Equity Analysis : Cement Sector


The project entitled “Comparative analysis of equity stocks” is mainly about doing analysis on stocks and suggesting the investor in making a decision to buy, sell or hold. The project consists of two types of analysis. One is fundamental analysis and other is technical analysis.

 Fundamental analysis consists of economy analysis, industry analysis and company analysis. Economy analysis includes economic factors like GDP, inflation rates, interest rates, exchange rates. Industry analysis consists of analysis of industry like SWOT, PEST analysis, recent developments in the industry etc. Company analysis includes analyzing the company’s ratios etc. Technical analysis mainly consists of charts, graphs etc. It takes the closing prices and plots the graphs. It is mainly used for short term purpose.

The project contains three cement stocks namely Madras cement, India cements, Ultra tech cements. The analysis is done on these three stocks to determine which one is better for investor. For each stock based upon the ratios I have recommended which stock to buy. Some investors look for sales of a company, some may look for dividend payout ratio. It again depends on investor. 

Based upon the ratios he can choose which stock to invest. If the investor prefers EPS then he can go for Ultra Tech Cements. Again if the investor looks for Dividend per share or Return on investment then he can again go for Ultra Tech Cements. When we come to dividend payout ratio, it is better to go for India cements. Based on Technical analysis it is again better to go for Ultra Tech Cement.

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