How to Select Share/ Stock from Share Market
Market Capitalization
Sales Growth
Free cash flow
Debt to Equity
Return on equity
Earnings Per Share
Moat
Meaning: Barrier to entry
Types of Moats
1. If company is having more than 50% then that market share is mot for the company
e.g.: Colgate
2. Economies of Scale- Size of Business
e.g.: Steel Companies
3. Brand Name
e.g.: Apple
4. Patents and Licence
e.g. Chemical and Pharma Companies
5. Deep- Pocket Mot / Balance sheet Mot
e.g.: Reliance Jio
Analyse the Stocks
Screener.in
Select Screen
Right side- Browse Sector
Select – as example- Cement
1
Top five as per Market Capitalization: Higher is better
Top five as per Sales Growth: Higher is better
Top five as per Free Cashflow: Higher is better
2
Top five as per Debt to Equity: Low is better
Top five as per return on equity: (How much is investment with respect to return): High is Better
Top five as per EPS: High is Better
3
Summary Sheet of Analysis
Ultra Tech 1 1
Ambuja 1 1
ACC 1 1
Shree Cement 1 0
Dalmia 0 0
Interpretation of Company based on Moat
UltraTech Cement Ltd
ABOUT
UltraTech Cement is engaged in the manufacturing and sale of Cement and Cement related
product primarily in India.
KEY POINTS
Manufacturing Capabilities
Co. has an installed capacity of 114 mtpa in India with a capacity utilization of 77%.
It has 23 integrated plants and 27 grinding units, seven bulk terminals, two white cement and
putty plants and over 100 ready mix concrete plants. Its operations span across India, the UAE,
Bahrain, Bangladesh and Sri Lanka. No region accounts for more than 25% of sales.
Ambuja Cements Ltd
ABOUT
Ambuja Cements Ltd (Founded in 1993) is one of India’s leading cement
manufacturers, with a presence in 80 countries, and a focus on cement, aggregate and
concrete. It is a part of Switzerland-based Lafarge Holcim Limited, a global
conglomerate with a 70-country presence
KEY POINTS
Product Offerings
The company manufactures and sells various types of cements such as portland
pozzolana Cement, ordinary portland cement, water repellent cements, etc. It also
produces other related products such as aggregates, concretes and concrete blocks.
Conclusion
Both UltraTech Cement Ltd and Ambuja Cement Ltd are running well so we can take positive
decision based on the prices of shares.
