Valuation of Select Companies in Cement Industry Listed In National Stock Exchange Limited Based on Market Capitalisation

Abstract

The economic progress and productive efficiency of an economy is governed to a large extent by the effective mobilization and distribution of savings into productive channels of investment. The company is not a single entity which is supported by the economy as well as the industry in which the company operates. The ability of the corporate sector to mobilize funds through capital markets depends on efficient functioning of the stock exchanges. The extent, to which security prices reflect the real worth of companies, reflects the efficiency of the market. The main objective of doing corporate valuation is to take part in company’s equity capital as a shareholder of a company. Before investing in any company, the company’s financials through its income statement and balance sheet, market share, competition, competitive advantage, scalability of business etc., has to be studied well apart from general economic conditions of a nation. The end result for performing the valuation analysis is to give suggestion to the investor whether the company stocks are worth for investing and identifying the possibility of expected yield out of it. Here select scrips in the cement industry have been taken for valuation analysis.