Thesis Presentation

Name : Divya Kaur Chowdhry

Project Title: ANALYSIS OF

SMALLCASE SECTOR PORTFOLIO

Roll No. : 921162

Section 1- Sector Analysis

Introduction to Brokerage Industry Critical Success Factors of the

Analysis of Brokerage Industry Based on Industry

Michael's Porter 5 Factor Model Market Share

Competitors PESTEL Analysis

Rankings
Introduction

Purchase of stocks and derivatives on behalf of

clients

Incomplete transactions

Company or any form of organization or even

can be individual stockbrokers

Registration with Securities and Exchange Board

of India

Redirecting funds into investments and business

ventures
Porter's Five Forces Analysis

At an increasing
Power of client More or less unique
stage
relations

High Level of Brokerage fees &

cash volume
Competitors
Critical success factors of the
industry

Technology

People
Stakeholder
Value

Processes
 Market Share
Paytm Money Ltd.
Sharekhan Ltd. 1.3%
2.5% Zerodha
IIFL Securities Limited 20.4%
3.7%
L
HDFC Securities Ltd.
3.7%

Kotak Securities Ltd. Highest Market Share-

4.1%
Zerodha
5paisa Capital Limited
5.7%
Lowest Market Share- FNO
Upstox
17% India Securities Private
ICICI Securities Limited Limited
9.9%

Angel One Limited Groww

11.9% 12.5%
PESTEL Analysis
Regulatory and legislative

P
framework
Heavy regulations are
being imposed by SEBI

Role in job creation and

E
economic expansion
Profitability of the
organizations involved

Demographics, way of life, and

altering way of life
S Social and cultural factors that
exist in a particular country
PESTEL Analysis
Level of automation

T expansion of digital services

existence or non-existence
of a technological barrier to
entry

Digital accounts

E No need of physical visit

to a branch

Different nations’ rules and

L regulations
Rules set forth by the regulatory
authorities.
 0
2,500,000
5,000,000
7,500,000
Ze
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a
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ps
to
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IC ro
IC lO w
IS ne w
Rankings

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Section 2- Company Analysis

Introduction to Kotak Mahindra Group Board Members

Business Mapping Organizational Structure

About Kotak Securities SWOT Analysis

Products and Services Offered by Kotak Financial Analysis

Securities Business Strategy

Introduction to Kotak Mahindra
Group
Established in the year 1985

India’s first non-banking finance

company to convert to a bank

Vast array of financial services

Concentration of financial services in

India

Group’s growth is inclusive

Business Mapping
About Kotak Securities
Full-service stock broking firms

Direct access to the US markets

Wide range of services

Corporate members on the National Stock Exchange

27,00,000 - customer
(NSE) and Bombay Stock Exchange (BSE).
accounts

Kotaksecurities.com is a top-notch online share 153- number of

trading platform Branches

2019 Finance Asia Country Awards’ Best Broker 1332 - Franchisees

honour.
 Services Offered

Research Expertise
Portfolio Management Updated
Services market data

Stock Broking International Reach

Services
Products Offered

Equity Website Trinity account Super Multiple

Derivatives KEAT ProX 2-in-1 account Research Alerts
Mutual Funds Kotak Stock Demat Account Buy Now Sell
Initial Public Transfer (KST) Equity Trading Tomorrow
Offerings Xtralite Account Portfolio Tracker
Tax Free Bonds Fastlane Linked Account Auto Invest
 Board Members

Mr. Naryan SA - Ms. Falguni Nayar -

Chairman and Independent
Director Director

Mr. Jaideep Hansraj - Mr. Noshir Datur- Mr. Krishnan Venkant

Managing Director Independent Director Subramanian- Director
 Organizational Structure

Kotak Human IT
Risk Research
Securities Resource Infrastructure

Marketing Compliance
Products Operations
Strategy

Digital
Business Unit
SWOT Analysis
Strengths Weaknesses

I P O D i stri buti o n R ura l a nd

P ro d ucts a nd se mi -urba n
se rv i ce s co nsume rs
Go o d wi l l P ro mo ti o na l
a cti v i ti e s
SW OT
ANAL YSI S
Opportunities Threats

Gro wth Gro wi ng

Attra cti o n o f co mpe ti ti o n
pe o pl e C o nti nuo us
fo l l o w up
Financial Analysis
Shareholding Structure
Preference 0%

Equity 100%
 Financial Analysis
Holdings of Shareholders

Other Equity Shareholders

1%
Kotak Mahindra Capital Company Limited
25%

Kotak Mahindra Bank Limited

74%
Financial Analysis
Revenue from Operations (2022)- 2,962 Cr
Financial Analysis
Net Profit Margin (2022)- 35%
Financial Analysis
Net Worth (2022)- Rs. 6,385 Cr
Financial Analysis
Debt to Equity Ratio (2022)- 0.8 Current Ratio (2022)- 2.1
Business Strategy

Personalisation E- Wallet

Customer
More Branches
Awareness
Section 3- Internship Overview

Profile

Roles and Responsibilities

Overview of the Project

Profile- Equity Research Analyst

Analyze securities data

Support senior analysts with their investment decision-related research

Technical and sensitivity analysis

Problem – solving techniques, data interpretation, and other tools.

 Roles and Responsibilities

Roles Responsibilities

In- depth research reports Prepare sector portfolios

on the stock market sector
Extracting historical
Used to make crucial prices
investing decisions
Portfolio returns

Ratios of companies

Trends and patterns

Overview of Project

Smallcases
A portfolio-driven Trend-themed Volatility-themed
approach
Professionally
tailored baskets
More flexibility and
choice while
remaining liquid
Without the Beta-themed Industry – themed
interference of fund
manager
Section 4: Project Details

Objective

Scope

Roadmap

Research Methodology
Objective
People are getting attracted towards investing

Many ways through which people can invest

Invest individually without any expertise and

professional help

Help investors to have ready made portfolios

For the company or for customers

 Scope
Scope of Smallcases is enormous

Freedom to investors to independently manage their

portfolios

Equity fund investments come with an expense ratio

Smallcase investments place shares in your demat account

Buy ideas instead of equities based on market capitalization

Redemptions happen more quickly

 Roadmap
Extraction of data
Companies Selection from NSE and BSE
Trend of
Share Prices Price
Relative Relative
Strength
Index
Preparation
of Sector
Portfolios Sector Selection

Portfolio Returns

Optimized Portfolio
 Research Methodology

Direct interaction with the Company

Search engines and websites

Books on hand

Technical analysis
Section 5: Observations and Insights
of the Project
Preparation of Sector Portfolio Optimized Portfolio

Sector Selection Trend of Share Prices

Companies Selection Price Relative

Extraction of data from NSE and Relative Strength Index

BSE Website
Status of the Research
Portfolio Returns
Preparation of Sector Portfolio
Parameters for selecting Sectors and Companies

Market Capitalization Interest Inventory

Net Sales Tax Debt

Net Profit Sundry

Net Profit
Debtors Contingent
Net Profit
Liabilities

Total Assets EPS

Other Income Cash/Bank

Sector Selection
Companies Selection
BANKS SECTOR:
 Companies Selection
IT SECTOR:
Extraction of data from NSE and
BSE Website
Download of historical Stock prices from BSE website
Extraction of data from NSE and
BSE Website
Download of historical indices from NSE website
Portfolio Returns

STEPS

Extraction of historical prices

Sample amount of Rs.90,000
Base year that had been selected
was 2020
The amount that has been
selected is then divided by the
stock price of the year 2020
Optimized Portfolio
STEPS

Stock prices of all the Expected returns

companies for 10 years on Expected risk
a yearly basis Sharpe ratio
Year on year returns Using solver function in order to maximize Sharpe
Averaged out the returns ratio
Excess Returns
Variance- Covariance
matrix
Risk-free return
Annual returns
Equally weighted portfolio
Trend of Share Prices

Performance of a company
A layman often invests in the market
solely on the basis of this
Upward rising with a little bit of ups
and downs
Lot of ups and downs
Downward but is having a little up
Price Relative
STEPS

Gathered the stock prices

of all the Companies
Gathered the market price
of NIFTY Bank or IT/ CNX
Bank or IT index
Stock Price of the Company
divided by CNX Bank or
CNX IT
Created a pattern of price
relative
Relative Strength Index
STEPS

Gathered the stock prices of Average Gain/ Average Loss

all the Companies and market 100-100(Relative Strength on that particular Day+1)
price of NIFTY Bank or IT/ The trend is created
CNX Bank or IT index
Compared the current day’s
closing price with previous
day’s
Understanding whether there
is a gain or loss
Average gain and average loss
Status of the Research

Ongoing research
and still has not
been completed
Section 6: Learnings and Insights

Professional
Time
Behaviour
Management
and/or
Skills
knowledge

Adaptability and Computer/

Flexibility Technical Skills
Section 7: Observations

Communication Gap Response Time

Section 8: Conclusion

In accordance with the companies in the NIFTY

Bank and NIFTY IT index.

Both the sector has been good

Line of action through which the work would be

carried out as well as what does he expects from
an intern

There should be a specific time slot that should

be allotted every second day