NSEI:ULTRACEMCO

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 24.05% per year

Earnings grew by 98.4% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has UltraTech Cement's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ULTRACEMCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

ULTRACEMCO

-2.2%

IN Basic Materials

-0.4%

IN Market


1 Year Return

28.9%

ULTRACEMCO

21.1%

IN Basic Materials

11.1%

IN Market

Return vs Industry: ULTRACEMCO exceeded the Indian Basic Materials industry which returned 21.1% over the past year.

Return vs Market: ULTRACEMCO exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

ULTRACEMCOIndustryMarket
7 Day-0.8%-2.2%-0.4%
30 Day-1.2%-0.9%-1.5%
90 Day7.5%6.9%3.3%
1 Year29.3%28.9%21.8%21.1%13.0%11.1%
3 Year20.2%19.3%9.4%7.6%25.3%18.6%
5 Year49.1%47.1%34.5%30.2%35.4%23.1%

Price Volatility Vs. Market

How volatile is UltraTech Cement's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

33.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULTRACEMCO (₹4434.35) is trading above our estimate of fair value (₹2909.77)

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 (33.4x) compared to the Basic Materials industry average (15.3x).

PE vs Market: ULTRACEMCO is poor value based on its PE Ratio (33.4x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: ULTRACEMCO is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ULTRACEMCO is overvalued based on its PB Ratio (3.6x) compared to the IN Basic Materials industry average (0.9x).


Next Steps

Future Growth

How is UltraTech Cement forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULTRACEMCO's forecast earnings growth (24.1% per year) is above the savings rate (6.5%).

Earnings vs Market: ULTRACEMCO's earnings (24.1% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ULTRACEMCO's revenue (10.3% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: ULTRACEMCO's revenue (10.3% 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 (13.3%).


Next Steps

Past Performance

How has UltraTech Cement performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULTRACEMCO has high quality earnings.

Growing Profit Margin: ULTRACEMCO's current net profit margins (9.3%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: ULTRACEMCO's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: ULTRACEMCO's earnings growth over the past year (98.4%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: ULTRACEMCO earnings growth over the past year (98.4%) exceeded the Basic Materials industry 24%.


Return on Equity

High ROE: ULTRACEMCO's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is UltraTech Cement's financial position?


Financial Position Analysis

Short Term Liabilities: ULTRACEMCO's short term assets (₹157.7B) do not cover its short term liabilities (₹175.4B).

Long Term Liabilities: ULTRACEMCO's short term assets (₹157.7B) do not cover its long term liabilities (₹272.2B).


Debt to Equity History and Analysis

Debt Level: ULTRACEMCO's debt to equity ratio (75.1%) is considered high.

Reducing Debt: ULTRACEMCO's debt to equity ratio has increased from 48.1% to 75.1% over the past 5 years.

Debt Coverage: ULTRACEMCO's debt is well covered by operating cash flow (28.6%).

Interest Coverage: ULTRACEMCO's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet

Inventory Level: ULTRACEMCO has a high level of physical assets or inventory.

Debt Coverage by Assets: ULTRACEMCO's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

0.26%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: ULTRACEMCO's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: ULTRACEMCO's dividend (0.26%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


Stability and Growth of Payments

Stable Dividend: ULTRACEMCO is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: ULTRACEMCO is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ULTRACEMCO is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ULTRACEMCO's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Kailash Jhanwar (62yo)

0.08yrs

Tenure

₹18,907,000

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 ($USD264.38K) is below average for companies of similar size in the Indian market ($USD997.10K).

Compensation vs Earnings: Insufficient data to compare Kailash's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Kailash Jhanwar
MD & Whole-time Director0.08yrs₹18.91m0.00039% 5.0m
Atul Daga
CFO & Wholetime Director3.7yrs₹26.90m0.0029% 37.6m
Kumar Birla
Chairman0yrs₹155.65m0.0087% 111.2m
Rajashree Birla
Non-Executive Director15.8yrs₹13.30m0.014% 184.9m
Krishna Maheshwari
Non-Executive Vice Chairman0.08yrs₹129.62mno data
Arun Adhikari
Independent Director6.2yrs₹2.00mno data
Sunil Mathur
Independent Director11.4yrs₹3.15mno data
O. Puranmalka
Non-Executive Director3.8yrs₹450.00k0.021% 268.6m
Alka Bharucha
Independent Director3.7yrs₹2.10mno data
Sukanya Kripalu
Independent Director5.3yrs₹1.90mno data

3.8yrs

Average Tenure

63yo

Average Age

Experienced Board: ULTRACEMCO's board of directors are considered experienced (3.8 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 company bio, 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: ₹1.280t
  • Shares outstanding: 288.62m
  • Website: https://www.ultratechcement.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532538BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2004
ULTRACEMCONSEI (National Stock Exchange of India)YesEquity SharesININRAug 2004
ULC14BDL (Bourse de Luxembourg)SPON GDR EA REP 1 ORD INR10 144ALUUSDAug 2004
UCLQ.FOTCPK (Pink Sheets LLC)GDR EACH REPR 1 ORD INR10'REGS'USUSDSep 2004
ULCL1BDL (Bourse de Luxembourg)GDR EACH REPR 1 ORD INR10'REGS'LUUSDSep 2004

Biography

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 concrete, 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 Limited exports its products to the United Arab Emirates, Bahrain, Bangladesh, and Sri Lanka. In addition, it offers construction products and value-added services that include technical advice during construction, construction cost calculator, vaastu consultancy, product training in various categories, and technical meets for customers. The company was formerly known as UltraTech CemCo Limited and changed its name to UltraTech Cement Limited in October 2004. The company was incorporated in 2000 and is based in Mumbai, India. UltraTech Cement Limited is a subsidiary of Grasim Industries Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:59
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.