A study on Equity Analysis of 8

selected cement sector stocks at

India Infoline,
chittoor
 Project Analysis

INDUSTRY PROFILE COMPANY PROFILE

REVIEW OF LITERATURE PROJECT RESEARCH METHODOLOGY

FINDINGS
DATA ANALYSIS AND
AND
INTERPRETATION
SUGGESTION
 INDUSTRY PROFILE
• Financial market
A financial market is a market in which people trade
financial securities and derivatives at low transaction costs.
• Stock Market
It is a place where shares of pubic listed companies are
traded. The primary market is where companies float shares to
the general public in an initial public offering (IPO) to raise
capital.
• HISTORY OF STOCK MARKET
• MAJOR PARTICIPANTS IN INDIAN STOCK EXCHANGE
 NSE PROFILE
TYPE Stock Exchange

LOCATION Mumbai, Maharashtra, India

FOUNDED 1992
OWNER National Stock Exchange Of India Limited
KEY PEOPLE Vikram Limaye (MD & CEO)
CURRENCY Indian Rupee
NO. OF LISTINGS 1,952
MARKET CAPITALIZATION Us$2.27 Trillion ( April 2018)
VOLUME 28.692 Billion
INDICES Nifty 50, Nifty Next 50, Nifty 500
WEBSITE WWW.nseindia.com
 COMPANY PROFILE
COMPANY NAME INDIA INFOLINE
INDUSTRY FINANCIAL SERVICES
FOUNDED IN 1995
KEY PEOPLE NIRMAL JAIN ( CHAIRMAN )
R. VENKATARAMAN (MD)
HEAD QUARTERS MUMBAI
NETWORTH RS. 5953 CRORES
CUSTOMERS 40 LAKH +
EMPLOYEES 20000+
TRADED AS NSE : IIFL
BSE : 532636
REVIEW OF LITERATURE
Under the present study the reviews of following authors were
considered:
• Dr. P Vikkeraman and P Varadharajan (2009)
• MuthuGopalakrishnan and Akarsh (2010)
• PremaChandran (2010):
• S.Nagarajan and K.Prabhakaran (2013)
• Dr. M. Muthu Gopalakrisnan and Dr. K. V. Ramanathan (2013)
• Narayanasamy and Thirugnanasoundari (2016)
• Suresh and Harshitha (2017
RESEARCH METHODOLOGY:

•Need for the study

•Objectives of the study
•Scope of the study
•Limitations of the study
 RESEARCH DESIGN
• Sample size : 8 leading cement companies in INDIA
• Statistical tools : Average Returns, Standard
Deviation, Variance, Coefficient of
Variation, Correlation Coefficient, Beta
and Alpha.
• Sources of data : secondary sources
Websites, Text Books and Published
Articles
 DATA ANALYSIS AND INTERPRETATION
Average returns of the selected cement company stocks
during 2014-19
AVERAGE RETURNS
35.00

COMPANY AVERAGE RETURNS 30.25

30.00 28.07
Ultratech cements 13.66
25.00 23.61
Shree cements 30.25
19.42
20.00
ACC cements 2.69
14.70
15.00 13.66
India cements 14.70 AVERAGE RETURNS
10.00
Birla Corp cements 19.42
5.00
2.69
Ambuja cements 2.32 2.32

0.00
Ramco cements 28.07

KCP cements 23.61

 COMPARISION OF THE ANNUAL RETURNS OF 8 COMPANIES WITH NIFTY
FOR THE PERIOD OF 2014-19

35.00
COMPANIES AVERAGE RETURNS
30.25
Ultratech cements 13.66 30.00
28.07

Shree cements 30.25 25.00 23.61

ACC cements 2.69 20.00

19.42

India cements 14.70 14.70 Average Returns

15.00 13.66
nifty 50 returns
Birla Corp cements 19.42
10.00
Ambuja cements 2.32
5.00
Ramco cements 28.07 2.69 2.32

KCP cements 23.61 0.00

Ultratech Shree ACC India Birla Ambuja Ramco KCP
cements cements cements cements Corp cements cements cements
Nifty 11.64 cements
 STANDARD DEVIATION OF THE SELECTED
STOCK DURING 2014-19
STANDARD DEVIATION
STANDARD
COMPANY 50
46.48
DEVIATION 45
40.57

Ultratech 40

13.57 35 32.93
34.98

cements 30

Shree cements 32.93 25

24.34

ACC cements 8.62 20

STANDARD DEVIATION
15 13.57
12.28
India cements 40.57 10 8.62

Birla Corp 5

46.48 0
cements
Ambuja cements 12.28
Ramco cements 24.34
KCP cements 34.98
VARIANCE OF THE SELECTED STOCK
DURING 2014-19
COMPANY VARIANCE
Ultratech cements 184.295
Shree cements 1084.235
ACC cements 74.2449
India cements 1646.361
Birla Corp cements 2160.394
Ambuja cements 150.6948
Ramco cements 592.7161
KCP cements 1223.521
CO-EFFICIENT OF VARIATION FOR THE
SELECTED STOCKS DURING 2014-19
COMPANY COEFFICIENT OF VARIATION
Ultratech cements 0.99
Shree cements 1.09
ACC cements 3.20
India cements 2.76
Birla Corp cements 2.39
Ambuja cements 5.29
Ramco cements 0.87
KCP cements 1.48
CORRELATION COEFFICIENT OF SELECTED
STOCKS DURING 2014-19
COMPANY CORRELATION COEFFICIENT
Ultratech cements 0.50
Shree cements 0.67
ACC cements 0.93
India cements 0.47
Birla Corp cements 0.55
Ambuja cements 0.82
Ramco cements 0.27
KCP cements 0.21
BETA AND ALPHA VALUES OF SELECTED
CEMENT STOCKS DURING 2014-19
COMPANY BETA ALPHA
Ultratech cements 0.56 4.1496

Shree cements 1.80 14.74

ACC cements 0.65 -7.26

India cements 1.58 0.25

Birla Corp cements 2.08 2.55

Ambuja cements 0.82 -8.45

Ramco cements 0.53 18.7048

KCP cements 0.60 13.906

 FINDINGS
• During the period of study, among all the selected companies, The Average Returns of Shree Cements is high
i.e. 30.25% whereas, it is low for Ambuja Cements i.e., 2.32%.

• The Standard Deviation is high for Birla Corp i.e., 46.48% and low for ACC Cements i.e., 8.62%.

• The Variance of Birla Corp is high i.e., 2160.394 and it is low for ACC Cements i.e., 74.2449.

• The Coefficient of Variation is high for ambuja i.e., 5.29 and low for Ramco i.e., 0.87.

• The Correlation Coefficient between the yearly returns of selected cement companies with the return of
NIFTY50 index is highest for ACC Cements i.e., 0.93 whereas, it is low for KCP cements i.e., 0.21.

• Birla Corp has a beta value of more than 1 i.e., 2.08. It shows that the market risk of Birla Corp is very high
and Ramco Cements is having a lower beta value i.e., low risk (0.53) when compared to remaining
companies.

• The Alpha Value Is High for Ramco cements(18.70). Therefore, it has a potential of gaining a high return.
 SUGGESTIONS
• Risk takers can choose BIRLA CORP for investing, as it has high returns (19.42)
and high risk (46.48) when compared to other selected companies.

• Risk averters can go with the option of investing in Ramco And Ultratech.

• Shree Cements is holding a high risk (32.93) and minimum returns (30.25). It
shows that it is one of the best options for the risk takers.

• India Cements is providing minimum returns(14.70) and maximum risk (40.57)

• Through the calculation of alpha, the Ambuja (-8.45) and ACC cements (-7.26)
are the least performing stock in making better returns.
CONCLUSION
Thank You