A Study on Fundamental Analysis

Executive Summary India is one of the fastest developing economies in the world. Companies in India are growing at faster rate as compared to their growth rate a decade back. Many Indian companies are expanding their business not just within the Indian Markets but have also become Global companies. The objective of conducting this study was to analyze the Top Five companies in the Indian I.T Sector and apply the theoretical knowledge of Fundamental Analysis, Ratio Analysis and to apply it to the companies. Fundamental Analysis helps us to understand the functioning of the company and analyze the company from within. It helps get a clear perspective of how the company is doing with respect to its operations and financials. It helps us understand the businesses the company operates in and how it is doing with respect to the market and its peers. After conducting the study, it was seen that certain companies outperformed their peers in some areas. It also pointed towards some facts which showed potential outperformance by those companies and attractive valuation which made it a sound investment option for the investors. The study was carried out based on secondary data collected from various sources, so the credibility and accuracy of this report depends on the data collected. Key ratios have been analyzed to give the recommendations and there could be other factors that affect the pricing and performance of the company.