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Submitted by:

Preeti Behera (ABM12020)


Section-G
Individual Report Analysis of Ambuja Cements Limited:
Ambuja Cements Limited, formerly known as Gujarat Ambuja Cement
Limited, is a major cement producing company in India. It is Indias 3rd
largest cement producer and the largest Exporter of cement for the nation.
Risk profile:
We took the data for one year from March 2015 to March 2016 to calculate
the Beta of the company. The rating is AAA. The value of the company
versus the Sensex stock market has been analyzed. The debt equity ratio for
Ambuja Cements currently is Zero. The following values have been
calculated using excel.
Regression Beta is 0.936772
Beta unlevered is 0.936772 since the debt equity ratio is zero.
Capital Structure:
The current capital structure i.e. Debt to Equity ratio is zero.
According to our analysis, the preferred debt equity ratio is 1:1 i.e. 50%
debt and 50% equity.
Cost of Equity = 15.93%
Cost of Debt = 15.90%
Leverage:
The current capital structure is zero. The most profitable capital structure
according to our analysis is 1:1. Hence the company is underleveraged and
it should be leveraged to 1:1.