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  A Comparative staudy of C Industry: Pharmaceuticals and medicinesDebt to equity Industry AverageMajor Indian Pharmaceutical compnies and their capital structure2006-072007-082008-09Company name2007-082008-092009-102010-11 0.3380.280.305Sun pharmaceutical0.030.030.020.04GlaxoSmithKline0000Cipla0.150.2200.09Cadila0.81.060.670.51Dr. Reddy0.440.570.390.59 Industry: Motor vehicles and other transport equipmentsDebt to Equity Industry AverageMajor Indian Automobile compnies and their capital structure2006-072007-082008-09Company Name2007-082008-092009-102010-11 0.340.360.42Maruti0.110.070.070.020.81.061.120.81.346.734.291.72Mahindra and Mahindra0.60.770.330.23 Industry:Cement and cement productDebt to Equity Industry averageMajor Indian cement Companies and their capital structure2006-072007-082008-09Company Name2007-082008-092009-102010-11 0.790.640.64Ultratech0.650.590.350.39Ambuja0.070.050.030.01ACC0.070.10.080.08Shree Cement1.941.891.191.09Madras Cement1.711.951.651.61 Industry:ConstructionDebt to Equity Industry averageMajor Indian Construction companies and their capital structure 2006-072007-082008-09 Company name2007-082008-092009-102010-11 0.50.370.45Unitech3.792.690.620.6GMR Infra0.090.070.440.33Jaypee InfraNANA0.211.33DLF0.740.780.991.09Aashiyana Housing0.010.010.060 Industry:Software IndustryMajor Indian Software industries and their capital Structure2006-072007-082008-09Company Name2007-082008-092009-102020-11 0.050.110.12TCS0.010.010.010.01Infosys0000HCL0.010.150.280.18Small D/E signifies that the software industry on an avg requires very less Tata Motors  Mahindra Satyam000.020.01 Industry:Sugar Major Indian Sugar industries and their capital Structure 2006-072007-082008-09Company name2007-082008-092009-102020-11 0.871.231.27EID Parry1.511.441.591.38Shree Renuka Sugars1.481.061.892.77Bajaj Hindusthan3.661.952.223.05Balrampur Chini1.51.40.871.55¬†investment in real or capital assets and hence require less capital, making them able to finance their projects completely by equity  ¬†apital structure across industries and across companies 2011-12 0.02000.78After 2009 Cadila strategically decided to reduce fixed cost bearing debt funds0.65 2011-12 0.070.57 Standalone 1.18 Consolidated 0.26 2011-12 0.3Concious efforts from managers of ultra tech to reduce debt component by paying out short ter 0.01Ambuja finances itself through equity and very short term loans0.07We can see that the ACC management strives for a fixed D/E ratio0.931.03 2011-12 0.260.381.15Jaypee Infra is a young company and hence the debt cover is very high, so it can enjoy high D/E0.83Economic downturn has less effect on realty construction0.04Due to less capital required for housing construction debt is low, this seems to be a concious dec 2011-12 0.0100.11Post 2008, the civil construction has come down due to low investment in capital formation in In less debt cover for civil constructors and hence less debtCipla is incresing equity at a constant rate but the debt fluctuates freely, hence no order of debt GSK and Sun have a pecking order for minimum debt. The debt these companies take are also sh debts. The long term debt equity ratio is 0 always.Constant ratio of debt to equity targetting a fixed debt equity ratioDue to economic slowdown in India and less expenditure in infrastructure the D/E ratio has gon even for compnies once enjoying high D/E ratios. This is because there interest coverage has dec owing to poor performance hence contraing leverageMaruti Suzuki has an stable business in India which is they are not expanding by acquring other companies, hence they target a low and stable debt equity ratioM&M has acquired an industry avg debt to equity ratioDuring 2008-2010 Tata motors was in expansion phase and hence required a lot term debt, increasing ita debt equity ratios. Jaguar landrover was acquired in 20 also shows that whenever Tata motors have a requirement of short term capital, for loan (pecking order theory)  0.01 2011-12 1.774.631.91.42The companys with biggest market capital enjoy the maximum leverage benefits as it is easier fo raise debt than the small companies who are majorly funded by equity
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