FUNDAMENTAL OF FINANCIAL MANAGEMENT

(MBBA130L)

Vegi Shreyaash : M23BBAU0433

RATIO ANALYSIS ASSIGNMENT COMPANIES:

1. UADIPUR CEMENT WORKS LTD
2. JK CEMENTS LTD

School Of Management, Bennett University, Greater Noida, Uttar Pradesh, India

(October,2024)

UDAIPUR CEMENTS (2023-24)

1. PROFITABILITY RATIO:
 a) Gross Profit Margin Ratio:
= (Gross profit/ Revenue)* 100
Gross Profit= Revenue- COGS
= 1163.59- 164.98
= 998.61
Gross Profit Margin Ratio = (Gross profit/ Revenue)* 100
= (998.61/ 1163.59)*100
= 85.82%

b) Net Profit Margin Ratio:

=(Net income/ Revenue)*100
=(62.88/ 1163.59) * 100
= 5.40%

2. LIQUIDITY RATIO:
a) Current ratio = current asset/current liabilities Current
Asset:
= Inventories+ Investments+ Trade Receivables+ Cash &
cash equivalents+ Bank balance+ Others+ Other current
asset+ Current Tax asset
= 229.01+ 100.13+ 4.16+ 32.71+ 0.24+ 4.54+ 21.84+
2.05
= 394.68

Current Liabilities:
= Borrowings+ Lease liabilities+ Trade payable+ Other
financial liabilities+ Other current liabilities+ Provisions
= 98.13+ 0.49+ 88.2+ 81.09+ 60.00+ 0.44
 = 328.35

Current Ratio= 394.68/ 328.35

= 1.20: 1

b) Quick Ratio= Quick Asset/ Current Liabilities

Quick Asset:
= Current asset- Other current assets- Inventories-
Current tax asset

= 394.68- 229.01- 21.84- 2.05

= 141.78

Quick Ratio= 141.78/ 328.35

= 0.43: 1

3. SHAREHOLDER RETURN:
a) Return on equity=
(ROE)

(Net income/ Shareholder

equity)* 100

= (62.88/ 887.43)* 100

= 7.08%

b) Return on Capital Employed= (EBIT/ Capital

employed)* 100

Capital Employed= Total asset- Current Liabilities

= 2462.38- 328.35
 =2134.03

Return on capital employed= (196.89/ 2134.03)*100

= 9.23%

4. EFFICIENCY RATIO:
= a) Fixed asset turnoverRevenue/ Net fixed asset
ratio = 1163.59/ 2067.70
= 0.56 times

b) Total asset turnover ratio= Revenue/ Total asset

= 1163.59/ 2462.38
= 0.47 times
5. VALUATION RATIO: Market price per share/ EPS
a) Price earning=
ratio Market price per share=
Market capitalization/ Total no.
of outstanding share = 1811 cr / 56.05 cr
= 32.3

EPS= 1.25

Price earning ratio= 32.3/ 1.25

= 25.84 times
b) EV/ EBIT= Enterprise value/ EBIT

Enterprise value = Market Capitalization+ Total debt- Cash&

cash equivalents

= 1811+ 1574.95- 32.71

= 3053.24
EV/ EBIT= 3053.24/ 196.89
= 15.50 times

UDAIPUR CEMENTS (2022-23)

1. PROFITABILITY RATIO:
a) Gross Profit Margin Ratio:
= (Gross profit/ Revenue)* 100
Gross Profit= Revenue- COGS
= 1030.97- 129.32
= 901.65
Gross Profit Margin Ratio = (Gross profit/ Revenue)* 100
= (901.65/ 1030.97)*100
= 87.45%

b) Net Profit Margin Ratio:

=(Net income/ Revenue)*100
 =(35.10/ 1030.97) * 100
= 3.40%

2. LIQUIDITY RATIO:
a) Current ratio = current asset/current liabilities
Current Asset:
= Inventories+ Investments+ Trade Receivables+ Cash
& cash equivalents+ Bank balance+ Others+ Other
current asset+ Current Tax asset
= 141.19+ 4.91+ 3.96+ 0.23+ 1.86+ 46.25+ 1.25
= 199.65

Current Liabilities:
= Borrowings+ Lease liabilities+ Trade payable+ Other
financial liabilities+ Other current liabilities+ Provisions
= 129.78+ 2.72+ 71.34+ 113.97+ 83.25+ 0.82
= 401.88

Current Ratio= 199.65/ 401.88

= 0.49: 1

b) Quick Ratio= Quick Asset/ Current Liabilities

Quick Asset:
= Current asset- Other current assets- Inventories-
Current tax asset
= 199.65- 141.19- 46.25- 1
= 10.96
 Quick Ratio= 10.96/ 401.88
= 0.027: 1

Net 3. SHAREHOLDERincome/ Shareholder

RETURN: equity)* 100
a) Return on equity (
(ROE)= = (35.10/345.81)* 100
= 10.15%

b) Return on Capital Employed= (EBIT/ Capital

employed)* 100

Capital Employed= Total asset- Current Liabilities

= 1795.34- 401.88
=1393.46

Return on capital employed= (135.04/ 1393.46)*100

= 9.89%

4. EFFICIENCY RATIO:
= a) Fixed asset turnoverRevenue/ Net fixed asset
ratio = 1030.97/ 1595.69
= 0.64 times

b) Total asset turnover ratio= Revenue/ Total asset

= 1030.97/ 1795.34
= 0.57 times
 5. VALUATION RATIO:
a) Price earning= Market price per share/ EPS
ratio
Market price per share=
Market capitalization/ Total no. of outstanding share = 810
cr / 31.14 cr
= 26.01

EPS= 1.15

Price earning ratio= 26.01/ 1.15

= 22.61 times
b) EV/ EBIT= Enterprise value/ EBIT

Enterprise value = Market Capitalization+ Total debt- Cash&

cash equivalents

= 810+ 1449.53- 3.96

= 2255.57

EV/ EBIT= 2255.57/ 135.04

= 16.70 times
 JK CEMENTS (2023-24)

1. PROFITABILITY RATIO:
a) Gross Profit Margin Ratio:
= (Gross profit/ Revenue)* 100
Gross Profit= Revenue- COGS
= 10918.05- 1618.94
= 9299.11
Gross Profit Margin Ratio = (Gross profit/ Revenue)* 100
= (9299.11/ 10918.05)*100
= 85.17%

b) Net Profit Margin Ratio:

=(Net income/ Revenue)*100
=(829.60/ 10918.05) * 100
= 7.59%

2. LIQUIDITY RATIO:
a) Current ratio = current asset/current liabilities
Current Asset:
= Inventories+ Investments+ Trade Receivables+ Cash &
cash equivalents+ Bank balance+ Other financial asset+
Other current asset+ Current Tax asset+ Asset sale

= 1067.53+ 99.83+ 460.40+ 97.20+ 680.46+ 1308.45+

47.20+ 297.19+ 11.90
 = 4070.16

Current Liabilities:
= Borrowings+ Lease liabilities+ Trade payable+ Other
financial liabilities+ Other current liabilities+ Provisions
= 1000.74+ 10.25+ 208.47+ 600+ 265.82+
842.58+103.84
= 3032.40

Current Ratio= 4070.16/ 3032.40

= 1.34: 1

b) Quick Ratio= Quick Asset/ Current Liabilities

Quick Asset:
= Current asset- Other current assets- Inventories-
Current tax asset- Asset classified as sale

= 4070.16- 297.19- 1067.53- 47.20- 11.90

= 2646.34

Quick Ratio= 2646.34/ 3032.40

= 0.87: 1

3. SHAREHOLDERNet income/ Shareholder

RETURN: equity)* 100
a) Return on equity (
(ROE)= = (829.60/ 5353.39)* 100
= 15.49%

b) Return on Capital Employed= (EBIT/ Capital

employed)* 100
 Capital Employed= Total asset- Current Liabilities
= 14284.55- 3032.40
=11252.15

Return on capital employed= (1703.78/ 11252.15)*100

= 15.14%

4. EFFICIENCY RATIO:
= a) Fixed asset turnoverRevenue/ Net fixed asset
ratio = 10918.05/ 10214.39
= 1.068 times

b) Total asset turnover ratio= Revenue/ Total asset

= 10918.05/ 14284.55
= 0.76 times

Market price per share/ EPS

5. VALUATION RATIO:
a) Price earning=
Market price per share=
ratio Market capitalization/ Total
no. of outstanding share = 31501 cr / 7.7268 cr
= 4076.83

EPS= 107.50

Price earning ratio= 4076.83/ 107.50

= 37.92 times
b) EV/ EBIT= Enterprise value/ EBIT

Enterprise value = Market Capitalization+ Total debt-

Cash& cash equivalents

= 31501+ 8931.16- 97.20

= 40334.96

EV/ EBIT= 40334.96/ 1703.78

= 23.67 times

JK CEMENTS (2022-23)

1. PROFITABILITY RATIO:
a) Gross Profit Margin Ratio:
= (Gross profit/ Revenue)* 100
= (Gross profit/ Revenue)* 100
Gross Profit= Revenue- COGS
= 9310.25- 1418.55
= 7891.7
Gross Profit Margin Ratio = (Gross profit/ Revenue)* 100
= (7891.7/ 9310.25)*100
= 85.73%
 b) Net Profit Margin Ratio:
=(Net income/ Revenue)*100
=(505.98/ 9310.25) * 100
= 5.43%

2. LIQUIDITY RATIO:
a) Current ratio = current asset/current liabilities
Current Asset:
= Inventories+ Investments+ Trade Receivables+ Cash
& cash equivalents+ Bank balance+ Other financial
asset+ Other current asset+ Current Tax asset+ Asset
sale
= 863.54+ 70.82+ 410.76+ 239.15+ 574.06+ 792.16+
35.69+ 517.55+ 8.04
= 3511.77

Current Liabilities:
= Borrowings+ Lease liabilities+ Trade payable+ Other
financial liabilities+ Other current liabilities+ Provisions
= 816.04+ 9.65+ 97.84+ 655.37+ 253.75+ 729.14+
90.89
= 2652.68

Current Ratio= 3511.77/ 2652.68

= 1.32: 1

b) Quick Ratio= Quick Asset/ Current Liabilities

Quick Asset:
 = Current asset- Other current assets- Inventories-
Current tax asset- Asset classified as sale

= 3511.77- 863.54- 35.69- 517.55- 8.04

= 2086.95

Quick Ratio= 2086.95/ 2652.68

= 0.78: 1

3. SHAREHOLDER RETURN:
a) Return on equity (ROE)= (Net income/ Shareholder
equity)* 100

= (505.98/ 4639.69)* 100

= 10.90%

b) Return on Capital Employed= (EBIT/ Capital

employed)* 100

Capital Employed= Total asset- Current Liabilities

= 12823.33- 2652.68
=10170.65

Return on capital employed= (1703.78/ 11252.15)*100

= 10.91%

4. EFFICIENCY RATIO:
= a) Fixed asset turnoverRevenue/ Net fixed asset
ratio = 9310.25/ 9311.56
= 0.99 times
b) Total asset turnover ratio= Revenue/ Total asset
= 9310.25/ 12823.33
= 0.726 times
5. VALUATION RATIO: Market price per share/ EPS
a) Price earning=
ratio Market price per share=
Market capitalization/ Total no.
of outstanding share = 22587 cr / 7.7268 cr
= 2923.19

EPS= 65.06

Price earning ratio= 2923.19/ 65.06

= 44.93 times

b) EV/ EBIT= Enterprise value/ EBIT

Enterprise value = Market Capitalization+ Total debt- Cash&

cash equivalents

= 22587+ 8183.64- 239.15

= 30531.49

EV/ EBIT= 30531.49/ 1109.97

= 27.5 times
 INTRA COMPANY COMPARISON
UDAIPUR CEMENT WORKS LTD
RATIO NAME UDAIPUR UDAIPUR
CEMENTS CEMENTS
(2022-23) (2023-24)
1) PROFITABILITY RATIOS

a) Gross profit ratio 87.45% 85.82%

b) Net profit ratio 3.40 % 5.40 %

2) LIQUIDITY RATIOS
0.49:1 1.20:1
a) Current Ratio 0.027:1 0.43:1
b) Quick Ratio

3) SHAREHOLDERS RETURN
7.08 %
a) Return on Equity (ROE) 10.15 %
b) Return on capital 9.23 %
Employed 9.69%
(ROCE)
4) EFFICIENCY RATIOS

a) Fixed asset turnover

Ratio 0.64 times 0.56 times
b) Total asset turnover ratio
0.57 times 0.47 times

5) VALIDATION RATIOS
22.61 times 25.84 times
a) Price Earnings Ratio 16.70 times 15.50 times
b) EV/EBIT

Intra-Company Ratio Analysis for Udaipur Cements

Intra-company ratio analysis involves comparing the financial ratios of a single company
over different time periods. This helps us to identify trends and changes in the company's
financial performance.

Analysis of Udaipur Cements Financial Ratios

1. Profitability Ratios
• Gross Profit Ratio: The ratio has slightly decreased from 87.45% to 85.82%. This
could indicate a slight increase in cost of goods sold or a decrease in selling prices.
• Net Profit Ratio: The ratio has significantly increased from 3.40% to 5.40%. This
indicates an improvement in overall profitability. It could be due to factors such as
increased sales, reduced expenses, or better control over costs.
2. Liquidity Ratios
• Current Ratio: The ratio has significantly improved from 0.49:1 to 1.20:1. This
indicates a significant improvement in the company's short-term liquidity position.
• Quick Ratio: The ratio has also improved from 0.027:1 to 0.43:1. This shows that the
company has a better ability to meet its short-term obligations with its most liquid
assets.
3. Shareholders' Return Ratios
• Return on Equity (ROE): The ratio has decreased from 10.15% to 7.08%. This
indicates a decline in the company's ability to generate returns for its shareholders.
• Return on Capital Employed (ROCE): The ratio has also decreased from 9.69% to
9.23%, indicating a slight decline in the efficiency of capital utilization.
4. Efficiency Ratios
• Fixed Asset Turnover Ratio: The ratio has slightly decreased from 0.64 times to 0.56
times. This means the company is generating less sales per unit of fixed assets.
 • Total Asset Turnover Ratio: The ratio has also decreased from 0.57 times to 0.47
times. This shows a decline in the company's efficiency in utilizing its total assets to
generate sales.
5. Validation Ratios
• Price Earnings Ratio (P/E Ratio): The ratio has slightly increased from 22.61 times
to 25.84 times. This indicates that the market is valuing the company's earnings at a
higher multiple.
• Enterprise Value to Earnings Before Interest and Tax (EV/EBIT): The ratio has
slightly decreased from 16.70 times to 15.50 times. This suggests a potential decrease
in the company's valuation relative to its earnings.

Overall Observations
• The company has shown mixed results in profitability, with an improvement in net
profit but a decline in gross profit.
• The liquidity position has significantly improved.
• The company's efficiency in utilizing its assets has decreased.  The market valuation
of the company has slightly increased.

JK CEMENTS LTD
RATIO NAME JK JK
CEMENTS CEMENTS
(2022-23) (2023-24)
1) PROFITABILITY RATIOS
85.73% 85.17%
a) Gross profit ratio 5.43 % 7.59 %
b) Net profit ratio

2) LIQUIDITY RATIOS
1.32:1 1.34:1
a) Current ratio 0.78:1 0.87:1
b) Quick Ratio

3) SHAREHOLDERS
RETURN 10.90 % 15.49 %

a) Return on equity (ROE) 10.91% 15.14 %

b) Return on capital
Employed
(ROCE)
4) EFFICIENCY RATIOS

a) Fixed asset turnover

Ratio 0.99 times 1.068 times
b) Total asset turnover
ratio 0.726 times 0.76 times

5) VALIDATION RATIOS
44.93 times 37.92 times
a) Price earnings Ratio 27.50 times 23.67 times
b) EV/EBIT

Intra-Company Ratio Analysis for JK Cements

Intra-company ratio analysis involves comparing the financial ratios of a single company
over different time periods. This helps us to identify trends and changes in the company's
financial performance.
Analysis of JK Cements Financial Ratios
1. Profitability Ratios
• Gross Profit Ratio: The ratio has slightly decreased from 85.73% to 85.17%. This
could indicate a slight increase in cost of goods sold or a decrease in selling prices.
• Net Profit Ratio: The ratio has significantly increased from 5.43% to 7.59%. This
indicates an improvement in overall profitability. It could be due to factors such as
increased sales, reduced expenses, or better control over costs.
2. Liquidity Ratios
• Current Ratio: The ratio has slightly improved from 1.32:1 to 1.34:1. This indicates
a slight improvement in the company's short-term liquidity position.
• Quick Ratio: The ratio has also improved from 0.78:1 to 0.87:1. This shows that the
company has a better ability to meet its short-term obligations with its most liquid
assets.
3. Shareholders' Return Ratios
• Return on Equity (ROE): The ratio has increased from 10.91% to 15.14%. This
indicates an improvement in the company's ability to generate returns for its
shareholders.
• Return on Capital Employed (ROCE): The ratio has also increased, indicating
better utilization of the company's capital.
4. Efficiency Ratios
• Fixed Asset Turnover Ratio: The ratio has increased from 0.99 times to 1.068 times.
This means the company is generating more sales per unit of fixed assets.
 • Total Asset Turnover Ratio: The ratio has slightly increased from 0.726 times to
0.76 times. This shows a slight improvement in the company's efficiency in utilizing
its total assets to generate sales.
5. Validation Ratios
• Price Earnings Ratio (P/E Ratio): The ratio has decreased from 44.93 times to 37.92
times. This indicates that the market is valuing the company's earnings at a lower
multiple.
• Enterprise Value to Earnings Before Interest and Tax (EV/EBIT): The ratio has
also decreased from 27.50 times to 23.67 times. This suggests a potential decrease in
the company's valuation relative to its earnings.

Overall Observations
• The company has shown improvement in profitability and efficiency.
• The liquidity position has also improved.
• The market valuation of the company has decreased.

INTER COMPANY COMPARISON

2022-23
RATIO NAME UDAIPUR CEMENTS (2022- JK CEMENTS (2022-
23) 23)

1) PROFITABILITY RATIOS

a) Gross profit ratio 87.45% 85.73%

b) Net profit ratio 3.40 % 5.43 %

2) LIQUIDITY RATIOS
0.49:1 1.32:1
a) Current ratio 0.027:1 0.78:1
b) Quick Ratio

3) SHAREHOLDERS RETURN
10.15 % 10.90 %
a) Return on equity (ROE)
b) Return on capital 9.69 % 10.91 %
Employed (ROCE)
4) EFFICIENCY RATIOS

a) Fixed asset turnover

Ratio 0.64 times 0.99 times
b) Total asset turnover
0.57 times 0.726 times
ratio

5) VALIDATION RATIOS
22.61 times 44.93 times
a) Price earnings Ratio 16.70 times 27.50 times
b) EV/EBIT

Inter-Company Ratio Analysis: Udaipur Cements vs. JK Cements

This analysis will compare the financial performance of Udaipur Cements and JK Cements
based on the given ratios for the fiscal year 2022-23.

1. Profitability Ratios:
• Gross Profit Ratio: Udaipur Cements has a slightly higher gross profit ratio
(87.45%) compared to JK Cements (85.73%). This indicates better cost control and
potentially higher pricing power for Udaipur Cements.
• Net Profit Ratio: JK Cements has a significantly higher net profit ratio (5.43%)
compared to Udaipur Cements (3.40%). This suggests that JK Cements is more
efficient in managing its overall expenses and generating profits.
2. Liquidity Ratios:
• Current Ratio: JK Cements has a significantly higher current ratio (1.32:1)
compared to Udaipur Cements (0.49:1). This indicates that JK Cements has a stronger
short-term liquidity position and can better meet its short-term obligations.
• Quick Ratio: Similarly, JK Cements has a much higher quick ratio (0.78:1) compared
to Udaipur Cements (0.027:1). This suggests that JK Cements has a better ability to
meet its immediate cash obligations.
2. Shareholders' Return Ratios:
• Return on Equity (ROE): Both companies have similar ROE figures, with JK
Cements slightly ahead (10.90%) compared to Udaipur Cements (10.15%). This
indicates that both companies are generating comparable returns for their
shareholders.
• Return on Capital Employed (ROCE): Both companies have similar ROCE figures,
with JK Cements slightly ahead (10.91%) compared to Udaipur Cements (9.69%).
This suggests that both companies are utilizing their capital efficiently to generate
returns.
2. Efficiency Ratios:
 • Fixed Asset Turnover Ratio: JK Cements has a higher fixed asset turnover ratio
(0.99 times) compared to Udaipur Cements (0.64 times). This indicates that JK
Cements is more efficient in utilizing its fixed assets to generate sales.
• Total Asset Turnover Ratio: JK Cements also has a higher total asset turnover ratio
(0.726 times) compared to Udaipur Cements (0.57 times). This suggests that JK
Cements is more efficient in utilizing its overall assets to generate sales.
2. Validation Ratios:
• Price Earnings Ratio (P/E Ratio): JK Cements has a significantly higher P/E ratio
(44.93 times) compared to Udaipur Cements (22.61 times). This indicates that the
market values JK Cements' earnings at a higher premium, potentially reflecting higher
growth expectations or perceived value.
• EV/EBIT: JK Cements also has a higher EV/EBIT ratio (27.50 times) compared to
Udaipur Cements (16.70 times). This suggests that the market values JK Cements'
overall business at a higher premium, potentially reflecting higher growth
expectations or perceived value.

Overall Comparison
Based on the analysis, JK Cements appears to have a stronger overall financial performance
compared to Udaipur Cements. JK Cements has a better liquidity position, higher
efficiency in utilizing assets, and a higher valuation from the market. However, both
companies have similar profitability and return on capital ratios.

2023-24
RATIO NAME UDAIPUR CEMENTS JK CEMENTS (2023-
(2023-24) 24)

1) PROFITABILITY RATIOS

a) Gross profit ratio 85.82% 85.17%

b) Net profit ratio 5.40 % 7.59 %
2) LIQUIDITY RATIOS

a) Current ratio 1.20:1 1.34:1

b) Quick Ratio 0.431:1 0.87:1
3) SHAREHOLDERS RETURN

a) Return on equity
(ROE) 7.08 % 15.49 %
b) Return on capital
9.22 % 15.14 %
Employed (ROCE)

4) EFFICIENCY RATIOS

a) Fixed asset turnover

Ratio 0.56 times 1.068 times
b) Total asset turnover
0.472 times 0.764 times
ratio

5) VALIDATION RATIOS

a) Price earnings Ratio 25.84 times 37.92 times

b) EV/EBIT 15.50 times 23.67 times

Inter-Company Ratio Analysis: Udaipur Cements vs. JK Cements

This analysis will compare the financial performance of Udaipur Cements and JK
Cements based on the given ratios for the fiscal year 2023-24.

1. Profitability Ratios:
• Gross Profit Ratio: Both companies have similar gross profit ratios, with JK
Cements slightly ahead (85.17%) compared to Udaipur Cements (85.82%). This
indicates comparable cost control and pricing power for both companies.
• Net Profit Ratio: JK Cements has a significantly higher net profit ratio (7.59%)
compared to Udaipur Cements (5.40%). This suggests that JK Cements is more
efficient in managing its overall expenses and generating profits.
2. Liquidity Ratios:
• Current Ratio: JK Cements has a slightly higher current ratio (1.34:1) compared
to Udaipur Cements (1.20:1). This indicates that JK Cements has a slightly
stronger short-term liquidity position and can better meet its short-term
obligations.
• Quick Ratio: JK Cements also has a higher quick ratio (0.87:1) compared to
Udaipur Cements (0.43:1). This suggests that JK Cements has a better ability to
meet its immediate cash obligations.
3. Shareholders' Return Ratios:
• Return on Equity (ROE): JK Cements has a significantly higher ROE (15.49%)
compared to Udaipur Cements (7.08%). This indicates that JK Cements is
generating significantly higher returns for its shareholders.
 • Return on Capital Employed (ROCE): JK Cements has a significantly higher
ROCE (15.14%) compared to Udaipur Cements (9.22%). This suggests that JK
Cements is utilizing its capital more efficiently to generate returns.
4. Efficiency Ratios:
• Fixed Asset Turnover Ratio: JK Cements has a significantly higher fixed asset
turnover ratio (1.068 times) compared to Udaipur Cements (0.56 times). This
indicates that JK Cements is much more efficient in utilizing its fixed assets to
generate sales.
• Total Asset Turnover Ratio: JK Cements also has a higher total asset turnover
ratio (0.764 times) compared to Udaipur Cements (0.472 times). This suggests
that JK Cements is more efficient in utilizing its overall assets to generate sales.
5. Validation Ratios:
• Price Earnings Ratio (P/E Ratio): JK Cements has a significantly higher P/E
ratio (37.92 times) compared to Udaipur Cements (25.84 times). This indicates
that the market values JK Cements' earnings at a higher premium, potentially
reflecting higher growth expectations or perceived value.
• EV/EBIT: JK Cements also has a higher EV/EBIT ratio (23.67 times) compared
to Udaipur Cements (15.50 times). This suggests that the market values JK
Cements' overall business at a higher premium, potentially reflecting higher
growth expectations or perceived value.

Overall Comparison
Based on the analysis, JK Cements appears to have a significantly stronger overall
financial performance compared to Udaipur Cements. JK Cements has better
profitability, liquidity, efficiency, and a higher market valuation.

Summary of Inter and Intra Company Analysis

Intra-Company Analysis:
• Udaipur Cements:
o Improved liquidity position
o Mixed results in profitability (increased net profit,
decreased gross profit)
o Decreased efficiency in asset utilization o Slightly
increased market valuation  JK Cements:
o Improved profitability o Improved liquidity
position o Increased efficiency in asset utilization o
Increased market valuation
Inter-Company Analysis (2022-23):
• JK Cements has stronger liquidity, efficiency, and market valuation
compared to Udaipur Cements.
• Both companies have similar profitability and return on capital
ratios.
Inter-Company Analysis (2023-24):
• JK Cements has significantly stronger performance in profitability,
liquidity, efficiency, and market valuation compared to Udaipur
Cements.

Overall, JK Cements appears to be a stronger company with better

financial performance across various metrics.

Key Takeaways:
• JK Cements has consistently shown stronger financial performance
compared to Udaipur Cements in both intra-company and
intercompany analyses.
• Investors may want to consider JK Cements as a potentially better
investment option due to its superior financial performance.
• Further analysis is needed to understand the underlying reasons for
the differences in performance between the two companies.