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

Proven track record with limited growth.


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


Market Performance


7 Day Return

-3.5%

NSEI:ULTRACEMCO

-1.6%

IN Basic Materials

0.4%

IN Market


1 Year Return

-7.3%

NSEI:ULTRACEMCO

-11.3%

IN Basic Materials

-13.4%

IN Market

ULTRACEMCO matched the Basic Materials industry (-8.2%) over the past year.

ULTRACEMCO outperformed the Market in India which returned -12.8% over the past year.


Share holder returns

ULTRACEMCOIndustryMarket
7 Day-3.5%-1.6%0.4%
30 Day-10.8%-8.4%-3.7%
90 Day-13.2%-9.5%-7.4%
1 Year-7.1%-7.3%-10.7%-11.3%-11.7%-13.4%
3 Year6.2%5.4%3.4%1.6%18.7%12.4%
5 Year56.6%54.5%54.0%49.1%37.5%24.5%

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 based on future cash flows and its price relative to the stock market?

36.76x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

UltraTech Cement's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

UltraTech Cement's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

UltraTech Cement is overvalued based on earnings compared to the IN Basic Materials industry average.

UltraTech Cement is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

UltraTech Cement is poor value based on expected growth next year.


Price Based on Value of Assets

UltraTech Cement is overvalued based on assets compared to the IN Basic Materials industry average.


Next Steps

Future Growth

How is UltraTech Cement expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

UltraTech Cement's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

UltraTech Cement's earnings are expected to grow by 18.2% yearly, however this is not considered high growth (20% yearly).

UltraTech Cement's revenue growth is positive but not above the India market average.

UltraTech Cement's earnings growth is expected to exceed the India market average.

UltraTech Cement's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

UltraTech Cement is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has UltraTech Cement performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

UltraTech Cement's year on year earnings growth rate has been positive over the past 5 years.

UltraTech Cement's 1-year earnings growth exceeds its 5-year average (53.8% vs 1.6%)

UltraTech Cement's earnings growth has exceeded the IN Basic Materials industry average in the past year (53.8% vs 17.2%).


Return on Equity

UltraTech Cement has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

UltraTech Cement used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

UltraTech Cement's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is UltraTech Cement's financial position?


Financial Position Analysis

UltraTech Cement's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

UltraTech Cement's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

UltraTech Cement's level of debt (80.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42.7% vs 80.3% today).

Debt is well covered by operating cash flow (22.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

0.44%

Expected Dividend Yield


Dividend Yield and Payments Analysis

UltraTech Cement's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.63%).

UltraTech Cement's dividend is below the markets top 25% of dividend payers in India (2.51%).

UltraTech Cement is not paying a notable dividend for India, therefore no need to check if the payments are stable.

UltraTech Cement is not paying a notable dividend for India, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of UltraTech Cement's dividends as it is not paying a notable one for India.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (7.5x coverage).


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

Krishna Maheshwari (64yo)

3.3yrs

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

Krishna's remuneration is higher than average for companies of similar size in India.

Krishna's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

4.8yrs

Average Tenure

63yo

Average Age

The tenure for the UltraTech Cement board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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


Management Team

  • Krishna Maheshwari (64yo)

    MD & Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹129.62m
  • Atul Daga (54yo)

    CFO & Wholetime Director

    • Tenure: 3.2yrs
    • Compensation: ₹26.90m
  • Kailash Jhanwar (62yo)

    Deputy MD

    • Tenure: 0.8yrs
    • Compensation: ₹18.91m
  • S. Chatterjee

    Compliance Officer & Company Secretary

    • Tenure: 0.0yrs
    • Compensation: ₹11.70m
  • Pragnya Ram (74yo)

    Group Executive President of Corporate Communication & CSR

    • Tenure: 0.0yrs
  • M. Agarwal (52yo)

    Executive President of Corporate Finance Division

    • Tenure: 0.0yrs
    • Compensation: ₹3.15m
  • Vivek Agrawal (56yo)

    Group Executive President & Chief Marketing Officer

    • Tenure: 0.0yrs
  • Ramesh Mitragotri

    Chief Human Resource Officer

    • Tenure: 0.0yrs
  • Sujeet Jain

    Chief Legal Officer

    • Tenure: 0.0yrs
  • Pramod Rajgaria

    President of International Operations

    • Tenure: 0.0yrs

Board Members

  • Renuka Ramnath (58yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹400.00k
  • Kumar Birla (52yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: ₹155.65m
  • Rajashree Birla (74yo)

    Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: ₹13.30m
  • Krishna Maheshwari (64yo)

    MD & Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹129.62m
  • Atul Daga (54yo)

    CFO & Wholetime Director

    • Tenure: 3.2yrs
    • Compensation: ₹26.90m
  • Arun Adhikari (65yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: ₹2.00m
  • Sunil Mathur (75yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: ₹3.15m
  • O. Puranmalka (67yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹450.00k
  • Kailash Jhanwar (62yo)

    Deputy MD

    • Tenure: 0.8yrs
    • Compensation: ₹18.91m
  • Sukanya Kripalu (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • 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: ₹1.142t
  • Shares outstanding: 274.65m
  • 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 Analysis2019/08/20 12:46
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
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.