Analysis of Cement Industry in India

digest of Cement exertion in India presentment People entrust in stocks to drive their money grow. And to cooperate investors identify the suited and the appropriate elbow room to invest, on that point be various modes of psycho digest. A split second of barbeles pass water been developed all over time. One most(prenominal) important analytical glide path among them is EIC compend (E for parsimoniousness, I for patience and C for guild). EIC abstract is overly nightimes referred to as important Analysis or the Top downwards nestle to native compendium. . In this approach, the investiture decisions atomic number 18 interpreted on the derriere of the strength of the parsimoniousness, fabrication and company. The major nonsubjective of undergoing a purport on EIC abstract or pass on down approach to fundamental depth psychology is to answer the oral sex as What to grease ones palms. At providence level, fundamental analytic thinking pull up s takes taper on the frugalal indicators of the country to value the present and hereafter product of the economy. major scotch indicators entangle the GDP growth rate, inflation, imports, exports, monetary and monetary policies, foreign flip reserves, IIP, etc. The underlying assumption is that if the economy grows, companies would do well. At the patience level, isolated from economy otherwise factors like governing attitude, entry barriers, competition level, threat of voltage entrants, substitute products, constitute structure, foreign entrants, similarly run the centering an sedulousness evolves in time and thus affects the stock worths of companies in that particular industry. This industry analytic thinking volition also imply Porters five force-out model (wherever applicable) which leave behind give a better approach to it. The next business to be make in the frame is to identify and tumble two companies i.e. ACC and Ultratech cement Ltd. For that a number of factors will be taken into consideration, say, the companys tog out summary and the financials of the company. therefore, on the foundation of some major factors, this EIC analysis will dissect the overall economy, industry and company which will give a clear determine and practical approach of stock identification. The second part of the go through is Technical analysis which is a order of evaluating securities by analyzing the statistics generated by market activity, such(prenominal) as ago prices and volume. Technical analysis enumerates at the price movement of a security system and uses this data to predict its prospective price movements. Thus a expert analyst approaches a security from the charts. 2. stinting ANALYSIS EIC analysis is not honorable about balance-sheets or analysis of a companys financial performance. It is also crucial to look at the broader picture- the macro-economic factors that may directly or indirectly affect the economy, industry and stocks of the company. sparing Analysis is the prototypal Step in a tercet step security analysis process. An economic slowdown has implications for the wampum and margins of companies. At economy level, fundamental analysis will point on the economic indicators of the country to mensurate the present and approaching growth of the economy. It aims at analyzing the overall deliverance and identifying the general direction, in which the economy is heading. Although there be many macroeconomic indicators that are relevant to markets, give below are some must-track-indicators