A

PROJECT REPORT ON

“A Study on ABSLI Super 20 Fund with special focus on investor

perception & Equity Research on Ultratech Cement”

Undertaken In

“Aditya Birla Sun Life Insurance”

(ABSLI)

BY

“KUNAL SONI”

‘IB2220356’

In partial fulfilment of the requirements for the award of the degree

Master of Business Administration (MBA)

FINANCE SPECIALIZATION

Sri Balaji University Pune (SBUP)

Balaji Institute of International Business (BIIB)
S No – 5/2-7, Tathawade, Wakad (2023)

0
 A

PROJECT REPORT ON

“A Study on ABSLI Super 20 Fund with special focus on investor

perception & Equity Research on Ultratech Cement”

Undertaken In

“Aditya Birla Sun Life Insurance (ABSLI)”

BY

“KUNAL SONI”

“IB2220356”

Under the Guidance of,

DR. Tushar Rathore

Balaji Institute of International Business, Sri Balaji University, Pune

In partial fulfilment of the requirements for the award of the degree
Master of Business Administration (MBA)
FINANCE SPECIALIZATION

Sri Balaji University Pune (SBUP)’s

Balaji Institute of International Business (BIIB)
S No – 5/2-7, Tathawade, Wakad (2023)

1
CERTIFICATE

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 Declaration

I the undersigned “KUNAL SONI” hereby declare that the work embodied in

this project work titled “A Study on ABSLI Super 20 Fund with special

focus on investor perception & Equity Research on Ultratech Cement”

forms my own contribution to the research work carried out under the

mentorship of Mr Jitendra Bapna and the guidance of Dr. Tushar Rathore.

Whenever reference has been made to previous works of others, it has been

clearly indicated as such and included in the bibliography.

I, here further declare that all information in this document has been obtained

and presented in accordance with academic rules and ethical conduct.

DATE: - 14-07-2023 Signature of Student

PLACE: - PUNE KUNAL SONI

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the

depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh

dimensions in the completion of this project.

I would like to take this opportunity to acknowledge and thank “Aditya Birla
Sun Life Insurance”.

for providing me with this highly coveted opportunity to associate my summer

internship project with the organization.

My special thanks and heartiest gratitude flow to my mentor “Mr Jitendra

Bapna (EAP)” His help in various capacities towards making me familiar with

the research problem and preparing the report is invaluable. His knowledge,

nature, and judgment along with experience were an immense source of

inspiration in completing this project.

I am very thankful to my Research Guide Dr. Tushar Rathore

for constant support and encouragement as well as valuable guidance and

direction. It was indeed an enriching experience for me as a management

student for getting a chance to do a project in an organization like “Aditya

Birla Sun Life Insurance”.

Date:14-07-2023 KUNAL SONI

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 Table of Contents
Contents Topic Page no.

1 Title Page 1

2 Completion Certificate 2

3 Certificate/Letter of Authorization 3

4 Acknowledgement 4

5 Table of Contents 5

6 Executive Summary 6

7 Contextual Background 7-33

(a) Industry Scenario (b) Market Scenario(c) Competitor
Analysis (d) Product/Service/ Market Studied (e) Brief
Company & Dept. Profile (f) Role in Company
8 Equity Research 34-35

9 Objective(s) 35-36

10 Literature review 36-38

11 Research methodology/design 38-40

12 Data Analysis 41-56

13 Finding & Interpretation 57

14 Future scope of the topic 58-59

15 Conclusion 60

16 Reference 61

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 EXECUTIVE SUMMARY

With the liberalization and entry of private companies in insurance, the Indian
insurance sector has started showing signs of significant change. Within a short
span of time, private insurance has acquired 13 per cent of the life insurance
market and 14 per cent of non-life market. However, there is still a huge
untapped demand for insurance. Insurance companies have a pivotal role in
offering insurance products which meet the requirements of the people and, at
the same time, are affordable. Some of the challenges faced by the insurance
sector pertain to the demand conditions, competition in the sector, product
innovations, delivery and distribution systems, use of technology, and
regulation. With the liberalization and entry of private companies in insurance,
the Indian insurance sector has started showing signs of significant change.
Within a short span of time, private insurance has acquired 13 per cent of the
life insurance market and 14 per cent of non-life market. However, there is still
a huge untapped demand for insurance. Insurance companies have a pivotal role
in offering insurance products which meet the requirements of the people and, at
the same time, are affordable. Some of the challenges faced by the insurance
sector pertain to the demand conditions, competition in the sector, product
innovations, delivery and distribution systems, use of technology, and
regulation.

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 Contextual Background

A. INDUSTRY SCENARIO
INTRODUCTION

India’s Insurance industry is one of the premium sectors experiencing upward growth.
This upward growth of the insurance industry can be attributed to growing incomes and
increasing awareness in the industry. India is the fifth largest life insurance market in
the world's emerging insurance markets, growing at a rate of 32-34% each year. In
recent years the industry has been experiencing fierce competition among its peers
which has led to new and innovative products within the industry. Foreign Direct
Investment (FDI) in the industry under the automatic method is allowed up to 26% and
licensing of the industry is monitored by the insurance regulator the Insurance
Regulatory and Development Authority of India (IRDAI).

The insurance industry of India has 57 insurance companies - 24 are in the life
insurance business, while 34 are non-life insurers. Among the life insurers, Life
Insurance Corporation (LIC) is the sole public sector company. There are six public
sector insurers in the non-life insurance segment. In addition to these, there is a sole
national re-insurer, namely General Insurance Corporation of India (GIC Re). Other
stakeholders in the Indian Insurance market include agents (individual and corporate),
brokers, surveyors and third-party administrators servicing health insurance claims.

The insurance industry has undergone numerous transformations in terms of new

developments, modified regulations, proposals for amendments and growth in 2022.
These developments have opened new avenues of growth for the industry while
ensuring that insurers stay relevant with changing times and the latest digital
disruptions.

The Insurance Regulatory and Development Authority India (IRDA) is vigilant and
progressive and is determined to achieve its mission of ‘Insurance for all by 2047’, with
aggressive plans to address the industry’s challenges. The growth of the insurance
market is being supported by important government initiatives, strong democratic

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factors, conducive regulatory environment, increased partnerships, product innovations,
and vibrant distribution channels.

Insurance Industry was largely dominated by offline channels like corporate agents,
offline brokers or banks. Today, rapid digitization, product innovation and progressive
regulation policies have made it possible for consumers to buy insurance through
multiple distribution channels with the click of a button. The instability of the covid-19
pandemic highlighted the necessity for consumers to invest in products that would
increase financial security, one of them being life insurance

MARKET SIZE

The insurance industry in India has witnessed an impressive growth rate over the last
two decades driven by the greater private sector participation and an improvement in
distribution capabilities, along with substantial improvements in operational
efficiencies.Private players have seen decent growth in individual single premium,
group single premium, and individual non-single premium. Private Life Insurers are
expected to grow their retail APE at a CAGR of over 17% between 2021-23, and new
retail term premiums are expected to double in 5 years. The Private Non-Life insurance
segment is forecasted to grow at 14% in FY23.

According to the latest data released by the insurance regulator – the Insurance
Regulatory and Development Authority of India - LIC improved its market share by
67.72% as of October, a gain of 447 basis points (bps). At the end of 2021-22, private
players had 36.75% share of the life insurance market, while LIC had 63.25%.

As of November 2022, life insurers’ have reported a 34.71% year-on-year (YoY)

increase in premiums to Rs 2.06 trillion (US$ 25 billion), with LIC’s premium
witnessing 42% growth and private insurers growing 21.48% YoY. LIC’s group single
premium was up 53% YoY during this period and individual non-single premium up
14.6%.The life insurance industry is expected to increase at a CAGR of 5.3% between
2019 and 2023. India’s insurance penetration was pegged at 4.2% in FY21, with life
insurance penetration at 3.2% and non-life insurance penetration at 1.0%. In terms of
insurance density, India’s overall density stood at US$ 78 in FY21.

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Premiums from India’s life insurance industry is expected to reach Rs. 24 lakh crore
(US$ 317.98 billion) by FY31. In FY23 (Until October 2022), premiums from new
businesses of life insurance companies in India stood at US$ 25.3 billion. In October
2022, life insurers’ new business premiums grew to Rs. 15,920.13 crore (US$ 1.94
billion), according to Life Insurance Council data. The gross first-year premium of life
insurers increased by 12.93% in 2021-22 to Rs. 314,262.42 crore (US$ 40.06 billion).

Between April 2021-March 2022, gross premiums written off by non-life insurers
reached Rs. 220,772.07 crore (US$ 28.14 billion), an increase of 11.1% over the same
period in FY21. In May 2022, the total premium earned by the non-life insurance
segment stood at Rs. 36,680.73 crore (US$ 4.61 billion), a 24.15% increase as
compared to the same period in the previous year. The market share of private sector
companies in the general and health insurance market increased from 48.03% in FY20
to 49.31% in FY21. Six standalone private sector health insurance companies registered
a jump of 66.6% in their gross premium at Rs 1,406.64 crore (US$ 191.84 million) in
May 2021, as against Rs. 844.13 crore (US$ 115.12 million) earlier.

Figure no.: 1

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B. MARKET SCENARIO

INVESTMENTS AND RECENT DEVELOPMENTS

The following are some of the major investments and developments in the Indian insurance
sector.

• With the introduction of new private sector companies, the insurance sector in India
gained momentum in the year 2000.India allowed private companies in insurance
sector in 2000, setting a limit on FDI to 26%, which was increased to 49% in 2014
and further increased to 74% in the Union Budget (Feb’21).

• The market share of private sector companies in the non-life insurance market rose
from 15% in FY2004 to 49.3% in FY2021.

• Private insurers like HDFC, ICICI and SBI have been some tough competitors for
providing life as well as non-life products to the insurance sector in India.

• The IPO of Life Insurance Corporation (LIC) of India was the largest IPO ever in
India and the sixth biggest IPO globally of 2022. As of November 2022, listing of
LIC accounted for more than a third of resources mobilised in the primary equity
market until November 2022.Insurance market in India is expected reach US$ 222
billion by 2026.Bots will become mainstream in both the front and back-office to
automate policy servicing and claims management for faster and more personalized
customer service.

• Insurers can now launch new health insurance products without IRDAI’s nod. Earlier
the flexibility was given for group insurance products but now retail products have
also come under the new norms.

• Bajaj Allianz Life Insurance, a private life insurer, has entered into a strategic
partnership with City Union Bank, one of the oldest private sector banks in India. This
partnership will help the private life insurer offer a wide array of life insurance
solutions to the bank’s existing and future customers, across their 727 branches.

• In October 2022, Policybazaar's PBPartners launches its mobile app to facilitate the
ease of insurance business for its advisors digitize their insurance business.

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• Canara HSBC Life Insurance launched its‘Canara HSBC Life Insurance App’ on the
75th Independence Day of India. The app, available on android, iOS devices and web
portal, offers access to policy details, the option to receive timely alerts, pay the
premium, and track fund value among others.ICICI Lombard and Airtel Payments
bank have entered into a partnership for providing cyber insurance in February 2022.

• Probus Insurance receives US$ 6.7 million in funding from a Swiss impact fund in
December 2021.

Companies are trying to leverage strategic partnership to offer various services

as follows:

• In November 2021, ICICI Lombard collaborated with Vega to provide a personal

accident insurance cover with every online Vega helmet purchase to increase road
safety awareness among customers.

• In November 2021, ICICI Prudential Life Insurance partnered with NPCI Bharat
BillPay, a subsidiary of National Payments Corporation of India (NPCI), to offer
ClickPay feature to its customers.

• In November 2021, Willis Towers Watson acquired the remaining 51% shares in
WTW India, taking the company’s holding in WTW India to 100%.

• In November 2021, Acko, a digital insurance start-up, raised US$ 255 million in
funds, taking the company’s valuation to ~US$ 1.1 billion.

• In September 2021, ZestMoney raised US$ 50 million to enter new business

opportunities in the insurance sector.

• In August 2021, PhonePe announced that it has received preliminary approval from
IRDAI to act as a broker for life and general insurance products. As a result, the
company can now offer insurance advice to its 300+ million users.

• In FY21, LIC achieved a record first-year premium income of Rs. 56,406 crore (US$
7.75 billion) under individual assurance business with a 10.11% growth over last year.

• In August 2021, ICICI Prudential Life Insurance tied up with the National Payments
Corporation of India (NPCI) to provide a unified payments interface autopay.

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 GOVERNMENT INITIATIVES

The Government of India has taken number of initiatives to boost the insurance
industry. Some of them are as follows:

• The Union Budget 2023-24 has proposed to limit the income tax exemption on the
proceeds of high value life insurance policies. Mooted as part of an emphasis on
better targeting of tax concessions and exemptions, the proposal means that income
from life insurance policies with an aggregate premium up to Rs. 5 lakh (US$ 6,075)
will be exempt from taxation.

• The government’s flagship initiative for crop insurance, Pradhan Mantri Fasal Bima
Yojana (PMFBY), has led to significant growth in the premium income for crop
insurance.

• Ayushman Bharat (Pradhan Mantri Jan Arogya Yojana) (AB PMJAY) aims at
providing a health cover of Rs. 5 lakh (US$ 6,075) per family per year for secondary
and tertiary care hospitalization.

• Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti
Yojana was provided during FY23.

• In 2022, the Indian government plans to sell a 7% stake in LIC for Rs. 50,000 crore
(US$ 6.62 billion). This is the largest initial public offering (IPO) in India.

• In September 2021, the Union Cabinet approved an investment of Rs. 6,000 crore
(US$ 804.71 million) into entities, offering export insurance cover to facilitate
additional exports worth Rs. 5.6 lakh crore (US$ 75.11 billion) over the next five
years.

• In August 2021, the Parliament passed the General Insurance Business

(Nationalisation) Amendment Bill. The bill aims to allow privatisation of state-run
general insurance companies.Union Budget 2021 increased FDI limit in insurance
from 49% to 74%. India's Insurance Regulatory and Development Authority (IRDAI)
has announced the issuance, through Digilocker, of digital insurance policies by
insurance firms.

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• Under the Union Budget 2021, Finance Minister Ms. Nirmala Sitharaman announced
that the initial public offering (IPO) of LIC will be implemented in FY22, as part of
the consolidation in the banking and insurance sector. Though no formal market
valuation has been undertaken, LIC’s IPO has the potential to raise Rs. 1 lakh crore
(US$ 13.62 billion).In June 2021, the government extended a Rs. 50 lakh (US$ 66.85
thousand) insurance coverage scheme for healthcare workers across India until the
next one year.

• In February 2021, the Finance Ministry announced to infuse Rs. 3,000 crore (US$
413.13 million) into state-owned general insurance companies to improve the overall
financial health of companies.

Figure no.: 2

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C. COMPETITOR’S ANALYSIS
Competitors
❖ LIC (Life Corporation Of India)

❖ ICICI Prudential

❖ HDFC Life Insurance

❖ Bajaj Allianz

❖ Bharti AXA Life Insurance

❖ Max Life Insurance

❖ SBI Life Insurance

❖ Tata AIG

Aditya Birla Sun Life Insurance is a leading insurance company in India, offering a
range of life insurance and retirement solutions. To provide a comprehensive
competitor analysis for Aditya Birla Sun Life Insurance, it would be necessary to
assess its key competitors in the Indian insurance market.

1. LIC (Life Insurance Corporation of India): LIC is the largest and oldest insurance
company in India. It has a significant market share and offers a wide range of life
insurance products. Its extensive network, brand reputation, and government backing
make it a formidable competitor for Aditya Birla Sun Life Insurance.
2. ICICI Prudential Life Insurance: ICICI Prudential Life Insurance is one of the
largest private sector life insurance companies in India. It has a strong presence in the
market and offers diverse insurance products and investment options. The company's
focus on technology and innovation, along with its distribution network, are key
competitive advantages.
3. HDFC Life Insurance: HDFC Life is another major player in the Indian insurance
market. It has a robust product portfolio, including traditional life insurance plans and
unit-linked insurance plans (ULIPs). The company's strong brand, extensive
distribution network, and customer-centric approach contribute to its competitiveness.
4. SBI Life Insurance: SBI Life Insurance is a joint venture between State Bank of
India and BNP Paribas Cardif. It benefits from the vast customer base of State Bank

14
 of India and offers a wide range of insurance products and investment options. The
company's strong bancassurance channel and brand association give it a competitive
edge.
5. Max Life Insurance: Max Life Insurance is a leading private life insurer in India. It
offers various protection and savings-oriented insurance products. The company has a
wide distribution network, efficient customer service, and a strong focus on digital
initiatives, making it a significant competitor.

Aditya Birla Sun Life Insurance is a leading insurance company in India. To conduct
a competitor analysis of Aditya Birla Sun Life Insurance, we need to identify its main
competitors in the insurance industry and evaluate their strengths, weaknesses,
opportunities, and threats (SWOT analysis). Here are some key competitors and their
analysis:

1. LIC (Life Insurance Corporation of India):

• Strengths: Largest insurance provider in India, trusted brand, extensive
network.
• Weaknesses: Slow decision-making process, bureaucratic structure.
• Opportunities: Growing demand for insurance products, untapped rural
market.
• Threats: Increasing competition, regulatory changes.
2. ICICI Prudential Life Insurance:
• Strengths: Strong market presence, diverse product portfolio, innovative
solutions.
• Weaknesses: High customer acquisition costs, limited penetration in rural
areas.
• Opportunities: Digital transformation, expansion into new markets.
• Threats: Intense competition, changing customer preferences.
3. SBI Life Insurance:
• Strengths: Association with State Bank of India (SBI), extensive
distribution network, strong customer base.
• Weaknesses: Slower turnaround time, limited customer service channels.
• Opportunities: Cross-selling with SBI, expansion into rural areas.

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 • Threats: Rising competition, regulatory changes.
4. HDFC Life Insurance:
• Strengths: Strong financials, wide range of products, customer-centric
approach.
• Weaknesses: Higher premium rates, limited presence in rural areas.
• Opportunities: Expansion through partnerships, digital initiatives.
• Threats: Increasing competition, changing customer expectations.
5. Max Life Insurance:
• Strengths: Strong distribution network, robust customer service, product
innovation.
• Weaknesses: Relatively smaller market share, limited brand recognition.
• Opportunities: Expansion in Tier 2 and Tier 3 cities, technological
advancements.
• Threats: Intense competition, regulatory changes.

D. PRODUCTS / SERVICES / MARKETS

Some of the key products and services offered by ABSLI include:

1. Life Insurance: ABSLI provides various life insurance plans, including term
insurance, savings plans, child plans, retirement plans, and wealth creation plans.
These plans offer financial protection and savings options to individuals and families.

2. Health Insurance: ABSLI offers health insurance policies that cover medical
expenses and provide financial support in case of illness, hospitalization, or accidents.

16
 These policies may include features such as cashless hospitalization, critical illness
coverage, and optional riders for enhanced coverage.

3. Guaranteed Investment Plans: ABSLI offers investment-linked insurance plans

(ILPs) that combine life insurance coverage with investment opportunities. These
plans allow individuals to grow their wealth while providing life protection.

4. Retirement Solutions: ABSLI provides retirement plans that help individuals build a
corpus for their post-retirement life. These plans offer regular income streams or

17
 lump-sum payouts after retirement, ensuring financial security during the golden
years.

5. Group Insurance: ABSLI offers group insurance solutions for employers to provide
life and health coverage to their employees. These plans can include term insurance,
employee benefit programs, and other group-specific insurance products.

6. Online Services: ABSLI provides online services such as online policy purchase,
premium payment, policy renewal, and customer support through their website and
mobile app. This allows customers to manage their policies conveniently.

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 MARKETS
FUND FACT SHEET

ABOUT:
Fund factsheets provide all essential information about a fund, including
objective of the fund, nature of the fund, fund manager, inception date, and
more. Other information, such as volatility measures taken to gauge and
manage the inherent risk factor of a fund, are also mentioned.

OBJECTIVE:

• The fact sheet covers basic information, such as the fund objective,
nature of fund, fund manager’s name, fund’s inception date, benchmark
index, corpus size, currentNAV, among other details.
• The next detail it showcases is the portfolio strategy of the fund through
investmentstyle, fund portfolio with top holdings, and allocation across
sectors and issuers.
• Volatility measures pertaining to ratios, such as Standard Deviation and
Sharpe Ratio,are also mentioned to gauge the inherent risk of the fund.

ABSLI FUND FACT SHEET INCLUDE

➢ Liquid Plus
➢ Assure Fund
➢ Income Advantage Fund
➢ Income Advantage Guaranteed Fund
➢ Protector Fund
➢ Builder Fund
➢ Balancer Fund
➢ Enhancer Fund
➢ Creator Fund
➢ Magnifier Fund
➢ Maximiser Fund and many more

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21
1.1 Asset Allocation (TOP 5)

i. Liquid Plus: -

OBJECTIVE: To provide superior risk-adjusted returns with low

volatility at a high level of safety and liquidity through investments
inhigh quality short term fixed income instruments – upto one year
maturity.

STRATEGY: Fund will invest in high quality short-term fixed

income instruments – upto one year maturity. The endeavour will be to
optimize returns while providing liquidity and safety with very
lowrisk.

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ii. Income advantage fund: -
OBJECTIVE: To provide capital preservation and regular income, at a high
level of safety over a medium termhorizon by investing in high quality debt
instruments.

STRATEGY: To actively manage the fund by building a portfolio of

fixed income instruments with medium term duration. The fund will
invest in government securities, highrated corporate bonds, high
quality money market instrumentsand other fixed income securities.
The quality of the assets purchased would aim to minimize the credit
risk and liquidityrisk of the portfolio. The fund will maintain
reasonable level of liquidity.

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iii. Super 20 Fund: -
OBJECTIVE: To generate long-term capital appreciation for policy
holders by making investments in fundamentally strong and liquid
large cap companies.
STRATEGY: To build and actively manage an equity portfolio of 20
fundamentally strong large cap stocks in terms of market capitalization
by following an in-depth research-focused investment approach. The
fund will attempt to adequately diversify across sectors. The fund will
invest in companies having financial strength, robust, efficient &
visionary management, enjoying competitive advantage along with
good growth prospects & adequate market liquidity. The fund will adopt
a disciplined yet flexible long-term approach towards investing with a
focus on generating long-term capital appreciation. The non-equity
portion of the fund will be invested in high rated money market
instruments and fixed deposits. The fund will also maintain reasonable
level of liquidity

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iv. Pure Equity Fund: -
OBJECTIVE: To provide long-term wealth creation by actively managing
portfolio through investment in selective businesses.Fund will not invest in
businesses that provide goods or services in gambling, lottery /contests, animal
produce, liquor,tobacco, entertainment like films or hotels, banks and financial
institutions.
STRATEGY: To build and actively manage a well-diversified equity
portfolio of value and growth driven fundamentally strong companies
by following a research-focused investment approach. Equity
investments in companies will be made in strict compliance with the
objective of the fund. The fund will not invest in banks and financial
institutions and companies whose interest income exceeds 3% of total
revenues. Investment in leveraged-firms is restrained on the provision
that heavily indebted companies ought to serve a considerable
amountof their revenue in interest payments.

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v. MNC Fund: -
OBJECTIVE: To provide capital appreciation by investing in equity
and equity related instruments of multi-national companies.
STRATEGY: The fund will predominantly invest in companies
whereFII / FDI and MNC parent combined holding is more than
50%. This theme has outperformed the broader market indices over
long-term. The companies chosen are likely to have above average
growth, enjoydistinct competitive advantages, and have superior
financial strengths.The fund will also invest in high quality money
market instruments and maintain adequate liquidity.

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E. BRIEF OF COMPANY & DEPT. PROFILE

Aditya Birla Sun Life Insurance Company Limited (ABSLI) is a subsidiary of Aditya
Birla Capital Ltd (ABCL). It is one of the leading private sector life insurance
companies in India. ABSLI was incorporated on August 4th, 2000 and commenced
operations on January 17th, 2001. ABSLI is a 51:49 joint venture between the Aditya
Birla Group and Sun Life Financial Inc., a leading international financial services
organization in Canada.

Formerly known as Birla Sun Life Insurance Company Limited, ABSLI is one of India’s
leading life insurance companies offering a range of products across the customer’s life
cycle, including children future plans, wealth protection plans, retirement and pension
solutions, health plans, traditional term plans and Unit Linked Insurance Plans (ULIPs).

As of December 31st, 2018, total AUM of ABSLI stood at Rs. 389,548 million. ABSLI
recorded a gross premium income of Rs. 18,599 million in Q3 FY 2018-19 and
registering a y-o-y growth of 68% in Individual First Year Premium and currently ranked
7th in Individual Business (Individual FYP adjusted for 10% single premium) (Source:
IRDAI reported Financials). ABSLI has a nation-wide distribution presence through 425
branches, 9 bancassurance partners, 6 distribution channels, over 83,000 direct selling
agents, other Corporate Agents and Brokers and through its website. The company has
over 10,000 employees and more than 16 lac active customers.

The company offers a complete range of protection solutions to help secure your family’s
future and provide financial support for your child’s education, wealth with protection
solutions, health and wellness solutions, retirement solutions, and savings with protection
solutions to help you stay financially secure in the future with small disciplined savings at

27
regular intervals. ABSLI puts people’s need first and aims to protect what is dear to the
customer, with assurance. While, Life Insurance cannot prevent risk, it can compensate
financial losses arising from risk.

Overview of Company’s Business

ABSLI has contributed significantly to the growth and development of the
life insurance industry in India and currently ranks amongst the top 7 private
life Insurance companies inthe country.
Company have a Nation-wide distribution presence through 416 branches , 8
banc-a- assurance partners, 6 distribution channels .Over 83,000 direct selling
agents, other corporateagents and brokers and through its websites. The
company has more than 13,000 employees and more than 17 lac active
customers.

As of December 31st, 2019, total asset under management of ABSLI stood at

Rs.4,27,907 million. ABSLI recorded a gross premium income of Rs. 22,276
million in Q3 FY 2019-2020and registering a y-o-y growth of 14% in
Individual first year premium and currently ranked 7th in Individual Business.

ABSLI spearheaded the dispatch of Unit Linked Insurance Plans (ULIPS).

ABSIL has strategy of unveiling their portfolio on a month to month premise to
set up its believabilityand include extra straightforwardness. ABSLI offers a total
scope of assurance answers for help secure your Family's future and ABSLI's
different creative protection plans take into account offer budgetary help for your
youngster's instruction, riches with insurance arrangements, wellbeing and health
arrangements, retirement arrangements and investment funds with security
arrangements, to assist with remaining monetarily secure later on with extra
arrangement of little restrained reserve funds at normal spans.. .

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Vision

To be the first preference of our customer by providing innovative, need based

life insuranceand retirement solutions to individuals as well as corporate.
These solutions will be made available well trained professionals through a
multichannel distribution network and superiortechnology.
It will provide constant value addition to the customer throughout their
relationship with us,within the regulatory framework

Values

• Integrity: Honesty in every action

• Commitment: Deliver on the promise

• Passion: Energized action

• Speed: One step ahead always

Benefits of Birla Sun Life Insurance:

□ Multiple plans: Birla Sun Life insurance offers their customer a host of
life insurance products- Term insurance, Endowment policy, ULIP, Money
Back Life insurance and wholelife Insurance.

□ Flexible premiums: Customer can enjoy flexibility in paying

premiums by opting formonthly or annually premium paying option.

□ Payouts and Benefits: Customer can opt for Annual Income or Lump
Sum benefit payoutoption.

□ Tax benefits: Customers are entitled to Tax saving benefits under

Section 80C, 80CCC,80CCE, 80D, Sec 3 of 10(10A) and 10(10D) under
the Income Tax Act,2016.

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Why Aditya Birla Sun life Insurance?

CLAIM SETTLEMENT RATIO:

It is often said that higher the claim settlement ratio, better it

is. ABSLI has an astounding claim settlement ratio of 97.15%.

STRONG LEGACY:

Aditya Birla Capital is one of the most trusted brands and its joint
venture with Sun LifeInsurance has gained accolades in the industry
with the name Aditya Birla Sun Life Insurance.

SIMPLE AND NEED BASED PRODUCTS:

ABSLI aims to make savings and living easier for each individual. So, each
product has beenmade in accordance with the basic and simple needs of every
customer.
Due to lockdown situation ABSLI has given e-payment option for premium
payments whichwill not only helpful to pay the premiums but also help for
digitalization by giving multiple online transaction options.
• Net Banking

• E-wallets

• Credit Card

• Debit card

• UPI

• IMPS

30
 Department Profile in ABSLI

Aditya Birla Sun Life Insurance is a renowned insurance company in India. While I
don't have access to specific details about the company's internal departments, I can
provide you with a general overview of the common departments typically found in
an insurance organization. These departments are likely to exist in Aditya Birla Sun
Life Insurance as well:

1. Sales and Distribution: This department focuses on sales strategies, channel

management, and distribution of insurance products. It includes roles such as sales
managers, sales agents, and relationship managers who are responsible for acquiring
new customers and maintaining relationships with existing ones.
2. Underwriting and Risk Assessment: The underwriting department assesses
insurance applications, evaluates risk factors, and determines the terms and conditions
of coverage. Underwriters analyze various factors, including medical history,
financial information, and claims history, to make informed decisions about issuing
policies.
3. Claims and Settlement: The claims department handles the processing and
settlement of insurance claims. Claims adjusters investigate claims, assess damages or
losses, and work with policyholders to provide compensation according to the terms
of the insurance policy.
4. Customer Service: The customer service department assists policyholders with
inquiries, policy changes, premium payments, and other service-related matters. They
provide support, address concerns, and ensure customer satisfaction.
5. Actuarial and Product Development: This department is responsible for product
development, pricing, and risk analysis. Actuaries use statistical models to assess
risks, determine premiums, and design new insurance products to meet market
demands.
6. Marketing and Communications: The marketing department develops and
implements marketing strategies to promote the company's insurance products and
services. It involves advertising, branding, digital marketing, and public relations
activities to enhance the company's visibility and attract potential customers.

31
7. Operations and Policy Servicing: This department manages the administrative
functions of policy issuance, policy servicing, and policyholder records maintenance.
It ensures smooth operations and efficient processing of policy-related activities.
8. Compliance and Risk Management: The compliance department ensures that the
company operates within legal and regulatory frameworks. They develop and
implement policies and procedures to mitigate risks, maintain compliance with
industry regulations, and safeguard the company's reputation.

These departments are commonly found in insurance companies, but the specific
structure and departments within Aditya Birla Sun Life Insurance is based on their
organizational setup and business focus.

F. ROLE IN A COMPANY
Key personnel in a value-added business of ‘ABSLI’ and their duties include:

1. Sales Agent/Advisor: Sales agents or advisors are responsible for promoting

insurance products and services to potential customers, explaining policy details, and
assisting with the application and enrollment process.
2. Underwriter: Underwriters assess and evaluate insurance applications, determining
the level of risk involved and deciding whether to approve or deny coverage. They
analyze various factors, such as medical history, financial information, and claims
history, to make informed decisions.
3. Claims Adjuster: Claims adjusters investigate insurance claims, assess the damages
or losses, and determine the coverage and compensation the policyholders are entitled
to. They may inspect damaged property, review documents, interview witnesses, and
negotiate settlements.
4. Actuary: Actuaries analyze statistical data, evaluate risks, and calculate the financial
implications of insurance policies. They use mathematical models and statistical
techniques to determine premiums, reserves, and other crucial aspects related to
insurance pricing and risk assessment.
5. Customer Service Representative: Customer service representatives handle
inquiries, provide assistance, and address concerns from policyholders or potential
customers. They may assist with policy changes, billing issues, claims status updates,
and general policy information.

32
6. Risk Manager: Risk managers assess and manage potential risks within the
company. They develop strategies to mitigate risks, implement loss prevention
measures, and ensure compliance with regulatory requirements. Their role is crucial
in maintaining a balanced risk profile for the company.
7. Product Manager: Product managers oversee the development and management of
insurance products. They conduct market research, analyze customer needs, and work
with various departments to design and launch new insurance products or enhance
existing ones.
8. Operations Manager: Operations managers oversee the day-to-day operations of an
insurance company. They ensure efficient workflow, manage staff, implement
procedures, and monitor performance metrics to meet business objectives.

33
 Equity Research
Equity research is the process of analyzing and evaluating publicly traded companies
to provide insights and recommendations to investors. It involves assessing various
factors such as financial performance, industry trends, competitive position, and
market conditions to determine the value and potential risks associated with investing
in a particular stock.

A typical equity research summary provides a concise overview of the key findings
and recommendations derived from the research process. While the specific content
and structure may vary depending on the research firm or analyst, here are some
common elements you might find in an equity research summary:

1. Company Overview: A brief introduction to the company being analyzed, including

its name, industry, and a description of its core business activities.
2. Investment Thesis: A summary of the analyst's perspective on the investment
potential of the company's stock. This section may highlight the key reasons why the
analyst believes the stock is attractive or unattractive for investment.
3. Financial Performance: An overview of the company's financial metrics, including
revenue, earnings, margins, and growth rates. This section may also include key ratios
or benchmarks used to evaluate the company's financial health and performance
relative to its peers.
4. Industry Analysis: A discussion of the company's position within its industry,
including market trends, competitive landscape, and regulatory factors that could
impact its operations. The analyst may provide insights into the company's
competitive advantages or challenges within the industry.
5. Valuation: An assessment of the company's intrinsic value or fair market price based
on various valuation methods such as discounted cash flow (DCF), price-to-earnings
(P/E) ratio, or comparable company analysis. This section may also include a target
price for the stock.
6. Risks and Challenges: An identification and discussion of the potential risks,
challenges, or uncertainties that could impact the company's performance and stock
value. This could include factors such as industry disruptions, regulatory changes, or
company-specific risks.

34
7. Catalysts and Opportunities: An exploration of potential catalysts or events that could
positively impact the company's stock value in the future. This section may include
upcoming product launches, expansion plans, or favorable market conditions.
8. Investment Recommendation: A clear and concise conclusion regarding the analyst's
recommendation on the stock. This could range from a "Buy" or "Sell"
recommendation to a more nuanced rating, such as "Outperform," "Neutral," or
"Underperform."

Top down: This philosophy follows the subsequent investment process:

(a) Consider the macro-factors i.e. the state of economy; invest within the
economy that's strong and growing.
(a) Then, consider the industry; invest within the industry which is
anticipated to outperformother industries
(b) (c) Finally, consider the company; invest within the company which
is predicted to be best within the industry.

Bottom up: This philosophy gives maximum weight to the 'company' i.e. a
bottom-up investor thinks about the money related wellbeing, items,
gracefully and request, and different parts of an organization's presentation
over a given time of some time. Utilizing thismethodology the portfolio
administrator give less consideration to the economy in general, orto the
possibilities of the business an organization is in.

Objective(s)
The primary objectives of equity research can be summarized as follows:

1. Stock valuation: Equity research aims to assess the intrinsic value of a company's
stock by analyzing its financial statements, industry dynamics, competitive landscape,
and other relevant factors. This helps investors make informed decisions about
buying, selling, or holding stocks.
2. Investment recommendations: Equity research analysts provide investment
recommendations based on their analysis of companies and industries. These

35
 recommendations can include "buy," "sell," or "hold" ratings, along with target price
estimates. The objective is to guide investors in making sound investment decisions.
3. Company analysis: Equity research involves conducting in-depth analysis of
individual companies. This includes evaluating their financial performance,
management quality, growth prospects, market position, and other factors that may
impact the company's value and future outlook.
4. Industry analysis: Equity research analysts analyze specific industries or sectors to
gain insights into their trends, challenges, and growth potential. This helps investors
understand the broader market dynamics and identify investment opportunities within
specific sectors.
5. Risk assessment: Equity research aims to assess the risks associated with investing in
a particular company or industry. This includes evaluating factors such as financial
stability, regulatory risks, competitive threats, and macroeconomic conditions. The
objective is to provide a comprehensive view of the potential risks investors may face.
6. Market monitoring: Equity research involves monitoring market trends, news, and
events that may impact stock prices and investment decisions. Analysts keep track of
company announcements, earnings releases, industry developments, and
macroeconomic indicators to provide up-to-date information to investors.
7. Investor education: Equity research aims to educate investors about various aspects
of the stock market, including investment strategies, risk management, and financial
analysis techniques. The objective is to empower investors with knowledge to make
informed investment decisions.

Literature Reviews
• KSHETRIMAYUM SOBITA DEVI (2011) in her thesis titled “A STUDY
OF THEIMPACT OF LIBERALIZATION ON THE INDIAN LIFE
INSURANCE INDUSTRY”studied the impact of privatization and the role
played by private companies in the Indian insurance industry. The author
also studied the insurance penetration between1999 and 2009 and opined
that Insurance density has a direct correlation with the GDP performance.
• Raja Babu (2012) in his thesis titled “INSURANCE SECTOR REFORMS
IN INDIA”studied major reforms initiated in the Indian Insurance sector

36
 and the period of study was between 2001 and 2010. He opined that
development of Insurance sector is dependent on overall economic
development of the nation and Govt. of India need to take enough steps to
generate employment opportunities in various sectors which in turn will
promote the industry.
• Insurance Times Magazine (2012) an insurance magazine in its article
“Life insurance penetration in India higher than global average” stated
that life insurancepenetration in India was higher than the world average
in 2010. It further stated that
the combined average is higher than Brazil and Russia and most of the
other countriesof Asia, including Bangladesh, Pakistan, China and Sri
Lanka.
• Insurance Times Magazine (2013) the Insurance magazine in its article
“State-wise life insurance penetration and density of individual new
business in India” opined thatInsurance penetration is correlated with the
country’s GDP. With every point of increase in GDP there is a proportionate
increase in insurance penetration.
• Insurance Times Magazine (2018) an insurance magazine in its article
“India’s insurance gap widens despite deeper penetration, says study”
compared Insurance penetration across globe and opined that one of the
key reasons for this low level ofinsurance is that as the number of natural
catastrophes such as flooding increase, sodo insurance prices. As a result,
businesses, government and households less at riskare deterred from
taking out insurance.
• Rao, S. (2000) analyzed that India is still an underdeveloped insurance
market, it has a huge catch-up potential. According to him even though
there is strong potential for expansion of insurance into rural areas, growth
has so far remained slow. Consideringthat the bulk of the Indian population
still resides in rural areas, it is imperative that the insurance industry’s
development should not miss this vast sector of the population.
• Goyal, K. (2004), reviewed that private insurance companies had reason
to celebratewith the lifting of the scrotal cap in the insurance sector to 49
per cent in the Union Budget 2004-05, as against 26 per cent earlier

37
• Jain, A.K. (2004), revealed that Waves of liberalization have done wonders
to proper the insurance occupation to the status of a career with a bright
future. The average mindset, particularly of younger generation in India was
very amenable to the changesin insurance as an avenue where exhilarating
opportunities are opened up in changed environment.

Research Methodology
Research Type: - Descriptive Research

Data:

Data collected for analysis of a company is from the Annual Reports of the
year 2019-2018, 2018-2017, and 2017-2016. I have used balance sheet,
profit and loss account and cash flowstatement from the same.

Sample Size:

Three large cement companies are chosen as sample size of the study,
on account of sales,production, and profitability.

Tools:

To analyze the cement sector and cement companies tools like ratio
analysis, technical analysis is used which gave fair enough idea about
the sector and company.

38
Ultra Tech Cement

Fundamental Analysis
Ultra Tech Cement Ltd is that the biggest maker of dark concrete, prepared
blend concrete (RMC) and white concrete in India. With a capacity of
117.35 MTPA, it’s the third largest cement producer within the world,
(Outside of China).
23 coordinated plants, 1 clinkerisation plant, 27 granulating units and 7 mass
terminals, suchhuge units Ultra Tech Cement have Across India, UAE,
Bahrain, Bangladesh and Sri Lanka they have their operation span.
With 100+ Ready Mix Concrete (RMC) plants in 35 urban communities,
UltraTech is that thebiggest maker of cement in India. It consolidates a large
number of claims to fame cements that address explicit issues of observing
clients. Building Products business is an advancement center point that gives
a variety of experimentally built items to take into account new-age
developments.
UltraTech pioneered the UltraTech Building Solutions (UBS) concept to
supply individualhome builders with a one-stop-shop solution for building
their homes. This is the often theprimary pan-India multi-category retail
chain catering to the wants of individual home builders (IHBs). The aim of
this initiative is to have interaction with home builders in any respect
stages of the development cycle, empower them with quality construction
productsand services, and assist within the completion of their dream
homes.

39
Key Persons

Chairman- Kumar Mangalam Birla

Directors- K. K. Maheshwari, Managing Director
K. C. Jhanwar, (Deputy Managing Director & C.F.O)

Atul Daga, (Whole-time Director & CFO)

Independent Directors- Arun Adhikari

Mrs. Alka Bharucha

G. M. Dave

Mrs. Sukanya Kripalu

S. B. Mathur

Mrs. Renuka Ramnath

Products
• Ultra Tech Cement
• Ultra Tech Concrete
• Ultra Tech Building Products
• Ultra Tech Building Solutions
• Birla White Cement

Achievements

40
 Data Analysis
Business Performance
Particulars FY21 FY20 FY19 FY18 FY17
Installed Capacity 66.25 88.50 85.00 64.65 60.15
(MTPA)
Production (MMT) 47.91 57.21 67.20 47.56 43.88
Capacity Utilization 72.31% 64.64% 79.05% 73.56% 72.95%

Sales

Particulars FY21 FY20 FY19 FY18 FY 17

Domestic Sales 69.52 57.75 47.62 47.13 43.95

Exports & Others 3.00 2.90 2.56 0.84 0.90

Total Sales Volume 72.52 60.65 50.19 47.97 44.85

Financial Performance

Particulars FY21 FY20 FY19 FY18 FY 19

Sales 41,375.75 36174.95 30384.80 24551.38 24189.45

Expenses 31996.87 29183.23 23906.82 18922.48 19082.19

EBITDA 9378.88 6991.72 6477.98 5628.90 5107.26

Depreciation 2454.90 2010.27 1763.56 1267.87 1297.0

EBIT 6923.98 4981.45 4714.42 4361.03 3810.22

Interest 1704.22 1419.15 1186.30 571.39 511.66

EBT 5219.76 3562.30 3528.12 3789.64 3298.56

TAX -235.78 1106.58 1070.56 1148.23 928.40

EAT 5455.54 2455.72 2231.28 2627.72 2370.16

EPS 189.01 89.42 81.25 95.72 86.37

41
Shareholding-Pattern

Particulars 2018 2019 2020 2021

Promoters 62.05 61.69 60.19 59.70

FIIs 22.02 20.38 17.60 16.48

DIIs 5.67 7.58 12.99 14.15

Government 0.03 0.04 0.07 0.07

Public 10.05 10.24 9.08 9.53

Usefulness
The composition in which shares are distributed plays a major role in
effectiveness and efficiency of companies. Whether be banks, foreign
investors, preferential allotment, government or general public shares should
be allotted in proper quota/ composition as ithas major impact on company’s
efficiency.Shareholding pattern allows investor to know about stakes held in
the company andthrough looking analyzing data it can be interpreted.

Analyzing 5 years data it can be said that,

1. Promoter’s stake has reduced which might reflect that

promoters areselling their shares.
2. Constant promoter’s stake is always good for the company as
it reflects that promoter is confident about the current
performance as well as futureof the company.
3. Foreign Institutional Investors (FII) stake in the company is
reducing in the last 5 years. The reason could be that foreign
investors investing in other competitor company or Ultra Tech
cement or government failed toattract FII.
4. When public stake increases it reflects that company has
successfully attracted public to invest in the company through
overall business performance. As Ultra Tech is one of the top
companies, it has increased its overall capacity and pan base
network with increase in sales which helped them to gain public
investment.

42
Comparative Performance Analysis with Competitors
Particulars Ultra Tech Shree Ambuja Nifty
1 Year
Change -14.97% 6.04% 7.01% 1.75%

BETA 0.94 1.08 1.01 1

Market Cap 110771.8 77819.5 39305.85

Dividend Yield
0.34 0.51 0.76

P/E 20.51 50.68 18.25

Volume 580750 61888 4904595
traded

Analysis
• Shree Cement and Ambuja cement have outperformed the broader
indices, which isevident from the fact that these 2 have a Beta of
more than 1.
• Meanwhile Ultra Tech has given negative return. Its Beta is less than
1. It can be usedfor hedging strategies in portfolio.
• The average industry P/E is 22.68 times. Shree cement trades at
50.68 times of itsprice which shows that it is overvalued as
compared to its peers.
• Ambuja cement delivered high returns with the highest dividend
yield among the 3 companies which shows that it is better stock
compared to the other 2 in terms of return. It also has moderate
Beta which indicates that it gave highest return by takingmoderate
amount of risk.
• One possible portfolio combination by considering 3 stocks only
could be a shortposition in ultra tech and going long in shree and
Ambuja.
• All three stocks have decent volume which shows that these are highly liquid
stocks.

43
Current Scenario

Particulars Ultra Tech Shree Cement Ambuja cement

Market Cap Rs 110,772 Cr Rs 77,820 Cr. Rs 39,306 Cr.

Current Price Rs 3,838 Rs 21,568 Rs 197.95

Rs
25355.00 / 15410.00
52 weeks High / Low Rs 4754.10 / 2910.00 Rs 225.00 / 136.55

Book Value 1,327 3,650 116.39

Stock P/E 20.51 50.68 18.25

Dividend Yield 0.34 % 0.51 % 0.76 %

ROCE 13.05 % 15.51 % 17.37 %

ROE 16.32 % 13.45 % 9.01 %

Sales Growth 19.38 % 14.40 % 10.49 %

Face Value Rs 10 Rs 10 Rs 2

Interpretation:

▪ Market Capitalization

Market Capitalization is basically the value of shares outstanding of a given

company. Itis calculated on the basis of value of the share on stock market at a
particular date.
Various companies compete within themselves to increase their market
capitalization. Itis preferred that it should always be as high as possible in
terms of amount as investors consider it as a major aspect in determining
whether to invest in a company or not.

44
 Ultra Tech cement have highest market cap and Ambuja cement have
lowestmarket cap. This shows that Ambuja cement needs focus on
attracting investor to invest by increasing business performance which
would reflect on their financials.
▪ Addition to this, they also need to increase their management and working
efficiency which will help to increase profitability. They can also increase
their dividend payout to attract investment.
▪ The more they increase their performance, more the investor will invest
and thus market cap of Ambuja cement would go up

▪ ROCE

Capital is the sum of money which is invested in business. Any company

would love toenjoy a higher return on capital. More the higher the return
on capital better it is. It depicts the efficiency at which the business
operations is being carried out and relates directly with the operating
profit of the company.

Formula for calculating ROCE is as follows- Net Operating Profit/ Capital

Employed.

▪ Even though market cap of Ultra Tech is more but its ROCE is lower as
compared to others.
▪ Ambuja cement’s ROCE is high which reflects that this company is
generating higher level of returns through their capital employed. Having
better management, operational efficiency, expertise etc. helps to deploy and
use its capital in appropriate manner so that higher returns can be generated
whichAmbuja cement is doing.
▪ Ultra Tech and Shree cement must focus on its operational efficiency,
expertise, appropriate allocation of capital so that they could generate higher
return on the capital they have employed.
▪ ROE

This ratio shows how well the company is being managed by the
management. It is theamount of return on equity capital of the company.
Thus precisely, it refers to management approach of using shareholders

45
 fund. Formula for calculating ROE is as follows- Net Income/ Average
Stockholder’s Equity.
▪ Ultra Tech’s ROE represents that their management is well enough
and they havegiven better returns to their shareholders by using
they investment is best appropriate manner.
▪ Whereas Ambuja cement’s shareholder did not get appropriate
returns on their equity as their ROE reflects that. To increase the
ROE, company must have well enough management which is
capable to give returns to their investor.
▪ Shree cement ROE is at good level as they have used their
shareholders’ fund andgave returns to their shareholders.

▪ Stock P/E

Simply speaking it shows whether a stock is expensive or cheap. If the

price of stock is high it means it is expensive and if it is low it is cheaper.
The P/E ratio helps the investorto determine the investment decision as
one may calculate the price of shares according to his own calculations
and workings.

Formula for calculating P/E ratio is as follows- Market price per

share/ Earnings pershare.

▪ The average industry P/E is 22.68 times. Shree cement trades at

50.68 times of itsprice which shows that it is overvalued as
compared to its peers.
▪ Lower P/E like Ambuja shows that it is undervalued share.

▪ Dividend Yield

It is the percentage of dividend that the company pays related to stock

price. An investorexpects the company to pay higher dividend so that his
return on portfolio can be maximized. Enhanced and matured company
usually tend to pay dividend each year to it’s investor in order to attract
further capital investment by them.
▪ Ambuja cement delivered high returns with the highest dividend yield

46
 among the 3 companies which shows that it is better stock compared to
the other 2 in terms of return.

▪ Higher dividend attracts more investor.

Mapping of Cement Companies

Analysis
Mapping of Cement companies helps to the investor while doing
analysis for choosingbest stock among others.
As it is very important for the new investor to know and analyze
where he can investconsidering the brand image and share price. As
this one of the parameters which investor must consider before
investment.
Looking at the mapping, it becomes easier for the investor where he can
invest if he/shehas some option and can choose suitable stock for him.

• Ultra Tech cement is Top brand as it has pan based availability in the
country. It had launched its premium product which had good demand
in the market. But its share price is at medium level which is between
2910-4754 (high-low). We can say that thiscompany is might for the
investor who can afford medium level of share price.
• Ambuja Cement is considered to be at medium level brand whose
share price is verylow.
• An investor who wants to invest in cement stock but can-not afford
high share price Ambuja cement might be good company for them. Its

47
 stock price is around 136-225(High-low)
• Shree cement’s share prices are too high and it is only for the investor
who can affordhigh level of stocks in their portfolio.154100-
25355(high-low).

RATIO ANALYSIS
1. LIQUIDITY RATIO
A significant class of money related measurements used to decide an
account holder's capacity to take care of current obligation
commitments without raising outside capitalcould be a Liquidity Ratio.

CURRENT RATIO:
Current ratio indicates company’s ability to meet its short-term debt
obligations; the higher the ratio; the more liquidity is there. It indicates
whether the company has enoughcash and cash equivalents to cover its
short-term liabilities.
If current assets are more than current liability then, it is generally
considered to havegood short term financial strength and if it seems
vise a versa then it reflect poor financial condition.

Current Assets
Current Ratio =
Current Liabilities

Year Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Ultra Tech Cement 1.04 0.9 0.85 0.94 1.02
Shree Cement 1.55 1.54 1.65 1.92 2.01
Ambuja Cement 2.03 1.23 1.34 1.55 1.54

Current Ratio
2.5

1.5

0.5

0
2022 2021 2020 2019 2018
Ultra Tech Cement Shree Cement Ambuja Cement

48
 Interpretation

• It can be seen that Ultra Tech Cement’s ability to meet its short term
obligation lowered down after 2015 continuously for 4 years and so it
became lower than 1 which shows that for payment of its debt, company
did not have sufficient short term capital.
• Shree cements performance increased over the period of time in last 5
years hence, Company’s ability to their obligation is at good position
which shows company has current asset more than current liability. It is
like company has Rs2 for payment of Rs 1 which is double of obligation
to pay.
• Ambuja cement has enough assets to pay its liability as they have assets
more than liability. But in last five years company’s current liability is
increasing hence debt obligation is high hence company needs to
increase their current asset.

2. SOLVENCY RATIO

It is also called financial leverage ratios. These ratios compare a

company's debt levelswith its assets, equity, and earnings

INTEREST COVERAGE RATIO

The interest coverage ratio is employed to work out how easily a company
will pay theirinterest expenses on outstanding debt. Companies have to
have enough earnings to coverinterest payments so as to survive future.
A company’s ability to satisfy its interest obligations is a facet of its
solvency and is thusan awfully important think about factor in the return
for shareholders.

Year 2018 2019 2020 2021 2022

Ultra Tech Cement 6.27 7.45 7.63 3.97 3.51
Shree Cement 4.62 25.45 21.08 16.92 6.34

Ambuja Cement 13.77 18.23 16.11 20.87 24.32

49
 Interest Coverage Ratio
30

25

20

15

2022 2021 2020 2019 2018

Ultra Tech Cement Shree Cement Ambuja Cement

▪ This ratio shows the ability of company to pay its interest on its debt and
the actual principle amount also. In last 2 years Ultra Tech Cement’s
EBIT has reduced in last 5 years which says that company’s earning has
reduced.
▪ Shree Cement’s interest payment ability is at good level but it is
fluctuating over the period of time which shows that company’s EBIT is
fluctuating.
▪ Ambuja Cement’s financial performance shows that their interest
coverage ratiois increasing hence it can pay interest and principal
amount easily.

3. PROFITABILITY RATIOS

These ratios convey how well a corporation can generate profits from itsoperations.
NET PROFIT MARGIN RATIO:

Net profit margin could be a measure of profitability. It’s the net profit as
a percentageof the revenue. It’s also called as net margin.
It helps investors assess if a company’s management is generating enough
benefit that isprofit from its operation.

50
 Year 2018 2019 2020 2021 2022
Ultra Tech Cement 9 10 11 8 7
Shree Cement 6.60 20.73 15.58 14.07 8.11
Ambuja Cement 13.10 13.09 11.94 10.13 8.53

Net Profit Margin

25

20

15

10

0
2022 2021 2020 2019 2018

Ultra Tech Cement Shree Cement Ambuja Cement

Interpretation

▪ It can be interpret that Ultra Tech’s Net Profit as compared to its revenue
is not stable hence the financial performance is not going well.
▪ Shree cement has done really well in last five years and hence,
Company’s Net profit was high and so the Net Profit Margin Ratio was
also high but it started declining due to lowered net profit in last 3 years.
▪ Ambuja Cement’s Net Margin was also reduced hence company needs
to increase its net profit as compared to its revenue.

DIVIDEND PAYOUT RATIO:

The total amount of dividends paid out to shareholders relative to the net
income of thecorporate is Dividend Payout Ratio.

51
 It is the proportion that’s percentage of earnings paid to shareholders in
dividends. It’ssometimes also called as ―pay-cut ratio‖. It states that
what proportion money is returning to shareholder versus what quantity
it’s keeping there to reinvest in growth, pay-off debt or boost cash
reserves.

Dividend Paid
Dividend Payout Ratio =
Net Income

Year 2018 2019 2020 2021 2022

Ultra Tech Cement 12.26 12.37 9.92 12.30 11.74
Shree Cement 19.61 11.58 30.17 11.07 20.14
Ambuja Cement 53.80 46.61 44.49 26.70 19.48

Dividend Payout Ratio

60

50

40

30

20

Jan-18 Jan-19 Jan-20 Jan-21 Jan-22

Ultra Tech Cement Shree Cement Ambuja Cement

▪ Ultra Tech Cement’s Dividend payout ratio is nearly consistent in last 5

years which says that company paying its dividend from income earned from
at almost same level.
▪ Dividend Payout Ratio of Shree cement is fluctuating every year and this
chart shows that company has paid highest dividend in 2017.
▪ Ambuja Cement’s dividend payout ratio has decreased since 2015 which
show that company is using its profit/ revenue for its growth purpose.
Decreased proportion mirrors that organization centers around development
of business rather that profit installment.

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Price Earnings Ratio:

The Price Earnings Ratio (P/E Ratio) is the connection between an

organization's stockcost and profit per share (EPS). It is a well-known
proportion that gives financial specialists a superior feeling of the estimation
of the organization.

The P/E ratio helps investors determine the market value of a stock as
compared to the company's earnings. In short, the P/E proportion shows what
the market is eager to pay today for a stock dependent on its past or future
income. A high P/E could suggest that astock's cost is high relative with
salary and conceivably misrepresented. On the other hand, a low P/E may
show that the current stock cost is low relative with salary.

P Market Value Per Share

Ratios =
E Earnings Per Share

Year 2018 2019 2020 2021 2022

Ultra Tech Cement 37.60 35.74 40.34 48.79 45.11
Shree Cement 92.55 37.86 44.28 40.73 64.51

Ambuja Cement 39.0 37.05 35.51 20.46 18.61

100

90

80

70

60

50

Jan-18 Jan-19 Jan-20 Jan-21 Jan-22

Ultra Tech Cement Shree Cement Ambuja Cement

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 Interpretation

▪ Ultra Tech’s P/E ratios increased in last five years continuously which
show that company’s market value per share has increased relative to
earnings per share of company. It shows its offer is esteemed at elevated
level and is expanding.
▪ Shree Cement’s P/E ratio has drastically come down after 2015 but then in
2019 company’s P/E ratio increased at good level due to its good
operation performance.
▪ As Ambuja Cement’s market value per share came down, its P/E ratio also
reduced in last 5 years which reflects that its business performance is not
going good in this market.

Technical Analysis
Technical analysis is a method for analyzing and foreseeing value developments in the
monetary markets, by utilizing authentic value diagrams and market measurements. It
depends on the possibility that if a broker can distinguish past market designs, they
canshape a genuinely exact forecast of future value directions.

Technical analysis is based purely on the price charts of an asset. It is exclusively the
distinguishing proof of examples on a diagram that is utilized to foresee future
developments.

Technical traders accept that current or past value activity in the market is the most
solidpointer of future value activity. Specialized examination isn't just utilized by
specializedbrokers. Numerous essential brokers utilize central examination to decide
if to become tied up with a market, yet having settled on that choice, at that point
utilize specialized investigation to pinpoint great, okay purchase section value levels.

Technical analysis include putting stock data like costs, volumes and open enthusiasm
on a diagram and applying different examples and markers to it so as to evaluate the
future value developments. The time period where specialized investigation is applied
may go from Intra-day (1-minute, 5-minutes, 10-minutes, 15-minutes, 30-minutes or
hourly), day by day, week by week or month to month value information an excessive
number of years.

54
 TYPES OF CHARTS

Charts are graphical presentations of significant worth information of

securities aftersome time.

Graphs plot certain data subject to a blend of significant worth, volume

similarly as timeranges

Line Charts

▪ Line diagrams are the most fundamental type of outlines, they are made
out of a solitary line from left to right that interfaces the end costs. By
and large, just the endcost is diagrammed, introduced by a solitary point.
▪ This is a famous sort of diagram utilized in introductions and reports
to give anextremely broad perspective on the recorded and current
course.
▪ It is clear just as a straightforward method of getting a general thought
of the valuedevelopment's heading in the market, which is favoured by
certain dealers.
▪ While this sort of graph doesn't give a lot of understanding into intraday
value developments, numerous brokers believe the end cost to be a
higher priority than theopen, high, or low cost inside a given period.

Bar Chart

▪ One of the fundamental instruments of specialized examination is the bar

diagram. Bar graphs are likewise alluded to as open-high-low-close (OHLC)
diagrams. They areincluded a progression of vertical lines that show the value
extend during that Time Frame. Bar outlines empower dealers to find designs
all the more effectively as they considerall the costs, open, high, low and close.

55
▪ The opening cost is the level scramble on the left half of the even
line and the endcost is situated on the correct side of the line.
▪ On the off chance that the initial cost is lower than the end value, the
line is frequentlyshaded dark (or green) to speak to a rising period. The
inverse is valid for a falling period, which is spoken to by red shading.

Candlestick Chart

▪ Another sort of outline utilized in the specialized examination is the candle

diagram, alleged on the grounds that the primary segment of the graph
which speaks to costs resembles a candle, with a thick 'body' and normally,
a line stretching out above and underneath it, called the upper shadow and
lower shadow, individually.
▪ The head of the upper shadow speaks to the significant expense, while
the base of the lower shadow shows the low cost. Examples are framed
both by the genuine body and the shadows. Candle designs are generally
helpful over brief timeframes, and for the most part have hugeness at the
head of an upswing or the base of a downtrend, when the examples
frequently show an inversion of the pattern.

56
 Key Findings / Interpretations
➢ India is known to be second biggest concrete maker inside the world and records
for more than 8 % of the world's introduced limit starting at 2019.
➢ Cement production reached 334.48 million tonnes (MT) in FY20.
➢ India’s cement production capacity is predicted to achieve 550MT by 2025.
➢ A variety of the recent major initiatives like development of 100 smart cities are
expected to provide significant boost to the current sector.
➢ Cement creation is reached to 334.48 million tons in FY2020 and its foreseen to
contact 550 million tons by FY 2020. Out of the complete limit, 98% lies with
the private part and furthermore the rest with the open division.
➢ The highest 20 cement companies account for nearly 70 % of the overall cement
production of the country.
➢ 210 colossal solid plants speak to a joined presented breaking point of in excess
of 410 million tons, with 350 little plants speaking to the update. Out of those 210
enormous concrete plants, 77 are situated inside the conditions of Andhra Pradesh,
Rajasthan and Tamil Nadu.
➢ Limit expansion of 20 million tons for every annum (MTPA) is foreseen in till
FY22.
➢ In FY20, Cement request had declined in FY20, which was just the second
occasion of decay inside the previous 15 years, after the demonetization
influenced FY17.
➢ The move is predicted to spice up the demand of cement from the housing
segment. As per Union Budget 2019-20, Government is expected to upgrade
1,25,000 kms of road length over the following five years.
➢ An oversized of foreign players are expected to enter the cement sector, as a
results of the profit margins and steady demand.
➢ Demand decline of around 40 per cent in May. It is expects a gradual recovery
thereafter once lockdown is lifted.
➢ Demand revival expected in last half of the fiscal led by release of pent up
demand andgradual devour in government spending on infrastructure and
affordable housing projects in urban belts as worker shortage reduces.

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 Future Scope Of The Topic
Equity research on Ultratech Cement, a leading cement manufacturer, involves analyzing
its financial performance, market dynamics, industry trends, and competitive landscape to
assess its investment potential. While I cannot provide real-time information or make
predictions beyond my knowledge cutoff in September 2021, I can give you a general
understanding of the future scope for Ultratech Cement based on historical trends and
industry dynamics.

1. Expanding Infrastructure and Construction Sector: Ultratech Cement operates in the

cement industry, which is closely linked to infrastructure development and construction
activities. The future scope for Ultratech Cement depends on the growth of these sectors.
Governments across the world often invest in infrastructure projects to stimulate
economic growth, and this can drive the demand for cement. The expansion and
modernization of cities, urbanization, and increasing population can also create
opportunities for Ultratech Cement.
2. Sustainable Building Practices: In recent years, there has been a growing emphasis on
sustainable building practices and environmentally friendly construction materials.
Ultratech Cement, as a key player in the cement industry, can capitalize on this trend by
offering eco-friendly cement products that have lower carbon footprints, improved energy
efficiency, and reduced environmental impact. Focusing on sustainable manufacturing
processes and promoting green building initiatives can enhance the company's future
prospects.
3. Technological Advancements: Innovation and technology play an essential role in the
cement industry's future scope. Ultratech Cement can leverage technological
advancements to improve its production processes, enhance product quality, and optimize
costs. Research and development efforts in areas such as alternative fuels, waste
utilization, and the use of advanced admixtures can help Ultratech Cement maintain its
competitive edge and cater to evolving customer demands.
4. International Expansion: Ultratech Cement has a significant presence in India, but there is
potential for the company to expand its operations internationally. Exploring new
markets, strategic acquisitions, or joint ventures can provide opportunities for growth and
diversification. The future scope for Ultratech Cement may include penetrating emerging

58
 economies with a growing demand for cement, such as Southeast Asia, Africa, and the
Middle East.
5. Regulatory and Policy Changes: Government regulations and policies can significantly
impact the cement industry's future outlook. Changes in environmental regulations, tax
policies, or incentives for infrastructure development can affect Ultratech Cement's
operations and profitability. Monitoring and adapting to regulatory changes will be
crucial for the company's future success.

It's important to note that the future scope of any company, including Ultratech Cement,
depends on various external factors, market conditions, and management strategies.
Conducting up-to-date research and analysis is essential for making informed investment
decisions.

LIMITATIONS:

➢ Even though all possible analysis tools and financial data are used to study Cement Sector
in India, it may possible that some portion of the industry remained unanalyzed.
➢ As the latest data of Cement Companies of this year is still not available it was impossible
to include the data of FY2020 and analyze for the same.
➢ As we can’t include all the parameter and tools-technique at a time, there might be other
parameters to analyze the sector or the companies which can give better or other results
from this result.
➢ In this report we have taken financial data for 3 years only, hence considering more than 3
years might be reflect different results from this one.
➢ As full technical analysis of companies is not done so for the analyst who prefer technical
analysis it this report can be a limitation.
➢ Different analysts have different perception towards analysis of the company or sector.
➢ As due to Covid-19 economy has slashed so the situation of this sector has changed and
dueto non -availability of data it was not possible to analyze this year performance.

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 CONCLUSION

➢ Cement Sector plays vital role in development of Indian economy as Indian Cement is 2nd
largest in the world.
➢ Factors like Economic, Political, Social, Technology affects the growth of the Indian
Cement Industry hence it is important to have better environment for the success of the
Indian Cement company.
➢ Shree Cement’s current ratio is in upward trend as compared to Ultra Tech and Ambuja
Cement which shows that Shree cement have more Current Asset than Current liability to
meet its obligation as compared to other two.
➢ Ambuja Cement’s ability to meet it current obligation is better than Shree Cement andUltra
Tech Cement.
➢ Ambuja Cement’s financial ability to pay its interest on debt is much better than Shree
cement and Ultra Tech cement hence it can be said that Ambuja cement can get capitalmuch
easier than other two due to its better ability to pay interest.
➢ In Last 5 years Shree Cement had better Net profit margin which reflects that profitability
of shree cement is at good position compared to Ultra Tech and Ambuja due to better
business performance.
➢ Ultra Tech and Shree Cement had better returns in last 5 years from capital that they have
employed. But Ambuja cement’s returns from its capital invested has decreased in last 5
years which reflects that their business performance wasn’t good enough.
➢ Earnings per share of three of the companies that is Ultra Tech, Shree Cement and Ambuja
has been consistently good is last 5 years which reflects that stock performance of this 3
companies have better results.
➢ Dividend payout ratio of Ambuja Cement showed decreasing flow which reflects that
company is using their money for the growth purpose of company rather than paying it to
shareholders.
➢ Ambuja Cement’s market value compared to their earning per share has decreased over the
last 5 years but Ultra Tech cement and Shree Cement have well enough market valuewhich
reflects that, those companies have better market value per share.
➢ It can be said that Shree Cement’s financial performance is better than Ultra TechCement.
➢ Ambuja Cement. As well as Ambuja Cement’s business performance is well enough as
compared to other 2 companies.

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 BIBLIOGRAPHY

Reports:
➢ Annual Reports

News websites:
➢ https://www.ijsr.net/archive/v4i9/SUB157950.pdf
➢ https://www.alphainvesco.com/blog/understanding-indian-cement-industry/
➢ https://www.coverfox.com/life-insurance/life-insurance-
companies/birla-sun- lifehttps://www.coverfox.com/life-
insurance/life-insurance-companies/birla-sun-life-
insurance/insurance/
➢ https://www.ibef.org/download/Cement_January_2022.pdf
➢ https://www.equitymaster.com/research-it/annual-
resultshttps://www.equitymaster.com/research-it/annual-results-
analysis/CEMCO/ULTRATECH-CEMENT-2017-18-Annual-
Report- Analysis/48analysis/CEMCO/ULTRATECH-CEMENT-
2017-18-Annual-Report-Analysis/48
➢ https://www.slideshare.net/BabasabPatil/a-project-report-on-
technical-analysis- athttps://www.slideshare.net/BabasabPatil/a-
project-report-on-technical-analysis-at- cement-sector-in-share-
khancement-sector-in-share-khan
➢ https://simconblog.wordpress.com/2016/04/21/cement-industry-
analysis/
➢ https://www.ibef.org/industry/insurance-sector-india

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