OIL & NATURAL GAS CORPORATION LTD

Industry

: Oil Drilling and Exploration

Incorporation : 23/06/1993 Business Group : Public Sector LTP (Rs.) Face Value P/E Ratio : 263.85 (-0.25) [NSE] : 5.00 : 11.93

Market Capital : 225,736.61 Cr Key Officials : Sudhir Vasudeva N K Sinha Production Chairman and Managing director Company Secretary & Compliance Officer

: 77% of Indias Crude Oil production 81% of Indias Natural Gas production

Strength

: It is considered to be the leader in oil production industry It is an international industry so it has sufficient resources and capital to invest

Weakness Competitors

: ONGC is facing problem in producing oil from aging reservoirs. : ONGC faces no big competition as such.

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KEY RATIOS

Year
EPS Operating profit margin ratio Gross profit margin ratio Net profit margin ratio Debt- Equity ratio current ratio Quick ratio interest coverage ratio

Mar'11 22.12 61.20 50.87 26.43 0.18 1.36 1.20 4.13

Mar'10 78.39 62.57 53.87 26.35 0.18 1.39 1.22 3.64

Mar'09 75.40 50.39 43.58 23.50 0.20 1.45 1.27 4.34

Mar'08 78.09 49.51 42.99 25.93 0.17 1.56 1.39 6.79

Mar'07 73.14 49.47 43.69 25.79 0.24 1.41 1.28 8.56

LIQUIDITY RATIOS CURRENT RATIO This ratio measures the ability of the firm to pay off its current liability in the short period of time, i.e in its current life cycle.

current ratio
1.6 1.55 1.5 1.45 1.4 1.35 1.3 1.25 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 1.36 1.39 1.45 1.41 current ratio 1.56

The graph shows that the ratio of the firm is declining which means that the short term solvency of the firm is not desirable. It is also not satisfying the standard rate of 2:1. This shows that the company might face problem in paying off its current liabilities with that of its current assests. QUICK RATIO It is a stringent measure of liquidity as it does not takes into consideration inventories in current assets while calculation. This again shows the short term solvency of the firm

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Quick ratio
1.45 1.4 1.35 1.3 1.25 1.2 1.15 1.1 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 1.2 1.22 1.27 1.28 1.39

Quick ratio

This follows the same trend as that of current assets and its liquidity position is not desirable. It is falling with the life of the firm.

PROFITABILITY RATIOS OPERATING PROFIT MARGIN RATIO This ratio shows the margin left after meeting manufacturing expenses, selling, general and administration expenses and depreciation charges. It shows the operating efficiency of the firm

Operating profit margin ratio

70 60 50 40 30 20 10 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 Operating profit margin ratio 61.2 62.57 50.39 49.51 49.47

This shows that the operating efficiency of the firm is improving compared to the previous years. It has been considerably increased since last 2 years. GROSS PROFIT MARGIN RATIO It shows the margin left after the manufacturing costs. It measures the efficiency of production as well as pricing of the firm.

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Gross profit margin ratio

60 50 40 30 20 10 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 50.87 53.87 43.58 42.99 43.69 Gross profit margin ratio

This shows that the production efficiency of the firm is improving and it has been risen considerably since last 2 years. NET PROFIT MARGIN RATIO This ratio shows the earnings left for shareholders after all the expenses. It measures the overall efficiency of the firm.

Net profit margin ratio

27 26.5 26 25.5 25 24.5 24 23.5 23 22.5 22 26.43 26.35 25.93 25.79

Net profit margin ratio 23.5

Mar'11 Mar'10 Mar'09 Mar'08 Mar'07

This shows that the overall efficiency of the firm is improving. There was a steep fall in the year 2009 but post that it is rising. So the profits left at the end for shareholders is increasing with the life of the firm. LEVERAGE RATIOS INTEREST COVERAGE RATIO This ratio is used by lenders to assess the firms debt capacity. A high ratio shows that it can meet the interest burden even if PBIT is low and vice versa.

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interest coverage ratio

9 8 7 6 5 4 3 2 1 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 4.13 4.34 3.64 interest coverage ratio 6.79 8.56

There has been a falling trend in the interest coverage ratio in last 5 years. This shows that the burden bearing capacity of the firm is reducing. Hence there might be an increase in burden of the firm. DEBT-EQUITY RATIO It shows the relative contribution of creditors and owners. The lower the ratio the higher the degree of protection is enjoyed by the creditors and vice versa.

Debt- Equity ratio

0.3 0.25 0.2 0.18 0.15 0.1 0.05 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 0.18 0.2 0.17 Debt- Equity ratio 0.24

The graph shows that in last 5 years it has a fluctuating trend. Initially it was high in the year 2007 and post that it fell and then rose again and then it has fallen and remain stagnant. EARNINGS PER SHARE This shows the earnings of the company on every share issued. The high the value of the company the better will be the EPS of the firm.

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EPS
90 80 70 60 50 40 30 20 10 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 22.12 EPS 78.39 75.4 78.09 73.14

There has been a sudden decline in the earning per share in the year 2011. This shows that the value of the firm is decreasing which is not a good sign for the company.

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COAL INDIA

Industry

: Mining/Minerals

Business Group : Public Sector Face Value P/E Ratio : 10.00 : 44.56

Market Capital : 210,461.26 Cr Key Officials : Zohra Chatterji H Sarkar M Viswanathan Mr.D K Ghosh Strengths Chairman and Managing director Chief General Manager(F) / Company Secretary Co. Secretary & Compl. Officer Chief General Manager (Finance)

: Government offers wide range of concessions to investors in the mining industry. It is the largest coal producing company in India. Its equipments are 100% depreciable so that helps in tax savings

Weakness

: Indian mining companies do not have access to India capital markets. Indian mining industry suffers from an outdated unattractive approach to mining education that is partly to blame for insufficient human resource.

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KEY RATIOS

Year
EPS Operating profit margin ratio Gross profit margin ratio Net profit margin ratio Debt- Equity ratio current ratio Quick ratio interest coverage ratio

Mar'11 7.48 -19.2 -20.41 85.35 0.07 3.09 3.09 22.36

Mar'10 5.98 -10.08 -12.08 79.59 0.08 3.22 3.22 11.01

Mar'09 5.22 -47.81 -49.75 71.76 0.11 3.03 3.02 8.67

Mar'08 388.48 -52.15 -54.54 71.24 0.11 2.75 2.75 6.76

Mar'07 446.66 -21.86 -24.87 79.94 0.13 2.66 2.66 9.25

LIQUIDITY RATIOS CURRENT RATIO This ratio measures the ability of the firm to pay off its current liability in the short period of time, i.e in its current life cycle.

current ratio
3.5 3 2.5 2 1.5 1 0.5 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 current ratio 3.09 3.22 3.03 2.75 2.66

We can see through the graph that there has been a rising trend in the current ratio in last 5 years. In the previous year it shows a dip in the ratio which shows that though it satisfies the standard 2:1 ratio but there has been a fall as compared to the previous year. QUICK RATIO It is a stringent measure of liquidity as it does not takes into consideration inventories in current assets while calculation. This again shows the short term solvency of the firm

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Quick ratio
3.5 3 2.5 2 1.5 1 0.5 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 Quick ratio 3.09 3.22 3.02 2.75 2.66

This is same as that of current ratio which shows that the company does not maintain any inventories. And its current assets are sufficient to pay off its current liabilities.

PROFITABILITY RATIOS OPERATING PROFIT MARGIN RATIO This ratio shows the margin left after meeting manufacturing expenses, selling, general and administration expenses and depreciation charges. It shows the operating efficiency of the firm

Operating profit margin ratio

0 Mar'11 -10 -20 -30 -40 -50 -60 -47.81 -52.15 Mar'10 Mar'09 -10.08 Mar'08 Mar'07

-19.2

-21.86 Operating profit margin ratio

This shows that the company is going through losses since last 5 years but there has been noticed a decline in the losses since last 2 years which shows that its operating efficiency is improving compared to previous years. GROSS PROFIT MARGIN RATIO It shows the margin left after the manufacturing costs. It measures the efficiency of production as well as pricing of the firm.

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Gross profit margin ratio

0 Mar'11 -10 -20 -30 -40 -50 -60 -49.75 -54.54 -20.41 -24.87 Gross profit margin ratio Mar'10 Mar'09 Mar'08 Mar'07 -12.08

It follows the same trend as operating profit margin ratio and here also there has been decrease in losses in the last two years which shows the production efficiency of the firm is improving. NET PROFIT MARGIN RATIO This ratio shows the earnings left for shareholders after all the expenses. It measures the overall efficiency of the firm.

Net profit margin ratio

90 85 80 75 70 65 60 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 71.76 71.24 85.35 79.59 79.94 Net profit margin ratio

We can see here that is follows a different trend than that of the other two profitability ratios. And there is being noticed a rising trend in the ratio since March 2008. This shows that the overall efficiency of the firm is improving with the life of the firm. LEVERAGE RATIOS INTEREST COVERAGE RATIO This ratio is used by lenders to assess the firms debt capacity. A high ratio shows that it can meet the interest burden even if PBIT is low and vice versa.

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interest coverage ratio

25 22.36 20 15 10 5 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 11.01 8.67 6.76 9.25 interest coverage ratio

There has been a rise trend in this ratio in the last 5 years. This shows that the capacity of the firm to pay interest is improving with the life of the firm. DEBT-EQUITY RATIO It shows the relative contribution of creditors and owners. The lower the ratio the higher the degree of protection is enjoyed by the creditors and vice versa.

Debt- Equity ratio

0.14 0.13 0.12 0.11 0.1 0.08 0.07 0.06 0.04 0.02 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 0.08 Debt- Equity ratio 0.11

This shows that there is a fall in the ratio in last 5 years. This indicates that the debt of the firm is reducing with the life of the firm. Hence it is beneficial for creditors of the firm as they enjoy high degree of protection with less debt ratio of the firm. EARNINGS PER SHARE This shows the earnings of the company on every share issued. The high the value of the company the better will be the EPS of the firm.

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EPS
500 450 400 350 300 250 200 150 100 50 0 446.66 388.48

EPS

7.48 Mar'11

5.98 Mar'10

5.22 Mar'09

Mar'08

Mar'07

This shows that the earnings of the firm is reducing as compared to previous years. But still it has improved last year as compared to its previous year. So the per share earnings of the firm has fallen as compared to those of previous years.

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INFOSYS

Industry Face Value P/E Ratio

: Computers - Software : 5.00 : 24.85

Market Capital : 160,095.32 Cr Key Officials : K V Kamath S D Shibulal K Parvatheesam Mr.Srinath Batni Mr.S Gopalakrishnan Mr.V Balakrishnan Mr.Ashok Vemuri Mr.Chandra Shekar Kakal Mr.B G Srinivas Mr.Subhash B Dhar Market Share : 18% in 2011 Strengths : Infosys has strong brand recognition It has a comprehensive portfolio of solutions Infosys has a strong base in India. Weakness Competitors : It has some dependence on financial services market : Cognizant, Wipro, TCS. Chairman / Chair Person Managing Director & CEO Company Secretary & Compliance Officer Head - Delivery Excellence Head - Executive Council Chief Financial Officer Senior Vice President Senior Vice President Senior Vice President Senior Vice President

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KEY RATIOS YEAR

Current Ratio Operating Margin G. PMargin Net Profit Margin EPS Interest Coverage Ratio Total Debt/Equity Quick Ratio

Mar'11 Mar'10 Mar'09 Mar08 Mar'07 5.11 4.28 4.71 3.3 4.96 33.14 30.23 24.31 112.22 9523 0 5.02 34.82 31 26.36 101.13 4116.5 0 4.2 34.09 30.66 27.52 101.58 3891 0 4.67 31.72 28.23 27.37 78.15 5642 0 3.28 32.13 28.57 28.05 66.23 4559 0 4.91

LIQUIDITY RATIOS CURRENT RATIO This ratio measures the ability of the firm to pay off its current liability in the short period of time, i.e in its current life cycle.

Current Ratio
6 5 4 3 2 1 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 5.11 4.28 3.3 Current Ratio 4.71 4.96

As we can see through the graph that there has been a fluctuating trend in last 5 years in this ratio but it has been the highest in 2011 among the last 5 years. So this shows that the short term solvency of Infosys has improved. And it can pay off its current liabilities with that of its current assets. QUICK RATIO It is a stringent measure of liquidity as it does not takes into consideration inventories in current assets while calculation. This again shows the short term solvency of the firm

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Quick Ratio
6 5 4 3 2 1 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 5.02 4.2 3.28 Quick Ratio 4.67 4.91

Here it follows the same trend as current ratio. It has been the highest in the year 2011 so this shows that the short term solvency of the firm is improving.

PROFITABILITY RATIOS OPERATING PROFIT MARGIN RATIO This ratio shows the margin left after meeting manufacturing expenses, selling, general and administration expenses and depreciation charges. It shows the operating efficiency of the firm

Operating Margin
35.5 35 34.5 34 33.5 33 32.5 32 31.5 31 30.5 30 34.82 34.09 33.14 Operating Margin 32.13 31.72

Mar'11

Mar'10

Mar'09

Mar'08

Mar'07

We can see in the graph that with the passage of time the operating efficiency of the firm has been improving but there has been a drastic fall in the same last year as compared to March 2010. GROSS PROFIT MARGIN RATIO It shows the margin left after the manufacturing costs. It measures the efficiency of production as well as pricing of the firm.

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G. PMargin
31.5 31 30.5 30 29.5 29 28.5 28 27.5 27 26.5 31 30.66 30.23

28.57 28.23

G. PMargin

Mar'11

Mar'10

Mar'09

Mar'08

Mar'07

Here again we can see that there was an increasing trend in the GP margin since 2007 but there is a sudden fall in the same in last year as compared to the year 2010. NET PROFIT MARGIN RATIO This ratio shows the earnings left for shareholders after all the expenses. It measures the overall efficiency of the firm.

Net Profit Margin

29 28 27.52 27 26 25 24 23 22 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 24.31 26.36 Net Profit Margin 27.37 28.05

This shows a falling trend which means that the net profit of the firm is reducing the life of the firm. So the overall efficiency of the firm is also falling at the whole. LEVERAGE RATIOS INTEREST COVERAGE RATIO This ratio is used by lenders to assess the firms debt capacity. A high ratio shows that it can meet the interest burden even if PBIT is low and vice versa.

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Interest Coverage Ratio

10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 9523

5642 4116.5 3891 4559

Interest Coverage Ratio

Mar'11

Mar'10

Mar'09

Mar'08

Mar'07

Here we can see that even though the profits are low but we can note that there is the highest interest coverage ratio in the year 2011. So the company is capable to pay its interest burden even with reduced profits. DEBT-EQUITY RATIO It shows the relative contribution of creditors and owners. The lower the ratio the higher the degree of protection is enjoyed by the creditors and vice versa.

Total Debt/Equity
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

Total Debt/Equity

0 Mar'11

0 Mar'10

0 Mar'09

0 Mar'08

0 Mar'07

It shows that the company has no debt and as a result of it the creditors of the company enjoys high degree of protection since last 5 years. EARNINGS PER SHARE This shows the earnings of the company on every share issued. The high the value of the company the better will be the EPS of the firm.

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EPS
120 112.22 100 80 60 40 20 0 Mar'11 Mar'10 Mar'09 Mar'08 Mar'07 101.13 101.58 78.15 66.23 EPS

We can see that there has been a rising trend in the earnings per share of the company in last 5 years. This shows that the value of the company is also rising with the life of the company.

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