Sectoral Analysis of Indian Industry: PG Program in Finance

PG PROGRAM IN FINANCE
SECTORAL ANALYSIS OF
INDIAN INDUSTRY
Submitted By:-
Vipul Raval
Roll No.43
1. Automobile industry- in INDIA
“In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian
automobile industry will achieve mass motorization status & could be among the top five vehicle producers by
2014.”
 The automobile industry in India happens to be the 9th largest in the world.
 India is being recognized as potential emerging auto market.
 Foreign players are adding to their investments in Indian auto industry.
 Within two-wheelers, motorcycles contribute 80% of the segment size.
 Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
 Tata Motors dominates over 60% of the Indian commercial vehicle market.
 2/3rd of auto component production is consumed directly by OEMs.
 India is the largest three-wheeler market in the world.
 India is the largest two-wheeler manufacturer in the world.
 India is the second largest tractor manufacturer in the world.
 India is the fifth largest commercial vehicle manufacturer in the world.
 The number one global motorcycle manufacturer is in India.
 India is the fourth largest car market in Asia - recently crossed the 1 million mark.
India is fast getting to the center of the automotive canvas, and is becoming a manufacturing hub for small cars. In
2009, it surpassed China in exports of commercial and passenger vehicles. There has been a marked improvement in
quality standards by the component suppliers over the years and now they need to focus on building R&D capability
as the industry scales at 10%-15% CAGR.
Sales momentum in India which picked up towards the middle of 2009 is expected to continue in the next three to four
years. This growth, however, is not without challenges– commodity price increase, emission norm change, regulatory
reforms, research & capability building – are some of the impediments to growth.
2|Page
Porter’s 5 forces analysis:
3|Page
Intense due to
the entry of Barriers
to Entry High for a
foreign new
companies in company
the market. because of
Rivalry Bargaini
Bargaini high capital
among ng
ng costs,
Existing power of
power of technology,
Competi Supplier
Buyers distribution
tors s and
network,
Very availability
Low. of
high, Threat auto
The
due to of components.
automo
availa Substitut However,
bile a
bility es domestic
supply
of company,
busines
Fairly mild.
option with
s islocal
Numerous other
s. This knowledge
quite
forms of
is due and
fragme
transportation are
to the expertise,
nted
available, but
fairly has the
(there
none offer the
standa potential
are to
utility,
rdized compete
many its
convenience,
nature home market
firms).
independence
and against
Many the
and value offered
the global firms
supplier
by automobiles.
low who are not
s rely
The higher the
switchi well
on one
cost of operating
ng established
or two
a vehicle, the
costs there.
automa
more likely people
associ will seek kers to
ated alternative buy a
with transportation majority
4|Page
selecti options. The of their
ng switching cost
from associated with s. If an
among using a different automa
compe mode of ker
ting transportation, decided
brands may be high in to
. terms of personal switch
time, convenience supplier
and utility. s, it
could
Peer Group comparison:
be
devasta
Industry : Automobiles
ting to
Tata Motors Ashok Maruti Suzuki Eicher Motors

Ltd.
M & M Ltd.
Leyland Ltd. the
India Ltd. Ltd.
Market Cap (Rs Mn) 514483.46 363082.9 99110.2 previou34228.31

368663.68
Book Value (Rs.)
P/E
301.6
24.24
144.96
16.14
18.44
18.4
s425.75
15.49
161.84
60.51
EPS (Rs.) 41.91 38.86 4.05 supplier
82.36 21.1
Face Value (Rs.) 10 5 1 5 10
Ratan N Tata
Keshub
S Sandilya
's
R C Bhargava R J Shahaney
Chairman Mahindra
busines
Particulars Mar 2010 Mar 2010 Mar 2010 s.
Mar 2010 Dec 2009
Operational &
Financial Ratios
Earnings Per Share
(Rs) 39.26 36.89 3.18 86.42 29.64
CEPS(Rs) 57.38 43.44 4.72 114.97 37.62
DPS(Rs) 15.00 9.50 1.50 6.00 7.00
Book NAV/Share(Rs) 261.87 137.89 17.52 409.52 306.85
Tax Rate(%) 20.83 26.66 22.23 30.48 19.52
Margin Ratios
Core EBITDA
Margin(%) 8.12 14.49 8.98 10.71 5.86
EBIT Margin(%) 10.62 14.73 8.05 11.35 11.53
Pre Tax Margin(%) 7.38 13.96 6.78 11.24 11.43
PAT Margin (%) 5.84 10.24 5.27 7.82 9.20
Cash Profit Margin (%) 8.53 12.05 7.81 10.40 11.67

Performance Ratios
ROA(%) 7.84 20.85 7.45 22.00 8.30
ROE(%) 16.51 32.08 19.13 23.58 8.63
ROCE(%) 14.28 30.09 14.93 31.95 10.41
Asset Turnover(x) 1.34 2.04 1.41 2.81 0.90
Sales/Fixed Asset(x) 2.37 4.01 1.46 3.34 2.90
Working
Capital/Sales(x) -6.76 24.11 6.82 156.15 7.93
Efficiency Ratios
Fixed Capital/Sales(x) 0.42 0.25 0.68 0.30 34.52
5|Page
Receivable days 18.78 20.60 44.97 9.88 4.59
Inventory Days 24.57 20.13 67.42 12.06 18.52
Payable days 59.02 76.27 75.62 33.98 67.59
Valuation Parameters
PER(x) 19.25 14.78 17.54 16.39 22.10
PCE(x) 13.17 12.55 11.84 12.32 17.42
Price/Book(x) 2.89 3.95 3.19 3.46 2.14
Yield(%) 1.98 1.74 2.69 0.42 1.07
EV/Net Sales(x) 1.63 1.72 1.24 1.43 1.94
EV/Core EBITDA(x) 11.35 9.74 10.75 9.36 12.74
EV/EBIT(x) 14.23 10.65 14.20 11.49 15.47
EV/CE(x) 1.84 2.99 1.55 3.29 1.75
M Cap / Sales 1.21 1.66 1.00 1.41 2.21
Growth Ratio
Net Sales Growth(%) 37.99 42.07 21.46 42.26 -45.44
Core EBITDA
Growth(%) 89.30 126.17 52.32 82.92 71.47
EBIT Growth(%) 123.37 156.59 75.35 109.98 22.05
PAT Growth(%) 123.73 149.50 122.99 104.94 -3.77
EPS Growth(%) 101.55 20.19 122.71 104.94 113.58
Financial Stability
Ratios
Total Debt/Equity(x) 1.10 0.53 0.95 0.07 0.02
Current Ratio(x) 0.80 1.78 1.60 3.03 1.79
Quick Ratio(x) 0.60 1.43 0.97 2.68 1.58
Interest Cover(x) 3.27 19.15 6.35 108.24 112.02
Total Debt/Mcap(x) 0.39 0.09 0.31 0.02 0.01
Valuation Ratios
Liquidity ratios
Total Debt/Equity(%) 1.10 0.53 0.95 0.07 0.02
Current Ratio(x) 0.80 1.78 1.60 3.03 1.79
Quick Ratio(x) 0.60 1.43 0.97 2.68 1.58
Interest Cover(x) 3.27 19.15 6.35 108.24 112.02
Total Debt/Mcap(%) 0.39 0.09 0.31 0.02 0.01
Profitability Ratios
GPM(%) 10.07 15.33 9.36 13.83 13.90
NPM(%) 5.84 10.24 5.27 7.82 9.20
Turn Over Ratios
Sales/Current Assets 3.28 3.38 1.94 3.58 2.19

Sales/Total Assets 1.21 1.9 1.35 2.52 0.98
GROWTH TRENDS
At present the industry is enjoying a growth rate of 14-17% per annum, with domestic sales growth at
12.8%. The growth rate is predicted to double by 2015. As it is seen, the total sales of passenger vehicles -
6|Page
cars, utility vehicles and multi-utility vehicles - in the year 2005 reached the mark of 1.06 million. The
current growth rate indicates that by 2012 India will overtake Germany and Japan in sales volumes.
2. POWER SECTOR
Overview:
With the coming of Electricity Act 2003, the power sector, which was highly regulated with lot of licensing
requirements, is in the throes of a long awaited change. The licensing requirements have been reduced, as the
generation company will be free to enter distribution business and vice-a-versa.
The generating capacity in India stood at 143,061 MW (1,253 bn units). Out of this, the total generation was
only about 704 bn units, due to lack of fuel sufficiency. As a result, it has become necessary to resort to power
cuts and other regulatory measures to ration power supply.
Currently central institutions like National Thermal Power Corporation (NTPC) and the State Electricity
Boards (SEBs) dominate the power scene in India. India has adopted a blend of thermal, hydel and nuclear
sources with a view to increasing the availability of electricity. Thermal plants at present account for 64%
(91,907 MW) of the total power generation, hydro-electricity plants contribute 25% (35,909 MW) and the rest
comes from nuclear and wind.
Average transmission and distribution losses (T&D) exceed 25% of total power generation compared to less
than 15% for developing economies. The T&D losses are due to a variety of reasons, viz., substantial energy
sold at low voltage, sparsely distributed loads over large rural areas, inadequate investment in distribution
system, improper billing, and high pilferage.
Major Players:
*G-Generation, T-Transmission, D-Distribution

7|Page
Tata Reliance
NTPC CESC NHPC
Power Energy
Rama
Arup Roy Ratan Anil D
Chairman Prasad S K Garg
Choudhury Tata Ambani
Goenka
377017.7
Market Cap (Rs Mn)
1612812.84 298698.62 48350.2 7 374979.36
Book Value (Rs.)
77.49 459.01 314.18 19.36 59.31
Annual Sales 463777 70982.7 32928.4 27378.3 0
PAT 87282 9387.6 4333 10965.3 2489.04
P/E 19.25 35.96 As renewable power generati
11.03 17.74 118.61
Face Value (Rs.) 10 10 10 10 10
substitute product is low. Wi
Particulars Mar 2010 Mar 2010 Mar 2010most preferred
Mar 2009 Mar 2009bearing in min
Operational & Financial Ratios posses.

Earnings Per
Share(Rs) 10.59 39.57 34.68 0.98 1.04
CEPS(Rs) 13.8 59.71 51.14 1.44 1.04
DPS(Rs) 3.8 12 4 0.29 0
Book
NAV/Share(Rs) 75.26 447.75 305.37 15.98 57.55
Tax Rate(%) 19.82 25.45 17 9.55 2.95
Margin Ratios
Core EBITDA
0
Margin(%) 26.43 26.46 23.61 63.25
EBIT Margin(%) 27.23 23.69 23.01 62.73 0
Pre Tax Margin(%) 23.35 17.74 15.85 44.28 0
PAT Margin (%) 18.72 13.22 13.16 40.05 0
Cash Profit Margin
0
(%) 24.4 19.95 19.4 58.95
Performance Ratios
ROA(%) 8.89 6.18 4.87 3.82 1.82
8|Page
ROE(%) 14.74 9.72 12.04 6.24 1.82
ROCE(%) 13.01 11.07 10.16 5.99 1.89
Asset Turnover(x) 0.47 0.47 0.37 0.1 0
Sales/Fixed
0
Asset(x) 0.72 0.75 0.32 0.13
Working
0
Capital/Sales(x) 2.32 1.88 2.85 -3.78
Efficiency Ratios
Fixed
0
Capital/Sales(x) 1.39 1.34 3.16 7.68
Receivable days 40.07 91.62 49.26 42.84 0
Inventory Days 25.8 31.71 24.95 53.08 0
Payable days 55.05 53.37 34.1 107.52 738.3
PER(x) 19.56 34.69 11.03 0 98.7
PCE(x) 15 22.99 7.48 0 98.62
Price/Book(x) 2.75 3.07 1.25 0 1.78
Yield(%) 1.84 0.87 1.05 0 0
EV/Net Sales(x) 4.22 5.24 2.37 3.77 0
EV/EBIT(x) 15.42 22.09 10.31 6.02 95.08
EV/CE(x) 1.92 2.25 0.84 0.34 1.78
M Cap / Sales 3.68 4.59 1.45 0 0
Growth Ratio
Net Sales
Growth(%) 10.49 -1.89 8.63 6.52 0
Core EBITDA
Growth(%) 11.61 21.82 15.72 1.47 141.17
EBIT Growth(%) 11.51 16.46 15.22 -2.35 140.98
PAT Growth(%) 6.42 1.8 5.76 9.21 162.92
EPS Growth(%) 6.42 -4.94 5.76 8.95 147.91
Financial Stability Ratios
Total
Debt/Equity(x) 0.65 0.57 1.07 0.63 0
Current Ratio(x) 4.92 4.06 1.8 0.95 172.77
Quick Ratio(x) 4.5 3.66 1.65 0.94 172.77
Interest Cover(x) 7.02 3.98 3.22 3.4 146.2
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.65 0.57 1.07 0.63 0
Current Ratio(x) 4.92 4.06 1.8 0.95 172.77
Quick Ratio(x) 4.5 3.66 1.65 0.94 172.77
Interest Cover(x) 7.02 3.98 3.22 3.4 146.2
GPM(%) 29.03 24.47 22.1 63.18 0
NPM(%) 18.72 13.22 13.16 40.05 0
Turn Over Ratios
Sales/Current 1.23 1.19 1.14 0.61 0
9|Page
Assets
Sales/Total Assets 0.46 0.43 0.35 0.09 0
3. Pharmaceutical Sector
The Indian Pharmaceutical industry is highly fragmented with about 24,000 players (around 330 in the
organised sector). The top ten companies make up for more than a third of the market. The revenues generated by the
industry are approximately US$ 7.6 bn and have grown at an average rate of 10% over last five years. The Indian
pharma industry accounts for about 1% of the world's pharma industry in value terms and 8% in volume terms. In the
recent past, Indian companies have targeted international markets and have extended their presence there. While some
companies are exporting bulk drugs, others have moved up the value chain and are exporting formulations and generic
products. India also offers excellent exports opportunities for clinical trials, R&D, custom synthesis and technical
services like Bioinformatics.
The drug price control order (DPCO) continues to be a menace for the industry. There are three tiers of
regulations – on bulk drugs, on formulations and on overall profitability. This has made the profitability of the sector
susceptible to the whims and fancies of the pricing authority. The new Pharmaceutical Policy 2006, which proposes to
bring 354 essential drugs under price control has not been officially passed as yet and has been stiffly opposed by the
pharmaceutical industry. The R&D spend of the top five companies is about 5% to 10% of revenues. Despite growing at
a CAGR of over 50% over the last four years, the ratio is still way below the global average of 15% to 20% of sales.
However, despite the relatively low R&D spending, Indian companies are stepping up their research activities to make
themselves more self sufficient in terms of product development, now that the product patent regime has come into
force.
10 | P a g e
(Amt in RS
Industry : Pharma
Mn)
Dr Reddys Glenmark Ranbaxy
Cipla Ltd. Lupin
Lab Pharma Lab
K.Anji YK Gracias Desh B. Tsutomu
Chairman
Reddy Hamied Saldanha Gupta Une
Mar 2010 Mar 2010 Mar 2010 Mar 2010 Dec 2009
Market Cap 233210.53 245091.74 78,182.68 1,60,651.21 2,11,996.98
362.0 76.7 67.9 60.3 114.6
Book Value (Rs.)
2 5 3 2 7
Annual Sales 45,532.00 56,300.10 10,227.80 37,085.10 47,827.60
PAT 8,460.80 10,820.10 1,284.60 6,489.30 5,719.80
Equity 844.2 1,605.80 269.8 889.4 2,102.10
27.0 22.3 42.4 25.6 13.7
P/E
2 4 8 3 1
5.0 2.0 1.0 2.0 5.0
Face Value (Rs.)
0 0 0 0 0
Particulars Mar 2010 Mar 2010 Mar 2009 Mar 2010 Mar 2010

Operational & Financial Ratios
Earnings Per Share
(Rs) 50.12 13.47 8.72 72.96 13.61
CEPS(Rs) 63.30 15.53 9.46 82.13 17.13
11 | P a g e
DPS(Rs) 11.25 2.00 0.40 13.50 0.00
Book NAV/Share(Rs) 348.38 73.55 49.10 284.46 94.03
Tax Rate(%) 22.00 18.38 11.44 8.43 46.14
Margin Ratios
Core EBITDA
Margin(%) 24.27 19.77 25.53 20.35 10.47
EBIT Margin(%) 24.23 25.01 39.36 20.10 22.96
Pre Tax Margin(%) 23.87 24.48 28.41 19.33 22.13
PAT Margin (%) 18.62 19.98 25.16 17.70 11.92
Performance Ratios
ROA(%) 13.67 19.29 11.32 22.54 7.68
ROE(%) 15.24 21.11 19.30 33.23 15.28
ROCE(%) 17.79 24.18 17.70 25.60 14.79
Asset Turnover(x) 0.73 0.97 0.45 1.27 0.64
Working
2.35
Capital/Sales(x) 1.72 0.46 2.38 3.93
Efficiency Ratios
Receivable days 99.62 114.32 211.75 80.93 97.35
Inventory Days 65.57 98.17 85.11 71.17 92.40
Payable days 107.12 67.15 92.40 51.12 72.88
PER(x) 25.47 25.03 18.10 4.45 38.03
PCE(x) 20.17 21.71 16.68 3.96 30.21
Price/Book(x) 3.66 4.58 3.21 1.14 5.50
Yield(%) 0.88 0.59 0.25 0.83 0.00
EV/Net Sales(x) 4.87 5.04 5.86 4.21 5.09
EV/Core EBITDA(x) 16.44 18.97 13.90 18.71 19.49
EV/EBIT(x) 19.76 19.96 14.69 20.78 22.11
EV/CE(x) 3.36 4.56 2.18 4.46 3.25
M Cap / Sales 4.82 5.05 4.63 3.97 4.55
Growth Ratio
Net Sales Growth(%) 7.48 8.04 -37.68 25.58 6.93
Core EBITDA
39.21
Growth(%) 28.79 -28.55 41.32 -194.75
EBIT Growth(%) 45.44 41.92 -28.21 43.70 -174.76
PAT Growth(%) 50.85 39.22 -43.98 55.63 -154.75
EPS Growth(%) 50.43 34.78 -45.16 44.92 -149.85
Current Ratio(x) 3.02 5.49 10.10 3.81 1.85
Quick Ratio(x) 2.40 3.98 9.52 2.63 1.39
Interest Cover(x) 68.80 47.82 3.60 25.97 27.91
Total Debt/Mcap(x) 0.03 0.00 0.27 0.31 0.15
Valuation Ratios
Liquidity ratios
12 | P a g e
Current Ratio(x) 3.02 5.49 10.10 3.81 1.85
Quick Ratio(x) 2.40 3.98 9.52 2.63 1.39
Interest Cover(x) 68.80 47.82 3.60 25.97 27.91
Total Debt/Mcap(%) 0.03 0.00 0.27 0.31 0.15
GPM(%) 28.77 25.78 30.65 21.56 25.22
NPM(%) 18.62 19.98 25.16 17.70 11.92
Turn Over Ratios

4. Telecom Sector
Indian Telecom sector, like any other industrial sector in the country, has gone through many phases
of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century, the field
of telephonic communication has now expanded to make use of advanced technologies like GSM, CDMA,
and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private
Players are putting in their resources and efforts to improve the telecommunication technology so as to give
the maximum to their customers.
The Indian telecom sector can be broadly classified into Fixed Line Telephony and mobile
telephony. The major players of the telecom sector are experiencing a fierce competition in both the
segments. The major players like BSNL, MTNL, VSNL in the fixed line and Airtel, Hutch, Idea, Tata,
Reliance in the mobile segment are coming up with new tariffs and discount schemes to gain the competitive
advantage. The Public Players and the Private Players share the fixed line and the mobile segments. Currently
the Public Players have more than 60% of the market share.
13 | P a g e
ailable to customers both in fixed as
Peer Group Comaprison
s resulted in increased bargaining
Reliance Tata
Bharti Idea
Communic Communic
Airtel Cellular MTNL
a- ations Ltd
Ltd Ltd.
tions Ltd
Sunil Kumar
Anil D Subodh
Chairman Bharti Mangalam -
Ambani Bhargava
Mittal Birla
1268564.
Market Cap (Rs Mn)
93 337261.99 235003.17 39910.5 99051.75
Book Value (Rs.) 101.33 250.38 35.19 144.95 256.86
356095.4
Annual Sales
1 150866.6 118502.43 44559.99 32180.4
PAT
Equity 1,898.77 1,032.01 3,299.84 1,897.20 630
P/E 14.63 0 25.16 0 20.18
Face Value (Rs.) 5 5 10 10 10
Mar 201
Particulars
0 Mar 2009 Mar 2010 Mar 2009 Mar 2010
Earnings Per Share (Rs) 24.82 23.27 3.19 3.36 16.95
CEPS(Rs) 35.61 32.64 7.89 13.76 37.12
DPS(Rs) 1.00 0.80 0.00 1.00 0.00
Book NAV/Share(Rs) 96.24 250.44 34.59 189.88 255.47
Tax Rate(%) 11.90 0.26 9.85 36.19 -56.20
Margin Ratios
Core EBITDA
38.87 22.92 22.75 3.68 19.93
Margin(%)
EBIT Margin(%) 30.82 38.30 14.62 5.95 17.26
Pre Tax Margin(%) 30.05 31.92 9.86 5.92 9.61
PAT Margin (%) 26.47 31.83 8.89 3.78 15.01
Performance Ratios
ROA(%) 24.44 7.52 5.72 1.40 5.07
ROE(%) 29.42 12.55 9.29 1.42 6.86
ROCE(%) 28.46 9.05 9.40 2.23 5.83
Asset Turnover(x) 0.92 0.24 0.64 0.37 0.34
Working
-9.85 0.93 183.67 0.96 1.19
Capital/Sales(x)
Efficiency Ratios
Receivable days 23.86 31.15 11.70 70.62 112.03
Inventory Days 0.46 5.50 1.38 14.42 0.16
Payable days 184.73 102.51 91.03 129.83 202.57
PER(x) 12.57 7.50 20.50 20.57 16.54
PCE(x) 8.76 5.35 8.29 5.02 7.55
14 | P a g e
Price/Book(x) 3.24 0.70 1.89 0.36 1.10
Yield(%) 0.32 0.46 0.00 1.45 0.00
EV/Net Sales(x) 3.44 4.40 2.35 -0.10 3.27
EV/Core EBITDA(x) 8.14 15.62 8.48 -0.47 11.54
EV/EBIT(x) 11.18 11.49 16.07 -1.70 18.94
EV/CE(x) 2.94 0.80 1.55 -0.04 1.06
M Cap / Sales 3.33 2.39 1.82 0.98 2.48
Growth Ratio
Net Sales Growth(%) 4.69 1.99 20.22 -5.64 -14.17
Core EBITDA
26.55 -20.04 1.10 -27.99 -15.44
Growth(%)
EBIT Growth(%) 27.76 66.33 -13.60 -58.24 -38.57
PAT Growth(%) 21.72 85.69 5.24 -58.62 -6.35
EPS Growth(%) -39.15 84.68 -1.13 -47.99 -6.33

Current Ratio(x) 1.14 4.42 1.10 3.24 2.59
Quick Ratio(x) 1.14 4.38 1.11 3.20 2.59
Interest Cover(x) 39.98 6.00 3.07 229.78 2.26
Total Debt/Mcap(x) 0.04 0.86 0.30 0.00 0.33
Valuation Ratios
Liquidity ratios

Current Ratio(x) 1.14 4.42 1.10 3.24 2.59
Quick Ratio(x) 1.14 4.38 1.11 3.20 2.59
Interest Cover(x) 39.98 6.00 3.07 229.78 2.26
Total Debt/Mcap(%) 0.04 0.86 0.30 0.00 0.33
GPM(%) 41.55 21.8 22.95 21.60 20.69
NPM(%) 26.47 31.83 8.89 3.78 15.01
Turn Over Ratios
15 | P a g e
5. Hotel Industry
The Hotel Industry comprises a major part of the Tourism industry. Historically viewed as an industry providing a
luxury service valuable to the economy only as a foreign exchange earner, the industry today contributes directly to
employment (directly employing around 0.15 million people), and indirectly facilitates tourism and commerce.
Hotels in India are broadly classified into 2 categories by the Ministry of Tourism, Government of India, based on the
general features and facilities offered.
I. Star Category Hotels: - 5 Star Deluxe, 5 Star, 4 Star, 3 Star, 2 Star & 1 Star
II. Heritage Category Hotels: - Heritage Grand, Heritage Classic & Heritage Basic
Hotels in India have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last
year and at current trend, demand will soar to 10 million in 2010 - to accommodate 350 million domestic travelers.
Hotels in India have a shortage of 150,000 rooms fueling hotel room rates across India. With tremendous pull of
opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India,
data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is
going to exceed supply by at least 100% over the next 2 years.
Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour
rates from both guests against 6-8 hours usage. With demand-supply disparity, room rates are most likely to rise 25%
annually and occupancy to rise by 80%, over the next two years. 'Hotel Industry in India' is eroding its
competitiveness as a cost effective destination. However, the rating on the 'Indian Hotels' is bullish. Indian Hotel
Industry is adding about 60,000 quality rooms, currently in different stages of planning and development and should
be ready by 2012. MNC Hotel Industry giants are flocking India and forging Joint Ventures to earn their share of pie
in the race. Government has approved 300 hotel projects, nearly half of which are in the luxury range.
16 | P a g e
Peer Group Comparison
Indian Hotels Hotel Leela Country Club Oriental

EIH
Company Ltd Venture Ltd (India) Ltd Hotels Ltd
C P Krishnan R K Krishna
Chairman Ratan N Tata P R S Oberoi Nair Y Rajeev Reddy Kumar
Market Cap (Rs
Mn) 75675.25 58510.85 20071.3 1506.6 6501.9
Book Value (Rs.) 37.21 29.67 22.49 75.5 161.29
Annual Sales 14732.9 7741.31 4301.22 2929.33 1927.75
PAT 1531 572.27 450.12 97.15 231.46
Equity 723.5 785.91 755.65 154.85 178.60
P/E 54.06 263.01 37.22 8.13 26.82
Face Value (Rs.) 1 2 2 2 10
Particulars Mar 2010 Mar 2010 Mar 2010 Mar 2010 Dec 2009
17 | P a g e
Earnings Per Share
(Rs) 2.12 1.46 1.19 1.25 12.96
CEPS(Rs) 3.56 3.19 3.00 2.73 20.64
DPS(Rs) 1.00 1.20 0.20 0.40 7.50
Book
NAV/Share(Rs) 37.16 30.08 21.91 76.08 160.34
Tax Rate(%) 29.85 35.69 30.37 42.18 34.56
Margin Ratios
Core EBITDA
Margin(%) 25.81 16.12 28.95 14.25 26.32
EBIT Margin(%) 26.72 24.53 20.72 10.35 24.08
Pre Tax Margin(%) 14.81 11.50 15.03 5.74 18.34
PAT Margin (%) 10.39 7.39 10.47 3.32 12.00
Cash Profit Margin
(%) 17.46 16.18 26.35 7.22 19.12
Performance ratios
ROA(%) 3.00 2.24 0.97 1.37 5.62
ROE(%) 5.34 4.85 5.88 1.66 8.19
ROCE(%) 7.72 8.18 2.60 4.38 11.28
Asset Turnover(x) 0.29 0.30 0.09 0.41 0.47
Sales/Fixed
Asset(x) 0.62 0.36 0.11 0.93 0.59
Working
Capital/Sales(x) 1.55 2.99 3.32 8.88 2.78
Efficiency Ratios
Fixed
Capital/Sales(x) 1.62 2.79 9.28 107.67 1.69
Receivable days 27.66 45.13 29.45 5.74 20.09
Inventory Days 8.69 14.24 36.23 0.70 10.81
Payable days 89.54 77.17 79.59 85.06 111.07
PER(x) 48.46 83.15 41.17 7.49 22.78
PCE(x) 28.84 37.99 16.35 3.43 14.31
Price/Book(x) 2.76 4.03 2.24 0.12 1.84
Yield(%) 0.98 0.99 0.41 4.27 2.54
EV/Net Sales(x) 6.55 7.76 10.97 0.57 3.68
EV/Core
EBITDA(x) 19.45 23.28 29.97 3.99 11.78
EV/EBIT(x) 24.50 31.62 52.95 5.50 15.26
EV/CE(x) 1.80 2.24 0.96 0.23 1.49
M Cap / Sales 5.04 6.15 4.31 0.25 2.74
Growth Ratio
Net Sales
Growth(%) -9.03 -13.42 -4.89 -6.78 -10.23
Core EBITDA
Growth(%) -15.07 -37.10 -42.87 -65.33 -18.74
18 | P a g e
EBIT Growth(%) -18.53 -46.63 -59.61 -73.38 -23.61
PAT Growth(%) -34.58 -66.42 -69.14 -85.12 -37.99
EPS Growth(%) -34.59 -66.42 -69.14 -97.03 -37.99
Total
Debt/Equity(x) 0.78 0.97 3.48 0.17 0.46
Current Ratio(x) 5.48 2.74 2.79 1.19 7.12
Quick Ratio(x) 5.40 2.58 2.49 1.18 6.98
Interest Cover(x) 2.24 1.88 3.64 2.24 4.20
Total
Debt/Mcap(x) 0.36 0.26 1.55 1.52 0.36
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.78 0.97 3.48 0.17 0.46
Current Ratio(x) 5.48 2.74 2.79 1.19 7.12
Quick Ratio(x) 5.40 2.58 2.49 1.18 6.98
Interest Cover(x) 2.24 1.88 3.64 2.24 4.20
Total
Debt/Mcap(%) 0.36 0.26 1.55 1.52 0.36
Profitability

Ratios
GPM(%) 21.75 20.28 30.91 9.64 25.46
NPM(%) 10.39 7.39 10.47 3.32 12.00
Turn Over Ratios
Sales/Current
Assets 0.68 1.51 1.07 1.25 0.68
Sales/Total
Assets 0.27 0.29 0.09 0.40 0.40
19 | P a g e
6. Textiles Sector
India's overall market share at 5.7% in April 2009 was at an all-time high. US and European markets dominate the
global textile trade, accounting for 64% of clothing and 39% of the textile market. India also has several advantages
over its competitors, not only does it produce the world’s second largest amount of cotton, it also offers low cost
skilled labour and has an abundant availability of raw material. The textile industry can be broadly classified into two
categories, the organized mill sector and the unorganized mill sector.
Aided by lower interest rates, restructuring packages from financial institutions and the recent dismantle of quotas, the
sector is today well poised to capture growth opportunities. In 2005, the sector contributed 20% to industrial
production, 9% to excise collections, 18% of employment in industrial sector, nearly 20% to the country's total export
earnings and 4% to the GDP. The textile sector employs nearly 35 m people and is the second highest employer in the
country.
Competitive rivalry
India's logistic disadvantage due to its geographical location can give it a major thumbs-down in global trade. The
country is distant from major markets as compared to its global competitors like Mexico, Turkey and China, which are
located in relatively close vicinity to major global markets of US, Europe and Japan. As a result, high cost of
shipments and longer lead-time coupled with lack of infrastructure facility may prove to be major hindrances.
The fragmented structure of the industry has also stood in the way of achieving true integration between the various
links in the supply chain. The sector has one of the longest and most complex supply chains in the world, which the
larger players are trying to correct by integrating their operations and improving efficiency levels.
Textiles being a fairly regulated sector till the recent past (quota regime), another indispensable leg of the above
analysis is government regulations. Technology Upgradation Fund Scheme (TUFS) was launched in FY99 for a
period of five years (later extended upto FY07) to promote the upgradation of the textile and jute industry. The
scheme aimed at providing loans to the sector at internationally comparable rates of interest (5% lower than the
domestic interest rates), which enabled the players to upgrade their technology at lower cost of capital. Establishment
of 'Apparel Export Parks' and fiscal incentives in the recent budgets also indicate the government's resolve to aid the
sector's growth and international competitiveness. As one can comprehend from the above analysis, the potential for
the sector's growth are ample, but the trick lies in competing effectively against rivals. Consolidation of the industry
and delivery of better quality at effective rates and minimum lead time would certainly help the players surmount all
competitive pressures.
20 | P a g e
High. Very
fragmented
industry.
Competition
from other
low cost
producing Barrier
nations is s to Superior
likely to Entry Bargai
Bargai
intensify Rivalry technology
ning
ning Skilled
Competitors among
power and
power
like Vietnam, Existing unskilled
Compet of
of
Bangladesh labour
and Indonesia itors
Threat Suppli
Domes Buyers Becaus
of e ers
of
tic Distribution
custom Substit over
network
ers - utes supply
Unorganized Access
in the to
Low
for
retailing, E- global
unorga
retailing, catalogue customers
nised
premiu
sales. Low cost market
m and
producing countries like
brande
like Pakistan and that of
d
Bangladesh (labour denim,
produc
cost 50% cheaper) supplie
t
are also posing a rs have
21 | P a g e
segme
nts. little
exports demand. bargain
Global
Infact, players like ing
custom
Arvind Mills have power.
ers-
already started Howev
High
Industry : Textiles
feeling the pinch as er,
due to
overseas buyers
Bombay Rayon

premiu
Arvind Mills Raymonds Bombay Dyeing Ltd
presen Fashions Ltd
have startedGautam
Sanjay S Lalbhai shifting
Hari
m Nusli N Wadia
ce of
Chairman
Singhania
Janardan Agarwal
Market Cap (Rs Mn) to 'alternative

9,638.67 22084.83 28747.11
product
23141.23
alternat
Book Value (Rs.) 58.23 187.03 175.29 46.55
Annual Sales sources',
23,677.90 thus
13564.45 16147.66
s and
16427.8
ePATlow -488.20 263.65 1759.16 184.2
impacting their brande
cost
Equity
P/E
incremental
15.38 66.75
volume 15.07 308.55
d 10
sourcin
Face Value (Rs.) 10.00 10 10
Particulars off-takes.
Mar 2009 Mar 2010 Mar 2010
players
Mar 2010
gOperational & Financial Ratios
destina
Earnings Per Share (Rs) -2.28 4.39
continu 4.79
17.05
tions
CEPS(Rs) 3.34 22.43
e to
21.8 20.28
DPS(Rs) 0 0 garner
1.5 2.50
Book NAV/Share(Rs) 51.54 191.6 170.63 54.67
Tax Rate(%) -3.96 -31.54 higher 16.99
27.18
Margin Ratios
Core EBITDA

margin
10.83 9.33 24 14.62
Margin(%)
EBIT Margin(%) 9.37 8.67
s.
20.75 13.67
Pre Tax Margin(%) -1.98 1.47 14.96 1.31
PAT Margin (%) 2.06 1.93 10.89 1.09
Cash Profit Margin (%) 3.09 10.1 15.11 4.62
Performance Ratios
ROA(%) -1.48 1.07 4.81 0.91
ROE(%) -.389 2.29 12.72 9.76
ROCE(%) 6.80 4.8 9.16 11.95
Asset Turnover(x) 0.72 0.55 0.44 0.83
Sales/Fixed Asset(x) 0.79 0.8 1.06 1.44
Working
2.38 2.38 1.02 2.21
Capital/Sales(x)
Efficiency Ratios
Fixed Capital/Sales(x) 126.55 125.28 0.94 0.69
Receivable days 47.16 80.55 77.75 112.41

Inventory Days 89.06 83.7 132.31 56.67
22 | P a g e
Payable days 49.10 67.58 34.66 58.20
PER(x) 0 55.78 13.76 115.37
PCE(x) 4.01 10.68 9.92 27.26
Price/Book(x) 0.26 1.25 1.27 10.11
Yield(%) 0 0 0.69 0.45
EV/Net Sales(x) 0.98 1.99 3.02 2.35
EV/Core EBITDA(x) 6.49 11.82 12.09 13.31
EV/EBIT(x) 10.40 22.84 14.55 16.75
EV/CE(x) 0.72 1.11 1.11 1.95
M Cap / Sales 0.12 1.08 1.50 1.29

Growth Ratio
Net Sales Growth(%) 6.07 -3.12 20.29 24.81
Core EBITDA
10.56 98.33 23.65 388.49
Growth(%)
EBIT Growth(%) 26.37 -155.55 19.13 6106.18
PAT Growth(%) -274.98 -109.75 18.47 -109.46
EPS Growth(%) -294.87 -109.75 -26.85 -109.46
Valuation Ratios
Liquidity ratios
Total Debt/Equity(%) 1.53 1.13 1.52 9.23
Current Ratio(x) 3.51 3.06 10.11 3.52

Quick Ratio(x) 2.28 2.17 6.16 3.06
Interest Cover(x) 0.83 1.2 3.58 1.11
Total Debt/Mcap(%) 6.90 0.85 1.02 0.84
GPM(%) 3.65 9.55 19.18 4.84
NPM(%) -2.06 1.93 10.89 1.09
Turn Over Ratios
Sales/Current Assets 1.46 1.47 0.91 1.55
Sales/Total Assets 0.74 0.56 0.37 0.85
23 | P a g e
7. PETROCHEMICAL INDUSTRY
OVERVIEW:
Petrochemicals are chemicals made from petroleum (crude oil) and natural gas. Petroleum and natural gas
are made up of hydrocarbon molecules, which are comprised of one or more carbon atoms, to which
hydrogen atoms are attached. Currently, oil and gas are the main sources of the raw materials because they
are the least expensive, most readily available, and can be processed most easily into the primary
petrochemicals. Only about five percent of the oil and gas consumed each year is needed to make all the
petrochemical products.
Petrochemicals have had a dramatic impact on our food, clothing, shelter and leisure. Some synthetics,
tailored for particular uses, actually perform better than products made by nature because of their unique
properties.
The Indian petrochemical industry is a highly concentrated one and is oligopolistic in nature. Only four
major companies viz. Reliance Industries Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas
Authority of India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate the industry at a
large extent. The recent amalgamation of IPCL with RIL has made the industry more concentrated further,
as they jointly account for over 70% of country's total petrochemical capacity. However, the scene is a bit
different for the downstream petrochemical sector, which is highly fragmented in nature with over 40
companies exist in the market.
The Characteristics of Indian Petrochemical Industry:

Petrochemical Industry in India is a cyclical industry. This industry, not only in India but also across the
world, is dominated by volatile feedstock prices and sulky demand. India has one of the lowest per capita
consumptions of petrochemical products in the world. For example, the per capita consumption of polyester
in India lies at 1.4 kg only comparing to 6.6 kg for China and 3.3 kg for the whole world. Similarly, the per
capita consumption of polymers is 4 kg in India, whereas the per capita consumption is around 20 kg for the
whole world.
The Growth:
The petrochemical industry in India came into existence during 1970s. The 1980s and 1990s saw some rapid
growths for Indian petrochemical industry. The biggest reason for this growth was the high demand for
petrochemicals in India, which grew at an annual rate of 13 to 14% since late 90s. It also called for rapid
expansion of capacity. The BMI forecast of average annual growth in India over 2007-2011 is 14 to 16%.
However, the industry suffered setbacks during 2008 due to surge in the price of crude oil. It will be tough
for Indian petrochemical industry to plug the deficit of 5mn TPA of ethylene and 4mn TPA of polymer by
2012 (according to the predictions of the government).The Present Scenario Presently India has three gas-
24 | P a g e
based and three naphtha-based cracker complexes with a combined annual capacity of 2.9 MMT of ethylene.
Besides this, there are also 4 aromatic complexes with a capacity of 2.9 MMT of Xylenes.The production of
5.06 MMT polymers during FY09 accounted for around 62% of the total production of key petrochemicals.
It also achieved 88.5% capacity utilization. The industry also produced 2.52 MMT of synthetic fibres during
FY09 with a 73% of capacity utilization.
Petrochemical industry is constituted of the following key segments: Polymers, Polyester Intermediates,
Aromatics (Paraxylene), Benzene, Toluene, MX and OX
Top Petrochemical Companies in India:

Though the Indian petrochemical industry is highly dominated by only a few players, however, there are a
number of petrochemical companies in India, doing their share of business. Some of the top companies can
be listed as below:
 Reliance Industries Ltd.

 Haldia Petrochemicals Ltd.
 Indian Oil Corporation
 Gas Authority of India Limited
 National Organic Chemical Industry Ltd.
 Bongaigaon Refinery and Petrochemicals Ltd.
 Manali Petrochemical Limited
 I G Petrochemicals Limited
 The Andhra Petrochemicals Limited
 Tamilnadu Petroproducts Limited
25 | P a g e
products belong to the small-scale
entry barriers. Also, these buyers are
e petrochemical companies for
nological support.
Industry : Petrochemicals
South
Suprem Manali Tamilnadu
DCW Asian
e Petro Petro Petro
Petro
Shashi Chand Ashwin C
Chairman M P Taparia
Jain Muthiah
P K Khaitan Rajeev Ranjan
26 | P a g e
Market Cap (Rs Mn) 6226.72 3324.82 2131.07 3378.18 1889.4
Book Value (Rs.) 24.42 19.22 7.67 19.56 39.73
Annual Sales (in Cr.) 1,612.71 1,027.80 389.49 1,023.30 909.38
PAT (in Cr.) 60.48 67.63 21.06 66.49 10.77
Equity (in Cr.) 96.84 39.23 86.04 233.14 89.97
P/E 10.28 5.5 10.2 5.08 26.61
Face Value (Rs.) 2.00 10.00 10.00

10.00 5.00
Particulars June 2010 Mar 2010 Mar 2010 Mar 2010 Mar 2010

Earnings Per Share
(Rs) 1.96 3.45 1.22 0.67 1.20
CEPS(Rs) 3.85 5.94 1.46 1.71 4.62
DPS(Rs) 1.00 0.36 0.38 0.40 0.50
Book
NAV/Share(Rs) 20.27 18.65 7.41 16.71 39.62
Tax Rate(%) 45.39 28.41 29.80 24.51 19.18
Margin Ratios
Core EBITDA
Margin(%) 4.68 16.40 7.34 3.65 5.80
EBIT Margin(%) 3.76 12.18 7.50 4.12 3.60
Pre Tax Margin(%) 2.33 8.62 7.14 1.80 1.37
PAT Margin (%) 1.27 6.17 5.02 1.36 1.11
Cash Profit Margin
(%) 2.49 10.64 5.98 3.43 4.27
Performance Ratios
ROA(%) 5.77 9.47 16.38 1.93 1.99
ROE(%) 9.96 20.12 17.47 4.07 3.04
ROCE(%) 17.05 18.93 24.51 5.87 6.74
Asset Turnover(x) 4.53 1.53 3.27 1.43 1.80
Working
Capital/Sales(x) 15.78 28.71 10.11 2.40 22.80
Efficiency Ratios
Fixed
Capital/Sales(x) 27.64 0.92 0.60 39.92 1.24
Receivable days 39.48 33.14 26.50 43.63 21.63
Inventory Days 22.78 44.71 27.73 32.56 30.10
Payable days 13.28 32.34 24.85 64.52 50.21
PER(x) 10.13 5.15 7.71 11.28 14.95
PCE(x) 5.15 2.99 6.47 4.46 3.87
Price/Book(x) 0.98 0.95 1.27 0.46 0.45
Yield(%) 5.04 2.03 3.97 5.26 2.79
EV/Net Sales(x) 0.22 0.64 0.40 0.32 0.37
EV/Core
EBITDA(x) 4.06 3.61 4.40 5.02 5.02
EV/EBIT(x) 5.51 4.94 4.97 7.55 9.43
27 | P a g e
EV/CE(x) 0.93 0.96 1.17 0.41 0.59
M Cap / Sales 0.14 0.34 0.42 0.16 0.18
Growth Ratio
Net Sales
Growth(%) -5.83 13.20 10.06 10.61 -3.50
Core EBITDA
Growth(%) 31.91 92.89 81.93 -43.37 9.14
EBIT Growth(%) 20.72 150.29 167.43 -53.86 26.21
PAT Growth(%) -16.19 374.73 199.53 -71.66 64.64
EPS Growth(%) -16.24 374.73 199.53 -71.66 64.64
Current Ratio(x) 1.52 1.22 2.31 3.81 1.31
Quick Ratio(x) 1.07 0.63 1.56 3.36 0.76
Interest Cover(x) 2.63 3.42 21.00 1.77 1.61
Total Debt/Mcap(x) 0.72 0.90 0.04 2.79 1.13
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.72 1.10 0.07 1.10 0.47
Current Ratio(x) 1.52 1.22 2.31 3.81 1.31
Quick Ratio(x) 1.07 0.63 1.56 3.36 0.76
Interest Cover(x) 2.63 3.42 21.00 1.77 1.61
Total Debt/Mcap(%) 0.72 0.90 0.04 2.79 1.13
GPM(%) 3.68 13.09 8.11 3.87 4.53
NPM(%) 1.27 6.17 5.02 1.36 1.11
Turn Over Ratios
28 | P a g e
8. AIRLINE INDUSRY
The Aviation industry in India encompasses a wide range of services related to air transport such as passenger and
cargo airlines, unscheduled service operators --- private jets and helicopters, airport management, and support services
like Maintenance, Repairs and Overhaul (MRO), ground handling, in-flight catering, and training.
The Indian aviation industry is one of the fastest-growing aviation industries in the world with private airlines
accounting for more than 75 per cent of the sector of the domestic aviation market (as of 2006). With a compound
annual growth rate (CAGR) of 18 per cent and 454 airports and airstrips in place in the country, of which 16 are
designated as international airports, Union Civil Aviation Minister Mr Praful Patel has stated that the aviation sector
will witness revival by 2011.
With an increase in traffic movement during December 2009 and increase in revenues by almost US$ 21.4 million, the
Airports Authority of India seems set to accrue better margins in 2009-10, as per the latest estimates released by the
Ministry of Civil Aviation. This is being primarily attributed to increase in the share of revenue from Delhi
International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL).
The Airports Authority of India (AAI) is set to spend over US$ 1.02 billion in 2010, towards modernisation of non-
metro airports. AAI is planning the city-side development of 24 airports, including those at Ahmedabad and Amritsar.
Additionally, 11 new greenfield airports have been identified to reduce passenger load on existing airports, according
to Praveen Seth, member-operations, AAI.
The government has also merged national carriers Air India and Indian Airlines into a single entity, the National
Aviation Company Ltd (NACIL). The civil aviation ministry has prepared a blueprint to convert Delhi airport into an
international hub for passenger airlines with effect from August 2010 to help the airport utilise large amounts of
additional capacity that will be ready by July 2010. Under the plan, NACIL will set up its hub in Delhi. The top
airlines companies in India:
 Jet Airways  IndiGo

 Jet Lite  SpiceJet
 Kingfisher Airlines  GoAir
 Air India  Paramount Airways
 Indian
Presently, India has 136 airports, of which 94 are owned by the Airports Authority of India (AAI). The airports can be
categorized as:
Airports Number
International airports, including joint venture airports 17
Domestic airports 79
Customs airports 8
Civilian claves 24
Others 8
29 | P a g e
r (competitive) airline is simple.
Industry : Airline
s
30 | P a g e
Global
Jagson
Jet Vectra
Airlines Spice jet Kingfisher
airways Helicorp
Ltd.
Ltd.
Naresh Siddhanta SJS
Chairman Goyal Sharma
Vijay Mallya
Saighal
Market Cap (Rs Mn) 396.32 60343.16 27967.33 16858.62 658
Book Value (Rs.) 14.41 96.2 -4.41 -152.87 0.15
Annual Sales 48348 382700 2210535 3361064 1738
PAT
Equity
P/E 0 0 45.51 0
Dividend Yield (%) 0 0 0 0 0
Face Value (Rs.) 10 10 10 10 10

Earnings Per Share
(Rs) -3.51 -54.17 2.54 -60.50 5.35
CEPS(Rs) -2.19 57.26 2.86 -55.49 31.54
DPS(Rs) 0.00 0.00 0.00 0.00 0.00
Book
NAV/Share(Rs) 3.93 95.80 -14.82 -84.05 6.71
Tax Rate(%) -25.76 -0.02 9.39 25.35 -11.46
Margin Ratios
Core EBITDA
Margin(%) -17.54 11.05 1.18 -35.02 22.08
EBIT Margin(%) -49.98 5.03 3.63 -26.13 18.38
Pre Tax Margin(%) -78.18 -4.48 3.11 -40.90 2.73
PAT Margin (%) -98.32 -4.48 2.82 -30.53 3.05
Cash Profit Margin
(%) -61.11 4.74 3.17 -28.00 17.96
Performance Ratios
ROA(%) -22.92 -2.62 79.05 -68.85 1.37
ROE(%) -63.31 -44.08 0.00 0.00 132.58
ROCE(%) -13.73 3.28 101.88 -59.18 9.77
Asset Turnover(x) 0.23 0.58 28.06 2.25 0.45
Working
Capital/Sales(x) -0.66 161.99 -7.37 -3.93 -24.03
Efficiency Ratios
Fixed
Capital/Sales(x) 695.43 1.76 0.05 21.01 2.69
Receivable days 329.95 26.98 2.62 8.90 87.96
Inventory Days 42.34 20.64 2.28 6.78 16.33
Payable days 37.86 64.85 27.25 90.65 121.69
PER(x) 0.00 0.00 22.95 0.00 9.02
PCE(x) -2.77 8.38 20.41 -0.60 1.53
31 | P a g e
Price/Book(x) 1.54 5.01 -3.93 -0.40 7.20
Yield(%) 0.00 0.00 0.00 0.00 0.00
EV/Net Sales(x) 3.12 1.65 0.64 1.23 2.03
EV/Core
EBITDA(x) -24.45 11.61 16.10 -6.44 7.10
EV/EBIT(x) -6.25 32.86 17.65 -4.71 11.03
EV/CE(x) 0.87 1.04 14.54 1.83 0.96
M Cap / Sales 1.69 0.40 0.65 0.17 0.28
Growth Ratio
Net Sales
Growth(%) -49.13 -9.05 29.10 265.56 4.66
Core EBITDA
Growth(%) 34.09 0.00 -126.64 71.53 223.18
EBIT Growth(%) 11.00 95.77 -123.77 127.65 -680.97
PAT Growth(%) 14.86 16.23 -117.43 755.14 -113.33
EPS Growth(%) 14.71 16.23 0 336.82 -113.33
Total Debt/Equity(x) 1.34 14.11 -1.16 -3.36 80.82
Current Ratio(x) 0.55 1.06 0.80 0.62 0.95
Quick Ratio(x) 0.51 0.91 0.78 0.58 0.86
Interest Cover(x) -1.77 0.53 6.96 -1.77 1.17
Total Debt/Mcap(x) 1.11 3.35 0.31 6.38 6.40
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 1.34 14.11 -1.16 -3.36 80.82
Current Ratio(x) 0.55 1.06 0.80 0.62 0.95
Quick Ratio(x) 0.51 0.91 0.78 0.58 0.86
Interest Cover(x) -1.77 0.53 6.96 -1.77 1.17
Total Debt/Mcap(%) 1.11 3.35 0.31 6.38 6.40
GPM(%) -40.97 4.74 3.46 -33.87 12.89
NPM(%) -98.32 -4.48 2.82 -30.53 3.05
Turn Over Ratios
32 | P a g e
9. Cement Sector
The Indian cement industry with a total capacity of about 200 m tonnes (MT) in FY09 is the second
largest market after China. Although consolidation has taken place in the Indian cement industry with the
top five players controlling almost 60% of the capacity, the balance capacity still remains pretty fragmented.
Despite the fact that the Indian cement industry has clocked production of more than 100 MT for the
last five years, registering a growth of nearly 9% to 10%, the per capita consumption of around 134 kgs
compares poorly with the world average of over 263 kgs, and more than 950 kgs in China. This, more than
anything, underlines the tremendous scope for growth in the Indian cement industry in the long term.
Cement, being a bulk commodity, is a freight intensive industry and transporting cement over long
distances can prove to be uneconomical. This has resulted in cement being largely a regional play with the
industry divided into five main regions viz. north, south, west, east and the central region. While the
southern region always had excess capacity in the past owing to abundant availability of limestone, the
western and northern regions are the most lucrative markets on account of higher income levels. However,
with capacity addition taking place at a slower rate as compared to growth in demand, recently the demand
supply parity had also been restored to some extent in the Southern region. Considering the pace at which
infrastructural activity is taking place in different regions, the players have lined up expansion plans
accordingly.
33 | P a g e
•The four biggest cement players in the

Indian Cement Industry are: Barriers to High Capital Cost & Long
•ACC Ltd. Entry Gestation Period.
•Grasim Cement
•Ambuja Cement Access to LimeStone
•UltraTech Cement. Resereves
Bargaining power Rivalry among Bargaining power

of Buyers Existing of Suppliers
Competitors
•Licensing of coal & limestone

• Cement is a commodity and sales reserves.
volumes mostly depend upon the •Supply of power
distribution reach of the company. Threat of • Availability of railways for
Things are changing as few brands Substitutes transport.
have started commanding premium • Shortage of coal and volatile
on account of better quality fuel prices remain a concern for
perception. cement Industry and as of now
•Timber is considered as a the companies are relying more
• Cement producers have become substitue of cement. on captive power plant
more powerful than buyers. • Countries like Japan, Singapore,
Indonesia etc. Which are more prone
•Most of the companies are moving to earthquake are using timber as
into direct marketing, thus removing substitute.
middlemen, thus buyers are not left •Timber cannot be considered, as one
with much bargaining power. of the major substitutes of cement,
therefore
cement is one of the main
components of any construction.
Without cement, construction work
is next to impossible as it provides
strength to the building.
34 | P a g e
Industry : Cement
35 | P a g e
Ambuja Madras Prism Ultratech
ACC
Cements Cements Cement Cem
NS PR Kumar
NS Rajesh G
Chairman Sekhsari Ramasubrahma Mangalam
Sekhsaria Kapadia
a neya Rajha Birla
Market Cap (Rs Mn) 171129.53 193677.14 25081.97 27483.27 257031.27

Book Value (Rs.) 361.13 47.99 67.63 24.34 182.43
Annual Sales (in Cr.) 8,190.90 7,181.48 2,813.80 2,857.18 7,113.53
PAT (in Cr.) 1,606.73 1,218.37 353.68 251.05 1,093.24
Equity (in Cr.) 187.94 304.74 23.8 503.36 124.49
P/E 11.56 13.71 8.71 12.7 27.99
Face Value (Rs.) 2.00 1.00 10.00 10.00

10.00
Particulars Dec 2009 Dec 2009 Mar 2010 Mar 2010 Mar 2010

Earnings Per Share
(Rs) 85.58 8.00 14.86 4.99 87.82
CEPS(Rs) 103.80 9.95 23.10 6.77 118.99
DPS(Rs) 23.00 2.40 2.00 2.50 6.00
Book
NAV/Share(Rs) 320.44 42.45 64.58 23.23 370.04
Tax Rate(%) 29.97 32.44 33.32 29.92 31.16
Margin Ratios
Core EBITDA
Margin(%) 28.42 24.59 27.61 16.88 25.50
EBIT Margin(%) 27.27 23.52 21.96 13.70 22.07
Pre Tax
Margin(%) 26.30 23.23 17.08 11.95 20.55
PAT Margin (%) 18.42 15.69 11.39 8.38 14.14
Cash Profit Margin
(%) 22.34 19.52 17.70 11.37 19.17
Performance Ratios
ROA(%) 26.79 19.34 9.01 19.07 18.29
ROE(%) 29.36 20.08 25.44 27.42 26.64
ROCE(%) 39.67 29.00 17.46 31.20 28.53
Asset Turnover(x) 1.45 1.23 0.79 2.28 1.29
Sales/Fixed
Asset(x) 1.38 1.30 0.71 2.38 1.00
Working
Capital/Sales(x) -10.17 32.59 5.27 23.12 44.60
Efficiency Ratios
Fixed
Capital/Sales(x) 0.73 0.77 1.41 0.42 1.00
Receivable days 10.75 8.86 14.41 25.70 9.49
Inventory Days 32.89 38.13 43.57 21.38 35.74
36 | P a g e
Payable days 104.91 63.76 25.17 25.72 48.23
PER(x) 10.18 12.97 8.18 11.29 13.17
PCE(x) 8.40 10.43 5.26 8.31 9.72
Price/Book(x) 2.72 2.44 1.88 2.42 3.12
Yield(%) 2.64 2.31 1.64 4.44 0.52
EV/Net Sales(x) 2.02 2.13 1.94 1.26 2.26
EV/Core
EBITDA(x) 5.95 7.11 6.18 6.90 7.60
EV/EBIT(x) 6.80 8.26 7.95 8.72 9.33
EV/CE(x) 2.46 2.27 1.32 1.82 2.56
M Cap / Sales 2.04 2.23 1.03 1.00 2.04
Growth Ratio
Net Sales
Growth(%) 10.22 14.48 10.69 339.73 10.44
Core EBITDA
Growth(%) 34.57 8.67 10.61 188.88 15.68
EBIT Growth(%) 33.89 -8.80 3.94 164.13 14.71
PAT Growth(%) 32.48 -13.11 -2.71 160.89 11.90
EPS Growth(%) 32.44 -13.18 -2.71 54.53 11.90
Total
Debt/Equity(x) 0.10 0.04 1.81 0.44 0.46
Current Ratio(x) 1.11 1.85 2.66 1.35 1.29
Quick Ratio(x) 0.74 1.21 1.70 0.81 0.57
Interest Cover(x) 28.22 81.40 4.50 7.82 14.51
Total
Debt/Mcap(x) 0.03 0.01 0.89 0.28 0.11
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.10 0.04 1.81 0.44 0.46
Current Ratio(x) 1.11 1.85 2.66 1.35 1.29
Quick Ratio(x) 0.74 1.21 1.70 0.81 0.57
Interest Cover(x) 28.22 81.40 4.50 7.82 14.51
Total
Debt/Mcap(%) 0.03 0.01 0.89 0.28 0.11
GPM(%) 30.22 27.05 23.39 15.58 25.57
NPM(%) 18.42 15.69 11.39 8.38 14.14
Turn Over Ratios
Sales/Current
Assets 3.80 3.92 2.73 4.39 5.25
37 | P a g e
10. Banking Sector
Banking dates back to 1786, the first bank established in India, then the nationalisation of banks in 1969 and recently
the liberalisation of the same since 1991. In India the banks are being segregated in different groups. Each group has
their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only
work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of
Indian origin and some are foreign players. With years, banks are also adding services to their customers. The Indian
banking industry is passing through a phase of customers market. The customers have more choices in choosing their
banks. A competition has been established within the banks operating in India.
With stiff competition and advancement of technology, the services provided by banks have become more easy and
convenient. Almost 80% of the businesses are still controlled by Public Sector Banks (PSBs). PSBs are still
dominating the commercial banking system In the case of new NBFCs seeking registration with the RBI, the
requirement of minimum net owned funds, has been raised to Rs.2 crores. The Indian Banks Association (IBA) was
formed on the 26th September, 1946 with 22 members. Today IBA has more than 156 members comprising of Public
Sector banks, Private Sector banks, Foreign banks having offices in India, Urban Co-operative banks, Developmental
financial institutions, Federations, merchant banks, mutual funds, housing finance corporations, etc.
Barriers to entry
•Licensing
requirement
•investment in
technology
•branch network
COMPETITION
BARGAIN IN G POWER OF High- There are public sector banks,

SUPPLIERS private sector and foreign banks along
•High during periods of
tight liquidity. with non banking finance companies Threat of substitutes
NBFCs, Deposit in post
•Trade unions in public competing in similar business and stock market
sector banks can be anti
reforms. segments
•Depositors may invest
elsewhere if interest rates
fall.
Bargaining power of
customers
For good creditworthy
borrowers bargaining
power is high due to the
availability of large
number of banks
Industry : Banking
38 | P a g e
Punjab
State Bank of ICICI Bank HDFC Bank Bank Of
National
India Ltd Ltd Ltd Baroda
Bank
Chander Mohan
Chairman O P Bhatt K V Kamath K R Kamath M D Mallya
Vasudev
Market Cap (Rs Mn) 1751388.3 1150594.16 382540.76 1006061.62 302650.82
Book Value (Rs.) 1084.47 459.13 548.65 484.24 438.26
PAT(Rs Mn) 91660.53 40249.83 39053.58 29487.01 30583.31
11,148.8
Equity
6348.83 9 3153.03 4577.43 3655.28
P/E 17.96 27.57 9.24 31.89 9.36
Face Value (Rs.) 10 10 10 10 10

DPS(Rs) 30.00 12.00 22.00 12.00 15.00
Book NAV/Share(Rs) 1038.76 463.02 514.77 470.12 414.67
Margin Ratios
Yield on Advances 11.23 14.19 11.50 12.85 9.54
Yield on Investments 6.95 5.80 6.92 7.39 7.16
Cost of Liabilities 5.22 5.94 4.82 4.48 4.23
NIM 3.75 4.48 4.57 6.66 3.39
Interest Spread 6.02 8.25 6.68 8.38 5.31
Performance Ratios
ROA(%) 0.91 1.08 1.44 1.45 1.21
ROE(%) 14.80 7.96 26.59 16.31 21.86
ROCE(%) 6.07 6.18 6.97 5.95 5.94
Efficiency Ratios
Cost Income Ratio 52.59 37.58 39.39 47.27 43.57
Core Cost Income Ratio 55.63 39.43 42.20 48.65 47.50
Operating Costs to Assets 1.93 1.61 1.61 2.59 1.37
PER(x) 14.40 26.39 8.18 30.00 7.61
PCE(x) 13.07 23.59 7.74 26.46 7.08
Price/Book(x) 2.00 2.06 1.97 4.11 1.54
Yield(%) 2.00 1.26 2.17 0.62 2.35
EV/Net Sales(x) 3.31 7.80 2.39 5.88 2.19
EV/Core EBITDA(x) 12.83 20.60 6.99 14.78 7.42
EV/EBIT(x) 3.84 8.74 2.72 7.87 2.44
EV/CE(x) 0.22 0.55 0.17 0.43 0.13
M Cap / Sales 1.86 4.13 1.49 5.47 1.39
Growth Ratio
Core Operating Income
Growth 13.41 -3.01 21.22 13.01 15.93
Operating Profit Growth 2.26 9.04 27.54 24.15 21.24
Net Profit Growth 0.49 7.10 26.35 31.35 37.32
BVPS Growth 13.81 4.06 23.52 36.54 17.29
Advances Growth 16.48 -17.00 20.62 27.25 22.19
EPS Growth(%) 0.49 6.95 26.35 22.06 37.32
39 | P a g e
Liquidity ratios
Loans/Deposits(x) 0.13 0.47 0.08 0.04 0.06
Current Ratio(x) 0.36 0.60 0.31 0.35 0.25
Quick Ratio(x) 12.81 46.66 7.73 3.92 5.54
40 | P a g e
11. IT SECTOR
The Indian IT sector is growing rapidly and it has already made its presence felt in all parts of the world. IT
has a major role in strengthening the economic and technical foundations of India. Indian professionals are
setting up examples of their proficiency in IT, in India as well as abroad.
The sector can be classified into 4 broad categories - IT Services, Engineering Services, ITES-BPO
Services, E Business
IT Services can further be categorized into Information Services (IS) outsourcing, packaged software
support and installation, systems integration, processing services, hardware support and installation and IT
training and education.
Engineering Services include Industrial Design, Mechanical Design, Electronic System Design (including
Chip/Board and Embedded Software Design), Design Validation Testing , Industrialization and Prototyping.
IT Enabled Services are services that use telecom networks or the Internet. For example, Remote
Maintenance, Back Office Operations, Data Processing, Call Centers, Business Process Outsourcing, etc.
E Business (electronic business) is carrying out business on the Internet; it includes buying and selling,
serving customers and collaborating with business partners.
IT: Success Factors

 Increasing number of skilled professionals in IT.
 The demographic factor. Approximately 60% of the population of India lies in the age group of
15-65. More than half of the population of India is below the age of 25. So in the future, the
number of working people is going to be more than the number of dependants.
 The vast academic infrastructure of India. In the year 2006, Total Enrolment in colleges was 9.3
million and India produced 441,000 Technical graduates.
 India has the second largest English-speaking workforce in the world
41 | P a g e

42 | P a g e
Industry : IT
Mahindra HCL
INFOSYS Wipro TCS
Satyam Technologies
NR
Vineet Azim Ratan N
Chairman Narayana Shiv Nadar
Nayar Premji Tata
Murthy
Market Cap (Rs Mn) 1590652.99 107518.59 983556.45 1638781.14 273284.09
Book Value (Rs.) 408.9 72.5 76.82 84.68 72.62
PAT(Rs Mn)
57550 17157.4 48980 56185 9973.1

Equity
2771.65 91.4 401.35 837.30 402.25
P/E 27.8 5.16 20.45 27.78 25.87
Face Value (Rs.) 5 2 2 1 2
Particulars Mar-10 Mar-10 Mar-10 Mar-10 Mar-10

Earnings Per Share
(Rs) 100.26 25.59 33.37 28.62 15.55
DPS(Rs)
25 3.50 6 20 7
Book
NAV/Share(Rs) 383.9 108.19 119.33 76.73 48.85
Margin Ratios
Core EBITDA
Margin(%) 34.81 22.47 23.91 28.03 25.84
EBIT Margin(%) 35.35 23.94 25.2 27.69 26.14
Pre Tax Margin(%) 35.35 23.86 24.73 27.64 25.54

PAT Margin (%) 27.22 21.08 21.29 24.38 21.33

Performance Ratios
ROA(%)
28.89 26.03 24.04 39.24 27.54
ROE(%) 28.89 26.32 32.87 39.62 31.83
ROCE(%)
37.52 29.55 28.45 44.55 33.75
Efficiency Ratios
Fixed Capital/Sales(x) 0.29 17 0.22 0.2 0.38
Receivable days 57.27 86.87 71.82 55.95 96.39

Inventory Days 0 0 8.46 0.19 6.79
Payable days 12.81 36.65 18.58 42.82 93.22

PER(x)
26.08 15.42 12.71 27.28 12.48
PCE(x) 22.88 14.27 11.37 25.1 9.96
Price/Book(x) 10.18 3.8
43 | P a g e
6.81 3.65 3.55
Yield(%)
0.96 0.89 0.85 2.56 3.77
EV/Net Sales(x) 6.64 2.71 4.52 6.49 2.48
EV/Core
EBITDA(x) 16.94 10.56 16.25 21.84 7.87
EV/EBIT(x)
18.77 11.3 17.87 23.44 9.49
EV/CE(x)
6.37 2.98 4.46 9.87 2.90
M Cap / Sales
7.10 3.25 4.53 6.63 2.66
Growth Ratio
Net sales growth 4.32 30.65 6.58 2.86 1.29
core EBITDA GROWTH 11.75 21.92 49.05 23.09 32.52
EBIT Growth(%) 11.29 23.21 54.81 23.95 36.64
PAT Growth(%) -1.10 20.55 64.71 19.64 27.75
EPS Growth(%) -1.44 19.96 64.37 -40.27 27.01

Liquidity ratios
Current Ratio(x) 9.60 8.26 3.51 3.26 2.25
Quick Ratio(x) 9.60 8.26 3.38 3.25 2.21
Interest Cover(x) 0.00 327.91 53.48 668.75 43.50
Total Debt/Mcap(%) 0.00 0.00 0.09 0.00 0.04
GPM(%) 39.16 25.56 27.25 29.68 30.93
NPM(%) 27.22 21.08 21.29 24.38 21.33
Turn Over Ratios
44 | P a g e
12. Media and Entertainment
OVERVIEW
Media, the fourth estate, when entwined with the entertainment component represents an effective facet of consumers
in India. The Indian Media and Entertainment (M&E) industry stood at US$ 12.9 billion in 2009 registering a 1.4 per
cent growth over last year, according to a joint report by KPMG and an industry chamber. Over the next five years,
the industry is projected to grow at a compound annual growth rate (CAGR) of 13 per cent to reach the size of US$
24.04 billion by 2014, the report stated. Additionally, the gaming segment is expected to be the fastest growing sector
in the M&E industry. The sector showed a 22 per cent growth in 2009 and is expected to grow at a CAGR of 32 per
cent to reach US$ 705.2 million by 2014, while the animation segment is expected to record a CAGR of 18.7 per cent
in the next five years as per the joint report.
Television
According to the figures released by an industry chamber in March 2010, the Broadcast and Television (TV) sector
comprised over 43 per cent of the overall M&E sector wherein the total size of the television sector accounted for US$
5.7 billion. The broadcast sector is on a strong growth path and the outlook for advertisement expenditure is on a rise
for the television sector.
Music
The potential of the Indian music industry can be better understood from its size estimated at around US$ 182.9
million in 2010, up from US$ 160.9 million in 2008, portraying a growth of 14 per cent during the reporting period. It
is expected to grow at a CAGR of 16 per cent over 2010-14 to reach US$ 379.1 million.
Radio
Radio is considered a mass medium. It ideally suits the Indian environment - leveraging its twin advantages of wide
coverage and cost effectiveness. Currently, the sector generates annual revenues worth US$ 49.5 million and is
growing at around 20 percent annually, according to the joint report by KPMG and an industry chamber.Radio is
expected to grow at a CAGR of 16 per cent over 2010-14 and reach to a size of US$ 361.4 million by 2014.
Globally, radio is enjoying a revival, based on the support of the youth, with players like Radio Mirchi emerging out
as one of the clear leaders with over 41.2 million listeners, as per the recently published Indian Readership Survey
(IRS) quarter 1 (Q1), 2010.
45 | P a g e
Advertising
A report by consultancy firm KPMG stated that the US$ 5.2 billion advertising industry is set to grow at a
compounded annual growth rate (CAGR) of 14 per cent in 2010, in comparison to the last year. Online advertising
will grow about 30 per cent per annum, establishing itself as the fastest growing advertising medium.
Cinema
Films Division has been motivating the broadest spectrum of the Indian public with a view to enlisting their active
participation in nation building activities.According to the joint report by KPMG and an industry chamber, the film
industry contracted 14 per cent growth in 2009 wherein the industry is projected to grow at a CAGR of 9 per cent to
touch an estimated amount of US$ 3.02 billion over the next five years. Growth drivers for the sector would include
expansion of factors like an increase in the number of multiplex screens, digital screens facilitating wider releases,
higher cable and satellite revenues, improving collections from the overseas markets and supplementary revenue
streams like DTH, digital downloads, etc, which are expected to emerge in future.
Print/Publishing
The print media industry is projected to grow at a CAGR of 9 per cent and targets to reach around US$ 5.93 billion by
2014, according to the joint report by KPMG and an industry chamber. Foreign investment, including foreign direct
investments (FDI) and investment by non-resident Indians (NRIs)/person of Indian origin (PIO)/foreign institutional
investor (FII), up to 26 per cent, is permitted for publishing of newspapers and periodicals dealing with news and
current affairs under the Government route.
Digital Media
The digital technologies and their innovative applications have changed the entertainment sector considerably,
especially the content production and its quality. Internet has also emerged as the latest revenue stream and has
become one of the fastest growing advertising medium and has made a significant impression on the entertainment
industry.
Officials in the Information and Broadcasting Ministry have planned a roadmap for making broadcasting operations
completely digital. The Telecom Regulatory Authority of India (TRAI) has suggested a three-stage process for
digitisation, wherein tier one cities would be covered by 2013, tier two cities by 2014 and tier three cities by 2017.
They further stated that the digital transmission helps in enhancing the audio and picture quality.
46 | P a g e
print and electronic
n switch channels
Availability of a
urces of
47 | P a g e
Industry : Media &Entertainment
TV
Balaji Zee UTV
Sun TV Today
Telefilm Entertainmen Software
Network Network
s Ltd. t Comm. Ltd.
Ltd.
Rohinton
Jeetendra Kalanith Subhash Aroon
Chairman Screwvala(MD
Kapoor i Maran Chandra Purie
& CEO)
Market Cap (Rs Mn) 3488.76 193475.84 138659.24 21023.13 5155.81
Book Value (Rs.) 62.06 55.47 60.78 255.31 52.72
Annual Sales 1528.24 13950.1 12102.43 3265.2 2848.16
PAT 151.91 5673.8 3097.45 588.51 308.64
Equity 130.42 1970.4 434.01 406.32 288.96
P/E 38.65 31.28 26.39 20.27 33.86
Dividend Yield (%) 0.56 1.53 0.7 - 0.84
Face Value (Rs.) 2 5 1 10.00 5

Earnings Per
Share(Rs) 2.33 14.4 7.14 14.48 5.34
CEPS(Rs) 3.91 21.64 7.41 14.95 8.99
DPS(Rs) 0.3 7.5 2 0 0.75
Book
NAV/Share(Rs) 61.61 51.13 53.99 244.73 52.56
Tax Rate(%) 31.73 34.51 18.22 -51.84 34.3
Margin Ratios
Core EBITDA
Margin(%) -0.38 79.61 25.66 14.72 18.27
EBIT Margin(%) 14.56 62.19 33.57 22.54 18.97
Pre Tax
Margin(%) 14.56 62.11 31.3 11.87 16.49
PAT Margin (%) 9.94 40.67 25.59 18.02 10.84
Cash Profit Margin
(%) 16.7 61.13 26.58 18.61 18.24
Performance
Ratios
ROA(%) 3.84 29.8 12.78 3.69 8.92
ROE(%) 3.84 29.8 13.85 5.85 9.88
ROCE(%) 5.63 45.57 16.77 4.62 15.61
Asset Turnover(x) 0.39 0.73 0.5 0.2 0.82
Sales/Fixed
Asset(x) 1.24 1 6.88 11.02 1.57
Working
Capital/Sales(x) 1.41 2.56 1.21 0.28 1.27
48 | P a g e
Efficiency Ratios
Fixed
Capital/Sales(x) 0.81 1 0.15 0.09 0.64
Receivable days 127.31 69.15 114.6 51.3 96.96
Inventory Days 2.81 0.06 83.82 326.66 0
Payable days 57.02 22.39 81.23 47.62 56.61
PER(x) 21.89 29.75 14.89 31.1 20.91
PCE(x) 13.03 19.79 14.34 30.71 12.42
Price/Book(x) 0.83 8.38 1.97 1.88 2.12
Yield(%) 0.59 1.75 1.88 0 0.67
EV/Net Sales(x) 2.16 11.8 3.86 8.03 2.04
EV/Core EBITDA(x) 10.12 14.27 11.24 34.71 7.74
EV/EBIT(x) 14.82 18.97 11.5 35.61 10.76
EV/CE(x) 0.82 8.17 1.86 1.47 1.57
M Cap / Sales 2.18 12.1 3.81 5.71 2.27
Growth Ratio
Net Sales
Growth(%) -48.18 38.37 16.15 29.99 13.93
Core EBITDA
Growth(%) -46.61 34.88 -14.76 39.03 10
EBIT Growth(%) -40.68 29.5 -14.36 43.2 10.54
PAT Growth(%) -43.04 29.8 4.96 127.95 -8.01
EPS Growth(%) -43.04 29.82 4.85 91.83 -7.73
Total
Debt/Equity(x) 0 0 0.08 0.56 0.11
Current Ratio(x) 6.15 6.31 5.02 16.89 7.02
Quick Ratio(x) 6.08 6.3 3.9 11.14 7.37
Interest Cover(x) 0 723.02 14.77 2.11 7.67
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0 0 0.08 0.56 0.11
Current Ratio(x) 6.15 6.31 5.02 16.89 7.02
Quick Ratio(x) 6.08 6.3 3.9 11.14 7.37
Interest Cover(x) 0 723.02 14.77 2.11 7.67
GPM(%) 21.32 82.57 32.07 12.45 23.9
NPM(%) 9.94 40.67 25.59 18.02 10.84
Turn Over Ratios
Sales/Current
Assets 1.13 1.43 0.85 0.26 0.7
13. Construction / Infrastructure.
49 | P a g e
Infrastructure construction is the second largest economic activity in India after agriculture, and has been growing
rapidly. The investment in construction accounts for nearly 11% of India Gross Domestic Product (GDP) and nearly
50% of its Gross Fixed Capital Formation (GFCF) It accounts for 65 % of the total investment in infrastructure and is
expected to be the biggest beneficiary of the surge in infrastructure investment over the next five years.
Infrastructure Sector Growth Rate in India GDP has been on the rise in the last few years. The Growth Rate of the
Infrastructure Sector in India GDP has grown due to several reasons and this in its turn has given a major boost to the
country's economy.
The real estate industry comprising of construction and development of properties has grown from family based
entities with focus on single products and having one market presence into corporate entities with multi-city presence
having differentiated products. The industry has witnessed considerable shift from traditional financing methods and
limited debt support to an era of structured finance, private equity and public offering.
The construction sector is a major employment driver, being the second largest employer in the country, next only to
agriculture. This is because of the chain of backward and forward linkages that the sector has with other sectors of the
economy. About 250 ancillary industries such as cement, steel, brick, timber and building material are dependent on
the construction industry. A unit increase in expenditure in this sector has a multiplier effect and the capacity to
generate income as high as five times.
Construction India
focuses on six major
50 | P a g e
segments;
Infrastructure &
Transportation,
2.Green & Intelligent
Buildings, Barrie High capital
3.Build with Steel,
4.Construction rs to investments
Slow down in
Engineering &
Bargai Entry expansion plan of
Bargai
Design, Rivalry MNC’s i.e IT ,
ning
5.Construction &
Building Materials, among firms
ning
Financial services
power
6.Electricals in Existin power
Low for roads and
housing contruction
Building &
of
Construction.
g of
Informal nature of
Buyer Compet industry
Suppli
Residential Inability
Low.toDue
monitor
itors
Threat
s
developers have ers
fair labour
to the
practices i.e social
adopted new of rapid
compliance.
innovative models, increase
Nature of activity
such as low-cost
Substi here in
is the
housing, to cater to tutes predominantly
number
Low. The country stillseasonal and
the vast urban of
lacks adequate intermittent with the
middle-income contracto
infrastructure facilitieslocation,
rs
duration
and
population, and this and quantum of
and citizens have to workconstructi
varying
sector is projected to pay for using public widely onfor each
show moderate services. project.
service
growth over the next The Infrastructure
providers,
two years. Sector in India was margins
Given the after independence have
complexity and completely in the been
trends of Indian hands of the public stagnant
construction projects, sector and this despite
there are significant hampered the growth strong
opportunities for of this sector. India's growth in
international market less spending on real volumes.
participants to bring estate, power,
their technologies telecommunications,
and global best construction, and
practices to India. transportation 51 | P a g e
prevented the country
from sustaining very
high rates of growth.
Industry : Contruction/ Infrastructure
Nitesh Jaypee
DB Realty Unitech
DLF Ltd Estates Infratech
Ltd. Ltd.
Ltd. Ltd.
Karunchandr
KP Nitesh Ramesh Manoj
Chairman aA
Singh Shetty Chandra Gaur
Srivastava
527809.6
Market Cap (Rs Mn)
3 111388.2 6073.91 198658.98 112642.51
Book Value (Rs.) 76.78 130.64 38.07 33.69 30.06
Annual Sales(Rs. in
Cr) 2,401.29 226.61 - 1,937.50 640.66
PAT (Rs. in Cr)

769.61 227.39 - 544.3 487.49
Equity (Rs. in Cr) 339.48 2,853.11 - 487.76 1,226.00
P/E
60.24 40.19 212.9 34.28 12.63
Dividend Yield (%) 0.64 0 0 0.25 0

Face Value (Rs.)
2.00 10 10 2 10

Earnings Per Share
(Rs) 9.13 307.40 4.19 2.23 2.76
CEPS(Rs) 9.80 310.81 5.26 2.26 2.91
DPS(Rs) 2.00 0.00 0.00 0.20 0.00
Book
NAV/Share(Rs) 72.44 1093.42 81.46 32.41 12.89
Tax Rate(%) 14.41 0.08 32.60 23.92 12.15
Margin Ratios
Core EBITDA
Margin(%) 60.56 95.57 8.02 39.30 56.96
EBIT Margin(%) 92.67 94.92 7.18 55.89 54.75
Pre Tax
Margin(%) 64.04 88.25 4.88 37.64 54.75
PAT Margin (%) 54.81 88.18 3.29 28.64 48.10
Cash Profit Margin
(%) 58.84 89.16 4.13 28.95 50.62
Performance Ratios
ROA(%) 7.44 19.05 2.01 4.80 12.50
ROE(%) 13.18 32.79 5.29 10.11 24.26
ROCE(%) 12.59 20.52 4.39 9.36 14.23
Asset Turnover(x) 0.14 0.22 1.64 0.17 0.26
Sales/Fixed
Asset(x) 1.61 22.69 10.77 12.68 12.42
Working
Capital/Sales(x) 0.18 0.29 1.06 0.17 1.02
52 | P a g e
Efficiency Ratios
Fixed
Capital/Sales(x) 0.62 0.04 9.29 0.08 8.05
Receivable days 73.77 0.00 77.71 172.92 0.00
Inventory Days 810.28 68.09 190.96 0.00 280.74
Payable days 121.68 0.00 0.00 421.47 50.80
PER(x) 18.31 0.00 0.00 32.89 0.00
PCE(x) 17.05 0.00 0.00 32.53 0.00
Price/Book(x) 2.31 0.00 0.00 2.26 0.00
Yield(%) 1.20 0 0 0.27 0
EV/Net Sales(x) 13.17 2.52 0.90 11.90 3.02
EV/Core
EBITDA(x) 13.61 2.62 11.17 21.17 5.28
EV/EBIT(x) 14.21 2.65 12.48 21.29 5.52
EV/CE(x) 1.69 0.43 0.58 1.73 0.54
M Cap / Sales 10.03 0.00 0.00 9.42 0.00
Growth Ratio
Net Sales
Growth(%) -48.89 0 36.97 3.75 0
Core EBITDA
Growth(%) -23.85 -2208.52 137.16 -36.76 0.00
EBIT Growth(%) -26.50 -2160.72 193.69 -36.73 -2789.86
PAT Growth(%) -39.80 -2004.22 192.92 -26.41 -2446.13
EPS Growth(%) -39.53 -2004.22 192.92 -51.06 -2442.69
Total
Debt/Equity(x) 0.77 0.72 1.07 1.09 0.94
Current Ratio(x) 11.45 33.47 2.22 2.65 2.25
Quick Ratio(x) 7.39 31.41 1.66 0.98 1.06
Interest Cover(x) 3.24 14.24 3.11 3.06 0
Total
Debt/Mcap(x) 0.34 0 0 0.28 0
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.77 0.72 1.07 1.09 0.94
Current Ratio(x) 11.45 33.47 2.22 2.65 2.25
Quick Ratio(x) 7.39 31.41 1.66 0.98 1.06
Interest Cover(x) 3.24 14.24 3.11 3.06 0
Total
Debt/Mcap(%) 0.34 0 0 0.28 0
GPM(%) 68.07 89.23 5.72 37.96 57.27
NPM(%) 54.81 88.18 3.29 28.64 48.10
Turn Over Ratios
Sales/Current
Assets 0.15 0.28 0.51 0.10 0.53
Sales/Total Assets 0.13 0.65 0.15 0.18
53 | P a g e
14. Engineering Sector
The Engineering sector is the largest in the overall industrial sectors in India. It is a diverse industry with a number of
segments, and can be broadly categorised into two segments, namely, heavy engineering and light engineering. The
engineering sector is relatively less fragmented at the top, as the competencies required are high, while it is highly
fragmented at the lower end (e.g. unbranded transformers for the retail segment) and is dominated by smaller players.
The engineering industry in India manufactures a wide range of products, with heavy engineering goods accounting
for bulk of the production. Most of the leading players are engaged in the production of heavy engineering goods and
mainly produces high-value products using high-end technology. Requirement of high level of capital investment
poses as a major entry barrier. Consequently, the small and unorganised firms have a small market presence.
The light engineering goods segment, on the other hand, uses medium to low-end technology. Entry barrier is low on
account of the comparatively lower requirement of capital and technology. This segment is characterised by the
dominance of small and unorganised players which manufacture low-value added products. However, there are few
medium and large scale firms which manufacture high-value added products. This segment is also characterised by
small capacities and high level of competition among the players.
Classification of the Engineering Sector in India
User Segments
The major end-user industries for heavy engineering goods are power, infrastructure, steel, cement, petrochemicals,
oil & gas, refineries, fertilisers, mining, railways, automobiles, textiles, etc. Light engineering goods are essentially
used as inputs by the heavy engineering industry.
54 | P a g e
Pricing
Experience in
Specific field Barriers
Barriers of
Product to Entry entry are high
Differentiation
Bargain
at upper end
Bargain
Timely completion
Rivalry of the ing
of projects
ing among industry as
skilledpower
power Existing
Competit
manpower of
of and
ors Supplier
technologies,
Buyers
Bargaini
Threat andBargaining
the
ng power
ability
s
to of
power of supplier
fund large is
for low because
projects are
technolo Substitu of intense.
prerequisite
gy tes competition
driven among
segment them.
s is low. However, in
technology
driven high-
end
segments,
suppliers
have the
upper hand.
55 | P a g e
Industry : Engineering
Crompton
Thermax ABB BHEL Siemens
Greav
Meher Biplab B Prasad Deepak S
Chairman G Thapar
Pudumjee Majumder Rao Parekh
Market Cap (Rs Mn) 94848.41 166104.38 1194918.32 198669.93 241828.15
Book Value (Rs.) 93.74 115.84 338.8 29.5 103.48
PAT (in Cr.) 141.44 354.64 4,310.64 617.34 1,044.85
Equity (in Cr.) 23.83 42.38 489.52 128.3 67.43
P/E 58.87 69.9 26.51 32.87 33.34
Face Value (Rs.)

2.00 2.00 10.00 2.00 2.00
Particulars Mar 2010 Dec 2009 Mar 2010 Mar 2010 Mar 2010

Earnings Per Share
(Rs) 11.87 16.74 88.06 9.62 30.99
CEPS(Rs) 15.26 19.02 94.95 10.43 33.30
DPS(Rs) 5.00 2.00 23.30 2.20 5.00
Book
NAV/Share(Rs) 88.19 113.72 325.16 27.28 86.47
Tax Rate(%) 48.95 32.76 34.59 32.21 27.03
Margin Ratios
Core EBITDA
Margin(%) 9.38 8.43 13.13 14.07 10.99
EBIT Margin(%) 9.11 8.80 19.12 16.68 16.83
Pre Tax Margin(%) 8.75 8.12 19.02 16.32 16.65
PAT Margin (%) 4.47 5.46 12.44 11.07 12.15
Cash Profit Margin
(%) 5.74 6.21 13.41 12.00 13.05
Performance Ratios
ROA(%) 14.05 15.61 29.59 40.00 41.90
ROE(%) 14.05 15.71 29.88 41.47 41.94
ROCE(%) 28.66 25.33 45.47 60.86 58.08
Asset Turnover(x) 3.15 2.86 2.38 3.61 3.45
Working
Capital/Sales(x) 17.13 4.02 3.30 9.00 5.40
Efficiency Ratios
Fixed
Capital/Sales(x) 0.20 0.13 0.17 0.20 12.36
Receivable days 74.23 163.93 193.12 72.79 146.21
Inventory Days 29.56 38.56 89.93 19.13 36.80
Payable days 77.25 108.91 87.38 73.97 117.47
PER(x) 57.38 45.85 27.09 27.13 17.98
56 | P a g e
PCE(x) 44.62 40.33 25.12 25.03 16.73
Price/Book(x) 7.72 6.75 7.34 9.57 6.44
Yield(%) 0.73 0.26 0.98 0.84 0.90
EV/Net Sales(x) 2.43 2.52 3.22 3.04 2.07
EV/Core
EBITDA(x) 16.92 25.37 15.39 17.22 13.14
EV/EBIT(x) 26.04 27.52 16.17 17.44 11.98
EV/CE(x) 7.15 6.49 6.68 9.06 5.94
M Cap / Sales 2.63 2.61 3.51 3.13 2.24
Growth Ratio
Net Sales
Growth(%) -3.82 -8.77 24.77 15.95 1.16
Core EBITDA
Growth(%) -3.55 -32.53 35.10 36.94 56.74
EBIT Growth(%) -32.81 -35.22 35.75 44.77 60.37
PAT Growth(%) -50.77 -35.22 37.36 55.47 76.10
EPS Growth(%) -50.77 -35.22 37.36 -11.16 76.08
Current Ratio(x) 1.52 1.59 1.68 1.70 2.05
Quick Ratio(x) 1.39 1.35 1.35 1.49 1.82
Interest Cover(x) 25.39 12.89 197.74 46.53 92.51
Total Debt/Mcap(x) 0 0 0.00 0.00 0.00
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.00 0.00 0.01 0.03 0.00
Current Ratio(x) 1.52 1.59 1.68 1.70 2.05
Quick Ratio(x) 1.39 1.35 1.35 1.49 1.82
Interest Cover(x) 25.39 12.89 197.74 46.53 92.51
Total Debt/Mcap(%) 0.00 0.00 0.00 0.00 0.00
GPM(%) 13.66 8.87 20.00 16.53 15.16
NPM(%) 4.47 5.46 12.44 11.07 12.15
Turn Over Ratios
57 | P a g e
15. FMCG Sector
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-
established distribution networks, as well as intense competition between the organised and unorganised segments are
the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value
chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in
2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and
give brand makers the opportunity to convert them to branded products. Most of the product categories like jams,
toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but
the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy
levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted
by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen
companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by
Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are
figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and
soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.
There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in
the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these
companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were
using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to
pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many
sectors.
THE TOP 10 COMPANIES IN FMCG SECTOR
S. NO. Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
58 | P a g e
Huge
investment.
Setting up
Barrier distribution
Competition is
faced from both
s to networks.
Intense
domestic, MNCs Entry Bargai
competition
and Bargai
also from Rivalry . ning
ning
cheaper
among Complex
imports. power
Pricepower Existing structure.
wars are a
commonof Compet of
phenomenon. itors Suppli
In case Buyers
of branded
Threat Some of the
Scarce
products, theredueis
customers Plenty of ersare
companies
littleto that highlythe ofin the
substitutes integrated
consumer
saturated
influence,
can
but
Substit
market. backwards,
which reduces
Re-placed goods
market.
intense competition utes
also available. the supplier's
within the FMCG clout.
Wide Range of
companies results in Manufacturing
choices.
value for is largely
money deals for
New Product outsourced.
consumers (e.g. buy Development. Bargaining
1 get 1 free concept) power is not
Bargaining power of too high as
buyers not too high ample of
Because switching suppliers in
cost is low. the market.
Raw materials
are
homogeneous.
59 | P a g e
Industry : FMCG
Nestle Dabur
HUL ITC Marico
India India
Harish YC Martial Nikhil Anand
Chairman
Manwani Deveshwar Rolland Khattau Burman
Market Cap (Rs Mn)
5,87,099.33 1,25,707.15 30,473.15 76292.69 185424.67
Book Value (Rs.)
14.27 36.69 60.29 9.38 8.64
Annual Sales
17,523.00 13,832.24 5,149.99 2,030.85 2,874.60
PAT
526.40 4,061.00 655.00 235.02 433.15
Equity
272.05 164.25 3,160.60 124.20 211.50
P/E
27.10 29.54 44.01 31.60 43.43
1.53
Dividend Yield (%) 2.39 6.09 0.53 0.95
Face Value (Rs.)
1.00 1.00 10.00 1.00 1.00

Earnings Per Share
(Rs) 10.09 10.64 67.94 3.86 4.99
CEPS(Rs) 10.94 12.23 80.55 4.27 5.36
DPS(Rs) 6.50 10.00 48.50 0.66 2.00
Book
NAV/Share(Rs) 11.82 36.69 60.29 9.38 8.44
Tax Rate(%) 21.54 32.49 28.57 19.67 17.78
Margin Ratios
Core EBITDA
Margin(%) 13.75 23.20 19.19 15.50 18.45
EBIT Margin(%) 15.44 23.25 17.59 15.35 18.76
Pre Tax Margin(%) 15.40 22.91 17.56 14.45 18.30
PAT Margin (%) 12.09 15.46 12.54 11.60 15.04
Cash Profit Margin
(%) 13.10 17.78 14.87 12.85 16.15
Performance Ratios
ROA(%) 86.92 28.92 124.22 28.93 49.91
ROE(%) 94.99 29.33 124.22 50.05 60.44
ROCE(%) 111.08 43.65 174.16 38.27 62.64
Asset Turnover(x) 7.19 1.87 9.90 2.49 3.32
Working
Capital/Sales(x) -13.34 333.07 -9.23 4.59 62.91
Efficiency Ratios
Fixed
Capital/Sales(x) 0.18 0.43 0.29 0.14 0.21
60 | P a g e
Receivable days 12.17 10.80 3.84 14.02 15.39
Inventory Days 47.16 63.58 32.63 57.99 35.49
Payable days 100.64 104.03 52.04 43.03 53.06
PER(x) 23.65 12.37 37.50 28.14 31.75
PCE(x) 21.83 10.76 31.63 25.42 29.58
Price/Book(x) 20.19 3.59 42.26 11.57 18.80
Yield(%) 2.72 3.80 1.90 0.61 1.26
EV/Net Sales(x) 2.86 5.48 4.76 3.45 4.80
EV/Core EBITDA(x) 17.32 14.81 23.47 20.77 23.95
EV/EBIT(x) 17.84 16.29 26.58 22.45 25.37
EV/CE(x) 19.43 7.02 42.00 7.36 15.95
M Cap / Sales 2.97 5.53 4.79 3.27 4.82
Growth Ratio
Net Sales Growth(%) -13.42 16.28 18.62 5.57 19.23
Core EBITDA
Growth(%) -10.71 23.82 19.93 26.91 22.56
EBIT Growth(%) -7.64 25.28 18.58 55.49 22.95
PAT Growth(%) -11.79 24.43 22.64 65.39 16.00
EPS Growth(%) -11.87 23.01 22.66 65.55 15.62
Current Ratio(x) 1.01 2.32 1.46 3.22 2.12
Quick Ratio(x) 0.60 1.02 0.61 1.59 1.43
Interest Cover(x) 403.07 67.63 656.69 16.99 40.69
Total Debt/Mcap(x) 0.00 0.00 0.00 0.06 0.01
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.09 0.01 0.00 0.73 0.17
Current Ratio(x) 1.01 2.32 1.46 3.22 2.12
Quick Ratio(x) 0.60 1.02 0.61 1.59 1.43
Interest Cover(x) 403.07 67.63 656.69 16.99 40.69
Total Debt/Mcap(%) 0.00 0.00 0.00 0.06 0.01
GPM(%) 15.87 25.23 19.89 15.69 19.40
NPM(%) 12.09 15.46 12.54 11.60 15.04
Turn Over Ratios
61 | P a g e
16. Steel Sector
The steel industry in India has been moving from strength to strength and according to the Annual Report 2009-10 by
the Ministry of Steel, India has emerged as the fifth largest producer of steel in the world and is likely to become the
second largest producer of crude steel by 2015-16.
Recently, Steel Minister, Mr Virbhadra Singh said that India will become the world's second-largest steel producer by
2012, more than doubling its capacity to 124 million tonnes (MT) as part of the push being given to assist overall
infrastructure development.
Steel production rose 4.2 per cent to reach 60 MT in 2009-2010, according to the Ministry of Steel. India's steel
consumption rose 8 per cent in the year ended March 2010, over the same period a year ago on account of improved
demand from sectors like automobile, infrastructure and housing. The country’s steel consumption increased to 56.3
MT in the 12 months to March 2010 from 52.3 MT in the previous year, as per the Ministry of Steel.
A host of steel companies have lined up major investment proposals. Furthermore, with an expanding consumer
market, the Indian steel industry is likely to receive huge domestic and foreign investments. The domestic steel sector
has attracted a staggering investment of about US$ 238 billion, according to the Minister of State for Steel, Mr A. Sai
Prathap.
62 | P a g e
Capital
Barriers intensive
Regulato
It is medium in the to Entry ry Bargain
Bargain
domestic steel
Rivalry clearanc
industry as ing
demanding still among e
power
power
exceeds the Existing
supply.
Competit of
of
ors Supplie
Buyers
Unlike the FMCG Threat
It is medium to low.
It is medium to low. Bargaining
or retail sectors, Usage of aluminum has power ofrs
the buyers have been
a of
rising continuously suppliers is low
low bargaining Substitu
in the automobile, for the fully
power. integrated steel
consumer durables
tes plants as they
sectors, it still does not
have their own
pose any significant mines of key
threat to steel as the raw material like
latter cannot be replaced iron ore coal for
completely and the cost example Tata
differential is also very Steel.
high.
Industry : Steel
Tata Jindal JSW
SAIL Sesa Goa
Steel Steel Steel
Ratan N Savitri Savitri Devi Sudhakar D
Chairman C S Verma
Tata Jindal Jindal Kulkarni
Market Cap (Rs Mn) 523058.68 656375.15 227890.76 821536.67 278414.67
Book Value (Rs.) 437.06 76.63 518.84 83.51 107.38
PAT (in Cr.) 5,046.80 1,479.69 2,022.74 6,754.37 2,118.09
Equity (in Cr.) 887.41 93.12 187.05 4,130.40 83.1
P/E 8.96 40.63 11.21 12.45 10.17
Face Value (Rs.) 10.00 1.00 10.00 1.00

10.00
63 | P a g e
Earnings Per Share
(Rs) 56.37 15.89 106.59 14.95 25.49
CEPS(Rs) 69.09 21.39 168.20 18.06 26.18
DPS(Rs) 8.00 1.25 9.50 2.60 3.25
Book
NAV/Share(Rs) 416.60 72.17 500.11 67.75 86.75
Tax Rate(%) 30.04 22.43 28.26 34.33 20.32
Margin Ratios
Core EBITDA
Margin(%) 33.10 29.52 21.96 17.07 43.21
EBIT Margin(%) 33.87 26.05 19.12 19.61 51.06
Pre Tax Margin(%) 26.96 22.19 14.49 19.09 50.05
PAT Margin (%) 18.86 17.21 10.40 12.54 39.89
Cash Profit Margin
(%) 22.91 23.17 16.17 15.15 40.97
Performance Ratios
ROA(%) 8.38 11.60 9.98 20.04 31.02
ROE(%) 16.40 24.45 23.86 24.22 36.12
ROCE(%) 15.06 17.56 18.36 31.37 39.72
Asset Turnover(x) 0.44 0.67 0.96 1.60 0.78
Working
Capital/Sales(x) 8.24 5.26 -9.43 2.83 1.69
Efficiency Ratios
Fixed
Capital/Sales(x) 0.79 0.94 0.99 64.62 0.15
Receivable days 7.30 21.53 9.02 22.50 18.39
Inventory Days 44.73 53.90 43.50 62.92 22.01
Payable days 92.43 132.18 40.30 33.43 53.74
PER(x) 11.22 44.19 11.59 6.45 18.48
PCE(x) 9.16 32.83 7.35 5.34 18.00
Price/Book(x) 1.52 9.73 2.47 1.42 5.43
Yield(%) 1.26 0.18 0.77 2.70 0.69
EV/Net Sales(x) 3.17 10.01 1.91 0.67 7.29
EV/Core
EBITDA(x) 7.82 26.79 7.16 2.66 13.97
EV/EBIT(x) 8.75 32.92 9.33 3.02 14.27
EV/CE(x) 1.25 4.87 1.63 0.82 4.24
M Cap / Sales 2.24 8.88 1.27 0.91 7.37
Growth Ratio
Net Sales
Growth(%) 2.90 -3.73 30.01 9.34 4.49
Core EBITDA
Growth(%) 3.75 1.80 54.63 -15.54 3.40
EBIT Growth(%) 2.92 -1.35 145.63 -17.60 2.95
PAT Growth(%) -2.98 -3.70 341.16 -18.07 9.04
64 | P a g e
EPS Growth(%) -19.13 -84.00 364.21 -18.08 3.29
Current Ratio(x) 1.84 2.03 0.76 4.47 8.71
Quick Ratio(x) 1.38 1.57 0.40 3.16 8.13
Interest Cover(x) 4.90 6.75 4.13 38.13 50.51
Total Debt/Mcap(x) 0.47 0.13 0.50 0.19 0.05
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.80 1.10 1.30 0.21 0.16
Current Ratio(x) 1.84 2.03 0.76 4.47 8.71
Quick Ratio(x) 1.38 1.57 0.40 3.16 8.13
Interest Cover(x) 4.90 6.75 4.13 38.13 50.51
Total Debt/Mcap(%) 0.47 0.13 0.50 0.19 0.05
GPM(%) 31.01 28.15 20.27 21.70 51.13
NPM(%) 18.86 17.21 10.40 12.54 39.89
Turn Over Ratios
17. Finance – NBFCs

Institutions that today have replaced them in playing a vital role in long-term financing and project financing are the
NBFCs, which have their relative specializations. The trend of segmental monopoly is now changing with banks
entering long term finance and FIs also meeting the medium and short - term needs of the business masses. Non
Banking Financial Companies (NBFCs) have come a long way from the era of concentrated regional operations, lesser
credibility and poor risk management practices to highly sophisticated operations, pan-India presence and most
importantly an alternate choice of financial intermediation. Today, NBFCs are present in the competing fields of
vehicle financing, housing loans, hire purchase, lease and personal loans. More often than not, NBFCs are present
where the risk is higher (and hence the returns), reach is required (strong last-mile network), recovery needs to be the
focus area, loan-ticket size is small, appraisal and disbursement has to be speedy and flexibility in terms of loan size
and tenor is required.
NBFCs’ growth had been constrained due to lack of adequate capital. Going forward, we believe capital infusion and
leverage thereupon would catapult NBFCs’ growth in size and scale.
65 | P a g e
NBFCs are not required to maintain cash reserve ratio (CRR) and statutory liquid ratio (SLR). Priority sector lending
norm of 40% (of total advances) is not applicable to them. While this is at their advantage, they do not have access to
low cost demand deposits. As a result their cost of funds is always high, resulting in thinner interest spread.
NBFCs:
1) These NBFCs are non-deposit companies. There are more than 11,000 NBFCs registered with the RBI. Kolkata has
the highest base with over 5,000 companies.
2) These NBFCs are public deposit companies. 340 such NBFCs are registered with the RBI. Some of the key NBFCs in
this category inclue Manappuram General Finance and Leasing company, Bajaj Finance, Sriram Transport Finance,
Sundaram Finance, etc.
NBFCs are prominent players in the transport finance business. More than 80 per cent of equipment leasing and hire
purchase activity in India is financed by NBFCs.
Key players NBFCs Service offerings

Company
Commercial vehiclefinance, equipment finance, tyre finance, car and home
Sundaram Finance
finance
ShriramTransport Commercial vehicle finance, construction equipment finance,working
Finance capital loan, engine replacement loan, freight bill discounting
Consumer durable loans,loan against shares, personal loan, loan against
Bajaj Finance property, two-wheeler loan, IT product loan
Tata Finance Commercial vehicle finance,car finance, used vehicle finance
Magma Fincorp Commercial vehicle finance, construction equipment finance, car finance
Housing finance services —home loan portfolio and home loan counselling,
HDFC
loans for home extension, improvement and land purchase loan
Two-and four-wheeler loans, utility vehicle loans, tractor loans, commercial
Mahindra Finance
vehicle loans
Loan against gold, business loans, security loans —against government
Manappuram Finance
instruments, insurance services
66 | P a g e
Banks: Banks are important substitutes. As they are leaders in
he markets. They have a quite strong brand presence and a
good credit appraisal method also.
Money Lenders: Small NBFC‘s cater to the rural areas where
here is already a very strong presence. They dominate the
market in the rural areas and its mostly the unorganized
market they tap in.
67 | P a g e
Industry : Finance - NBFCs
Reliance Power Shriram Sundaram

IDFC
Cap Finance Trans Finance
Deepak S
Chairman Anil D Ambani Parekh Satnam Singh Arun Duggal S Viji
Market Cap (Rs Mn) 195007.88 269953.3 404415.6 168168.64 30470.23
Book Value (Rs.) 282.36 66.97 121.22 181.21 247.5
PAT (in Cr.) 339.42 1,012.84 2,355.27 873.12 226.75
Equity (in Cr.) 246.16 1,300.61 1,147.77 225.54 55.55
P/E 68.29 24.79 16.48 16.86 13.58
Face Value (Rs.) 10.00 10.00 10.00 10.00

10.00

Earnings Per Share
(Rs) 13.82 7.79 20.54 38.72 40.82
CEPS(Rs) 14.56 8.04 20.57 39.38 48.88
DPS(Rs) 6.50 1.50 4.50 6.00 10.00
Book
NAV/Share(Rs) 280.31 52.30 115.54 168.40 236.92
Tax Rate(%) 20.76 23.10 21.78 34.08 29.90
Margin Ratios
Core EBITDA
Margin(%) 69.67 91.68 97.96 79.31 79.76
EBIT Margin(%) 71.29 91.52 98.83 80.43 78.55
Pre Tax Margin(%) 18.07 36.89 36.89 29.83 26.54
PAT Margin (%) 14.32 28.37 28.86 19.66 18.61
Cash Profit Margin
(%) 15.08 29.29 28.91 20.00 22.28
Performance Ratios
ROA(%) 1.72 3.22 3.24 3.90 2.63
ROE(%) 5.00 15.81 19.03 28.95 18.37
ROCE(%) 8.59 10.39 11.09 15.99 11.11
Asset Turnover(x) 0.12 0.11 0.11 0.20 0.14
Working
Capital/Sales(x) 0.32 1.78 7.31 0.22 0.14
Efficiency Ratios
Fixed
Capital/Sales(x) 0.12 0.12 0.01 3.81 0.40
Receivable days 15.61 2.98 0.00 0.00 4.24
Inventory Days 0.00 0.00 0.00 0.00 76.80
Payable days 63.91 191.81 46.22 216.05 561.10
68 | P a g e
PER(x) 54.61 20.69 12.57 13.54 9.20
PCE(x) 51.84 20.04 12.55 13.31 7.69
Price/Book(x) 2.69 3.08 2.24 3.11 1.59
Yield(%) 0.86 0.93 1.74 1.14 2.66
EV/Net Sales(x) 12.70 13.29 11.76 5.80 7.56
EV/Core
EBITDA(x) 17.62 14.38 11.89 7.18 9.19
EV/EBIT(x) 17.81 14.52 11.89 7.21 9.62
EV/CE(x) 1.59 1.42 1.18 1.15 0.94
M Cap / Sales 7.82 5.87 3.63 2.66 1.71
Growth Ratio
Net Sales
Growth(%) -20.43 7.75 24.46 20.33 11.62
Core EBITDA
Growth(%) -26.89 7.69 25.29 22.04 10.98
EBIT Growth(%) -27.00 7.32 25.31 23.22 10.65
PAT Growth(%) -64.94 37.63 19.66 42.57 50.43
EPS Growth(%) -64.94 37.06 19.66 28.66 50.43
Total
Debt/Equity(x) 1.89 3.91 4.88 6.40 5.98
Current Ratio(x) 8.86 3.87 2.27 6.39 18.18
Quick Ratio(x) 28.12 3.87 2.30 6.91 17.79
Interest Cover(x) 1.34 1.68 1.60 1.59 1.51
Total Debt/Mcap(x) 0.65 1.27 2.29 1.56 4.07
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 1.89 3.91 4.88 6.40 5.98
Current Ratio(x) 8.86 3.87 2.27 6.39 18.18
Quick Ratio(x) 28.12 3.87 2.30 6.91 17.79
Interest Cover(x) 1.34 1.68 1.60 1.59 1.51
Total Debt/Mcap(%) 0.65 1.27 2.29 1.56 4.07
GPM(%) 0.00 0.00 0.00 0.00 0.00
NPM(%) 14.32 28.37 28.86 19.66 18.61
Turn Over Ratios
69 | P a g e
18. Oil & Gas Sector
Oil
India has large reserves of coal, crude oil and natural gas. Coal reserves in India are the fourth-largest in the world,
amounting to 58.6 billion tonnes (2008). India has 20 refineries —17 in the public sector and three in the private
sector. Crude oil accounted for 775 million metric tonnes (MMT) in 2009. Natural gas accounted for 1,074 billion
cubic metres (BCM) (2009).
Policies such as the New Exploration Licensing Policy (NELP) and the Coal Bed Methane (CBM) Policy have helped
attract investments from both the public and private sectors. Petroleum products and natural gas together contributed
2.36 per cent, or US$ 21.25 billion, to the country’s total GDP (US$ 900.19 billion) in 2007–08.
Reliance Industries Limited (RIL) is the largest player in the private sector.
Indian Oil Corporation (IOC), ONGC and GAIL (India) Limited are other major players.
Gas
India's natural gas demand is expected to nearly double to 320 million metric standard cubic metre per day (mmscmd)
by 2015, according to a report released by global consultancy firm, McKinsey at the VI Asia Gas Partnership Summit.
According to the report, the current demand of 166 mmscmd—made up of nearly 132 mmscmd supplies from
domestic fields and the rest from imported liquefied natural gas (LNG)—is likely to rise to at least a minimum of 230
mmscmd and a maximum of 320 mmscmd by 2015.
In January 2010, Gas Authority of India Ltd (GAIL) said that gas availability in India is expected to grow at 23 per
cent compounded annual growth rate (CAGR) to 312 mscmd by 2013-14, buoyed by trebling of domestic production
to 254 mscmd and doubling of regasified liquefied natural gas imports to 58 mscmd.
To capture the opportunity presented by the impending gas surge in India, GAIL is investing significantly in its
pipeline network. Over the next three years, it will invest US$ 660.7 million-US$ 770.8 million, expanding its
transmission capacity from the current 150 mscmd to 300 mscmd.
Moreover, GAIL which has signed a Memorandum of Understanding (MoU) with the Karnataka government will
spend US$ 423.6 million this year to lay the 800-km pipeline to transport gas from the LNG terminal in Dabhol to
Bidadi near Bangalore. GAIL expects the project to be completed by March 2012.
State-owned Oil and Natural Gas Corp (ONGC) has added 83 million tonnes (MT) of oil and gas reserves in 2009-10,
the highest in two decades.
70 | P a g e
Substitutes for the oil industry in general include
alternative fuels such as coal, gas, solar power, wind
power, hydroelectricity and even nuclear energy.
Remember, oil is used for more than just running our
vehicles, it is also used in plastics and other materials
Also, companies offering more obscure or specialized
services such as seismic drilling or directional drilling
tools are much more likely to withstand the threat of
substitutes..
71 | P a g e
Peer Group Comparison – Oil & Gas
Oil & Jindal

Aban Offshore Cairn India
Oil India Ltd Natural Gas Drilling &
Ltd. Ltd.
Corpn. Ltd. Inds. Ltd.
William B
Chairman N M Borah V S Rao R S Sharma
Gammell
D P Jindal
Market Cap (Rs Mn) 354670.21 35332.49 2909080.53 637829.48 13965.04

Book Value (Rs.) 592.48 440.78 421.26 167.85 165.22
Annual Sales 8,072.80 1,182.01 61,982.52 3.20 7778.29
PAT 2,610.52 280.44 16,767.55 -68.95 2,610.52
Equity 240.45 8.70 2,138.89 1,896.97 240.45
P/E 14.95 12.99 18.67 0 14
Face Value (Rs.) 10 2 10 10 5

Earnings Per Share
108.57 58.05 75.40 -0.36 16.28
(Rs)
CEPS(Rs) 117.64 89.55 131.29 -0.36 21.87
DPS(Rs) 34.00 3.60 32.00 0.00 1.25
BookNAV/Share(Rs) 571.64 424.55 365.07 168.11 117.89
Tax Rate(%) 32.98 35.00 32.75 6.01 34.92
Margin Ratios
Core EBITDA
37.26 59.43 26.05 -5218.17 8.58
Margin(%)
EBIT Margin(%) 47.24 65.58 37.67 -221.05 7.72
Pre Tax Margin(%) 47.19 36.50 37.49 -2289.74 7.37
PAT Margin (%) 31.63 23.73 25.21 0.00 4.80
Cash Profit Margin
34.27 32.96 43.90 -2150.53 6.45
(%)
Performance Ratios
ROA(%) 22.51 5.81 18.13 -0.21 12.73
ROE(%) 22.64 20.28 21.79 -0.22 14.74
ROCE(%) 33.67 16.06 27.30 -0.02 20.47
Asset Turnover(x) 0.71 0.24 0.72 0.00 2.65
Working
0.92 1.43 1.91 0.02 4.42
Capital/Sales(x)
Efficiency Ratios
Receivable days 23.54 59.96 24.09 191.78 100.05
Inventory Days 21.10 19.41 21.52 111.99 4.80
Payable days 31.53 266.78 52.36 241.89 84.73
PER(x) 10.60 20.07 10.34 0.00 20.90
72 | P a g e
PCE(x) 9.78 13.01 5.94 -840.52 15.56
Price/Book(x) 2.01 2.74 2.14 1.82 2.89
Yield(%) 2.96 0.31 4.10 0.00 0.37
EV/Net Sales(x) 2.32 7.18 2.57 0.00 1.03
EV/Core
4.65 9.60 4.55 0.00 11.02
EBITDA(x)
EV/EBIT(x) 4.91 10.95 6.79 0.00 13.37
EV/CE(x) 1.39 1.59 1.73 1.77 2.59
M Cap / Sales 3.35 4.29 2.62 0.00 1.00
Growth Ratio
Net Sales
13.74 17.61 6.30 -14.17 88.44
Growth(%)
Core EBITDA
9.13 15.40 2.49 -106.25 77.38
Growth(%)
EBIT Growth(%) 14.81 15.86 -4.72 -106.30 86.90
PAT Growth(%) 20.76 7.96 -3.44 -227.12 103.26
EPS Growth(%) 7.48 -5.64 -3.44 -225.34 1.63
Current Ratio(x) 6.80 4.24 5.93 2.45 1.72

Quick Ratio(x) 6.55 4.00 5.62 2.44 1.68
Interest Cover(x) 0.00 2.26 202.66 -0.11 22.59
Total Debt/Mcap(x) 0.00 0.62 0.10 0.02 0.05
Valuation Ratios
Liquidity ratios
Current Ratio(x) 6.80 4.24 5.93 2.45 1.72
Quick Ratio(x) 6.55 4.00 5.62 2.44 1.68
Interest Cover(x) 0.00 2.26 202.66 -0.11 22.59
Total Debt/Mcap(%) 0.00 0.62 0.10 0.02 0.05
GPM(%) 49.84 45.73 56.07 0.00 9.02
NPM(%) 31.63 23.73 25.21 0.00 4.80
Turn Over Ratios
73 | P a g e
19. Aluminium Sector
India is considered to be the fifth largest producer of Aluminium in the world. It accounts to around 5% of
the total deposits and produces about 0.8 million tons of aluminium. It is estimated that if the country’s
aluminium consumption rate maintains, it’d be having the reserves for over 350 years. India has confirmed 3
billion tonnes of Bauxite reserves out of the global reserve of 65 billion tonnes. The worldwide alumina
production competence is around 58 million tonnes in which India has 2.7 million tonnes. Most of the
bauxite mines lie in Bihar, Karnataka and Orissa.
In India, the production of aluminium is highly concentrated and is in the hands of the following three
companies
 Bharat Aluminium Co. Ltd (BALCO)

 National Aluminium Co. Ltd (NALCO)
 Hindustan Aluminium Co. Ltd (HINDALCO)
India is the eighth leading producer of primary aluminium in the world. The Ministry of Mines,
Government of India puts the production target for the year 2007-08 at 1,237 KT, an increase of 84 KT from
previous year's 1,153 KT. The production of aluminium in India has grown substantially in last five years.
Production got a boost due to adding of extra smelting capacity in recent years and rising domestic demand
emanating from packaging, construction, automobiles and electrical sectors. India's contribution in global
aluminium production is less than 5 per cent despite having 7.5 per cent of the world's total bauxite deposits
and 7 per cent of bauxite production.
Features of Indian Aluminium Industry
 Highly concentrated industry with only five primary plants in the country.
 Controlled by two private groups and one public sector unit.
 Bayer-Hall-Heroult technology used by all producers.
 Electricity, coal and furnace oil are primary energy inputs.
 All plants have their own captive power units for cheaper and un-interrupted power supply.
 Energy cost is 40% of manufacturing cost for metal and 30% for rolled products.
 Plants have set internal target of 1 – 2% reduction in specific energy consumption in the next 5 – 8
years.
 Energy management is a critical focus in all the plants.
 Two plants have declared formal energy policy.
 Each plant has an Energy Management Cell.
74 | P a g e
e, the usage of aluminium is rising
y in the automobile and construction sector
l remains a main substitute because of its
wer cost. On the other side, copper has been
tituting aluminum’s usage in the power sector
gher conductivity. However, with properties
trength-to-weight ratio, durability, higher
sistance and relatively lower cost, aluminium
old its own. Thus the usage of aluminium is
ease over a long term period.
75 | P a g e
Industry : Aluminium
National
Aluminiu Ess Dee Hindalco Parekh
Manaksi
m Aluminiu Industrie Alumine
a Ltd
Company m Ltd. s Ltd. x Ltd.
Ltd.
AK Kumar Amitabh RN
Chairman Sudip Dutta
Srivastava Mangalam Parekh Sengupta
Market Cap (Rs Mn) 263522.64 14891.83 342898.1 5142.36 7044.27
Book Value (Rs.) 165.75 203.89 148.64 248.82 78.59
Annual Sales (in Cr.) 5,173.58 467.68 19,536.28 637.46 836.33
PAT (in Cr.) 814.22 92.43 1,915.63 46.29 24.78
Equity (in Cr.) 644.31 27.83 191.37 12.94 13.91
P/E 27.12 14.41 17.41 10.02 19.49
Face Value (Rs.) 10.00

10.00 1.00 10.00 2.00

Earnings Per Share
(Rs) 19.75 23.88 10.01 29.48 3.42
CEPS(Rs) 23.97 25.76 13.50 41.18 6.19
DPS(Rs) 5.00 2.00 1.35 2.50 2.20
Book
NAV/Share(Rs) 151.63 144.44 145.84 205.18 73.33
Tax Rate(%) 33.98 26.35 15.41 12.30 20.63
Margin Ratios
Core EBITDA
Margin(%) 31.87 24.08 12.91 17.00 7.77
EBIT Margin(%) 36.24 23.88 12.35 13.66 6.78
Pre Tax Margin(%) 34.76 21.19 11.00 10.32 2.96
PAT Margin (%) 22.95 15.61 9.31 9.05 2.35
Cash Profit Margin
(%) 27.86 16.83 12.55 12.65 4.23
Performance Ratios
ROA(%) 13.65 14.40 5.77 9.68 3.43
ROE(%) 13.65 17.87 7.42 15.43 4.62
ROCE(%) 21.55 22.03 7.66 14.60 9.89
Asset Turnover(x) 0.59 0.92 0.62 1.07 1.46
Sales/Fixed
Asset(x) 0.58 3.00 1.51 3.63 2.44
Working
Capital/Sales(x) 2.14 2.03 7.58 2.35 3.77
Efficiency Ratios
Fixed
Capital/Sales(x) 171.71 33.31 0.66 27.52 41.00
Receivable days 2.87 154.81 22.28 67.70 62.54
Inventory Days 50.32 16.81 88.58 62.32 40.66
76 | P a g e
Payable days 96.43 49.09 48.85 21.17 36.75
PER(x) 10.86 6.28 18.15 1.78 8.60
PCE(x) 8.94 5.82 13.46 1.28 4.75
Price/Book(x) 1.41 1.04 1.25 0.26 0.40
Yield(%) 2.33 1.33 0.74 4.75 7.48
EV/Net Sales(x) 2.14 1.28 2.10 0.59 0.38
EV/Core
EBITDA(x) 4.80 4.79 12.77 3.43 3.78
EV/EBIT(x) 5.45 5.04 16.12 4.33 5.45
EV/CE(x) 1.12 1.02 1.20 0.53 0.55
M Cap / Sales 2.70 1.04 1.78 0.16 0.21
Growth Ratio
Net Sales
Growth(%) 2.00 43.14 7.23 41.07 32.32
Core EBITDA
Growth(%) -18.79 34.51 -12.60 49.87 1.93
EBIT Growth(%) -20.54 33.08 -16.01 47.47 -14.54
PAT Growth(%) -22.02 7.70 -14.11 46.85 -41.83
EPS Growth(%) -22.00 7.66 -23.68 46.88 -41.85
Total
Debt/Equity(x) 0.00 0.24 0.28 0.59 0.35
Current Ratio(x) 2.82 5.74 1.63 4.75 3.98
Quick Ratio(x) 2.30 5.44 0.54 2.98 2.88
Interest Cover(x) 24.45 8.87 9.15 4.09 1.77
Total
Debt/Mcap(x) 0.00 0.25 0.18 3.07 0.85
Valuation Ratios
Liquidity ratios
Total
Debt/Equity(%) 0.00 0.24 0.28 0.59 0.35
Current Ratio(x) 2.82 5.74 1.63 4.75 3.98
Quick Ratio(x) 2.30 5.44 0.54 2.98 2.88
Interest Cover(x) 24.45 8.87 9.15 4.09 1.77
Total
Debt/Mcap(%) 0.00 0.25 0.18 3.07 0.85
GPM(%) 39.68 22.41 14.24 13.92 5.95
NPM(%) 22.95 15.61 9.31 9.05 2.35
Turn Over Ratios
Sales/Current
Assets 1.22 1.43 2.32 1.81 2.60
77 | P a g e
20. Shipping Sector
Indian shipping has the 14th largest fleet in the world as per deadweight tonnage. Indian shipping
fleet consists of around 515 vessels with a grt of 7.06 million and dwt of 11.5 million ones. The industry is
governed by 3 separate Acts viz. The Merchant Shipping Act, 1958, The Inland Vessels Act, 1917 and The
Coasting Vessels Act, 1838. While most of the vessels are registered under Merchant Shipping Act and dealt
within the sector, smaller barges and coastal vessels are governed by the latter two Acts, and lighterage or
barging industry comes under port sector. The industry has historically catered to only domestic shipping
requirements, although the private sector companies like Great Eastern Shipping Company and Essar
Shipping are increasingly getting involved in international cross trade. Notwithstanding this focus on Indian
trade, Indian shipowners’ share in the country’s overseas trade is hardly 30 per cent in volume terms. In
value terms, it is much lower to a meager 12 per cent of India’s total overseas shipping bill of USD 5.0
billion due to negligible share of Indian shipowners in the trade of high value goods like general cargo and
containers.
Shipping is not just about vessels and tonnage. Shipping capabilities of a nation are not solely measured in
terms of the quantum of tonnage under control. In a knowledge based economy, soft intangible parameters
like human capital, information technology and expertise are becoming increasingly important giving rise to
innumerable opportunities. India has already become the source of quality seafarers to global shipowners.
Indian shipping firms can rely on the inherent IT skills of Indians to play a pivotal role in IT activity
involved in international shipping and the country may come up as a business center for information
processing requirements of the international ship owners
78 | P a g e
ad
ilways
ways
79 | P a g e
Industry : Shipping
Essar Great
Shipping Shipping Eastern Great
Mercator
Corpn. Of Ports & Shipping Offshore
Lines Ltd.
India Ltd. Logistics Company Ltd.
Ltd. Ltd.
Keki M
Chairman S Hajara Shashi Ruia K M Sheth H K Mittal
Elavia
Market Cap (Rs Mn) 69679.3 62337.94 46988.98 14263.56 11799.6
Book Value (Rs.) 154.17 116.73 359.65 283.69 44.83
Annual Sales (in Cr.) 3,463.12 1,028.21 2,055.46 1,012.38 679.42
PAT (in Cr.) 376.91 90 395.75 176.18 6.4
Equity (in Cr.) 423.45 615.68 152.29 37.23 23.6
P/E 15.54 48.74 12.62 7.96 -
Dividend Yield (%) 3.95 - 2.59 0.65 0.4
Face Value (Rs.)
10.00 10.00 10.00 10.00 1.00

CEPS(Rs) 29.86 3.40 48.54 82.43 6.08
DPS(Rs) 6.50 0.00 8.00 2.50 0.20
Book NAV/Share(Rs) 146.62 115.63 352.69 276.53 44.66
Tax Rate(%) 10.80 -1.08 9.06 9.16 41.03
Margin Ratios
Core EBITDA Margin(%) 25.45 31.38 30.92 42.34 20.66
EBIT Margin(%) 26.87 29.93 30.03 29.81 29.57
Pre Tax Margin(%) 25.31 8.66 22.57 19.08 1.88
PAT Margin (%) 22.58 8.75 20.52 17.33 1.11
Performance Ratios
ROA(%) 11.93 0.90 4.61 5.84 0.25
ROE(%) 15.89 1.27 7.63 20.28 0.60
ROCE(%) 14.20 3.13 6.75 10.05 6.75
Asset Turnover(x) 0.53 0.10 0.22 0.34 0.23
Working Capital/Sales(x) 1.58 0.95 1.99 4.02 0.87
Efficiency Ratios
Receivable days 35.36 59.40 20.68 90.13 125.53
Inventory Days 6.72 5.76 8.45 2.70 11.10
Payable days 77.23 0.00 51.84 95.70 32.02
PER(x) 3.45 50.60 11.40 8.72 205.34
PCE(x) 2.57 21.74 6.06 4.96 9.15
Price/Book(x) 0.52 0.64 0.83 1.48 1.25
Yield(%) 8.47 0.00 2.72 0.61 0.36
80 | P a g e
EV/Net Sales(x) 0.69 7.40 3.57 3.76 3.68
EV/Core EBITDA(x) 1.95 17.82 7.39 8.76 6.89
EV/EBIT(x) 2.58 24.73 11.87 12.61 12.43
EV/CE(x) 0.33 0.74 0.75 1.13 0.84
M Cap / Sales 0.78 4.43 2.34 1.51 2.28
Growth Ratio
Net Sales Growth(%) 11.80 0.49 -34.39 12.54 -49.35
Core EBITDA
Growth(%) 16.82 5.07 -54.00 1.86 -34.96
EBIT Growth(%) 15.91 24.49 -63.46 -7.43 -48.24
PAT Growth(%) 15.58 -16.40 -71.43 -17.28 -96.47
EPS Growth(%) -22.96 -16.49 -71.63 -11.85 0
Current Ratio(x) 4.11 13.69 3.82 2.25 1.82
Quick Ratio(x) 4.04 13.49 3.71 2.20 1.79
Interest Cover(x) 17.22 1.41 4.02 2.78 1.07
Total Debt/Mcap(x) 0.76 0.68 0.82 1.52 1.12
Valuation Ratios
Liquidity ratios
Current Ratio(x) 4.11 13.69 3.82 2.25 1.82
Quick Ratio(x) 4.04 13.49 3.71 2.20 1.79
Interest Cover(x) 17.22 1.41 4.02 2.78 1.07
Total Debt/Mcap(%) 0.76 0.68 0.82 1.52 1.12
GPM(%) 34.02 20.28 40.75 32.21 25.68
NPM(%) 22.58 8.75 20.52 17.33 1.11
Turn Over Ratios
81 | P a g e

Sectoral Analysis of Indian Industry: PG Program in Finance

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Sectoral Analysis of Indian Industry: PG Program in Finance

Загружено:

Авторское право:

Доступные форматы

PG PROGRAM IN FINANCE

Market Cap (Rs Mn) 514483.46 363082.9 99110.2 previou34228.31

Cash Profit Margin (%) 8.53 12.05 7.81 10.40 11.67

Sales/Current Assets 3.28 3.38 1.94 3.58 2.19

*G-Generation, T-Transmission, D-Distribution

Porter’s 5 forces analysis:

Operational & Financial Ratios posses.

Particulars Mar 2010 Mar 2010 Mar 2009 Mar 2010 Mar 2010

Sales/Current Assets 1.04 0.99 0.38 1.58 0.98

Total Debt/Equity(x) 0.2 0.67 0.62 0.00 0.35

Total Debt/Equity(%) 0.20 0.67 0.62 0.00 0.35

Peer Group Comparison

Indian Hotels Hotel Leela Country Club Oriental

Particulars Mar 2010 Mar 2010 Mar 2010 Mar 2010 Dec 2009

Market Cap (Rs Mn) to 'alternative

Cash Profit Margin (%) 3.09 10.1 15.11 4.62

Fixed Capital/Sales(x) 126.55 125.28 0.94 0.69

Receivable days 47.16 80.55 77.75 112.41

Total Debt/Equity(%) 1.53 1.13 1.52 9.23

Current Ratio(x) 3.51 3.06 10.11 3.52

The Characteristics of Indian Petrochemical Industry:

Top Petrochemical Companies in India:

 Reliance Industries Ltd.

Porter’s 5 forces analysis:

Peer Group Comparison

Face Value (Rs.) 2.00 10.00 10.00

Particulars June 2010 Mar 2010 Mar 2010 Mar 2010 Mar 2010

 Jet Airways  IndiGo

Peer Group Comparison

Particulars Mar 2009 Mar 2010 Mar 2010 Mar 2009 Mar 2010

•The four biggest cement players in the

Bargaining power Rivalry among Bargaining power

•Licensing of coal & limestone

Peer Group Comparison

Market Cap (Rs Mn) 171129.53 193677.14 25081.97 27483.27 257031.27

Face Value (Rs.) 2.00 1.00 10.00 10.00

Particulars Dec 2009 Dec 2009 Mar 2010 Mar 2010 Mar 2010

BARGAIN IN G POWER OF High- There are public sector banks,

Peer Group Comparison

Particulars Mar 2010 Mar 2010 Mar 2010 Mar 2010 Mar 2010

IT: Success Factors

Peer Group Comparison

Particulars Mar-10 Mar-10 Mar-10 Mar-10 Mar-10

EBIT Margin(%) 35.35 23.94 25.2 27.69 26.14

Pre Tax Margin(%) 35.35 23.86 24.73 27.64 25.54

Cash Profit Margin (%) 31.04 22.78 23.81 26.42 26.7

Receivable days 57.27 86.87 71.82 55.95 96.39

Payable days 12.81 36.65 18.58 42.82 93.22

Net sales growth 4.32 30.65 6.58 2.86 1.29

core EBITDA GROWTH 11.75 21.92 49.05 23.09 32.52

EBIT Growth(%) 11.29 23.21 54.81 23.95 36.64

PAT Growth(%) -1.10 20.55 64.71 19.64 27.75

EPS Growth(%) -1.44 19.96 64.37 -40.27 27.01

Porter’s 5 forces analysis:

Particulars Mar 2010 Mar 2010 Mar 2010 Mar 2010 Mar 2010

13. Construction / Infrastructure.

Porter’s 5 forces analysis:

PAT (Rs. in Cr)

Dividend Yield (%) 0.64 0 0 0.25 0

Particulars Mar 2009 Mar 2009 Mar 2009 Mar 2010 Mar 2009

Face Value (Rs.)

Particulars Mar 2010 Dec 2009 Mar 2010 Mar 2010 Mar 2010

Porter’s 5 forces analysis: