Final Project 18bba86

A
PROJECT REPORT
ON
“TO STUDY IMPACT OF EARNINGS PER SHARE & DIVIDEND

PER SHARE ON SHARE PRICE MOVEMENTS NSE.”
SUBMITTED TO:
VIDYABHARTI TRUST COLLEGE OF BBA & BCA
UMRAKH
SUBMITTED BY:
TRIVEDI JATINBHAI J.
18BBA86
GUIDED BY:
Miss. Kajal Patel
BBA PROGRAMME
(YEAR 2018-2021)
VIDYABHARTI TRUST COLLEGE OF BBA,UMRAKH
Vidyabharti Campus, At & Po.Umrakh, Ta. Bardoli, Dist: Surat, Pin: 394345,Gujarat-India
Ph.: +91 2622 220581, 224262. • Fax: +91 2622 225458
Website: vtcbb.edu.in • E-mail: bbabca@vtcbb.edu.in
CERTIFICATE
This is to certify that the Research Based Project report entitled “A STUDY ON
IMPACT OF EARNINGS PER SHARE & DIVIDEND PER SHARE ON
SHARE PRICE MOVEMENTS NSE.”Has-been carried out by TRIVEDI
JATINBHAI JAGDISHBHAI (18BBA86) at MOHAK CONSULTANCY,
NAVSARI.As a partial fulfillment of the requirement for the degree of Bachelor of
Business Administration (B.B.A.) during academic year 2020-2021.
Miss. Kajal Patel Mr. Viral Chauhan
FACULTY GUIDE I/C PRINCIPAL

DECLARATION
I am Trivedi Jatinbhai Jagdishbhai from VIDYABHARTI TRUST

COLLEGE OF BBA, UMRAKH; hereby declare that the project report has
been undertaken as a part of 6th semester of Bachelor of Business
Administration (BBA) syllabus affiliated by Veer Narmad South Gujarat
University, Surat. I declare that this report has not been submitted to any
other university or institute for any purpose.
Trivedi Jatinbhai Jagdishbhai

18BBA86
TYBBA
(Finance)
ACKNOWLEDGEMENT
This project work is written in accordance with the Bachelor of Business
Administration course prescribed by Veer Narmad South Gujarat University
for two-month project work.
I wish to express my sincere thanks to Mr. VIRAL CHAUHAN,

I/CPRINCIPAL of VIDYABHARTITRUST COLLEGE OF BBA, UMRAKH, for
making available all facilities in fulfilling the requirement for the research
work.
I wish to express my deep sense gratitude to my guide Miss. Kajal Patel

whose constant help and support at all stages of this project has enabled me
to complete it.
I am sincerely thankful to all faculty member of BBA department who

directly or indirectly supported me during the project. I am thankful to tell
non- teaching staff of VIDYABHARTI TRUST COLLEGE OF BBA for their
kind support.
Last but not least, I am also grateful to my parents, colleagues whose

continuous support has boosted my moral towards working on this report.
Trivedi Jatinbhai Jagdishbhai
18BBA86
TYBBA
(Finance)
RESEARCH PROPOSAL
1. Company Name:
Mohak Consultancy
2. Research Topic:
“A Study on Impact of Earnings Per Share and Dividend on Share Price

Movements NSE.”
3. Objective of the Research:
 Primary Objective:
 To analyze the impact of EPS, DPS on stock performance

 Secondary Objective:
 To determine the relationship between EPS and stock performance
 To determine the relationship between DPS and stock performance

4. Research Design:
1. Exploratory Research Design
2. Descriptive Research Design
3. Causal Research Design
For the Project, Research Will Use Descriptive Research design Because
They provides simple summaries about the sample and the measures.
VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

5. Data Collection Method:
There are two type of data collection method:
1. Primary Data Collection:

2. Secondary Data Collection:
Primary Data Collection:
Primary Data means the data which is collected fresh and for first time,
and that hope in its original way/character. Such data collected in its origin
way. Under the primary method collection several methods are available. For
this project study Questionnaires method is used.
Secondary Data Collection:
When an investigator Use the data, such data, have already collected is
called secondary data. This data is primary data for the agency researcher that
collects it become secondary data can be obtained from following source;
journal, reports, books, websites.
The researcher will use secondary source of data has been collected from
NSE & MONEY CONTROL. It comprises two different industries -top five
companies of each industry based on their market cap (01/01/2021). EPS,
DPS and PRICE MOVEMENT of share for year 2018-19, 2019 - 20 have been
collected from NSE.
6. Sampling:
Sample Size:
Researcher will take two different industries -top five companies of each
industry based on their market cap (01/01/2021).

Sampling Techniques:
Sampling technique is classified in two types.
1. Probability sampling
2. Non-probability sampling
In this study, Research will use Non-Probability Convenience Sampling.

7. Analyze Tools:
One sample T-TEST has been used to analyses the data.
8. Selection period of Script Data:
Here, the selection period of data use is 2.2 year (01-04-2018 to 31-05-
2020) daily data.

EXECUTIVE SUMMARY
Researcher has done a study to measure the impact of EPS & Dividend on
Share price of NSE. This Research has been done at MOHAK CONSULTANCY
EPS & DPS has been taken to measure their impact on share prices.
Researcher has used ONE SAMPLE T-TEST to measure the impact of EPS &
DPS on share prices. Based on highest market capital of private sector banks
and IT services & consultancy top 5 companies from each sector, before ten
days and after ten days of announcement of EPS & DPS, share prices has been
taken to measure the impact of EPS & DPS on respective firms share prices.
Researcher has concluded that both the factor EPS & DPS have a significant
impact on private sector banks and IT services & consultancy share prices.
EPS impacted 70% companies positively their share prices have been increased
and rest of the companies impacted negatively. DPS impacted 70% companies
positively their share prices have been increased and rest of the companies
impacted negatively.
Researcher found out that after announcement of EPS impacted share price of
INFOSYS in most positive way whereas KOTAK MAHINDRA has been impacted
most negatively. DPS, among all the companies INDUSIND BANK share gain
most whereas ICICI BANK loses its share prices.
Research has recommended that investor can invest in, HDFC BANK, ICICI
BANK, AXIS BANK, TCS, INFOSYS, HCL TECH, WIPRO because they are
fulfilling the expectation of earning per share of investor. Research has
recommended that investor can invest in HDFC BANK, KOTAK MAHINDRA,
INDUSIND BANK, TCS, INFOSYS, HCL TECH, TECH MAHINDRA because they
are fulfilling the expectation of dividend of investor.

TABLE OF CONTENT
SR. NO TOPIC PAGE NO.
1 INTRODUCTION 1-13
2 LETERATURE REVIW 14-21
3 RESEARCH METHODOLOGY 22-25
4 DATA ANALYSIS & INTERPRETATION 26-55
5 FINDINGS 56-59
6 CONCLUSION 60
7 RECOMMENDATION 61
8 BIBLOGRAPHY 62-65
9 APPENDIX 66-70

LIST OF TABLES
Table 1 List of Companies Name..................................................................................................24

Table 2 Share Price Before & After 10 Days of EPS Announcement of HDFC BANK..............28
Table 3 One-Sample Statistics.......................................................................................................28
Table 4 One-Sample Test..............................................................................................................28
Table 5 Share Price Before & After 10 Days of EPS Announcement of ICICI BANK................30
Table 6 One-Sample Statistics.......................................................................................................30
Table 7 One-Sample Test.............................................................................................................30
Table 8 Share Price Before & After 10 Days of EPS Announcement of KOTAK MAHINDRA
32 Table 9 One-Sample Statistics..................................................................................................32
Table 10 One-Sample Test............................................................................................................32
Table 11 Share Price Before & After 10 Days of EPS Announcement of AXIS BANK..............34
Table 12 One-Sample Statistics.....................................................................................................34
Table 14 Share Price Before & After 10 Days of EPS Announcement of INDUSIND BANK....36
Table 17 Share Price Before & After 10 Days of EPS Announcement of TCS............................38
Table 20 Share Price Before & After 10 Days of EPS Announcement of INFOSYS...................40
Table 23 Share Price Before & After 10 Days of EPS Announcement of HCL TECH................42
Table 26 Share Price Before & After 10 Days of EPS Announcement of WIPRO......................44
Table 29 Share Price Before & After 10 Days of EPS Announcement of TECH MAHINDRA .
46 Table 30 One-Sample Statistics................................................................................................46
Table 32 Share Price Before & After 10 Days of Dividend Announcement of HDFC BANK....48
Table 35 Share Price Before & After 10 Days of Dividend Announcement of ICICI BANK......50
Table 37 One-Sample Test 51

Table 38 Share Price Before & After 10 Days of Dividend Announcement of KOTAK
MAHINDRA.................................................................................................................................52
Table 41 Share Price Before & After 10 Days of Dividend Announcement of AXIS BANK......54
Table 44 Share Price Before & After 10 Days of Dividend Announcement of INDUSIND BANK
....................................................................................................................................................... 56
Table 47 Share Price Before & After 10 Days of Dividend Announcement of TCS....................58
Table 50 Share Price Before & After 10 Days of Dividend Announcement of INFOSYS...........60
Table 53 Share Price Before & After 10 Days of Dividend Announcement of HCL TECH........62
Table 56 Share Price Before & After 10 Days of Dividend Announcement of WIPRO..............64
Table 59 Share Price Before & After 10 Days of Dividend Announcement of TECH
MAHINDRA.................................................................................................................................66
Table 62 Hypothesis testing of sample..........................................................................................68

LIST OF ABBREVIATION
EPS = Earnings Per Share
DPS = Dividend Per Share
NSE = National Stock Exchange
Df = Degrees Of Freedom
SEBI = Securities Exchange Board of India

INTRODUCTION
ABOT THE COMPANY
Overview
Started in 2016, Mohak Consultancy is officially recognized as South Gujarat’s

most prominent stock broker. It was founded as a partnership firm by a group
of passionate entrepreneurs Hemangani Desai, Dhaval Desai and Viral Naik
who had worked as a Team of stock trader.
The house officially began its operations on 07 th March 2016. As its name,
originated from the Sanskrit word Mohak means Seductive, describes the
fascinating magnetic pull to its client, as an attractive quality that tempts you
in Stock Market. When someone draws your attention aside from whatever
you’re doing, that is a seductive firm. Mohak Consultancy had the vision to
break possible barriers that various traders, investors and various other
aspiring money – makers face in the country’s economic scenario.
Mohak Consultancy is South Gujarat’s up growing stock broker in terms of

total active client’s base and is active since 2016. Mohak Consultancy is
amongst one of the newest members of the Indian equity and derivative trade
economy who have pioneered in the art of interweaving technology with
conventional financial services thereby giving a superb boost to the
conventional equity and derivative based trading industry in India.
Apart from bringing a competitive pricing model that made it the first of its
kind, Mohak Consultancy is also acknowledged as a pioneer in technology for
trading in South Gujarat. PrabhudasLilladhar is one of the Mohak’s main
brokers among others.
VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH Page 1

The firm quickly escalated their reputation to the ninth cloud and become a fan
favorite in less than a half decades time due to its unconventional approach to
serve the registered retail clients (traders) across the major equity and
derivative based Indian trading industry with easy to use and home developed
trading platforms.
The company typically keeps on boasting about their disruptive pricing and in
– house developed technologically sound solutions to India centric stock
trading.
As a matter of fact, they are recognized as the emerging stock broker in Gujarat
in regards with their active clients and also in terms of the firm’s total
contribution in terms of trading volume on the top most Indian stock
exchanges.
Quality Policy, Vision and Mission
Quality Policy
Dedication:
It is now dedicated to provide more up – to – date and timely knowledge as well

as hi – tech tools and platforms as well as constant customer support at
competitive prices.
Efficiency:
They are efficient and committed to total quality by putting their best at their
resources and services at optimum cost and strive continually to improve their
selves, their team and their services to get total customer satisfaction.

Valuation:
They will achieve their objectives through creation of a strong, responsive, and
innovative organization by a total quality commitment and by emphasizing on
total customer satisfaction, wealth & Value creation of stakeholders through
profitable growth and providing best working environment to their employees.
Vision:
As a broking house, Mohak Consultancy has consistently upheld its vision to

assist retail traders and investors. The vision of the firms is to be the most
respected financial services company in India.
Mission:
The mission of the firm is to emerge as one of South Gujarat’s leading Stock
broker group. Ever since its inception, their strategy was been to align our
capabilities and market insights to the country’s rapidly changing business
environment. Mohak Consultancy growth trajectory has only served to
reinforce to focus on their domain of brokering.
Services provided by Mohak Consultancy:
 Stock Broking
 Mutual Fund ( Online & Offline )
 IPO ( Initial Public Offering )
 NFO ( New Fund Offer )
 Bond and Debenture

ABOUT THE TOPIC
Earnings per share or EPS are measure which indicates the profitability of a
company. Earnings per share (EPS) measures the portion of a company’s profit
allocated to each outstanding share of common stock. It is calculated by
dividing the company’s net income with its total number of outstanding shares.
Earnings per share (EPS) are a company's net profit divided by the number of
common shares it has outstanding.EPS indicates how much money a company
makes for each share of its stock, and is a widely used metric to estimate
company value. It is a tool that market participants use frequently to gauge the
profitability of a company before buying its shares.
Dividend per share is the sum of declared dividends issued by a company for
every ordinary share outstanding. The figure is calculated by dividing the total
dividends paid out by a business, including interim dividends, over a period of
time by the number of outstanding ordinary shares issued. A company's DPS is
often derived using the dividend paid in the most recent quarter, which is also
used to calculate the dividend yield.
DPS is an important metric to investors because the amount a firm pays out in
dividends directly translates to income for the shareholder, and the DPS is one
of the most straightforward figures an investor can use to calculate his or her
dividend payments from owning shares of a stock over time. Meanwhile,
a growing DPS over time can also be a sign that a company's management
believes that its earnings growth can be sustained.
Earnings Per Share:
Earnings per share (EPS) are calculated as a company's profit divided by the
outstanding shares of its common stock. The resulting number serves as an
indicator of a company's profitability.

It is common for a company to report EPS that is adjusted for extraordinary
items and potential share dilution. The higher a company's EPS, the more
profitable it is considered to be.
 Earnings per share (EPS) are a company's net profit divided by the
number of common shares it has outstanding.
 EPS indicates how much money a company makes for each share of its
stock, and is a widely used metric to estimate corporate value.
 A higher EPS indicates greater value because investors will pay more for
a company's shares if they think the company has higher profits relative
to its share price.
Formula and Calculation for EPS:

The earnings per share value are calculated as the net income (also known as
profits or earnings) divided by the available shares. A more refined calculation
adjusts the numerator and denominator for shares that could be created
through options, convertible debt, or warrants. The numerator of the equation
is also more relevant if it is adjusted for continuing operations.
To calculate a company's EPS, the balance sheet and income statement are
used to find the period-end number of common shares, dividends paid on
preferred stock (if any), and the net income or earnings.

It is more accurate to use a weighted average number of common shares over
the reporting term because the number of shares can change over time.
When EPS increases, the stock's price might or might not rise. Often, EPS is
compared to consensus EPS forecasts. Investment research websites consider
many analysts' forecasts to reach consensus EPS. In general, if a firm's actual
EPS does not rise to the level predicted by consensus, the share price falls.
Conversely, if actual EPS beats the consensus, the price rises. However,
sometimes even when forecasts are achieved, the price can slide if the overall
market declines.
The price of a share will not automatically rise or fall based on EPS gains.
Buybacks occur when a company repurchases its own shares. EPS then rises
because net income is being divided by fewer numbers of shares. But market
reaction to buybacks is often mixed. Investors might worry that management
is manipulating EPS to hit compensation incentives rather than investing the
cash in productive assets that could drive long-term growth in share price.
What A Negative EPS Means? Sometimes they lose money, in which case their
earnings are negative. When earnings are negative, then EPS will be negative,
too. A negative EPS tells you exactly how much money the company lost
per share of outstanding stock, which is why you'll also see it called "net
loss per share."
Dividend Per Share (DPS):
The term dividends per share (DPS) refer to the total dividend a company pays
out over a 12-month period, divided by the total number of outstanding shares.
A company uses this calculation to share profits with its shareholders. DPS
can indicate how profitable a company is over a fiscal period.

It can tell an investor about the company's past financial health and its current
financial stability.
Dividend Per Share Formula:
Dividend Per Share = Total Dividends Paid / Share Outstanding
Or
Dividend Per Share = Earnings Per Share * Dividend Payout Ratio
For example, suppose company ABC had a DPS of 60 per cents last year, but
this year, it doesn't pay a dividend to its shareholders. This can signal to
investors the company may be in poor financial health and cannot withstand
the current market conditions. A decrease in DPS can thus cause investors to
sell their stake in the company, driving the market value of ABC down further.
However, a decrease in dividend per share does not always signal a company is
not financially stable. For example, suppose ABC did not pay out a dividend to
its shareholders because it is using its profit to reinvest into the company to
create a new product. This reinvestment into the business can potentially
produce higher dividends in the long term.
Suppose company YXZ has been paying a steady dividend of 90 cents per
share. The next year, company YXZ raises its dividend to $1.10 per share. This
signals the company is financially stable and performing well in its current
market condition. An increase in DPS also signals the management team is
confident in the company's future profits.

Share Price:
A share price is the price of a single share of a number of saleable stocks of a

company, derivative or other financial asset. In layman's terms, the stock
price is the highest amount someone is willing to pay for the stock, or the
lowest amount that it can be bought for.
Behavior of Share Price:
In economics and financial theory, analysts use random walk techniques to

model behavior of asset prices, in particular share prices on stock
markets, currency exchange rates and commodity prices. This practice has its
basis in the presumption that investors act rationally and without biases, and
that at any moment they estimate the value of an asset based on future
expectations. Under these conditions, all existing information affects the price,
which changes only when new information comes out. By definition, new
information appears randomly and influences the asset price randomly.
Empirical studies have demonstrated that prices do not completely follow

random walks. Low serial correlations (around 0.05) exist in the short term,
and slightly stronger correlations over the longer term. Their sign and the
strength depend on a variety of factors.
Researchers have found that some of the biggest price deviations from random
walks result from seasonal and temporal patterns. In particular, returns in
January significantly exceed those in other months (January effect) and on
Monday’s stock prices go down more than on any other day. Observers have
noted these effects in many different markets for more than half a century, but
without succeeding in giving a completely satisfactory explanation for their
persistence.

Technical analysis uses most of the anomalies to extract information on future
price movements from historical data. But some economists, for
example Eugene Fama, argue that most of these patterns occur accidentally,
rather than as a result of irrational or inefficient behavior of investors: the huge
amount of data available to researchers for analysis allegedly causes the
fluctuations.
Another school of thought, behavioral finance, attributes non-randomness to

investors' cognitive and emotional biases. This can be contrasted
with fundamental analysis.
When viewed over long periods, the share price is related to expectations of
future earnings and dividends of the firm. Over short periods, especially for
younger or smaller firms, the relationship between share price and dividends
can be quite unmatched.
Factor Affecting Share Prices:
1. Marketplace:
The marketplace determines share prices. While seller supply and buyer
demand meet in the market, there is no perfect equation that lets investors
know exactly how share prices will behave. However, there a number of
factors that can move stocks up and down.

2. Demand & Supply:
Demand and supply in the market affect the prices of shares. When demand
for shares exceeds supply, which means the buyers are more than sellers,
the prices increase. When demand is less than supply, meaning that buyers
are less than sellers, the prices decrease.
3. Interest Rate:
In case of lower interest rates, demand for funds is higher and the
subsequent demand for shares rises. On the other hand, high interest
lowers the demand for funds and the demand for shares is lower.
4. Investors:
Market players have an impact on share prices. With more bulls than bears,
the prices increase. With more bears than bulls, share prices decline.
5. Dividends:
Dividends indicate the movement of share prices. When companies make
dividend announcements, the share prices of such companies are likely to
increase. It is important to note that if the dividend rate announced is lower
than the investors’ expectations, share prices decline while if they are up to
more than expected, share prices increase.
6. Management:
Management profile has a significant effect on company success and stock
prices. If management consists of experienced professionals with a proven
track record, share prices are likely to be higher. If the management that
takes over a company lacks integrity, share prices tend to fall.
7. Political Climate:
Political factors that range from relations with other nations to government
policies can affect share prices.

8. Economy:
Fluctuations in the economy feature what are commonly referred to as
booms and depressions? Under favorable conditions share prices are at
their peak and their lowest point is experienced during depressions. Share
prices gradually rise during recovery and fall during recessions.
Stock Market:
A stock market, equity market, or share market is the aggregation of buyers

and sellers of stocks (also called shares), which represent ownership claims on
businesses; these may include securities listed on a public stock exchange, as
well as stock that is only traded privately, such as shares of private companies
which are sold to investors through equity crowd funding platforms.
Investment in the stock market is most often done
via stockbrokerage and electronic trading platforms. Investment is usually
made with an investment strategy in mind.
Stocks can be categorized by the country where the company is domiciled. For
example, Nestlé and Novartis are domiciled in Switzerland and traded on
the Six Swiss Exchange, so they may be considered as part of the Swiss stock
market, although the stocks may also be traded on exchanges in other
countries.
National Stock Exchange of India:
National Stock Exchange of India Limited (NSE) is the leading stock

exchange of India, located in Mumbai, Maharashtra. NSE was established in
1992 as the first dematerialized electronic exchange in the country.NSE was
the first exchange in the country to provide a modern, fully automated screen-
based electronic trading system which offered easy trading facilities to

investors spread across the length and breadth of the country. Vikram
Limaye is Managing Director & Chief Executive Officer of NSE.
National Stock Exchange has a total market capitalization of more

than US$2.27 trillion, making it the world's 11th-largest stock exchange as of
April 2018. NSE's flagship index, the NIFTY 50, a 50 stock index is used
extensively by investors in India and around the world as a barometer of the
Indian capital market. The NIFTY 50 index was launched in 1996 by NSE.
One Sample T – Test:
The one sample t-test is a statistical procedure used to determine whether a

sample of observations could have been generated by a process with a specific
mean. Suppose you are interested in determining whether an assembly line
produces laptop computers that weigh five pounds. To test this hypothesis, you
could collect a sample of laptop computers from the assembly line, measure
their weights, and compare the sample with a value of five using a one-
sample t-test.
Hypothesis:
There are two kinds of hypotheses for a one sample t-test, the null hypothesis
and the alternative hypothesis. The alternative hypothesis assumes that some
difference exists between the true mean (μ) and the comparison value (m0),
whereas the null hypothesis assumes that no difference exists. The purpose of
the one sample t-test is to determine if the null hypothesis should be rejected,
given the sample data.
The alternative hypothesis can assume one of three forms depending on the
question being asked. If the goal is to measure any difference, regardless of
direction, a two-tailed hypothesis is used.

If the direction of the difference between the sample mean and the comparison
value matters, either an upper-tailed or lower-tailed hypothesis is used.
The null hypothesis remains the same for each type of one sample t-test. The
hypotheses are formally defined below:
The null hypothesis (H0) assumes that the difference between the true mean
() and the comparison value (m0) is equal to zero.
The two-tailed alternative hypothesis (H1) assumes that the difference

between the true mean () and the comparison value (m0) is not equal to
zero.
The upper-tailed alternative hypothesis (H1) assumes that the true mean ()
of the sample is greater than the comparison value (m0).
The lower-tailed alternative hypothesis (H1) assumes that the true mean ()
of the sample is less than the comparison value (m0).
The mathematical representations of the null and alternative hypotheses are

defined below:
(H0:  = m0)
(H1:  ≠ m0) (Two-tailed)
(H1: > m0) (upper-tailed)
(H1: < m0) (lower-tailed)

LITERATURE REVIEW
LR – 1
Badruzamana, J. (2020) has been conducted research on THE IMPACT OF

EARNING PER SHARE AND RETURN ON EQUITY ON STOCK PRICE. The aim
of research was to determine the effect of Earning per Share and Return on
Equity on Stock Prices. Total sample of size 57 companies werefrom the 2018
Nikkei 225 Index on the Japan Stock Exchange. Data has been analyzed by
using Statistical Analysis, Coefficient (R 2), and Hypothesis Examination. It has
been found that EPS and ROE affect the stock price, and the influence in both
the partial both influence but ROE negatively affects the stock, meaning that if
ROE increases, it will have an impact on declining stock prices.
LR - 2
Aiyabei, J. C., Tobias, O., & Macharia, I. (2019) has been conducted research
on Influence of Dividend per Share on Idiosyncratic Volatility of Stock Returns
among Listed Firms in Kenya. The objective of research was to determine the
influence of DPS on idiosyncratic volatility of stock returns among listed firms
in Kenya. Total sample of size 39 companies were obtained from specific listed
company’s websites and NSE handbook. The panel data obtained was analyzed
using descriptive statistics, correlation analysis, and panel regression analysis.
It has been found that DPS has a positive and significant effect on Idiosyncratic
Volatility of listed firms in the NSE. DPS therefore affects the Idiosyncratic
Volatility of listed firms in the NSE.

LR – 3
Vutale, A. V., & Chen,(2018) has been conducted research on The Effects of
Dividend Policy on Market Share Price of the Listed Companies at the Nairobi
Securities Exchange (NSE) in Kenya. The aims of research were to examine the
relationship between dividend policy and market share price of the listed
companies at the Nairobi Securities Exchange. To establish the relationship
between selected control variables and market share price of the listed
companies at the Nairobi Securities Exchange. Total sample of size 66
companies quoted at the Nairobi Securities Exchange (NSE). Data has been
analyzed by using. Regression analysis method it has been found that
regression model showed dividend per share (DPS) has a positive significant
relationship with market share price suggesting share price is affected
positively by a higher dividend per share. Regression model showed dividend
per share (DPS) has a positive significant relationship with market share price
suggesting share price is affected positively by a higher dividend per share.
LR – 4
Bratamanggala, R. (2018) has been conducted research on Factors affecting

earning per share: the case of Indonesia. The objective of research wasto
examine if financial factors such as Return on Assets, Price to Book Value and
Debt Equity Ratio have any influence on the Earning per Share. Total sample of
size 11 companies were selected from Indonesian Stock Exchange. Data has
been analyzed by using Multicollinearity Test, Heteroscedasticity Test,
Normality test, Chow Test, Haussmann Test, Lagrange Multiplier Test,
Estimation of Linear Model (Cross-section Random Effect model). It has been
found that there is a positive influence of ROA, PBV and DER to EPR
simultaneously. There is also an influence of each one of the independent
variables on EPS on a separate way.

LR – 5
Jain, N., & Bajaj, K. (2017) has been conducted research on Impact of Earnings
per Share on Market Price of Share with Special Reference to Selected
Companies Listed on NSE. The objective of research was to identify and
analyzes the impact of Earnings Per share on Market price of selected
Companies of NSE (NIFTY 50). To find out whether Earnings per share and
Market per share are associated and related. Total sample of size 5 were
selected from the companies listed on NSE India (NIFTY50). Data has been
analyzed by using coefficient of correlation and Analysis of Variance. It has
found that for the companies undertaken for study are: Infosys, State Bank of
India, Dr Reddy, Bharti Airtel and Maruti Suzuki. All the companies are listed
on NSE and exhibited a positive relationship between EPS and MPS except
Bharti Airtel, which accepted the null hypothesis i.e. the EPS, does not impact
MPS.
LR – 6
Kumar, P. (2017) has been conducted research on Impact of earning per share
and price earnings ratio on market price of share: a study on auto sector in
India. the aims of research was to examine the impact of earning per share
and price earnings ratio on market price of share, therefore in this study
market price of share is dependent variable total sample of size 8 were selected
by using Non-probability sampling technique . Data has been analyzed by
using multiple regression analysis. It has been found that earning per share
has found to be a very strong forecaster of market price of share of select
companies, price earnings ratio impact significantly on the prediction of market
price of share.

LR – 7
Balakrishnan, K. P. (2016) has been conducted research on a study on impact

of earnings per share, dividend per share and price earnings ratio on behavior
of share market price movement (Pharmacy Sector) with special reference to
NSE. The objective of research was study the impact of the Earnings per Share,
Dividend Per Share, Price Earnings Ratio of the selected industries. To
measure the strength of association of independent variable (Dividend Pre
Share, Earnings Per Share, Profit Earning Ratio). Total sample of size 5
companies were selected from the NSE India. Data has been analyzed by using
Regression, Correlation, Multiple regressions. It has been found that Earnings
per Share of Pharmacy Sector are having high correlation with share price
movements of Dr. Reddy, Ranbaxy, Sterling, and Torrent. Next to Earnings Per
s hare, Price Earnings Ratio is having high positive correlation with Dr. Reddy,
Sterling, and Torrent. The Dividend per Share is also having impact on three
companies Dr Reddy, Sterling, Torrent. Even though they are positively
correlated their impact is slighter in other companies.
LR – 8
Amyulianthy, R., & Ritonga, E. K. (2016) have been conducted research on The
Effect of Economic Value Added and Earning per Share to Stocks Return (Panel
Data Approachment). The aim of research was to examine the effect of
Economic Value Added (EVA) and Earning per Share (EPS) on stocks return.
Total sample of size 21 companies were selected by using purposive sampling
technique. Data has been analyzed by using multiple regressions with panel
data. It has been found that there is a positive significant relationship EVA and
stock returns. This proves the first hypothesis is accepted. That there is
significant effect between EVA to stock returns for the company. There is a
positive significant relationship EPS and stock returns. This proves the second
hypothesis of this study is accepted. That there is significant effect between
EPS to stock returns for the company.

LR – 9
Maharshi, N., & Malik, S. (2015) has been conducted research on The Impact
Of The Dividend Policy On The Market Price Of The Shares And Growth Of
Joint Stock Companies Covered In Sensex. The objective of research were To
find the impact of dividend announcement on shareholders’ wealth, To
empirically examine the determinants of dividend smoothing by firms and find
out its linkage with information content of dividends. Total sample of size 30
companies listed in the BSE. Data has been found that some variables have
their impact on the price volatility. In present study price volatility and
dividend yield have strong positive correlation but price volatility is highly
negatively correlated with growth in assets. Growth in assets has impact on the
price volatility for this time period.
LR – 10
Talamati, M. R., & Pangemanan, S. S. (2015) have been conducted research on

the effect of earnings per share (EPS) & return on equity (roe) on stock price of
banking company listed in Indonesia stock exchange (IDX) 2010-2014.the aims
of research was Earnings per Share and Return on Equity on Stock Price
Simultaneously, Earnings per Share on Stock Price Partially, Return on Equity
on Stock Price Partially. Total sample of size 5 banking companies were
selected by using purposive sampling method. Data has been analyzed by
using Multicollinearity, Heteroscedasticity, Normality, Autocorrelation and
Multiple Regression Method. It has been found that Earnings per Share and
Return on Equity have a simultaneous effect on Stock Price, Earnings per
Share variable significantly affect the stock price and Return on Equity does
not have partial effect on stock price.

LR – 11
Garba, A. (2014) has been conducted research on Impact of Dividend-Per-

Share on Common Stock Returns: A Case Study of Some Selected
Manufacturing Firms Listed on the Nigeria Stock Exchange. The aims of
research was to discover the relationship between dividend-per-share and
average stock returns of some selected manufacturing firms listed on the NSE,
to measure the degree to which dividend-per share affects the stock returns of
the selected manufacturing firms listed on the NSE. Total sample of size 106
were selected by using NSE Fact-book (2004). Data has been analyzed by using
regression model. It has been found that a direct relationship between dividend-
per-share and common stock returns of the sampled manufacturing firms listed
on the Nigerian Stock Exchange.
LR – 12
Khan, T. R., Islam, M., Choudhury, T. T., & Adnan, A. M. (2014) has been
conducted research on how earning per share (EPS) affects on share price and
firm value. The aim of research was to know how EPS affect on share price and
firm value. Total sample of size 22 banks were selected randomly. Data has
been analyzed by using different perspectives like the help of excel to find the
graphs and other important issues. It has been found that the result bring an
opposite result. Although the EPS is increasing, the share price is not
increasing that much. So that the hypothesis we fixed it is also not working.
After that we found some reasons that why the share price is not increasing on
the trend of EPS or can say despite of EPS rising.

LR – 13
Ordu, M. M., Enekwe, C. I., & Anyanwaokoro, M. (2014) has been conducted
research on Effect of dividend payment on the market price of shares: A study
of quoted firms in Nigeria. The objective of research was to ascertain whether
dividend payment has any significant influence on the movement of the market
prices of shares. To ascertain the effect of dividend yield on the market prices
of shares of quoted firms. To determine the relationship between dividend
payout ratio and the market prices of shares of quoted firms. Total sample of
size 17 were selected by using Fact-books of the Nigerian Stock Exchange. Data
has been analyzed by using Parsons Product Moment Correlation and Simple
Linear Regression (SLR) technique. It has been found that y first provides both
empirical and statistical evidence on the relationship between dividend
payment and firms‟ collective share prices. The result shows that there is a
positive relationship between dividend payment and market share prices.
Secondly, the study provides evidence of the aggregate effect of dividend
payment on share prices. The result confirms that the impact of dividend
payout on share prices is insignificant which is in line with the irrelevance
theory of Modigliani and Miller (1961). Thirdly, the result confirms that there
are some other exogenous and endogenous variables other than dividend
payout that are responsible for the movement of share prices on the NSE.
LR – 14
Menaje, P. M. (2012) has been conducted research on Impact of selected

financial variables on share price of publicly listed firms in the Philippines. The
objective of research was to determine whether earnings per share (EPS) and
return on assets (ROA) have significant influence on share price of publicly
listed firms in the Philippines. Total sample of size 50 publicly listed firms
taken from the OSIRIS electronic database. Data has been analyzed by using
Multiple regression. It has been found that EPS has a strong positive impact on
share price notwithstanding the fact that we did not use time series data.

LR – 15
Ilaboya, O. J., & Aggreh, M. (2013) has been conducted research on Dividend
policy and share price volatility. The objective of research were ascertain the
relationship between dividend yield and share price volatility; determine the
effect of dividend payout on the volatility of share price; and examine the
relationship between firm’s debt and share price volatility. Total sample of size
twenty-six (26) firms were selected by using convenient random sampling
technique. Data has been analyzed by using regression analysis was conducted
using the pooled OLS and Panel EGLS. We also conducted various tests (i.e.
Multicollinearity, Heteroskedasticity, Autocorrelation and Model specification
tests). It has been found that mixed findings between the measures of dividend
policy (dividend yield and payout ratio) and their impact on share price
volatility. While dividend yield appeared positive and significant, payout ratio
appeared negative and insignificant. Of the control variables included in the
model.

RESEARCH METHODOLOGY
1. Problem Statement:
There are several factors which affect Share price. Researcher has to
analyze EPS, DPS effect on share price.
2. Objective of the Research:

 Primary Objective :
 To analyze the impact of EPS, DPS on stock performance.
 Secondary Objective :
 To determine the relationship between EPS and stock
performance.
 To determine the relationship between DPS and stock
performance.
3. Research Design:
1. Exploratory Research Design
2. Descriptive Research Design
3. Causal Research Design
Descriptive Research Design has been used for this research

because Descriptive research designs help provide answers to the
questions of who, what, when, where, and how associated with a
particular research problem, This research is Descriptive in nature which
is relevant to an inquisitive study as it required detail analysis of EPS,
DPS WITH MARKET PRICE.

4. Data Collection Method:
There are two type of data collection method:
1. Primary Data Collection:

2. Secondary Data Collection:
1. Primary Data:
Primary Data means the data which is collected fresh and for first
time, and that hope in its original way/character.
2. Secondary Data:
Secondary data refers to data that is collected by someone other

than the user.
The research has use secondary source of data has been collected
from NSE & MONEY CONTROL. It comprises two different industries -top
five companies of each industry based on their market cap
(01/01/2021). EPS, DPS and PRICE MOVEMENT of share for year 2018-
19, 2019-20 and 2020-21 have been collected from NSE.
5. Sampling:
Sample size:
Researcher has take two different industries -top five companies of

each industry based on their market cap (01/01/2021).
10 companies listed in NSE which they published EPS & DPS.

Private Sector Bank IT Services and Consultancy
HDFC BANK TCS
ICICI BANK INFOSYS
KOTAK MAHINDRA HCL TECH
AXIS BANK WIPRO
INDUSIND BANK TECH MAHINDRA
Table 1 List of Companies Name
Sampling Techniques:
Sampling technique is classified in two types:
1. Probability sampling
2. Non-probability sampling
In this study, Researcher has use Non-Probability Convenience

Sampling Technique.
Analysis tools:
One sample T-TEST has been used to analyses the data.
The one sample t-test is a statistical procedure used to determine

whether a sample of observations could have been generated by a
process with a specific mean. Suppose you are interested in determining
whether an assembly line produces laptop computers that weigh five
pounds. To test this hypothesis, you could collect a sample of laptop
computers from the assembly line, measure their weights, and compare
the sample with a value of five using a one-sample t-test

Hypothesis:
Hypothesis 1:
H0: Earnings per share have no significant impact on price of

shares.
H1: Earnings per share have significant impact on price of shares.
Hypothesis 2:
H0: Dividend per share has no significant impact on price of

shares.
H1: Dividend per share has significant impact on price of shares.

DATA ANALYSIS & INTERPRETATON
ANALYSIS OF EARNING PER SHARE ON SHARE PRICE:
Share Price Before & After 10 Days of EPS Announcement of HDFC BANK
HDFC BANK
-10 975.1 0 861.9
-9 876.9 1 829.65
-8 895.55 2 813.85
-7 882.85 3 896.1
-6 771.55 4 888.9
-5 767.7 5 925.05
-4 856.75 6 895.35
-3 901.1 7 863.3
-2 904.45 8 879.75
-1 831.65 9 910.3
0 861.9 10 944.85
Table 2 Share Price Before & After 10 Days of EPS Announcement of HDFC
BANK
One-Sample Statistics
N Mean Std. Deviation Std. Error
Mean
BEFORE AVERAGE 11 8.6595E 59.79559 18.02905
2
AFTER AVERAGE 11 8.8264E 38.94639 11.74278
2

Table 3 One-Sample Statistics

One-Sample Test
Test Value = 0
95% Confidence Interval of the Difference
T Df Sig. (2- Mean Lower Upper
tailed) Difference
BEFORE AVERAGE 48.031 10 .000 865.95455 825.7833 906.1258
AFTER AVERAGE 75.164 10 .000 882.63636 856.4718 908.8009
Table 4 One-Sample Test
Interpretation:
From above Table 4 indicates that null hypothesis has been rejected because
significant value of EPS is 0.000 which is less than 0.05, So It Is say that
Earning per share has significant impact on price of share.
Share Price Before & After 10 Days of EPS Announcement of ICICI BANK
ICICI BANK
-10 367.25 0 323.75
-9 355.05 1 311.15
-8 338.55 2 286.65
-7 345.7 3 326.1
-6 284 4 318.95
-5 296.5 5 342.7
-4 316.9 6 330.65
-3 330.25 7 327.35
-2 339.85 8 342
-1 313.4 9 375.55
0 323.75 10 361.3
Table 5 Share Price Before & After 10 Days of EPS Announcement of ICICI
BANK

N Mean Std. Deviation Std. Error Mean
BEFORE AVERAGE 11 3.2829E 24.74691 7.46147
2
AFTER AVERAGE 11 3.3147E 23.98841 7.23278
2
One-Sample Test
Test Value = 0
t Df Sig. (2-tailed) Mean Lower Upper
Difference
BEFORE AVERAGE 43.998 10 .000 328.29091 311.6657 344.9161
AFTER AVERAGE 45.829 10 .000 331.46818 315.3526 347.5838
Interpretation:

Share Price Before & After 10 Days of EPS Announcement of KOTAK MAHINDRA
KOTAK MAHINDRA
-10 1322.7 0 1296.05
-9 1171.95 1 1181.65
-8 1210.85 2 1140.85
-7 1262.35 3 1198.05
-6 1098.25 4 1187.65
-5 1152.9 5 1272.9
-4 1290.15 6 1250.9
-3 1372.95 7 1173.75
-2 1399.1 8 1130.85
-1 1293.7 9 1186.25
0 1296.05 10 1177.75
Table 8 Share Price Before & After 10 Days of EPS Announcement of KOTAK
MAHINDRA
BEFORE AVERAGE 11
1.2610E 93.36955 28.15198
3
AFTER AVERAGE 11 1.1997E 52.22689 15.74700
3

One-Sample Test
Test Value = 0
T Df Sig. (2-tailed) Mean Lower Upper
Difference
BEFORE AVERAGE 44.792 10 .000 1260.99545 1198.2689 1323.7220
AFTER AVERAGE 76.186 10 .000 1199.69545 1164.6090 1234.7820
Interpretation:
Share Price Before & After 10 Days of EPS Announcement of AXIS BANK
AXIS BANK
-10 488.35 0 379
-9 473.45 1 358.65
-8 428.25 2 325.45
-7 428.15 3 388.85
-6 308.65 4 391.35
-5 303.15 5 420.15
-4 326.8 6 418.95
-3 341.4 7 417.3
-2 359.75 8 422.55
-1 368.15 9 478.8
0 379 10 455.95
Table 11 Share Price Before & After 10 Days of EPS Announcement of AXIS
BANK

BEFORE AVERAGE 11
3.8228E 63.97677 19.28972
2
AFTER AVERAGE 11 4.0518E 43.04076 12.97728
2
One-Sample Test
Test Value = 0
Difference
BEFORE AVERAGE 19.818 10 .000 382.28182 339.3016 425.2620
AFTER AVERAGE 31.222 10 .000 405.18182 376.2666 434.0970
Interpretation:

Share Price Before & After 10 Days of EPS Announcement of INDUSIND BANK
INDUSIND BANK
-10 604.15 0 351.3
-9 460.8 1 342.25
-8 444.05 2 313.2
-7 440.35 3 383.85
-6 336.45 4 399.15
-5 312.35 5 395.4
-4 301.3 6 410.4
-3 435.9 7 424.1
-2 411.1 8 435.4
-1 413.4 9 474.45
0 351.3 10 456.7
Table 14 Share Price Before & After 10 Days of EPS Announcement of

INDUSIND BANK
BEFORE AVERAGE 11
4.1010E 85.58350 25.80440
2
AFTER AVERAGE 11 3.9875E 49.19980 14.83430
2

One-Sample Test
Test Value = 0
t Df Sig. (2- Mean Difference Lower Upper
tailed)
BEFORE AVERAGE 15.893 10 .000 410.10455 352.6088 467.6003
AFTER AVERAGE 26.880 10 .000 398.74545 365.6926 431.7983
Interpretation:
Share Price Before & After 10 Days of EPS Announcement of TCS
TCS
-10 1658 0 1826.1
-9 1654.4 1 1708.75
-8 1636.35 2 1654.2
-7 1797.45 3 1775.2
-6 1669.7 4 1705.45
-5 1703.15 5 1766.15
-4 1750.3 6 1759.25
-3 1790.95 7 1735.15
-2 1824.5 8 1716.05
-1 1778.5 9 1806.2
0 1826.1 10 1818.65
Table 17 Share Price Before & After 10 Days of EPS Announcement of TCS

BEFORE AVERAGE 11
1.7354E 72.73248 21.92967
3
AFTER AVERAGE 11 1.7519E 53.70313 16.19210
3
One-Sample Test
Test Value = 0
Difference
BEFORE AVERAGE 79.135 10 .000 1735.40000 1686.5377 1784.2623
AFTER AVERAGE 108.196 10 .000 1751.92273 1715.8445 1788.0010
Interpretation:

Share Price Before & After 10 Days of EPS Announcement of INFOSYS
INFOSYS
-10 554.95 0 641.5
-9 534.3 1 602.8
-8 545.55 2 585.7
-7 585.2 3 639
-6 526.45 4 631.6
-5 589.8 5 636.25
-4 606.2 6 637.4
-3 643 7 639.05
-2 652.7 8 623.85
-1 626.7 9 628.75
0 641.5 10 653.3
Table 20 Share Price Before & After 10 Days of EPS Announcement of INFOSYS
BEFORE AVERAGE 11
5.9149E 46.20178 13.93036
2
AFTER AVERAGE 11 6.2902E 19.14559 5.77261
2

One-Sample Test
Test Value = 0
t Df Sig. (2- Mean Lower Upper
tailed) Difference
BEFORE AVERAGE 42.460 10 .000 591.48636 560.4476 622.5251
AFTER AVERAGE 108.966 10 .000 629.01818 616.1560 641.8804
Interpretation:
Share Price Before & After 10 Days of EPS Announcement of HCL TECH
HCL TECH
-10 450.65 0 436.4
-9 434.25 1 413.55
-8 413.45 2 405.8
-7 444.9 3 451.15
-6 417.15 4 463.1
-5 442.05 5 469.05
-4 457.6 6 458.25
-3 447.7 7 478.75
-2 430.65 8 459.75
-1 419 9 455.25
0 436.4 10 470
Table 23 Share Price Before & After 10 Days of EPS Announcement of HCL
TECH
BEFORE AVERAGE 11
4.3580E 14.55375 4.38812
2
AFTER AVERAGE 11 4.5100E 23.25766 7.01245
2
One-Sample Test
Test Value = 0
tailed) Difference
BEFORE AVERAGE 99.314 10 .000 435.80000 426.0227 445.5773
AFTER AVERAGE 64.315 10 .000 451.00455 435.3798 466.6293
Interpretation:

Share Price Before & After 10 Days of EPS Announcement of WIPRO
WIPRO
-10 173.1 0 196.7
-9 169.95 1 189.5
-8 162.35 2 180
-7 179.2 3 191.9
-6 170.15 4 192.9
-5 176.35 5 196.7
-4 174.65 6 189.2
-3 182.6 7 186.55
-2 183.5 8 187.85
-1 184.15 9 187
0 196.7 10 181.1
Table 26 Share Price Before & After 10 Days of EPS Announcement of WIPRO
BEFORE AVERAGE 11
1.7752E 9.20387 2.77507
2
AFTER AVERAGE 11 1.8904E 5.45170 1.64375
2

One-Sample Test
Test Value = 0
t df Sig. (2- Mean Lower Upper
tailed) Difference
BEFORE AVERAGE 63.969 10 .000 177.51818 171.3349 183.7014
AFTER AVERAGE 115.003 10 .000 189.03636 185.3739 192.6989
Interpretation:
Share Price Before & After 10 Days of EPS Announcement of TECH MAHINDRA
TECH MAHINDRA
-10 595.45 0 565.5
-9 579.65 1 511.2
-8 530 2 520.9
-7 576.35 3 549.85
-6 487.2 4 558.9
-5 503.5 5 545.25
-4 526.7 6 526.85
-3 515.2 7 538.65
-2 504.1 8 517.65
-1 526.8 9 509.85
0 565.5 10 524.85
Table 29 Share Price Before & After 10 Days of EPS Announcement of TECH
MAHINDRA
N Mean Std. Deviation Std. Error
Mean
BEFORE AVERAGE 11
5.3731E 36.07504 10.87703
2
AFTER AVERAGE 11 5.3359E 19.20059 5.78919
2
One-Sample Test
Test Value = 0
tailed)
BEFORE AVERAGE 49.399 10 .000 537.31364 513.0781 561.5492
AFTER AVERAGE 92.169 10 .000 533.58636 520.6872 546.4855
Interpretation:

ANALYSIS OF DIVIDEND PER SHARE ON SHARE PRICE:
Share Price Before & After 10 Days of Dividend Announcement of HDFC BANK
HDFC BANK
-10 2283.95 0 2268.7
-9 2305.6 1 2245.3
-8 2289.4 2 2279.75
-7 2287.25 3 2263.45
-6 2237.35 4 2280.95
-5 2257.5 5 2317.45
-4 2265.25 6 2355.8
-3 2288.8 7 2367.95
-2 2305.05 8 2328.45
-1 2293.65 9 2322.35
0 2268.7 10 2307.25
Table 32 Share Price Before & After 10 Days of Dividend Announcement of
HDFC BANK
BEFORE AVERAGE 11
2.2802E 20.91197 6.30520
3
AFTER AVERAGE 11 2.3034E 39.17948 11.81306
3

One-Sample Test
Test Value = 0
Difference
BEFORE AVERAGE 361.642 10 .000 2280.22727 2266.1784 2294.2761
AFTER AVERAGE 194.988 10 .000 2303.40000 2277.0789 2329.7211
Interpretation:
significant value of DPS is 0.000 which is less than 0.05, So It Is say that
Dividend per share has significant impact on price of share.
Share Price Before & After 10 Days of Dividend Announcement of ICICI BANK
ICICI BANK
-10 407 0 401.3
-9 404.4 1 386.5
-8 394.5 2 382.2
-7 396.5 3 381.4
-6 401.1 4 385.1
-5 395.4 5 376.3
-4 407.2 6 380.4
-3 407.5 7 377.05
-2 395.55 8 382.5
-1 401.8 9 389.7
0 401.3 10 407.7
ICICI BANK

BEFORE AVERAGE 11
4.0111E 5.02405 1.51481
2
AFTER AVERAGE 11 3.8638E 9.85681 2.97194
2
One-Sample Test
Test Value = 0
t D Sig. (2- Mean Lower Upper
f tailed) Difference
BEFORE AVERAGE 264.795 10 .000 401.11364 397.7384 404.4888
AFTER AVERAGE 130.008 10 .000 386.37727 379.7554 392.9992
Interpretation:

Share Price Before& After 10 Days of Dividend Announcement of KOTAK MAHINDRA
KOTAK MAHINDRA
-10 1343.2 0 1386.55
-9 1343.45 1 1406.35
-8 1373.85 2 1417.8
-7 1386.4 3 1410.4
-6 1369.65 4 1408.15
-5 1356.7 5 1402.2
-4 1355.35 6 1385.5
-3 1366.75 7 1398.15
-2 1360.4 8 1389.35
-1 1379.25 9 1382.95
0 1386.55 10 1395.8

KOTAK MAHINDRA
BEFORE AVERAGE 11
1.3656E 15.32106 4.61947
3
AFTER AVERAGE 11 1.3985E 11.52071 3.47362
3

One-Sample Test
Test Value = 0
tailed) Difference
BEFORE AVERAGE 295.617 10 .000 1365.59545 1355.3026 1375.8883
AFTER AVERAGE 402.598 10 .000 1398.47273 1390.7330 1406.2124
Interpretation:
Share Price Before & After 10 Days of Dividend Announcement of AXIS BANK
AXIS BANK
-10 763.4 0 740.9
-9 760.85 1 759.9
-8 752.3 2 766.85
-7 764.35 3 752.35
-6 762.85 4 757.3
-5 771.1 5 747.45
-4 771.2 6 741.85
-3 755.5 7 735.5
-2 753.25 8 731
-1 752.85 9 735.05
0 740.9 10 732.1

AXIS BANK
BEFORE AVERAGE 7.5896E11 9.03933 2.72546
2
AFTER AVERAGE 11 7.4548E 12.19277 3.67626
2
One-Sample Test
Test Value = 0
tailed)
BEFORE AVERAGE 278.470 10 .000 758.95909 752.8864 765.0318
AFTER AVERAGE 202.781 10 .000 745.47727 737.2861 753.6685
Interpretation:

Share Price Before & After 10 Days of Dividend Announcement of INDUSIND BANK
INDUSIND BANK
-10 1488.75 0 1518.9
-9 1476.55 1 1598.75
-8 1439.9 2 1648.9
-7 1393.3 3 1612.8
-6 1432.7 4 1619.65
-5 1379 5 1608.65
-4 1,358.20 6 1586.9
-3 1373.55 7 1605.35
-2 1494.65 8 1662.65
-1 1447.75 9 1638
0 1518.9 10 1522.65
INDUSIND BANK
BEFORE AVERAGE 11
1.4367E 54.70248 16.49342
3
AFTER AVERAGE 11 1.6021E 45.93268 13.84923
3

One-Sample Test
Test Value = 0
tailed) Difference
BEFORE AVERAGE 87.105 10 .000 1436.65909 1399.9095 1473.4087
AFTER AVERAGE 115.682 10 .000 1602.10909 1571.2511 1632.9671
Interpretation:
Share Price Before & After 10 Days of Dividend Announcement of TCS
TCS
-10 1824.5 0 1716.05
-9 1778.5 1 1806.2
-8 1826.1 2 1818.65
-7 1708.75 3 1737.65
-6 1654.2 4 1769.5
-5 1775.2 5 1878.25
-4 1705.45 6 1818.55
-3 1766.15 7 1836.6
-2 1759.25 8 1859.05
-1 1735.15 9 1905.65
0 1716.05 10 2014.45
Table 47 Share Price Before & After 10 Days of Dividend Announcement of TCS

BEFORE AVERAGE 11
1.7499E 52.31837 15.77458
3
AFTER AVERAGE 11 1.8328E 82.99088 25.02269
3
One-Sample Test
Test Value = 0
t df Sig. (2- Mean Lower Upper
tailed) Difference
BEFORE AVERAGE 110.934 10 .000 1749.93636 1714.7884 1785.0843
AFTER AVERAGE 73.245 10 .000 1832.78182 1777.0278 1888.5359
Interpretation:

Share Price Before & After 10 Days of Dividend Announcement of INFOSYS
INFOSYS
-10 641.5 0 653.3
-9 602.8 1 633.2
-8 585.7 2 641.85
-7 639 3 679.3
-6 631.6 4 658
-5 636.25 5 664.6
-4 637.4 6 660.7
-3 639.05 7 676.55
-2 623.85 8 715.5
-1 628.75 9 673.7
0 653.3 10 673.7

INFOSYS
BEFORE AVERAGE 11
6.2902E 19.14559 5.77261
2
AFTER AVERAGE 11 6.6640E 21.83956 6.58488
2

One-Sample Test
Test Value = 0
Difference
BEFORE AVERAGE 108.966 10 .000 629.01818 616.1560 641.8804
AFTER AVERAGE 101.202 10 .000 666.40000 651.7280 681.0720
Interpretation:
Dividend per share has significant impact on price of share
Share Price Before & After 10 Days of Dividend Announcement of HCL TECH
HCL TECH
-10 462.4 0 511.75
-9 477.7 1 518.4
-8 468.1 2 527.55
-7 483.1 3 527.4
-6 471.1 4 528.75
-5 491.75 5 517.45
-4 543.55 6 511.25
-3 514.25 7 510.75
-2 520.4 8 518.25
-1 519.1 9 526.75
0 511.75 10 534.85
Table 53 Share Price Before & After 10 Days of Dividend Announcement of HCL
TECH

BEFORE AVERAGE 11
4.9665E 26.48231 7.98472
2
AFTER AVERAGE 11 5.2120E 8.25229 2.48816
2
One-Sample Test
Test Value = 0
tailed)
BEFORE AVERAGE 62.201 10 .000 496.65455 478.8635 514.4456
AFTER AVERAGE 209.470 10 .000 521.19545 515.6515 526.7394
Interpretation:

Share Price Before & After 10 Days of Dividend Announcement of WIPRO
WIPRO
-10 245.8 0 257.2
-9 247.7 1 248.25
-8 248.3 2 250.45
-7 251.1 3 251.1
-6 252.15 4 248
-5 255.2 5 247.1
-4 254.8 6 245.85
-3 253.65 7 248.7
-2 251.75 8 247.6
-1 254.8 9 245.35
0 257.2 10 244.05

WIPRO
BEFORE AVERAGE 11
2.5204E 3.56622 1.07526
2
AFTER AVERAGE 11 2.4851E 3.55134 1.07077
2

One-Sample Test
Test Value = 0
tailed)
BEFORE AVERAGE 234.401 10 .000 252.04091 249.6451 254.4367
AFTER AVERAGE 232.089 10 .000 248.51364 246.1278 250.8995
Interpretation:
Share Price Before & After 10 Days of Dividend Announcement of TECH MAHINDRA
TECH MAHINDRA
-10 517.65 0 546.25
-9 509.85 1 502.45
-8 524.85 2 499.95
-7 512.95 3 506.85
-6 518.3 4 516.35
-5 523.7 5 536.2
-4 503.45 6 530.2
-3 511.7 7 533.25
-2 520.4 8 544.75
-1 528.7 9 515.7
0 546.25 10 510.55

TECH MAHINDRA

BEFORE AVERAGE 11
5.1980E 11.42635 3.44517
2
AFTER AVERAGE 11 5.2205E 16.73824 5.04677
2
One-Sample Test
Test Value = 0
tailed)
BEFORE AVERAGE 150.878 10 .000 519.80000 512.1237 527.4763
AFTER AVERAGE 103.442 10 .000 522.04545 510.8006 533.2904
Interpretation:

FINDINGS
Hypothesis testing of sample
IMPACT OF EPS IMPACT OF DPS

COMPANY
Significant Null hypothesis Significant Null hypothesis
NAME Value rejected / value rejected /
accepted accepted
HDFC BANK 0.000 Rejected 0.000 Rejected
ICICI BANK 0.000 Rejected 0.000 Rejected
KOTAK 0.000 Rejected 0.000 Rejected

MAHINDRA
AXIS BANK 0.000 Rejected 0.000 Rejected
INDUSIND 0.000 Rejected 0.000 Rejected

BANK
TCS 0.000 Rejected 0.000 Rejected
INFOSYS 0.000 Rejected 0.000 Rejected
HCL TECH 0.000 Rejected 0.000 Rejected
WIPRO 0.000 Rejected 0.000 Rejected
TECH 0.000 Rejected 0.000 Rejected

MAHINDRA
Table 62 Hypothesis testing of sample
 HDFC BANK have impact of EPS, DPS on SHARE PRICE

 ICICI BANK have impact of EPS, DPS on SHARE PRICE
 KOTAK MAHNDRA have impact of EPS, DPS on SHARE PRICE
 XIS BANK have impact of EPS, DPS on SHARE PRICE
 INDUSIND BANK have impact of EPS, DPS on SHARE PRICE

 TCS have impact of EPS, DPS on SHARE PRICE
 INFOSYS have impact of EPS, DPS on SHARE PRICE
 HCL TECH have impact of EPS, DPS on SHARE PRICE
 WIPRO have impact of EPS, DPS on SHARE PRICE
 TECH MAHINDRA have impact of EPS, DPS on SHARE PRICE
 HDFC BANK has average shared price of Rs. 865.95 before 10 days of EPS
announcement which has increased by Rs. 16.69 and reached to Rs.882.64 for
after 10 days average.
 ICICI BANK has average shared price of Rs. 328.2909 before 10 days of EPS
announcement which has increased by Rs. 3.1773 and reached to Rs. 331.4682
for after 10 days average.
 KOTAK MAHINDRA BANK has average shared price of Rs. 1260.995 before 10
days of EPS announcement which has decreased by Rs. 61.3 and reached to Rs.
1199.695 for after 10 days average.
 AXIS BANK has average shared price of Rs. 382.2818 before 10 days of EPS
announcement which has increased by Rs. 22.9 and reached to Rs. 405.1818 for
 INDUSIND BANK has average shared price of Rs. 410.1045 before 10 days of
EPS announcement which has decreased by Rs. 11.359 and reached to Rs.
 TCS has average shared price of Rs. 1735.4 before 10 days of EPS announcement
which has increased by Rs. 16.523 and reached to Rs. 1751.923 for after 10 days
average.
 INFOSYS has average shared price of Rs. 591.4864 before 10 days of EPS
 HCL TECH has average shared price of Rs. 435.8 before 10 days of EPS

 WIPRO has average shared price of Rs. 177.5182 before 10 days of EPS
 TECH MAHINDRA has average shared price of Rs. 537.3136 before 10 days of
EPS announcement which has decreased by Rs. 3.7272 and reached to Rs.
 HDFC BANK has average shared price of Rs. 2280.22 before 10 days of DPS
 ICICI BANK has average shared price of Rs. 401.1136 before 10 days of DPS
announcement which has decreased by Rs. 14.7363 and reached to Rs. 386.3773
 KOTAK MAHINDRA has average shared price of Rs. 1365.595 before 10 days of
DPS announcement which has increased by Rs. 32.878 and reached to Rs.
 AXIS BANK has average shared price of Rs. 758.9591 before 10 days of DPS
 INDUSIND BANK has average shared price of Rs. 1436.659 before 10 days of
DPS announcement which has increased by Rs. 165.45 and reached to Rs.
 TCS has average shared price of Rs. 1749.936 before 10 days of DPS
 INFOSYS has average shared price of Rs. 629.0182 before 10 days of DPS
 HCL TECH has average shared price of Rs. 496.6545 before 10 days of DPS
announcement which has increased by Rs. 24.541 and reached to Rs.

 WIPRO has average shared price of Rs. 252.0409 before 10 days of DPS
 TECH MAHINDRA has average shared price of Rs. 519.8 before 10 days of DPS

CONCLUSION
Based on the findings, the study concluded that EPS has a positive and
significant impact on Share price and also DPS has a positive and significant
impact on share price.
In KOTAK MAHINDRA, INDUSIND BANK, TECH MAHINDRA after

announcement of Earnings Per Share average share price after 1O Days has
been decreased it can be due to higher expectation of EPS and lower
announcement.
In ICICI BANK, AXIS BANK, WIPRO after announcement of dividend average

share price After 10 days has been decreased it can be due to higher
expectation of dividend and lower announcement.

RECOMMENDATION
Research has recommended that investor can invest in HDFC BANK, ICICI
BANK, AXIS BANK, TCS, INFOSYS, HCL TECH, WIPRO because they are
fulfilling the expectation of earnings per share of investor.
Research has recommended that investor can invest in HDFC BANK, KOTAK
MAHINDRA, INDUSIND BANK, TCS, INFOSYS, HCL TECH, TECH MAHINDRA
because they are fulfilling the expectation of dividend of investor.

BIBLIOGRAPHY
Badruzamana, J. (2020). THE IMPACT OF EARNING PER SHARE AND RETURN ON

EQUITY ON STOCK PRICE. Systematic Reviews in Pharmacy, 11(6), 1285-1289.
Aiyabei, J. C., Tobias, O., &Macharia, I. (2019).Influence of Dividend per Share on

Idiosyncratic Volatility of Stock Returns among Listed Firms in Kenya. Journal of Finance and
Accounting, 3(1), 1-13.
Vutale, A. V., & Chen, B.The Effects of Dividend Policy on Market Share Price of the Listed
Companies at the Nairobi Securities Exchange (NSE) in Kenya.
Bratamanggala, R. (2018). Factors affecting earning per share: the case of Indonesia.
Jain, N., & Bajaj, K. (2017). Impact of Earnings per Share on Market Price of Share with Special
Reference to Selected Companies Listed on NSE. International Journal of Engineering and
Management Research (IJEMR), 7(3), 1-9.
Kumar, P. (2017). Impact of earning per share and price earnings ratio on market price of share:
a study on auto sector in India. International Journal of Research-Granthaalayah, 5(2), 113-
118.
Balakrishnan, K. P. (2016). A study on impact of earnings per share, dividend per share and
price earnings ratio on behaviour of share market price movement (Pharma Sector) with special
reference to NSE. IJARIIE, 2(1), 2395-4396.
Amyulianthy, R., &Ritonga, E. K. (2016). The Effect Of Economic Value Added And Earning
Per Share To Stocks Return (Panel Data Approachment). International Journal of Business and
Management Invention, 5(2), 8-15.
Maharshi, N., & Malik, S. (2015). The Impact Of The Dividend Policy On The Market Price Of
The Shares And Growth Of Joint Stock Companies Covered In Sensex. International Journal of
Innovative Science, Engineering & Technology, 2(1).
Talamati, M. R., &Pangemanan, S. S. (2015). The effect of earnings per share (eps) & return
on equity (roe) on stock price of banking company listed in indonesia stock exchange (idx)
2010- 2014. Jurnal EMBA: JurnalRisetEkonomi, Manajemen, BisnisdanAkuntansi, 3(2).
Garba, A. (2014). Impact of Dividend-Per-Share on Common Stock Returns: A Case Study of

Some Selected Manufacturing Firms Listed on the Nigeria Stock Exchange. European Journal of
Business and Management, 6(30).

Ordu, M. M., Enekwe, C. I., &Anyanwaokoro, M. (2014). Effect of dividend payment on the
market price of shares: A study of quoted firms in Nigeria. IOSR Journal of Economics and
Finance, 5(4), 49-62.
Khan, T. R., Islam, M., Choudhury, T. T., & Adnan, A. M. (2014) has been conducted research
on how earning per share (EPS) affects on share price and firm value.
Ilaboya, O. J., &Aggreh, M. (2013). Dividend policy and share price volatility. Journal of Asian
Development.
Menaje, P. M. (2012). Impact of selected financial variables on share price of publicly listed
firms in the Philippines. American international journal of Contemporary Research, 2(9), 98-
104.
Web Links:
EPS
https://en.wikipedia.org/wiki/Earnings_per_share
https://www.investopedia.com/terms/e/eps.asp
https://finance.zacks.com/happens-stock-prices-eps-increases-3365.html
https://www.moneycontrol.com/stocks/marketinfo/eps/nse/index.html
DPS
https://www.investopedia.com/ask/answers/032715/what-does-dividend-
share-tell- investors.asp#:~:text=Updated%20Jul%209%2C%202020,share
%20profits
%20with%20its%20shareholders.
https://corporatefinanceinstitute.com/resources/knowledge/finance/divi
dend-per-share/
https://www.moneycontrol.com/india/stockpricequote/DPS

SHARE PRICE
https://en.wikipedia.org/wiki/Share_price#:~:text=A%20share%20price% 20is
%20the,it%20can%20be%20bought%20for.
https://study.com/academy/answer/if-d1-3-00-g-which-is-constant-5-
and-p0-35-what-is-the-stock-s-expected-dividend-yield-for-the-coming-
year.html
https://www.nseindia.com/
STOCK MARKET
https://en.wikipedia.org/wiki/Stock_market
https://en.wikipedia.org/wiki/National_Stock_Exchange_of_India#:~:text=
National%20Stock%20Exchange%20of%20India%20Limited%20(NSE)%20i
s%20the%20leading,electronic%20exchange%20in%20the%20country.
https://www.nseindia.com/
Literature Review Links:

https://www.sysrevpharm.org/articles/the-impact-of-earning-per-share-and-
return-on-equity-on-stock-price.pdf
https://stratfordjournals.org/journals/index.php/journal-of-
accounting/article/download/239/290
https://www.iiste.org/Journals/index.php/RJFA/article/download/45368/46
826
https://www.ijeba.com/journal/160/download
https://www.ijemr.net/DOC/ImpactOfEarningsPerShareOnMarketPriceOfShar
eWithSpecialReferenceToSelectedCompaniesListedOnNSE.PDF
http://oaji.net/articles/2017/1330-1491311580.pdf

http://ijariie.com/AdminUploadPdf/A_STUDY_ON_IMPACT_OF EARNINGS_P
ER_SHARE DIVIDEND_PER_SHARE_PRICE_EARNING_RATIO_ON_BEHAVIO
UR_OF_SHARE_MARKET_PRICE_MOVEMENTS_PHARMA_SECTOR WITH_SP
ECIAL_REFERENCE_TO_NSE_ijariie1603.pdf
http://dosen.univpancasila.ac.id/dosenfile/1210230038145915517528March
2016.pdf
http://ijiset.com/vol2/v2s1/IJISET_V2_I1_24.pdf
https://media.neliti.com/media/publications/2662-EN-the-effect-of-earnings-
per-share-eps-return-on-equity-roe-on-stock-price-of-bank.pdf
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.677.7231&rep=rep
1&type=pdf
https://www.iiste.org/Journals/index.php/EJBM/article/viewFile/13572/138
41
http://www.iosrjournals.org/iosr-jef/papers/Vol5-Issue4/G0544962.pdf
http://aijcrnet.com/journals/Vol_2_No_9_September_2012/12.pdf
https://d1wqtxts1xzle7.cloudfront.net/39956686/JADS_109-
122_dr_ilobaya.pdf?1447396553=&response-content- disposition=inline
%3B+filename%3DDividend_Policy_and_Share_Price_Volatili.
pdf&Expires=1618126917&Signature=czw4AHplUlj~KFNKLYhLaHgCTBHbLch8
a4saWPfKSWnxrGxDnhSG1IH4PbV1L39z7jMKPPy3Vh9oHWpKEH12DfWvwaZc
7bhr6GPPAmg08hIKII69KPI9U5QWEzfz~riHus3jI3~ky4WZj-
PP7T0U4zTv5JowgvMDXb0di51BBaK6M4oB-ZOllKXsK8-SS8GnE-
qtSzHoDmcz40xwdukkc0URFg1HSE6-5uwvfVZcMBoCg-
CO46r4eWrqaqLuK~a7HUdiS9CiqeoJ1l~uUf9haBMejb-
sxRR1qdxQ2V3WFWelA8Q~qVZMVzG8B-
aEQsjKLHmQvc46QFGqwBZTl~A~qg &Key-Pair-
Id=APKAJLOHF5GGSLRBV4ZA

Appendix

ABOUT
THE
TOPIC
ABOUT
THE
COMPANY
LITERATURE
REVIEW
RESEARCH
METHODOLOGY
DATA ANALYSIS
&
INTERPRETATION
FINDINGS
CONCLUSION
RECOMMADATION
BIBLOGRAPHY
APPENDIX

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A

“TO STUDY IMPACT OF EARNINGS PER SHARE & DIVIDEND

Miss. Kajal Patel Mr. Viral Chauhan

FACULTY GUIDE I/C PRINCIPAL

I am Trivedi Jatinbhai Jagdishbhai from VIDYABHARTI TRUST

Trivedi Jatinbhai Jagdishbhai

I wish to express my sincere thanks to Mr. VIRAL CHAUHAN,

I wish to express my deep sense gratitude to my guide Miss. Kajal Patel

I am sincerely thankful to all faculty member of BBA department who

Last but not least, I am also grateful to my parents, colleagues whose

Trivedi Jatinbhai Jagdishbhai

“A Study on Impact of Earnings Per Share and Dividend on Share Price

3. Objective of the Research:

 To analyze the impact of EPS, DPS on stock performance

 To determine the relationship between EPS and stock performance

 To determine the relationship between DPS and stock performance

1. Exploratory Research Design

2. Descriptive Research Design

3. Causal Research Design

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

There are two type of data collection method:

1. Primary Data Collection:

Primary Data Collection:

Secondary Data Collection:

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

Sampling technique is classified in two types.

In this study, Research will use Non-Probability Convenience Sampling.

One sample T-TEST has been used to analyses the data.

8. Selection period of Script Data:

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

SR. NO TOPIC PAGE NO.

2 LETERATURE REVIW 14-21

3 RESEARCH METHODOLOGY 22-25

4 DATA ANALYSIS & INTERPRETATION 26-55

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

Table 1 List of Companies Name..................................................................................................24

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

EPS = Earnings Per Share

DPS = Dividend Per Share

NSE = National Stock Exchange

SEBI = Securities Exchange Board of India

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH

ABOT THE COMPANY

Started in 2016, Mohak Consultancy is officially recognized as South Gujarat’s

Mohak Consultancy is South Gujarat’s up growing stock broker in terms of

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH Page 1

Quality Policy, Vision and Mission

It is now dedicated to provide more up – to – date and timely knowledge as well

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH Page 2

As a broking house, Mohak Consultancy has consistently upheld its vision to

Services provided by Mohak Consultancy:

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH Page 3

Earnings Per Share:

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH Page 4

Formula and Calculation for EPS:

VIDYABHARTI TRUST COLLEGE OF BBA, UMRAKH Page 5

Dividend Per Share (DPS):