NSEI:ULTRACEMCO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with moderate 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

-0.3%

ULTRACEMCO

-1.6%

IN Basic Materials

-0.3%

IN Market


1 Year Return

2.3%

ULTRACEMCO

3.0%

IN Basic Materials

3.8%

IN Market

Return vs Industry: ULTRACEMCO matched the Indian Basic Materials industry which returned 3% over the past year.

Return vs Market: ULTRACEMCO underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

ULTRACEMCOIndustryMarket
7 Day-0.3%-1.6%-0.3%
30 Day-3.9%-1.1%1.6%
90 Day2.3%-1.7%7.6%
1 Year2.6%2.3%3.6%3.0%5.9%3.8%
3 Year25.2%24.2%16.4%14.4%35.4%28.5%
5 Year65.8%63.6%42.0%37.5%38.1%25.2%

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?

33.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ULTRACEMCO (₹4126.35) is trading above our estimate of fair value (₹1094.53)

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 (33.9x) compared to the Basic Materials industry average (15.7x).

PE vs Market: ULTRACEMCO is poor value based on its PE Ratio (33.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: ULTRACEMCO is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: ULTRACEMCO is overvalued based on its PB Ratio (3.4x) 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 10 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ULTRACEMCO's forecast earnings growth (21.6% per year) is above the savings rate (7.6%).

Earnings vs Market: ULTRACEMCO's earnings (21.6% per year) are forecast to grow faster than the Indian market (18.1% per year).

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

Revenue vs Market: ULTRACEMCO's revenue (10.9% per year) is forecast to grow slower than the Indian market (11.5% 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 (13%).


Next Steps

Past Performance

How has UltraTech Cement performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ULTRACEMCO has high quality earnings.

Growing Profit Margin: ULTRACEMCO's current net profit margins (8.5%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: ULTRACEMCO's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: ULTRACEMCO's earnings growth over the past year (75.4%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: ULTRACEMCO earnings growth over the past year (75.4%) exceeded the Basic Materials industry 13.6%.


Return on Equity

High ROE: ULTRACEMCO's Return on Equity (9.5%) 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 (3.7x 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?

0.28%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: ULTRACEMCO's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: ULTRACEMCO's dividend (0.28%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


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

What is the CEO of UltraTech Cement's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average board tenure


CEO

Krishna Maheshwari (64yo)

3.6yrs

Tenure

₹129,616,000

Compensation

Mr. Krishna Kishore Maheshwari, M.Com., F.C.A., serves as a Managing Director of Ultratech Cement Limited at Grasim Industries Limited. Mr. Maheshwari has been Managing Director of Grasim Industries at Adi ...


CEO Compensation Analysis

Compensation vs Market: Krishna's total compensation ($USD1.81M) is above average for companies of similar size in the Indian market ($USD1.14M).

Compensation vs Earnings: Krishna's compensation has been consistent with company performance over the past year.


Board Age and Tenure

3.6yrs

Average Tenure

63yo

Average Age

Experienced Board: ULTRACEMCO's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell₹896,118,04015 Nov 19
IGH Holdings Private Ltd
EntityCompany
Shares216,111
Max Price₹4,174.49
Sell₹976,441,49913 Nov 19
Aditya Marketing & Manufacturing Private Ltd, Asset Management Arm
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Shares234,313
Max Price₹4,184.85
Sell₹1,027,105,49611 Nov 19
Aditya Marketing & Manufacturing Private Ltd, Asset Management Arm
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Shares250,000
Max Price₹4,110.96
Sell₹186,915,38708 Nov 19
Aditya Marketing & Manufacturing Private Ltd, Asset Management Arm
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Shares45,200
Max Price₹4,135.30
Sell₹49,822,65908 Nov 19
Aditya Marketing & Manufacturing Private Ltd, Asset Management Arm
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Shares12,000
Max Price₹4,151.89
Sell₹1,139,574,36107 Nov 19
Aditya Marketing & Manufacturing Private Ltd, Asset Management Arm
EntityCompany
Shares271,798
Max Price₹4,194.00
Sell₹184,856,56805 Nov 19
Aditya Marketing & Manufacturing Private Ltd, Asset Management Arm
EntityCompany
Shares44,800
Max Price₹4,138.57
Sell₹325,609,95331 Oct 19
Aditya Marketing & Manufacturing Private Ltd, Asset Management Arm
EntityCompany
Shares87,000
Max Price₹4,174.42
Sell₹2,398,62027 Dec 18
Harendra Singh
EntityIndividual
Shares600
Max Price₹3,997.70
Buy₹599,551,74426 Dec 18
Ultratech Employee Welfare Trust
EntityCompany
Shares151,022
Max Price₹4,009.25
Buy₹208,467,47024 Dec 18
Ultratech Employee Welfare Trust
EntityCompany
Shares51,000
Max Price₹4,098.29

Ownership Breakdown

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


Management Team

  • Krishna Maheshwari (64yo)

    MD & Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹129.62m
  • Atul Daga (54yo)

    CFO & Wholetime Director

    • Tenure: 3.4yrs
    • Compensation: ₹26.90m
  • Kailash Jhanwar (62yo)

    Deputy MD

    • Tenure: 1.1yrs
    • Compensation: ₹18.91m
  • S. Chatterjee

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹11.70m
  • Pragnya Ram (74yo)

    Group Executive President of Corporate Communication & CSR

    • Tenure: 0yrs
  • M. Agarwal (52yo)

    Executive President of Corporate Finance Division

    • Tenure: 0yrs
    • Compensation: ₹3.15m
  • Vivek Agrawal (56yo)

    Group Executive President & Chief Marketing Officer

    • Tenure: 0yrs
  • Ramesh Mitragotri

    Chief Human Resource Officer

    • Tenure: 0yrs
  • Sujeet Jain

    Chief Legal Officer

    • Tenure: 0yrs
  • Pramod Rajgaria

    President of International Operations

    • Tenure: 0yrs

Board Members

  • Kumar Birla (52yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹155.65m
  • Rajashree Birla (74yo)

    Non-Executive Director

    • Tenure: 15.5yrs
    • Compensation: ₹13.30m
  • Krishna Maheshwari (64yo)

    MD & Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹129.62m
  • Atul Daga (54yo)

    CFO & Wholetime Director

    • Tenure: 3.4yrs
    • Compensation: ₹26.90m
  • Arun Adhikari (65yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: ₹2.00m
  • Sunil Mathur (75yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: ₹3.15m
  • O. Puranmalka (67yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹450.00k
  • Kailash Jhanwar (62yo)

    Deputy MD

    • Tenure: 1.1yrs
    • Compensation: ₹18.91m
  • Alka Bharucha (62yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: ₹2.10m
  • Sukanya Kripalu (59yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹1.90m

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: ₹1.177t
  • Shares outstanding: 288.61m
  • 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, Portlan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 12:53
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
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.