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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of UltraTech Cement Ltd

Basic Stock Data

Last Updated: June 12, 2024, 11:17 am

Market Cap 3,17,857 Cr.
Current Price 11,010
High / Low11,010/7,941
Stock P/E45.0
Book Value 2,086
Dividend Yield0.35 %
ROCE15.3 %
ROE12.3 %
Face Value 10.0
PEG Ratio11.24

Competitors of UltraTech Cement Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Birla Corporation Ltd 12,123 Cr. 1,5741,802/1,06129.2 8670.16 %8.99 %6.57 % 10.0
J K Cements Ltd 33,432 Cr. 4,3274,575/3,00042.1 6950.35 %15.7 %15.8 % 10.0
Shree Digvijay Cement Co. Ltd 1,632 Cr. 111124/75.718.6 25.92.71 %34.1 %24.9 % 10.0
Andhra Cements Ltd 892 Cr. 97.1139/76.0 32.20.00 %6.33 %27.0 % 10.0
NCL Industries Ltd 1,078 Cr. 238259/18011.4 1891.26 %15.9 %11.6 % 10.0
Industry Average16,551.73 Cr1,570.7715.82417.330.48%12.30%15.87%7.41

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales14,40611,83012,01712,98515,76715,16413,89315,52118,66217,73716,01216,74020,419
Expenses10,7158,5229,30210,56612,69512,06912,02813,18515,34014,68813,46113,48516,305
Operating Profit3,6903,3072,7152,4193,0733,0951,8652,3363,3223,0492,5513,2554,114
OPM %26%28%23%19%19%20%13%15%18%17%16%19%20%
Other Income242051407125311014613012317717114673
Interest377326230182206216200215191211234262261
Depreciation698660677674703695708723762749798783815
Profit before tax2,6392,5271,9471,6342,4162,2931,1031,5272,4922,2671,6902,3553,111
Tax %33%33%33%-5%-8%31%31%30%33%25%24%25%27%
Net Profit1,7741,7001,3101,7102,6141,5827591,0631,6701,6901,2801,7752,259
EPS in Rs61.5058.9945.5059.1690.7854.8726.1836.6657.7158.4944.3961.5578.22

Last Updated: June 10, 2024, 3:59 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 1:53 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales20,51420,73023,30625,15325,37530,97941,46242,43044,72652,59963,24070,908
Expenses15,67416,69518,88120,25220,16224,83434,11533,18433,15841,08452,62057,940
Operating Profit4,8394,0354,4254,9015,2126,1457,3479,24611,56811,51410,62012,969
OPM %24%19%19%19%21%20%18%22%26%22%17%18%
Other Income304322350464648242350651619669507567
Interest2523615875666401,2381,7781,9921,486945823968
Depreciation1,0231,1391,2031,3771,3481,8482,4512,7232,7002,7152,8883,145
Profit before tax3,8672,8582,9863,4213,8723,3013,4685,1838,0018,5247,4169,422
Tax %30%23%30%28%30%33%31%-11%32%14%32%26%
Net Profit2,6882,2132,1022,4802,7142,2242,4005,7515,4627,3345,0737,004
EPS in Rs97.6680.4476.4790.3098.9080.9287.51199.40189.26254.42175.41242.65
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%

Growth

Compounded Sales Growth
10 Years:13%
5 Years:11%
3 Years:17%
TTM:12%
Compounded Profit Growth
10 Years:13%
5 Years:24%
3 Years:8%
TTM:40%
Stock Price CAGR
10 Years:15%
5 Years:20%
3 Years:19%
1 Year:35%
Return on Equity
10 Years:12%
5 Years:13%
3 Years:12%
Last Year:12%

Last Updated: June 13, 2024, 8:05 am

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

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

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-15-2-42-47-23-17-16-25-26-21-293
ROCE %19%12%12%13%14%12%10%12%15%14%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%59.96%
FIIs16.58%16.48%15.74%14.03%13.12%14.06%14.11%14.77%15.81%16.65%18.20%17.74%
DIIs14.39%14.51%15.15%16.39%18.16%17.30%17.40%16.93%15.95%15.04%13.68%14.14%
Government0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05%
Public8.95%8.91%9.00%9.48%8.62%8.50%8.35%8.14%8.09%8.11%7.95%7.92%
Others0.07%0.09%0.10%0.09%0.09%0.14%0.13%0.15%0.14%0.18%0.18%0.17%
No. of Shareholders3,13,1023,23,8753,31,3193,95,9724,33,1964,15,4033,83,9713,66,4373,49,2813,47,9043,42,4223,57,627

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Flexicap Fund - Regular Plan2,200,0005.032236.82493,3532024-06-13345.93%
SBI Nifty 50 ETF2,090,7721.242125.76493,3532024-06-13323.79%
ICICI Prudential Bluechip Fund2,061,3204.212095.82493,3532024-06-13317.82%
SBI S&P BSE Sensex ETF1,478,9381.431503.78493,3532024-06-13199.77%
Axis Bluechip Fund917,3922.85932.74493,3532024-06-1385.95%
ICICI Prudential Balanced Advantage Fund692,8261.3704.42493,3532024-06-1340.43%
SBI Blue Chip Fund641,2611.51651.99493,3532024-06-1329.98%
UTI Nifty 50 ETF578,9791.24588.67493,3532024-06-1317.36%
UTI S&P BSE Sensex ETF510,1081.43518.68493,3532024-06-133.4%
Aditya Birla Sun Life Frontline Equity Fund493,3531.93501.61493,3532024-06-130%

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) (%)0.0021.5714.526.866.61
Dividend Payout Ratio (CP) (%)0.0013.7410.604.594.48
Earning Retention Ratio (%)0.0078.4385.4893.1493.39
Cash Earning Retention Ratio (%)0.0086.2689.4095.4195.52
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 (%)0.0078.4285.4793.1393.38
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: 11,586.42

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.

Undervalued: 5.24% compared to the current price 11010

Intrinsic Value: 12,050.37

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 9.45% compared to the current price ₹11010

Last 5 Year EPS CAGR: 4.00%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -21.67, which is a positive sign.
  2. The company has higher reserves (33,563.67 cr) compared to borrowings (13,909.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (37.92 cr) and profit (4.67 cr) over the years.
  1. The stock has a low average ROCE of 12.17%, 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: %)
      • 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: %)
      • 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: 45.0 (Industry average Stock P/E: )
      • 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

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

FAQ

What is the latest fair value of UltraTech Cement Ltd?

The latest fair value of UltraTech Cement Ltd is ₹11586.42.

What is the Market Cap of UltraTech Cement Ltd?

The Market Cap of UltraTech Cement Ltd is 3,17,857 Cr..

What is the current Stock Price of UltraTech Cement Ltd as on 21 June 2024?

The current stock price of UltraTech Cement Ltd as on 21 June 2024 is ₹11,010.

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 11,010/7,941.

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

The Stock P/E of UltraTech Cement Ltd is 45.0.

What is the Book Value of UltraTech Cement Ltd?

The Book Value of UltraTech Cement Ltd is 2,086.

What is the Dividend Yield of UltraTech Cement Ltd?

The Dividend Yield of UltraTech Cement Ltd is 0.35 %.

What is the ROCE of UltraTech Cement Ltd?

The ROCE of UltraTech Cement Ltd is 15.3 %.

What is the ROE of UltraTech Cement Ltd?

The ROE of UltraTech Cement Ltd is 12.3 %.

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