India is the second-largest cement producer in the world. Three major companies dominate the Indian Cement Industry- Ultra tech Cement, Shree Cement, Ambuja & ACC Cements. These Indian Cement Companies account for 40% of the market capitalisation in the Indian Cement Sector, with significant growth potential.
The video offers a detailed analysis of the Indian Cement Sector. It specifies the performance and the growth potential of the three leading cement companies- Ultra tech Cement, Shree Cement, Ambuja & ACC Cements. These are the largest cement producers indicating major industry headwinds. Ambuja Cement & ACC Cement are clubbed together as they have one common parent company with a suspecting possibility of a merger. The figures specifying the volume and market capitalisation of these cement sector companies are also discussed in the video.
Moreover, the video offers an in-depth valuation of the companies through the figures of Price to Earnings Ratios, Return on Capital Employed, Debt to Equity and Interest Coverage Ratios. As per the thorough ratio analysis, it can be seen that Shree Cement indicates a premium valuation, thus, attracting Foreign Institutional Investors. For an in-depth understanding, you can check the stock-o-meter feature available on our website for various ratios, financials, charts etc., of different companies & industries.
Furthermore, the video also discloses the sales and profit growth in the current year of all three companies. This indicates a slight sluggishness when compared to the base year.
Moreover, the video provides the highs and lows of the Indian Cement Industry. Thus, indicating the cost-saving measures adopted by the Indian Cement Companies, further indicating an end of price wars.
The audience can avail a thorough analysis of the Indian cement industry by studying various ratios, sales and growth figures. The investors will get an idea of the growth aspects of the cement industry. This can be seen through an increase in demand for infrastructure and development through the PM Awas Yojana, which promotes ‘housing for all’. However, the audience will also get insights into the hindrances & challenges of the cement sector. This includes the government intervention on pricing, the pandemic causing a delay in the cement sector recovery, the rising freight cost due to an increase in the diesel prices etc. Thus, the audience is suggested to stick to the big players as they dominate the cement industry.
All in all, this video offers the Indian Cement Sector Analysis, benefitting the investors to make a viable investment decision.
Our website offers other resources for further precise analysis of the Cement Sector, through an e-book which gives Report & Ratings of Ultratech Cement Limited. To provide a deeper understanding, we provide Part 1, Part 2 and Part 3 on Ultratech Cement - Stock Analysis & Rating. It also offers a detailed analysis of other Sectors - FMCG Sector, Auto Sector, IT & Pharma Sector and many more. Check out InvestYadnya for more of such content.