Top Down Approach – Fundamental Analysis

Abstract

The project is based on the company's capital research, the purpose of which is to understand and analyse the company's financial performance and the nature of the company's assets in the stock market to buy and sell. This extensive study was completed with the help of basic analysis, which includes economic and market analysis, financial statement analysis, related revenue forecasts, and the formulation of safety values. The report includes an analysis of the current scenario of COVID-19, and understands its pros and cons as well as the impact of the crisis on the market and the entire Indian economy. It involves detailed research on various topics, such as India’s position in the economic cycle, comparing economic growth in China and India, and comparing pre-crisis and post-crisis scenarios to understand the government’s measures. It also explains the trend of foreign securities investment in India and its pros and cons. The following report also describes the journey of Reliance Industries Limited which is currently the largest company in India. It also focused on comparing two major RIL businesses: Reliance Refinery and Reliance Jio Infocomm Limited and their global players: Nayara Energy (formerly known as Essar Oil) and Bharti Airtel Limited. The analysis of RIL's financial statements is to measure the intrinsic value of the stock and conduct an asset assessment to predict where its price will flow. Recently, RIL became debt-free with an investment of Rs. 115,693.95 Crore to further India’s digital transformation.