Report Part

INDUSTRY PROFILE
1.1 Financial System in India
A striking feature of Indian Financial System (IFS) is its impressive growth in the past 50 years
in terms of size, diversity, sophistication and complexity. Money supply, savings, bank deposits
and credit, primary and secondary issues and so on, have increased tremendously. The supportive
factor being the continuous and high rate of inflation, but that constitutes only a part of the
explanation. The prices in 1996 were about 18 times the prices in 1950.
The quantitative growth of the IFS has been accompanied by the significant diversification and
innovation in respect of an array of financial institutions, instruments and services. India has
witnessed all types of financial innovations during the past 50 years. A large number of totally
new institutions catering to almost every sector have been set up since 1950. As a result, today
we have a highly diversified structure of financial system. Similarly, a large number of new
financial instruments have introduced. Computerization has affected the IFS.
Fundamental Analysis of Cement sector Page 1

1.2 STOCK EXCHANGE IN INDIA
The origin of the stock exchange in India can be traced to the later half of 19th century. After the
American Civil War (1860-61) due to the share mania of the public, the number of brokers
dealing in shares increase. The brokers organized an informal association in Mumbai named
“The Native Stock and Share Brokers Association” in 1875.
Increased activity in trade and commerce during the First World War and Second World War
resulted in an increase in the stock trading. Stock exchanges were established in different centers
like Chennai, Delhi, Nagpur, Kanpur, Hyderabad and Banglore. Worldwide depression affected
them. Most of the stock exchanges in the early stages had a speculative nature of working
without technical strength. Securities and Contract Regulation Act, 1956 gave powers to the
Central Government to regulate the stock exchanges. The stock exchanges in Mumbai, Kolkata,
Chennai, Ahmedabad, Delhi, Hyderabad and Indore were recognized by the SCR Act. The
Banglore stock exchange was recognized only in 1963. At present we have 23 stock exchanges
and 21 of them had hardware and software complaint to solve Y2K problem.
Till recent past, floor trading took place in all the stock exchanges. In the floor trading system,
the trade takes place through open outcry system during the official trading hours. Trading posts
are assigned for different securities where buy and sell activities took place. This system needs a
face to face contact among the traders and restricts the trading volume. The speed of the new
information reflected on the prices was rather slow. The deal was not transparent and the system
favored the brokers rather than the investors.
The setting up of NSE and OTCEI with the screen based trading facility in more and more stock
exchanges turning towards the computer based trading. Bombay Stock Exchange introduced the
screen based trading system in 1995, which is known as BOLT (Bombay On-line Trading
System)

Functions of Stock Exchange:
(1) Maintains active trading: Shares are traded on the stock exchanges, enabling the investors
to buy and sell securities. The prices many vary from transaction to transaction. A continuous
trading increases the liquidity or marketability of the shares traded on the stock exchanges.
(2) Fixation of prices: Prices is determined by the transactions that flow from investors’
demand and suppliers’ preferences. Usually the traded prices are made known to the public..
(3) Ensures safe and fair dealing: The rules, regulations and by-laws of the stock exchanges’
provide a measure of safety to the investors. Transactions are conducted under competitive
conditions enabling the investors to get a fair deal.
(4) Aids in financing the industry: A continuous market for shares provides a favorable climate
for raising capital. The negotiability and transferability of the securities helps the companies
to raise long-term funds. When it is easy to trade the securities, investors are willing to
subscribe to the initial public offerings.
(5) Dissemination of information: Stock exchanges provide information through their various
publications. They publish the share prices traded on daily basis along with the volume
traded. Directory of Corporate Information is useful for investors’ assessment regarding the
corporate. Handouts, handbooks and pamphlets provide information regarding the
functioning of the stock exchanges.
(6) Performance inducer: The prices of stocks reflect the performance of the traded companies.
This makes the corporate more concerned with its public image and tries to maintain good
performance.
(7) Self-regulating organization: The stock exchanges monitor the integrity of the members,
brokers, listed companies and clients. Continuous internal audit safeguards the investors
against unfair trade practices. It settles the disputes between member brokers, investors and
brokers.
BOMBAY STOCK EXCHANGE
Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as
the BSE was established as "The Native Share & Stock Brokers' Association" in 1875.
Over the past 135 years, BSE has facilitated the growth of Indian corporate sector by providing it
with an efficient capital raising platform.
Today, BSE is the world's number 1 exchange in the world in terms of the number of listed
companies (over 4900). It is the world's 5th most active in terms of number of transactions
handled through its electronic trading system. And it is in the top ten of global exchanges in
terms of the market capitalization of its listed companies (as of December 31, 2009). The
companies listed on BSE command a total market capitalization of USD Trillion 1.28 as of Feb,
2010.
Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by
providing it it with an efficient capital raising platform.
BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000
certifications. It is also the first Exchange in the country and second in the world to receive
Information Security Management System Standard BS 7799-2-2002 certification for its BSE
On-Line trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO
version of BS 7799 for Information Security.
The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index.
Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and
options on the index are also traded at BSE. index. Exchange traded funds (ETF) on SENSEX,
are listed on BSE and in Hong Kong. Futures and options on the index are also traded at BSE.
Vision –
"Emerge as the premier Indian stock exchange by establishing global benchmarks"
BSE Entrance
Source: www.bseindia.com
NATIONAL STOCK EXCHANGE
The National Stock Exchange (NSE) is India's leading stock exchange covering various cities
and towns across the country. NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The Exchange has brought about
unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities
that serve as a model for the securities industry in terms of systems, practices and procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent trading, clearing and settlement
mechanism, and has witnessed several innovations in products & services viz. demutualisation of

stock exchange governance, screen based trading, compression of settlement cycles,
dematerialisation and electronic transfer of securities, securities lending and borrowing,
professionalisation of trading members, fine-tuned risk management systems, emergence of
clearing corporations to assume counterparty risks, market of debt and derivative instruments
and intensive use of information technology.
The National Stock Exchange of India Limited has genesis in the report of the High Powered
Study Group on Establishment of New Stock Exchanges. It recommended promotion of a
National Stock Exchange by financial institutions (FIs) to provide access to investors from all
across the country on an equal footing. Based on the recommendations, NSE was promoted by
leading Financial Institutions at the behest of the Government of India and was incorporated in
November 1992 as a tax-paying company unlike other stock exchanges in the country.
On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in
April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. The Capital Market (Equities) segment commenced operations in November 1994 and
operations in Derivatives segment commenced in June 2000.
The following years witnessed rapid development of Indian capital market with introduction of
internet trading, Exchange traded funds (ETF), stock derivatives and the first volatility index -
IndiaVIX in April 2008, by NSE.
August 2008 saw introduction of Currency derivatives in India with the launch of Currency
Futures in USD INR by NSE. Interest Rate Futures was introduced for the first time in India by
NSE on 31st August 2009, exactly after one year of the launch of Currency Futures.
With this, now both the retail and institutional investors can participate in equities, equity
derivatives, currency and interest rate derivatives, giving them wide range of products to take
care of their evolving needs.

Mission-
NSE's mission is setting the agenda for change in the securities markets in India. The NSE was
set-up with the main objectives of:
• establishing a nation-wide trading facility for equities, debt instruments and hybrids,
• ensuring equal access to investors all over the country through an appropriate
communication network,
• providing a fair, efficient and transparent securities market to investors using electronic
trading systems,
• enabling shorter settlement cycles and book entry settlements systems, and
• meeting the current international standards of securities markets.
The standards set by NSE in terms of market practices and technologies have become industry
benchmarks and are being emulated by other market participants. NSE is more than a mere
market facilitator. It's that force which is guiding the industry towards new horizons and greater
opportunities.
NSE Building
Source: www.nseindia.com

COMPANY AT GLANCE
1.3 ABOUT MARWADI GROUP:

Marwadi Group was incorporated in 1992 with the vision of providing superior standards of
executive financial services focusing on professionalism, speed and ethics to a wider client's
spectrum in India and proposed to start its operation in the subcontinent & overseas. In the last
17 years we have grown into a network of 70 branches with a 1000+ committed professional
people and 700+ channel partners across India. We've kept the faith of over 2.50+ lakhs investors
and its growing. After establishing supremacy in Gujarat, we now expanding nationwide and to
fuel our growth plans we recently raised capital from UK-based investment companies. The
foundation is on "Value" Systems-"Value" addition to Corporate, Retails and HNI Individuals
Through Superior business strategy Advisory & Consultancy practices. All actions are based on
stringent "Values" - integrity, confidentiality & commitment, "True Value" for money through a
holistic consultative practice. Finally, "Value" for client satisfaction, predominates our
relationship criteria.
A convincing index of our customer loyalty is that nearly 75% of our customers have been with
us for a period of more than three years. This means that a bulk of our customers have subscribed
to our services on a long term-basis.Marwadi Group strength lies in its team of confident, young,
talented, qualified and experienced professionals to carry out different functions under the able
leadership of its management.

BOARD OF DIRECTORS:
Mr.Ketan H. Marwadi – Core promoter as well as Chairman cum Managing Director
Mr.Deven H. Marwadi – Director of the company
Mr.Sandeep H. Marwadi – Whole Time Director
Mr.Kai Taraporevala – Nominee Director for ICGU Limited
Mr.Tony Hambro – Nominee Director Caledonia Investment
Marwadi Traditional in Values, not in business:
What makes Marwadi Group different from any other broking firm is our ability to borrow from
the wisdom and values of our past while keeping an eagle eye on the future. Which is why you’ll
find the latest in processes, infrastructure and technology bundled together is served you at your
doorstep, but more than that you’ll find a personal touch. While we value your money (Trust us,
we’ll do everything to make it grow) but we value your relationship more.
Marwadi Financial Centre, Rajkot
MISSION AND VISION:

"To be a world-class financial services provider by arranging all conceivable financial services
under one-roof at affordable costs through cost effective delivery systems, and achieve organic
growth in business by adding newer lines of business.”

SERVICES:
Equity & Derivatives

Commodity
Internet Trading
Depository Participant
IPO
Mutual Funds
PMS
Pension
PAN Card
Research
Back Office
Why Marwadi….?????
People invest with Marwadi because of –

-Trust & Reliability
-Speed of Execution
-Research Advice
-Personalized Sevices
MILESTONES:
The company crossed the following milestones to reach its present position as the leading retail
broking house in India.
• 1992...Marwadi Shares And Finance Pvt. Ltd. was incorporated by first generation
Entrepreneurs Shri Ketan Marwadi, Shri Deven Marwadi and Shri Sandeep Marwadi
• 1996...Became a corporate member of National Stock Exchange Of India - (NSE)
• 1998...Became a member of Saurastra Kutch Stock Exchange (SKSE)

• 1999...Launched Depository services of Depository Participant under National
Depository Security Ltd. (NSDL)
• 2000...Commenced Derivative Trading after obtaining registration as Clearing and

Trading Member in NSE.
• 2003...(MCBPL) Became a corporate member of the National Commodity and

Derivatives Exchange of India Ltd.
• 2003...(MCBPL) Became a corporate member of The Multi Commodity Exchange of

India Ltd.
• 2004...Became a corporate member of Bombay Stock Exchange Ltd. (BSE)
• 2004...Launched Depository Services of Depository Participant under Central Depository

Services (India) Ltd.
• 2005...Launched Portfolio Management Services
• 2006...MSFPL converted to Public Limited (Marwadi Shares And Finance Limited)
• 2006 – The Company raised private equity from ICGU Limited, a wholly owned
subsidiary of India Capital Growth Fund.
• 2007 – Attracted Private Equity Investment from Reputed Investors Caledonia & ICGI.
• 2008 – Adjudged the 5th Largest Broking House by Dun & Bradstreet.
• 2009 – Growing Institutional Business.
2009 – Moves in to 90,000 Square Feet State of Art Infrastructure
NAVSARI BRANCH INFORMATION:
Details of BSE/NSE Trading Terminals –
Name of the Trading Firm (Stock Broker) of NSE/BSE: -
Marwadi Shares and Finance Limited.
Address & Tel No. of the Main Office of Trading Member: -
“Marwadi Financial Plaza”,

Nana Mava Main Road, Opp. 150 FEET WIDE Ring Road,
Rajkot – 360005 Ph: 0281- 2332001, 2332301/2/3/4
Contact Person’s name in the Main Office:-
Mr. Sandeep H. Marwadi, Director
Ph No.: 0281 2332001
SEBI Registration o. of Trading Member:-
 NSE CM: INB230876034,
F & O: INF230876034, CDS: INE230876034
 BSE CM: INB010876036,
F & O: INF010876036, CDS: INE010876036,
MCX CDS: INE260876034
Terminal Address:-
Manohar Complex 1st Floor,
Opp. Daboo Hospital, Near Fuvara,
Navsari – 396445.
Ph No.: 09879615937,
02637 – 240582
Terminnal Branch Manager:-
Mr. Rikin Desai
Number of Clients in Navsari Branch:-
418

THEORITICAL ASPECTS
2.1 FUNDAMENTAL ANALYSIS
An investor who would like to be rational and scientific in his investment activity has to evaluate
a lot of information about the past performance and expected future performance of companies,
industries and the economy as a whole before taking the investment decision. Such an evaluation
or analysis is called fundamental analysis. Fundamental analysis is a logical and systematic
approach to estimate the future dividends and share prices. The intrinsic value of an equity share
depends on a multitude of factors. The earnings of the company, the growth rate and the risk
exposure of the company have a direct bearing on the price of the share. These factors in turn
rely on the host of other factors like economic environment in which they function, the industry
they belong to, and finally companies’ own performance. The fundamental school of thought
appraised the intrinsic value of shares through
- Economic Analysis
- Industry Analysis
- Company Analysis

Fundamental analysis is a stock valuation method that uses financial analysis to predict price
movement. Fundamental analysis attempts to analyze the company’s operations market in which
the company is operating to understand the stability and growth potential of a company. It is
presumed that this will be reflecting in the sock price. Another application of fundamental
analysis presumes that the market is indeed somewhat efficient, but some stocks are either over-
or-undervalued. This use of fundamental analysis can be viewed as a type of arbitrage.
Sometimes earnings multiples, such as the P/E Ratio are used to determine value, where cash
flows are relatively stable and predictable. The obvious caveat is that the P/E Ratio is ultimately
not an objective measured because it must be interpreted. A high P/E Ratio might be an
overlooked stock, or it might be a company with potential for growth. Other techniques include
discounted cash flow, book value and dividend yield analysis. Fundamental include economic
factor, industry-specific trends, capital market conditions and company-specific data and
qualities.
2.2 ECONOMIC ANALYSIS
The level of economic activity has an impact on investment in many ways. If the economy grows
rapidly, the industry can also be expected to show rapid growth and vice versa. When the level of
economic activity is low, stock prices are low, and when the level of economic activity is high,
stock prices are high reflecting the prosperous outlook for sales and profits of the firms. The
analysis of macro economic environment is essential to understand the behavior of the stock
prices. The commonly analyzes macro economic factors are as follows –
(1) Gross Domestic product (GDP): GDP indicates the rate of growth of the company.
GDP represents the aggregate value of the goods and services produced in the economy.
GDP consists of personal consumption expenditure, gross private domestic investment
and government expenditure on good and services and net export of goods and services.
The estimates of GDP are available on annual basis. India’s Growth Rate for 2009-10 is
estimated at 7.2 per cent. The growth rate of economy points out the prospects for the
industrial sector and the return investors can expect from investment in shares. The
higher growth rate is more favorable to the stock market.

(2) Table 1.1
Year Mar Jun Sep Dec Average

2010 8.60 8.60
2009 5.80 6.00 8.60 6.50 6.73
2008 8.50 7.80 7.50 6.10 7.48
2007 9.60 9.30 9.40 9.70 9.50
(2) Savings and Investment: stock market is a channel through which the savings of the
investors are made available to the corporate bodies. Savings are distributed over
various assets like equity shares, deposits, mutual fund units, real estate and bullion.
The saving and investment patterns of the public affect the stock to a great extent.
Graph 1.1
(3) Savings and Investment: stock market is a channel through which the savings of the
investors are made available to the corporate bodies. Savings are distributed over
various assets like equity shares, deposits, mutual fund units, real estate and bullion.
The saving and investment patterns of the public affect the stock to a great extent.

(4) Inflation: Along with the growth of GDP, if the inflation rate also increases, then the
real rate of growth would be very little. The demand in the consumer product industry
is significantly affected. The industries which come under the government price
control policy may lose the market, for example Sugar. The government control over
this industry, affects the price of the sugar and thereby the profitability of the industry
itself. If thee is a mild level of inflation, it is good to the stock market but high rate of
inflation is harmful to the stock market. The inflation rates are as under
Table 1.2
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 16.22 14.86 14.86 13.33
2009 10.45 9.63 8.03 8.70 8.63 9.29 11.89 11.72 11.64 11.49 13.51 14.97
2008 5.51 5.47 7.87 7.81 7.75 7.69 8.33 9.02 9.77 10.45 10.45 9.70
2007 6.72 7.56 6.72 6.67 6.61 5.69 6.45 7.26 6.40 5.51 5.51 5.51
Graph 1.2
(5) Interest Rates: The interest rate affects the cost of financing to the firms. A decrease
in interest rate implies lower cost of finance for firms and more profitability. More
money is available at a lower interest rate for the brokers who are doing business with
borrowed money. Availability of cheap fund encourages speculation and rise in the
prices of shares. The current bank rate of RBI is 6 per cent. The interest rates are
given as under
Table 1.3

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 3.25 3.25 3.34 3.61 3.75 3.75
2009 4.05 4.00 3.55 3.39 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25
2008 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 5.24
2007 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
* The table above displays the monthly average.
Graph 1.3
(6) Budget: The budget draft provides an elaborate account of the government revenues
and expenditures. A deficit budget may lead to high rate of inflation and adversely
affect the cost of production. Surplus budget may result in deflation. Hence, balanced
budget is highly favorable to the stock market.
(7) The Tax Structure: Every year in March, the business community eagerly awaits the
Government’s announcement regarding the tax policy. Concessions and incentives
given to a certain industry encourage investment in that particular industry. Tax
relief’s given to savings encourage savings. The Minimum Alternative Tax (MAT)
levied by the Finance Minister in 1996 adversely affected the stock market. Ten years
of tax holiday for all industries to be set up in the northeast is provided in the 1999
budget. The type of tax exemption has impact on the profitability of the industries.

(8) The Balance of Payment: The balance of payment is the record of a country’s
money receipts from and payment abroad. The industries involved in the export and
import are considerably affected by the changes in foreign exchange rate. The
volatility of the foreign exchange rate affects the investment of the foreign
institutional investors in the Indian stock market. A favorable balance of payment
renders a positive effect on the stock market.
(9) Monsoon and Agriculture: Agriculture is directly and indirectly linked with
industries. For example, Sugar, Cotton, Textile and Food processing industries
depend upon agriculture for raw material. Fertilizer and insecticide industries are
supplying inputs to the agriculture. A good monsoon leads to higher demand for input
and result in bumper crop. This would lead to enthusiasm in the stock market. When
the monsoon is bad, agriculture and hydel power production would suffer. They cast a
shadow on the share market.
(10) Infrastructure Facilities: Infrastructure facilities are essential for the growth of
industrial and agricultural sector. A wide net work of communication system of the
economy. Regular supply of power without any power cut would boost the
production. Banking and financial sectors also should be enough to provide adequate
support to the industry and agriculture. Good infrastructure facilities affect the stock
market favorably. In India even though infrastructure facilities have been developed,
still they are not adequate. The government has liberalized its policy regarding the
communication, transport and power sector.
(11) Economic Forecasting: To estimate the stock price changes, an analyst has to
analyze the macro economic environment and the factors peculiar to the industry he is
concerned with. The economic activities affect the corporate profits, investors, and

attitude and share prices. Fall in GDP or slackness in the economic growth may lead
to fall in corporate profit and consequently the security prices. For the purpose of
economic analysis, an analyst should be familiar with the forecasting techniques. He
should know the advantages and disadvantages of various techniques. The common
techniques used are analysis of key economic indicators, diffusion index, surveys and
econometric model building. These techniques help him to decide the right time to
invest and the type of security he has to purchase i.e. stocks or bonds or some
combination of stocks and bonds.
(12) Economic Indicators: the economic indicators are factors that indicate the
present status, progress or slow down of the economy. They are capital investment,
business profits, money supply, GNP, interest rate, unemployment rate, etc. the
economic indicators are grouped into leading, coincidental and lagging indicators.
The indicators are selected on the following criteria – Economic Significance
- Statistical adequacy
- Timing
- Conformity
These indicators helped the investor to predict the path of the economy. The popular leading
indicators are fiscal policy, monetary policy, productivity, rainfall, capital investment and stock
indices. The fiscal policy shows what the government aims at and the fiscal deficit or surplus has
an effect on the economy. The tax policy of the government may act as a boost or a deterrent to
the industry. The cheap money or the tight money policy adopted by the monetary authorities
also indicates the future effects of the policy on the industry. The rise of BSE Sensex and NSE
Nifty shows that the economy is heading for recovery.
(13) Diffusion Index: Diffusion index is a composite or consensus index. The

diffusion index consists of leading, coincidental and lagging indicators. This type of

index has been constructed by National Bureau of Economic Research in USA. But
the diffusion index is complex in nature to calculate and the irregular movements that
occur in individual indicators be completely eliminated.
2.3 INDUSTRY ANALYSIS

An industry is a group of firms that have similar technological structure of production and
produce similar products. For the convenience of the investors, the broad classification of the
industry is given in financial dailies and magazines. Companies are distinctly classified to give a
clear picture about their manufacturing process and products. The table gives the industry wise
classification given in Reserve Bank of India Bulletin.
Table 1.4 Industry Groups
Sr. No. Industries

1 Food Products
2 Beverages, Tobacco and Tobacco Products
3 Textiles
4 Wood and Wood Products
5 Leather and Leather Products
6 Rubber and Plastic Products
7 Chemical and Chemical products
8 Non-metallic mineral Products
9 Basic metals, Alloys and Metal Products
10 Machinery and Machine Tools
11 Transport equipment and Parts
12 Other Miscellaneous manufacturing Industries.
Table shows that each industry is different from the other. Textile industry is entirely different
from steel industry or the power industry in its product and process.
These industries can be classified on the basis of the business cycle i.e. classified according to
their reactions to the different phases of the business cycle. They are classified into
- Growth,

- Cyclical,
- Defensive and
- Cyclical Growth Industry
(1) GROWTH INDUSTRY: The growth industries have special features of high rate of
earnings and growth in expansion, independent of the business cycle. The expansion of the
industry mainly depends on the technological change. For instance, in spite of the recession in
the Indian economy in 1997-98, there was a spray in the growth of information technology
industry.
(2) CYCLICAL INDUSTRY: The growth and the profitability of the industry move along with
business cycle. During the boom period they enjoy growth and during depression they suffer a
set back. For example, the white goods like fridge, washing machine and kitchen range products
command a good market in the boom period and demand for them slackness during the
recession.
(3) DEFENSIVE INDUSTRY: Defensive industry defies the movement of the business cycle.
For example, food and shelter are the basic requirements of humanity. The food industry
withstands recession and depression. The stocks of the defensive industries can be held by the
investor for income earning purpose. They expand and earn income in the depression period too,
under the government’s umbrella of protection and are counter-cyclical in nature.
(4) CYCLICAL GROWTH INDUSTRY: This is a new type of industry that is cyclical and at
the same time growing. For example, the automobile industry experiences periods of stagnation,
decline but they grow tremendously. The changes in technology and introduction of new models
help the automobile industry to resume their growth path.
INDUSTRY LIFE CYCLE – The industry life cycle theory is generally attributed to
Julius Grodensky. The life cycle of the industry is separated into four well defined stages such as
–
- Pioneering stage

- Rapid Growth Stage
- Maturity and Stabilization Stage
- Declining Stage
Pioneering Stage: The prospective demand for the product is promising in this stage and
technology of the product is low. The demand for the product attracts many producers to produce
the particular product. There would be severe competition and only fittest companies survive this
stage. The producers try to develop brand name, differentiate the product and create a product
image. This would lead to non-price competition too. The severe competition often leads to the
change of position of the firms in terms of market shares and profit. In this situation, it is difficult
to select companies for investment because the survival rate is unknown.
Rapid Growth Stage: This stage starts with appearance of surviving firms from the pioneering
stage. The companies that have withstood the competition grow strongly in market share and
financial performance. The technology of the production would have improved resulting in low
cost of production and good quality products. The companies have stable growth rate in this
stage and they declare dividend to the shareholders. It is advisable to invest in the shares of these
companies. The power industry, pharmaceutical industry and communication industry are giving
dividend to the shareholders. In this stage the growth rate is more than the industry’s average
growth rate.

Maturity and Stabilization Stage: In the stabilization stage, the growth rate tends to moderate
and the rate of growth would be more or less equal to the industrial growth rate or the gross
domestic product growth rate. Symptoms of obsolescence may appear in the technology. To keep
going, technological innovations in the production process and products should be introduced.
The investors have to closely monitor the events that take place in the maturity stage of the
industry.
Declining Stage: in this stage, demand for the particular product and earnings of the companies
in the industry decline. Now-a-days very few consumers demand black and white TV.
Innovation of new products and changes in consumer preferences lead to this stage. The specific
feature of the declining stage is that even in the boom period; the growth of the industry would
be low and decline at a higher rate during the recession. It is better to avoid investing in shares of
the low growth industry even in the boom period. Investment in the shares of these types of
companies leads to erosion of capital.
Factors to be considered: - Apart from industry life cycle analysis, the investor has to
analyze some other factors too. They are as listed below
 Growth of the industry

 Cost structure and profitability
 Nature of the product
 Nature of the competition
 Government policy
 Labor
 Research and Development
2.4 COMPANY ANALYSIS

In the company analysis the investor assimilates the several bits of information related to the
company and evaluates the present and future values of the stock. The risk and return associated
with the purchase of the stock is analyzed to take better investment decisions. The valuation

process depends upon the investors’ ability to elicit information from the relationship and inter-
relationship among the company related variables. The present and future values are affected by
a number of factors and it’s given in the figure -
THE COMPETITIVE EDGE OF THE COMPANY: Major industries in India are

composed of hundreds of individual companies. In the information technology industry even
though the number of companies is large, few companies like Tata Infotech, Stayam Computers,
Infosys, NIIT etc., control the major market share. Like-wise in all industries, some companies
rise to the position of eminence and dominance. The large companies are successful in meeting
the competition. Once the companies obtain the leadership position in the market, they seldom
lose it. Over the time they would have proved their ability to withstand competition and to have a
sizeable share in the market. The competitiveness of the company can be studied with the help of
 The market share

 The growth of annual sales
 The stability of annual sales

The Market Share: The market share of the annual sales helps to determine a company’s
relative competitive position within the industry. If the share is high, the company would be able
to meet the competition successfully. While analyzing the market share, the size of the company
also should be considered because the smaller companies may find it difficult to survive in the
future. The leading companies of today’s market will continue to lead at least in the near future.
The companies in the market should be compared with like product groups otherwise, the results
will be misleading.
Growth Sales: The Company may be misleading company, but if the growth in sales is
comparatively lower than another company, it indicates the possibility of the company losing the
leadership. The rapid growth in sales would keep the shareholder in a better position than one
with the stagnant growth rate. The company of large size with inadequate growth in sales will
not be preferred by the investors. Growth in sales is usually followed by the growth in profits.
Investor generally prefers size and growth in sales because the larger size companies may be able
to withstand the business cycle rather than the company of smaller size.
The growth in sales of the company is analyzed both in rupees terms and in physical terms.
Physical term is very essential because it shows the growth in real terms. The rupee term is
affected by the inflation. Companies with diversified sales are compared in rupee terms and
percentage of growth over time.
Stability of Sales: If a firm has stable sales revenue, other things being remaining constant,
will have more stable earnings. Wide variation in sales leads to variations in capacity utilization,
financial planning and dividend. Periodically all the financial newspaper provide information
about the market share of different companies in an industry. The fall in the market share
indicates the declining trend of the company, even if the sales are stable in absolute terms.
Hence, the stability of sales also should be compared with its market share and competitors’
market share.

Sales Forecast: the company may be in a superior position commanding more sales both in
monetary terms and physical terms but the investor should have an idea whether it will continue
in future or not. For this purpose, forecast of sales has to be done. Investor can forecast the sales
in different ways.
 The investor can fit a trend line either linear or non-linear whichever is suitable.
 Historical percentage of company sales to the industry sales can be analyzed. Even
simple least square technique could be used to find out the function C = f(I) i.e. C =
Company sales, I = Industry sales.
 The sales growth can be compared with the macro-economic variables like gross
domestic product, per capita income and population growth.
 The demand for substitutes and competitors’ product also should be analyzed using
square techniques.
EARNINGS OF THE COMPANY: Sales alone do not increase the earnings but the
costs and expenses of the company also influence the earnings of the company. Further, earnings
do not always increase with the increase in sales. The company’s sales might have increase but
its earnings per share may decline due to the rise in costs. The rate of change in earnings differs
from the rate of change in sales. Sales may increase by 10% in a company but earnings per share
may increase only by 5%. Even though there is relationship between sales and earnings, it is not
a perfect one. Sometimes, the volume of sales may decline but the earnings may decline but the
earnings may improve due to the rise in the unit price of the article. Hence, the investor should
not depend only on sales, but should analyze the earnings of the company.
The income for the company is generated through operating sources and non-operating sources.
The sources of operating income vary from industry to industry. For the service industry no
tangible products is involved and income is generated through sales of services. Take the case of
commercial bank, its income is the interest on loans and investments. Interest income is referred
to operating income. But in the case of industries producing tangible goods earnings arise from
the sale of goods.

The non-operating income may be generated from interest from bonds, rentals from lease,
dividends from securities and sales of assets. The investor should analyze the income source
diligently whether it is from the sale of assets or it is from investments. Sometimes earnings per
share may seem to be attractive in a particular year but in actual case the revenue generated
through sales may be comparatively lower than in the previous year. The earnings might have
been generated through the sale of assets. The investor should be aware that income of the
company may vary due to the following reasons.
 Change in sales
 Change in costs
 Depreciation method adopted
 Depletion of resources in the case of oil, mining, forest products, gas etc.
 Inventory accounting method
 Replacement cost of inventories
 Wages, salaries and fringe benefits
 Income taxes and other taxes
CAPITAL STRUCTURE: The equity holders’ return can be increased manifold with the
help of financial leverage, i.e. using debt financing along with equity financing. The effect of
financial leverage is measured by computing leverage ratios. The debt ratio indicates the position
of the long term and short term debts in the company finance. The debt may be in the form of
debentures and term loans from financial institutions
Preference Shares: the preference shares induct some degree of leverage in finance. The
leverage effect of the preference shares is comparatively lesser than the debt because the
preference share dividends are not tax deductible. If the portion of preference share in the capital
is larger, it tends to create instability in the earnings of the equity shares when the earnings of the
company fluctuate. Sometime the preference share may be convertible preference share; in that
case it dilutes the earnings per share. So the investor should look into the preference share
component of the capital structure.

Debt: Long term debt is an important source of finance. It has the specific benefit of low cost of
capital because interest is tax deductible. The leverage effect of debt is highly advantageous to
the equity holders. During the boom period the positive side of the leverage effect increases the
earnings of the share holders. At the same time, during recession the leverage effect inducts
instability in earnings per share and can lead to bankruptcy. Hence, it is important to limit the
debt component of the capital to a reasonable level. The limit depends on the firm’s earning
capacity and its fixed assets.
(i) Earnings limit of debt: The earnings determine whether the debt is excessive or not.
The earnings indicate the probability of insolvency. The ratio used to find out the
limit of the debts is the interest coverage ratio i.e. the ratio of net income after taxes
to interest paid on debt. The ratio shows the firm’s ability to pay the interest charges,
the number of time interest is covered by earnings.
(ii) Asset limit to debt: This asset limit is found out by fixed assets to debt ratio. The
financing of fixed assets by the debt should be within a reasonable limit. For
industrial units the recommended ratio level is below 0.5.
MANAGEMENT: Good and capable management generates profit to the investors. The
management of the firm should efficiently plan, organize, actuate and control the activities of the
company. The basic objective of management is to attain the stated objectives of company for
the good of the equity holders, the public and the employees. If the objectives of the company
are achieved, investors will have a profit. A management that ignores profit does more harm to
the investors than one that over emphasis it.
The good management depends on the qualities of the manager. Koontz and O’Donnell suggest
the following as special traits of an able manager:
- Ability to get along with people

- Leadership
- Analytical competence
- Industry

- Judgment
- Ability to get things done
Since the traits are difficult to measure, managerial performance is evaluated against setting and
accomplishing verifiable objectives. If the investor needs greater proof of excellence of
management, he has to analyze management ability. The analysis can be carried out on the
following ways:
(a) The background of managerial personnel contributes much to the management. The
manager’s age, educational background, advancement within the company, levels of
responsibility achieved and the activities in the social sphere can be studied.
(b) The record of management over the past years has to be reviewed. For several companies
what the top management has done during its tenure in office is given in the financial
weeklies and monthlies along with critical comments. This gives an insight into the
ability of the top management.
(c) The management’ skill to have share ahead of others is a proof of managerial success.
The investor can rely on this type of management and choose the stock.
(d) The next criterion the investor should analyze is the company’s strength to expand. A
firm may expand from within and diversify products in the known lines. Sometimes it
may acquire an other company to expand its market. The horizontal or vertical expansion
of the production is a healthy sign of an efficient management.
(e) The management’s ability to maintain efficient production by proper utilization of plant
and machinery has to be analyzed. Suitable inventory planning and scheduling have to be
drafted and worked out by the management.
(f) The management’s capacity to finance the company adequately has to be studied.
Accomplishing the financial requirement is a direct reflection of managerial ability. The
management should adopt a realistic dividend policy in relation to earnings. A realistic
dividend policy boosts the image of the company’s stock in the market.
(g) The functional ability of the management to work with employees and union is another
area of concern. Unions pose a threat to the smooth functioning of the firm. In this
context the management should be able to maintain harmonious relationship with the
employees and unions.

(h) The management’s adaptability to scientific management and quality control techniques
should be analyzed. The management should be able to give due weightage to maintain
technical competence.
After analyzing the above mentioned factors, the investor should select companies that possess
excellent management and maintain the competitive position of the company in the market. The
investor should also remember that the individual traits of a single manager alone cannot make
the company profitable and there should be a strong management system to do so.
OPERATING EFFICINCY: The operating efficiency of a company directly affects the

earnings of a company. An expanding company that maintains high operating efficiency with a
low break-even point earns more than the company with high break-even point. If the firm has
stable operating ratio, the revenues also would be stable. Efficient use of fixed assets with raw
materials, labor and management would lead to more income from sales. This leads to internal
fund generation for the expansion of the firm. A growing company should have low operating
ratio to meet the growing demand for its product.

LITERATURE REVIEW &
REASEARCH METHODOLOGY
3.1LITERATURE REVIEW
According to Punithavathy Pandian (Security & Portfolio management, Edition 7), Fundamental
analysis is a logical and systematic approach to estimate the future dividends and share prices.
The intrinsic value of an equity share depends on a multitude of factors. The earnings of the
company, the growth rate and the risk exposure of the company have a direct bearing on the
price of the share. These factors in turn rely on the host of other factors like economic
environment in which they function, the industry they belong to, and finally companies’ own
performance. The fundamental school of thought appraised the intrinsic value of shares through
- Economic Analysis
- Industry Analysis
- Company Analysis
A study done by the students of Alliance Business School project report presented by Group – 4
in Post Graduation Program Business Management course, they have done analysis for the
cement sector and they arrived at the conclusion that India's cement dispatches growth has been
improving from 5.9% in the quarter ended June 2008 to 6.3% in the quarter ended September
2008, which has further accelerated to 8.3% in the quarter ended December 2008 while the
industry has shown a 11% YoY growth. Throughout the financial year 2007-2008
and the beginning of the current year the cement producers were
constrained with their inability to raise price due to excessive government
intervention. The period then witnessed sky rocketing commodity prices,
which squeezed the operating margins of the cement manufacturers.
However the fall in input prices like the prices of coal and other raw
materials from their peaks during the recent past would help the industry in
maintaining their margins at least till the end of the next financial year when
the supply is expected to exceed demand. After growing by over 10 per cent

in the last two years, cement demand has slowed down to 9 per cent now.
This decline stems from –
• A sharp slowdown in real estate
• Lack of capital investment in infrastructure sectors and
• A broad economic downturn across the world.
Apart from this, the data are collected from official site of the company and in the report, ratio
analysis has beed taken for the analysis part.
3.2 RESEARCH METHODLOGY

Research methodology is a way to systematically solve the research problem. The research
methodology using for find out the solution of the research problem is analytical research
methodology and some extend descriptive research methodology.
Problem Statement: “A Fundamental Analysis of Cement Sector”
Research Objective:
 To study the emerging trend of Cement sector

 To know the emerging technologies in the Cement sector
 To study the financial performance of Cement sector

Research Design:
Descriptive Research-
Descriptive study is used to study the situation. This study helps to describe the situation. A
detail descriptive about present and past situation can be found out by the descriptive study. In
this involves the analysis of the situation using the secondary data.
Data Collection Method:

Secondary Method-
This report is based on the secondary data, which is collected through internet and various
magazine or news paper, for evaluation purpose the data collected through different companies
website which are highly professionals sites for the users.
Limitation:
1. As the data available has been taken form the secondary sources (like internet). It is not sure
that collected data are accurate and complete.
2. Today stock market is running on the investor’s perception so the conclusion derived on the
basis if fundamental analysis would not be viable in the long run.

CURRENT SCENARIO OF CEMENT SECTOR
4.1 ECONOMY ANALYSIS
Outlook 2010-11
There is a growing consensus across the world that the worst of the financial crisis is over.
Economies globally have started to stabilise and recover either from the recession or severe
slowdown in the past 2 years. After having contracted in 2009, the global economy is expected to
expand by 3.9 per cent this year (International Monetary Fund, January 2010). The Indian
economy has displayed remarkable resilience over the course of the downturn and is expected to
have grown at a rate of 7.2 per cent in 2009-10 (Central Statistical Organisation, February 2010).
Since 2008-09, the government had engineered a substantial increase in demand through fiscal
measures to compensate for the decline in private and export demand. The focus has now shifted
to private consumption and investment, which are being viewed as key drivers of growth in
2010-11.
A timely and orderly exit from the fiscal stimulus is crucial to maintain the credibility of
government finances, and thereby, the potential growth in coming years. If the fiscal stimulus
has to generate net long-term gains, and not merely end up as a transfer of expenditure from the
private sector to the government, a realistic fiscal tightening plan is essential. This would be the
most important economic challenge facing India over the next few years. The budget of 2010-11
made some progress on this account by partially rolling back the reductions in indirect taxes. The
real boost to sustainable fiscal correction, however, would have come from expenditure reforms,
which are largely missing in the budget, with government expenditure expected to rise by around
8.5 per cent in 2010-11 (over revised estimate 2009- 10) over the exceptionally high growth of
15.5 per cent in the previous year. Against this backdrop, we discuss the outlook for the Indian
economy for 2010-11.

Table 1.5
Indian economy in 2009-10
2010-11
Real GDP factor cost (y-o-y percentage growth) 8.0
Supply-side
Agriculture 5.5
Industry 8.6
Services 8.4
- Hotels, transport and communications 9.1
- Finance 10.5
- Community and social 5.0
Demand-side
Private final consumption expenditure 6.5
Government final consumption expenditure 5.7
Gross fixed capital formation 12.5
Other macroeconomic variables
WPI inflation (average) 6.5-7.0
Interest rate (10-year G-sec March-end) 8.3-8.5
Exchange rate (Rs-$ March end) 43.5-44.0
Fiscal deficit (% of GDP) 5.6
4.2 INDUSTRY ANALYSIS OF CEMENT SECTOR

Industry
The history of the cement industry in India dates back to the 1889 when a Kolkata-based
company started manufacturing cement from Argillaceous. But the industry started getting the
organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in
Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I
gave the first initial thrust to the cement industry in India and the industry started growing at a
fast rate in terms of production, manufacturing units, and installed capacity. This stage was
referred to as the Nascent Stage of Indian Cement Industry. In 1927, Concrete Association of
India was set up to create public awareness on the utility of cement as well as to propagate

cement consumption.
The cement industry in India saw the price and distribution control system in the year 1956,
established to ensure fair price model for consumers as well as manufacturers. Later in 1977,
government authorized new manufacturing units (as well as existing units going for capacity
enhancement) to put a higher price tag for their products. A couple of year’s later; government
introduced a three-tier pricing system with different pricing on cement produced in high, medium
and low cost plants.
Cement industry, in any country, plays a major role in the growth of the nation. Cement industry
in India was under full control and supervision of the government. However, it got relief at a
large extent after the economic reform. But government interference, especially in the pricing, is
still evident in India. In spite of being the second largest cement producer in the world, India
falls in the list of lowest per capita consumption of cement with 125 kg. The reason behind this is
the poor rural people who mostly live in mud huts and cannot afford to have the commodity.
Despite the fact, the demand and supply of cement in India has grown up. In a fast developing
economy like India, there is always large possibility of expansion of cement industry.
India, being the second largest cement producer in the world after China with a total capacity of
151.2 Million Tones (MT), has got a huge cement industry. With the government of India giving
boost to various infrastructure projects, housing facilities and road networks, the cement industry
in India is currently growing at an enviable pace. More growth in the Indian cement industry is
expected in the coming years. It is also predicted that the cement production in India would rise
to 236.16 MT in FY11. It’s also expected to rise to 262.61 MT in FY12.
The cement industry in India is dominated by around 20 companies, which account for almost
70% of the total cement production in India. In the present year, the Indian cement companies
have produced 11 MT cement during April-September 2009. It took the total cement production
in FY09 to 231 MT.
Cement Production and Growth

Domestic demand plays a major role in the fast growth of cement industry in India. In fact the
domestic demand of cement has surpassed the economic growth rate of India. The cement
consumption is expected to rise more than 22% by 2009-10 from 2007-08. In cement
consumption, the state of Maharashtra leads the table with 12.18% consumption, followed by
Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list with 14.72% of
production, while Rajasthan remains at second position.
Graph1.6
The production of cement in India grew at a rate of 9.1% during 2006-07 against the total
production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the

production of cement in India was 101.04 MT comparing to 95.05 MT during the same period in
the previous year. During October 2009, the total cement production in India was 12.37 MT
compared to a production of 11.61 MT in the same month in the previous year. The cement
companies are also increasing their productions due to the high market demand. The cement
companies have seen a net profit growth rate of 85%. With this huge success, the cement
industry in India has contributed almost 8% to India's economic development.
Technology Up-gradation
Cement industry in India is currently going through a technological change as a lot of

upgradation and assimilation is taking place. Currently, almost 93% of the total capacity is based
entirely on the modern dry process, which is considered as more environment-friendly. Only the
rest 7% uses old wet and semi-dry process technology. There is also a huge scope of waste heat
recovery in the cement plants, which lead to reduction in the emission level and hence improves
the environment.
Major Players in Indian Cement Industry
There are a number of players prevailing in the cement industry in India. However, there are
around 20 big names that account for more than 70% of the total cement production in India. The
total installed capacity is distributed over around 129 plants, owned by 54 major companies
across the nation.
Following are some of the major names in the Indian cement industry:
Table 1.7
Company Production Installed Capacity

ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Shree 14,649 14,115
India Cements 8,434 8,810

JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Mergers and Acquisition in Cement Industry in India
• UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become
biggest cement company in India.
• World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund
and Asset Management Fund have together bought 7.5% of India Cements (ICL) at a cost
of US$ 124.91 million.
• Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim Industries
had in Shree Digvijay Cement.
• French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of US$
14.35 million.
• Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. The
company utilized various open market transactions to increase its stakes. It invested US$
1.8 billion for that.
Recent Investments in the Indian Cement Industry
• In a recent announcement, the second largest cement company in South India, Dalmia
Cement declared that it's going to invest more than US$ 652.6 million in the next 2-3
years to add 10 MT capacity.
• Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total
capacity of yearly 20 MT in the next 5 years. For this, the company will invest US$ 2.1
billion.
• India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil
Nadu at a cost of US$ 104 billion.
• Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement
plant in Maharashtra. It will invest US$ 463.2 million for that.

• Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development
Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$
221.36 million.
• Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1 MT
cement plant in Orissa.
UNION BUDGET 2010-11
Cement - Negative Effect

Roll back of excise duty to have negative impact on Cement sector
The Union Budget 2010-11 is expected to have an overall negative impact on the cement sector
due to the increase in excise duty by 2 per cent. Players will find it difficult to pass on the
additional burden of the increased excise duty due to falling operating rates on account of
significant capacity additions. However, measures to spur housing and infrastructure investments
will have a marginally positive impact on demand for cement.
The specifics rates of duty applicable to Portland cement and cement clinker to be adjusted
upwards proportionate to the across-the-board increase in the excise duty from 8% to 10%.
Levy of Rs 50 per ton cess on imported coal.
Consequent to enhancement in the standard rate of duty from 8% to 10%, the specific rates of
duty on cement and cement clinker is also being revised upwards as follows:
Negative
The increase in rates of duty applicable to Portland cement and cement clinker will result in
increase in cement prices. The cess on imported coal is likely to increase input costs of cement
companies using imported coal.
KEY POINTS:

Supply The demand-supply situation is tightly balanced with the latter being marginally higher
than the former.
Demand Housing sector acts as the principal growth driver for cement. However, in recent
times, industrial and infrastructure sector have also emerged as demand drivers for
cement.
Barriers to entry High capital costs and long gestation periods. Access to limestone reserves (principal
raw material for the manufacture of cement) also acts as a significant entry barrier.
Bargaining Licensing of coal and limestone reserves, supply of power from the state grid and
power of availability of railways for transport are all controlled by a single entity, which is the
suppliers government. However, nowadays producers are relying more on captive power, but
the shortage of coal and volatile fuel prices remain a concern.
Bargaining Cement is a commodity business and sales volumes mostly depend upon the
power of distribution reach of the company. However, things are changing and few brands have
customers started commanding a premium on account of better quality perception.
Competition Due to large number of players in the industry and very little brand differentiation to
speak of, the competition is intense with players resorting to expanding reach and
achieving pan India presence.
SWOT ANALYSIS
A) Strengths:
Second largest in the world in terms of capacity: In India there are approximately 124 large
and 300 mini plants with installed capacity of 200 million tonnes.
Low cost of production: due to the easy availability of raw materials and cheap labour.

b) Weakness:
Effect of global recession on real estate: The real estate prices are stabilizing and facing steady
slowdown especially in metros. There are approximately one hundred thousand completed flats
without occupancy in Bangalore. There has been drastic reduction in property prices due to
reduced demand and increased supply.
Demand-Supply gap, overcapacity: The capacity additions distort the demand-supply
equilibrium in the industry thereby affecting profitability.
Increasing cost of production due to increase in coal prices.
High Interest rates on housing: The re-pricing of the interest rates in the last four years from
7% to 12% has resulted in the slowdown in residential property market.
c) Opportunities:
Strong growth of economy in the long run: Indian economy has been one of the stars of
global economics in the recent years, growing 9.2% in 2007 and 9.6% in 2006. However, India is
facing tough economic times in 2008.
Increase in infrastructure projects: Infrastructure accounts for 35% of cement consumption in
India. And with increase in government focus on infrastructure spending, such as roads,
highways and airports, the cement demand is likely to grow in future. Growing middle class:
There has been increase in the purchasing power of emerging middle-class with rise in salaries
and wages, which results in rising demand for better quality of life that further necessitates
infrastructure development and hence increases the demand for cement.
Technological changes: The Cement industry has made tremendous strides in technological up
gradation and assimilation of latest technology. At present ninety three per cent of the total
capacity in the industry is based on modern and environment-friendly dry process technology
and only seven per cent of the capacity is based on old wet and semi-dry process technology. The
induction of advanced technology has helped the industry immensely to conserve energy and
fuel and to save materials substantially and hence reduce the cost of production.
d) Threats:

Imports from Pakistan affecting markets in Northern India: In 2007, 130000 tonnes in 2008,
173000 Metric tones of cement was exported to India. This was done to keep the price of cement
under check.
Excess overcapacity can hurt margins, as well as prices.
POTER’S FIVE FORCES MODEL

4.3COMPANY ANALYSIS OF CEMENT SECTOR
ACC LIMITED
ACC was formed in 1936 when ten existing cement companies came together under one
umbrella in a historic merger - the country's first notable merger at a time when the term mergers
and acquisitions was not even coined. The history of ACC spans a wide canvas beginning with
the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him who
founded the Indian cement industry. Their efforts to face competition for survival in a small but
aggressive market mingled with the stirring of a country's nationalist pride that touched all walks
of life - including trade, commerce and business.
The first success came in a move towards cooperation in the country's young cement industry
and culminated in the historic merger of ten companies to form a cement giant. These companies
belonged to four prominent business groups - Tatas, Khataus, Killick Nixon and F E Dinshaw
groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man
recognized as the founder of ACC, died in January 1936; just months before his dream could be
realized.

F. E. Dinshaw – the founder of ACC
ACC stands out as the most unique and successful merger in Indian business history, in which
the distinct identities of the constituent companies were melded into a new cohesive organization
- one that has survived and retained its position of leadership in industry. In a sense, the
formation of ACC represents a quest for the synergy of good business practices, values and
shared objectives. The use of the plural in ACC's original name, The Associated Cement
Companies Limited, itself indicated the company's origins from a merger. Many years later,
some stockbrokers in the country's leading stock exchanges continued to refer to this company
simply as 'The Merger'.
ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations
are spread throughout the country with 16 modern cement factories, more than 40 Ready mix
concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000
persons and a countrywide distribution network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important benchmark for the
cement industry in many areas of cement and concrete technology. ACC has a unique track
record of innovative research, product development and specialized consultancy services. The
company's various manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry.
ACC has rich experience in mining, being the largest user of limestone. As the largest cement
producer in India, it is one of the biggest customers of the domestic coal industry, of Indian
Railways, and a considerable user of the country’s road transport network services for inward
and outward movement of materials and products.

Among the first companies in India to include commitment to environmental protection as one of
its corporate objectives, the company installed sophisticated pollution control equipment as far
back as 1966, long before pollution control laws came into existence. Today each of its cement
plants has state-of-the art pollution control equipment and devices.
ACC plants, mines and townships visibly demonstrate successful endeavours in quarry
rehabilitation, water management techniques and ‘greening’ activities. The company actively
promotes the use of alternative fuels and raw materials and offers total solutions for waste
management including testing, suggestions for reuse, recycling and co-processing.
ACC has taken purposeful steps in knowledge building. We run two institutes that offer
professional technical courses for engineering graduates and diploma holders which are relevant
to manufacturing sectors such as cement. The main beneficiaries are youth from remote and
backward areas of the country.
ACC has made significant contributions to the nation building process by way of quality
products, services and sharing expertise. Its commitment to sustainable development, its high
ethical standards in business dealings and its on-going efforts in community welfare programmes
have won it acclaim as a responsible corporate citizen. ACC’s brand name is synonymous with
cement and enjoys a high level of equity in the Indian market. It is the only cement company that
figures in the list of Consumer SuperBrands of India.
AMBUJA CEMENTS LIMITED

Ambuja Cements was set up in 1986. In the last decade the company has grown tenfold. The
total cement capacity of the company is 18.5 million tonnes.
Its plants are some of the most efficient in the world. With environment protection measures that
are on par with the finest in the developed world.
The company's most distinctive attribute, however, is its approach to the business. Ambuja
follows a unique homegrown philosophy of giving people the authority to set their own targets,
and the freedom to achieve their goals. This simple vision has created an environment where
there are no limits to excellence, no limits to efficiency. And has proved to be a powerful engine
of growth for the company.
As a result, Ambuja is the most profitable cement company in India, and one of the lowest cost
producer of cement in the world.
Achievments
In essence, cement is a simple business. Unlike other industries it does not suffer rapid
technological obsolescence or shifting consumer trends. Therefore, it constantly attracts new
investments. Which results in surplus capacity. This means only the very efficient players can
prosper.

Our people recognize this. And their efforts to constantly raise efficiency has not only raised the
bar at Ambuja. But across the industry as well.
Environment protection measure that conform to the worlds best.
The pollution levels at all our cement plants are even lower than the rigorous Swiss standards of
100 mg/NM3. The air is so clean that a rose garden flourishes right next to the main plant.
Benchmarking quality standards for the industry.
Ambuja has received the highest quality award - the National Quality Award. The only cement
company to do so. Its also the first to receive the ISO 9002 quality certification.
Reinventing cement transportation.
Almost 90% of cement in India travels by rail or road. And in bags. Our people realized that the
only way to speed up transportation was a completely different approach. The result: a bulk
transporting system via the sea. Making us the first company to introduce the concept of bulk
cement movement by sea in India.
People
The kiln at our Ambujanagar plant is 20 years old. Yet it keeps increasing productivity year after
year.
Many would consider this an impossible task. Yet, our people continue to achieve ever higher
efficiency and productivity, not just at Ambujanagar, but at all our other plants.
In Himachal, for instance, they've managed to push up production and bring down power costs.
At a plant that was already functioning above capacity. At the same plant they've managed to cut
stabilizing time (a critical task in a cement plant) from upto 18 months to a mere 3 months.
At our cement shipping terminals in Gujarat, with a few minor modifications, they've succeeded
in exporting clinker, and importing higher quality and far cheaper coal and furnace oil for our
captive power plants.

At our Mumbai terminal meanwhile, they've increased the handling capacity to 100,000 tonnes
as against the terminals stated capacity of 60, 000 tonnes. With no additional capital expenditure.
In the last decade they've managed to keep our power bills to virtually the same amounts they
were in 1989.
All of which proves once again, that an asset is worth only as much as the people who use it.
Infrastructure
Over 40% of the production cost of cement is power.
It quickly became clear to us that if we were to run a profitable company, wed need to keep
power costs to the minimum. So we focused our efforts on improving efficiency at our kilns to
get more output for less power.
Next we set up a captive power plant at a substantially lower cost than the national grid. We
sourced a cheaper and higher quality coal from South Africa. And a better furnace oil from the
Middle East.
The result is that today were in a position to sell our excess power to the local state government.
Our sea-borne bulk cement transportation facilities meanwhile has brought many coastal
markets within the easy reach. It has also made Ambuja India's largest exporter of cement
consistently for the last five years.
ULTRATECH CEMENT
The Engineer’s Choice

UltraTech Cement Limited has an annual capacity of 23.1 million tonnes. It manufactures and
markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana
Cement. It also manufactures ready mix concrete (RMC).
UltraTech Cement Limited has five integrated plants, six grinding units and three terminals —
two in India and one in Sri Lanka.
UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span
countries around the Indian Ocean, Africa, Europe and the Middle East.
UltraTech’s subsidiaries are Dakshin Cement Limited, UltraTech Cement Lanka (Pvt.) Ltd. and
UltraTech Cement Middle East Investments Limited
All the plants of UltraTech are ISO 14001 Environment Management Systems certified and
adhere to OHSAS 18001 standards. Clean technologies and processes that combine economic
progress and sustainable environment have been adopted at UltraTech's plants at Awarpur and
Ratnagiri in Maharashtra; Kovaya, Jafrabad and Magdalla in Gujarat; Hirmi in Chhattisgarh;
Arakkonam in Tamil Nadu; Tadipatri in Andhra Pradesh; Jharsuguda in Orissa and Durgapur in
West Bengal.
Plant ISO 9001 ISO 14001 OHSAS 18001

Awarpur Cement Works
Hirmi Cement Works Under process
Jharsuguda Cement Works Under process
Gujarat Cement Works
Andhra Pradesh Cement Works
Arakkonam Cement Works Under process
Narmada Cement Company Limited

INDIA CEMENTS LIMITED
THE INDIA CEMENTS LIMITED, established in the year 1946 manufactures cement, a core
material in the construction industry. Since inception, making a humble beginning it has grown
to a multidivisional company with seven plants of overall capacity of 9 million tonnes per annum
and with a turn over of Rs.2000 cores. It is the largest manufacturer of cement in south India.
The India Cements Ltd was established in 1946 and the first plant was setup at Sankarnagar in
Tamilnadu in 1949. Since then it has grown in stature to seven plants spread over Tamilnadu and
Andhra Pradesh. The capacities as on March 2002 have increased multifold to 9 million tons per
annum.
Its family of 5500 dedicated members consists of 1200 Executives committed to the growth of
the company and the industry at large. Its task comprises the functions in Production, Quality
Assurance, Engineering, Marketing Materials, Finance, Secretarial, Personnel, HRD,
Administration, Legal Affairs, Safety, Public Relations, Projects, R&D, Information Systems
etc., headed by MBA's, Engineers, Cost Accountants, Chartered Accountants, IT Specialists and
HR/IR Professionals.
Their Core marketing area is South India and South Maharastra upto Mumbai.
Company Highlights
• The Company is the largest producer of cement in South India.

• The Company's plants are well spread with three in Tamilnadu and four in Andhra
Pradesh which cater to all major markets in South India and Maharashtra.
• The Company is the market leader with a market share of 28% in the South. It aims to
achieve a 35% market share in the near future. The Company has access to huge

limestone resources and plans to expand capacity by de-bottlenecking and optimisation of
existing plants as well as by acquisitions.
• The Company has a strong distribution network with over 10,000 stockists of whom 25%
are dedicated.
• The Company has well established brands- Sankar Super Power, Coromandel Super
Power and Raasi Super Power.
• Regional offices in all southern states and Maharasthra offices/representative in every
district.
• Technical cell to cater to all your queries/doubts tech.cell@indiacements.co.in
The Founder:
Shri Sankaralinga Iyer was a pioneer of heavy industry in the South. Primarily a banker, he
ventured into the field of industry with a rare devotion and confidence with the prime objective
of developing major industries in the state. With his banking experience and interest in exploring
the mineral potential of South India, he went ahead boldly with his scheme of building a cement
plant in the vicinity of Thalaiyuthu, where extensive deposits of limestone were assuredly
available. Shri Sankaralinga Iyer with his energy and drive gave the cement project a realistic
form and content.
GENESIS
“There’s no stronger foundation than the one built with vision."
S.N.N.Sankaralinga
T.S.Narayanaswami
Iyer
(1911-1968)
(1901-1972)
FOUNDERS OF THE INDIA CEMENTS LTD.

Two men with vision to inspire dreams for an industrial India. Two men with the ability to
translate those dreams into reality. And the ability to build enduring relationships..... To build the
future.
In his task of establishing the enterprise, Shri Iyer was ably assisted by Shri T.S.
Narayanaswami, who is always identified with the formation and running of The India Cements
Limited. Shri T.S.Narayanswami was the catalyst who saw the project through numerous hurdles
and made it emerge as a viable and marketable proposition.
He looked beyond Cement to Aluminium production, Chemicals and Plastics and Shipping after
he had fully established the India Cements' potential for expansion. A pioneer Industrialist and
visionary, Shri T.S. Narayanswami played a dynamic role in the resurgence of industrialization
in free India.
Achievements in 2010:
 ICL Financial Services Limited (ICLFSL), the Company’s wholly owned subsidiary,
acquired 60.89% (including shares acquired under open offer) of equity share capital of
Indo Zinc Limited (IZL). Consequently, IZL became a subsidiary of ICLFSL and
ultimate subsidiary of the Company in January, 2010.
 The Corporate office of the company was shifted in February, 2010 to its own building
“Coromandel Towers” at 93, Santhome High Road, Karpagam Avenue, MRC Nagar,
Chennai 600 028.
 The Company privately placed in March, 2010 2,45,94,000 equity shares at a price of
Rs.120.20 per share (including premium of Rs.110.20 per share) to Qualified Institutional
Buyers.
 The Company’s cricket franchise “Chennai Super Kings” has won IPL III Trophy in
April 2010.
SHREE CEMENTS

Starting with 0.6 million tons per annum of cement in 1985, the capacity was upgraded to 0.76
million tons in 1993. Second plant with installed capacity of 1.24 million tons per annum was
commissioned in 1997, in record time of 18 months, raising total capacity to 2.0 MTPA. Even
during recession in the industry, it was possible for it to enhance capacity further to 2.6 MTPA
due to its strategic location and better brand image and is the largest single location plant in
North India. The companys installed capacity accounted for 15 percent of Rajasthans total
capacity in 2002-03 and 2.5 percent of Indians production in 2002-03. Cement production
increased 3.42% from 2.747 million tons in 2002-03 to 2.841 million tonnes in 2003-04.
At the end of year 2008, Shree Cement Limited has entered the big league with current overall
production capacity of 9.1 million tons. Shree Cement has evolved into one of Indias top ten
cement makers with 18% market share in North India.
Believing in the theory of self-sufficiency, Shree Cement Limited has installed its own Captive
Power Plants at Beawar & Ras with a combined capacity of 119.50 MW.
Once again, the low cost was the result of scores of initiatives across all levels within the
company. Some resulting in small savings. Some in big. But each primarily driven by the belief
that what was being done could be done better.
Shree Cement Ltd. is an energy conscious & environment friendly business organization.
Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy
decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri.
M.K.Singhi, Executive Director of the Company, is looking after all day-to-day affairs. The

company is managed by well qualified professionals with broad vision who are committed to
maintain high standards of quality & leadership to serve the customers to their fullest
satisfaction.The board consists of eminent persons with considerable professional expertise in
industry and field such as banking, law, marketing & finance & general management.
PEOPLE AS PROGRESS DRIVERS

Shree believes that what is present in the minds of people is more valuable than the assets on the
shop floor. All the company’s initiatives are directed to leverage the value of this growing asset.
TEAMWORK
Shree leverages effective team working to generate a sustainable improvement.
LEADERS AT EVERY LEVEL

Shree believes in creating leaders -not just at the organizational apex but at every level, resulting
in a strong sense of emotional ownership.
CULTURE OF INNOVATION
Shree believes that what is good can be made better -across the organization.
CUSTOMER FOCUS
Shree is committed to deliver a superior quality of cement at attractively affordable prices.
SHAREHOLDER VALUE
Shree is focused on the enhancement of value through a number of strategic and business
initiatives that generate larger and a better quality of earnings.
COMMUNITY AND ENVIRONMENT

Shree’s community concern extends from direct assistance to safe and dependable operations for
its members and the environment.
New developments

Shree Cement Limited is setting up a new green field Project at Village Ras, Tehsil Jaitaran,
District Pali of Rajasthan. The capacity of the plant is 3000 Ton Per Day of clinker production
with an approximate investment of about Rs. 300 Crores.
The company has already engaged eminent Consultant for the same and all the major orders has
been placed so as to achieve the ambitious target to commission the plant by August 2005 which
is fifteen months from the date of first order placement i.e. May, 2004.
The main plant & machineries would be supplied by KHD Humboldt Wedag AG - Germany &
GEBR Pfeiffer AG - Germany.The plant will be based on the latest Technology available and
maximum Automation would be done to keep the minimum manpower. The company is having
sufficient mining lease at Ras to cater its production requirements for the upcoming 50 years.
The Company is also expanding the power generation capacity of its Captive Power Plant to
meet the power requirement of the upcoming plant.
A dedicated project team is already working round the clock on the Project to achieve the
targeted competition by August 2005, and so far 25% of the work has been completed.
As the project site is located in proximation to the potential market, it would provide a
competitive edge logistically.
Latest technology available is being adopted to achieve maximum automation to achieve

optimum efficiency and manpower utilization.

DATA ANALYSIS & INTERPRETATION
5.1RATIO ANALYSIS
Ratio analysis is a relationship between two figure expressed mathematically. Financial. Ratio
provides numerical relationship between to relevant financial data. Financial ratios are calculated
from the balance sheet and profit and loss account. The relationship can be either expressed as a
percent or as a quotient. Ratio summaries the data for easy understanding, comparison and
interpretation. Financial ratios may be divided into six Groups. They are listed below:
 Liquidity Ratios
 Turnover Ratios
 Leverage Ratios
 Profit Margin Ratios

 Return on Investment Ratios
 Valuation Ratios
Liquidity Ratios:-
Liquidity means the ability of the firm to meet its short term obligations. Current ratio
and acid test ratio are the most popular ratios used to analyze the liquidity. The liquidity ratio
indicates the liquidity in a rough fashion and the adequacy of the working capital.
CURRENT RATIO = CURRENT ASSETS

--------------------------------
CURRENT LIABILITIES
Turnover Ratios:-
The turnover ratio shows how well the assets are used and the extent of excess inventory,
if any. These ratios are also known as activity ratios. Commonly calculated ratios are sales to
current assets, sales to fixed assets, sales to inventory, and sales to receivable. Each ratio has a
specific application. Sales to fixed assets ratio show the utilization of the fixed asset utilization.
The sale to inventory ratio reflects the inventory management. The receivable to sales gives a
view of the receivable management.
INVENTORY TURNOVER RATIO = NET SALES

------------------
INVENTORIES
DEBTORS TURNOVER RATIO = NET SALES

--------------------
RECEIVABLES
FIXED ASSETS TURNOVER RATIO = NET SALES

--------------------
FIXED ASSETS
Leverage Ratios:-
The investors are generally interested to find out the debt portion of the capital. The debt
affects the dividend payment because of the outflow of the profit in the form of interest. The

financial leverage affects the risk and return aspects of holding the shares. The total debt to
assets ratio indicates the percentage of borrowed funds in the firm assets.
DEBT – EQUITY RATIO = TOTAL DEBT

---------------------
NET WORTH
Interest Coverage Ratio

This shows how many times the operating income covers the interest payment.
INTEREST COVER RATIO = EBIT

--------------------- * 100
INTEREST
Profitability Ratios
Profitability ratio relates the firm’s profit with factors that generate the profits. The
investor is very particular in knowing net profit to sales, net profit to net worth. The profitability
ratios measure the overall efficiency of the firm.
NET PROFIT MARGIN RATIO = PROFIT AFTER TAX

------------------------------- * 100
NET SALES
This ratio indicates the net profit per rupee of sales revenue.
RETURN ON NET WORTH = PROFIT AFTER TAX

------------------------------- * 100
NET WORTH
Here, the net profit is related to the firm’s capital.
Valuation ratios
The shareholders are interested in assessing the value of the shares. The value of the
share depends on the performance of the firm and the market factors. The performance of the
firm in turn depends on a host of factors. Hence, the valuation ratio provides a comprehensive
measure of the performance of the firm itself. In the subsequent section, some of the valuation
ratios are dealt in details.

BOOK VALUE PER SHARE = EQUITY + RESERVES
----------------------------------
TOTAL NO. OF SHARES
This ratio indicates the share of equity shareholders after the company has paid all its liabilities,
creditors, debenture holders and preference shareholders. At the times of the liquidation, the
shareholder can know what remain after making all the payments. In ordinary times also it helps
the shareholder to find out his real position in the company.
DIVIDEND TO MARKET PRICE = DIVIDEND PER SHARE

---------------------------------- * 100
FACE VALUE
Dividend is the regular income received by the shareholder. The shareholder would like to know
the relationship between the market price and the dividend.
Earning Per Share: - Earnings per share are the earnings after tax dividend by the common share
outstanding.
PRICE EARNING RATIO = MARKET PRICE PER SHARE

---------------------------------------------
EARNING PER SHARE
One of the most common financial parameter used in the stock market is the price earning ratio
(P/E). It relates the share price with earning per share. Most of the news paper along with the
stock price quotations gives the P/E ratio too. The P/E ratio is the multiplying factor that the
market is willing to offer to the company’s future earnings.
7.2 Analysis of company

ACC Limited
CURRENT RATIO:-
(Rs. in crores)
Years Current Assets Current Liabilities Current Ratio
2008-2009 2443.61 3650.61 0.67

2007-2008 2867.44 3209.32 0.89
2006-2007 2307.94 2657.54 0.88
Interpretation:
Compared to three years, the Current ratio of the year 2007-2008 is 0.89 which is highest than
the year 2006-07 & 2008-09. This seems that the company had an efficient working capital
position and liquidity position in the year 2007-08 which is higher than the other two years.
Current ratio of the year 2008-09 is decreased to 0.67 which is a bad sign for the company which
says that the liquidity position is getting somewhat bad.
INVENTORY TURNOVER RATIO:-

(Rs. in crores)
Years Net Sales Inventory Turnover Times
2008-2009 8021.59 778.98 10.3
2007-2008 7229.97 793.98 9.11
2006-2007 6894.79 730.86 9.43
Interpretation:
In the year 2008-09, inventory turnover ratio is satisfactory as the turnover has been increased
from 9.11 times in the year 2007-08 to 10.3 times in the year 2008-09 which shows that the
company uses the efficient resources provided by the suppliers. The working capital
management is quite impressive
DEBTORS TURNOVER RATIO:-
(Rs. in crores)
Years Net Sales Receivables Turnover times
2008-2009 8021.59 203.7 39.38
2007-2008 7229.97 310.17 23.31
2006-2007 6894.79 289.29 23.83
Interpretation:
Company has been getting the command of the people from the beginning. Company had a
turnover of debtors in a year 2008-09 is 39.38 times. This shows that the company is able to
maintain the fast turnover of the debt as compared to 2006-07 & 2007-08. In the year 2008-09 it
increased by 15 times which is a good sign for the company.
FIXED ASSETS TURNOVER RATIO:-

(Rs. in crores)
Years Net Sales Fixed Assets Turnover Times
2008-2009 8021.59 7790.14 1.19
2007-2008 7229.97 5751.64 1.25
2006-2007 6894.79 4808.72 1.43
Interpretation:
For fixed asset turnover ratio, the year 2006-2007 is the best than the year 2007-08 & 2008-09. It
is 1.43 times which shows that the company has been utilizing their fixed asset for the generation
of sales. But the present situation is not good as the company is unable in utilizing their fixed
assets.
DEBT-EQUITY RATIO:-
(Rs. in crores)
Years Total Debt Net Worth
2008-2009 566.92 6016.22 0.09
2007-2008 482.03 4927.73 0.1
2006-2007 306.41 4152.71 0.07
Interpretation:
Debt-Equity ratio is an important tool of financial analysis to appraise the financial structure of a
firm. A high ratio shows a large share of financing by the creditors of the firm, a low ratio
implies a smaller claim of creditors. Company’s debt-equity was 0.07 in the year 2006-07 and
then it increased to 0.1 in the year 2007-08 and then again came down to 0.09 in the year 2008-
09 which shows that the company is not well trying to increase its debt so that the company need
to improve its financial condition.
INTEREST COVER RATIO:-

(Rs. in crores)
Years EBIT Interest Percent
2008-2009 2361.66 84.3 28.01
2007-2008 1741.94 39.96 43.6
2006-2007 2004.17 73.87 27.13
Interpretation:
The interest coverage ratio of the year 2007-08 is highest among the other two years i.e. 43.6%
which sounds good from the lenders point of view since its profit before interest and tax is 43.6

times of its interest expenditure i.e. the company has the enough earnings to clear its interest
obligations and thus shows the investment of the lenders are relying in the safe hands. But from
last year the company’s interest expenditure in terms of their earnings are increased so the
interest coverage ratio of the company gets decreased.
NET PROFIT MARGIN RATIO:-

(Rs. in crores)
Years PAT Net Sales N.P. Margin%
2008-2009 1606.73 8021.59 20
2007-2008 1212.79 7229.97 16.77
2006-2007 1438.59 6894.79 21.55
Interpretation:
Company’s Net Profit Ratio is as good in the year 2006-07 but then it’s come down in the year
2007-08 from 21.55% to 16.77%. But then again in the year 2008-09 it increased to 20% which
shows the company has good story ahead. But still company should improve a lot. Company
needs to concentrate on its sales & profitability.
OPERATING PROFIT MARGIN RATIO:-
(Rs. in crores)
Years OP Net Sales O.P. Margin
2008-2009 2566.35 8021.59 31.95
2007-2008 1783.28 7229.97 24.66
2006-2007 1941.8 6894.79 28.15
Interpretation:
Company’s operating ratio shows fluctuating trend year by year and reached at the highest
position in the year 2008-09 which is 31.95% which shows that the company is not trying to
reduce its operating expenses. So company need to improve its capital structure so that it will not
be the same case ahead.
RETURN ON NET WORTH (RONW):-

(Rs. in crores)
Years PAT Net Worth RONW
2008-2009 1606.73 6016.22 26.7
2007-2008 1212.79 4927.73 24.66
2006-2007 1438.59 4152.71 34.64
Interpretation:

Return on Equity is showing fluctuating trend year by year till 2008-09. In 2006-07 it was
34.64% then come down to 24.66% and at last in the year 2008-09 it increased to 26.7% which is
a good sign for the company. This shows that the net profit earned by the company from equity
shareholders fund is impressive.
BOOK VALUE PER SHARE:-
(Rs. in crores)
Equity +
Years Reserve Total no of shares B.V.
2008-2009 6016.22 18.774 320.45
2007-2008 4927.73 18.7682 262.56
2006-2007 4152.71 18.7624 221.33
Interpretation:
Company’s book value per share is outstanding. It’s increasing year by year. In the year 2006-07
it was 221.33 Rs. and then it increased to 262.56 Rs. in the year 2007-08 and then in the year
2008-09 it increased to 320.45 Rs. which is a remarkable effort by the company. It is a healthy
sign for the company. This shows that the profits and the accumulated reserves of the company
are very good which affect the book value to increase yearly.
DIVIDEND %:-
(Rs. in crores)
Dividend Per
Years Share Face value DIV%
2008-2009 23 10 230
2007-2008 20 10 200
2006-2007 20 10 200
Interpretation:
Investors along with a good Earning per Share also expect a good return from the company. We
can say that now company is in its good situation. In the year 2006-07 & 2007-08, company pay
dividend at 200% to its shareholders and investors. And in the year 2008-09 company had given
the dividend of 230% to its shareholders and investors. This shows that the company improves a
lot. A trustworthy company for the people to increase their income in the way of dividend.
Ambuja Cements limited:-

CURRENT RATIO:-
(Rs. in crores)

2008-2009 2008.77 2256.36 0.89
2007-2008 2368.01 1883.11 1.26
2006-2007 1615.11 1575.25 1.03
Interpretation:

(Rs. in crores)
2008-2009 7083.21 683.24 10.37
2007-2008 6182.09 939.75 6.58
2006-2007 5,671.39 581.6 9.75
Interpretation:
from 6.58 times in the year 2007-08 to 10.37 times in the year 2008-09 which shows that the
management is quite impressive.

(Rs. in crores)
2008-2009 7083.21 152.2 46.54
2007-2008 6182.09 224.6 27.52
2006-2007 5,671.39 145.68 38.93
Interpretation:
(Rs. in crores)

2008-2009 7083.21 6881.48 1.03
2007-2008 6182.09 5472.3 1.13
2006-2007 5,671.39 4945.59 1.15
Interpretation:
For fixed asset turnover ratio, the year 2006-2007 is the best than the year 2007-08 & 2008-09. It
is 1.15 times which shows that the company has been utilizing their fixed asset for the generation
of sales. But the present situation is not good as the company is unable in utilizing their fixed
assets.
DEBT-EQUITY RATIO:-
(Rs. in crores)
2008-2009 165.7 6470.9 0.03
2007-2008 288.67 5672.87 0.05
2006-2007 230.42 4661.25 0.04
Interpretation:
then it increased to 0.05 in the year 2007-08 and then again came down to 0.03 in the year 2008-

(Rs. in crores)
2008-2009 1799.42 22.43 80.22
2007-2008 1990.89 32.06 62.1
2006-2007 2781.26 78.85 36.67
Interpretation:
obligations and thus shows the investment of the lenders are relying in the safe hands.
(Rs. in crores)

2008-2009 1218.37 7083.21 17.2
2007-2008 1402.27 6182.09 22.68
2006-2007 1796.1 5,671.39 31.19
Interpretation:
Company’s Net Profit Ratio is as good in the year 2006-07 but then it’s come down in the year
2007-08 from 31.19% to 22.68%. But then again in the year 2008-09 it decreased to 17.2%
which shows the company has a bad story ahead. Company’s net profit shows decreasing trend.
But still company should improve a lot. Company needs to concentrate on its sales &
profitability.
(Rs. in crores)
2008-2009 1917.57 7083.21 27.07
2007-2008 1789.14 6182.09 41.05
2006-2007 2053.13 5,671.39 42.33
Interpretation:
Company’s operating ratio have been decreasing year by year and reached at the lowest position
in the year 2008-09 which is 27.07% which shows that the company is trying to reduce its
operating expenses.

(Rs. in crores)
2008-2009 1218.37 6470.9 18.83
2007-2008 1402.27 5672.87 24.73
2006-2007 1769.1 4661.25 37.95
Interpretation:
Return on Equity is showing fluctuating trend year by year till 2008-09. In 2006-07 it was
37.95% then come down to 24.73% and at last in the year 2008-09 it again come down to
18.83% which is a bad sign for the company. This shows that the net profit earned by the
company from equity shareholders fund is not impressive.

(Rs. in crores)

Equity +
2008-2009 6470.96 152.3711 42.47
2007-2008 5672.87 152.2599 37.26
2006-2007 4661.25 152.2375 30.62
Interpretation:
it was 30.62 Rs. and then it increased to 37.26 Rs. in the year 2007-08 and then in the year 2008-
09 it increased to 42.47 Rs. which is a remarkable effort by the company. It is a healthy sign for
the company. This shows that the profits and the accumulated reserves of the company are very
good which affect the book value to increase yearly.
DIVIDEND %:-
(Rs. in crores)
Dividend Per
2008-2009 2.4 2 120
2007-2008 2.2 2 110
2006-2007 3.5 2 175
Interpretation:
Investors along with a good Earning per Share also expect a good return from the company. We
can say that now company is in its critical situation. In the year 2006-07 & 2007-08, company
pay dividend at 175% & 110% respectively to its shareholders and investors. And in the year
2008-09 company had given the dividend of 120% only to its shareholders and investors. This
shows that the company’s earnings and profitability is getting ruined day by day.
UltraTech Cements Limited:-
CURRENT RATIO:-
(Rs. in crores)
2008-2009 1,378.35 1,982.39 0.70
2007-2008 1,317.49 1,834.51 0.72
2006-2007 972.13 1,327.40 0.73

Interpretation:

(Rs. in crores)
2008-2009 6,385.50 691.97 9.23
2007-2008 5,512.43 609.76 9.04
2006-2007 4,909.05 433.58 11.32
Interpretation:
In the year 2008-09, inventory turnover ratio is not satisfactory as the turnover has been
decreased from. 11.32 times in the year 2006-07 to 9.23 times in the year 2008-09 which shows
that the company does not uses the efficient resources provided by the suppliers. The working
capital management is not quite impressive.

(Rs. in crores)
2008-2009 6,385.50 186.18 34.30
2007-2008 5,512.43 216.61 25.45
2006-2007 4,909.05 183.5 26.75
Interpretation:
(Rs. in crores)
2008-2009 6,385.50 6347.77 1.01
2007-2008 5,512.43 4954.51 1.11

2006-2007 4,909.05 3697.68 1.32
Interpretation:
For fixed asset turnover ratio, the year 2006-07 is the best than the other two years. It is 1.32
times which shows that the company has been utilizing their fixed asset for the generation of
sales. But the present situation is not good as the company is unable in utilizing their fixed
assets.
DEBT-EQUITY RATIO:-
(Rs. in crores)
2008-2009 2,141.63 3,602.10 0.59
2007-2008 1,740.50 2,696.99 0.65
2006-2007 1,578.63 1,763.78 0.90
Interpretation:
then it decreased to 0.65 in the year 2007-08 and then again came down to 0.59 in the year 2008-
(Rs. in crores)
2008-2009 1495.55 134.09 11.15
2007-2008 1588.94 81.93 19.39
2006-2007 1258.8 92.61 13.59
Interpretation:
last two years the company’s interest expenditure in terms of their earnings are increased so the
(Rs. in crores)

2008-2009 977.02 6,385.50 15.30
2007-2008 1,007.61 5,512.43 18.28
2006-2007 782.28 4,909.05 15.94
Interpretation:
Company’s Net Profit Ratio is not as good in the year 2006-07 but then its rise in the year 2007-
08 from 15.94% to 18.28%. But then again in the year 2008-09 it decreased to 15.30% which
shows the company has a bad story ahead. Company’s net profit shows decreasing trend. But
still company should improve a lot. Company needs to concentrate on its sales & profitability.

(Rs. in crores)
2008-2009 1,743.20 6,385.50 27.30
2007-2008 1,727.50 5,512.43 31.34
2006-2007 1,423.64 4,909.05 29.00
Interpretation:
Company’s operating ratio have fluctuating trend year by year and reached at the lowest position
operating expenses.
(Rs. in crores)
2008-2009 977.02 3,602.10 27.12
2007-2008 1,007.61 2,696.99 37.36
2006-2007 782.28 1,763.78 44.35
Interpretation:
Return on Equity is showing decreasing trend year by year till 2008-09. In 2006-07 it was
44.35% then come down to 37.36% and at last in the year 2008-09 it again come down to
27.12% which is a bad sign for the company. This shows that the net profit earned by the
company from equity shareholders fund is not impressive.

(Rs. in crores)
Years Equity + Total no of shares B.V.

Reserve
2008-2009 3,602.10 12.45 289.36
2007-2008 2,696.99 12.45 216.65
2006-2007 1,763.78 12.45 141.69
Interpretation:
DIVIDEND %:-
(Rs. in crores)
Dividend Per
2008-2009 5 10 50
2007-2008 5 10 50
2006-2007 4 10 40
Interpretation:
Investors along with a good Earning Per Share also expect a good return from the company. We
can say that now company is in its good situation. In the year 2006-07 company pay dividend at
40% to its shareholders and investors. And in the year 2007-08 & 2008-09, company had given
the dividend of 50% to its shareholders and investors. This shows that the company’s earnings
and profitability is getting improved day by day.
India Cements limited:-

CURRENT RATIO:-
(Rs. in crores)
2008-2009 2,161.98 1,427.38 1.51
2007-2008 2,149.41 1,209.25 1.78

2006-2007 1,734.80 494.28 3.51
Interpretation:

(Rs. in crores)
2008-2009 3,358.34 390.92 8.6
2007-2008 3,044.25 350.64 8.68
2006-2007 2,255.21 248.5 9.08
Interpretation:
In the year 2008-09, inventory turnover ratio is not satisfactory as the turnover has been
decreased from. 9.08 times in the year 2006-07 to 8.6 times in the year 2008-09 which shows
that the company does not uses the efficient resources provided by the suppliers. The working
capital management is not quite impressive.
(Rs. in crores)
2008-2009 3,358.34 353.98 9.49
2007-2008 3,044.25 311.07 9.79
2006-2007 2,255.21 260.21 8.67
Interpretation:
is not increased as per the expectation which is a bad sign for the company.
(Rs. in crores)
2008-2009 3,358.34 4871.26 0.69
2007-2008 3,044.25 4168.64 0.73
2006-2007 2,255.21 2993.65 0.75
Interpretation:
assets.
DEBT-EQUITY RATIO:-
(Rs. in crores)
2008-2009 1,988.03 3,631.39 0.55
2007-2008 1,811.51 3,321.11 0.55
2006-2007 2,058.76 2,208.53 0.93
Interpretation:
then it decreased to 0.55 in the year 2007-08 and in the year 2008-09 it remain same i.e.0.55
which shows that the company is not well trying to increase its debt so that the company need to
improve its financial condition.

(Rs. in crores)
2008-2009 760.37 112.15 6.78
2007-2008 954.6 109.95 8.68
2006-2007 641.76 149.8 4.28
Interpretation:
last year the company’s interest expenditure in terms of their earnings are increased so the
(Rs. in crores)
2008-2009 432.18 3,358.34 12.87
2007-2008 637.54 3,044.25 20.94
2006-2007 478.83 2,255.21 21.23
Interpretation:
Company’s Net Profit Ratio is as good in the year 2006-07 but then its reduced in the year 2007-
08 from 21.23% to 20.94%. But then again in the year 2008-09 it decreased to 12.87% which
shows the company has a bad story ahead. Company’s net profit shows decreasing trend. But
still company should improve a lot. Company needs to concentrate on its sales & profitability.

(Rs. in crores)
2008-2009 938.61 3,358.34 27.29
2007-2008 1,092.59 3,044.25 35.89
2006-2007 745.31 2,255.21 33.05
Interpretation:
operating expenses.

(Rs. in crores)
2008-2009 432.18 3,631.39 11.9
2007-2008 637.54 3,321.11 19.2
2006-2007 478.83 2,208.53 21.68
Interpretation:
Return on Equity is showing decreasing trend year by year till 2008-09. In 2006-07 it was
21.68% then come down to 19.2% and at last in the year 2008-09 it again come down to 11.9%
which is a bad sign for the company. This shows that the net profit earned by the company from
equity shareholders fund is not impressive.

(Rs. in crores)
Equity +
2008-2009 2,965.46 28.24 105
2007-2008 2,596.86 28.19 92.13
2006-2007 1,386.59 22.04 62.92
Interpretation:
it was 62.92 Rs. and then it increased to 92.13 Rs. in the year 2007-08 and then in the year 2008-
09 it increased to 105 Rs. which is a remarkable effort by the company. It is a healthy sign for
the company. This shows that the profits and the accumulated reserves of the company are very
good which affect the book value to increase yearly.
DIVIDEND %:-
(Rs. in crores)
Dividend Per
2008-2009 2 10 20
2007-2008 2 10 20
2006-2007 1 10 10
Interpretation:
the dividend of 20% to its shareholders and investors. This shows that the company’s earnings
and profitability is getting improved day by day.
Shree Cements:-
CURRENT RATIO:-
(Rs. in crores)

2008-2009 1,439.77 746.03 1.93
2007-2008 1,114.53 540.53 2.06
2006-2007 780.67 339.24 2.3
Interpretation:

(Rs. in crores)
2008-2009 2,716.47 154.46 17.59
2007-2008 2,108.21 176.57 11.94
2006-2007 1,403.04 156.07 8.99
Interpretation:
from11.94 times in the year 2007-08 to. 17.59 times in the year 2008-09 this shows that the
management is quite impressive.

(Rs. in crores)
2008-2009 2,716.47 58.32 46.58
2007-2008 2,108.21 49.39 42.68
2006-2007 1,403.04 26.27 53.41
Interpretation:
Company has been not getting the command of the people from the beginning. Company had a
turnover of debtors in a year 2008-09 is 46.58 times which decreased than the year 2006-07. This
shows that the company is not able to maintain the fast turnover of the debt. In the year 2008-09
it decreased by 7 times than the year 2006-07 which is a bad sign for the company.
(Rs. in crores)
2008-2009 2,716.47 1950.57 1.39
2007-2008 2,108.21 1368.92 1.54
2006-2007 1,403.04 941.93 1.49
Interpretation:
assets.
DEBT-EQUITY RATIO:-
(Rs. in crores)
2008-2009 1,434.31 1,210.02 1.19
2007-2008 1,270.12 672.81 1.89
2006-2007 879.59 503.78 1.75
Interpretation:
then it increased to 1.89 in the year 2007-08 and in the year 2008-09 it again decreased to 1.19
which shows that the company is not well trying to increase its debt so that the company need to
improve its financial condition.

(Rs. in crores)
2008-2009 577.97 2,716.47 21.28
2007-2008 260.37 2,108.21 12.35
2006-2007 177 1,403.04 12.62
Interpretation:
Company’s Net Profit Ratio is as good in the year 2006-07 & 2007-08 is 12.62% & 12.35 %
respectively. But then in the year 2008-09 it shows remarkable increase to 21.28% which shows

the company has a good story ahead. Company’s net profit shows increasing trend. Company is
well concentrating on its sales & profitability.

(Rs. in crores)
2008-2009 793.53 77.16 10.28
2007-2008 418.938 52.03 8.05
2006-2007 181.99 12.04 15.11
Interpretation:
obligations and thus shows the investment of the lenders are relying in the safe hands. But in the
year 2007-08 it decreased to 8.05% which shows that the company’s interest expenditure in
terms of their earnings are increased so the interest coverage ratio of the company gets
decreased. But again in year 2008-09 it increased by 10.28% which says that company is trying
hard to reduced its interest expenditure.

(Rs. in crores)
2008-2009 953.7 2,716.47 35.11
2007-2008 865.34 2,108.21 41.05
2006-2007 593.94 1,403.04 42.33
Interpretation:
operating expenses.

(Rs. in crores)
2008-2009 577.97 1,210.02 47.76
2007-2008 260.37 672.81 38.7
2006-2007 177 503.78 35.13
Interpretation:

Return on Equity is showing increasing trend year by year till 2008-09. In 2006-07 it was
35.13% then it rise to 38.7% and at last in the year 2008-09 it rise incredibly to 47.76% which is
a healthy sign for the company. This shows that the net profit earned by the company from
equity shareholders fund is very much impressive

(Rs. in crores)
Equity +
2008-2009 1,210.02 3.4837 347.34
2007-2008 672.81 3.4837 193.13
2006-2007 503.78 3.4837 144.61
Interpretation:
DIVIDEND %:-
(Rs. in crores)
Dividend Per
2008-2009 10 10 100
2007-2008 8 10 80
2006-2007 6 10 60
Interpretation:
the dividend of 80% & 100% to its shareholders and investors. This shows that the company’s
earnings and profitability is getting improved day by day. A most trustworthy company for the
investors to invest in this company

INTERPRETATION OF THE YEAR 2008-09:-
Table 1.9
(Rs. in crores)
ACC Shree Ambuja Ultra Tech India

RATIOS Cement Cement Cement Cement Cement
Current Ratio 0.67 1.93 0.89 0.7 1.51
Inventory Turnover
(Times) 10.3 17.59 10.37 9.23 8.6
Debtors Turnover (Times) 39.38 46.58 46.54 34.3 9.49
Fixed Assets Turnover
(Times) 1.19 1.39 1.39 1.01 0.69
Debt to equity 0.09 1.19 0.03 0.59 0.55
Interest cover (in %) 28.01 10.28 80.22 11.15 6.78
Net profit Margin (in %) 20 21.28 17.2 15.3 12.87
Operating Margin (in %) 31.95 35.11 27.07 27.3 27.29
Return on net worth
(RONW) 26.7 47.76 18.83 27.12 11.9
Book Value Per Share (in
Rs.) 320.45 347.34 42.47 289.36 105
Dividend (%) 230 100 120 50 20
Price Earning Ratio
(Times) 10.26 14.36 11.2 7.05 12.26

Shree Cement has the highest current ration among all the other companies which is 1.93. This
shows that the company had an efficient working capital position. Shree cement shows the
higher liquidity of the company than its peers.
Inventory turnover ratio of Shree cement is the best among other companies. Its turnover is 17.59
times in a year. This shows that the company maintained efficient use of resources provided by
the suppliers. Shree cement working capital management is quite impressive.
The debtors’ turnover ratio of Ambuja cement which is 46.54 times is very impressive as
compared to other companies which depicts its ability to collect the amount from the debtors and
also the efficient management of the debtors and helps the firm to generate enough cash to meet
the current liabilities and thus maintain healthy liquid ratio.
Fixed assets turnover ratio of the top performers shows that Shree cement have been efficiently
utilizing their fixed asset for the generation of sales as compared to other companies. It is 1.39
times which is very impressive for the company.
Shree cement’s Debt – Equity ratio is attractive among all other companies. It is 1.19 which
shows that company is trying to increase its debt and it also sounds a large share of financing by
the creditors of the firm.
The Interest cover ratio observation of the top performers reveals that the coverage ratio of the
Ambuja cement is highest i.e. 80.22% which sounds good from lenders point of view since its
profit before interest and taxis 80.22 times of its interest expenditure i.e. the company has
enough earnings to clear its interest obligations and thus shows the investment of the lenders are
relying in the safe hands.
Net profit margin ratio of Shree cement is highest i.e. 21.28% among all which shows that the
sales and profitability of the company is excellent.
Operating profit margin of Shree cement is the best i.e. 35.11% which shows that the company is
trying hard to reduce its operating expenses better then the other companies.

Return on net worth of Shree cement is quiet attractive i.e. 47.76 which shows high return on
investment and it’s also depicts that the net profit earned by the company from its equity
shareholders funds is excellent.
The book value per share of Shree cement is very much impressive. It is 347.34 Rs. as its book
value of the share is higher than its par value; it is a healthy sign for the company. Its profits and
accumulated reserves are attractive which leads to high book value.
ACC cements declared the highest dividend annually which is 230%. So the investors who are
interested in regular income are more preferred to invest in this company. Price Earning ratio of
Shree cement is highest in this segment which is 14.36 times. The P/E of 14.36 means that the
market is prepared to pay Rs 14.36 for every rupee of future earnings. High P/E ratio indicates
high expectation of the market regarding the growth of future earnings of the company.
CONCLUSION & FINDINGS
This is the final and most important stage of the entire project. The main
objective of project ends with this stage. This part will indicate to the investor, creditors, and
shareholders each of the company’s overall operating efficiency and performance that will help
them to make the most efficient investment decision.
The industry is likely to maintain its growth momentum and continue growing at around 8% to
9% in the medium to long term. Government initiatives in the infrastructure sector and the
housing sector are likely to be the main drivers of growth for the industry.
While infrastructure spending has been a boon, there was also a strong cushion from the steady
growth of the construction sector (read housing). However, recently the demand has slowed
down as real estate and construction activities in the urban areas have taken a back seat with
economic slowdown. The importance of the housing sector in cement demand can be gauged
from the fact that it consumes almost 60%-70% of the country’s cement. If this support wanes, it
would impact the growth in consumption of cement, leading to demand supply mismatch. Also,
the hike in prices of coal and petroleum products could impact cement companies’ margins.

Job cuts and pay cuts are a common phenomenon after the global meltdown
and the cost of living has gone up due to inflation. In such a scenario, a
borrower faces a serious financial crisis as home loan repayments become
difficult. This in turn affects the housing sector.
Good agricultural income has supported demand for the commodity despite slowdown in real
estate sector. Going forward, we believe the government’s initiatives in the infrastructure and
housing sectors are likely to be the main drivers of growth for the industry in the long run.
The final investment decision is given on the basis of ratio analysis. Thus, it
will highly affect the investment decision.
From the analysis of Cement companies, It is found that the financial position
and capital structure of the Shree Cements is stronger and comparatively higher than other four
companies. Earning per share of the Shree Cements is also on the first position.so it is also good
company for the earning for investors.
As per analysis Shree Cements have a higher book value per share which is a costlier share for
the investor.
But as per Dividend (%), ACC Cements has declared the highest dividend among all which
shows that the investors are more preferable to invest in this company just to increase the regular
income in long and short run. But on the basis of other analysis investors should invest in Shree
Cements.
And lastly conclude that ratio analysis is the most important yardstick that
provides measure of comparison between different companies. It would be easier for the
investor to make the profitable decision so that they can earn much profit as possible out of their
investment.

RECOMMENDATION
The cement consumption is expected to rise more than 22% by 2009-10 from 2007-08. Cement
industry in India is currently going through a technological change as a lot of up gradation and
assimilation is taking place.
In Cement industries, every company should have its total capacity entirely based on Modern
Dry Process, which is considered as more environment-friendly. There is also a huge scope of
waste heat recovery in the cement plants, which lead to reduction in the emission level and hence
improves the environment.
Many of the multinational company in the Cement sector are investing in the Indian market so it
became an opportunity for new investors in the Cement sector.
Do not invest in unlisted shares.

The investors should become cautious while investing for very long time.
The investors should analyze the price movement.
Economic performance is greatly affected to the performance of the

industries of the country, so investors should know economic performance of the country
while investing.
Before investing in any company, this is required to implement all the data &
Financial results & also decision him self.

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INDUSTRY PROFILE

1.1 Financial System in India

Fundamental Analysis of Cement sector Page 1

Fundamental Analysis of Cement sector Page 2

"Emerge as the premier Indian stock exchange by establishing global benchmarks"

NATIONAL STOCK EXCHANGE

Fundamental Analysis of Cement sector Page 5

Fundamental Analysis of Cement sector Page 6

Fundamental Analysis of Cement sector Page 7

1.3 ABOUT MARWADI GROUP:

Fundamental Analysis of Cement sector Page 8

Mr.Deven H. Marwadi – Director of the company

Mr.Sandeep H. Marwadi – Whole Time Director

Mr.Kai Taraporevala – Nominee Director for ICGU Limited

Mr.Tony Hambro – Nominee Director Caledonia Investment

Marwadi Traditional in Values, not in business:

Marwadi Financial Centre, Rajkot

MISSION AND VISION:

Fundamental Analysis of Cement sector Page 9

Equity & Derivatives

People invest with Marwadi because of –

• 1996...Became a corporate member of National Stock Exchange Of India - (NSE)

• 1998...Became a member of Saurastra Kutch Stock Exchange (SKSE)

Fundamental Analysis of Cement sector Page 10

• 2000...Commenced Derivative Trading after obtaining registration as Clearing and

• 2003...(MCBPL) Became a corporate member of the National Commodity and

• 2003...(MCBPL) Became a corporate member of The Multi Commodity Exchange of

• 2004...Became a corporate member of Bombay Stock Exchange Ltd. (BSE)

• 2004...Launched Depository Services of Depository Participant under Central Depository

• 2005...Launched Portfolio Management Services

• 2006...MSFPL converted to Public Limited (Marwadi Shares And Finance Limited)

• 2009 – Growing Institutional Business.

2009 – Moves in to 90,000 Square Feet State of Art Infrastructure

NAVSARI BRANCH INFORMATION:

Details of BSE/NSE Trading Terminals –

Name of the Trading Firm (Stock Broker) of NSE/BSE: -

Marwadi Shares and Finance Limited.

Address & Tel No. of the Main Office of Trading Member: -

“Marwadi Financial Plaza”,

Fundamental Analysis of Cement sector Page 11

Rajkot – 360005 Ph: 0281- 2332001, 2332301/2/3/4

Contact Person’s name in the Main Office:-

Mr. Sandeep H. Marwadi, Director

Ph No.: 0281 2332001

SEBI Registration o. of Trading Member:-

 NSE CM: INB230876034,

F & O: INF230876034, CDS: INE230876034

 BSE CM: INB010876036,

F & O: INF010876036, CDS: INE010876036,

MCX CDS: INE260876034

Manohar Complex 1st Floor,

Opp. Daboo Hospital, Near Fuvara,

Terminnal Branch Manager:-

Mr. Rikin Desai

Number of Clients in Navsari Branch:-

Fundamental Analysis of Cement sector Page 12

Fundamental Analysis of Cement sector Page 13

2.2 ECONOMIC ANALYSIS

Fundamental Analysis of Cement sector Page 14

Year Mar Jun Sep Dec Average

Fundamental Analysis of Cement sector Page 15

Fundamental Analysis of Cement sector Page 16

Fundamental Analysis of Cement sector Page 17