Top Down Approach – Fundamental Analysis

Abstract

The project is based on the equity research of companies in order to understand and analyse their financial performance and buying-selling nature of firm’s assets in the stock market. This extensive research is done with the help of fundamental analysis which comprises of economic and market analysis, analysis of financial statement, forecasting of relevant payoffs and formulating a security value. The journey of Reliance Industries Limited, a small business to the largest company of India is presented in the following report. It also focuses on comparing the two major businesses of RIL: Reliance Refinery and Reliance Jio Infocomm Limited with their Global players: Nayara Energy (Formerly Essar Oil) and Bharti Airtel Limited respectively. The financial statements of RIL are analysed in order to measure the intrinsic value of the stock and to conduct an asset valuation to predict where its price will go. This report also comprises of the analysis of the current scenario of COVID-19 and understanding the pros and cons as well as the impact of this crisis on the market and the Indian Economy as a whole. It involves detailed study of various topics such as status of Indian economy in terms of economic cycle, Comparing China and India’s growth story, Comparing the pre-crisis and post-crisis scenario to understand the measures taken by Government. The trends of Foreign Portfolio Investment in India are also explained along with their pros and cons.