SIP Project Fundamental Analysis

Project Report On
Fundamental Analysis On Cement

Industry
Submitted in partial fulfillment
For the award of the degree of
Master of Management Studies (MMS)
(Under University of Mumbai)
Submitted by
RUCHI SHUKLA
(Roll No – M1820094)
Under the Guidance of

Mishu Tripathi
(Assistant Professor)
(2018-2020)
1
CERTIFICATE
This is to certify that the project titled, “Fundamental Analysis on Cement

Industry” is successfully completed by Ruchi Shukla during the II semester, in partial
fulfillment of the Master’s Degree in Management Studies recognized by the
University of Mumbai for the academic year 2018-19 through Thakur Institute of
Management Studies & Research, Mumbai. This project work is original and not
submitted earlier for the award of any degree/diploma or association of any other
university/institution.
Date: Signature:
Place: Mumbai Mentor name: Mishu Tripathi
(Assistant Professor)
Signature:
Name: Dr. Pankaj Natu
(Director)
2
3
DECLARATION
I, hereby declare that this Project Report titled “Fundamental Analysis on Cement
Industry” submitted by me to the University of Mumbai through Thakur Institute of
Management Studies & Research, Mumbai is a bonafide work undertaken by me and
it is not submitted to any other university or institution for the award of any
degree/diploma/certificate or published any time before.
Date: (Signature of the Student)

Place: Mumbai Name: - Ruchi Shukla
Roll No: M1820094
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ACKNOWLEDGEMENT
The success and final outcome of this project required a lot of guidance and assistance
from many people and I am extremely privileged to have got this all along the
completion of my project. All that I have done is only due to such supervision and
assistance and I would not forget to thank them.
I would like to express my special thanks of gratitude to my professor, who gave me
the golden opportunity to do this wonderful project on the topic “Study of
Fundamental Analysis” I was honored with splendid mentor Prof. Mishu Tripathi
who gave direction and continually roused me amid my residency at this project. The
best part about this temporary position was that every single thought which flew up
amid meetings to generate new ideas was nimbly grasped and stayed upon. I might
want to offer credit to my mentor for being so understanding and urging me to think
from all points of view.
I would like to thank my director Dr. Pankaj Natu and faculty guide Prof. Mishu
Tripathi for her heartfelt help, profitable data and direction, which helped me in
finishing this undertaking through different stages report.
I would like to thank my dear parents with all the gratitude and respect for their
constant and impeccable support throughout the summer internship course. Also, for
having faith in me to achieve the much-needed experience.
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TABLE OF CONTENT
Sr.no Description Page No.
1 Executive summary 8
2
Industry Overview 9
3 History of Cement Sector 10

4 Literature Review 11
5 Research objective 14
6 Data collection 15
7 Data Analysis Tools & Technique 16

8 Fundamental Analysis 17
9 Company Analysis 18
10 Ratio Analysis 25
11 Learning Outcome 46
12 Contribution to the organization 47
13
Conclusion 48
References 49
14
15 Annexure 50
16 Plagiarism Report 63
6
List of Tables and Charts
Table 1:- Price to Earnings Ratio……………….……………………………………...25

Table 2:- Earnings Per Share Ratio……………………………………………………..27
Table 3:- Current Ratio………………………………………………………………....29
Table 4:- Quick Ratio…………………………………………………………………...31
Table 5:- Net Profit Ratio……………………………………………………………....33
Table 6:- Gross Profit Ratio…………………………………………………………….35
Table 7:- Return on Equity……………………………………………………………..37
Table 8:- Return on Capital Employed…………………………………………..….....39
Table 9:- Debt Equity Ratio…………………………………………………………….41
Table 10:- Interest Coverage Ratio……………………………………………………..44
Chart 1:- Price to Earnings Ratio…………………………………………………..….26

Chart 2:- Earnings Per Share Ratio…………………………………………………....28
Chart 3:- Current Ratio.……………………………………………………….……….30
Chart 4:- Quick Ratio……………………..…………………………………...……….32
Chart 5:- Net Profit Ratio………………………………………………………..….....34
Chart 6:- Gross Profit Ratio…………………………………………………………....36
Chart 7:- Return on Equity……………………………………………………….........38
Chart 8:- Return on Capital Employed…………………………………………………40
Chart 9:- Debt Equity Ratio…………………………………………………………….42
Chart 10:- Interest Coverage Ratio………………………………………………..……45
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EXECUTIVE SUMMARY
The analysis of Cement Industry is the systematic study of the performance of

companies in stock market with the help of fundamental analysis. In fundamental
analysis includes Economic analysis, industry analysis and company analysis. This
analysis is based on the RATIO ANALYSIS and STUDY OF GRAPH. From the
fundamental analysis I have calculated the ratio of the company and peer’s
compression of the company.
I have taken six companies for comparison on the basis of their Market Capitalization.
From last 5 years data of all companies I have checked their past performance to
forecast their future performance and after that I have come out with the suggestions.
This report deals with comparative study of six companies. The study is based on last
5 Years data. In this report I have used various Profitability Liquidity Ratios &
Leverage ratios to analyze the company’s performance.
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INDUSTRY OVERVIEW
India is the second largest Producer Country in the world in Cement Sector. India's
cement industry is a Important part of its economy, providing employment to more
than a million people, directly or indirectly. Ever since it was deregulated in 1982, the
Indian cement industry has attracted huge investments, both from Indian and foreign
investors.
India has a lot of potential for development in the infrastructure and construction
sector and cement sector is expected to largely benefit from it. Some of the recent
major initiatives such as development of 98 smart cities are expected to provide a
major boost to the Cement sector.
We can Assume this developments in the country and suitable government foreign
policies, and other foreign players such as Lafarge-Holcim, Heidelberg Cement, and
Vicat have invested in the country in the past year. A significant factor which aids the
growth of this sector is the ready availability of the raw materials for making cement,
such as limestone and coal.
Its Expected that Total 502 million tonnes per year of cement production capacity as
of 2018,. The production capacity is estimated to touch 550 MT by 2020. Of the total
capacity, 98 per cent lies with the private sector and rest with the public sector. The
top 20 companies account for around 70 per cent of the total production.
A total of 210 large cement plants together account for 410 million tonnes of installed
capacity in the country, while 350 mini cement plants make up the rest. Of the total
210 large cement plants in India, 77 are located in the states of Andhra Pradesh,
Rajasthan and Tamil Nadu. Cement production in India increased from 230.49 million
tonnes in 2011-12 to 297.56 million tonnes in 2017-18.During the same period
imports of cement, clinker and asbestos cement stood at a CAGR of 7.99 per cent to
US$ 158.49 million in FY19.
The Government of India has strongly focused on infrastructure development to
Increase economic growth and is aiming for 100 smart cities. Government also
Focusing to increase the capacity of railways and the facilities for the handling and
storage to ease the transportation of cement and reduce transportation cost. These
measures would increase construction activity thereby it will boost cement demand in
Country.
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HISTORY OF CEMENT INDUSTRY
According to Research Analyst at RNCOS, “The Indian cement industry is expected

to grow rapidly in coming years due to heavy demand from housing, retail and
infrastructure industry. Though India has low per capita consumption (110 Kgs of
cement in India as compared to world average of 260 Kgs), moreover, several
playershave decided to raise their production capacity from 2009 to 2012, which, in
turn, boosts the production volume of the cement industry. As per the Department of
Industrial Policy and Promotion's latest data reveled that Indian cement modern plants
are among the best in the world and comprises of 134 large cement plants with overall
installed capacity of 173.08 million tones along with more than 350 operating mini-
cement plants, with a capacity of 11.10 million tons per annum. Continuous
technological changes,upgrading and assimilation of latest technology have been
going on in the cement industry. At present 93 per cent of the total installed capacity
in the industry is based on modern and environment-friendly dry process
technology and remaining 7 per cent of the capacity is depend on the old wet or semi-
dry process technology. Cement industry in India has to be viewed on a regional basis
viz. northern, western, southern and eastern. Since demand is erratic in certain
regions, companies that focus on these regions suffer if there is a decline in prices.
The Indian cement industry is highly fragmented; generally, the top 6 companies share
almost 60% of industry capacity and the remaining 40% is distributed among 40 small
players. The Rapid Growth in the real estate and construction industry in India saw a
sudden and sharp increase in the price of cement, to the extent of a price increment as
high as 17 per cent in a single month (Ritu Raj Arora and Runa Sarkar). Against a
17% rise in demand in 2018, cement industry saw a sluggish growth in installed
capacity, at only a little more than 1 per cent, says a recent study conducted by the
Government.
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REVIEW OF LITERATURE
Dr. Kavitha Muthukumaran(2018)

The study focuses on suggesting the investors to invest in a particular company in
cement industry by analyzing the underneath facts affecting it. The investors who
wants to invest find it difficult to select a company which has high capital growth in
long run. Even though they have invested by analyzing the market, they end up losing
money. Thus, the study has developed four interrelated models to give investors a
clear idea of how to analyze and in which companies should we invest.
Monica, Sowmiya (2016)

The Purpose carrying out the Fundamental analyses of two leading companies of
Cement sector and estimating their intrinsic value to assist investment decisions.
Fundamental analysis Try to predict a stock's True Value or 'fundamental' value, and
looks for opportunities where the current price deviates from the calculated intrinsic
price. The cement industry is one of the core industries in India and is optimistic of
posting good sales in the coming years. So, the investment in the shares and securities
of KCP cements and Birla cements companies seems to be profitable.
(Ahmed s wafi, 2015)

has Researched this paper to Know a better stock valuation model for the
Fundamental Analysis Approach, by Looking at the theoretical foundations and
literature reviews. By looking at the basics of the each model and then starting with
the Discounted Dividend Model (DDM), through a Multiplier Models, and finally the
Discounted Cash Flow Model (DCFM), they find that all these models have strengths,
despite the lack of accuracy, because it is required financial efficiency market.
Recently Ohlson (1995) stated the simulated benefit in the formulation of the Residual
Income Model (RIM). The Ohlson Model help us to know the relationship between
stock values and accounting variables. With the help of literature reviews, in financial
markets, they conclude that the best model that relied upon to predict stock value, that
proved credibility in both the market such as emerging and developed markets,
Residual Income Model (RIM), which doesn’t require financial efficiency for its
application.
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Pankaj Soni (2015)
Studies the fundamental analysis of cement sector. The Fundamental analysis is based
on Economic, Industry and Company (EIC) Analysis. The paper also develops a
Multi-Regression Model for finding values of Cement Company’s share prices
(Dependent Variable) through 4 parameters that is SENSEX, IIP, CPI and Realty
Index (Independent Variable). For this regression analysis was done on monthly share
prices and other variables from last 5 years and was tested. The model worked.
(Mr. Suresh, may 2013)

Has stated that The unique nature of capital market instruments influence investors to
depend strongly on fundamental factors in their investment decisions. These
fundamental factors are related to the overall economy or a specific industry or a
company. The performance of the securities that represent the company is depend on
the performance of the company itself. However, as companies are a part of industrial
and business sector, which in turn are a part of overall economy, so even the
economic and industry factors can affect the investment decision. Selection of any
stock for investment will start with fundamental analysis. Fundamental analysis helps
to examines the economic environment, industry performance and company
performance before making an final investment decision.
Richard C. Grimm (2012)

Has explains that fundamental analysis is to determine its application as an Austrian
approach to common stock selection. The Fundamental analysis help us to conclude
the research paper that fundamental security analysis can be practiced in a manner
consistent with traditional Austrian views and is suitable as a common stock selection
method by those who wish to select the stocks.
Rajiv Kumar Bhatt (2011)

He has explained in his paper impact of recent global financial crisis on Indian
Economy. The paper is divided into three sections. In this paper each and every
concept has been explained in an in-depth manner in the form of section for economy,
industry and company analysis.
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Sayed Mohammad (2011),
He Explained that India is the world's second largest producer of cement behind
China with ever growing industry capacity of over 200 plus million tonnes (MT) and
has left behind developed markets such as the US and Japan. It is a highly capital-
intensive industry and operates with a high level of fixed cost. For smooth running of
cement industry it is important to have overall balanced projection. The current
scenario of Cement industry in India is more concerned of solving the consumer
complaints, resolve disputes with special attention given to public interface.
Dharmendra S Mistry (2011),

He states that Dividend decision is one very important function of finance managers.
It depends on the all trend of the turnover and control of the management over the
expenditure. It also affects the decision of potential investors regarding investment in
company’s equity and overall market value of the company’s share. In this paper, an
attempt has been made to ascertain influence of the factors i.e. Total Assets,
Liquidity, Inventory Turnover Ratio, Profitability and Retained Earnings on the
dividend.
NSE REPORT: - (A study on fundamental analysis of selected IT companies

listed at NSE, 2009)
In NSE Report it has determine that all investors are advised to have enough
knowledge about the stock market before making investment decisions. Analysis of
capital market is possible by two methods such as Fundamental analysis or Technical
analysis. This paper intends to study on Fundamental analysis for selected IT
companies which are listed at NSE. Fundamental analysis is studied in three parts.
Economic analysis focused on the fundamental factors like GDP, IIP, fiscal deficit,
inflation, current account deficit etc. Industry analysis Indian IT sector has analyzed
based on entry barriers, type of industry, government interference, Porter’s five force
model. Finally, Company analysis Focuse on the various ratios such as dividend
payout ratio, EPS, P/E ratio, Debt-Equity ratio is used. It also focuses on the
calculation of Real value of shares and compared with Market value.
13
RESEARCH OBJECTIVE:
I. To study fundamental analysis of Cement Industry the performances of companies

are analyzed on the basis of Ratio analysis and charts.
II. To identify the top companies for investment based on market capitalization.
IV. To find and suggest the best company for investment based on various Ratio Analysis.
SAMPLING DESIGN
For the purpose of research, I have selected six companies on the basis of Market
Capitalization.
Market capitalization as on 6th Aug 2019

I. UltraTech Cement (119,637.62 cr)
II. Shree Cement (70,524.13cr)
III. Ramco Cement(17,385.57cr)
IV. JK Cement(7,433.98cr)
V. Birla Corporation(4,543.32cr)
VI. Heidelberg Cement(4,238.80cr)
NEED FOR THE STUDY
To list out the top performing companies in the cement sector based on various
models and certain parameters for creating awareness about investing in stock market.
14
DATA COLLECTION
SECONDARY DATA
 In the preparation of this project report secondary source of data has been used
for analysis.
SCOPE & LIMITATIONS
i. The study is restricted to secondary data only.
ii. The study can be used for comparing the performance of various ratios.
iii. The concept of fundamental analysis can be made clear with

the help of this study.
15
DATA ANALYSIS TOOLS AND TECHNIQUES: -
The data of past 5 years is used in the project so as to drive a definite conclusion for the
project. The data is collected and analyzed with the help of a statistical tool i.e. Analysis
of Various Ratios.
I. Price to Earnings Ratio
II. Earnings Per Share
III. Current Ratio
IV. Quick Ratio
V. Gross Profit Ratio
VI. NET Profit Ratio
VII. Return on Equity
VIII. Return on Capital Employed
IX. Debt Equity Ratio
X. Interest Coverage Ratio
Tables and graphical representations have been used for better comprehension,
presentation and understanding.
16
FUNDAMENTAL ANALYSIS
Fundamental analysis decides the well-being and performance of a basic organization by

taking a gander at key numbers and economic indicators. The object is to distinguish
fundamentally solid companies or industries and fundamentally powerless companies or
industries. Investors go long (obtaining with the desire that the stock will ascend in
esteem) on the companies that are solid, and short (offering shares that you accept will
drop in an incentive with the desire for repurchasing when at a lower value) the
companies that are powerless. This strategy for security analysis is thought to be the
inverse of specialized analysis, which forecasts the bearing of costs through the analysis
of historical market information, for example, cost and volume. Fundamental analysis
utilizes genuine, open information in the assessment a security's esteem. Albeit most
examiners utilize fundamental analysis to esteem stocks, this technique for valuation can
be utilized for pretty much any kind of security. For instance, an investor can perform
fundamental analysis on a security's an incentive by taking a gander at economic factors,
for example, loan fees and the general condition of the economy. He can likewise take a
gander at information about the bond guarantor, for example, potential changes in FICO
assessments. For stocks and value instruments, fundamental analysis utilizes incomes,
profit, future development, return on value, overall revenues, and other information to
decide an organization's hidden esteem and potential for future development. As far as
stocks, fundamental analysis centers on the budgetary proclamations of the organization
being assessed. A standout amongst the most celebrated and effective fundamental
examiners are the purported "Oracle of Omaha," Warren Buffett, who is notable for
effectively utilizing fundamental analysis to pick securities.
Fundamental analysis includes

a. Economic Analysis
b. Industry Analysis
c. Company Analysis
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COMPANY ANALYSIS
After the economic Analysis and industry Analysis conditions, the company analysis is
required to determine its financial health. This is usually done by studying the company's
financial statements such as income statement & balance sheet Cash flow Statement.
From these statements many useful ratios can be calculated. The most important ratios
are under five main categories: profitability, price, liquidity, leverage, and efficiency.
When we are doing ratio analysis on a company, the ratios are compared to other
companies ratio within the same or similar industry to get a feel for what is considered
"normal.
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UltraTech Cement
UltraTech Cement Limited is India’s largest manufacturer of cement and it ranks top in
the world’s leading cement makers. UltraTech Cement Companies vision is to be ‘The
Leader’ in Building Solutions. The company has a total consolidated capacity of 102.75
million tonnes per annum (MTPA) of grey cement. UltraTech has very a strong presence
in various international markets such as Bangladesh, UAE, Sri Lanka and Bahrain.
Ultra Tech is a founding member of the Global Cement & Concrete Association
Holcim holds a little over 50% equity in ACL
Ultra Tech Cement company operates total 20 integrated units, and 26 grinding units,
seven buJK terminals and one clinkerisation plant for grey cement, one integrated white
cement unit, two wallcare putty plants and over 100 RMC plants. UltraTech has a dealer
and retailer network of over 80,000 partners across the whole country, with a market
reach of more than 80% Indian overall cities and towns.
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Shree Cement
Shree Cement Limited is a Emerging cement company. The company's principal

products/services are cement and clinker. Shree Cements company's manufacturing or
producing operations are spread over North and East India across approximately six
states. It has a cement production total capacity of approximately 25.6 million tons per
annum. The company has its operations in Rajasthan, Uttarakhand, Bihar, Haryana,
Chhattisgarh and Uttar Pradesh. The company's brands include Shree Jung Rodhak,
Bangur and Rockstrong. The company is operating a separate trading division catering
to third party to the buyers and the sellers. They are produce synthetic gypsum to replace
use of natural gypsum in cement manufacturing. Shree Global Pte.
Ltd. is the subsidiary of the company.
20
Ramco Cement
Ramco Cements Limited is the most recognizable company of the Ramco Group, it is a
well-known business group of South India. It has its headquartered at Chennai. The most
important product of the Ramco cement company is Portland cement, which produced in
eight state-of-the art production facilities that have Integrated Cement plants and
Grinding units with a current total production volume of 16.69 MTPA (out of which
Satellite Grinding unit’s capacity alone is 4.20 MTPA). Ramco Cement company is the
top fifth largest cement producer among the country. Ramco Super Grade is the very
popular cement brand in South India. The company produces Ready Mix Concrete and
Dry Mortar products, and operates one of the largest wind farms in the India.
21
JK Cement
JK Cement Ltd is an affiliate of the multi-disciplinary industrial conglomerate JK

Organization which was founded by Lala Kamlapat Singhania. For over four decades, JK
Cement has partnered India's multi-sectoral infrastructure needs on the strength of its
product excellence, customer orientation and technology leadership The Company has
over four decades of experience in cement manufacturing. JK Cements activities initiated
with business generation at our first dark bond plant at Nimbahera in the territory of
Rajasthan in May 1975. Therefore the Company likewise set up 2 additional units in
Rajasthan at Mangrol and Gotan. In the year 2009 the Company make their impression
by setting up a green-field unit in Muddapur, Karnataka giving it access to the business
sectors of south-west India. In year 2014, the organization further expanded its ability in
the north with brownfield development of 1.5 MnTPA in corporated unit at Mangrol and
split pounding unit of 1.5 MnTPA at Jhajjar. Today JK Cement has an installed grey
cement capacity of 10.5 MnTPA making it one of the leading manufacturers in the
country.
22
Birla Corporation
Birla Corporation Limited is the most recognized Company of the M.P. Birla Group.
Formed as Birla Jute Manufacturing Company Limited in 1919, it was Late Mr. Madhav
Prasad Birla who set up the Birla Corp.. As Chairman of the Company, he changed it
from a maker of jute merchandise to a main multi-item organization with far reaching
exercises. Under the initiative of Mrs. Priyamvada Birla, the Company able to cross the
Rs. 1,300 - crore turnover mark and the name of the company was renamed as Birla
Corporation Limited in 1998.
After the death of chairman Mrs. Priyamvada Birla, the Company kept on uniting as far
as of profitability, competitiveness productivity, intensity and development under the
initiative of Mr. Rajendra S. Lodha, late Chairman of the M.P. Birla Group. Under his
authority, the Company posted its best ever brings about the years finished 31.3.2006,
31.3.2007 and 31.3.2008. The Company kept on account great development in 2008-09
and 2009-10.
23
Heidelberg Cement
Heidelberg Cement Group is a worldwide market leader in aggregates and a conspicuous

player in the fields of cement, concrete and other downstream, exercises positioning as
one of the world’s biggest manufacturers of building materials. The Group employs
52,600 manpower at 2500 areas in excess of 40 countries. Although such products usually
go un-noticed many a time, these are an integral part of day to day lives be it homes,
offices, factories, schools, streets, motorways, bridges, tunnels, water supply and sewage
systems. Making us proud it also creates us more responsible to continuously deliver
products of highest standard that would over the coming years perform exceptionally
under all weather conditions.
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RATIO ANALYSIS
Price to Earnings Ratio (P/E Ratio):
The price to earnings ratio (P/E ratio) is the most important ratio which calculate by
dividing market price per share to earnings per share. This is an valuation ratio of a
company's current price per share compared to its earnings per share. Other name of p/e
ratio is “earnings multiple” or “price multiple”. This Price earnings ratio has several
Weaknesses but it is still the most acceptable method to evaluate prospective
investments. It is calculated by dividing Market Value per Share to Earnings per Share
(EPS) . P/E ratio helps the investors to decide whether to buy shares of a particular
company or not to buy. It is calculated to estimate the appreciation in the market value of
equity shares.
Price to Earnings Ratio = Market price per share /Earning per share
Table no: 1 Price to Earnings Ratio

(In Times)
Year 2019 2018 2017 2016 2015

UltraTech 58.82 48.83 40.30 35.78 37.64
Cement
Shree 73.26 40.70 47.20 29.10 96.10
Cement
Ramco 33.7 30.80 24.40 18.70 30.70
Cement
22.9 24.90 38 95.50 34.30
JK Cement
15.81 35.68 25.92 16.63 17.87
Birla Corp.
Heidelberg 17.13 24.21 37.08 51.93 28.42
Cement
25
(Chart 1)
P/E RATIO
120
100
TIMES
80
2019
2018
60
2017
40 2016
2015
20
0
UltraTech Shree Ramco JK Cement Birla Corp. Heidelberg
Cement Cement Cement Cement
(From Table no. 1)
Analysis
P/E ratio of UltraTech Cement is increasing every year from 2015 to 2019 it is
continuously increasing it means they are performing good and investors are
assuming there is a future growth in stock that’s why they are buying it.
Shree cements P/E Ratio has increased in 2019 it was around 40.27 in 2018 & 47.20
in 2017 it has increase 50% as compared to last year Investors are finding Good
future Growth in near future because of less production cost due to Captive Power
Plant & they are Trying to reduce Operating Expenses.
Ramco Cements P/E Ratio has not much fluctuation but it is increasing since past 4
years Ramco Cements P/E ratio is better than JK Cement & it has less Risk so
Investors Are buying this stock.
Birla Corp & Heidelberg Cements P/E Ratio is decreasing we can see that in Graph
Birla Corps has decreased from last year and Heidelberg P/E Is Decreasing from
2017so there is not much Future Growth in stock.
26
Earning Per Share
Earnings per share or we can say basic earnings per share is calculated by substracting
preferred dividends from net income and dividing by the weighted average common
shares outstanding. The earnings per share formula is
Earning per Share = Net Income – Preferred Dividends

Weighted Average Common Shares Outstanding
Table no: 2 Earnings Per Share Ratio

(Per Share)
Year 2019 2018 2017 2016 2015

UltraTech
89.48 81.27 95.74 86.37 73.44
Cement
273.0 397.33 384.39 328.13 122.38
Shree Cement
Ramco
21.00 23.00 27.00 23.00 10.00
Cement
45.28 48.89 30.14 14.52 22.44
JK Cement
17.89 14.95 27.79 20.43 22.78
Birla Corp.
Heidelberg 9.74 5.88 3.36 1.56 2.63
Cement
27
(Chart 2)
Earning Per Share

450
400
350
Price Per Share
300
2019
250
2018
200
2017
150
2016
100 2015
50
0
(From Table no. 2)
Analysis
UltraTech cements EPS Ratio does not have high fluctuations it means they are
generating earnings every year it is showing less risk for investors but shree cement
have high EPS ratio as compared to UltraTech cements So according to EPS it’s good
to invest in Shree cement.
Other Four Companies Ramco Cement, JK cement, Birla Corp. and Heidelberg has
very less EPS so they will give very less interest to their shareholders.
According to EPS Graph it is good to invest in Shree cement they are generating
more profit from they are in position to pay dividend to their shareholders.
28
Liquidity Ratios
Liquidity is the ability to convert assets into cash quickly and cheaply. Liquidity ratios
which is current ratio & Quick ratio are very useful when they are used in comparative
form. This analysis may be internal or external.
I. Current Ratio: -
The current ratio is a liquidity ratio that measures a company’s ability to pay a short-term
and long-term obligation. The formula for calculate the company’s current ratio is
Current Ratio= Current Asset/ Current Liabilities
Table no: 3 Current Ratio

(RATIO)
Year 2019 2018 2017 2016 2015

UltraTech 0.97 0.96 1.55 0.86 0.90
Cement
2.01 1.92 1.65 1.56 1.61
Shree Cement
0.67 0.70 0.70 0.88 0.83
Ramco Cement
1.34 1.32 1.18 1.29 1.22
JK Cement
1.62 1.79 2.03 2.61 3.65
Birla Corp.
Heidelberg
0.97 0.77 0.62 0.58 0.79
Cement
29
(Chart 3)
4 Current Ratio
3.5
3
RATIO
2.5
2019
2 2018
1.5 2017
1 2016
0.5 2015
0
(From Table no. 3)

Analysis
UltraTech Cements Current ratio has very less fluctuation it was moving in range of
0.90 to 0.97 since past 5 yrs they have made good Asset Management.
Shree Cements Current Ratio is Increasing Every year it means they are trying to
reduce their liability & Investing in Assets.
Ramco Cements &JK Cements Current ratio has not much Fluctuation so both are
doing Good but JK Cements CR is more than Ramco Cement in 2019 JK Cements
Current Ratio is 1.34 while Ramco Cements 0.67 Ramco Cements having more
liabilities as compare to their Asset.
Birla Corp.s Current Ratio is high as compared to Heidelberg Cement but if we look at
past 5 yrs data it has decreased from 3.65 to 1.62 while Heidelberg’s Ratio is
increasing Every year it’s indicating future growth in stock.
30
II. Quick ratio
The quick ratio is an indicator of a company’s short-term liquidity position and measures
a company’s ability to meet its short-term obligations with its most liquid assets.
Quick ratio = Current Asset- Inventory/ Current Liabilities
Table no: 4 Quick Ratio

(RATIO)
Year 2019 2018 2017 2016 2015

UltraTech
0.69 0.68 1.27 0.66 0.59
Cement
1.21 1.39 0.99 0.86 0.98
Shree Cement
Ramco
0.40 0.40 0.42 0.51 0.47
Cement
0.94 0.87 0.75 0.89 0.77
JK Cement
1.09 1.25 1.41 2.03 2.79
Birla Corp.
Heidelberg 0.79 0.62 0.43 0.39 0.59
Cement
31
(Chart 4)
3
Quick Ratio
2.5
2
RATIO
2019
1.5 2018
2017
1
2016
0.5 2015
0
(From Table no. 4)

Analysis
Quick ratio of UltraTech cement is more than 0.5 but less than 1 in past 2 yrs.
only shree cement &Birla Corp.s has a Quick ratio more than 1.
Shree Cement has high Quick ratio as compared to UltraTech Cement it means have
more to meet their short-term Obligations.
Ramco Cements current & Quick ratio is less than 1 it means company is facing
problem in meeting their short-term obligation JK Cement is better to invest as
compare to Ramco cement.
If we Compare Birla Corp. & Heidelberg Cement Birla Corp. is in good condition to
meet their short-term obligations.
We can see that Birla Corp. Quick ratio is decrease from 2015 to 2019 it means
decrease in the current asset and there is problem in inventory management.
32
Profitability Ratio: -
This ratio is used to evaluate the company’s ability to generate income as compared to its
expenses and other cost associated with the generation of income during a particular
period. This ratio represents the final result of the company
I. Net Profit Ratio
Net Profit Ratio = Net profit*100

Sales
Table no: 5 Net Profit Ratio

(Percentage)
Year 2019 2018 2017 2016 2015

UltraTech 6.87 7.49 10.99 9.99 8.78
Cement
8.11 14.07 15.58 20.73 6.60
Shree Cement
9.83 12.61 16.43 15.52 6.64
Ramco Cement
6.52 7.44 5.61 2.85 4.68
JK Cement
3.11 3.09 6.39 4.80 5.46
Birla Corp.
Heidelberg
7.04 4.43 2.14 2.91 -3.36
Cement
33
(Chart 5 )
Net Profit Ratio

25
20
Percentage
15 2019
2018
10 2017
2016
5 2015
0
(From Table no. 5)
Analysis
UltraTech Cements Net Profit is Decreasing since past 2 Years because of high
competition in market. Shree cements net profit was 14.07 in 2018 & it was 7.49 of
UltraTech cement if we look at current years position Shree Cements net profit has
decreased but still it is more than UltraTech Cement.
Ramco Cements Net Profit is also decreasing but if we compare to JK Cement was
high in 2019 Ramco Cements net profit is 9.83 while JK Cements 6.52.
Birla Corp.s. Net profit is constant since 2018 they are trying to maintain their
position. Heidelberg Cements Net Profit is Raising As compare to last 3 years this
company is good to Invest. It doesn’t have High risk.
34
II. Gross Profit Ratio (GP ratio)
It shows the relationship between gross profit and total net sales revenue. It is a popular
Ratio to calculate the operational performance of the business. The GP ratio is
calculated by dividing the gross profit of company by net sales.
Gross Profit Ratio = Goss profit *100

Sales
Table no: 6 Gross Profit Ratio

(Percentage)
Year 2019 2018 2017 2016 2015
12.63 13.82 15.49 14.04 13.34

UltraTech Cement
10.75 16.00 15.10 10.50 6.49
Shree Cement
14.14 18.31 23.04 22.04 12.71
Ramco Cement
12.36 12.51 13.77 10.18 9.51
JK Cement
5.80 5.27 6.70 4.16 4.61
Birla Corp.
13.87 10.46 7.97 9.03 1.07
Heidelberg Cement
35
(Chart 6)
Gross Profit Ratio

25
20
Percentage
2019
15
2018
10 2017
2016
5 2015
0
UltraTec Shree Ramco JK Cement Birla Corp. Heidelberg
h Cement Cement Cement
Cement
(From Table no. 6)
Analysis
Gross profit of UltraTech Cement is decreasing in year 2018&2019 but shree
cements GP has High Reduction in 2019 As compare to 2018. It’s because their
Expenses has increased.
JK Cements GP is constant since 2018 while Ramco Cement GP has decreased but
we can see that in Graph it is more than JK Cement so there is a future growth in
the stock of Ramco cement in near Future.
Heidelberg Cements GP has increased while Birla Corp.. GP does not Have much
fluctuation in 5 years so it is good to invest in Heidelberg Cement because in
current year 2019 Heidelberg cements GP is 13.87
While Birla Corp.s GP is 5.07 it is more than 100%. Heidelberg has high risk but
Birla Corp. has less risk.
36
III. Return on Equity: -
Return on equity the formula for return on equity is net income divided by its
average stockholder’s equity ROE is useful in comparing the profitability of a
company to that of other firms in the same industry. The higher the return on
equity, the more efficient the company’s operation are making use of those funds.
ROE = Net Income / Avg Stockholder’s Equity
Table no: 7 Return on Equity

(Percentage)
Year 2019 2018 2017 2016 2015
8.78 8.60 10.97 10.95 10.68

UltraTech Cement
9.90 15.55 17.39 16.69 8.07
Shree Cement
11.34 13.74 17.35 18.05 9.16
Ramco Cement
11.23 15.92 11.26 5.92 9.53
JK Cement
3.26 2.78 6.74 5.80 6.70
Birla Corp.
Heidelberg 18.84 12.72 7.88 3.95 6.92
Cement
37
(Chart 7)
20
ROE RATIO
18
16
Percentage
14
12 2019
10 2018
8 2017
6 2016
4 2015
2
0
UltraTec Shree Ramco JK Cement Birla Corp. Heidelberg
h Cement Cement Cement
Cement
(From Table no. 7)
Analysis
UltraTech Cement has very less fluctuation In Return on Equity Ratio as compared
to Shree Cement it means they are not increasing their ability to generate profit
without needing much capital. Shree Cements ROE has reduced in year 2019 it
shows they have reduced their efficiency as compared to 2016.
Ramco Cement & JK Cement has same ROE ratio in year 2019 but JK Cement has
reduced their efficiency as compared to 2018. In Year 2016 Ramco Cement was in
much better Condition as compare to JK Cement.
Heidelberg Cements ROE has drastically Increased in 2019 it means they are
generating profit without much need of capital they are deploying Shareholders
capital in much better way.
38
I. Return On Capital Employed
Return on capital employed (ROCE) is a ratio that measures a company's profitability and
the efficiency with which its capital is used. In other words, the ROCE ratio helps us to
know how well a company is Creating profits from its capital. The ROCE ratio is
considered an important profitability ratio and is used often by investors for suitable
investment.
The Formula for ROCE Is
Return On Capital Employed = Net Operating Profit

Employed Capital
Table no: 8 Return on Capital Employed

(Percentage)
Year 2019 2018 2017 2016 2015
10.69 10.88 13.96 8.78 7.62

UltraTech Cement
11.40 11.36 14.59 13.77 6.50
Shree Cement
12.47 10.16 19.11 10.07 4.30
Ramco Cement
12.59 14.60 13.11 2.25 3.71
JK Cement
5.04 1.72 3.80 3.77 4.03
Birla Corp.
Heidelberg 23.36 16.84 12.28 2.15 3.15
Cement
39
(Chart 8)
ROCE RATIO
25
20
Percentage
2019
15
2018
10 2017
2016
5
2015
0
(From Table no. 8)

Analysis
UltraTech Cement and shree cement is generating good profit from their capital
employed they are generating constant profit from their capital employed since past
two years shree Cement doesn’t return an Attractive Amount on Capital. Both the
company is unable to increase or decreased their capital requirement.
Ramco Cement has Fluctuation in their ROCE ratio it is good stock to invest. They
are able to make strong earnings and control their capital requirement since past 2
years.
JK Cements Roce Ratio has increased rapidly since 2015 it is now generating more
profit from their capital employed.
Birla Corp. has Very less Fluctuation in Their capital Employed they are not
generating good amount of profit as compared to other companies. Heidelberg
Cement has generating good amount of profit from their capital employed it is good
invest in this company as they are giving good amount of returns.
40
Financial Leverage Ratios
The leverage ratio is financial Ratio which indicates the level of debt has incurred by a
business. This ratio helps to know how business has financed in terms of debt or equity.
I. Debt Equity Ratio
The ratio is used to calculate a company's financial leverage. The D/E ratio is a
most important ratio used in Corp. Finance. It is tool which help to know how a
company is financing its operations through debt versus wholly-owned funds.
Debt Equity Ratio = Debt / Equity
Table no: 9 Debt equity Ratio

(Ratio)
Year 2019 2018 2017 2016 2015

UltraTec 0.62 0.63 0.21 0.23 0.34
h
Cement
0.28 0.38 0.16 0.10 0.11
Shree Cement
0.31 0.24 0.30 0.56 0.85
Ramco Cement
0.73 1.02 1.31 1.46 1.47
JK Cement
0.38 0.42 0.58 0.35 0.47
Birla Corp.
Heidelberg
0.33 0.45 0.59 0.83 1.08
Cement
41
(Chart 9)
1.6
Debt Equity Ratio
1.4
1.2
RATIO
1
2019
0.8 2018
0.6 2017
2016
0.4
2015
0.2
0
UltraTech Shree Ramco JK Birla Corp. Heidelberg
Cement Cement Cement Cement Cement
(From Table no. 9)

Analysis
UltraTech Cements Debt Equity Ratio Is Increasing Rapidly from Year 2018 .It
Means They are taking more debt to finance their activity so that company is
Generating More Earnings than it would have without debt Finance. They are
Aggressively Financing their business and doing well.
Shree Cements Debt equity ratio has increased in year 2018 it was around 0.38 this
range is considered as a safe range and it has reduced in year 2019 so Shree cement
is trying to reduce their liability. Stock of this company has less Risk.
Ramco Cement has highest debt in 2015 than they are focusing to reduce their debt
obligations in last 5 yrs. and they are making enough profit to repaying their debt
liability. Ramco cement has enough amounts in their reserves to repay loans. This
means lenders can lend more money to the company as it is safe in terms of payback.
42
JK Cement is trying to reduce their debt because it was Around 1.47 in year 2015
and currently it is o.73 they are generating only 30% profit from their debt so it is
right decision to reduce their debt obligation.
Birla Corp. is performing well in this sector they have average debt obligations
as compared to their equity so they are in good position to generate profit from
their equity.
Heidelberg Cement has reduced their debt in the year 2015 it was around 1.08 and
currently it is only 0.33 they are generating enough cash to meet their obligations. But
since past years it was constant currently, they are not generating enough cash from
operations.
43
II. Interest Coverage Ratio: -
A coverage ratio is a measure of a company’s ability to service its debt and meet its
financial obligation. High the coverage ratio, the easier it will be to make interest
payments on its debt or pay dividends. Coverage ratio can be used to help identify
companies in a potentially troubled financially situation, through a low ratio is not
necessarily an indication that a company is in financial difficulty.
Interest Coverage Ratio = EBIT

. INTEREST
Table no: 10 Interest Coverage Ratio

(Times)
Year 2019 2018 2017 2016 2015

UltraTech 3.28 3.96 7.05 7.05 6.09
Cement
Shree Cement 6.34 14.51 12.83 16.52 4.62
Ramco
14.77 14.19 9.17 4.61 2.84
Cement
2.58 2.41 2.01 1.31 1.55
JK Cement
1.86 1.46 1.86 3.83 3.88
Birla Corp.
Heidelberg
3.82 3.79 2.27 1.42 1.43
Cement
44
(Chart 10)
Interest Coverage Ratio

18
16
14
12
TIMES
2019
10
2018
8 2017
6 2016
4 2015
0
UltraTech Shree Ramco JKCement Birla Corp. Heidelberg
(From Table no. 10)
Analysis
UltraTech Cement Company’s Interest Coverage Ratio is reducing since 2018 it

means their ability to pay interest obligation has decreased.
We can see that in current year 2019 Ramco Cement Having Higher ICR as compared
to other companies it is 14.77
JK Cement & Birla Cement having Lowest ICR it means they are not having enough
profit to pay interest obligations
Heidelberg Cement having constant ICR in 2018 &2019 it means they are not
increasing their earnings to meet interest obligations.
45
LEARNING OUTCOMES
1. My learning from this project is that, I came to know how to do fundamental

analysis.
2. If we want to invest in any company for more than a year so we can use the
fundamental analysis.
3. Fundamental analysis gives you last five years company performance so that we
can check the best company to invest.
4. So if anyone is thinking to do invest in any company for 10 years so they should
have to refer fundamental analysis.
5. Fundamental analysis is a right method to find the value of the company by
examining economic, financial and other qualitative and quantitative factors.
6. It is a good toolbox to reach on conclusion.
7. It is very important when you are doing investment in any company.
46
CONTRIBUTION TO THE ORGANIZATION :
The duration of internship was for 2 months, thus limiting my contribution towards the
organization. But still here was partial contribution from my side:
1. I help my mentor in Managing relationship with clients for their monthly budget
and approvals.
2. Some time I did regularizing and ensuring timely disbursement of monthly

expenses like payroll, reimbursement, recurring payments.
3. Ensured proper compliance and accuracy of financial statements of companies.
4. I also did GST registration and Verification of Financial statements.
47
CONCLUSION
Investment in Shree Cement is better than Ultra Tech Cement. Shree Cements all
Ratios are positive and they are growing every year so it is good to invest in Shree
Cement.
Ramco Cement has High Future Growth than JK Cement. According to P/E ratio
& Net Profit Ratio Investment in Ramco Cement is better than JK Cement.
Ramco Cements all ratios are increasing if we compare it from last year. So it’s
better to invest in Ramco Cements.
Heidelberg Cement Is a growing company and Investment in this company is

better decision as compare to investment in Birla Corporation. All Ratios of
Heidelberg Cement indicating high future growth.
48
REFERENCES
i. Ambiliy, (2009). A study on Fundamental Analysis of Selected IT companies Listed at

NSE. Kochi: Dr. A S AMBILY.
ii. Dr. Kavitha Muthukumaran (2018) "Performance Analysis Of Selected Companies In
Cement Industry Using various models" International Journal of Civil Engineering
and Technology (IJCIET) Volume 9, Issue 3, March 2018, pp. 839–852, Article ID:
iii. IJCIET_09_03_084
iv. Monica, Sowmiya (2016) “Fundamental Analysis on Select Cement
Companies”International Journal of Research in IT and Management (Impact Factor-
5.96) vol.6, issue6, ISSN2231-4334
v. Ahmed s Wafi (2015) " Fundamental Analysis Models in Financial Markets"
vi. Procedia Economics and FinanceVolume 30 Pages 939 – 947
vii. Pankaj Soni (2015) “Fundamental Analysis of Cement sector” International
Conference of Technology and Business Management, PP522-532
viii. Sayed Mohammad (2011) “A Study of Fundamental Analysis of Cement
Sector”International Journal of Business Swot (IJOBS) vol. IV-No.1 ISSN:0975-8836
Websites
ix. https://www.shreecement.com/pdf/annual2017_18.pdf
x. http://ramcocements.in/financial-results.aspx
xi. https://www.jkcement.com/financial_reports
xii. https://www.birlaCorporation.com/annual-report.html
xiii. https://www.heidelbergcement.com/en/reports-and-presentations
xiv. https://www.shreecement.com/pdf/annual2017_18.pdf
49
ANNEXURE
UltraTech Cement
1. Balance sheet of UltraTech Cement

2. Income Statement of UltraTech Cement
Shree Cement
1. Balance sheet of Shree Cement
2. Income Statement of Shree Cement
Ramco Cement
1. Balance sheet of Ramco Cement
2. Income Statement of Ramco Cement
JK Cement
1. Balance sheet of JK Cement
2. Income Statement of JK Cement
Birla Corporation
1. Balance sheet of Birla Corporation
2. Income Statement of Birla Corporation
Heidelberg Cement
1. Balance sheet of Heidelberg Cement
2. Income Statement of Heidelberg Cement
50
*in (Rs. cr.)
BalanceSheet of
Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
UltraTech Cement
Sources of Funds
Total Share Capital 274.64 274.61 274.51 274.43 274.4
Equity Share Capital 274.64 274.61 274.51 274.43 274.4
Share Application
0.65 0 0 0 0
Money
Reserves 27,672.43 25,648.41 23,666.50 21,357.40 18,583.28
Networth 27,947.72 25,923.02 23,941.01 21,631.83 18,857.68
Secured Loans 17,582.02 12,339.88 2,484.40 2,007.66 2,956.53
Unsecured Loans 0 4,226.31 2,731.56 2,998.98 3,555.30
Total Debt 17,582.02 16,566.19 5,215.96 5,006.64 6,511.83
Total Liabilities 45,529.74 42,489.21 29,156.97 26,638.47 25,369.51
Application of Funds
Gross Block 43,153.26 41,235.19 25,613.48 23,876.85 31,782.44
Less: Accum.
5,857.87 4,024.35 2,381.72 1,189.31 10,834.98
Depreciation
Net Block 37,295.39 37,210.84 23,231.76 22,687.54 20,947.46
Capital Work in
1,079.65 1,473.88 878.39 1,415.56 2,073.69
Progress
Investments 7,064.51 6,162.90 7,408.67 5,793.18 5,208.75
Inventories 3,273.62 3,101.50 2,224.99 2,277.61 2,751.41
Sundry Debtors 2,097.59 1,714.20 1,276.17 1,414.89 1,203.19
Cash and Bank Balance 623.96 199.32 2,217.74 2,235.20 213.94
Total Current Assets 5,995.17 5,015.02 5,718.90 5,927.70 4,168.54
Loans and Advances 7,001.73 4,510.36 2,043.37 2,466.59 2,816.51
Total CA, Loans &
12,996.90 9,525.38 7,762.27 8,394.29 6,985.05
Advances
Current Liabilities 12,331.96 11,261.69 9,693.96 11,237.51 8,542.43
Provisions 574.75 622.1 430.16 414.59 1,303.01
Total CL & Provisions 12,906.71 11,883.79 10,124.12 11,652.10 9,845.44
Net Current Assets 90.19 -2,358.41 -2,361.85 -3,257.81 -2,860.39
Total Assets 45,529.74 42,489.21 29,156.97 26,638.47 25,369.51
7,474.40 6,098.15 6,177.58 4,531.96 6,678.79
Contingent Liabilities
Book Value (Rs) 1,017.58 943.98 872.14 788.32 687.22
51
*in (Rs. cr.)
Standalone Profit & Loss

accountUltraTech Cement
Income
Sales Turnover 35,703.50 30,683.93 27,162.42 26,947.14 25,998.86
Excise Duty 0 893.83 3,270.99 3,238.35 3,062.69
Net Sales 35,703.50 29,790.10 23,891.43 23,708.79 22,936.17
Other Income 461.74 397.62 633.03 478.08 371.78
Stock Adjustments 103.86 113.08 -73.13 17.81 110.06
Total Income 36,269.10 30,300.80 24,451.33 24,204.68 23,418.01
Expenditure
Raw Materials 8,139.28 6,397.28 5,315.98 5,338.45 5,027.35
Power & Fuel Cost 7,830.96 5,959.50 3,926.55 4,240.81 4,742.89
Employee Cost 1,926.01 1,706.24 1,413.44 1,343.02 1,218.29
Selling and Admin Expenses 315.15 243.49 180 188.23 0
Miscellaneous Expenses 11,075.69 9,713.39 8,013.38 7,989.49 7,862.67
Total Expenses 29,287.09 24,019.90 18,849.35 19,100.00 18,851.20
Operating Profit 6,520.27 5,883.28 4,968.95 4,626.60 4,195.03
PBDIT 6,982.01 6,280.90 5,601.98 5,104.68 4,566.81
Interest 1,419.15 1,186.30 571.39 511.66 547.45
PBDT 5,562.86 5,094.60 5,030.59 4,593.02 4,019.36
Depreciation 2,010.27 1,763.56 1,267.87 1,297.04 1,133.11
Profit Before Tax 3,552.59 3,331.04 3,762.72 3,295.98 2,886.25
PBT (Post Extra-ord Items) 3,552.59 3,331.04 3,762.72 3,295.98 2,886.25
Tax 1,106.58 1,070.56 1,148.23 928.4 871.52
Reported Net Profit 2,455.72 2,231.28 2,627.72 2,370.16 2,014.73
Total Value Addition 21,147.81 17,622.62 13,533.37 13,761.55 13,823.85
Equity Dividend 288.36 274.52 260.71 293.36 247.09
Corporate Dividend Tax 59.27 55.89 50.28 0 50.28
Per share data
(annualised)
Shares in issue (lakhs) 2,746.43 2,746.14 2,745.08 2,744.05 2,744.05
Earnings Per Share (Rs) 89.42 81.25 95.72 86.37 73.42
Equity Dividend (%) 115 105 100 95 90
Book Value (Rs) 1,017.58 943.98 872.14 788.32 687.22
52
*in (Rs. cr.)
Balance Sheet of Mar '19 Mar '18 Mar '17 Mar '16 Jun '15
Shree Cements
Sources of Funds
Reserves 9,562.55 8,861.99 7,663.30 6,810.69 5,241.56
Net worth 9,597.39 8,896.83 7,698.14 6,845.53 5,276.40
Secured Loans 2,776.99 2,376.13 685.3 726.49 616.36
Unsecured Loans 0 1,017.86 607.18 0 0
Total Debt 2,776.99 3,393.99 1,292.48 726.49 616.36
Application of Funds
Gross Block 8,823.79 6,538.65 4,629.67 3,868.86 8,592.12
Less: Accum. 4,348.12 2,949.47 2,030.55 818.69 5,587.79
Depreciation
Net Block 4,475.67 3,589.18 2,599.12 3,050.17 3,004.33
Capital Work in 1,121.11 1,427.15 710.44 264.5 511.1
Progress
Investments 4,443.88 5,434.33 4,042.60 3,030.47 1,662.61
Inventories 1,589.05 1,569.02 1,314.50 815.19 918.86
Sundry Debtors 732.4 459.25 335.12 328.62 476.39
Cash and Bank Balance 307.78 120.9 111 83.04 307.5
Loans and Advances 2,523.36 2,542.00 2,053.33 1,891.29 1,117.06
Total CA, Loans & 5,152.59 4,691.17 3,813.95 3,118.14 2,819.81
Advances
Provisions 9.27 8.55 8.13 7.75 88.02
Net Current Assets 2,333.72 1,840.16 1,638.46 1,226.88 714.72
Total Assets 12,374.38 12,290.82 8,990.62 7,572.02 5,892.76
1,105.30 1,505.35 1,833.18 746.68 746.86
Contingent liabilities
Book Value (Rs) 2,754.92 2,553.83 2,209.75 1,965.00 1,514.59
53
*in (Rs. cr)
Income Statement
Mar '19 Mar '18 Mar '17 Mar '16 Jun '15
of Shree Cement
Income
Sales Turnover 11,722.00 10,159.53 9,661.66 6,189.96 7,176.84
Excise Duty 0 326.43 1,067.36 676.32 723.27
Net Sales 11,722.00 9,833.10 8,594.30 5,513.64 6,453.57
Other Income 70.56 391.19 364.19 676.16 102.39
Stock Adjustments 30.61 -1.29 53.48 -3.28 79.1
Total Income 11,823.17 10,223.00 9,011.97 6,186.52 6,635.06
Expenditure
Raw Materials 1,576.91 1,367.38 1,277.61 848.6 1,061.55
Power & Fuel Cost 2,745.04 1,979.65 1,444.27 1,122.95 1,579.82
Employee Cost 677.82 588.05 537.18 369.86 455.03
Selling and Admin
96.2 62.54 81.5 53.69 0
Expenses
Miscellaneous
4,003.82 3,361.41 2,794.05 1,708.35 2,092.42
Expenses
Total Expenses 9,099.79 7,359.03 6,134.61 4,103.45 5,188.82
Operating Profit 2,652.82 2,472.78 2,513.17 1,406.91 1,343.85
PBDIT 2,723.38 2,863.97 2,877.36 2,083.07 1,446.24
Interest 246.98 135.27 129.42 75.77 120.63
PBDT 2,476.40 2,728.70 2,747.94 2,007.30 1,325.61
Depreciation 1,391.68 899.4 1,214.71 827.57 924.78
Profit Before Tax 1,084.72 1,829.30 1,533.23 1,179.73 400.83
Extra-ordinary items 0 0 0 0 16.65
PBT (Post Extra-ord
1,084.72 1,829.30 1,533.23 1,179.73 417.48
Items)
Tax 130.38 442.98 191.7 33.12 -8.85
Reported Net
951.05 1,384.18 1,339.11 1,143.13 426.33
Profit
Total Value
7,522.88 5,991.65 4,857.00 3,254.85 4,127.27
Addition
Equity Dividend 191.6 153.28 404.11 132.38 83.61
Corporate Dividend
39.38 31.2 82.27 26.95 15.85
Tax
Shares in issue
348.37 348.37 348.37 348.37 348.37
(lakhs)
Earnings Per Share
273 397.33 384.39 328.13 122.38
(Rs)
Equity Dividend (%) 600 500 1,400.00 240 240
Book Value (Rs) 2,754.92 2,553.83 2,209.75 1,965.00 1,514.59
54
*in (Rs. cr)
Balance sheet of Ramco

Cements
Sources of Funds
Reserves 4,436.55 4,018.62 3,717.70 3,068.82 2,621.38
Net worth 4,460.11 4,042.18 3,741.51 3,092.63 2,645.19
Secured Loans 1,414.76 998.95 1,138.14 1,071.69 1,629.09
Unsecured Loans 0 0 0 688.58 634.54
Total Debt 1,414.76 998.95 1,138.14 1,760.27 2,263.63
Application Of Funds
Gross Block 8,588.20 8,266.36 7,926.54 7,415.99 7,106.54
Less: Accum. Depreciation 3,212.29 2,968.25 2,743.53 2,511.09 2,231.02
Net Block 5,375.91 5,298.11 5,183.01 4,904.90 4,875.52
Capital Work in Progress 852.59 174.92 120.26 0 262.66
Investments 174.77 159.27 148.32 365.37 355.83
Inventories 559.67 559.94 575.43 549.02 520.58
Sundry Debtors 489.97 442.31 554.9 468.48 380.22
Cash and Bank Balance 92.76 119.41 118.08 90.77 61.85
Total Current Assets 1,142.40 1,121.66 1,248.41 1,108.27 962.65
Loans and Advances 562.54 336.46 308.9 499.79 613.62
Total CA, Loans & Advances 1,704.94 1,458.12 1,557.31 1,608.06 1,576.27
Provisions 40.98 57.08 50.12 43.77 162.32
Net Current Assets -528.4 -591.17 -571.94 -564.21 -585.19
Total Assets 5,874.87 5,041.13 4,879.65 4,706.06 4,908.82
Contingent Liabilities 2,538.84 1,522.67 0 1,269.42 1,678.15
Book Value (Rs) 189.33 171.59 157.16 129.9 111.11
55
*in (Rs. cr.)
Profit & Loss
account Ramco ltd
Income
Sales Turnover 5,146.27 4,566.31 4,564.23 4,153.40 4,181.90
Excise Duty 0 159.95 614.69 557.65 537.01
Net Sales 5,146.27 4,406.36 3,949.54 3,595.75 3,644.89
Other Income 38.6 36.64 43.51 91.34 86.88
Stock Adjustments -18.3 16.1 -14.94 -9.94 -3.21
Total Income 5,166.57 4,459.10 3,978.11 3,677.15 3,728.56
Expenditure
Raw Materials 1,101.23 996.08 872.18 769.38 910.1
Power & Fuel Cost 1,057.32 729.07 516.41 526.97 704
Employee Cost 329.49 303.98 277.73 259.23 228.68
Other Manufacturing
1,285.02 1,014.39 811.9 72.08 68.66
Expenses
Selling and Admin
42.77 34.92 32.7 23.39 0
Expenses
Miscellaneous
285.77 244.59 229.03 875.79 1,017.00
Expenses
Total Expenses 4,101.60 3,323.03 2,739.95 2,526.84 2,928.44
Operating Profit 1,026.37 1,099.43 1,194.65 1,058.97 713.24
PBDIT 1,064.97 1,136.07 1,238.16 1,150.31 800.12
Interest 50.87 59.21 103.52 180.23 193.81
PBDT 1,014.10 1,076.86 1,134.64 970.08 606.31
Depreciation 298.52 292.2 284.49 267.04 249.88
Profit Before Tax 715.58 784.66 850.15 703.04 356.43
PBT (Post Extra-Ord
715.58 784.66 850.15 703.04 356.43
Items)
Tax 209.69 229 200.86 144.78 114.08
Reported Net Profit 505.89 555.66 649.29 558.26 242.35
Equity Dividend 85.28 70.75 0 71.49 35.75
Corporate Dividend
0 14.4 0 14.56 7.27
Tax
Shares in issue
2,355.77 2,355.77 2,380.77 2,380.77 2,380.77
(lakhs)
Earnings Per Share
21.47 23.59 27.27 23.45 10.18
(Rs)
Equity Dividend (%) 300 300 300 300 150
Book Value (Rs) 189.33 171.59 157.16 129.9 111.11
56
*in (Rs. cr.)
Balance Sheet of J.
K. Cement
Sources of Funds
Reserves 2,815.54 2,077.42 1,801.60 1,644.48 1,576.61
Networth 2,892.81 2,147.35 1,871.53 1,714.41 1,646.54
Secured Loans 2,077.62 2,138.44 2,449.66 2,461.76 2,380.75
Unsecured Loans 38.68 44.78 0 42.32 41.4
Total Debt 2,116.30 2,183.22 2,449.66 2,504.08 2,422.15
Application of
Funds
Gross Block 5,169.16 4,947.20 4,884.36 4,523.96 4,217.34
Less: Accum.
1,533.69 1,350.51 1,204.33 1,033.12 879.38
Depreciation
Net Block 3,635.47 3,596.69 3,680.03 3,490.84 3,337.96
Capital Work in
543.78 87.81 104.82 0 191.18
Progress
Investments 1,004.71 634.52 535.64 424.3 314.51
Inventories 570.53 531.61 498.07 474.24 509.79
Sundry Debtors 205.63 187.97 148.13 165.69 139.4
Cash and Bank
485.66 543.52 426.92 475.87 407.71
Balance
Total CA, Loans &
1,768.37 1,664.78 1,522.59 1,611.46 1,504.38
Advances
Provisions 44.86 43.92 29.44 66 64.26
Total CL &
1,943.21 1,653.24 1,521.89 1,460.51 1,279.34
Provisions
Net Current Assets -174.84 11.54 0.7 150.95 225.04
Total Assets 5,009.12 4,330.56 4,321.19 4,066.09 4,068.69
Contingent
1,533.04 1,158.87 1,122.68 964.02 1,058.40
Liabilities
Book Value (Rs) 374.38 307.08 267.64 245.17 235.46
57
*in (Rs. cr.)
Income Statement
of JK Cement
Income
Sales Turnover 4,981.30 4,758.18 4,379.83 4,127.09 3,870.76
Excise Duty 0 166.96 624.29 566.77 522.16
Net Sales 4,981.30 4,591.22 3,755.54 3,560.32 3,348.60
Other Income 80.52 111.97 80.32 49.99 59.93
Stock Adjustments 4.72 -42.01 9.77 -8.29 0.95
Total Income 5,066.54 4,661.18 3,845.63 3,602.02 3,409.48
Expenditure
Raw Materials 1,175.52 1,046.81 915.07 913.68 797.12
Power & Fuel Cost 1,052.32 889.69 625.26 740.79 793.46
Employee Cost 353.5 325.46 275.46 231.45 202.54
Other Manufacturing
0 0 0 93.23 83.52
Expenses
Selling and Admin
47.4 60 32.58 32.67 0
Expenses
Miscellaneous
1,547.17 1,466.59 1,223.51 1,021.22 1,017.66
Expenses
Total Expenses 4,175.91 3,788.55 3,071.88 3,033.04 2,894.30
Operating Profit 810.11 760.66 693.43 518.99 455.25
PBDIT 890.63 872.63 773.75 568.98 515.18
Interest 222.09 245.35 272.91 269.59 219.42
PBDT 668.54 627.28 500.84 299.39 295.76
Depreciation 194.37 186.27 176.1 156.28 136.6
PBT (Post Extra-ord
474.17 441.01 324.74 143.11 159.16
Items)
Tax 148.68 97.85 113.65 41.59 2.23
Preference Dividend 0 0 -5.56 0 0
Equity Dividend 69.93 55.94 27.97 27.97 27.97
Corp.orate Dividend
14.37 11.39 5.69 5.69 5.69
Tax
Shares in issue
772.68 699.27 699.27 699.27 699.27
(lakhs)
Earnings Per Share
42.05 48.89 30.94 14.52 22.44
(Rs)
Equity Dividend (%) 100 100 80 40 40
58
*in (Rs. cr)
Balance Sheet of
Birla Corporation
Sources Of Funds
Reserves 4,148.96 4,051.44 3,097.12 2,632.22 2,539.90
Networth 4,225.97 4,128.45 3,174.13 2,709.23 2,616.91
Secured Loans 1,619.29 1,719.48 1,849.06 887.12 1,192.44
Unsecured Loans 0 29.43 7.66 50.55 50.17
Total Debt 1,619.29 1,748.91 1,856.72 937.67 1,242.61
Application Of
Funds
Gross Block 3,667.96 3,488.27 2,304.90 3,387.89 3,144.34
Less: Revaluation
0 0 0 0 7.2
Reserves
Less: Accum.
581.55 437.21 293.47 1,362.96 1,221.77
Depreciation
Net Block 3,086.41 3,051.06 2,011.43 2,024.93 1,915.37
Capital Work in
57.97 98.13 61.42 0 122.7
Progress
Investments 3,172.92 3,060.83 2,926.33 1,457.41 1,317.90
Inventories 588.16 528.41 490.33 567.14 552.11
Sundry Debtors 190.09 158.95 89.49 94.24 88.13
Cash and Bank
107.46 200.08 300.72 362.24 466.77
Balance
Total Current Assets 885.71 887.44 880.54 1,023.62 1,107.01
Total CA, Loans &
1,483.15 1,455.39 1,418.03 1,608.51 1,628.10
Advances
Provisions 42.27 38.53 46.19 107.27 104.87
Net Current Assets -472.04 -332.68 31.66 101.32 503.56
Total Assets 5,845.26 5,877.34 5,030.84 3,583.66 3,859.53
Contingent
459.99 56.31 63.67 281.35 281.97
Liabilities
Book Value (Rs) 548.79 536.12 412.2 351.82 339.83
59
*in(Rs. Cr)
Profit & Loss
account of Birla Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
Corp..
Income
Sales Turnover 4,423.58 3,865.43 3,841.02 3,768.42 3,692.17
Excise Duty 0 141.46 495.9 493.43 482.28
Net Sales 4,423.58 3,723.97 3,345.12 3,274.99 3,209.89
Other Income 81.85 71.24 130.76 132.21 143.1
Stock Adjustments -16.82 -34.12 -25.27 14.14 39.99
Total Income 4,488.61 3,761.09 3,450.61 3,421.34 3,392.98
Raw Materials 1,287.33 927.4 868.65 880.16 809.52
Power & Fuel Cost 980.25 120.38 724.11 774.94 867.51
Employee Cost 273.27 264.51 264.53 245.28 225.48
Other Manufacturing
313.24 1,057.91 292.56 316.99 314.04
Expenses
Selling and Admin
29.62 36.06 19.95 20.88 0
Expenses
Miscellaneous
1,117.53 941 778.5 765.59 731.72
Expenses
Total Expenses 4,001.24 3,347.26 2,948.30 3,003.84 2,948.27
PBDIT 487.37 413.83 502.31 417.5 444.71
Interest 178.06 165.21 139.23 81.59 78.37
PBDT 309.31 248.62 363.08 335.91 366.34
Depreciation 148.53 146.05 147.19 149.03 153.46
PBT (Post Extra-ord
160.78 102.57 215.89 186.88 212.88
Items)
Tax 22.23 -17.4 8.52 29.52 37.44
Reported Net Profit 137.78 115.12 214 157.35 175.44
Equity Dividend 50.05 50.05 46.2 46.2 46.2
Corp.orate Dividend
10.29 10.19 9.41 9.41 9.41
Tax
Shares in issue
770.05 770.05 770.05 770.05 770.05
(lakhs)
Earning Per Share
17.89 14.95 27.79 20.43 22.78
(Rs)
Equity Dividend (%) 75 65 65 60 60
60
*in(Rs. Cr)
Balance Sheet of
Heidelberg Cement Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
India
Sources Of Funds
Reserves 944.57 819.78 740.33 668.31 632.63
Networth 1,171.19 1,046.40 966.95 894.93 859.25
Secured Loans 391.82 469.23 575.19 0 0
Unsecured Loans 0 0 0 740.86 924.89
Total Debt 391.82 469.23 575.19 740.86 924.89
Application Of
Funds
Gross Block 1,754.08 2,099.97 2,072.49 1,901.19 2,563.17
Less: Revaluation
0 0 0 0 12.31
Reserves
Less: Accum.
0 293.94 195.42 0 769.4
Depreciation
Net Block 1,754.08 1,806.03 1,877.07 1,901.19 1,781.46
Capital Work in
0 8.07 6.29 56.05 127.42
Progress
Inventories 167.42 126.89 139.64 178.21 191
Sundry Debtors 25.32 18.8 12.56 25.76 19.14
Cash and Bank
337.67 212.41 14.2 7.77 146.26
Balance
Total Current Assets 530.41 358.1 166.4 211.74 356.4
Total CA, Loans &
941.45 718.72 524.28 657.37 898.52
Advances
Current Liabilities 878.57 778.73 627.68 752.42 811.66
Provisions 253.95 238.46 237.82 226.4 211.6
Total CL &
1,132.52 1,017.19 865.5 978.82 1,023.26
Provisions
Net Current Assets -191.07 -298.47 -341.22 -321.45 -124.74
Total Assets 1,563.01 1,515.63 1,542.14 1,635.79 1,784.14
Contingent
0 38.92 0 300.18 349.02
Liabilities
Book Value (Rs) 51.68 46.18 42.67 39.49 37.92
61
*in (Rs. cr.)
Income Statement of
Heidelberg Cement
Income
Sales Turnover 2,050.53 1,961.96 2,001.85 1,915.92 2,371.38
Excise Duty 0 72.49 284.39 267.57 327.1
Net Sales 2,050.53 1,889.47 1,717.46 1,648.35 2,044.28
Other Income 34.82 19.93 23.69 22.44 74.11
Stock Adjustments 5.18 -13.61 -34.66 9.34 27.72
Total Income 2,090.53 1,895.79 1,706.49 1,680.13 2,146.11
Expenditure
Raw Materials 391.52 423.28 387.27 408.96 518.26
Power & Fuel Cost 504.93 443.9 429.27 452.04 562.41
Employee Cost 123.9 120.15 114.76 105.02 133.73
Selling and Admin
0 16.66 14.7 15.32 0
Expenses
Miscellaneous
552.02 508.51 457.94 445.18 535.45
Expenses
Total Expenses 1,572.37 1,512.50 1,403.94 1,426.52 1,749.85
PBDIT 518.16 383.29 302.55 253.61 396.26
Interest 74.78 74.45 89.77 108.45 138.93
PBDT 443.38 308.84 212.78 145.16 257.33
Depreciation 101.77 101.17 99.15 99.78 137.54
PBT (Post Extra-ord
341.61 207.67 113.63 45.38 119.79
Items)
Tax 120.95 74.49 37.42 9.99 60.26
Equity Dividend 0 45.32 0 0 0
Corporate Dividend
0 9.23 0 0 0
Tax
Shares in issue (lakhs) 2,266.20 2,266.13 2,266.13 2,266.13 2,266.13
Earnings Per Share
9.74 5.88 3.36 1.56 2.63
(Rs)
Equity Dividend (%) 40 25 20 0 0
Book Value (Rs) 51.68 46.18 42.67 39.49 37.92
62
PLAGIARISM REPORT
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Project Report On

Fundamental Analysis On Cement

Under the Guidance of

This is to certify that the project titled, “Fundamental Analysis on Cement

Date: (Signature of the Student)

Sr.no Description Page No.

3 History of Cement Sector 10

7 Data Analysis Tools & Technique 16

Table 1:- Price to Earnings Ratio……………….……………………………………...25

Chart 1:- Price to Earnings Ratio…………………………………………………..….26

The analysis of Cement Industry is the systematic study of the performance of

According to Research Analyst at RNCOS, “The Indian cement industry is expected

Dr. Kavitha Muthukumaran(2018)

Monica, Sowmiya (2016)

(Ahmed s wafi, 2015)

(Mr. Suresh, may 2013)

Richard C. Grimm (2012)

Rajiv Kumar Bhatt (2011)

Dharmendra S Mistry (2011),

NSE REPORT: - (A study on fundamental analysis of selected IT companies

I. To study fundamental analysis of Cement Industry the performances of companies

Market capitalization as on 6th Aug 2019

NEED FOR THE STUDY

SCOPE & LIMITATIONS

i. The study is restricted to secondary data only.

iii. The concept of fundamental analysis can be made clear with

I. Price to Earnings Ratio

II. Earnings Per Share

III. Current Ratio

IV. Quick Ratio

V. Gross Profit Ratio

VI. NET Profit Ratio

VII. Return on Equity

VIII. Return on Capital Employed

IX. Debt Equity Ratio

X. Interest Coverage Ratio

Fundamental analysis decides the well-being and performance of a basic organization by

Fundamental analysis includes

Shree Cement Limited is a Emerging cement company. The company's principal

JK Cement Ltd is an affiliate of the multi-disciplinary industrial conglomerate JK

Heidelberg Cement Group is a worldwide market leader in aggregates and a conspicuous

Price to Earnings Ratio (P/E Ratio):

Table no: 1 Price to Earnings Ratio

Year 2019 2018 2017 2016 2015

Earning per Share = Net Income – Preferred Dividends

Table no: 2 Earnings Per Share Ratio

Year 2019 2018 2017 2016 2015

Earning Per Share

(From Table no. 2)

Current Ratio= Current Asset/ Current Liabilities

Table no: 3 Current Ratio

Year 2019 2018 2017 2016 2015

(From Table no. 3)

Quick ratio = Current Asset- Inventory/ Current Liabilities

Table no: 4 Quick Ratio

Year 2019 2018 2017 2016 2015

(From Table no. 4)

I. Net Profit Ratio