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ULTR

UltraTech CementNSEI:ULTRACEMCO Stock Report

Market Cap

₹2.2t

7D

-2.0%

1Y

57.4%

Updated

25 Nov, 2021

Data

Company Financials +
ULTRACEMCO fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance2/6
Financial Health5/6
Dividends5/6

ULTRACEMCO Stock Overview

UltraTech Cement Limited, together with its subsidiaries, manufactures and sells cement and cement related products in India.

Rewards

Earnings are forecast to grow 17.24% per year

Earnings have grown 24.4% per year over the past 5 years

Pays a reliable dividend of 0.49%

Risk Analysis

No risks detected for ULTRACEMCO from our risk checks.

UltraTech Cement Competitors

Ambuja Cements

BSE:500425

₹775.7b

ACC

NSEI:ACC

₹448.0b

Dalmia Bharat

NSEI:DALBHARAT

₹370.2b

Ramco Cements

NSEI:RAMCOCEM

₹234.0b

Price History & Performance

Summary of all time highs, changes and price drops for UltraTech Cement
Historical stock prices
Current Share Price₹7,608.80
52 Week High₹8,269.00
52 Week Low₹4,770.00
Beta0.61
1 Month Change4.67%
3 Month Change0.57%
1 Year Change57.40%
3 Year Change88.79%
5 Year Change113.09%
Change since IPO2,824.21%

Recent News & Updates

Nov 16
Is UltraTech Cement Limited (NSE:ULTRACEMCO) Worth ₹8.1k Based On Its Intrinsic Value?

Is UltraTech Cement Limited (NSE:ULTRACEMCO) Worth ₹8.1k Based On Its Intrinsic Value?

Does the November share price for UltraTech Cement Limited ( NSE:ULTRACEMCO ) reflect what it's really worth? Today, we...

Sep 16
UltraTech Cement (NSE:ULTRACEMCO) Seems To Use Debt Rather Sparingly

UltraTech Cement (NSE:ULTRACEMCO) Seems To Use Debt Rather Sparingly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 03
UltraTech Cement (NSE:ULTRACEMCO) Is Experiencing Growth In Returns On Capital

UltraTech Cement (NSE:ULTRACEMCO) Is Experiencing Growth In Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Aug 22
Is Now The Time To Put UltraTech Cement (NSE:ULTRACEMCO) On Your Watchlist?

Is Now The Time To Put UltraTech Cement (NSE:ULTRACEMCO) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Aug 09
UltraTech Cement Limited's (NSE:ULTRACEMCO) Intrinsic Value Is Potentially 24% Below Its Share Price

UltraTech Cement Limited's (NSE:ULTRACEMCO) Intrinsic Value Is Potentially 24% Below Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of UltraTech Cement...

Shareholder Returns

ULTRACEMCOIN Basic MaterialsIN Market
7D-2.0%-1.6%-0.6%
1Y57.4%52.5%47.7%

Return vs Industry: ULTRACEMCO exceeded the Indian Basic Materials industry which returned 54.9% over the past year.

Return vs Market: ULTRACEMCO exceeded the Indian Market which returned 48% over the past year.

Price Volatility

Is ULTRACEMCO's price volatile compared to industry and market?
ULTRACEMCO volatility
ULTRACEMCO Average Weekly Movement3.0%
Basic Materials Industry Average Movement4.9%
Market Average Movement6.0%
10% most volatile stocks in IN Market9.0%
10% least volatile stocks in IN Market3.8%

Stable Share Price: ULTRACEMCO is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ULTRACEMCO's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200021,909Kailash Jhanwarhttps://www.ultratechcement.com

UltraTech Cement Limited, together with its subsidiaries, manufactures and sells cement and cement related products in India. It offers ordinary Portland cement, Portland blast furnace slag cement, Portland Pozzolana cement, white cement, and white cement-based products; and ready-mix concrete, including specialty concretes, as well as building products consisting AAC blocks, jointing mortars, and host of others in retail formats. The company also provides Super Stucco, a self-curing-no water curing plaster; Power Grout, a self-curing industrial grout for anchoring/grouting applications; Seal & Dry water proofing systems, which helps in water conservation in water storage tanks and canals; and C’retePro, a liquid system for mortar and concrete modifier, as well as repair mortars and concrete under the name of Basekrete and Microkrete.

UltraTech Cement Fundamentals Summary

How do UltraTech Cement's earnings and revenue compare to its market cap?
ULTRACEMCO fundamental statistics
Market Cap₹2.19t
Earnings (TTM)₹63.76b
Revenue (TTM)₹505.14b

34.4x

P/E Ratio

4.3x

P/S Ratio

Is ULTRACEMCO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ULTRACEMCO income statement (TTM)
Revenue₹505.14b
Cost of Revenue₹182.60b
Gross Profit₹322.54b
Expenses₹258.78b
Earnings₹63.76b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)221.02
Gross Margin63.85%
Net Profit Margin12.62%
Debt/Equity Ratio30.4%

How did ULTRACEMCO perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

17%

Payout Ratio

Valuation

Is UltraTech Cement undervalued compared to its fair value and its price relative to the market?

34.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULTRACEMCO (₹7608.8) is trading above our estimate of fair value (₹6882.83)

Significantly Below Fair Value: ULTRACEMCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ULTRACEMCO is poor value based on its PE Ratio (34.4x) compared to the Indian Basic Materials industry average (17.3x).

PE vs Market: ULTRACEMCO is poor value based on its PE Ratio (34.4x) compared to the Indian market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: ULTRACEMCO is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ULTRACEMCO is overvalued based on its PB Ratio (4.8x) compared to the IN Basic Materials industry average (1.4x).


Future Growth

How is UltraTech Cement forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULTRACEMCO's forecast earnings growth (17.2% per year) is above the savings rate (6.7%).

Earnings vs Market: ULTRACEMCO's earnings (17.2% per year) are forecast to grow slower than the Indian market (20% per year).

High Growth Earnings: ULTRACEMCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: ULTRACEMCO's revenue (10.9% per year) is forecast to grow slower than the Indian market (12.7% per year).

High Growth Revenue: ULTRACEMCO's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ULTRACEMCO's Return on Equity is forecast to be low in 3 years time (16.1%).


Past Performance

How has UltraTech Cement performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULTRACEMCO has high quality earnings.

Growing Profit Margin: ULTRACEMCO's current net profit margins (12.6%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: ULTRACEMCO's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: ULTRACEMCO's earnings growth over the past year (12.8%) is below its 5-year average (24.4% per year).

Earnings vs Industry: ULTRACEMCO earnings growth over the past year (12.8%) underperformed the Basic Materials industry 79.9%.


Return on Equity

High ROE: ULTRACEMCO's Return on Equity (13.8%) is considered low.


Financial Health

How is UltraTech Cement's financial position?


Financial Position Analysis

Short Term Liabilities: ULTRACEMCO's short term assets (₹198.7B) do not cover its short term liabilities (₹208.8B).

Long Term Liabilities: ULTRACEMCO's short term assets (₹198.7B) exceed its long term liabilities (₹161.6B).


Debt to Equity History and Analysis

Debt Level: ULTRACEMCO's net debt to equity ratio (15.7%) is considered satisfactory.

Reducing Debt: ULTRACEMCO's debt to equity ratio has reduced from 39.6% to 30.4% over the past 5 years.

Debt Coverage: ULTRACEMCO's debt is well covered by operating cash flow (77.2%).

Interest Coverage: ULTRACEMCO's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Dividend

What is UltraTech Cement current dividend yield, its reliability and sustainability?

0.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ULTRACEMCO's dividend (0.49%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).

High Dividend: ULTRACEMCO's dividend (0.49%) is low compared to the top 25% of dividend payers in the Indian market (1.46%).


Stability and Growth of Payments

Stable Dividend: ULTRACEMCO's dividends per share have been stable in the past 10 years.

Growing Dividend: ULTRACEMCO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.7%), ULTRACEMCO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ULTRACEMCO's dividends in 3 years are forecast to be well covered by earnings (17% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average board tenure


CEO

Kailash Jhanwar (64 yo)

1.83yrs

Tenure

₹86,100,000

Compensation

Mr. Kailash Chandra Jhanwar, B.Com, FCA, C.S (Inter) has been Managing Director of UltraTech Cement Limited since January 1, 2020 and has been its Whole-time Director since October 19, 2018. Mr. Jhanwar se...


CEO Compensation Analysis

Compensation vs Market: Kailash's total compensation ($USD1.15M) is about average for companies of similar size in the Indian market ($USD1.15M).

Compensation vs Earnings: Kailash's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: ULTRACEMCO's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

UltraTech Cement Limited's employee growth, exchange listings and data sources


Key Information

  • Name: UltraTech Cement Limited
  • Ticker: ULTRACEMCO
  • Exchange: NSEI
  • Founded: 2000
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹2.195t
  • Shares outstanding: 288.47m
  • Website: https://www.ultratechcement.com

Number of Employees


Location

  • UltraTech Cement Limited
  • Ahura Centre
  • 'B' Wing, 2nd floor
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/25 16:09
End of Day Share Price2021/11/25 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.