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From Rs 3,000 to Rs 9,000; Shares of UltraTech Cement reach a significant milestone

30 November 20234 mins read by Angel One
Today, the company's shares rallied over 3% during the intraday session and touched a Rs 9,000 per share mark for the first time.
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UltraTech Cement, an Indian cement giant, may require an introduction for some. Engaged in the manufacturing and sale of cement and related products primarily within the Indian market, it stands as a flagship company of the Aditya Birla Group. Today, the company’s shares reached a significant level of Rs 9000 apiece.

At the start of the trading day, the company’s shares commenced at Rs 8,760.55, almost flat compared to the previous day’s closing price of Rs 8,726.55 per share. During the day’s session, the shares surged over 3%, reaching a record high of Rs 9,021 per share on the BSE, ultimately concluding the day’s trading at Rs 9,000 per share.

During the COVID-19 pandemic downturn, the company’s shares plummeted to a low of Rs 2,910 in March 2020, marking a revisit to a previous demand zone. This triggered a response from buyers, initiating a subsequent recovery and an upward trajectory in share prices. Since that low point, the company’s stock has showcased a remarkable multibagger return, exceeding 200%. Presently, the company commands a market capitalisation of Rs 2,59,837 crore and holds the top position in terms of market capitalisation.

Financial Performance 

In the second quarter of FY24, the company reported revenues of Rs 16,012 crore, marking an impressive growth of over 15.26% compared to the same quarter in the previous year when the revenue stood at Rs 13,893 crore. The company achieved an operating profit of Rs 2,551 crore for the quarter, in contrast to an operating profit of Rs 1,865 crore in the corresponding quarter of the previous year. The company’s operating profit margin stood at 16% during the quarter. The company reported a net profit of Rs 1,280 crore compared to a net profit of Rs 759 crore in the same period last year.

The company’s Return on Capital Employed (ROCE) stands at 12.9%, while its Return on Equity (ROE) is at 9.7%. Additionally, the shares of the company are trading at a Price-to-Earnings (P/E) ratio of 45.6 in the markets.

Stock Price Chart (Weekly Time Frame) 

Stock Price Chart (Weekly Time Frame)

Peer Comparison: 

Company Name  CMP Rs  M Cap Rs in Cr  ROCE%  ROE%  PE (x)  1-Yr Return % 
UltraTech Cement    9,000.65 2,59,836.81 12.91   9.63 45.60   23.40
Shree Cement 26,741.75 96,486.23   8.99   7.45 50.90 9.33
Ambuja Cements 438.80 87,130.01 12.62 10.76 29.33   -23.67
Dalmia Bharat   2,249.10 42,181.20   8.48   6.97 36.75   20.98
ACC    1,883.60 35,371.65 10.03   7.06 27.01   -26.98
J K Cements   3,643.55 28,153.12 10.42   9.48 62.82   15.11
The Ramco Cement  993.90 23,485.05   6.55   5.14 58.73   47.19
Nuvoco Vistas 364.85 13,030.84   1.93   4.73 23.85 -3.76
Birla Corporation 1,360.60 10,478.01   3.73   0.75 75.05   44.14
JK Lakshmi Cements  821.40 9,665.40 14.25 13.08 27.05 9.81

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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