Sapm ppt

3,498 views

Published on

Published in: Economy & Finance, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
3,498
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
136
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Sapm ppt

  1. 1. “ RISK PROFILE OF TWO LEADING COMPANIES OF CEMENT INDUSTRY- ACC AND ULTRATECH ” PRESENTED TO : DR. NEERAJ SANGHI FACULTY FINANCE PRESENTED BY : SAPM - GROUP 1
  2. 2. Objective <ul><li>To study the stock return in accordance with the market return. </li></ul><ul><li>To check the relative volatility of the two stocks been taken up for the study. </li></ul><ul><li>To check the risk profile of the stocks on the basis of beta value been calculated. </li></ul>
  3. 3. Industry Profile <ul><li>Cement Industry in India </li></ul><ul><li>India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tones (MT) . </li></ul><ul><li>More growth in the Indian cement industry is expected in the coming years. </li></ul><ul><li>The cement industry in India is dominated by around 20 companies, which account for almost 70% of the total cement production in India . </li></ul><ul><li>The Indian cement companies have produced 11 MT cement during April-September 2009. </li></ul>
  4. 4. Industry Background <ul><li>The history of the cement industry in India dates back to the 1889 when a Kolkata-based company started manufacturing cement from Argillaceous. </li></ul><ul><li>In 1914, India Cement Company Ltd was established in Porbandar . </li></ul><ul><li>The World War I gave the first initial thrust to the cement industry in India . </li></ul><ul><li>In 1927, Concrete Association of India was set up . </li></ul>
  5. 5. Cont.…… <ul><li>The cement industry in India saw the price and distribution control system in the year 1956 . </li></ul><ul><li>Later in 1977, government authorized new manufacturing units . </li></ul>
  6. 6. Cement Company <ul><li>India, world's second largest cement producer after China . </li></ul><ul><li>Cement industry in India was under full control and supervision of the government . </li></ul><ul><li>India falls in the list of lowest per capita consumption of cement with 125 kg . </li></ul><ul><li>Cement Industry in India is growing at the rate of 8% per annum . </li></ul><ul><li>India at present is house to 120 large cement plants and about 300 mini cement plants . </li></ul>
  7. 7. Cont.…… <ul><li>The capacity of Indian cement industry is 151.2 Million Tones (MT) . </li></ul><ul><li>The top 20 cement companies account for almost 70% of the total cement production of the country . </li></ul>
  8. 8. Top ten cement companies of India
  9. 10. Top Contributor States in Cement Production <ul><li>The major contributor to the cement industry of India is the state of Madhya Pradesh . </li></ul><ul><li>Andhra Pradesh has the maximum number of cement plants . </li></ul><ul><li>Rajasthan, Gujarat and Tamil Nadu are also contributing to the cement industry . </li></ul><ul><li>India now is not only self-sufficient but also export large quantities of cement to the countries . </li></ul>
  10. 11. Companies Profile <ul><li>ACC Limited </li></ul><ul><li>ACC (ACC Limited) is India's foremost manufacturer of cement and concrete . </li></ul><ul><li>ACC has rich experience in mining, being the largest user of limestone . </li></ul><ul><li>ACC plants, mines and townships visibly demonstrate successful endeavors in quarry rehabilitation, water management techniques and ‘greening’ activities . </li></ul><ul><li>ACC has made significant contributions to the nation building process . </li></ul>
  11. 12. Cont.… <ul><li>UltraTech Cement Limited </li></ul><ul><li>It is India's 2 nd biggest cement company and India’s largest exporter of cement clinker based in Mumbai, India .  The company is part of Aditya Birla Group. </li></ul><ul><li>The company's production facilities are spread across eleven integrated plants . </li></ul><ul><li>UltraTech Cement Limited has an annual capacity of 52 million tonnes . </li></ul><ul><li>UltraTech's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P) Limited and UltraTech Cement Middle East Investments Limited . </li></ul>
  12. 13. Cement performance for October 2011 <ul><li>For the month of October 2011, cement production and dispatches are 32.72-lakh MT and 31.87-lakh MT as against 34.67-lakh MT and 34.19 lakh MT respectively in the corresponding period last year. </li></ul>
  13. 14. Data Collection & Methodology <ul><li>In this report, the data is taken up from secondary resources. We have used REGRESSION MODEL to in support to our findings. </li></ul><ul><li>The data was mainly collected through </li></ul><ul><li>Internal Sources: Company sites, records, annexure, NSE site. </li></ul><ul><li>External Sources: Other information’s are taken up from reliable websites, magazines and newspapers. </li></ul>
  14. 15. Data Analysis <ul><li>For the analysis, the following hypothesis has been assumed: </li></ul><ul><li>Ho= stock return of ACC & ULTRATECH is not dependent on market return. </li></ul><ul><li>H1=stock return of ACC & ULTRATECH is dependent on market return. </li></ul>
  15. 16. NIFTY
  16. 17. ACC
  17. 18. ULTRATECH
  18. 22. COMPARISON BETWEEN INDEX AND STOCK RETURNS
  19. 25. Findings & Conclusion <ul><li>It is been concluded that the stocks return is not at all associated with the market return . </li></ul><ul><li>It is been suggested to do different statistical modeling to get the R square close to 1. </li></ul><ul><li>Our both the stocks (ACC and ULTRATECH) are proved to be low beta stocks and dots are not scattered and thus proving insignificant difference . </li></ul>
  20. 26. Cont.…. <ul><li>Since value of Alfa is equal to 0 that means stocks are fairly valued and Alfa is insignificant. </li></ul><ul><li>We conclude that risk profile of the two stocks are proving very much less risky . </li></ul>

×