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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532538 | NSE: ULTRACEMCO

UltraTech Cement Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:21 pm

Market Cap 3,28,376 Cr.
Current Price 11,375
High / Low12,138/8,544
Stock P/E50.0
Book Value 2,126
Dividend Yield0.62 %
ROCE15.1 %
ROE12.2 %
Face Value 10.0
PEG Ratio9.77

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for UltraTech Cement Ltd

Competitors of UltraTech Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 77.1 Cr. 23.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,28,376 Cr. 11,37512,138/8,54450.0 2,1260.62 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 22,341 Cr. 9451,058/70081.0 3020.26 %8.17 %5.63 % 1.00
The India Cements Ltd 11,039 Cr. 356386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,260 Cr. 180256/16236.7 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,919.68 Cr1,789.9635.16530.040.62%11.13%16.10%7.13

All Competitor Stocks of UltraTech Cement Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales11,83012,01712,98515,76715,16413,89315,52118,66217,73716,01216,74020,41918,070
Expenses8,5229,30210,56612,69512,06912,02813,18515,34014,68813,46113,48516,30515,030
Operating Profit3,3072,7152,4193,0733,0951,8652,3363,3223,0492,5513,2554,1143,039
OPM %28%23%19%19%20%13%15%18%17%16%19%20%17%
Other Income2051407125311014613012317717114673201
Interest326230182206216200215191211234262261256
Depreciation660677674703695708723762749798783815843
Profit before tax2,5271,9471,6342,4162,2931,1031,5272,4922,2671,6902,3553,1112,142
Tax %33%33%-5%-8%31%31%30%33%25%24%25%27%21%
Net Profit1,7001,3101,7102,6141,5827591,0631,6701,6901,2801,7752,2591,695
EPS in Rs58.9945.5059.1690.7854.8726.1836.6657.7158.4944.3961.5578.2258.77

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales20,51420,73023,30625,15325,37530,97941,46242,43044,72652,59963,24070,90871,241
Expenses15,67416,69518,88120,25220,16224,83434,11533,18433,15841,08452,62057,94058,282
Operating Profit4,8394,0354,4254,9015,2126,1457,3479,24611,56811,51410,62012,96912,959
OPM %24%19%19%19%21%20%18%22%26%22%17%18%18%
Other Income304322350464648242350651619669507567591
Interest2523615875666401,2381,7781,9921,4869458239681,013
Depreciation1,0231,1391,2031,3771,3481,8482,4512,7232,7002,7152,8883,1453,239
Profit before tax3,8672,8582,9863,4213,8723,3013,4685,1838,0018,5247,4169,4229,298
Tax %30%23%30%28%30%33%31%-11%32%14%32%26%
Net Profit2,6882,2132,1022,4802,7142,2242,4005,7515,4627,3345,0737,0047,009
EPS in Rs97.6680.4476.4790.3098.9080.9287.51199.40189.26254.42175.41242.65242.93
Dividend Payout %9%11%12%11%10%13%13%7%20%15%22%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-17.67%-5.02%17.98%9.44%-18.05%7.91%139.62%-5.03%34.27%-30.83%38.06%
Change in YoY Net Profit Growth (%)0.00%12.66%23.00%-8.55%-27.49%25.97%131.71%-144.65%39.30%-65.10%68.89%

UltraTech Cement Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:11%
3 Years:17%
TTM:4%
Compounded Profit Growth
10 Years:13%
5 Years:24%
3 Years:8%
TTM:15%
Stock Price CAGR
10 Years:16%
5 Years:23%
3 Years:14%
1 Year:33%
Return on Equity
10 Years:12%
5 Years:13%
3 Years:12%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:39 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital274274274274275275275289289289289289289
Reserves14,95516,90818,76721,67124,11726,10733,47638,75543,88650,14754,03659,93961,076
Borrowings7,3427,3329,82910,6168,47419,48025,33723,01921,71911,29911,05811,40316,964
Other Liabilities7,0107,6719,1838,6319,34311,28017,43817,15120,28222,07725,99829,16729,282
Total Liabilities29,58232,18538,05341,19342,20957,14176,52579,21486,17683,81191,380100,797107,611
Fixed Assets15,05018,10023,34325,30925,90439,71556,64557,15155,41255,48859,57962,87868,042
CWIP3,6012,1862,2501,4699211,5111,1539201,6874,7854,0406,8116,410
Investments4,7094,8624,5005,0956,6915,4472,9215,92912,1786,3367,2978,2497,579
Other Assets6,2227,0377,9619,3198,69310,46815,80615,21516,90017,20320,46422,85925,579
Total Assets29,58232,18538,05341,19342,20957,14176,52579,21486,17683,81191,380100,797107,611

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3,6183,4554,1904,5265,0053,8885,9568,97212,5009,2839,06910,898
Cash from Investing Activity +-4,362-2,342-2,144-3,673-2,5011,8661,165-4,192-8,8562,257-7,188-8,789
Cash from Financing Activity +715-949-2,110-844-2,535-5,735-6,757-5,076-4,356-12,498-1,631-1,926
Net Cash Flow-30164-638-3118364-295-712-958250183

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-3.00-3.00-5.00-6.00-3.00-13.00-18.00-14.00-10.000.00-1.001.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days242926282526252021212222
Inventory Days284251266203195226214234207256248255
Days Payable258252154142150165165188234269271260
Cash Conversion Cycle50281388970877466-69-017
Working Capital Days-15-2-42-47-23-17-16-25-26-21-29-25
ROCE %19%12%12%13%14%12%10%12%15%14%13%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.98%59.99%
FIIs15.74%14.03%13.12%14.06%14.11%14.77%15.81%16.65%18.20%17.74%18.15%17.95%
DIIs15.15%16.39%18.16%17.30%17.40%16.93%15.95%15.04%13.68%14.14%13.83%14.08%
Government0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%
Public9.00%9.48%8.62%8.50%8.35%8.14%8.09%8.11%7.95%7.92%7.82%7.75%
Others0.10%0.09%0.09%0.14%0.13%0.15%0.14%0.18%0.18%0.17%0.17%0.17%
No. of Shareholders3,31,3193,95,9724,33,1964,15,4033,83,9713,66,4373,49,2813,47,9043,42,4223,57,6273,53,5653,56,405

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Bluechip Fund2,150,6334.232509.34606,4722024-11-23254.61%
SBI Nifty 50 ETF2,098,5371.262448.55606,4722024-11-23246.02%
Kotak Flexicap Fund - Regular Plan1,800,0004.112100.22606,4722024-11-23196.8%
SBI BSE Sensex ETF1,508,5391.481759.15606,4722024-11-23148.74%
Axis Bluechip Fund691,3682.34806.68606,4722024-11-2314%
SBI Blue Chip Fund641,2611.52748.22606,4722024-11-235.74%
UTI Nifty 50 ETF606,4721.26707.63606,4722024-11-230%
UTI BSE Sensex ETF552,0231.48643.73606,4722024-11-23-8.98%
ICICI Prudential Balanced Advantage Fund519,8261.04606.53606,4722024-11-23-14.29%
ICICI Prudential Business Cycle Fund486,9985.21568.22606,4722024-11-23-19.7%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)243.05175.63254.64189.40199.55
Diluted EPS (Rs.)242.87175.54254.53189.33199.49
Cash EPS (Rs.)350.80275.64348.06282.69293.62
Book Value[Excl.RevalReserv]/Share (Rs.)2088.171883.691747.051530.591352.99
Book Value[Incl.RevalReserv]/Share (Rs.)2088.171883.691747.051530.591352.99
Revenue From Operations / Share (Rs.)2456.202190.581822.111549.481470.04
PBDIT / Share (Rs.)470.59385.29416.47426.19342.94
PBIT / Share (Rs.)361.64285.25322.42332.65248.61
PBT / Share (Rs.)325.62256.75289.70272.14179.60
Net Profit / Share (Rs.)241.85175.60254.01189.14199.29
NP After MI And SOA / Share (Rs.)242.65175.41254.42189.26199.40
PBDIT Margin (%)19.1517.5822.8527.5023.32
PBIT Margin (%)14.7213.0217.6921.4616.91
PBT Margin (%)13.2511.7215.8917.5612.21
Net Profit Margin (%)9.848.0113.9412.2013.55
NP After MI And SOA Margin (%)9.878.0013.9612.2113.56
Return on Networth / Equity (%)11.639.3214.5612.3614.74
Return on Capital Employeed (%)14.1212.1114.6114.6311.45
Return On Assets (%)6.945.548.766.337.26
Long Term Debt / Equity (X)0.080.090.100.300.44
Total Debt / Equity (X)0.170.180.200.400.54
Asset Turnover Ratio (%)0.730.710.600.540.54
Current Ratio (X)0.860.880.861.170.88
Quick Ratio (X)0.550.600.590.970.63
Inventory Turnover Ratio (X)1.371.461.411.311.25
Dividend Payout Ratio (NP) (%)15.6321.5714.526.866.61
Dividend Payout Ratio (CP) (%)10.7813.7410.604.594.48
Earning Retention Ratio (%)84.3778.4385.4893.1493.39
Cash Earning Retention Ratio (%)89.2286.2689.4095.4195.52
Interest Coverage Ratio (X)14.0313.5212.738.284.97
Interest Coverage Ratio (Post Tax) (X)8.297.168.594.753.89
Enterprise Value (Cr.)290900.97228788.60200424.86210253.91114868.67
EV / Net Operating Revenue (X)4.103.623.814.702.71
EV / EBITDA (X)21.4120.5716.6717.0911.60
MarketCap / Net Operating Revenue (X)3.973.483.624.352.21
Retention Ratios (%)84.3678.4285.4793.1393.38
Price / BV (X)4.674.053.784.402.41
Price / Net Operating Revenue (X)3.973.483.624.352.21
EarningsYield0.020.020.030.020.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of UltraTech Cement Ltd as of November 24, 2024 is: 13,049.01

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, UltraTech Cement Ltd is Undervalued by 14.72% compared to the current share price 11,375.00

Intrinsic Value of UltraTech Cement Ltd as of November 24, 2024 is: 13,717.09

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, UltraTech Cement Ltd is Undervalued by 20.59% compared to the current share price 11,375.00

Last 5 Year EPS CAGR: 5.12%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -24.00, which is a positive sign.
  2. The company has higher reserves (35,680.00 cr) compared to borrowings (14,144.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (40.46 cr) and profit (5.00 cr) over the years.
  1. The stock has a low average ROCE of 13.42%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 51.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in UltraTech Cement Ltd:
    1. Net Profit Margin: 9.84%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 14.12% (Industry Average ROCE: 11.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 11.63% (Industry Average ROE: 15.02%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 8.29
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.55
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 50 (Industry average Stock P/E: 21.09)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.17
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

UltraTech Cement Ltd. is a Public Limited Listed company incorporated on 24/08/2000 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L26940MH2000PLC128420 and registration number is 128420. Currently Company is involved in the business activities of Manufacture of cement, lime and plaster. Company’s Total Operating Revenue is Rs. 50663.49 Cr. and Equity Capital is Rs. 288.67 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cement'B' Wing, Ahura Centre, 2nd Foor, Mumbai Maharashtra 400093sharesutcl@adityabirla.com
http://www.ultratechcement.com
Management
NamePosition Held
Mr. Kumar Mangalam BirlaChairman
Mr. K K MaheshwariVice Chairman & Non Exe.Dire
Mr. K C JhanwarManaging Director
Mr. Atul DagaWholeTime Director & CFO
Mrs. Rajashree BirlaNon Executive Director
Mr. Arun AdhikariIndependent Director
Mrs. Alka BharuchaIndependent Director
Mr. Sunil DuggalIndependent Director
Mrs. Sukanya KripaluIndependent Director
Mr. S B MathurIndependent Director

FAQ

What is the latest intrinsic value of UltraTech Cement Ltd?

The latest intrinsic value of UltraTech Cement Ltd as on 24 November 2024 is ₹13049.01, which is 14.72% higher than the current market price of ₹11,375.00.

What is the Market Cap of UltraTech Cement Ltd?

The Market Cap of UltraTech Cement Ltd is 3,28,376 Cr..

What is the current Stock Price of UltraTech Cement Ltd as on 24 November 2024?

The current stock price of UltraTech Cement Ltd as on 24 November 2024 is 11,375.

What is the High / Low of UltraTech Cement Ltd stocks in FY 2024?

In FY 2024, the High / Low of UltraTech Cement Ltd stocks is 12,138/8,544.

What is the Stock P/E of UltraTech Cement Ltd?

The Stock P/E of UltraTech Cement Ltd is 50.0.

What is the Book Value of UltraTech Cement Ltd?

The Book Value of UltraTech Cement Ltd is 2,126.

What is the Dividend Yield of UltraTech Cement Ltd?

The Dividend Yield of UltraTech Cement Ltd is 0.62 %.

What is the ROCE of UltraTech Cement Ltd?

The ROCE of UltraTech Cement Ltd is 15.1 %.

What is the ROE of UltraTech Cement Ltd?

The ROE of UltraTech Cement Ltd is 12.2 %.

What is the Face Value of UltraTech Cement Ltd?

The Face Value of UltraTech Cement Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in UltraTech Cement Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE