Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of UltraTech Cement Ltd

About the Company - UltraTech Cement Ltd

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. Sunil DuggalIndependent Director
Mr. Arun AdhikariIndependent Director
Mrs. Sukanya KripaluIndependent Director
Mr. S B MathurIndependent Director
Mrs. Alka BharuchaIndependent Director

UltraTech Cement Ltd. Share Price Update

Share PriceValue
Today₹9,957.25
Previous Day₹9,997.60

Basic Stock Data of UltraTech Cement Ltd

Market Cap 2,86,638 Cr.
Current Price 9,929
High / Low10,526/6,991
Stock P/E44.7
Book Value 1,945
Dividend Yield0.38 %
ROCE12.9 %
ROE9.63 %
Face Value 10.0

Data Source: screener.in

Competitors of UltraTech Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Panyam Cements & Mineral Industries Ltd 139 Cr. 173173/11.3 1730.00 %31.1 %% 10.0
Ambuja Cements Ltd 1,19,248 Cr. 601615/32436.6 1660.41 %12.6 %10.8 % 2.00
Anjani Portland Cement Ltd 631 Cr. 215232/140 1040.00 %3.74 %17.9 % 10.0
JK Lakshmi Cement Ltd 11,109 Cr. 9441,000/60726.5 2470.40 %14.2 %13.1 % 5.00
Rain Industries Ltd 6,939 Cr. 206220/140 2180.48 %1.93 %10.1 % 2.00
Industry Average27,613.20 Cr427.8012.62181.600.26%12.71%10.38%5.80

UltraTech Cement Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales12,26214,40611,83012,01712,98515,76715,16413,89315,52118,66217,73716,01216,740
Expenses9,16010,7158,5229,30210,56612,69512,06912,02813,18515,34014,68813,46113,485
Operating Profit3,1023,6903,3072,7152,4193,0733,0951,8652,3363,3223,0492,5513,255
OPM %25%26%28%23%19%19%20%13%15%18%17%16%19%
Other Income2602420514071253110146130123177171146
Interest356377326230182206216200215191211234262
Depreciation674698660677674703695708723762749798783
Profit before tax2,3322,6392,5271,9471,6342,4162,2931,1031,5272,4922,2671,6902,355
Tax %32%33%33%33%-5%-8%31%31%30%33%25%24%25%
Net Profit1,5851,7741,7001,3101,7102,6141,5827591,0631,6701,6901,2801,775
EPS in Rs54.8961.5058.9945.5059.1690.7854.8726.1836.6657.7158.4944.3961.55

UltraTech Cement Ltd Quarterly Chart

UltraTech Cement Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales18,55120,51420,73023,30625,15325,37530,97941,46242,43044,72652,59963,24069,152
Expenses14,35715,67416,69518,88120,25220,16224,83434,11533,18433,15841,08452,62056,974
Operating Profit4,1944,8394,0354,4254,9015,2126,1457,3479,24611,56811,51410,62012,177
OPM %23%24%19%19%19%21%20%18%22%26%22%17%18%
Other Income371304322350464648242350651619669507617
Interest2562523615875666401,2381,7781,9921,486945823898
Depreciation9631,0231,1391,2031,3771,3481,8482,4512,7232,7002,7152,8883,092
Profit before tax3,3453,8672,8582,9863,4213,8723,3013,4685,1838,0018,5247,4168,804
Tax %28%30%23%30%28%30%33%31%-11%32%14%32%
Net Profit2,3972,6882,2132,1022,4802,7142,2242,4005,7515,4627,3345,0736,415
EPS in Rs87.6997.6680.4476.4790.3098.9080.9287.51199.40189.26254.42175.41222.14
Dividend Payout %9%9%11%12%11%10%13%13%7%20%15%22%

UltraTech Cement Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)12.14%-17.67%-5.02%17.98%9.44%-18.05%7.91%139.62%-5.03%34.27%-30.83%
Change in YoY Net Profit Growth (%)0.00%-29.81%12.66%23.00%-8.55%-27.49%25.97%131.71%-144.65%39.30%-65.10%

UltraTech Cement Ltd Growth

Compounded Sales Growth
10 Years:12%
5 Years:15%
3 Years:14%
TTM:15%
Compounded Profit Growth
10 Years:7%
5 Years:16%
3 Years:-4%
TTM:10%
Stock Price CAGR
10 Years:18%
5 Years:21%
3 Years:18%
1 Year:37%
Return on Equity
10 Years:12%
5 Years:12%
3 Years:13%
Last Year:10%

UltraTech Cement Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital274274274274274275275275289289289289289
Reserves12,55014,95516,90818,76721,67124,11726,10733,47638,75543,88650,14754,03655,858
Borrowings5,8917,3427,3329,82910,6168,47419,48025,33723,01921,71911,29911,05811,459
Other Liabilities6,1817,0107,6719,1838,6319,34311,28017,43817,15120,28222,07725,99826,385
Total Liabilities24,89629,58232,18538,05341,19342,20957,14176,52579,21486,17683,81191,38093,991
Fixed Assets13,31415,05018,10023,34325,30925,90439,71556,64557,15155,41255,48859,57960,768
CWIP1,9403,6012,1862,2501,4699211,5111,1539201,6874,7854,0405,306
Investments3,5474,7094,8624,5005,0956,6915,4472,9215,92912,1786,3367,2976,341
Other Assets6,0956,2227,0377,9619,3198,69310,46815,80615,21516,90017,20320,46421,576
Total Assets24,89629,58232,18538,05341,19342,20957,14176,52579,21486,17683,81191,38093,991

UltraTech Cement Ltd Reserves and Borrowings Chart

UltraTech Cement Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3,4273,6183,4554,1904,5265,0053,8885,9568,97212,5009,2839,069
Cash from Investing Activity -3,050-4,362-2,342-2,144-3,673-2,5011,8661,165-4,192-8,8562,257-7,188
Cash from Financing Activity -353715-949-2,110-844-2,535-5,735-6,757-5,076-4,356-12,498-1,631
Net Cash Flow24-30164-638-3118364-295-712-958250

UltraTech Cement Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days212429262825262520212122
Inventory Days279284251266203195226214234207256248
Days Payable281258252154142150165165188234269271
Cash Conversion Cycle2050281388970877466-69-0
Working Capital Days-5-15-2-42-47-23-17-16-25-26-21-29
ROCE %19%19%12%12%13%14%12%10%12%15%14%13%

UltraTech Cement Ltd Financial Efficiency Indicators Chart

UltraTech Cement Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%
FIIs17.28%16.58%16.48%15.74%14.03%13.12%14.06%14.11%14.77%15.81%16.65%18.20%
DIIs13.74%14.39%14.51%15.15%16.39%18.16%17.30%17.40%16.93%15.95%15.04%13.68%
Government0.08%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%
Public8.87%8.95%8.91%9.00%9.48%8.62%8.50%8.35%8.14%8.09%8.11%7.95%
Others0.07%0.07%0.09%0.10%0.09%0.09%0.14%0.13%0.15%0.14%0.18%0.18%
No. of Shareholders3,04,2563,13,1023,23,8753,31,3193,95,9724,33,1964,15,4033,83,9713,66,4373,49,2813,47,9043,42,422

UltraTech Cement Ltd Shareholding Pattern Chart

No. of UltraTech Cement Ltd Shareholders

UltraTech Cement Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Flexicap Fund - Regular Plan22000005.032236.82
SBI Nifty 50 ETF20907721.242125.76
ICICI Prudential Bluechip Fund20613204.212095.82
SBI S&P BSE Sensex ETF14789381.431503.78
Axis Bluechip Fund9173922.85932.74
ICICI Prudential Balanced Advantage Fund6928261.3704.42
SBI Blue Chip Fund6412611.51651.99
UTI Nifty 50 ETF5789791.24588.67
UTI S&P BSE Sensex ETF5101081.43518.68
Aditya Birla Sun Life Frontline Equity Fund4933531.93501.61

UltraTech Cement Ltd ROCE Trend

UltraTech Cement Ltd EPS Trend

UltraTech Cement Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)175.63254.64189.40199.5584.02
Diluted EPS (Rs.)175.54254.53189.33199.4984.00
Cash EPS (Rs.)275.64348.06282.69293.62176.62
Book Value[Excl.RevalReserv]/Share (Rs.)1883.691747.051530.591352.991033.15
Book Value[Incl.RevalReserv]/Share (Rs.)1883.691747.051530.591352.991033.15
Revenue From Operations / Share (Rs.)2190.581822.111549.481470.041515.03
PBDIT / Share (Rs.)385.29416.47426.19342.94284.39
PBIT / Share (Rs.)285.25322.42332.65248.61195.15
PBT / Share (Rs.)256.75289.70272.14179.60126.27
Net Profit / Share (Rs.)175.60254.01189.14199.2987.38
NP After MI And SOA / Share (Rs.)175.41254.42189.26199.4087.51
PBDIT Margin (%)17.5822.8527.5023.3218.77
PBIT Margin (%)13.0217.6921.4616.9112.88
PBT Margin (%)11.7215.8917.5612.218.33
Net Profit Margin (%)8.0113.9412.2013.555.76
NP After MI And SOA Margin (%)8.0013.9612.2113.565.77
Return on Networth / Equity (%)9.3214.5612.3614.748.47
Return on Capital Employeed (%)12.1114.6114.6311.458.78
Return On Assets (%)5.548.766.337.263.14
Long Term Debt / Equity (X)0.090.100.300.440.72
Total Debt / Equity (X)0.180.200.400.540.85
Asset Turnover Ratio (%)0.710.600.540.540.63
Current Ratio (X)0.880.861.170.880.83
Quick Ratio (X)0.600.590.970.630.57
Inventory Turnover Ratio (X)1.461.411.311.251.43
Dividend Payout Ratio (NP) (%)21.5714.526.866.6114.46
Dividend Payout Ratio (CP) (%)13.7410.604.594.487.16
Earning Retention Ratio (%)78.4385.4893.1493.3985.54
Cash Earning Retention Ratio (%)86.2689.4095.4195.5292.84
Interest Coverage Ratio (X)13.5212.738.284.974.39
Interest Coverage Ratio (Post Tax) (X)7.168.594.753.892.41
Enterprise Value (Cr.)228788.60200424.86210253.91114868.67133421.16
EV / Net Operating Revenue (X)3.623.814.702.713.21
EV / EBITDA (X)20.5716.6717.0911.6017.08
MarketCap / Net Operating Revenue (X)3.483.624.352.212.64
Retention Ratios (%)78.4285.4793.1393.3885.53
Price / BV (X)4.053.784.402.413.87
Price / Net Operating Revenue (X)3.483.624.352.212.64
EarningsYield0.020.030.020.060.02

UltraTech Cement Ltd Profitability Ratios (%)

UltraTech Cement Ltd Liquidity Ratios

UltraTech Cement Ltd Liquidity Ratios (%)

UltraTech Cement Ltd Interest Coverage Ratios (X)

UltraTech Cement Ltd Valuation Ratios

Fair Value / Intrinsic Value of UltraTech Cement Ltd

Fair Value: ₹8404.28

The stock is overvalued by 15.36% compared to the current price ₹9929

*Investments are subject to market risks

Strength and Weakness of UltraTech Cement Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -22.33, which is a positive sign.
  2. The company has higher reserves (31,633.31 cr) compared to borrowings (13,296.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (36.31 cr) and profit (4.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 276.82 and average Dividend Yield of 16.39%.
  2. The stock has a low average ROCE of 13.75%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 52.08, which may not be favorable.

Should I Buy UltraTech Cement Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in UltraTech Cement Ltd:
    1. Net Profit Margin: 8.01%
      • 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: 12.11% (Industry Average ROCE: 10.12%)
      • 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. Interest Coverage Ratio (Post Tax): 7.16
      • 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.
    4. Quick Ratio: 0.60
      • 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.
    5. ✗ Stock P/E: 44.7 (Industry average Stock P/E: 22.46)
      • 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.
    6. ✓ Total Debt / Equity: 0.18
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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