Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by capacity expansion and effective cost management.
Basis of our Recommendation
UltraTech Cement is positioned for strong growth driven by capacity expansion and robust domestic demand, supported by effective cost management and operational efficiencies. Despite facing some cost pressures, the company has reported significant revenue and profit growth, reflecting a positive market outlook.
Why We Like This Stock
- Strong revenue and profit growth driven by capacity expansion
- Effective cost management improving margins
- Positive market sentiment and robust demand
Things To Watch Out For
- Moderate margin pressures due to rising input costs
- Competitive pressures impacting sector fundamentals
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 70,908 | 75,955 | 88,512 | 99,441 | 112,436 |
| Profit Before Tax (Cr.) | 9,405 | 7,585 | 10,804 | 12,522 | 15,441 |
| PBT Margin | 13.3% | 10.0% | 12.2% | 12.6% | 13.7% |
| Net Profit (Cr.) | 7,192 | 6,746 | 8,521 | 9,879 | 12,182 |
| EPS | 244.1 | 228.9 | 289.2 | 335.2 | 413.4 |
Company Overview
Show Company Profile
UltraTech Cement Limited, together with its subsidiaries, engages in the manufacture and sale of clinker, cement, ready mix concrete, and related products in India, the United Arab Emirates, Bahrain, and Sri Lanka. The company offers ordinary Portland, Portland pozzolana, composite, Weather Plus, and Portland slag; white cement, wall care putty, and value-added products; ready-mix concrete; dry mix mortars, such as tile and marble binders, plasters and mortars, industrial and precision grouts, repair and rehabilitation, and flooring screed; and waterproofing products, including liquid and cement waterproofing products. It also provides masonry products; and TMT steel bars, paints, waterproofing solutions and treatments, switchboards and fittings, plywood, shuttering ply, power and hand tools, PVC pipes, sanitary ware, roofing sheets, and water storage tanks, as well as flooring materials, such as marble, granite, and semi-precious stones through its retail stores under UltraTech Home Expert Store brand name. In addition, the company operates mobile concrete labs that offers on-ground technical assessment of construction materials; and provides Vaastu, pest control, and water testing services, as well as home loans. It offers its products under UltraTech Décor, DuraFacad, Pervious, MaxSheen, AquaSeal, ThermoCon+, FreeFlow+, FireSafe, DuraPlus, CorroProtect, Litecon, iFloors, Rapid, and ZIP brands. The company was incorporated in 2000 and is based in Mumbai, India. UltraTech Cement Limited operates as a subsidiary of Grasim Industries Limited.