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L/O/G/O

Cross Sector Analysis of Steel, Energy & Auto

Presented by Apurva Dandekar C-03 Samuel Allen C-29

Contents
Ratios taken into consideration
Gross profit margin Net profit margin

Return on Total Assets (ROTA)


Return on Equity (ROE) Earnings per share (EPS) Price to Earnings (PE Multiple)

Companies selected
Sector
Steel

Company
Tata Steel Power Grid Corporation of India Ltd.
Maruti Suzuki India Ltd.

Energy

Auto

Financial Year 2010-11

Gross Profit Margin


Gross Profit Margin = Gross profit / sales * 100

39.52 %

105.86 %

10.32 %

Tata Steel

Power Grid

Maruti Suzuki

Net Profit Margin

Net Profit Margin = Profit after tax / Sales * 100 (In %)

21.52

32.15

5.64

Return on Total Assets


Return on Total Asset (ROTA) = Profit After Tax Total Assets X 100

Tata steel

9.74%
Power Grid

4.60%
Maruti Suzuki India

17.06%

Return on Equity
Return on Equity = Profit after tax (PAT) / Net worth * 100
Tata Steel

16.40 %

Maruti Suzuki India

17.81 %

14.46 %

Power Grid

Earnings Per Share


Earnings Per Share (EPS) = PAT / No. of Shares
In Rs. Tata Steel

71.58 79.19
Maruti Suzuki

5.83
Power Grid

PE Multiple
Price to Earnings multiple = Market price / EPS Power Grid
6.27 18.45

Tata Steel

16.52

Maruti Suzuki India

Comparison

Ratios GP Margin NP Margin ROTA ROE EPS PE Multiple

Tata Steel

Power Grid

Maruti Suzuki

39.52 %

105.86 % 32.15 % 4.60%

10.32 %

21.52 %
9.74%

5.64 %
17.06%

16.40 %
Rs. 71.58

14.46 %
Rs. 5.83

17.81 %
Rs. 79.19

6.27

18.45

16.52

Conclusion
Best according to Best according to GP Margin NP Margin Best according to ROI ROE EPS

Tata Steel

Power Grid

Maruti Suzuki India

L/O/G/O

Thank You!

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