Fundamental Analysis - Sector Analysis

FIRST OF ALL AN ORGANIZATION IS FUNCTIONING IN WHICH SECTOR MUST BE NOTED !

WHY STOCKS ARE BOUGHT ?

         

Getting various benefits like Dividend, Bonus stocks, and due to the price hike of stocks the marginal gain. 

                  

If an Organization runs successfully only then a part of gain will be given as dividend. How a company will run as gain ? If administered properly any organization may flourish and gain will be more !But many other features are also present ! What are those ? 

                            

A Term Business cycle may be heard. If day comes, night also comes. Likewise it is common not even for stock market but for any sector ! In some period some business may flourish, some may kneel down ! This happens time to time for all sectors.

BUSINESS PLAN

The business plan, model or concept forms the bedrock upon which all else is built. If the plan, model or concepts stink, there is little hope for the business. For a new business, the questions may be these: Does its business make sense? Is it feasible? Is there a market? Can a profit be made? For an established business, the questions may be: Is the company's direction clearly defined? Is the company a leader in the market? Can the company maintain leadership?

COMPANY ANALYSIS

With a shortlist of companies, an investor might analyze the resources and capabilities within each company to identify those companies that are capable of creating and maintaining a competitive advantage. The analysis could focus on selecting companies with a sensible business plan, solid management and sound financials.

ABOUT THE COMPANY :  
FOR EXAMPLE ; Mahindra cars in India

Mahindra India is among one of the renowned name which is popular for its reliable, tough and best utility vehicle. Mahindra cars in India is known as the utility vehicle making king of the sub continent. Company has been rooted with the collaboration of three people, Mr. KC Mahindra, Mr. JC Mahindra and Mr. MG Mohammed. The trio took the company to heights, in the year 1945 when it was established.

After the Partition of India Mr. MG Mohammed moved to Pakistan and finally company left by the name of Mahindra. First project of Mahindra India was to deal in steel, later they moved their portfolio. Increasing tenure in India bought wealth and success to Mahindra cars. The utility vehicle lineage put Mahindra models not only made a global picture but also projected the tycoon as a key player in India.

It was Mahindra India by the help of whom India was able to join hands in the assembly of the war Icon Willys Jeep. Company got a license to assemble Willys. This was the first time that Mahindra cars established themselves by the name of Jeep makers in the sub continent. After time passed they came into the business of making of light commercial vehicles (LCV’s) and tractors.  

Indian automotive Industry will always be thankful to Mahindra India as to put a major contribution in the auto world of sub continent. Fortune India 500 was the foremost event when the Indian auto maker listed in some of the top companies. They ranked as the 21^st company in the list, might be possible just due to Mahindra car models.  The auto expert bagged more awards by their prominent works as time passed; a USA based reputation firm also listed them best in India. This time company ranked tenth postion in the list of ‘Global 200’. To achieve such a success was big for Mahindra as, this list is known as globe’s best reputation list.

If we discuss about that why Mahindra cars are such an important key player in Indian auto world then we would like to light up on some facts. The best years for Mahindra passed out and company stood firmly for the last 65 years in the business of utility vehicle making commerce. The reliable Mahindra made a debut of SUV Scorpio in past years and did not look back. This vehicle became a successful product in India.

As to make the product successful Mahindra and Mahindra car prices also played an important role. The products are economic and easy going on consumer’s pockets that is why people purchase much of Mahindra vehicles. Apart from Mahindra Scorpio, the Bolero and Thar made the company sit on cloud nine. Mahindra & Mahindra models are best known for its reliable, robust and excellent performance. The cars what company made was user and as well as eco friendly.

Latin America, South Korea, South Africa, Malaysia, Europe and Australia are some of the overseas places where the Indian auto expert made their top class presence. Crossing through national bounds company became a multinational firm and made a great contribution to the global auto world.

France and International Truck and Engine Corporation, USA and Renault SA, are two major tie ups of Mahindra India. If we see about the global subsidiaries than also the tycoon is one step ahead. The company has subsidiaries like Mahindra China Tractor Co. Limited, Mahindra South Africa Tractor Co. Limited, Mahindra Europe Srl. Italy and Mahindra USA Inc.

Presently we see Mahindra holds a total of eight models in its portfolio. Mahindra XUV 500, Scorpio, Quanto, Xylo, e2o, Bolero, Verito and Thar are the models in the subcontinent. Mahindra car prices in India are Rs. 4, 75,210 to 14, 76,736. The minimum price in India is for Thar and the maximum is for XUV 500. All in all we can say that company had a great contribution in Indian automotive industry.