Evaluate Ambuja Cements Ltd , along with that direct competitor Ultratech, using data available to you for three financial years by using the multiples approach. Analyze it based on the following parameters: 1) P/E ratio 2) Price / sales ratio What are your observations based on the above?

Three year balancesheet & P&L of Ambuja and UTCL from Moneycontrol.com

Sample solution for other Industry

		2017	2016	2015	2017	2016	2015
Price/Share		79.81	68.87	72.83	137.8	110.78	96.06
Total Shares		1.39	1.42	1.1	2.69	2.73	2.77
Sales		29.71	28.83	20.26	76.45	71.89	70.07
Sales/share		21.37	20.30	18.42	28.42	26.33	25.30
Net income		4.02	3.53	2.67	1.3	16.4	15.4
EPS		2.89	2.49	2.43	0.48	6.01	5.56
P/E		27.60	27.70	30.00	285.14	18.44	17.28
P/Sales ratio		3.73	3.39	3.95	4.85	4.21	3.80