Ultratech Cement Vs Shree Cement – Comparing Fundamentals

With the constant demand for real estate and infrastructure in the country, there is an ongoing need for the supply of Cement. When we talk about the cement industry in India Ultratech and Shree Cement cannot go without mention. Let us examine both the stock from a fundamental point of view. If you are involved in online stock trading below mentioned numbers are easy to obtain for yourself as well. visit here

Sector Analysis

The cement industry is on the path of constant growth, attributed to the growing requirement of better infrastructure coupled with housing Industry demand (with supportive policies of the government of India). Owing to the growth of demand the expected rise in the cement industry is expected to be nearly 600 MT per year, in the next three years. All those investors who are involved in online investing must have come across these shares.

Company Analysis:

Shree Cement

 

Parent Company – Shree Power

Capacity –  44.4 MPTA

Market Cap –  80,681 Crore

Management – Hari Mohan Bangur (MD)

Founded By – P.G Bangure and B.D Bangur

Overseas Operations:  Bahrain, UAE, and Sri Lanka

Ultra Tech Cement

Parent Company – Aditya Birla Group

Capacity – 119.95 MPTA

Market Cap –  1.74 Lakh Crore

Management – K.C. Jawahar (MD)

Founded By – Kumar Managalam Birla

Overseas Operations: UAE

Financial Ratios:

 

UltraTech Cement

ROCE – 10.20%

SALES – 51237

EPS – 225.51

RETURN ON EQUITY – 14.1

NET PROFIT MARGIN – 12.7

CASH FLOW FROM OPERATIONS – 12503

Ultratech Cement Financial and Industry Scope, make the stock a good long-term investment. Following are the important points for the company:

  • The average Return on Equity over the last three years has climbed to 14.10 percent.
  • In the last three years, sales have increased at a solid rate of 13.04 percent.
  • In the last three years, net profit has increased at a robust rate of 29.47 percent.
  • The debt-to-equity ratio has dropped to 0.46, which is lower than the three-year average.
  • Sales have increased by 27.13 percent in the last four quarters.

Even though there is a fall in the stock price, it is expected to rise, the company is at par with the industry average financial ratio. Backed by the Aditya Birla group, the company has expert management and the ability to exploit the opportunities, It seems to be a good investment for 5-10year’s investment horizons. If you are into online investing add this stock to the market watch list.

Shree Cement

ROCE – 14%

SALES – 14138

EPS – 692.6

RETURN ON EQUITY – 15.6

NET PROFIT MARGIN – 17.7

CASH FLOW FROM OPERATIONS – 4094

 

Owing to industry scope and solid financial Shree Cement is a long-term stock, with the expected rise in the Industry the stock seems an Interesting Investment option.

 

  • The average Return on Equity over the last three years has climbed to 15.60 percent.
  • In the last three years, net profit has increased at a solid pace of 15.35 percent.
  • Sales have increased by 20.47 percent in the last four quarters.

 

Having good Financials makes this stock a solid long-term investment candidate, but the deteriorating sales number (fall of 8.58% in last three years), makes it a one to watch, If dales deteriorate any further, the stock’s financial picture will also reflect the same.

Looking at both the qualitative and quantitative factors, both the stocks seem to be a good long-term investment, but a slight edge is towards Ultratech Cement owing to its Management and Shree Cements’ deteriorating sales figure. Open your DEMAT today to utilize these opportunities.

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