Equity Analysis : Energy & Power Sector


The project entitled “Comparative analysis of equity stocks-Feb 2012” is mainly about doing analysis on stocks and suggesting the investor in making a decision to buy, sell or hold. The project consists of two types of analysis. One is fundamental analysis and other is technical analysis.

            Fundamental analysis consists of economy analysis, industry analysis and company analysis. Economy analysis includes economic factors like GDP, inflation rates, interest rates, exchange rates. Industry analysis consists of analysis of industry like SWOT, PEST analysis, recent developments in the industry etc. Company analysis includes analyzing the company’s ratios etc.

            Technical analysis mainly consists of charts, graphs etc. It takes the closing prices and plots the graphs. It is mainly used for short term purpose.

            The project contains five power stocks namely NTPC,TATA POWER,RELIANCE INFRASTRUCTURE, RELIANCE POWER, POWER GRID COPRPORATION. The analysis is done on these five stocks to determine which one is better for investor. For each stock based upon the ratios I have recommended which stock to buy. Some investors look for sales of a company, some may look for dividend payout ratio. It again depends on investor. Based upon the ratios he can choose which stock to invests.


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