Research of the Cement sector on the basis of to down research method. It includes - Study of global economies - Study of domestic economy - Rainfall analysis - Sectoral Research on Cement Sector in India - Ground Level Research - Company analysis of Dalmia Bharat Ltd. - Projection of Financial Statements - Peer Comparison Contact me for detailed information snehaghag78@gmail.com

1. CEMENTING: FINANCE,
REVIEW & ANALYSIS

2. Company Profile
The Money Roller is the independent, unbiased,
boutique research house, which produce hard core, indigenous
research for our clients.
Our expertise lies in analyzing the Equity (Cash &
FNO), Currencies, Cross Currencies and Commodity Markets
and combining these with Inter-Market Analysis.

3. Executive Summery
• Analysis of Global EconomyWeek 1
• Analysis of Domestic EconomyWeek 2
• Rainfall AnalysisWeek 3
• Sectoral Research- Cement SectorWeek 4
• Ground Level ResearchWeek 5
• Company Analysis- Dalmia Bharat LtdWeek 6
• Projections for 3 subsequent yearsWeek 7
• Peer ComparisonWeek 8

4. Need & Objective Of The Study
 To conduct a research on Cement Sector was to identify the
future investment opportunities available in companies
of this sector
To adopt a top down research approach was to give investors
a complete idea so that the investors can take a decision
regarding their investments
Economy
Industry
Company

5. Research Methodology
Secondary Data Sources like;
Annual report of Dalmia Bharat Limited
Websites of organizations like;
World bank
International Monitory Fund
Cement Manufacturing Association
Indian Bureau Of Mines etc.
A judgmental approach has been followed based on available
information

6. Week 1 • Analysis of Global Economy
GDP is a performance indicator for any economy
GDP of India is higher as compared to all other countries except for
China
The inflation rate of India is much higher than the other countries;
except Russia & Brazil.
Unemployment rate has been showing a decreasing trend
Interest rates, the interest rates of India is higher as compared to other
countries
Contribution in GDP by service sector- India (53.80%); China (51.63%)
Contribution in GDP by Manufacturing sector- China (39.8%); India
(16.51%)

7. Week 2 • Analysis of Domestic Economy
I had to collect information about the Growth Rate of
GVA (%) at Basic Prices for Different Sectors.
2013-14 2014-15 2015-16 2016-17 2017-18
Construction 2.70 4.30 3.70 1.30 5.70
Overall GVA growth % 6.10 7.20 8.10 7.10 6.50
Conclusion:
The growth rate of GVA for Cement sector has increased.

8. Week 3 • Rainfall Analysis
Long Period average Mean 895.48
S.D. 92.56
Draught Average – S.D. 802.92
Moderate Draught Average – 1.5(S.D.) 756.63
Severe Draught Average – 2(S.D.) 710.35
Above average Average + SD 988.04
Much above average Average + 2 (SD) 1080.61

9.  Considering the present decade of 2010 – 2020, there
have already been two back to back years of normal
drought, thus, the possibility of having a further drought
year is very less.
 Thus, it could be implied for the next 4 years India would
be having a good amount of Rainfall.
Conclusion:

10. Week 4 • Sectoral Research- Cement Sector
Segment wise demand
Cement Capacity, production
and demand in India
List of total cement companies
Cement Prices
Pet coke prices

11. Week 5 • Ground Level Research
The most common brands that shopkeepers keep in their stock
are UltraTech, ACC, Brila, JK Laxmi and Binani along with non
branded cements.
The general price of branded cement ranges between Rs.240 to
Rs.340 where there is Rs. 40 to Rs. 50 price difference between
branded and non-branded cements.
The average number of cement bags sold in a day is 325.
Demand for cement is more in the months January, February,
March and April.
Findings of GLR

12. Week 6 • Company analysis- Dalmia Bharat Ltd.
One of the top 10 cement
manufacturing companies
Having presence in 8 states
Serving 22 states
2 core products
Cement
Sugar
Entire production is done
in-house

13. Particulars Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Margin Ratio
EBITDA Margin 22.73% 14.01% 17.15% 24.52% 25.69% 23.54%
Profitability Ratio (%)
ROCE 7% 4% 4% 10% 12% 12%
RONW 6.42% -0.27% 0.10% 4.95% 7.43% 16.41%
ROA 2.89% -0.10% 0.03% 1.26% 2.17% 5.42%
Valuation Ratios
EV/EBITDA 6.66 14.35 18.17 10.00 14.02 16.37
EV/Net Sales 1.51 2.01 3.12 2.45 3.60 3.85
Leverage Ratios
Debt-Equity Ratio 202.12 251.34 486.75 478.30 419.83 354.55
Debt- Asset Ratio 0.41 0.47 0.55 0.53 0.42 0.35
Turnover Ratios
Inventory 46.04 40.90 75.75 40.16 31.98 33.04
Debtors 31.60 34.37 52.98 28.04 29.25 22.12
Creditors 42.58 46.81 77.73 51.80 47.03 38.51
Liquidity Ratios
Current Ratio 1.53 1.23 1.59 1.49 1.14 1.38
Quick Ratio 1.19 1.00 1.34 1.29 1.01 -
Interest Coverage 2.18 0.93 0.98 1.78 1.80 2.32
Other Ratios
EPS 24.27 -1.04 0.38 21.51 41.37 110.38
DPS 1.72 1.96 2.00 4.83 0.00 4.81
Dividend Yield 1.34% 0.82% 0.45% 0.57% 0.00% 0.16%
P/E 5.28 -230.68 1171.14 39.52 52.51 27.63
P/BVPS 0.04 0.08 0.14 0.22 0.44 0.51

14. Week 7 • Projections for 3 Subsequent Years
CAGR of last 6 years I.e. from 2012-13 to 2017-18
Future plans of the company
Government initiatives
Basis of Projections fro 3 subsequent years

15. Week 8 • Peer Comparison
As on Mar-18 Mar-18 Mar-18 Dec-17 Dec-17
Company Name
Dalmia
Bharat
UltraTech
Cements
Shree Cements
Ambuja
Cements
ACC
CMP11/7/2018 2208.00 3781.50 15763.80 200.30 1313.75
Full M-Cap 19684.32 103843.77 54921.08 39772.57 24697.19
CMP 12/7/2018 2323.20 3946.30 17079.75 202.05 1349.15
Full M-Cap 20711.33 108369.34 59505.85 40120.06 25362.67
EBITDA 1322.81 6251.70 2861.83 2299.23 2040.78
EBIDTA Margin % 15% 20% 29% 10% 15%
Net D/E 105% 64% 38% 0% 0%
Freight/Sales 93.60 127.73 113.73 274.48 129.28
EBIDTA/Tonne 119.21 111.52 128.91 182.46 77.27
Interest Coverage
Ratio
2.32 3.68 14.51 14.45 14.30
Petcoke/sales 12.06% 3.31% 10.56% 4.43% 7.81%
Depreciation as % of
Sales
8.17% 5.88% 9.15% 5.21% 4.84%

16. Recommendations and suggestions
Stock performance over the period of time should be
considered
Finding the Beta of Dalmia Bharat Limited as Beta is a
Sensitivity Measure of the dependency of the stock upon the
Market Index

17. Limitations of the Study
Lack of availability of data
Short time span
Data collected much earlier
Yearly data was not available in most of the cases
As the study was only for a period of 6 years, the estimation
of future could not be done deeply.

18. Conclusion
The whole research work would be of great importance to the
investors who are looking up for an investment opportunity
in Cement Sector.
Investors would be having a complete idea regarding their
how their investment is going to perform in future.
“Information travels at the speed of light and
money travels at the speed of information.”

19. -SnehaGhag