Atlas Copco Academic Valuation

InveStment Management

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Atlas Copco – Fundamental and Technical Analysis |

Project Report |

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Submitted to: |

Prof Vipul |

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By: Group No. 10 |

Amod Rahatkar | PGP25121 |

Anshul Agrawal | PGP25125 |

Anurag Singh | PGP25126 |

Gaurav Bajaj | PGP25127 |

Table of Contents

1. Fundamental Analysis 3

1.1 Macroeconomic Analysis 3

1.2 Industry Analysis 3

1.2.1 Mining and Construction Equipment Industry (MCE) 3

1.2.2 Compressors 4

1.3 Valuation Approach 4

1.3.1 Discounted Cash Flow Valuation 4

1.3.2 Relative Valuation 6

2. Technical Analysis 7

2.1 RSI (Relative Strength Indicators) 7

2.2 Stochastic Indicators 10

2.3 Envelope 13

2.4 Moving Average Convergence Divergence 14

2.5 Bollinger Bands 16

3. Conclusion 19

4. Appendix 20

4.1 Sensitivity Analysis for DCF Valuation 20

4.2 Accuracy of various techniques of Technical Analysis 20

4.3 Excel Sheets 20

List of Illustrations

Figure 1: Macroeconomic SWOT Analysis 4

Figure 2: Performance relative to BSE SENSEX 8

Figure 3: RSI-14 versus Stock Price 9

Figure 4: RSI-9 versus Stock Price 10

Figure 5: RSI-14 & RSI-9 short term 10

Figure 6: Slow Stochastic Oscillator 12

Figure 7: Fast Stochastic Oscillator 13

Figure 8: Slow and Fast Stochastic - short term 14

Figure 9: Envelope 15

Figure 10: MACD 16

Figure 11: MACD Short term 17

Figure 12: Bollinger Bands 18

Figure 13: Stock Price and Volumes 19

Figure 14: Primary and Secondary Trend 19

Table 1: Multiples based valuation 6

1. Fundamental Analysis

1.1 Macroeconomic Analysis

A SWOT analysis of the Indian economy is as follows:

Strengths * Rising domestic demand, which is a major driver of economic growth * Booming exports, which are in turn a valuable source of foreign exchange * A vast supply of inexpensive, young and skilled labor force | Opportunities * India’s emerging middle class will continue to drive demand for new goods and services, which in turn would...