Ultratech Cement Limited
UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. A USD 8.4 billion building solutions powerhouse, UltraTech is the largest manufacturer of grey cement and ready mix concrete (RMC) and one of the largest manufacturers of white cement in India. It is the third largest cement producer in the world, excluding China. UltraTech is the only cement company globally (outside of China) to have 100+ MTPA of cement manufacturing capacity in a single country. The Company’s business operations span UAE, Bahrain, Sri Lanka and India.
Key Products
- Grey cement products,
- White cement products,
- Ready mix concrete solutions,
- Waterproofing products,
- Dry mix mortars
- UltraTech Crack Filler
Shareholding Pattern
–PUBLIC GROUP
–PROMOTER GROUP
–Employee Trust
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 70,908 | 63,240 | 52,599 |
| Sales Growth % | 12.13% | 20.23% | 17.60% |
| Expenses | 57,940 | 52,620 | 41,084 |
| Operating Profit | 12,969 | 10,620 | 11,514 |
| OPM % | 18% | 17% | 22% |
| Net Profit | 7,004 | 5,073 | 7,334 |
| EPS in Rs | 242.65 | 175.41 | 254.42 |
Synopsis of Financials
- Increase in sales due to higher revenue from contracts with customers, including the sale of manufactured products, traded products, and services..
- Capex of INR2,000 crores in the current year, aiming for INR8,000-9,000 crores for the full year.
- Renewable power capacity expected to reach 40-45% by the end of this year and 60% by ’26, ’27.
Final Outlook
Ultratech Cement offers a compelling investment opportunity for long-term investors. Despite facing challenges in the current year, the company maintains a healthy dividend payout of 21.8% and is trading at a relatively low book value of 4.77 times, indicating potential undervaluation. While its return on equity over the last 3 years has been low at 12.3%, Ultratech Cement’s strategic focus on sustainability, capacity expansion, and adaptability to market dynamics positions it for growth. These factors, coupled with its market positioning, suggest that investing in Ultratech Cement shares for the long term could yield favorable returns. UltraTech Cement crossed ₹3 lakh crore market capitalisation. Japanese brokerage firm Nomura upgraded UltraTech Cement stock from ‘neutral’ to ‘buy’ and raised the target price to ₹11,500 apiece. UltraTech Cement share price may rise another 16% led by market share gains. UltraTech Cement’s timely capacity expansion and increase in capacity utilization has helped the company gain considerable market share.
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