CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
SHARE PRICE MOVEMENT
Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own …show more content…
While the dividend history of a given stock plays a general role in its popularity, the declaration and payment of dividends also has a specific and predictable effect on market prices. It stands to reason that the possibility of creating recurring investment income encourages investors to purchase and retain shares of stock. While this motivation may seem to be purely economical, the underlying beliefs about the company 's profitability are what impact stock prices the most. To understand how dividends positively affect investor thinking, it helps to first understand the mechanics of the stock market and the basic of how dividends …show more content…
Table 4.2.
Table showing dividend/share, Earning/share, Dividend pay-out ratio, share price.
Year Dividend per Share (Cr) Earnings per Share(Cr) Dividend pay-out ratio (%) Share price (Rs)
March2011 1.10 6.35 17.31 51.90
March 2012 1.30 7.72 16.84 41.80
March 2013 1.20 5.19 23.13 75.95
March 2014 1.40 8.28 16.91 268.30
March 2015 1.90 10.55 18.01 285
Source: Compiled & Calculated
Interpretation
The above table shows that the dividend per share of the company is almost consistent throughout the study period. Earnings per share is increasing over the years except in 2012-13 period. The share price of the company increased gradually in 2013-14 period.
The dividend per share and earning per share of TVS Motors Company Ltd for the period of 2010-11 to 2014-15 is represented in graphical form below. Figure 4.4
Figure showing changes in DPS and EPS
The dividend Pay- out ratio of TVS Motors Company Ltd for the period of 2010-11 to 2014-15 is represented in graphical form below.
Figure 4.5
Figure showing changes in Dividend pay-out
DATA ANALYSIS AND INTERPRETATION
SHARE PRICE MOVEMENT
Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own …show more content…
While the dividend history of a given stock plays a general role in its popularity, the declaration and payment of dividends also has a specific and predictable effect on market prices. It stands to reason that the possibility of creating recurring investment income encourages investors to purchase and retain shares of stock. While this motivation may seem to be purely economical, the underlying beliefs about the company 's profitability are what impact stock prices the most. To understand how dividends positively affect investor thinking, it helps to first understand the mechanics of the stock market and the basic of how dividends …show more content…
Table 4.2.
Table showing dividend/share, Earning/share, Dividend pay-out ratio, share price.
Year Dividend per Share (Cr) Earnings per Share(Cr) Dividend pay-out ratio (%) Share price (Rs)
March2011 1.10 6.35 17.31 51.90
March 2012 1.30 7.72 16.84 41.80
March 2013 1.20 5.19 23.13 75.95
March 2014 1.40 8.28 16.91 268.30
March 2015 1.90 10.55 18.01 285
Source: Compiled & Calculated
Interpretation
The above table shows that the dividend per share of the company is almost consistent throughout the study period. Earnings per share is increasing over the years except in 2012-13 period. The share price of the company increased gradually in 2013-14 period.
The dividend per share and earning per share of TVS Motors Company Ltd for the period of 2010-11 to 2014-15 is represented in graphical form below. Figure 4.4
Figure showing changes in DPS and EPS
The dividend Pay- out ratio of TVS Motors Company Ltd for the period of 2010-11 to 2014-15 is represented in graphical form below.
Figure 4.5
Figure showing changes in Dividend pay-out