ANALYSIS OF THE CEMENT INDUSTRY'S LIQUIDITY AND SOLVENCY IN THE INDIAN MARKET

Abstract

This study examines the liquidity and solvency of the top 10 cement companies in India, providing insights into their financial stability and ability to meet short-term and long-term obligations. The Indian cement industry, vital for the country’s infrastructure and economic development, faces challenges related to fluctuating market conditions, raw material costs, and regulatory pressures. By analysing liquidity ratios such as current ratio and quick ratio, and solvency ratios including debt to equity ratio and interest coverage ratio, the study highlights key financial strengths and weaknesses across the sector. The findings reveal variations in financial stability among the companies, with firms like UltraTech Cement Ltd. showing strong liquidity and solvency, while others like Heidelberg Cement India Ltd. face challenges in managing debt levels. This analysis provides valuable insights for investors, stakeholders, and policymakers, emphasizing the importance of maintaining financial health in a competitive market.