the degrees of freedom (i.e., DF=n-1)
F-value is the critical value or table value that was used to compare the
calculated value to know whether there is any significant difference between
variables.
If calculated P-value is more than 0.05 then it is said that there is no significant
different between variables. Since, the calculated value of P is 0.002576 which
is less than the 5% (0.05) significance level so, hypothesis H1.4can be
accepted. Hence, it is concluded that, Tata Steel, SAIL, JSW Steel, Jindal, and
Visa Steel are differs significantly.
2. The five year Net Profit Margin of the Tata steel company has greater
than all the other companies during the study period. On an average the Tata
steel company earned Net Profit Margin of 12.804 followed by JSW Steel
2.002, JINDAL Steel 0.394, VISA Steel -36.866, and SAIL Steel -0.384.
Over the study period from 2012-13 to 2016-17 the Net Profit Margin of the
Tata Steel Company did better in the share market value and the VISA Steel
Company least and have a highest negative value.
3. The five year Dividend per Share of the Tata steel company has greater
than all the other companies during the study period. On an average the Tata
steel company earned Dividend per Share of 8.8 followed by JSW Steel
8.35, JINDAL Steel 0.62, VISA Steel 0, and SAIL Steel 1.204. Over the
study period from 2012-13 to 2016-17 the Dividend per Share of the Tata
Steel Company did better in the share market value and the VISA Steel
Company least and it has a Zero value because it has not issued any
dividends.
4. The five year Return on Investment of the Tata steel company has greater
than all the other companies during the study period. On an average the Tata
steel company earned Return on Investment of 8.636 followed by JSW Steel
2.18, JINDAL Steel 0.812, VISA Steel -12.182, and SAIL Steel -0.432.
Over the study period from 2012-13 to 2016-17 the Return on Investment of
the Tata Steel Company did better in the share market value and the VISA
Steel Company least and it has a negative value.
5. Suggestions
On the basis of the findings of the study that the Tata steel Company have a
positive ratio in the Earnings Per Share, Operating Profit Margin, Net Profit
Margin, Debt Equity Ratio, Return On Asset, Dividend Per Share, Dividend
Pay Out, Current Ratio, and Return On Investment. And also that the share
price of the company is increasing from the May 2017 to Jan 2018 (it means
that on May 2017 the share price Rs 447 and it increased to Rs 774 on 17 th Jan
2017). And it is suggested buy for the medium term.
6. Conclusion
Survival of the companies largely depends on satisfaction of their investor and
consumers for whom they are in business. Satisfied investor will take risk in
future and would like to invest in the companies from whom they are in
advantage. Companies with positive ratio have to develop more efficiency in
their approach and companies who are average and below average have to
explore their effort with optimum utilization of their available resources. The
Tata steel, and JINDAL Steel companies are strongly suggested to buy for the
medium term. The JSW Steel and SAIL Steel companies are suggested to buy
for the short term. And the VISA Steel company is not suggested to buy.
References
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