Hero Motocorp limited:-

Formerly Hero Honda, is an Indian multinational motorcycle and

scooter based in New Delhi, India. The company is the largest two
wheeler manufacturer in the world and it has a market share of 46% in
the two wheeler category in India. During 1980s, company introduced
motorcycles that were popular in India for there fuel economy and low
cost. It maintains global industry leadership to date.

Reference of this report on HMCL provided various graphical

representation and diagrams on estimation of net sales, growth % ,
EBITDA, OPM % , PAT, FD EPS , P/E , P/B ,EV/ EBITDA , ROE %, ROCE %,
of 5 financial years ie., Fy 19,20,21,22,23.
Some definitions:
EBITDA- earnings before interest, taxes, depreciation, and
amortization( an indicator of the overall profitability of business)
OPM- other people's money( using borrowed funds to purchase
property rather than paying all cash.)
PAT – Profit after tax
EPS – Earnigs per share (indicates profitability of a company).
P/E – Price to earning ratio
P/B – Price to book ratio.
ROE – Return on equity . ( Measure of financial performance).
ROCE - Return on capital employed ( financial ratio used in assessing
company's profitability and capital efficiency ).
HMCL has strong penetration in semi urban and rural areas in two
wheeler industry. It continues its dominancy in the two wheeler
industry by premetuninization of its products, strong foothold in the
economy, execute motorcycle segments and agrossive products
offering in the premium bikes and scooter sector.

From the report we could see examples of analysing the most suitable
ways of sustain marketing and taking necessary steps to withstand in
the marketing world by considering the current business environment.
They are as follows:
1. HMCL has partnered with Harley Davidson, a global leader in
the premium bike segment to manage Harley Davidson
distribution network in India and develop smaller premium
bikes for Indian market. Partnership with Harley Davidson
will help HMCL in its growth as Harley Davidson was one of
the first premium motorcycle brands to enter India and it is
well known for its stylish models, quality brand, safe and
comfortable travelling capacity etc.

2. Strategic moves to EV markets:

As these are the days of renewable energy, are
people are switching from fuel vehicles to electronic
vehicles. As a step towards eco friendly and anti pollution
initiatives, HMCL is planning to launch electric two wheeler
in FY22. They have invested in Ather energy, a startup.
HMCL is also ready to invest in new ventures where it finds a
technological edge and which could be used as capital for
their electric two wheeler project.
 3. Apart from focusing only in India, HMCL works to expand its
business by focusing on exports. The company has made a
footprint into more than 40 countries from 4 companies in
FY12. HMCL is exploring opportunities for exports in
countries like Columbia, Bangladesh, Nepal, Sri Lanka and
Africa.

4. There are some risks too. In the current situation of covid-19

pandemic, launching cannot take in an effective manner.
Online advertising would help up to a limit but people will
be preferring to travel in cars rather than bikes in order to
avoid direct contact with surroundings. We would suggest
that launching must be extended after the pandemic. The
other risks involve success of rival products in the entry and
executive bike segments can impact HMCL’s market share in
the segment.

These these conclusions are made by analysing the current business

scenario in sales and marketing in the society.

The aggressive launching of scooter model such as destini 125,

pelasure +110 and maestro edge 125 and of bike models such as xpulse
200T, xtreme 200s and xtreme 160s over the past two years put
forward the companies appreciable efforts to drive market. They
continue to launch bikes with new features and models and are
planning to launch every bike in a year for the next four years.
We could see a hopeful outlook of management of HMCL in the light
of covid-19 pandemic. The company expects volume to recover post
normalisation of the economy. The expects its product portfolio to
riches and favourable, given the changing dynamics of the industry
towards premimusation. This will provide insights to the business world
as well as customers.

HMCL has managed to keep its dominance in the executive segment

despite the success of Bajaj auto’s pulsar 125cc bike as we can see from
the estimates on the report by sharekhan.

HMCL’s influence of semi urban and rural areas put forward the idea
that they emphasize over the large section of the society who are
common people who could afford bikes other than more expensive cars.
In rural areas where roads might not have been wide and developed,
people prefer to use two wheeler for transportation and even for their
work necessities.
According to the report, structural demand for two wheeler remain
strong and will drive the growth of post normalisation of the economy
activities, owing for improving personal income, increasing penetration
in the rural economy and two wheeler being the most preferable mode
of personal transportation. There are expectations that two wheeler
industry to end FY21 with a decline of 15.6% y-o-y against a decline of
18.3 % y-o-y YTD FY2021 (April- October) followed by strong 12.2%y-o-y
growth in FY2022 and 9.5 % growth in FY2023 .Due to these factors , a
buy call is given for the stocks.
Star cement :-

This report is about star cements growth and other activities, the
report gives much information about star cements. Star Cement
Limited is the largest cement manufacturer in north east India. Our
plant is spread across 200 hectares of land in the idyllic town of
Lumshnong, a strategic location at Meghalaya that ensures easy
availability of high-grade limestone. Our brand “Star Cement” has
established itself as the most accredited brand of the region on
grounds of both quality and fair pricing. Star Cement Limited is listed
on National Stock Exchange (NSE) and Bombay Stock Exchange
(BSE).

Star Cement Limited is one of the most profitable cement

manufacturers in North East India

• Because of its prudent locational advantage.

• Because of its timely raw material linkage.

• Because of its proactive capacity expansion.

• Because of its expert brand positioning.

Plant:
Star Cement’s 1.0 MTPA integrated cement plant at Lumshnong
(Meghalaya) is proximate to key raw material reserves of limestone,
coal and shale. The company also added 0.67 MTPA cement unit in
Meghalaya, 2.0 MTPA cement unit in Sonapur (Guwahati) and 2
grinding units in West Bengal with a total capacity of 0.67 MTPA
( though trading agreement), aggregating an installed capacity of
4.3 MTPA.

Star Cement Limited (SCL) with a BUY recommendation and a Target

Price of Rs. 115 which implies an upside of 26% from the current
levels. SCL is a leading cement producer in North East India with a
capacity of 4.3 mntpa and strong market position in its key markets.
The company has estimated market share of 23% in the North East
India cement market. Currently the company is in the process of
expanding its existing grinding capacity from 4.3 mntpa to 6.3 mntpa
which will get operational in Q4FY21. Key investment thesis are as
follows. Capacity expansion to drive volume and revenue growth for
the company. SCL is in the process of expanding its present grinding
capacity from 4.3 mntpa to 6.3 mntpa. The unit will get operational
in Q4FY21. The 2 million tonne per annum (mntpa) grinding capacity
is coming at Siliguri, West Bengal in the eastern India which will help
the company to spread it wings in the growing market of eastern
india which currently forms 25% of its total revenue. Strong market
presence in its key market of North East & growing in East India. SCL
is the largest cement producer in North- East India with estimated
market share of 23% in FY20. The North-East region contributes 75%
of total revenue with strong brand visibility which enables the
company to enjoy premium pricing in the region. Integrated nature
of operation with efficient cement plants. SCL integrated nature of
operation supported by captive lime stone mines having sufficient
reserves, 51 MW power plant and 2.8 mntpa clinkerization facility
which adds to its operational effeciency.With proposed set up of new
clinkerization unit (2mntpa) and 15 MW West Heat Recovery System
plant (WHRS) further improvement in operating efficiency will lead to
better margins going forward. Healthy Financials to support future
growth. The Company exhibits a healthy financial position with very
low debt, high interest coverage ratio and strong return ratios.
Robust growth outlook – Initiate with BUY With the coming up of
new grinding capacity in the growing East India market and strong
position in North East India, we expect the company to imrove its
overall market presence in its key regions of operation leading to
higher volume and revenue growth for the company going forward.
The per capita consumption of cement in North East India is about
142 kgs and Eastern india is 203 kg against all India average of
around 225 kgs and global average of around 500 kgs. The result is
that North East and East India is deficient in cement consumption but
increasingly marked by higher income, which is expected to
accelerate the offtake of cement going forward. Further the Eastern
market is growing at 9% CAGR since FY10. Incremental demand for
cement in the region is expected to outpace incremental supply on
the back of rising demand from rural housing, infra and construction
actvities and higher allocation of government funds to the region.

Product & Brand Portfolio:-

Star Cement’s product range includes Ordinary Portland Cement
(OPC 43-Grade) and (OPC 53-Grade) and Portland Pozzolana Cement
(PPC),Portland Slag Cement (PSC) and Anti Rust Cement (ARC) in line
with evolving customer needs. The brand “Star Cement” has
established itself as the most accredited brand of the region on
grounds of both quality and fair pricing. The Company’s commitment
towards producing superior quality Product has helped roped in
prominent institutional customers like L&T, NHPC, Public Works
Departments, Indian Railways and the Ministry of Defense, among
others.

Manufacturing the Company along with its subsidiaries has four

manufacturing units in Meghalaya, one in Assam and two
outsourced units in West Bengal with a cumulative clinker capacity
of 2.80 Mn tonnes per annum (MTPA), cement manufacturing
capacity of 4.3 MTPA and power generation at 51 MW. Star
Cement’s integrated cement plant at Lumshnong (Meghalaya) is
spread across 200 hectares with proximity to key raw materials like
limestone. The Company’s grinding unit at Guwahati and other
outsourcing units in Bengal enjoy a locational advantage in being
proximate to downstream consuming markets.
When we buy a call, you pay the option premium in exchange for the
right to buy shares at a fixed price (strike price) on or before a certain
date (expiration date). Investors most often buy calls when they are
bullish on a stock or other security because it offers leverage. A call
option gives you the right, but not the requirement, to purchase a
stock at a specific price (known as the strike price) by a specific date,
at the option’s expiration. For this right, the call buyer will pay an
amount of money called a premium, which the call seller will receive.
At Star Cement, what we manufacture in our factories is cement/
clinker; what we market in the retail stores is a peace of mind. This is
because what we manufacture today will be tested across the years;
the cost of any under-delivery in the quality of our product could
have extensive implications for our consumers. At Star, we believe
that peace of mind is why customers buy from us, why employees
engage with us, why vendors sell to us, why investors provide us with
risk capital, why bankers lend and why communities support us. Over
the years, we have invested in enhancing this trust quotient through
various initiatives that have been described in this document. The
ability to provide a complete peace of mind can only be consistently
assured if our governance framework is secure, scalable and
sustainable. Long-term At the base of our governance pyramid lies
the discipline of strategic consistency. Over time, this discipline has
helped the Company generate revenue, delta and productivity
visibility across market cycles. Besides, it has enhanced the trust of
our various partners who are assured of how we will respond to
external developments, validating the stability of our responses. At
Star, we have selected to build the business around long-term
patience. This approach has influenced all the investments we have
made in our assets, technologies, brands, people, locations, products
and trade partners. For instance, we invested more in plant
infrastructure and technologies with the perspective that this would
not just provide us with a superior product quality but would be
futureproofed from technology obsolescence and enhance our
productivity across the years. We believe that this approach –
expensive upfront but considerably low cost when seen from a long-
term perspective – has translated into the highest standards of
technology, integrity and competencies at our Company. This
commitment to ‘Do Right’ has translated into business robustness
and stability. Singular focus Controlled growth Board of Directors At
Star, core competence is our biggest insurance against industry
volatility. The Company has not diversified away from its core
business: on the contrary, our increased investments have
strengthened our brand, made it possible to service the growing
appetite of our customers and helped us moderate our capital costs
per tonne, strengthening our competitiveness. At Star, we believe
that business sustainability is generated from controlled growth. The
Company focused on investment through accruals without stretching
the Balance Sheet. The result is that the Company is one of the most
underborrowed per tonne of installed capacity and correspondingly
one of the most profitable margins (EBITDA per tonne) in India’s
cement sector. At Star, we believe that our strategic direction is
largely influenced by our Board of Directors. In view of this, we have
placed a premium on our Board composition, which comprises
professionals and industrialists of repute. These individuals have
enriched our values, knowledge, economic understanding and
strategic bandwidth.

These factors which business depends upon aren’t standstill, they are
very dynamic and ever-changing the needs of customers and new
innovations in the market are a part of the business environment.
The challenge for businesses in this technological era is not to enter
the market but to survive in the market. To survive in the market
means to adapt to the changes as fast as possible. To adapt to the
changes means to be aware of the business environment.

All changes are not negative. If understood and evaluated them, they
can be the reason for the success of a business. It is very necessary to
identify a change and use it as a tool to solve the solve the problems
of the business or populous.

¶For Star, cement is not merely a commodity and therefore, we do

not sell cement, rather we build and sell brands¶

 Star as a Brand have a very high recall value, enabling repeat

customers.
 STAR CEMENT is the most preferred brand in NER and is
witnessing consistent growth in the markets of Bengal, Bihar &
Jharkhand.

¶Further growth in high potential areas by leveraging operational

and financial efficiencies¶

 Seize the growth opportunities in NER, Eastern Region – partner

the government’s initiatives to boost infrastructure.
 Strengthen and expand dealer/distribution network to capture
Eastern markets and deepen penetration into NER.
 Explore and tap new markets to boost margins.
 Grow product portfolio with new, niche and quality brands.
 Set-up capacities to cater to incremental demands of the region.
 Focus on retail services.
 Expand technical services to enhance customer service and brand
building.
 Enhance brand recall through innovative marketing strategies,
more CSR initiatives.
 “By understanding the prominent report of one of the major
leading companies, we can easily declare that knowing about
business environment pays off. Because it is something we must
pay attention otherwise our efforts would be completely waste.”

Thank you!
TM. Wikipedia
Group 2 .
Group Members:
1. Ishaque Muhammed k
2. Anandhu Prasad
3. Ferwen Mary.
4. Salamanul Farisi.
5. Ihsan Shafeeque .