Comparable Companies Analysis

Market Data
Share Shares Equity
Company Price Outstanding Value

Ambuja Cement 342.00 1,986 679,212

ACC 1,916.00 187 358,292
Shree Cement 23,199.80 36 835,193
Dalmia Bharat 1,926.30 187 360,218

Average
Median

Ambuja Cement Valuation

Implied Enterprise Value
Net Debt
Implied Market Value
Shares Outstanding
Implied Value Per Share
Market Data Financials

Total Debt Cash Enterprise Book Value Volume(Q3F Revenue

Value Y23)

4,766 117,167 566,811 131 7.9 309,828

1,256 75,563 283,985 739 7.6 174,192
21,292 36,872 819,613 4,978 6.8 150,095
31,760 52,350 339,628 802 6.3 112,860

So price range will be in between

 Financials Valuation

EBITDA Net Income EV/Revenue EV/EBITDA P/E P/B

38,811 19,134 1.8x 14.6x 35.5x 2.6x

14,564 6,494 1.6x 19.5x 55.2x 2.6x
36,774 21,763 5.5x 22.3x 38.4x 4.7x
24,430 11,198 3.0x 13.9x 32.2x 2.4x

3.4x 18.6x 41.9x 3.2x

3.0x 19.5x 38.4x 2.6x
Average 3.4x 18.6x 41.9x 3.2x
EV/Revenue EV/EBITDA P/E P/B
1,043,110 720,449 806,593
4,766 4,766 4,766
1,038,344 715,683 801,827 837,303.44
1,986 1,986 1,986 1,986
522.83 360.36 403.74 421.60

price range will be in between - 360.36 522.83

EV/tonne

71,748.2x
37,366.4x
121,065.4x
53,909.2x

70,780.4x
53,909.2x
70,780.4x
EV/tonne
559,164.83
4,766
554,399
1,986
279.15
Ambuja Cement
2019 2020 2021 2022 Ambuja Ceme
Revenue 271035 240938 285480 309828 0.89% EBITDA
EBITDA 46186 50874 62420 38811 Net Income
Net Income 20732 25099 27917 19134
ACC Ltd
ACC Ltd EBITDA
2019 2020 2021 2022 Net Income
Revenue 153431 134868 158144 174192
EBITDA 24127 23551 29980 14564 Shree Cemen
Net Income 13431 14159 18545 6494 EBITDA
Net Income
Shree Cement
2019 2020 2021 2022 Dalmia Bhara
Revenue 125546 128683 135597 150095 EBITDA
EBITDA 28163 37356 40650 36774 Net Income
Net Income 10046 14993 21490 21763

Dalmia Bharat
2019 2020 2021 2022
Revenue 94840 96740 101100 112860
EBITDA 19420 21050 27680 24430
Net Income 2583 2240 11482 11198

EBITDA MargiEBITDA MargiNet Income 2Net Income 2022

Ambuja Ceme 21.86% 12.53% 9.78% 6.18%
ACC Cement 18.96% 8.36% 11.73% 3.73%
Shree Cemen 29.98% 24.50% 15.85% 14.50%
Dalmia Ceme 27.38% 21.65% 11.36% 9.92%

Industry Player Performance & Valuation Mul-

tiples
35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
Ambuja Cement ACC Cement Shree Cement Dalmia Cement
EBITDA Margin 2021 EBITDA Margin 2022 Net Income 2021 Net Income 2022
20.00%

15.00%

10.00%

5.00%

0.00%
Ambuja Cement ACC Cement Shree Cement Dalmia Cement
EBITDA Margin 2021 EBITDA Margin 2022 Net Income 2021 Net Income 2022
 2021 2022
21.86% 12.53%
9.78% 6.18%

2021 2022
18.96% 8.36% Ambuja Cement
11.73% 3.73% 350000

300000
2021 2022 250000
29.98% 24.50% 200000
15.85% 14.50%
150000

2021 2022 100000

27.38% 21.65% 50000

11.36% 9.92% 0
Revenue EBITDA Net Income
2019 2020 2021 2022

ACC Ltd
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
Revenue EBITDA Net Income
2019 2020 2021 2022

EBITDA MargiEV/Revenue
Ambuja Ceme 12.53% 1.8x EBIDTA Margin vs EV/Sales
ACC Cement 8.36% 1.6x 6.0x
Shree Cemen 24.50% 5.5x
EV/Sales

5.0x 3
Dalmia Ceme 21.65% 3.0x
4.0x

3.0x
4
2.0x
1
2
1.0x
 5.0x 3

EV/Sa
4.0x

3.0x
4
2.0x
1
2
1.0x

0.0x
6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 22.00% 24.00%
EBIDTA Margin
 Net Income
2

Net Income

vs EV/Sales

4
 3

16.00% 18.00% 20.00% 22.00% 24.00% 26.00%

A Margin
Income Statement
2016 2017 2018 2019
Revenue 229,311 252,881 260,409 271,036
Total Revenue 229,311 252,881 260,409 271,036
Cost of Revenue, Total 109,361 112,772 108,398 114,244
Gross Profit 119,950 140,109 152,011 156,792

Selling/General/Admin. Expenses, Total 77,078 90,855 100,652 100,476

Selling/General/Administrative Expense 61,807 74,113 84,155 82,798
Labor & Related Expense 13,701 15,112 15,244 15,708
Advertising Expense 1,570 1,630 1,253 1,971
Depreciation/Amortization 14,609 12,195 11,539 11,525
Unusual Expense (Income) 386 22 1,572 215
Other Operating Expenses, Total 11,072 10,701 11,103 10,129
Total Operating Expense 212,506 226,544 233,264 236,589
Operating Income 16,805 26,337 27,146 34,447
Interest Expense, Net Non-Operating -- -- -- --
Interest/Invest Income - Non-Operating 4,246 3,348 3,386 5,730
Interest Inc.(Exp.),Net-Non-Op., Total 4,246 3,348 3,386 5,730
Other, Net (972) (2,007) (1,346) (1,424)
Net Income Before Taxes 20,078 27,677 29,185 38,753
Provision for Income Taxes 5,738 8,229 (542) 11,954
Net Income After Taxes 14,341 19,449 29,727 26,799

Balance Sheet
2016 2017 2018 2019
Assets (INR Millions)
Cash and Short Term Investments 45,005 61,882 63,712 93,155
Cash 31,371 36,973 6,292 976
Cash & Equivalents 10,730 21,762 54,639 89,143
Short Term Investments 2,905 3,147 2,781 3,036
Accounts Receivable - Trade, Net 9,241 9,315 13,045 10,686
Total Receivables, Net 14,679 22,763 29,059 27,108
Total Inventory 21,635 24,583 29,579 20,965
Prepaid Expenses 394 410 405 562
Other Current Assets, Total 1,168 1,308 1,313 1,401
Total Current Assets 82,882 110,946 124,069 143,190

Property/Plant/Equipment, Total - Gross 147,011 153,719 161,559 172,448

Property/Plant/Equipment, Total - Net 140,647 135,659 136,247 141,604
Goodwill, Net 78,815 78,815 78,815 78,815
Intangibles, Net 462 1,180 1,380 2,139
Long Term Investments 2,225 1,957 1,770 2,042
Note Receivable - Long Term 22,760 26,105 30,619 33,536
Other Long Term Assets, Total 448 467 509 498
Total Assets 328,238 355,129 373,407 401,823

Liabilities (INR Millions)

Accounts Payable 83 28,160 30,062 23,329
Current Port. of LT Debt/Capital Leases 132 -- 0 58
Other Current liabilities, Total 73,866 60,613 53,881 67,317
Total Current Liabilities 74,081 88,773 83,943 90,703

Total Long Term Debt 157 241 397 353

Total Debt 290 241 397 411
Deferred Income Tax 10,153 11,421 11,153 9,367
Minority Interest 43,702 46,080 52,312 57,368
Other Liabilities, Total 1,935 1,892 1,898 3,253
Total Liabilities 130,029 148,407 149,703 161,044

Shareholders Equity (INR Millions)

Common Stock, Total 3,971 3,971 3,971 3,971
Additional Paid-In Capital 124,712 124,712 124,712 124,712
Retained Earnings (Accumulated Deficit) 69,526 78,039 95,022 112,097
Total Equity 198,209 206,722 223,705 240,780

Total Liabilities & Shareholders' Equity 328,238 355,129 373,407 401,823

 2020 2021
245,162 289,655
245,162 289,655
96,052 119,132
149,110 170,522

88,635 100,276
72,026 83,228
15,404 15,292
1,205 1,756
11,618 11,525
2,004 1,096
9,957 8,222
208,266 240,251
36,895 49,403
(266) (246)
4,283 3,329
4,016 3,083
(996) (842)
39,916 51,645
8,848 14,534
31,068 37,110

2020 2021

88,759 117,167
1,731 2,086
83,984 111,499
3,044 3,582
5,611 6,458
20,729 23,877
16,486 27,380
830 775
1,244 1,026
128,048 170,224

182,720 211,110
148,111 163,561
78,761 78,697
2,206 2,241
2,494 5,023
37,420 32,082
167 244
397,207 452,073

22,134 29,128
464 706
70,006 82,445
92,604 112,279

4,242 4,060
4,706 4,766
6,260 7,562
63,409 71,450
3,116 3,184
169,631 198,535

3,971 3,971
124,712 124,712
98,893 124,855
227,576 253,537

397,207 452,073
Name CMP  P/E Mar Cap Rs.Cr.
Div Yld % ROCE % Debt / Eq
Ambuja Cements 336.5 32.48 66826.72 1.87 10.7 0.02
ACC 1830.3 47.7 34365.99 3.17 7.23 0.01
Dalmia BharatLtd 1902.55 34.22 35675.44 0.47 7.05 0.22
Shree Cement 24634.8 63.5 88969.32 0.37 16.61 0.16
ROE % Prom. Hold. %
7.3 63.15
5.11 56.69
7.47 55.86
14.12 62.55
 Year
17-18 18-19 19-20 20-21 21-22
Gross Profit Marg 55.41% 58.37% 57.85% 60.82%
Profitability Ratio Net Profit Margin 7.69% 11.42% 9.89% 12.67%
Return on Capita 11.33% 11.70% 14.98% 14.83%
Asset Turnover Ra 1.67 1.64 1.61 1.36
Turnover Ratios
Debtor Turnover 13.51 10.05 9.65 10.25
Solvency Ratio Debt to Equity 0.00 0.00 0.00 0.02
Current Ratio 1.25 1.48 1.58 1.38
Liquidity Ratio
Quick Ratio 0.97 1.13 1.35 1.20

FY20 FY21 FY22 FY23 FY24

Capacity 29.7 29.7 31.5 31.5 33
Production 24 22.6 26.5 28.9 30.3
Capacity utilisatio 80.8% 76.1% 84.1% 91.7% 91.8%
Growth(%) -5.8% 17.3% 9.1% 4.8%

Shareholding(%)
Jun-22 Sep-22 Dec-22
Promoters 63.15 63.15 63.15
FIIs 12.8 11.04 10.65
MFs/UTI 7 7.36 7.78
Banks/Fis 0.2 0.03 0.06
Others 16.9 18.42 18.36
(NET SALES-COGS)/NET SALES
PAT/NET SALES
PBT/TOTAL Asset-TOTAL CA
NET SALES/(AVERAGE PPE+AVERAGE INTANGIBLE ASSETS)
SALES/AVERAGE RECEIVABLE
LONG TERM LIABILITY/EQUITY
CURRENT ASSETS/CURRENT LIABILITY
CURRENT ASSETS-INVENTORY/CURRENT LIABILITY
63.15