KLE SOCIETY’S

INSTITUTE OF MANAGEMENT STUDIES AND

RESEARCH
VIDYANAGAR-HUBBALLI

(Affiliated to Karnataka University, Dharwad and

Recognized by AICTE, New Delhi)

SUBMITTED BY:
JEEVANKUMAR M M
MBA III SEM
REG.NO: P02BO22M015115
DIV: B

SUBMITTED TO:
Prof. Arunkumar Shetty
 INDEX

PARTICULERS

1 INTRODUCTION TO CEMENT SECTOR

2 INTRODUCTION TO SHREE CEMENT

3 INTRODUCTION TO FUNDAMENTAL ANALYSIS

4 ECONOMIC ANALYSIS

5 INDUSTRY ANALYSIS

6 COMPANY ANALYSIS

7 VIRTUAL TRADES

8 CONCLUSION
 INTRODUCTION TO CEMENT INDUSTRY:

The cement sector is a fundamental part of the global construction industry, essential for
building infrastructure, residential, and commercial projects. Cement production involves
extracting raw materials like limestone, clay, and shale, which are then crushed, ground, and
heated in a kiln to form clinker. This clinker is ground with gypsum to produce cement. There
are various types of cement, including Ordinary Portland Cement (OPC) for general
construction, Portland Pozzolana Cement (PPC) for enhanced durability, and specialty
cements like white cement for architectural uses. Major producers, such as Lafarge Holcim,
Heidelberg Cement, Cemex, and Anhui Conch Cement, operate globally, meeting the demand
driven by economic growth, urbanization, and infrastructure development.
The economic contribution of the cement industry is significant, providing materials essential
for infrastructure projects and generating employment while influencing related sectors like
construction and logistics. However, it is also energy-intensive and a major source of CO2
emissions, contributing about 7-8% of global emissions. To address these environmental
concerns, the industry is focusing on sustainability through the development of green
cements, the use of alternative fuels, and the implementation of carbon capture and storage
(CCS) technologies. Additionally, the adoption of digital technologies such as automation and
data analytics is optimizing production efficiency and reducing costs.
Market trends show growing demand in emerging economies due to rapid urbanization and
infrastructure needs. The industry is also experiencing consolidation through mergers and
acquisitions to enhance global reach and operational efficiencies. The cement sector remains
crucial for global development, striving to balance construction demands with sustainable
practices and innovations to reduce its environmental impact while meeting the rising
demand for construction materials worldwide.

Market Size:
Consumption Volume of Cement in India From financial year 2009 to 2022 From the
financial year (FY) 2009 to FY 2022, the consumption volume of cement in India has shown
significant fluctuations. Starting at a high of 500 million metric tons in FY 2009, there was a
sharp decline to 200 million metric tons in FY 2010, which was 40% of the FY 2009
consumption. The following year, FY 2011, saw an increase to 300 million metric tons. The
consumption continued to decline slightly to 230 million metric tons in FY 2012 but began to
steadily increase from FY 2013 to FY 2015, reaching 257 million metric tons.
This upward trend continued with minor fluctuations, peaking at 272 million metric tons in
FY 2016 and 270 million metric tons in FY 2017. There was a significant jump to 349 million
metric tons in FY 2018, followed by a slight decrease to 327 million metric tons in FY 2019.
The highest recorded consumption in this period was 379 million metric tons in FY 2020.
However, this was followed by a decrease to 328 million metric tons in FY 2021 and further
down to 289 million metric tons in FY 2022. This data reflects the volatility and varying
demand in the Indian cement industry over the years.
Introduction to Shree Cement:

Shree Cement, a prominent entity within the Aditya Birla Group, stands as a cornerstone in
the global cement industry, renowned for its exceptional contributions. Established in [insert
year], Shree Cement has emerged as a leader in the manufacturing of grey cement, ready-mix
concrete (RMC), and white cement, solidifying its position as one of India's largest cement
producers. With a robust operational framework comprising [insert number] integrated units,
[insert number] grinding units, [insert number] bulk terminals, and an extensive network of
RMC plants, Shree Cement's market footprint extends across India and beyond,
encompassing regions such as the United Arab Emirates, Bahrain, Bangladesh, and Sri
Lanka.

Comprehensive Product Range:

Shree Cement offers a diverse product portfolio catering to a wide spectrum of construction
needs:
Grey Cement: Ideal for various construction projects.
White Cement: Notable for its architectural applications.
Ready-Mix Concrete (RMC): Providing convenience and efficiency for construction
endeavours.
Specialty Cements: Tailored to meet specific requirements in construction applications.
Market Position and Competitiveness:

Shree Cement's dominance in the industry is underscored by several key factors:

Installed Capacity: With an installed capacity of [insert capacity] million metric tons per
annum (MTPA), Shree Cement ranks among the top cement producers in India.
Product Range: The company's comprehensive product range, including grey cement, white
cement, and RMC, positions it as a versatile and competitive player in the market.
Manufacturing Network: Shree Cement operates [insert number] integrated plants, [insert
number] grinding units, [insert number] bulk terminals, and numerous RMC plants, ensuring
efficient production and distribution across India and key international markets.
Brand Strength: Renowned for its unwavering commitment to quality and innovation, Shree
Cement has cultivated a strong brand presence, bolstering its competitive edge in the
industry.
Financial Stability and Growth: Shree Cement boasts a track record of consistent financial
growth, marked by substantial revenue and profitability, supported by a resilient balance
sheet that facilitates strategic expansions and acquisitions.
Sustainability and Innovation: Shree Cement prioritizes sustainability through initiatives such
as the adoption of advanced technologies, including waste heat recovery systems and
alternative fuels, aligning with global trends and bolstering its reputation as an
environmentally responsible entity.
Strategic Acquisitions: Shree Cement has expanded its market presence through strategic
acquisitions, enhancing its capacity and reinforcing its leadership position within the industry.

Share Holding Pattern:

Shareholders Shareholdings
Promoter 62.6%
FII 12.5%
DII 12.3%
Public 12.6%
Others 0.0%

The equity shares of Ultratech Cement are listed on the Bombay Stock Exchange, where it is
a constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it
is a constituent of the NIFTY 50
INDUSTRY ANALYSIS:
Industry analysis for UltraTech Cement involves evaluating the overall cement industry,
understanding competitive dynamics, and assessing the forces that shape the sector. Michael
Porter's Five Forces Model is a useful framework to analyze the competitive environment
within the cement industry. These forces include the threat of new entrants, bargaining power
of suppliers, bargaining power of buyers, threat of substitutes, and intensity of competitive
rivalry.

1. Threat of New Entrants:

The threat of new entrants in the cement industry is relatively low due to high entry barriers
such as capital intensity, regulatory requirements, and economies of scale.
Capital Requirements: Establishing a cement manufacturing plant requires significant
capital investment in machinery, technology, and infrastructure. This high initial cost deters
new entrants.
Regulatory Barriers: The cement industry is subject to stringent environmental regulations
and permits. Compliance with these regulations can be complex and costly.
Economies of Scale: Established players like UltraTech Cement benefit from economies of
scale, making it difficult for new entrants to compete on cost and pricing.
Impact on UltraTech Cement: The low threat of new entrants helps UltraTech maintain its
market position and profitability without the constant pressure of new competition.

2. Bargaining Power of Suppliers:

Suppliers in the cement industry can exert moderate to high bargaining power depending on
the availability of raw materials and the level of supplier concentration.
Raw Materials: Key raw materials for cement production include limestone, coal, and
gypsum. Availability and control over these resources can give suppliers significant
bargaining power.
Supplier Concentration: If the suppliers are few and dominate the supply of crucial raw
materials, their bargaining power increases.
Impact on UltraTech Cement: UltraTech mitigates supplier power by securing long-
term contracts and owning its own quarries for limestone, ensuring a steady supply of raw
materials at controlled costs.

3. Bargaining Power of Buyers:

Buyers in the cement industry range from large construction companies and real estate
developers to smaller contractors and retail consumers. Their bargaining power varies.
Large Buyers: Large construction firms and infrastructure projects have significant
bargaining power due to the volume of their purchases and their ability to switch suppliers.
Small Buyers: Individual buyers and smaller contractors have limited bargaining power
compared to large buyers.
Impact on UltraTech Cement: UltraTech can leverage its brand reputation, extensive
distribution network, and product quality to mitigate buyer power. Additionally, long-
term contracts with large buyers provide stability and predictability in demand.

4. Threat of Substitutes:
The threat of substitutes for cement is relatively low, but alternatives such as asphalt, steel,
and other building materials exist for specific applications. Substitutes in Specific
Applications: In some infrastructure projects, asphalt or steel may be used instead of cement.
However, cement remains the preferred material for most construction due to its cost-
effectiveness and durability.
Innovative Materials: Advancements in construction technology and materials could pose a
future threat, but currently, cement remains indispensable.
Impact on UltraTech Cement: The low threat of substitutes ensures sustained demand for
cement. However, UltraTech must continue to innovate and improve product offerings to stay
ahead of potential alternative materials.

5. Intensity of Competitive Rivalry:

 The cement industry is highly competitive with several established players vying for market
share. Key factors influencing competitive rivalry include market growth, product
differentiation, and capacity utilization.
Market Growth: Rapid infrastructure development and urbanization in India drive market
growth, but the industry still faces intense competition among leading players like UltraTech,
ACC, Ambuja, and Shree Cement.
Product Differentiation: While cement is a relatively homogeneous product, companies
compete on quality, brand reputation, and service.
Capacity Utilization: Overcapacity in the industry can lead to price wars and reduced
profitability.
Impact on UltraTech Cement: As the market leader, UltraTech Cement leverages its
scale, brand strength, and operational efficiency to maintain a competitive edge. Continuous
investment in technology, sustainability, and customer service helps UltraTech differentiate
itself in a competitive landscape.

SWOT ANALYSIS: Shree Cement

Strengths:

· Robust Demand: Cement demand is growing due to robust

economic growth driven by housing sector expansion, infrastructure
projects, and industrial development.
· Market Leadership: Shree Cement is one of India's largest cement
producers, with a strong market presence and brand reputation.
· Operational Efficiency: Shree Cement is known for its operational
efficiency, with advanced manufacturing processes and a focus on
sustainability.
· Diverse Product Portfolio: The company offers a comprehensive
product range, including grey cement, white cement, RMC, and
specialty cements, catering to diverse construction needs.

Weaknesses:

· Fragmented Industry: The cement industry is fragmented and

regionalized, leading to intense local competition and price wars.
· Transportation Costs: Long-distance transportation of cement,
a low-value commodity, is uneconomical and affects profit
margins.
· Geographical Limitations: Limited availability of Shree Cement in all
regions may hinder its ability to fully capitalize on potential markets.

Opportunities:
· Low Per Capita Consumption: India's low per capita cement
consumption presents significant growth opportunities as the country
continues to develop.
· Market Expansion: Expanding into new markets and forming strategic
partnerships with the government can strengthen Shree Cement’s
market position.
· Infrastructure Projects: Growing demand from institutional
markets and infrastructure projects offers substantial expansion
prospects.
· Sustainability Initiatives: Increasing focus on sustainability and
green building practices provides opportunities for Shree Cement to
innovate and lead in eco-friendly products.

Threats:

· Intense Competition: Intense competition from both domestic and

international players offering lower prices poses a significant threat.
· New Entrants: The expected entry of new international competitors
could escalate competition and pressure profit margins.
· Regulatory Changes: Regulatory changes and government
interventions can disrupt market stability and operations.
· Rising Costs: Rising transportation costs and availability issues pose
operational challenges and affect profitability.
· Substitute Materials: The availability of cheaper substitutes like
timber may reduce demand for cement.
· Retailer Practices: Retailers favoring higher profit margins
could increase competition and lead to potential malpractices,
affecting market dynamics

Introduction to Fundamental Analysis:

Fundamental analysis is a comprehensive method used to determine the intrinsic value of a
security by evaluating various economic, financial, and qualitative factors. This approach
involves scrutinizing company financial statements, industry conditions, management quality,
and economic indicators to assess whether a stock is overvalued, undervalued, or fairly
valued. By focusing on the fundamental aspects of a company rather than market sentiment
or technical factors, fundamental analysis enables investors to make well-informed decisions
regarding the buying or selling of securities.

In the realms of accounting and finance, fundamental analysis entails a detailed examination
of a business's financial statements to analyze its assets, liabilities, and earnings. It also
involves assessing the company's health, competitive position, and market environment.
Additionally, fundamental analysis considers macroeconomic factors such as interest rates,
production levels, earnings trends, employment statistics, GDP growth, housing market
conditions, manufacturing data, and management effectiveness.
There are two primary approaches to fundamental analysis: bottom-up analysis and top-down
analysis. The bottom-up approach focuses on individual companies, starting with their
financial health and performance before considering the broader industry and economic
context. Conversely, the top-down approach begins with an analysis of the overall economy,
then narrows down to specific industries, and finally to individual companies. These
approaches distinguish fundamental analysis from other types of investment analysis, such as
quantitative analysis and technical analysis.

Fundamental analysis encompasses:

· Economic analysis
· Industry analysis
· Company analysis

These analyses collectively determine the intrinsic value of a stock, which represents its true
worth. If this intrinsic value exceeds the current market price, it is advisable to purchase the
stock. If it matches the market price, holding the stock is recommended; if it falls below the
market price, selling the stock is advised.

Economic Analysis:
This segment involves evaluating macroeconomic indicators such as GDP growth, inflation
rates, interest rates, and unemployment statistics. Understanding these broader economic
factors allows investors to gauge overall market conditions and identify potential investment
opportunities or risks.

Industry Analysis:
Industry analysis involves scrutinizing specific sectors within the economy. Key factors
include market size, growth potential, competitive dynamics, regulatory framework, and
technological advancements. By analysing these elements, investors can identify promising
industries and evaluate the potential of individual companies within those sectors.

Company Analysis:
Company analysis for Shree Cement involves a comprehensive evaluation of its financial
health, performance, and future prospects. This includes scrutinizing financial statements,
assessing management quality, understanding the business model, identifying competitive
advantages, examining growth potential, and analyzing valuation metrics. Through a detailed
analysis of Shree Cement's fundamentals, investors can determine whether its stock is
undervalued, fairly valued, or overvalued, and make informed investment decisions.
Economic Analysis:
The initial step is to evaluate the overall economic environment of the country. Positive
economic conditions enhance the prospects for specific industries, including the cement
sector, which in turn benefits companies like Shree Cement. However, stock prices are
always subject to market risks, necessitating careful consideration before making investment
decisions. Key economic indicators considered in this analysis include:

Gross Domestic Product (GDP):

GDP represents the total market value of all finished goods and services produced within a
country's borders over a specified period. It serves as a comprehensive scorecard of a
country's economic health. A growing GDP indicates a robust economy, which is
favorable for the construction and cement industries, boosting demand for Shree Cement's
products.

Inflation Rate:
The inflation rate measures the increase in prices of goods and services over time. High
inflation can erode purchasing power and impact costs for raw materials and operations.
Monitoring inflation is crucial, as it affects Shree Cement's pricing strategies and cost
management.

Foreign Direct Investment (FDI):

FDI refers to investments made by a company or individual from one country into business
interests in another country. An increase in FDI signifies growing investor confidence and can
lead to expanded operations and market opportunities for Shree Cement. Government
initiatives to attract FDI can positively impact the company's growth prospects.

Conclusion:
In summary, the economic analysis indicates that while inflation has increased, impacting
various sectors, the GDP is on an upward trajectory. The flow of FDI has also risen in recent
years, spurred by government initiatives designed to attract foreign investors. This positive
economic environment bodes well for the cement industry, potentially leading to increased
job opportunities and growth for companies like Shree Cement. Overall, the outlook for
Shree Cement appears favourable, supported by a strong economic foundation and positive
industry trends.
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar 24 Mar 23 Mar 22 Mar 21 Mar 20

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 36.08 36.08 36.08 36.08 36.08
Total Share Capital 36.08 36.08 36.08 36.08 36.08
Reserves and Surplus 20,348.41 18,252.36 17,234.79 15,213.99 12,900.34
Total Reserves and Surplus 20,348.41 18,252.36 17,234.79 15,213.99 12,900.34
Total Shareholders Funds 20,384.49 18,288.44 17,270.87 15,250.07 12,936.42
NON-CURRENT LIABILITIES
Long Term Borrowings 713.08 580.87 1,298.34 1,331.55 1,638.70
Other Long Term Liabilities 297.06 339.64 275.71 931.22 944.91
Long Term Provisions 12.28 12.99 11.78 10.55 9.18
Total Non-Current Liabilities 1,022.42 933.50 1,585.83 2,273.32 2,592.79
CURRENT LIABILITIES
Short Term Borrowings 760.58 1,958.30 715.84 508.08 708.74
Trade Payables 1,064.03 1,128.70 803.89 785.79 528.02
Other Current Liabilities 4,184.26 3,507.28 3,036.40 2,219.60 2,570.79
Short Term Provisions 3.32 2.46 2.60 1.91 1.11
Total Current Liabilities 6,012.19 6,596.74 4,558.73 3,515.38 3,808.66
Total Capital And Liabilities 27,419.10 25,818.68 23,415.43 21,038.77 19,337.87
ASSETS
NON-CURRENT ASSETS
Tangible Assets 8,931.47 5,286.40 5,294.83 4,164.58 4,299.55
Intangible Assets 0.00 46.29 26.66 26.97 19.37
Capital Work-In-Progress 0.00 2,320.25 972.91 970.96 962.11
Fixed Assets 8,931.47 7,652.94 6,294.40 5,162.51 5,281.03
Non-Current Investments 5,455.83 8,299.85 8,060.96 7,271.28 5,829.17
Deferred Tax Assets [Net] 599.21 668.56 669.51 785.50 743.78
Long Term Loans And Advances 3.40 3.66 4.35 60.67 52.70
Other Non-Current Assets 1,197.90 1,057.55 695.02 559.35 605.62
Total Non-Current Assets 16,187.81 17,682.56 15,724.24 13,839.31 12,512.30
CURRENT ASSETS
Current Investments 5,219.45 3,350.68 3,484.99 3,779.33 3,086.26
Inventories 3,146.24 2,422.61 2,161.40 1,477.17 1,427.85
Trade Receivables 929.77 906.05 595.65 485.89 828.45
Cash And Cash Equivalents 297.12 119.29 118.26 209.76 108.16
Short Term Loans And Advances 125.87 6.92 25.34 25.01 7.63
OtherCurrentAssets 1,512.84 1,330.57 1,305.55 1,222.30 1,367.22
Total Current Assets 11,231.29 8,136.12 7,691.19 7,199.46 6,825.57
Total Assets 27,419.10 25,818.68 23,415.43 21,038.77 19,337.87
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 0.00 1,949.68 1,924.17 1,555.39 1,035.43
CIF VALUE OF IMPORTS
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 0.00 3,396.31 2,065.36 1,271.99 1,317.50
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign Currency - - - - -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods - - - - -
Other Earnings - 10.05 187.91 23.28 6.57
BONUS DETAILS
Bonus Equity Share Capital - - - - -
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market
- 4,760.16 5,184.55 4,704.50 3,223.55
Value
Non-Current Investments Unquoted Book
- 3,542.76 3,018.15 2,753.97 2,689.98
Value
CURRENT INVESTMENTS
Current Investments Quoted Market
- 3,350.68 3,484.99 3,782.96 3,086.26
Value
Current Investments Unquoted Book
Value - - - - -

P&L STATEMENT:
Description Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
1,48,432. 1,31,017. 1,21,756.
Total Revenue 1,72,690 20 60 20 1,19,674
2,13,581. 1,80,492. 1,61,283.
Gross Revenue From Operations 50 20 70 1,19,040 1,17,220
Less: GST Recovered 45,206.60 37,433.40 34,595 - -
1,68,374. 1,43,058. 1,26,688.
Net Revenue From Operations 90 80 70 1,19,040 1,17,220
Other Income 4,315.10 5,373.40 4,328.90 2,716.20 2,454
1,57,103. 1,00,760. 1,02,154. 1,07,078.
Total Expenditure 60 1,19,123 40 10 40
Cost Of Materials Consumed 12,998.90 10,024.60 8,335.90 7,632.70 8,948.10
Purchases Of Stock-In-Trade 384.70 2,825.80 - - -
Changes In Inventories Of Finished
Goods, Work-In-Progress And Stock-
In-Trade -785.20 -1,464.80 420.50 49.70 -306.10
Employee Benefit Expense 8,657.80 8,072.30 7,597.20 7,310.10 6,778.20
Finance Costs 2,689.30 2,177.80 2,471 2,865.20 2,469.80
Depreciation, Depletion And
Amortisation Expense 15,462 10,364.80 11,399 16,994.20 13,916.80
1,18,198.
Other Expenses 90 87,361 70,689.50 67,562.90 75,651
Expenses Pre Operative Capitalised 502.80 238.50 152.70 260.70 379.40
Exceptional Items - - - - -1,781.30
Profit Before Tax 15,586.40 29,309.20 30,257.20 19,602.10 10,814.30
 Total tax expense 2,305.10 5,543.00 7,137.90 3,900.30 1,303.80
Current Tax 937.10 4,381.80 7,535.50 5,248.30 2,177.20
Deferred Tax 1,368 1,161.20 -397.60 -1,348 -873.40
Profit/ (Loss) For The Period From
Continuing Operations 13,281.30 23,766.20 23,119.30 15,701.80 9,510.50
Net Profit/ (Loss) After Tax 13,281.30 23,766.20 23,119.30 15,701.80 9,510.50
Basic Earning Per Equity Share 834.55 658.69 640.77 445.08 273

RATIO ANALYSIS
LIQUIDITY RATIO
1. Current Ratio= Current Assets / Current Liabilities
2024
Current Assets = Rs. 11231.29Cr
Current Liabilities = Rs. 6012.19Cr
Current Ratio=11231.29/6012.19 = 1.86
2023
Current Assets: 8136.12Cr
Current Liabilities: 6596.74Cr
Current Ratio=8136.12/6596.74 = 1.23
Industry Standard: 1.5 – 2.5
Interpretation: The company's liquidity improved from 2023 to 2024, as
indicated by the increase in the current ratio from 1.23 to 1.86.

2. Quick Ratio= (Current Assets - Inventories) / Current Liabilities

2024
Current Assets = Rs11231.29Cr
Inventories = Rs. 3146.24Cr
Current Liabilities = Rs. 6012.19Cr
Quick Ratio= (11231.29- 3146.24)/6012.19
= 8085.05/6012.19= 1.34
2023
Current Assets: 8136.12Cr
Current Liabilities: 6596.74Cr
Inventories: 2422.61Cr
Quick Ratio = (8136.12-2422.61)/6596.74
= 5713.51/6596.74 = 0.86
Industry Standard: 0.8 – 1.2
Interpretation: The company's ability to meet its short-term obligations without
relying on inventory improved significantly from 2023 to 2024, as reflected by
the increase in the quick ratio from 0.86 to 1.34.

Turnover ratio
1.Inventory turnover ratio = Nets sales/Inventory
2024
Net sales = 19585.53Cr
Inventory = 3146.24Cr
Inventory turnover ratio =198585.53/3146.24=6.22
2023
Net sales = 16445.78Cr
Inventory = 2422.61Cr
Inventory turnover ratio =16445.78/2422.61 =6.78
Industry Standard: 8-12
Interpretation: The company's inventory turnover slightly decreased from 6.78
in 2023 to 6.22 in 2024, indicating a slower rate of converting inventory into
sales.

2. Receivable turnover ratio = Net sales/receivables

2024
Net sales = 19585.53Cr
Receivables= 929.77Cr
Receivable turnover ratio =19585.53/929.77 = 21.06
2023
Net sales = 16445.78Cr
Receivables=906.05 Cr
Receivable turnover ratio =16445.78/906.05= 18.15
Industry Standard: 7-10
Interpretation: The company's efficiency in collecting receivables improved
from 2023 to 2024, as indicated by the increase in the receivable turnover
ratio from 18.15 to 21.06.

3.Fixed asset turnover ratio = Net sales/fixed asset

2024
Net sales = 19585.53Cr
Fixed asset =8931.47Cr
Fixed asset turnover ratio = 19585.53/8931.47 =2.19
2023
Net sales = 16445.78Cr
Fixed asset =7652.94Cr
Fixed asset turnover ratio =16445.78/7652.94= 2.14
Industry Standard: 2 - 5
Interpretation: The company's efficiency in using its fixed assets to generate
sales slightly improved from 2023 to 2024, as reflected by the increase in the
fixed asset turnover ratio from 2.14 to 2.19.

4.Total asset turnover ratio = Net sales/Total asset

2024
Net sales = 19585.53Cr
Total asset = 27,419.10Cr
Total asset turnover ratio = 19585.53/27,419.10 =0.71
2023
Net sales = 16445.78Cr
Total asset = 25,818.68Cr
Total asset turnover ratio =16445.78/25818.68=0.63
Industry Standard: 0.6 – 1.0
Interpretation: The company's overall efficiency in using its total assets to
generate sales improved from 2023 to 2024, as indicated by the increase in
the total asset turnover ratio from 0.63 to 0.71.
LEVERAGE RATIO
1.Debt to Equity Ratio=Total Liabilities/Shareholders' Equity
2024
Total Liabilities = Non-Current Liabilities + Current Liabilities
= Rs. 16187.81Cr + Rs. 11231.29Cr
= Rs. 27419.1Cr
Shareholder's Equity = Rs. 36.08Cr
Debt to Equity Ratio = 27419.1/36.08=759.95
2023
Total Liabilities = 24279.3 Cr
Shareholders' Equity = 36.08Cr
Debt to Equity Ratio= 24279.3/36.08=672.92
Industry Standard: 0.5 – 1.5
Interpretation: The company's financial leverage significantly increased from
2023 to 2024, as indicated by the rise in the debt to equity ratio from 672.92 to
759.95.

COMPANY ANALYSIS WITH FINANCIAL DATA:

Calculation of Beta Alpha Returns Variance and Standard Deviation:

DATE Nifty 50 (X) Shree Cement (Y) Returns (X) Returns (Y)
01-Feb-24 21697.45 29613.55078 NIL NIL
02-Feb-24 21853.8 28453.94922 -0.03994509 -0.03994509
05-Feb-24 21771.7 26954.80078 -0.054125545 -0.054125545
06-Feb-24 21929.4 27569.40039 0.022545058 0.022545058
07-Feb-24 21930.5 28116.30078 0.019643031 0.019643031
08-Feb-24 21717.95 27370.19922 -0.026894705 -0.026894705
09-Feb-24 21782.5 27630.09961 0.009450942 0.009450942
12-Feb-24 21616.05 27265.5 -0.013283577 -0.013283577
13-Feb-24 21743.25 27249.65039 -0.000581475 -0.000581475
14-Feb-24 21840.05 26898.44922 -0.012972056 -0.012972056
15-Feb-24 21910.75 26332.90039 -0.021249512 -0.021249512
16-Feb-24 22040.7 26298 -0.001326232 -0.001326232
19-Feb-24 22122.25 26815.30078 0.019479759 0.019479759
20-Feb-24 22196.95 26524.90039 -0.01088872 -0.01088872
21-Feb-24 22055.05 26345 -0.006805426 -0.006805426
 22-Feb-24 22217.45 26603.34961 0.009758629 0.009758629
23-Feb-24 22212.7 26489.65039 -0.004283028 -0.004283028
26-Feb-24 22122.05 26099.69922 -0.014830315 -0.014830315
27-Feb-24 22198.35 26191.30078 0.003503534 0.003503534
28-Feb-24 21951.15 25606.40039 -0.022584989 -0.022584989
29-Feb-24 21982.8 25504.40039 -0.003991334 -0.003991334
01-03-2024 22338.75 25637.80078 0.005216854 0.005216854
04-03-2024 22405.59 25730.30078 0.002987643 0.003601461
05-03-2024 22356.3 25009.75 -0.002202321 -0.028403567
06-03-2024 22474.05 24754.25 0.00525315 -0.010268557
07-03-2024 22493.55 24705.90039 0.000867291 -0.001955094
11-03-2024 22332.65 25312.25 -0.007178868 0.024246371
12-03-2024 22335.69 24960.40039 0.000136114 -0.013997884
13-03-2024 21997.69 24360.34961 -0.0152484 -0.02433379
14-03-2024 22146.65 24957.59961 0.006748796 0.024221575
15-03-2024 22023.34 null -0.005583443 #VALUE!
18-03-2024 22055.69 25343.19922 0.001467818 #VALUE!
19-03-2024 21817.44 25005.44922 -0.010860969 -0.013416649
20-03-2024 21839.09 24935.84961 0.000991833 -0.002787259
21-03-2024 22011.94 25361.40039 0.00788355 0.016921837
22-03-2024 22096.75 25366.05078 0.003845505 0.000183348
26-03-2024 22004.69 25684.15039 -0.004174926 0.012462389
27-03-2024 22123.65 25939.34961 0.00539156 0.00988702
28-03-2024 22326.9 25682.84961 0.009145057 -0.009937667
Expected Returns -0.003807758 (x)
#VALUE! (y)
Variance 0.000233886 (x)
#VALUE! (y)
Standard
Deviation 0.015293347 (x)
#VALUE! (y)
Beta #VALUE!
Aplha #VALUE!
Conclusion :
Shree Cement stands out as a strong contender in the cement industry, showcasing robust financial
health and growth prospects. The company's consistent revenue growth, high operating margins,
and prudent cost management have driven impressive profitability. Strong market positioning,
strategic capacity expansions, and a focus on sustainability initiatives further enhance its
competitive edge. However, the company faces challenges such as fluctuating raw material costs
and market cyclicality. Overall, Shree Cement's solid fundamentals, coupled with strategic initiatives,
position it well for sustained growth and value creation.
Biblography:
www.Money Control.com
www.NSE.com