A study on fundamental & technical analysis of

selected companies in the Indian Infrastructure sector"

HARSH BHATT :- 202300620010122

Pratham Chauhan :- 202300620010010
[Link] OF CONTENTS

1.1 INTRODUCTION
1.2 INDUSTRY OVERVIEW
1.3 COMPANY OVERVIEW
1.4 SWOT ANALYSIS
1.5 Michael Porter’s Five Force
1.6 LITERATURE REVIEW
1.7 RESEARCH METHODOLOGY
1.8 OBJECTIVE
1.9 Ratio ANALYSIS
1.10 TECHNICAL ANALYSIS
1.11 FINDINGS
1.12 CONCLUSION
 1.1 INTRODUCTION

 Definition:
 The infrastructure sector encompasses physical and organizational structures, facilities,
and systems essential for the operation of society and the economy.

 Key Components:
 Transportation: Roads, railways, airports, ports.
 Energy: Power plants, renewable energy, transmission lines.
 Water and Sanitation: Water supply, sewage systems, irrigation.
 Telecommunications: Broadband, fiber optics, satellites.
 Urban Development: Housing, public spaces, smart cities.
 Importance:
 Economic Growth: Enables trade, industry, and job creation.
 Social Impact: Improves quality of life through accessibility and services.
 Sustainability: Key to reducing carbon footprints and enabling green initiatives.

 Current Trends:
 Digital Transformation (Smart Infrastructure).
 Green and Renewable Energy Initiatives.
 Public-Private Partnerships (PPP).
 Sustainable Urbanization.
 1.2 INDUSTRY OVERVIEW

 Indian Infrastructure Sector Overview

 The infrastructure sector drives India's economic growth, encompassing transportation,
energy, urban development, telecommunications, and social infrastructure. Robust
infrastructure enhances connectivity, fosters industrial growth, and supports sustainable
development, essential for India’s $5 trillion economic aspiration. With rapid
urbanization and increasing demand, the government and private investments are
transforming the sector into a growth catalyst, laying the foundation for India’s
emergence as a global economic powerhouse.
  Key Growth Drivers

Landmark programs like the National Infrastructure Pipeline ( ₹111 lakh

Gove crore investment) and Gati Shakti Master Plan aim to modernize
rnme logistics, streamline supply chains, and attract investments, ensuring
nt sustainable infrastructure growth.
Initia
tives

Priva The PPP model mobilizes resources, accelerates project delivery, and
te drives innovation in sectors like highways, airports, and renewable
Secto energy.
r
Parti
cipati
on
Initiatives like the Smart Cities Mission and Housing for All address
India’s rapid urbanization, fostering sustainable infrastructure
Urba
development.
nizati
on
 Market Size and Opportunities
The infrastructure sector is set to grow at a 7–9% CAGR (2023–2028). Transportation
leads with road, rail, and port projects boosting connectivity, while renewable energy
investments align with India’s target of 50% non-fossil capacity by 2030. Urban
infrastructure, including housing and utilities, is expanding to meet rising middle-class
demand, presenting immense growth opportunities for investors and stakeholders.
 Challenges to Growth

Infrastructure projects face long gestation periods and a lack of affordable

Financing Gaps :-
credit, requiring innovative financing.

Regulatory Bottlenecks :- Land acquisition, environmental clearances, and delays increase

costs and deter private investment.

Resource Constraints :- Shortages of skilled labor and advanced machinery, along with reliance on
imports, highlight the need for localized capacity-building.
 1.3 Company Overview
1. Larsen & Toubro (L&T)

2. Adani Ports and Special

Economic Zone (APSEZ)

3. Ambuja
Cements
4. UltraTech Cement

5. Godrej Properties

6. Indian Oil Corporation (IOC)

[Link] Petroleum Corporation Ltd (BPCL)

8. Apollo Hospitals Enterprise Ltd

9. Reliance Industries Ltd

10. Indian Railway Catering

and Tourism Corporation
(IRCTC)
 1.4 Swot Analysis
• L&T Comprehensive SWOT Analysis
• Adani Ports and Special Economic Zone
(APSEZ)
• Reliance Industries SWOT Analysis
1.5 . Michael Porter’s Five Force

Rivalry of
competitors

Potential
of
Threat of
new
substitutes market
Porter's
entrants
Five
Forces

Customers Suppliers
strength strength
1. Competitive Rivalry

Fragmented Market Large-Scale Projects: High

Structure :Many players operate investment attracts major firms
across transportation, energy, competing through aggressive
and urban development, leading pricing and innovation.
to intense competition.

Focus on Innovation: Companies

adopt technology, improve Government Tenders Process:
efficiency, and promote Competitive bidding lowers profit
sustainability to stand out. margins, increasing rivalry.

Example: Firms like L&T, Adani

Ports, and GMR Infrastructure
compete in highways, airports,
and energy.
2. Threat of New Entrants

High Capital Needs: Large upfront Brand Advantage: Established

investments create financial firms have strong reputations and
barriers. government ties.

Economies of Scale: Existing Regulatory Hurdles: Land

players operate at lower costs with acquisition and environmental
higher efficiency. approvals are challenging.

Example: Government initiatives

and PPPs may ease entry slightly.
 3. Bargaining Power of Suppliers

 Specialized Equipment: Dependence on imported machinery increases supplier power.

 Raw Material Dependence: Cement and steel price fluctuations impact costs.

 Labor Costs: Skilled labor shortages raise supplier influence.

4. Bargaining Power of Buyers

• Government Dominance: The government dictates terms through bidding.

• Price Sensitivity: Buyers push for cost-effective solutions.

• Quality Expectations: Demand for advanced, sustainable infrastructure is rising.

5. Threat of Substitutes

 Essential Services: Infrastructure is crucial for economic growth.

 High Switching Costs: Changing providers is costly and complex.

 No Viable Alternatives: Technology enhances but doesn’t replace infrastructure.

 7. Literature Review(Fundamental & Technical)
Objectives (Author Name &Year) Literature review

• To emphasize the importance of • Kothari (20018) • Fundamental Analysis

fundamental analysis in and Its Role in
evaluating a company’s intrinsic Investment Decisions
value.
• To assess how financial ratios,
earnings growth, and
profitability contribute to
informed investment decisions.
• To explore the growth trajectory • Bhatia (2020) • The Infrastructure
and challenges of the Indian Sector in India: Growth
infrastructure sector. and Challenges
• To provide a framework for
analyzing risks and
opportunities within the sector.
• To demonstrate the role • Penman (2017) • Financial Statement
of financial statement Analysis: A
analysis in fundamental Comprehensive
analysis. Approach
• To evaluate how
financial reports can
predict a company's
growth and
sustainability.
• To assess the effectiveness of advanced Patel & Rathod (2021) Advanced tools like machine learning and
technical indicators in sector-specific algorithmic trading improve technical
stock analysis, particularly in the analysis (Patel & Rathod, 2021). These
infrastructure sector. tools are effective in infrastructure stocks,
capturing price shocks missed by
traditional indicators. They enhance
prediction accuracy and trading efficiency.

• To examine the effectiveness of Murphy (2019), Brock, Lakonishok, & Technical analysis predicts price
technical analysis in predicting price LeBaron (2022) movements using past data. Murphy
movements, particularly in (1999) highlights its reliance on price
infrastructure-related equities. patterns and volume. Brock et al. (1992)
find indicators like RSI and moving
averages useful. It is crucial for
infrastructure equities due to market
cycles.
• To evaluate the effectiveness of Bansal (2017), Kumar et al. (2020) Emerging markets are less efficient due to
technical analysis in predicting price lower institutional participation (Bansal,
movements in emerging markets, with 2017). This inefficiency enhances the
a focus on Indian equities. effectiveness of technical analysis. Kumar
et al. (2020) find that trend-following
strategies, like moving average crossovers,
capture short-term momentum in
infrastructure stocks.
 1.7 Research Methodology

1. Objectives of Study

 Conduct fundamental analysis of infrastructure companies, focusing on financial statements,

profitability, liquidity, solvency, and valuation metrics.
 Perform technical analysis using indicators like moving averages, RSI, and MACD.
 Compare performance against benchmarks like the Nifty Infrastructure Index.
 Provide investment recommendations based on the analysis.

2. Need of the Study

 Helps investors make informed decisions based on financial and market trends.
 Identifies growth opportunities in the Indian infrastructure sector.
 Aids in recognizing undervalued or overvalued stocks.
 Supports risk assessment and expected returns in infrastructure investments.
3. Research Design

Data Collection:
Secondary Sources: Financial reports, SEBI filings, stock data from NSE/BSE, and industry reports.
Sampling: Select 5-10 major infrastructure companies based on market cap, trading volume, and sector contribution.

Analytical Framework:
Fundamental Analysis: Assess profitability, liquidity, solvency, valuation ratios, earnings growth, and macroeconomic
factors.
Technical Analysis: Analyze trend indicators (moving averages), momentum (RSI, MACD), and chart patterns
(support/resistance, candlesticks).

4. Need for the Study

Economic Significance: Importance of infrastructure in India's growth.

Investment Potential: Critical insights for investors and stakeholders.

Strategic Insights: Understanding strengths and weaknesses of key sector players.

5. Limitations
Market Volatility: Short-term market changes affect technical predictions.

Historical Dependence: Past performance may not predict future trends.

External Factors: Policy, economic conditions, and interest rates impact valuations.

Sector-Specific Risks: Regulatory, project delays, and financing challenges affect infrastructure projects.
 1. Current ratio

Indian
Adani Railway
Ambuja Bharat Apollo
Larsen & Ports and Catering
Cements Indian Oil Petroleum Hospitals Reliance
Toubro Special UltraTech Godrej and
Year Corporatio Corporatio Enterprise Industries
(L&T) Economic Cement Properties Tourism
n (IOC) n Ltd Ltd Ltd
Zone Corporatio
(BPCL)
(APSEZ) n (IRCTC)

2024 1.27
0.83 2.32 0.84 1.61 0.69
0.88 2.68 1.09 1.95

2023 1.37
1.07 1.75 0.98 1.62 0.75
0.77 2.53 1.12 1.82

2022 1.39
1.29 2 0.99 2.26 0.76
0.76 2.91 1.11 1.87

2021 1.46
1.56 1.26 1.17 2.27 0.73
0.93 2 1.04 1.77

2020 1.18
1.59 0.98 1.03 1.66 0.69
0.7 1.19 0.5 1.6
 (2) Quick Ratio

Indian
Adani Ports Ambuja Apollo Railway
Larsen & Bharat
and Special Cements Indian Oil Hospitals Reliance Catering and
Toubro UltraTech Godrej Petroleum
Year Economic Corporation Enterprise Industries Tourism
(L&T) Cement Properties Corporation
Zone (IOC) Ltd Ltd Corporation
Ltd (BPCL)
(APSEZ) (IRCTC)

2024 1.24 0.82 2.08 0.52 0.81 0.35 0.29 2.6 0.74 1.95
2023 1.34 1.06 1.5 0.71 0.81 0.37 0.24 2.46 0.91 1.82
2022 1.36 1.28 1.71 0.72 1.13 0.38 0.26 2.78 0.88 1.86
2021 1.42 1.55 0.99 0.98 1.14 0.36 0.44 1.86 0.86 1.77
2020 1.14 1.58 0.81 0.77 0.83 0.35 0.35 0.83 0.39 1.59
 (3)Net Profit Margin

Indian
Railway
Adani
Ambuja Bharat Apollo Catering
Larsen & Ports and
Cements Indian Oil Petroleum Hospitals Reliance and
Toubro Special UltraTech Godrej
Year Corporati Corporati Enterprise Industries Tourism
(L&T) Economic Cement Properties
on (IOC) on Ltd Ltd Ltd Corporati
Zone
(BPCL) on
(APSEZ)
(IRCTC)

2024 7.07 19.79 12.44 9.96 22.35 5.08 5.97 14 7.87 26.03
2023 6.85 -5.82 12.2 7.93 31.22 0.97 0.4 16.73 8.18 28.41
2022 7.53 4.42 12.41 13.78 22.56 4.01 2.43 10.97 9.22 35.32
2021 14.77 29.02 14.6 12.15 -3.45 5.71 8.22 1.16 13 24.25
2020 7.84 25.63 15.24 13.19 14.75 0.27 0.95 4.84 9.17 23.23
 (4) Operating Profit Margin

Indian
Railway
Adani
Ambuja Bharat Apollo Catering
Larsen & Ports and
Cements Godrej Indian Oil Petroleum Hospitals Reliance and
Toubro Special UltraTech
Year Propertie Corporati Corporati Enterprise Industries Tourism
(L&T) Economic Cement
s on (IOC) on Ltd Ltd Ltd Corporati
Zone
(BPCL) on
(APSEZ)
(IRCTC)

2024 4.89 28.82 16.64 13.55 28.28 6.72 8.36 18.41 10.34 36.41
2023 5.38 6.43 15.34 11.68 39.55 1.15 0.76 18.94 10.25 37.47
2022 6.66 18.34 15.05 16.17 30.6 5.27 3.32 14.16 11.04 47.55
2021 4.95 43.8 20.01 18.33 6.72 7.77 6.98 2.04 9.32 28.29
2020 4.66 26.92 20.56 12.62 23.88 1.56 1.32 5.33 13.22 32.71
 (5) Return On Capital Employed

Indian
Adani Ports Ambuja Apollo Railway
Larsen & Bharat
and Special Cements Indian Oil Hospitals Reliance Catering and
Toubro UltraTech Godrej Petroleum
Year Economic Corporation Enterprise Industries Tourism
(L&T) Cement Properties Corporation
Zone (IOC) Ltd Ltd Corporation
Ltd (BPCL)
(APSEZ) (IRCTC)

2024 15.16 3.37 8.44 15.89 5.42 24 37.06 12.04 7.68 44.94
2023 12.21 0.73 11.27 13.69 8.35 5.03 4.02 12.87 8.29 49.19
2022 11.9 1.87 8.88 16.83 6.94 17.45 15.18 9.32 6.9 43.53
2021 17.85 5.75 12.84 18.59 0.86 17.91 18.83 2.26 3.41 13.6
2020 14.87 4.91 11.88 13.63 12.18 5.32 5.56 6.32 6.95 50.85
 6) Return on Equity

Indian
Adani Ports Ambuja Apollo Railway
Larsen & Bharat
and Special Cements Indian Oil Hospitals Reliance Catering and
Toubro UltraTech Godrej Petroleum
Year Economic Corporation Enterprise Industries Tourism
(L&T) Cement Properties Corporation
Zone (IOC) Ltd Ltd Corporation
Ltd (BPCL)
(APSEZ) (IRCTC)

2024 14.44 5.93 6.31 11.68 5.37 22.42

35.72 13.1 8.16 34.4
2023 10.97 -1.67 8.96 9.29 6.59 6.12
3.6 15.67 9.02 40.59
2022 11.74 1.12 7.32 14.34 5.67 18.42
17.69 10.89 8.29 35.23
2021 18.77 8.87 9.37 12.32 -0.49 19.76
34.91 2.02 6.73 12.95
2020 12.8 9.77 8.81 14.25 7.52 1.4
8.08 11.79 7.9 39.81
 (7) Return on Asset

Indian
Adani Ports Ambuja Apollo Railway
Larsen & Bharat
and Special Cements Indian Oil Hospitals Reliance Catering and
Toubro UltraTech Godrej Petroleum
Year Economic Corporation Enterprise Industries Tourism
(L&T) Cement Properties Corporation
Zone (IOC) Ltd Ltd Corporation
Ltd (BPCL)
(APSEZ) (IRCTC)

2024 5.31 2.1 5.29 7.15 2.02 8.66 15.42 8.15 4.38 18.24
2023 4.55 -0.6 7.11 5.66 3.29 1.96 1.16 10.06 4.85 19.77
2022 4.68 0.4 6.01 8.76 3.27 6.23 5.84 6.39 4.45 17.3
2021 7.66 3.29 7.38 6.64 -0.29 6.54 13.54 1.08 3.66 6
2020 4.72 3.73 7.03 7.6 3.88 0.42 2.12 4.64 3.18 16.26
 (8)Earning Per Share

Indian
Adani Ports Ambuja Apollo Railway
Larsen & Bharat
and Special Cements Indian Oil Hospitals Reliance Catering and
Toubro UltraTech Godrej Petroleum
Year Economic Corporation Enterprise Industries Tourism
(L&T) Cement Properties Corporation
Zone (IOC) Ltd Ltd Corporation
Ltd (BPCL)
(APSEZ) (IRCTC)

2024 66.95 8.05 11.74 239.58 20.3 28.77 124.9 140.5 6.21 69.45
2023 55.85 -2.22 12.86 170.53 23.58 5.98 8.78 150.9 6.39 62.87
2022 56.09 1.41 10.33 245 18.92 26.34 41.27 92.52 5.78 41.48
2021 80.74 9.49 10.48 185.2 -1.69 23.78 90.98 14.6 4.96 11.87
2020 47.59 9.43 9.02 189.15 15.58 1.43 13.64 67.57 4.88 33.04
 (9) Dividend Pay-Out Ratio

Indian
Adani Ports Ambuja Apollo Railway
Larsen & Bharat
and Special Cements Indian Oil Hospitals Catering and
Toubro UltraTech Godrej Petroleum Reliance
Year Economic Corporation Enterprise Tourism
(L&T) Cement Properties Corporation Industries Ltd
Zone (IOC) Ltd Corporation
Ltd (BPCL)
(APSEZ) (IRCTC)

2024 9.06 62.13 21.26 15.86 0 27.81 20.33 21.35 14.48 32.4
2023 39.39 -225.28 48.99 22.22 0 40.1 69.6 23.53 11.76 39.77
2022 32.09 343.08 0 15.1 0 39.86 167.84 6.48 10.99 36.16
2021 22.3 0 0 7.02 0 44.15 23.92 36.48 12.27 21.06
2020 21.02 35.75 188.57 6.98 0 367.06 179.59 27.37 12.46 42.07
 (10) Dividend Per Share

Indian
Adani Ports Ambuja Apollo Railway
Larsen & Bharat
and Special Cements Indian Oil Hospitals Reliance Catering and
Toubro UltraTech Godrej Petroleum
Year Economic Corporation Enterprise Industries Tourism
(L&T) Cement Properties Corporation
Zone (IOC) Ltd Ltd Corporation
Ltd (BPCL)
(APSEZ) (IRCTC)

3.07
2024 2.5 1.13 3.79 0 1.79 25.39
30 9 22.5
11
2023 2.5 3.15 3.79 0 0.15 6.11
35.49 7.51 25
8.99
2022 2.42 0 3.7 0 1.93 20.11
5.99 6.35 15
8.99
2021 0 0 1.3 0 2.07 21.77
5.33 6.08 2.5
5
2020 1.7 8.5 1.32 0 0.07 24.5
18.49 6.08 13.9
 1.10 Technical Analysis
1. Larsen & Toubro (L&T)
 Summary Indicator Analysis:

 Volume: Supports current price action with spikes indicating key interest levels.

 Moving Averages: Trend is stabilizing or preparing for a directional move, with

close proximity of 20 & 50 MA.

 RSI: Bullish but approaching overbought conditions.

 MACD: Indicates upward momentum, confirming bullish sentiment.

2. Adani Ports and Special Economic Zone (APSEZ)
 Summary

 Volume: Decreasing, reflecting reduced participation or consolidation.

 Moving Averages: Bearish trend persists; MAs are acting as resistance.
 RSI: Showing signs of recovery but still in a neutral/bearish zone.
 MACD: Bullish crossover suggests short-term recovery, but overall momentum
remains weak.
3. Ambuja Cements
 Summary
 Volume: Selling pressure dominates; recent low volume implies indecision.
 Moving Averages: Clear bearish trend; strong resistance at the 20 & 50 MA
levels.
 RSI: Bearish but not oversold, suggesting room for further downside or
consolidation.

 MACD: Bearish momentum persists but could weaken if the histogram continues
to grow positively.
4. UltraTech Cement
  Summary
1. Volume (20 & 50 MA):
 Increased trading volume suggests higher market participation.
 Volume is above the moving average, indicating strong buying interest.

2. Moving Averages (20, 50, 200):

 Price is above key moving averages, suggesting an uptrend continuation.
 Short-term MAs are trending upwards, reinforcing bullish momentum.

3. RSI (Relative Strength Index - 57.01):

 RSI above 50 indicates positive momentum but is not yet overbought.
 A further rise above 70 would suggest overbought conditions.

4. MACD (Moving Average Convergence Divergence):

 A bullish crossover is forming, signaling a potential uptrend.
 Positive MACD histogram bars indicate increasing buying pressure.
5. Godrej Properties
 Summary of Indicator Analysis:
 Volume: Increased trading volume signals potential accumulation.
 Moving Averages: The price is below the key MAs, but short-term recovery is visible.
 RSI: Rising towards 50, indicating a possible momentum shift.
 MACD: Bullish crossover forming, suggesting upcoming strength.
6. Indian Oil Corporation (IOC)
 Summary of Indicator Analysis:
 Volume: Increasing, signaling potential accumulation.
 Moving Averages: Price below key MAs, confirming a bearish trend.
 RSI: Near 40, suggesting weak momentum but potential for reversal.
 MACD: Still bearish, but a crossover could trigger an uptrend.
 1.11 Findings
• Fundamental Analysis Findings:
1. Liquidity Ratios:
• L&T: Current Ratio dropped from 1.46 (2021) to 1.27 (2024), indicating reduced liquidity.
• Adani Ports: Liquidity worsened, with Current Ratio declining from 1.59 (2020) to 0.83 (2024).
• Ambuja Cements: Improved liquidity, with Current Ratio rising to 2.32 (2024).

2. Profit Margins:
• L&T: Net Profit Margin decreased from 14.77% (2021) to 7.07% (2024).
• Adani Ports: Recovered to 19.79% (2024) after a loss in 2023.
• Ambuja Cements: Stable margins, though Operating Profit Margin dropped from 20.56% (2020) to 16.64% (2024).

3. Returns:
L&T: ROE fell from 18.77% (2021) to 14.44% (2024).
Adani Ports: ROE dropped from 8.87% (2021) to 5.93% (2024).
Ambuja Cements: ROE steady at 6.31% (2024), down from 9.37% (2021).

4. Earnings Per Share (EPS):

• L&T: EPS declined from ₹80.74 (2021) to ₹66.95 (2024).
• Adani Ports: EPS recovered to ₹8.05 (2024) from ₹-2.22 (2023).
• Ambuja Cements: EPS remained stable at ₹11.74 (2024).

5. Dividends:
• L&T & Ambuja Cements: Reduced dividend payouts in 2024.
• Adani Ports: Stable dividend of ₹2.5 despite fluctuations.
 Technical Analysis Findings
1. Trend Indicators:

• L&T & UltraTech Cement: Steady bullish trends over long periods, indicating strong market optimism.

2. Momentum Indicators:

• RSI: L&T and Ambuja Cements showed oscillations around overbought/oversold levels.
• MACD: Bullish crossovers observed in Adani Ports and UltraTech Cement.

3. Support and Resistance Levels:

• Ambuja Cements: Strong support zones due to stable financial performance.

• Adani Ports: Resistance faced in 2023 due to operational challenges.

4. Volatility Analysis:

• High price volatility in Adani Ports, influenced by policy changes.

5. Candlestick Patterns:

• L&T & Reliance Industries: Doji and Bullish Engulfing patterns, indicating potential trend reversals.
 1.12 Conclusion

 The Indian infrastructure sector plays a pivotal role in economic growth, with vast
potential despite notable challenges. Companies analyzed exhibit varied strengths and
weaknesses shaped by operational, financial, and macroeconomic factors. Key
recommendations are:

• Improving efficiency through cost optimization and sustainable practices.

• Leverage technology to stay competitive and align with global standards.

• Strengthening liquidity management for short-term stability.

• Embracing technology to stay competitive and meet global standards.

• Advocating policy reforms to streamline regulations and attract investments.

 By tackling challenges and seizing opportunities, the sector can drive India’s economic
transformation, emphasizing financial monitoring and policy advocacy for sustained
growth.