ACC Cements Beta Analysis

Ranganath J
MPE 100409
BETA (Using Slope Functionality) 0.4817041869

Month / Year ITC BSE Sensex ITC Returns BSE Sensex Returns
Mar-2010 258.15 17527.77 0.134027411703 0.0668441923
Feb-2010 227.64 16429.55 -0.07274949084 0.0043764626
Jan-2010 245.5 16357.96 -0.00239749685 -0.0633760115
Dec-2009 246.09 17464.81 -0.02696611443 0.0318198629
Nov-2009 252.91 16926.22 0.010387119971 0.0647912593
Oct-2009 250.31 15896.28 0.100263736264 -0.0718497983
Sep-2009 227.5 17126.84 0.003042193907 0.0932044140
Aug-2009 226.81 15666.64 -0.07537708928 -0.0002342009
Jul-2009 245.3 15670.31 0.336420593844 0.0811703455
Jun-2009 183.55 14493.84 0.037005649718 -0.0089851456
May-2009 177 14625.25 -0.02880658436 0.2825510271
Apr-2009 182.25 11403.25 0.023301516002 0.1745635268
Mar-2009 178.1 9708.5 0.010095281307 0.0918720007
Feb-2009 176.32 8891.61 0.018072636988 -0.0565170242
Jan-2009 173.19 9424.24 0.048111837328 -0.0231225077
Dec-2008 165.24 9647.31 -0.01178159201 0.0609927502
Nov-2008 167.21 9092.72 0.127359762675 -0.0710396136
Oct-2008 148.32 9788.06 -0.18141177769 -0.2389010321
Sep-2008 181.19 12860.43 -0.00319084557 -0.1170034323
Aug-2008 181.77 14564.53 0.004254143646 0.0145433015
Jul-2008 181 14355.75 0.026717340745 0.0664222678
Jun-2008 176.29 13461.6 -0.14080319719 -0.1799492799
May-2008 205.18 16415.57 -0.00979682448 -0.0504265846
Apr-2008 207.21 17287.31 0.065182748162 0.1050130270
Mar-2008 194.53 15644.44 0.020779765965 -0.1100353154
Feb-2008 190.57 17578.72 0.035593957179 -0.0039657289
Jan-2008 184.02 17648.71 -0.07182487642 -0.1300478780
Dec-2007 198.26 20286.99 0.115073115861 0.0477090810
Nov-2007 177.8 19363.19 0.052756231867 -0.0239338764
Oct-2007 168.89 19837.99 -0.05563632297 0.1472948511
Sep-2007 178.84 17291.1 0.112327403906 0.1287650307
Aug-2007 160.78 15318.6 -0.00086999751 -0.0149437431
Jul-2007 160.92 15550.99 0.103400987383 0.0614640719
Jun-2007 145.84 14650.51 -0.05439927381 0.0072914361
May-2007 154.23 14544.46 0.022474144789 0.0484481022
Apr-2007 150.84 13872.37 0.063826786092 0.0612196969
Mar-2007 141.79 13072.1 -0.12480711067 0.0103577885
Feb-2007 162.01 12938.09 -0.0106259542 -0.0818136786
Jan-2007 163.75 14090.92 -0.01278109363 0.0220506263
Dec-2006 165.87 13786.91 -0.04688846751 0.0066149204
Nov-2006 174.03 13696.31 -0.02765672142 0.0566591318
Oct-2006 178.98 12961.9 0.011758055399 0.0407469798
Sep-2006 176.9 12454.42 -0.01885745979 0.0645667811
Aug-2006 180.3 11699.05 0.141789627003 0.0889036363
Jul-2006 157.91 10743.88 -0.08090332344 0.0126898697
Jun-2006 171.81 10609.25 0.103893600617 0.0202565535
May-2006 155.64 10398.61 -0.17924379054 -0.1226230665
Apr-2006 189.63 11851.93 0.031831537708 0.0507067401
Mar-2006 183.78 11279.96 0.129494192121 0.0877241028
Feb-2006 162.71 10370.24 0.114604740375 0.0453986889
Jan-2006 145.98 9919.89 0.090460894898 0.0555398902
Dec-2005 133.87 9397.93 0.055757097792 0.0693063111
Nov-2005 126.8 8788.81 0.118067189842 0.1135901737
Oct-2005 113.41 7892.32 -0.12030716724 -0.0859530626
Sep-2005 128.92 8634.48 -0.21033933603 0.1062145199
Aug-2005 163.26 7805.43 0.030356579363 0.0222659657
Jul-2005 158.45 7635.42 0.019036593993 0.0613815968
Jun-2005 155.49 7193.85 0.031100795756 0.0712929498
May-2005 150.8 6715.11 0.112997269171 0.0911000838
Apr-2005 135.49 6154.44 0.06954531102 -0.0521160297
Mar-2005 126.68 6492.82 0.038020321206 -0.0329229385
Feb-2005 122.04 6713.86 -0.04945868058 0.0240880789
Jan-2005 128.39 6555.94 0.039763524457 -0.0070804475
Dec-2004 123.48 6602.69 0.01721723371 0.0590925350
Nov-2004 121.39 6234.29 0.183946162099 0.0990820254
Oct-2004 102.53 5672.27 -0.04418756409 0.0158786162
Sep-2004 107.27 5583.61 0.086938899585 0.0754090846
Aug-2004 98.69 5192.08 0.011893776274 0.0042086370
Jul-2004 97.53 5170.32 0.16523297491 0.0781697689
Jun-2004 83.7 4795.46 0.010137581463 0.0075300129
May-2004 82.86 4759.62 -0.18284023669 -0.1583476125
Apr-2004 101.4 5655.09 0.032796903646 0.0115354345
Mar-2004 98.18 5590.6 -0.05277375784 -0.0135703334
Feb-2004 103.65 5667.51 0.07520746888 -0.0049441067
Jan-2004 96.4 5695.67 0.038569273863 -0.0245403291
Dec-2003 92.82 5838.96 0.152327746741 0.1574169148
Nov-2003 80.55 5044.82 -0.01636341434 0.0281136447
Oct-2003 81.89 4906.87 0.084492120249 0.1018651589
Sep-2003 75.51 4453.24 -0.0377214222 0.0491220879
Aug-2003 78.47 4244.73 0.162002073153 0.1192107810
Jul-2003 67.53 3792.61 -0.06532871972 0.0514203813
Jun-2003 72.25 3607.13 0.104740061162 0.1340501454
May-2003 65.4 3180.75 0.017107309487 0.0746539450
Apr-2003 64.3 2959.79 0.08358611392 -0.0291696187
 ACC Cements Beta Analysis
Ranganath J
MPE 100409
Mar-2003 59.34 3048.72
 ACC Cements Beta Analysis
Ranganath J
MPE 100409
BETA (Using Slope Functionality) 0.39235836742

Month / Year ITC BSE Sensex ITC Returns BSE Sensex Returns
Mar-2010 258.15 17527.77 0.1340274117 0.066844192324197
Feb-2010 227.64 16429.55 -0.0727494908 0.00437646259069
Jan-2010 245.5 16357.96 -0.0023974969 -0.063376011534051
Dec-2009 246.09 17464.81 -0.0269661144 0.031819862910916
Nov-2009 252.91 16926.22 0.01038711997 0.064791259338663
Oct-2009 250.31 15896.28 0.10026373626 -0.071849798328238
Sep-2009 227.5 17126.84 0.00304219391 0.09320441396496
Aug-2009 226.81 15666.64 -0.0753770893 -0.000234200854993
Jul-2009 245.3 15670.31 0.33642059384 0.081170345470903
Jun-2009 183.55 14493.84 0.03700564972 -0.008985145553068
May-2009 177 14625.25 -0.0288065844 0.282551027119462
Apr-2009 182.25 11403.25 0.023301516 0.174563526806407
Mar-2009 178.1 9708.5 0.01009528131 0.091872000683791
Feb-2009 176.32 8891.61 0.01807263699 -0.056517024184444
Jan-2009 173.19 9424.24 0.04811183733 -0.023122507724951
Dec-2008 165.24 9647.31 -0.011781592 0.060992750244151
Nov-2008 167.21 9092.72 0.12735976268 -0.071039613570003
Oct-2008 148.32 9788.06 -0.1814117777 -0.238901032080576
Sep-2008 181.19 12860.43 -0.0031908456 -0.117003432311238
Aug-2008 181.77 14564.53 0.00425414365 0.01454330146457
Jul-2008 181 14355.75 0.02671734075 0.066422267783919
Jun-2008 176.29 13461.6 -0.1408031972 -0.179949279860523
May-2008 205.18 16415.57 -0.0097968245 -0.050426584587192
Apr-2008 207.21 17287.31 0.06518274816 0.105013026992337
Mar-2008 194.53 15644.44 0.02077976597 -0.110035315426834
Feb-2008 190.57 17578.72 0.03559395718 -0.003965728939962
Jan-2008 184.02 17648.71 -0.0718248764 -0.130047877974998
Dec-2007 198.26 20286.99 0.11507311586 0.04770908099337
Nov-2007 177.8 19363.19 0.05275623187 -0.023933876365499
Oct-2007 168.89 19837.99 -0.055636323 0.147294851108374
Sep-2007 178.84 17291.1 0.11232740391 0.128765030746935
Aug-2007 160.78 15318.6 -0.0008699975 -0.014943743131466
Jul-2007 160.92 15550.99 0.10340098738 0.061464071899204
Jun-2007 145.84 14650.51 -0.0543992738 0.00729143605194
May-2007 154.23 14544.46 0.02247414479 0.048448102234874
Apr-2007 150.84 13872.37 0.06382678609 0.061219696911743
Mar-2007 141.79 13072.1 -0.1248071107 0.010357788514379
Feb-2007 162.01 12938.09 -0.0106259542 -0.081813678595862
Jan-2007 163.75 14090.92 -0.0127810936 0.022050626282467
Dec-2006 165.87 13786.91 -0.0468884675 0.006614920369063
Nov-2006 174.03 13696.31 -0.0276567214 0.05665913176309
Oct-2006 178.98 12961.9 0.0117580554 0.040746979787096
Sep-2006 176.9 12454.42 -0.0188574598 0.06456678106342
Aug-2006 180.3 11699.05 0.141789627 0.088903636302714
Jul-2006 157.91 10743.88 -0.0809033234 0.012689869689186
Jun-2006 171.81 10609.25 0.10389360062 0.020256553520134
May-2006 155.64 10398.61 -0.1792437905 -0.122623066454156
Apr-2006 189.63 11851.93 0.03183153771 0.050706740094823
Mar-2006 183.78 11279.96 0.12949419212 0.087724102817293
Feb-2006 162.71 10370.24 0.11460474038 0.045398688896752
Jan-2006 145.98 9919.89 0.0904608949 0.055539890167303
Dec-2005 133.87 9397.93 0.05575709779 0.069306311093311
Nov-2005 126.8 8788.81 0.11806718984 0.113590173738521
Oct-2005 113.41 7892.32 -0.1203071672 -0.085953062604812
Sep-2005 128.92 8634.48 -0.210339336 0.106214519891921
Aug-2005 163.26 7805.43 0.03035657936 0.022265965722907
Jul-2005 158.45 7635.42 0.01903659399 0.061381596780583
Jun-2005 155.49 7193.85 0.03110079576 0.071292949780421
May-2005 150.8 6715.11 0.11299726917 0.091100083841909
Apr-2005 135.49 6154.44
BETA (Using Slope Functionality) 0.58666563668

Month / Year ITC BSE Sensex ITC Returns BSE Sensex Returns
Mar-2009 178.1 9708.5 0.010095281307 0.091872000683791
Feb-2009 176.32 8891.61 0.018072636988 -0.056517024184444
Jan-2009 173.19 9424.24 0.048111837328 -0.023122507724951
Dec-2008 165.24 9647.31 -0.01178159201 0.060992750244151
Nov-2008 167.21 9092.72 0.127359762675 -0.071039613570003
Oct-2008 148.32 9788.06 -0.18141177769 -0.238901032080576
Sep-2008 181.19 12860.43 -0.00319084557 -0.117003432311238
Aug-2008 181.77 14564.53 0.004254143646 0.01454330146457
Jul-2008 181 14355.75 0.026717340745 0.066422267783919
Jun-2008 176.29 13461.6 -0.14080319719 -0.179949279860523
May-2008 205.18 16415.57 -0.00979682448 -0.050426584587192
Apr-2008 207.21 17287.31 0.065182748162 0.105013026992337
Mar-2008 194.53 15644.44 0.020779765965 -0.110035315426834
Feb-2008 190.57 17578.72 0.035593957179 -0.003965728939962
Jan-2008 184.02 17648.71 -0.07182487642 -0.130047877974998
Dec-2007 198.26 20286.99 0.115073115861 0.04770908099337
Nov-2007 177.8 19363.19 0.052756231867 -0.023933876365499
Oct-2007 168.89 19837.99 -0.05563632297 0.147294851108374
Sep-2007 178.84 17291.1 0.112327403906 0.128765030746935
Aug-2007 160.78 15318.6 -0.00086999751 -0.014943743131466
Jul-2007 160.92 15550.99 0.103400987383 0.061464071899204
Jun-2007 145.84 14650.51 -0.05439927381 0.00729143605194
May-2007 154.23 14544.46 0.022474144789 0.048448102234874
Apr-2007 150.84 13872.37 0.063826786092 0.061219696911743
Mar-2007 141.79 13072.1 -0.12480711067 0.010357788514379
Feb-2007 162.01 12938.09 -0.0106259542 -0.081813678595862
Jan-2007 163.75 14090.92 -0.01278109363 0.022050626282467
Dec-2006 165.87 13786.91 -0.04688846751 0.006614920369063
Nov-2006 174.03 13696.31 -0.02765672142 0.05665913176309
Oct-2006 178.98 12961.9 0.011758055399 0.040746979787096
Sep-2006 176.9 12454.42 -0.01885745979 0.06456678106342
Aug-2006 180.3 11699.05 0.141789627003 0.088903636302714
Jul-2006 157.91 10743.88 -0.08090332344 0.012689869689186
Jun-2006 171.81 10609.25 0.103893600617 0.020256553520134
May-2006 155.64 10398.61 -0.17924379054 -0.122623066454156
Apr-2006 189.63 11851.93 0.031831537708 0.050706740094823
Mar-2006 183.78 11279.96 0.129494192121 0.087724102817293
Feb-2006 162.71 10370.24 0.114604740375 0.045398688896752
Jan-2006 145.98 9919.89 0.090460894898 0.055539890167303
Dec-2005 133.87 9397.93 0.055757097792 0.069306311093311
Nov-2005 126.8 8788.81 0.118067189842 0.113590173738521
Oct-2005 113.41 7892.32 -0.12030716724 -0.085953062604812
Sep-2005 128.92 8634.48 -0.21033933603 0.106214519891921
Aug-2005 163.26 7805.43 0.030356579363 0.022265965722907
Jul-2005 158.45 7635.42 0.019036593993 0.061381596780583
Jun-2005 155.49 7193.85 0.031100795756 0.071292949780421
May-2005 150.8 6715.11 0.112997269171 0.091100083841909
Apr-2005 135.49 6154.44 0.06954531102 -0.052116029706661
Mar-2005 126.68 6492.82 0.038020321206 -0.03292293851823
Feb-2005 122.04 6713.86 -0.04945868058 0.024088078902492
Jan-2005 128.39 6555.94 0.039763524457 -0.007080447514574
Dec-2004 123.48 6602.69 0.01721723371 0.059092534995966
Nov-2004 121.39 6234.29 0.183946162099 0.09908202536198
Oct-2004 102.53 5672.27 -0.04418756409 0.015878616164095
Sep-2004 107.27 5583.61 0.086938899585 0.075409084605784
Aug-2004 98.69 5192.08 0.011893776274 0.004208636989587
Jul-2004 97.53 5170.32 0.16523297491 0.078169768906424
Jun-2004 83.7 4795.46 0.010137581463 0.00753001290019
May-2004 82.86 4759.62 -0.18284023669 -0.158347612504841
Apr-2004 101.4 5655.09
 ACC Cements Beta Analysis
Ranganath J
MPE 100409
BETA (Using Slope Functionality) 0.68715262272

Month / Year ITC BSE Sensex ITC Returns BSE Sensex Returns
Mar-2008 194.53 15644.44 0.020779765965 -0.110035315426834
Feb-2008 190.57 17578.72 0.035593957179 -0.003965728939962
Jan-2008 184.02 17648.71 -0.07182487642 -0.130047877974998
Dec-2007 198.26 20286.99 0.115073115861 0.04770908099337
Nov-2007 177.8 19363.19 0.052756231867 -0.023933876365499
Oct-2007 168.89 19837.99 -0.05563632297 0.147294851108374
Sep-2007 178.84 17291.1 0.112327403906 0.128765030746935
Aug-2007 160.78 15318.6 -0.00086999751 -0.014943743131466
Jul-2007 160.92 15550.99 0.103400987383 0.061464071899204
Jun-2007 145.84 14650.51 -0.05439927381 0.00729143605194
May-2007 154.23 14544.46 0.022474144789 0.048448102234874
Apr-2007 150.84 13872.37 0.063826786092 0.061219696911743
Mar-2007 141.79 13072.1 -0.12480711067 0.010357788514379
Feb-2007 162.01 12938.09 -0.0106259542 -0.081813678595862
Jan-2007 163.75 14090.92 -0.01278109363 0.022050626282467
Dec-2006 165.87 13786.91 -0.04688846751 0.006614920369063
Nov-2006 174.03 13696.31 -0.02765672142 0.05665913176309
Oct-2006 178.98 12961.9 0.011758055399 0.040746979787096
Sep-2006 176.9 12454.42 -0.01885745979 0.06456678106342
Aug-2006 180.3 11699.05 0.141789627003 0.088903636302714
Jul-2006 157.91 10743.88 -0.08090332344 0.012689869689186
Jun-2006 171.81 10609.25 0.103893600617 0.020256553520134
May-2006 155.64 10398.61 -0.17924379054 -0.122623066454156
Apr-2006 189.63 11851.93 0.031831537708 0.050706740094823
Mar-2006 183.78 11279.96 0.129494192121 0.087724102817293
Feb-2006 162.71 10370.24 0.114604740375 0.045398688896752
Jan-2006 145.98 9919.89 0.090460894898 0.055539890167303
Dec-2005 133.87 9397.93 0.055757097792 0.069306311093311
Nov-2005 126.8 8788.81 0.118067189842 0.113590173738521
Oct-2005 113.41 7892.32 -0.12030716724 -0.085953062604812
Sep-2005 128.92 8634.48 -0.21033933603 0.106214519891921
Aug-2005 163.26 7805.43 0.030356579363 0.022265965722907
Jul-2005 158.45 7635.42 0.019036593993 0.061381596780583
Jun-2005 155.49 7193.85 0.031100795756 0.071292949780421
May-2005 150.8 6715.11 0.112997269171 0.091100083841909
Apr-2005 135.49 6154.44 0.06954531102 -0.052116029706661
Mar-2005 126.68 6492.82 0.038020321206 -0.03292293851823
Feb-2005 122.04 6713.86 -0.04945868058 0.024088078902492
Jan-2005 128.39 6555.94 0.039763524457 -0.007080447514574
Dec-2004 123.48 6602.69 0.01721723371 0.059092534995966
Nov-2004 121.39 6234.29 0.183946162099 0.09908202536198
Oct-2004 102.53 5672.27 -0.04418756409 0.015878616164095
Sep-2004 107.27 5583.61 0.086938899585 0.075409084605784
Aug-2004 98.69 5192.08 0.011893776274 0.004208636989587
Jul-2004 97.53 5170.32 0.16523297491 0.078169768906424
Jun-2004 83.7 4795.46 0.010137581463 0.00753001290019
May-2004 82.86 4759.62 -0.18284023669 -0.158347612504841
Apr-2004 101.4 5655.09 0.032796903646 0.011535434479305
Mar-2004 98.18 5590.6 -0.05277375784 -0.013570333356271
Feb-2004 103.65 5667.51 0.07520746888 -0.004944106663483
Jan-2004 96.4 5695.67 0.038569273863 -0.024540329099703
Dec-2003 92.82 5838.96 0.152327746741 0.157416914775949
Nov-2003 80.55 5044.82 -0.01636341434 0.028113644747059
Oct-2003 81.89 4906.87 0.084492120249 0.101865158850635
Sep-2003 75.51 4453.24 -0.0377214222 0.049122087859534
Aug-2003 78.47 4244.73 0.162002073153 0.119210780966142
Jul-2003 67.53 3792.61 -0.06532871972 0.051420381300369
Jun-2003 72.25 3607.13 0.104740061162 0.134050145405958
May-2003 65.4 3180.75 0.017107309487 0.074653945043398
 ACC Cements Beta Analysis
Ranganath J
MPE 100409
Apr-2003 64.3 2959.79
 2009 2008 2007 2009 2008 2007
Rs. ( in Crores)
Assets 13,912.63 12,272.10 10,637.96 Leverage [Assets / Equity] 1.08 1.09 1.09
Equity 12896.38 11247.38 9749.28 Asset Turnover [Sales / Asset] 1.08 1.14 1.16
Sales 14,985.81 14,032.20 12,313.83 Operating Margin [PBIT / Sales] 0.32 0.32 0.32
PBIT 4,820.76 4,527.19 3,936.21 Interest Burden [PBT / PBIT] 0.99 0.99 1.00
PBT 4,773.11 4,502.58 3,920.17 Tax Management [PAT / PBT] 0.68 0.69 0.69
PAT 3,263.59 3,120.10 2,699.97 PAT / Equity 0.25 0.28 0.28
Total Debt 177.55 214.43 200.88 Total Debt / Net Worth 0.01 0.02 0.02
Net Worth 13,735.08 12,057.67 10,437.08 Long Term Debt / Net Worth 0.00 0.00 0.00
Long Term Debt 0 0 0 PBIT / Interest 101.17 183.96 245.40
Interest 47.65 24.61 16.04 Beta 0.39 0.59 0.69

ANALYSIS
Beta Observations

Beta Value of less than 1 indicates that the stock price of ITC moves less than the market (BSE)

A lower beta value (approx .68) indicates stocks pose less risks but offer lower returns.

Ratio Observations

The Interest Burden of the Company has been stable of over the last 3 yrs and since it is almost 1, it indicates that the interest burden of the Company is not too high.
ratio for ITC determines that interest income is very less and low debt company. Well this is good for company with high growth prospects

The Asset Turnover ratio of 1.08 signifies that the company is very efficiently using its assets for generating sales revenue. The ratio has dropped a bit in the last 3 year
not advisable however.

This (PAT/Equity) ratio is used to assess the profitability of the investments by the stockholders. If we look at the figures of 2006,07 & 08 it is observed that there is an
the ratio. However for the year 2009, it has dropped down drastically by more than 2%. This is because the addition of more equity by the stakeholders in 2009 hasn’t g
desirable profits.

The Total Debt / Net Worth ratio of approx 0.01 indicates that the Company has very few debtors and is a cash rich Company
Fixed asset by networth ratio is very less and hence the company is not vulnerable to the changes happing outside
PBIT by Sales ratio is on the lower side and this clearly shows that the fixed cost is between 1/3rd of Sales
den of the Company is not too high. PBT/ PBIT
ospects

o has dropped a bit in the last 3 years which is

7 & 08 it is observed that there is an increase in

by the stakeholders in 2009 hasn’t given the