Nagendra India Infoline Project Report
Nagendra India Infoline Project Report
Nagendra India Infoline Project Report
COMPARATIVE ANALYSIS OF
INVESTMENT IN EQUITY AND
MUTUAL FUND SCHEMES.
With Reference to
DECLARATION
We, hereby, declare that the PGDM Project titled, “COMPARATIVE
ANALYSIS OF INVESTMENT IN EQUITY AND MUTUAL FUND
SCHEMES WITH REFERENCE TO INDIAINFOLINE” plans is original
to the best of our knowledge and have not been published elsewhere. This is for
the purpose of partial fulfillment of the requirement for the degree of Post
Graduate Diploma in Management (PGDM).
Place: - Bangalore
NAGENDRA KUMAR
Any purpose and its fulfillment require deep routed efforts for its completion.
Many characters play a vital role. This is more when a project undertaken is
directly to a cause.
Finally I would like to thank all those who were directly and indirectly
concerned in making my project successful. To put it in a nutshell a difficult
and arduous journey was made simple and quiet enjoyable due to their support.
PREFACE
PGDM program is one of the most reputed professional courses in the field of
Management. Training is an integral part of PGDM (MBA). As a
complementary to that every trainee has to submit a report on the research work
conducted in that institute.
This report is thus prepared for the project work done at Indiainfoline
Rajajinagar branch. The topic of the project is, “Comparative analysis of
investment in equity and mutual fund schemes with reference to IndiaInfoline”.
Investment means putting your money to work to earn more money. If done
wisely it can help to meet one's financial goals like buying a new house, paying
One needs to make decisions about how much he/she wants to invest and where
to invest. To choose he needs to know current good options available and their
relative risk exposures. These help are given to a client in Indiainfoline as to in
which portfolio they can invest and what risks are related to it. They manage all
the respected returns of their clients and timely inform them for the switching to
be done between funds in cases of expected downfall in returns of their Mutual
Funds in future.
INDEX
NO PARTICULAR
1 INDUSTRY PROFILE
✔ FINANCIAL MARKETS
2 COMPANY PROFILE
✔ INTRODUCTION TO INDIA INFOLINE
✔ HISTORY OF INDAIINFOLINE
✔ VISION
✔ MISSION
✔ COMPANY’S PHILOSHOPY
✔ COMMITTEE
✔ COMPANY STRUCTURE
INDUSTRY PROFILE
• Trading, IPOs and Mutual Funds are the top three products
offered with 90% firms offering trading, 67% IPOs and
53% firms offering mutual fund transactions
A BRIEF HISTORY
Facilities
Terminals
We offer a wide range of services and products comprising broking (retail and institutional
equities and commodities), wealth management, credit and finance, insurance, asset
management and investment banking.
We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and
DGCX for commodities trading, CDSL and NSDL as depository participants. We are
registered as a Category I merchant banker and are a SEBI registered portfolio manager. We
also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received approval from the
Monetary Authority of Singapore to carry out corporate advisory and dealing in securities
operations. Two subsidiaries – India Infoline Investment Services and Moneyline Credit
Limited – are registered with RBI as non-deposit taking non-banking financial services
companies. India infoline Housing Finance Ltd, the housing finance arm, is registered with
the National Housing Bank.
HISTROY OF INDIAINFOLINE
ACHARYA INSTITUTE OF MANAGEMENT AND SCIENCES 22
The IndiaInfoline Group was originally incorporated on October 18, 1995 as Probity
Research and Services Private Limited at Mumbai under the Companies Act, 1956 with
Registration No. 11 93797. The IndiaInfoline Group commenced its operations as an
independent provider of information, analysis and research covering Indian businesses,
financial markets and economy, to institutional customers. We became a public limited
company on April 28, 2000 and the name of the Company was changed to Probity Research
and Services Limited. The name of the Company was changed to India Infoline.com Limited
on May 23, 2000 and later to India Infoline Limited on March 23, 2001.
In 1999, The IndiaInfoline Group identified the potential of the Internet to cater to a
mass retail segment and transformed our business model from providing information services
to institutional customers to retail customers. Hence we launched our Internet portal,
www.indiainfoline.com in May 1999 and started providing news and market information,
independent research, interviews with business leaders and other specialized features.
In May 2000, the name of our Company was changed to India Infoline.com Limited
to reflect the transformation of our business. Over a period of time, we have emerged as one
of the leading business and financial information services provider in India.
In the year 2000, The India Infoline Group leveraged it’s position as a provider of
financial information and analysis by diversifying into transactional services, primarily for
online trading in shares and securities and online as well as offline distribution of personal
financial products, like mutual funds and RBI Bonds. These activities were carried on by our
wholly owned subsidiaries.
The India Infoline Group’s broking services was launched under the brand name of
5paisa.com through our subsidiary, India Infoline Securities Private Limited and
www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It
combined competitive brokerage rates and research, supported by Internet technology
Besides investment advice from an experienced team of research analysts, we also offer real
time stock quotes, market news and price charts with multiple tools for technical analysis.
In March 2000, The IndiaInfoline Group acquired 100% of the equity shares of Agri
Marketing Services Limited, from their owners in exchange for the issuance of 508,482 of
our equity shares. Agri was a direct selling agent of personal financial products including
mutual funds, fixed deposits, corporate bonds and post-office instruments. At the time of our
acquisition, Agri operated 32 branches in South and West India serving more than 30,000
customers with a staff of, approximately 180 employees. After the acquisition, we changed
the company name to India Infoline.com Distribution Company Limited.
The India Infoline group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and it’s subsidiaries, is one of the leading players in the Indian
financial services space. India Infoline offers the entire gamut of financial services covering
investment products ranging from Equities and derivatives, Commodities, Portfolio
Management Services, Mutual Funds, Life Insurance, Fixed deposits, Loans, Investment
Banking, GoI bonds and other small savings instruments. It owns and manages the website,
www.indiinfoline.com, which is one of India’s leading online destinations for personal
finance, stock markets, economy and business.
A network of 753 business locations spread over 346 cities across India, facilitates the
smooth acquisition and servicing of a large customer base. All these offices are connected
with the corporate office in Mumbai with cutting edge networking technology.
The group caters to a customer base of over 500,000 over a variety of mediums viz. online,
over the phone and at our branches. The Group is strengthening its institutional broking and
investment banking services and has built a team of experienced research analysts, sales and
trading professionals.
IndiaInfoline refers to IndiaInfoline Ltd and its subsidiaries. The consolidated figures will
give a more meaningful picture of the Company to the investors. Reference to the company
or IndiaInfoline is to the business done by the company and its subsidiaries, unless otherwise
specified.
VISION
Our vision is to be the most respected company in the financial services space.
MISSION
“To become a full-fledged financial services company known for its quality of advice,
personalized services and cutting edge technology”
COMPANY PHILISOPHY
The IndiaInfoline Group is committed to placing the Investor First, by continuously striving
to increase the efficiency of the operations as well as the systems and processes for use of
COMMITTEE
Audit Committee
Terms of reference & Composition, Name of members and Chairman: The Audit committee
comprises Mr Nilesh Vikamsey, Chairman of the Committee, Mr Sat Pal Khattar, Mr Sanjiv
Ahuja and Mr Kranti Sinha, three of whom are independent Directors. The top Executivess and
Internal Auditors are invitees to the Meeting. The Terms of reference of this committee are as
under: - To investigate into any matter that may be prescribed under the provisions of Section
292A of The Companies Act, 1956 - Recommendation and removal of External Auditor and
fixation of the Audit Fees. - Reviewing with the management the financial statements before
submission of the same to the Board. - Overseeing of Company’s financial reporting process and
disclosure of its financial information. - Reviewing the Adequacy of the Internal Audit Function.
COMPANY STRUCTURE
IndiaInfoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of
both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory
Services and Portfolio Management Services. It offers broking services in the Cash and
Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered
with NSDL as well as CDSL as a depository participant, providing a one-stop solution for
clients trading in the equities market. It has recently launched its Investment banking and
Institutional Broking business.
Over the last five years, India Infoline sharpened its competitive edge through the
following initiatives:
Multi-channel delivery model :
The Company is among the few financial intermediaries in India to offer a complement
of online and offline broking. The Companies network of branches also allows
customers to place orders on phone or visit our branches for trading.
Multiple-trading options :
The Company harnessed technology to offer services at among the lowest rates in the
business.
Membership:
The Company widened client reach in trading on the domestic and international
exchanges.
Technology :
The Company provides a prudent mix of proprietary and outsourced technologies,
which facilitate business growth without a corresponding increase in costs.
Content :
The Company has leveraged its research capability to provide regular updates and
investment picks across the short and long-term.
Key features :
Membership on the Bombay Stock Exchange Limited and the National Stock Exchange
Commodities
India Infolines extension into commodities trading reconciles its strategic intent to
emerge as a one stop solutions financial intermediary. Its experience in securities
broking has empowered it with requisite skills and technologies. Increased offering:
The Companies commodities business provides a contra-cyclical alternative to equities
broking. The Company was among the first to offer the facility of commodities trading
in Indias young commodities market (the MCX commenced operations only in 2003).
Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to
Rs 20.02 bn. The commodities market has several products with different and non-
correlated cycles. On the whole, the business is fairly insulated against cyclical
gyrations in the business.
Technology :
The Company has extended the trading terminal to the investors home/workplace
reinforced with real-time commodity information and ledger position.
Rates :
The Company harnessed technology to offer services at among the lowest rates in the
business. Membership: The Company widened client reach in trading on the domestic
and international exchanges.
Key Features :
Enjoys memberships with the MCX and NCDEX, two leading Indian commodities
exchanges
Recently acquired membership of the DGCX
Multi-channel delivery model, making it among the select few to offer online as well as
offline trading facilities
Extended commodity trading to retail investors, among the few Indian financial
intermediaries to do so
INSURANCE
An entry into this segment helped complete the client's product basket; concurrently, it
graduated the Company into a one stop retail financial solutions provider. To ensure
maximum reach to customers across India, we have employed a multi pronged approach and
reach out to customers via our Network, Direct and Affiliate channels. Following the
The Companies entry into the insurance sector derisked the Company from a predominant
dependence on broking and equity-linked revenues. The annuity based income generated
from insurance intermediation result in solid core revenues across the tenure of the policy.
Over the last five years, India Infoline sharpened its competitive edge in this business
segment through the following initiatives:
Client base :
Grew its 40,000 strong client base through knowledge-led analysis, translating into an
attractive opportunity to cross-sell products and generate referral business.
Distribution network :
Invested in a distribution network of 177 branches across 19 states, which provided it with
an unmatched reach within its segment.
Hands-on training :
Invested aggressively in training its field force more than 100 hours a year in product
attributes across the insurance sector - highlighting various product details and marketing
skills apart from regular meets where best practices are shared.
Technology :
The Company provides a prudent mix of proprietary and outsourced technologies, which
facilitate business growth without a corresponding increase in costs.
The Company is the biggest corporate agency in India for life insurance products
The Company operates multiple channels, namely branch network, preferred client
group, direct marketing, corporate tax advisory, walk-ins and seminars, to reach out to
customers.
INVEST ONLINE
India Infoline has made investing in Mutual funds and primary market so
effortless. All you have to do is register with us and that’s all. No paperwork no
queues and No registration charges.
If you are 5p customer use your existing login ID and Ledger (fund transfer) password.
Indiainfoline offers you a host of mutual fund and IPO choices under one roof; backed by
in-depth information and research to help you invest effortlessly.
INVEST IN MF
Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth
research and advice from research house and tools configured as investor friendly.
Investing in Mutual Funds has never been easier
APPLY IN IPOs
You could also invest in Initial Public Offers (IPOs) online without going through the
hassles of filling ANY application form/ paperwork.
Loans
They say you mustn't trust a man till you know his house. Everyone likes hearing people
say Wow, what a beautiful house you have! From cave dwelling, we have evolved and now
a house provides far more than just shelter...it also becomes a source of pride. A Housing
Loan is used as finance to help you buy or modify that perfect home.
NRI Loans
Land Loans
Home Loan
Land Loans
NRI Loans
Balance Transfer
• LTV Ratio will not exceed a particular percentage. This percentage differs from HFI
to HFI and the components of the value of property are covered in Cost of Property
• Elastic can be stretched only to a certain extent. The loan tenure also will not go
beyond 20 years. However, HFIs do provide for different tenures with different
terms and conditions.
• Your EMI normally does not exceed 50% of your Gross Monthly income.
• The total monthly payment towards all the loans you have availed of, including the
present one, will normally not exceed 50% of your Gross Monthly Income.
• Your loan eligibility is calculated using LTV, IIR and FOIR norms and the lowest
from the three is chosen.
• Your profile is considered by the HFI before your repayment capacity is judged.
• If the HFI insists on a personal guarantor, you need to provide one before the
disbursement of your loan.
• Your property should be both technically and legally clear before your loan can get
disbursed by the HFI.
• In case you have bought an under construction property, your loan will be partly
disbursed, as per the stages of construction and PEMI needs to be paid on it.
• The disbursement, in most cases, will be in the name of the builder or the seller or
the society or the development authority unless you have made some payment to
them.
• Repayment of the loan is either via Deduction Against Salary, Post Dated Cheques,
standing instructions or by cash / DD.
• You can either choose to repay the loan using the Annual rests or Monthly rests.
• Upfront Fees
• Rate of Interest
• Additional Charges
• Incidental Charges
• Prepayment Charges
Repayment capacity
Your repayment capacity is judged according to your income and your income is considered
differently if you are salaried and differently if you are self-employed. Income is used to
calculate the amount of money that you will be able to shell out every month towards your
loan installment using IIR and FOIR norms. FOIR calculation also takes into account the
installments of loans you are currently repaying. The lower between the IIR and FOIR is
chosen as your maximum repayment capacity. This is then compared to the loan amount
that you have requested for and the loan eligibility as per LTV norms and the lowest of
these would be your final loan eligibility.
Salaried Self-employed
Any extra income on your salary slip Any non-recurring income that affects profit
(including overtime, etc.) is subtracted (like sale of asset) is subtracted.
50% of the average variable income over the Any non-recurring expense that adversely
last 6 months is added affects profits and was not capitalized (like
repairs and maintenance) is added
Any fixed cash or voucher payment that can 50% of the average depreciation of the last
be proved is added. two years is added.
HRA that can be received and is not being
received is added.
Credit Documentation
Would you trust any Tom, Dick or Harry with any matter at all? We all require a certain
assurance from people before we trust them; some sort of guarantee that they are
trustworthy. For HFIs this guarantee rests in the form of tangible documents. Credit
documents are required by all HFIs but vary in kind based on your occupation, employer,
qualifications, experience, etc. Credit documents can be classified as
Income documents:
Money money money...no one can take a chance on the credibility of money matters
because at the end of the day, business is business. Almost everything about your loan is
based on your income and therefore proof regarding the same is required by the HFI to
ensure that no miscommunications occur.
Personal documents:
Previously, tribes and clans had passwords without which you could not enter into the
territory; as proof of who he was, King Solomon had a ring as identification. Throughout
history, proof of identity has been important as mistaken identity has never been
uncommon. To prevent any such shams, HFIs also require a set of documents, for a general
Home Loan Product, identifying who you are.
He following list out all the documents needed. {under this line will be placed the document
sent separately as an excel sheet}
Legal Documentation
We might be living in the electronic age but that doesn't take away the importance and
monopoly of paper as everything to do with law will always be on paper. To stick by this
unwritten rule, there are legal documents that need to be submitted by you to the HFI for
mortgaging and these differ from state to state and also depend on your property type. The
These documents do NOT cover the entire list needed and if it is a resale property, the
pertaining agreements, etc. will also need to be attached.
Tax Benefits
Tax benefits are currently available only under Home Loans and Home Extension loans.
The details are given under the respective sections.
Property Insurance
Some events are not in our hands and are completely unavoidable. Floods, drought and
storms uproot trees and destroy the land. Along with this the birds lose their homes and
• The longer your tenure, the greater the discounts insurance companies offer you.
News Letter
The Daily Market Strategy is your morning dose on the health of the markets. Five
intra-day ideas, unless the markets are really choppy coupled with a brief on the global
markets and any other cues, which could impact the market. Occasionally an
investment idea from the research team and a crisp round up of the previous day's top
stories. That's not all. As a subscriber to the Daily Market Strategy, you even get
research reports of India Infoline research team on a priority basis.
The IndiaInfoline Weekly Newsletter is your flashback for the week gone by. A weekly
outlook coupled with the best of the web stories from India Infoline and links to
important investment ideas, Leader Speak and features is delivered in your inbox every
Friday evening.
Portfolio Management
It is all about your money, being managed by the experts, while you continue with your
routine life. Isn't it simple and totally hassle free.
What's more, you can keep track of your dividends / bonus / rights issues with paperless
tracking. So you always know how fast your investment is growing. It basically means
assigning the right job to the right person.
Research
IIFL special research cell where some of India's finest financial analysts bring you
intensive research reports on how the stock market is faring, when is the right
time to invest, when to execute your order and more.
IIFL make sure that investors are always prepared to make own investment decision
when the opportunity arises.
IIFL bring you intensive research reports - whether sectoral or company-wise or more -
that tell you exactly when and where to invest. So whenever there is an exciting
investment opportunity, you are in the know and always ready to invest. Research
reports IIFL will help you choose your investments wisely, without wasting time.
Presented in a lucid and easy-to-understand format; these reports help you make
informed decisions.
The group recently commenced its offshore asset management business under the ‘IIFL
Capital’ brand. Also, IIFL Securities Pte Ltd received approval from the Monetary
Authority of Singapore to carry out global asset management operations. The Singapore
arm can now offer broking, asset management and investment banking services.
IIFL Inc received an FII license, thereby facilitating the investment of dedicated funds
in India.
With offices in New York, Singapore and Dubai, IIFL Capital aims to offer India-
focused equity products, fund management and advisory services for offshore and
domestic wealth management customers.
2009
• Retail broking:
IndiaInfoline has around 3 lakh customers. It has a tie-up with Bank of Baroda
for e-broking.
• Institutional broking:
IndiaInfoline has roped in Bharat Parajia, director of sales at CLSA in
Singapore, H Nemkumar, CLSA's country head for India, Aniruddha Dange, CLSA's
head of research in India, and Vasudev Jagannath, CLSA's head of sales in India.
While Parajia will join as head of institutional sales at India Infoline, Dange will be
head of research and Nemkumar head of investment banking.
• Consumer Finance:
Ticker: 532636
Exchanges: BOM
2009 Sales: 9,630,900,000
Major Financial
Industry:
Sub Securities
Industry: Brokerage
Country: INDIA
Employees: 14105
Competition related - due to high brand proliferation, the market from a consumer standpoint
has become “commoditized” given product parity in terms of offerings.
Brand related - challenge being to maintain high decibel and impactful communication on a
sustained basis.
Key executives
S.No Name Designation
1 Mr. Nirmal Jain Chairman and Managing director
2 Mr. A K Purwar Director
3 Mr. R Venkataraman Executive Director
4 Mr. Nilesh Vikamsey Independent Director
5 Mr. Kranti Sinha Independent Director
6 Mr. Sat Pal Khattar Non Executive Director
Market Positioning:
Market positioning statements of India Infoline are “At India Infoline we give you
single window service” and “We also ensure your comfort”. So, India Infoline focus on the
consumers who prefer almost all investment activities at same place by providing number of
various financial services. At India Infoline a person can purchase or sell shares, debentures
etc. and at the same place also demat it. India Infoline also provides other investment option
to the same person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc.
and help the person in designing his portfolio. By this way India Infoline provides comfort to
its customers.
Target Market:
India Infoline uses demographic segmentation strategy and segment people based on
their occupation. India Infoline uses selective specialization strategy for market targeting.
Target person for the India Infoline Stock Broking and India Infoline Investment Service are
persons who can work as sub-broker for the companies. Companies focus on Advisors of
Insurance and post office, Tax consultants and CAs for making sub-broker
India Infoline uses one level marketing channel for investment product distribution.
Sub-brokers work as intermediary between consumer and company. Company has both
forward and backward flow of activity through channel. Company distributes stationery,
brokerage, and information forward to its sub-broker. The sub-brokers send filled forms,
queries, amount of investment etc. back to the company.
India Infoline provides training to the sub-brokers because they will be viewed as the
company by the investors. The executives of India Infoline explain various new schemes of
investment to the sub-brokers with its objective, risk factors and expected return. Company
also periodically arrange seminar to guide sub-brokers.
India Infoline also publishes its weekly Stock Market Newsletter ‘Market Mantra’.
HUMAN RESOURCES
The India Infoline Group’s Human Resources policy is based on the philosophy of “Owner
Mindset”. We believe that the key to our continued growth lies in unleashing the
entrepreneurial energy of our employees. We encourage all employees to behave more as
51owners of their departments rather than employees. Our people are highly driven and work
towards increasing India Infoline’s brand and market share across product lines.
• To know percentage of people invest in mutual fund, insurance, equity and other
financial products and services.
• To know future prospects of their investment in the financial products and
services.
i) Data Collection:
Primary data:-
Primary data are data freshly gathered for a specific purpose. The various sources of
primary data for my project are as follows.
• Banks.
• Local residents.
Secondary Data:-
Secondary data provide a starting point for research and offer the valuable source of
information.
The secondary data was the most important source for my project because it gave us
information about company profile, competitors, market scenario, market share, etc.
It also give us information of the financial industry, its emergence,& its importance in
country progress.
We used secondary data for following sources:
• Internet
• Indiainfoline brochure
✔ Stock Analysis :
Indiainfoline stock research has performed very well over the past few years
and the Indiainfoline Model Portfolio has consistently outperformed the benchmark
indices. The fundamentals of select scrips are thoroughly analyzed and an actionable
advice is provided along with investment rationale for each scrip.
✔ Flash News :
Key developments and significant news announcements that are likely to have
an impact on markets / scrips are flashed live on trading terminals. Flash news keeps
the market participants updated on an online basis and helps them to reshuffle on their
holdings.
✔ Nifty Tracker :
Nifty Futures is the most traded instrument with highest volumes in F & O and
excellent liquidity. The team tracks the Nifty Future and generates calls based on
unique trading system which is a result of their focused research over the past few
years. The objective is to generate positive returns for traders who are looking for a
high risk / high reward product.
✔ Online Chart :
An online forum to help clients, specifically day traders in judging the
directions of the market and stocks which are in the limelight.
✔ Position Calls :
Indiainfoline “Position Trading Calls” are based on thorough analysis of the
price movement in select scrip’s. These calls are for a 10-15 day time span with stop
loss and target levels. These calls are flashed on their terminals during market hours.
✔ Derivative Strategies :
Their analysts take view on the Nifty and select stocks based on the
derivatives data and technical tools. Suitable “Derivative Strategies” are devised,
which are flashed on their terminals and published in their reports.
✔ Futures Calls :
A customized product for HNIs to help them trade with leveraged position;
wherein clients are advised on the stocks with entry, exit and stop loss level for short
term benefits. Over and above this, financial status of the calls is monitored at all
times.
OTHER ADVATAGES
Advancements in Internet and Internet-based trading have transformed the way firms
operate in the broking industry. We recognize that technology is an important tool for
broking operations.
We believe that online trading will gain market share due to significant advantages that it
offers
• It enables the customer to trade directly without any agent intervention
• It offers customers the convenience of trading from almost anywhere
Net Magic Solutions sources bandwidth from VSNL and Bharti, thereby providing us
with redundancy in the event of a failure of one of the provider’s gateway. By co-locating
some servers with Reliance Infocom we have further increased our redundancy.
The IndiaInfoline Group has implemented CISCO Pix firewall, managed by Net Magic.
All our servers, routers and desktops are behind this firewall. All connections to our trading
servers happen in a secure manner using 128 bit encryption. We have a security certification
from Thawte.
SWOT Analysis:
Strengths
Weaknesses
• Lack of a banking arm to complete the bank-broker-depository chain
• Insignificant presence in institutional Segment
Opportunities
• Changing demographics with higher disposable income and increasingly complex financial
instruments will drive demand for investment advisory services
• Rapid penetration of Internet and computers means that technology enabled financial
services will gain market share
Threats
• Economic slowdown
• Volatile movement in indices events like May 17, 2004
• Stock markets falls will have a cascading effect on our mutual fund mobilization
• Increase/decrease in interest rate can affect our debt/ income fund mobilizations
• Future changes in personal taxation rules can impact insurance sales
• Increasing competition from large and particularly foreign players
Intensity of Competition:
Lot of brokerage companies are moving towards consolidation with the smaller ones
becoming either franchisees for the larger brokers or closing operations.
Buyer Power
Lack of Expertise Curtails Bargaining Power
Retail investors often lacks the knowledge and expertise in the financial sector that calls them
to approach the broking houses.
Supplier Power
Year 2007-08
List Revenue Profit before Profit after tax
interest,
depreciation and
tax
Indiainfoline Ltd. 6,724.4 2,772.5 1,286.9
India Infoline 1,522.1 1,208.9 315.5
Investment
Services Ltd
Moneyline Credit 113.2 19.4 20.7
Ltd
India Infoline 18.4 71.3 56.0
Distribution
Company Ltd
Services Ltd
Services Ltd
Commodities Ltd
Research Services
Ltd
This is the tabel represents the Revenue, profit before interest, depreciation and
tax in each and every segement of IndiaInfoline and profit after tax in each and
every segment. If we see this table we will find that the total revenu for 2008-09
was 10235.9, and 4022.2 is his profit before interest, depreciation and tax which
is
4022.2 * 100 =39.3%
10235.9
And if we calculate the profit on total revenue it will be
And if we calculate the total Interest, depreciation and tax they will be
4022.2-1639.3=2382.9
Rs. Mn
Lists 2007-08 2007-06
Gross Income 6724.4 2867.2
Profit before interest, depreciation and 2,772.5 983.4
taxation
Less: Appropriations
Dividend:
pursuant to merger)
2009 2008
INCOME
EXPENDITURE
This is the Profit and loss account for the years 2007-08 and 2008-09. In which we can see
that the turnover, sale and other profits have decreased from the 2007-08 to 2008-09, which is
an impact of recession.
The total income is also decreased from 643.61 to 571.61 in 09, which is around 11.19% of
the previous year or 72 cr.
In the expenditure part of 2008-09 as compare to previous yes it has also decrease from 393
to 383 which is around 3%. In this the total is decreased instead of increase in employee cost
and Miscellaneous Expense to gain the better profit.
Earning per share has come down from 27.62 to 3.73 which is 90%
Sources of funds
Loan funds
Application funds
Fixed
asset(including
intangibles)
103.24 63.73
Currents asset
loan and advance
778.75 872.38
Less: current
liabilities &
This is the Balance sheet of IndiaInfoline showing the comparison for the period of 2007-08
and 2008-09.
In this we can see that the total has come down from 1180 to 1049 in 2008-09 period. Which
is all the impact of recession not only on this broking firm, on all others too, the same impact
was their in this period, their is a cost cutting and reduction on other expenses.
The biggest of this can be seen on the liability side on unsecured loans which has come down
from 130.57 to 00.10, which is more then 99%, organization has increased his cash from
61.62 to 264.10 for the period of 2008-09 as compare to 2007-08.
COMPETITORS
(ACCORDING TO VOLUME)
This table represent the comparision between the indiainfoline and other share broking firms
or inverstment organisation, which includes last price of share, market capital, sales turnover,
net profit and total assets.
This graph shows thr last share price of the organisation, in this we can see that Nalwasons
investment has the highest share price, as compare to others it is very high. The indiainfoline
stand very short in this.
When it comes to market capital the Indiabulls has the highest market capital, and second is
Indiainfoline just behind of Indiabulls and rest other are no ware in this graph.
When we talk about sales turnover of the broking firm, or investment organisation again the
indiabulls has the hight sales turnover, as compare to other its very high, other stand no ware
infront of him, but still indiainfoline manages second position.
There are two vacent place which indicates no profit, but it is not like that, here it means loss
both HSBC and NETWORK 18 has suffered a loss of 15.21 and 19.41 respectively.
From this table the coloum of indiabulls has been removes just me make this take appropriate
and attractive, because the total assets of Indiabulls is more then 14700 (NOT SHOWN IN
GRAPH) where as the total of all others is 6996 only.
But finally we can conclude that the Indiainfoline has manage to get the highest net profit
among all his competitors.
• The first premium mobilization from insurance broking business stood at Rs 410
million.
• The net NPA on the books continue to remain less than 1%.
• Its cash and cash equivalent stood at Rs 9.3 billion and debt was at Rs 300 millions.
➢ Margin money of India infoline is higher than other firm like Indiabulls,Geojit,Motilal
Oswal,there is no restriction of margin moneye.But in India Infoline,the minimum
margin money should be 5000/2555 rs..
➢ Exposure is less than other firms. India Infoline offers eight times exposure on margin
where as Religare and Indiabulls offer twenty times exposure on margin money.
➢ Religare takes Rs.299 for lifetime services, where as India infoline takes Rs.555.
➢ Relationship manager changes many times, it creates problem for the offline customers
.
➢ India Infoline has hidden charges, Customer are not much aware about that.
➢ Most of the customers approach towards the broking firm is through the relationship
manager.
➢ Most of the people are not much aware of share market and its benefit.
Recommendation
➢ To increase awareness about Share Market and the name India Infoline itself, the
company should organize campaign. The campaign can be weakly, monthly, yearly, it
will give a good result to the company to capture market in the competitive position.
➢ The company should reduce the margin money. It can help to acquire more
customers, if the firms bring plans for no boundation of margin money.
➢ The Company should increase Exposure. It is the good tool to capture the market.
CONCLUSION
I am much thankful to india infoline for providing me the opportunity for doing training
programme in the organization as management trainee. While doing my sip in the reputed
broking firm India infoline I had got a chance for knowing and analyzing the share market. I
BIBLIOGRAPHY
• www.indiainfoline.com
• www.5paisa.com
• www.nse.com
• www.moneycontrol.com
Book source:-
• Financial management
- Khan & Jain.
• Principal of financial management
-Prassana Chandra
• Business Environment
- Francis Cherunilam