Name:Poornima Gupta

About the Company – BINNY MILLS

Introduction:

Binny mills ltd was incorporated on 20th December 2007 as a public ltd
company .It obtained certificate for commencement of business on the February
2008.The Registered office of the company is at no.4 ,Karpagambal Nagar
,Mylapur Chennai 600004.

Business Activities:

The company is in the process of acquiring the agencies and services business of
Binny ltd by Demerger process . After the demerger is completed ,the company
will engage in the business of agencies and services which will include business
,activities and operations pertaining to trading of textiles and engineering products
,agencies cold storage plants at cochin and warehousing.

INTERPRETATION
BETA= Beta tell us about the change of risk in % due to the
0.690926617 change in the market. In this we can say that when the
market goes down then the risk of the stock will also go
down.
DOWNSIDE BETA= As the downside beta is less than 0 it means that the
-11.88909722 stock will increase as the market will go down. this show
an inverse relationship.
LEVERED BETA= Levered beta includes the market risk as is similar to beta
0.690926617 .

SECTOR BETA= As ths is negative the sector will fluctuate negatively

1.007944972 means for 1%change in market sector will change by
0.0061times.
SYSTEMATIC =0.00130 This thethe risk which is overall risk of the market and
includes the risks which are uncontrollable.
UNSYSTEMATIC This means that after removing the market risk the stock
BETA=0.9986 will fluctuate 0.998 times but this is all the controllable
risk.
SHARP RATIO =0.0443

TREYNOR RATIO=-0.049

EXPECTED RATE OF
RETURN=
0.62 %

WACC= Since the WACC is about 1 % than return so it creates

0.8358236 about value for its investors.

ROE= As the ROE is very high here hence the company’s

1.24% capital has been taken from right sources.

ROA= Return on assets is showing that company’s asset are

3.45% giving fair returns and have been utilized properly.

INTEREST RATIO= As the interest coverage ratio is very good and the
14.35135135 sources from where they have taken money are being
utilized at the right places giving good returns
Current 2.8084 As the current ratio is 2.8 times which indicates that the
Ratio Company has been maintaining sufficient cash to meet its
short term obligations.
Quick Ratio 0.759 As the quick ratio is little less than 1 it indicates that the
company does not relies too much on inventory or other
assets to pay its short-termliabilities.
Debt to 4.75225 As debt equity ratio is less means that a company has
equity ratio been aggressive in financing its growth with debt.