Motilal Oswal Financial Services Ltd.

(BSE, NIFTY, NASDAQ, Dow Jones, Hang Seng) is a

diversified financial services firm offering a range of financial products and services such as
Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management,
Private Equity, Investment Banking, Commodity Broking and Principal Strategies

Background[edit]
The company was formed in 1987 by Motilal Oswal and Raamdeo Agrawal after they acquired
membership on The BSE.[2] Motilal Oswal was elected director and joined the Governing Board
of the Bombay Stock Exchange in 1998.
Motilal Oswal Securities is a Depository Participant of NSDL[3] and a Depository Participant of
Central Depository Services Limited (CDSIL)[4] in 2000. The company started offering
Derivatives products and advisory services on both BSE as well as NSE in 2001[5]
In 2006, the company entered Private Equity and Investment Banking business.[5] In the same
year, Motilal Oswal group acquired South Indian brokerage firm Peninsular Capital Markets.[6]
The company tied up with State Bank of India and Punjab National Bank[7] in 2006 and 2007 to
offer online trading to its customers. 2008 saw the company create one of India's largest Equity[8]
Dealing & Advisory rooms, spread over 26,000 sq ft (2,400 m2) in Malad, Mumbai.
In January 2010, Motilal Oswal Financial Services (through its subsidiary Motilal Oswal
Securities Ltd.) received the final certificate of registration approval from Securities and
Exchange Board of India (SEBI) to set up a mutual fund business in the country.

Awards and Recognitions[edit]

Motilal Oswal Securities bagged the Best Performing Equity Broker (National) Award at
CNBC TV18 Financial Advisor Awards 2013 held in Mumbai.[9]

Motilal Oswal Financial Services Ltd's Analyst Mr. Jinesh Gandhi won the Best Market
Analyst Award for the categories Equity-Auto at India`s Best Market Analyst Awards
2013 organized by Zee Business.[10]

Motilal Oswal Securities was declared "Best Equity Broker" at Bloomberg UTV
Financial Leadership Awards in April 2012.[11]

Motilal Oswal Securities was awarded with Best Performing National Financial Advisor
Equity Broker Award in 2012, second time in succession.[12][13]

Motilal Oswal Financial Services was honoured with an award for Best Use in PR in
Financial Services Category at India PR & Corporate Communications Awards 2012.[14]

Motilal Oswal Securities received Best Equity Broking House Award by BSE IPF-D&B
Equity Broking Awards 2011 [15]

Motilal Oswal Mutual Fund's MOSt Shares M50 ETF was adjudged Most Innovative
Fund of the Year by CNBC TV18 CRISIL Mutual Fund Award 2011 [16]

CNBC TV18 awarded Motilal Oswal the Best Performing Equity Broker Award in 2010
at CNBC TV18 Financial Advisor Awards 2010 [13]

Best Capital Markets & Related NBFC Award for FY11 by CNBC TV18 India Best
Banks & Financial Institutions Awards 2011[17]

Motilal Oswal IB team won the Asia Pacific Cross Border Deal of the year award in 2010
and the CEO Ashutosh Maheshvari got India M&A Investment Banker of the Year award
[18]

Motilal Oswal Securities Ltd. rated as No.1 Broker in ET Now Starmine Analyst
Awards 2009[10].[19]

MOSL awarded 'The Best Franchisor in Financial Services' by Franchisee.[20] World

Magazine 2008 for the second consecutive year.

Customer Services
One of the largest body of complaints about financial services organisations on the web is found
to relate to Motilal Oswal's companies
Services

Wealth Management,
Retail Broking & Distribution,
Commodity Broking,
Asset Management,

Institutional Broking,
Private Equity,
Investment Banking Services & Principal
Strategies

Motilal Oswal Securities Ltd,

Motilal Oswal Investment Services,
Subsidiaries

Motilal Oswal Investment Advisors Pvt Ltd,

Motilal Oswal Private Equity Advisors Pvt
Ltd,
Motilal Oswal Asset Management Co. Ltd

Stock Market
Capital occupies a position so dominant to the economic theory of production and
distribution that it is natural to assume that it should occupy at least an equally important place in
the theory and practice of economic growth. The subject whether approached historically or
analytically or from the standpoint of policy, it is the process of capital accumulation that
occupies the front of the stage. It is usually implied that economic growth and capital
accumulation with a high positive and significant correlation and additions to the stock of capital
can provoke and facilitate faster rate of growth even under the circumstances which can be
described as shortage of capital.
Capital market means the market for all the financial instruments, short term and long term as
also commercial, industrial and government paper. The capital market deals with capital. The
capital market is a market where borrowing and lending of long term funds takes place. Capital
markets deal in both debt and equity. The governments both central and state raise money in the
capital market, through the issue of government securities. Capital markets refer to all the
institutes and mechanisms of raising medium and long-term funds, through various instruments
available like shares, debentures, bonds etc.
Corporate both in the private sector as well as in the public sector raise thousands of crores of
rupees in these markets. The government, through Reserve Bank of India, as well as financial
institutions also raises a lot of money from these markets. Example of well-developed markets is
The Global depository and American depository.
The two important operations carried out are
1) Raising of the new capital

2) Trading in securities issued by the company.

:
The important constituents of capital market are:
1. The stock exchanges
2. Banks
3. The investment trusts and companies
4. Specialized financial institutions or development banks.
5. Mutual funds
6. Post office saving banks
7. Non banking financial institutions
8. International financial investors and institutions.

The supply in this market comes from saving from different sectors of the economy. These come
from the following sources:
1. Individuals
2. Corporate
3. Governments
4. Foreign countries
5. Banks
6. Provident funds
7. Financial institutions.

Design of the study

Title of the study

Equity Valuation of Top Three IT Companies

Objectives of the study
a) To study the performance of three IT Companies namely Wipro, Infosys, TCS.

b) To evaluate the financial performance of these companies through fundamental

analysis by taking in to consideration data of last five years
c). To determine the Equity prices through Equity Valuation Models.
d) To evaluate the prices of these companies.
e) To design strategy for profitable investment in equities which yields maximum returns.

Need for Equity valuation of IT Companies.

Indias information technology services companies, the proud mascot of a
modern, resurgent India, and darling of investing public, have started loosing their appeal. Their
shares have lost their shine and have grossly underperformed inn a buoyant market, which is
scaling newer peaks almost every month. Is it the time to write them off? Or do they have the
talent, resources and infrastructure to overcome the daunting problems that afflict them now and
hit the high-growth path once again. So it is very necessary to know what the investors should do
at this time
METHODOLOGY OF DATA COLLECTION
SOURCES OF DATA
PRIMARY DATA
Discussion with the company official
Discussion regarding the IT sector and IT Companies performance and
how equity shares of these companies are performing presently.
SECONDARY DATA
Internet sources

 Annual Reports of the companies

Business magazines
CONCEPTUAL DESIGN
Sample unit: Equity shares of the selected companies
Sample size: 5 years financial data of these companies
Sample method: direct.