UltraTech Cement Performance
Fundamentals of UltraTech Cement
|P/E Ratio (TTM)||45.63|
|Debt to Equity||0.2|
Financials of UltraTech Cement
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||1,527.24||2,492.4||2,266.79||1,689.74|
|EPS in Rs||36.7||57.78||58.57||44.46|
About UltraTech Cement
UltraTech Cement Limited is engaged in the manufacturing and sale of cement and cement-related products in India. It was established on August 24, 2000, as L&T Cement Limited, a public limited company that is wholly owned by Larsen & Toubro Limited. In 2003, L&T Cement Limited’s name was changed to UltraTech Chem Co. Limited. During 2004, the cement business of Larsen & Toubro Ltd was demerged and transferred to UltraTech according to the scheme of arrangement. The company came up with an IPO in 2004.
In 2010, the company acquired Star Cement in the Middle East, and greenfield expansions of cement capacity reached 52 Metric Tonnes Per Annum (MTPA). In 2012, the company finished a brownfield expansion in Chhattisgarh and Karnataka, which included the commissioning of a grinding unit in Hotgi, Maharashtra, and 1.5 MT at Rajashree, Karnataka, Port Based bulk terminal of 0.5 MT at Cochin.
The company acquired Jaypee Cement business (21.2 MTPA) in 2017, the largest cement company in India. The acquisition elevated the cement capacity of Ultra Tech to 93 MTPA. UltraTech’s cement manufacturing capacity in India increased to 112.55 MTPA and globally to 117.95 MTPA in 2021. The capacity expansion continued in 2023 and reached 126.95 MTPA with 84% capacity utilisation of installed capacity.
Ultra Tech is the largest cement manufacturer in India and 3rd largest cement producer globally (excluding China). The company offers a wide range of products, such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Composite Cement (CC), and Ready-Mix Concrete (RMC).
The company operates the business under several brands, which include UltraTech Cement, UltraTech Concrete, UltraTech Building Products, UltraTech Building Solutions & Birla White Cement, under which it sells different products. UltraTech Cement operates in four countries: UAE, Bahrain, Sri Lanka and India.
As per the 2023 annual report, the company has seven subsidiaries: Harish Cement Limited, Gotan Limestone Khanij Udyog Private Limited, Bhagwati Lime Stone Company Private Limited, and UltraTech Cement Lanka (Pvt.) Limited, UltraTech Cement Middle East Investment Ltd. (UCMEIL) (Standalone), Star Cement Co LLC, Dubai and Arabian Cement Industry LLC, Abu Dhabi.
- Mr Kumar Mangalam Birla, Founder
Mr Kumar Mangalam Birla is the Chairman of the UltraTech Cement Limited. He chairs the boards of the group’s major companies in India and globally. In 1995, Mr. Birla assumed leadership of the Group. Mr Birla has led the Aditya Birla Group to a significant growth trajectory as chairman. He has accelerated growth, established a meritocracy, and increased stakeholder value in the 24 years he has led the Group. He increased the group’s turnover in the process, increasing it from US$ 2 billion in 1995 to US$ 48.3 billion.
- Mr K. C. Jhanwar, Managing Director
Mr K. C. Jhanwar, managing director of UltraTech Cement Limited, has worked for the Aditya Birla Group for more than 38 years. Mr Jhanwar began working for the Aditya Birla Group’s cement division as a management trainee in 1981.
- The company has made numerous acquisitions, including National Limestone Company in 2022 and Binani Cement in 2018.
- In 2020, Ultra Tech divested its China operations, which it acquired from Binani Cement Ltd’s acquisition in 2018.
In future, UltraTech Cement will concentrate on capacity expansion, addressing high-growth regions nationwide through greenfield and brownfield projects. The business has started construction on the 22.6 MTPA expansion phase. At most sites, civil work is well underway, and by FY 2025/FY 2026, phased commercial production from these expanded capacities is anticipated.
When all active expansion projects are finished, the capacity will increase to 160+ MTPA. This expansion would strengthen its position as the third-largest cement manufacturer in the world (behind China) and the undisputed market leader in India.
- Growing net profit margin on a quarterly basis.
- Low debt business.
- Deteriorated cash flow position.
- Sale of shares by mutual funds.
- Higher demand due to growing infrastructure.
- Rising capacity in domestic and international markets.
- Climate change to impact long-term business prospects.
- Exposure to liquidity risk
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What is the Share price of UltraTech Cement (ULTRACEMCO)?
Can I buy UltraTech Cement (ULTRACEMCO) shares?
How do I buy UltraTech Cement (ULTRACEMCO) from Angel One?
- Direct investment: You can buy UltraTech Cement (ULTRACEMCO) shares by opening a Demat account with Angel One.
- Indirect investment: The indirect method involves investing through ETFs and Mutual Funds that offer exposure to UltraTech Cement (ULTRACEMCO) shares.
What is the total Asset of Ultra Tech?
The total asset of Ultra Tech is Rs. 83,811 Crores.
Who are the promoters of Ultra Tech?
What is the main business of Ultra Tech?
The main business of UltraTech is the production of white cement in India. UltraTech is also the leading producer of ready-mix concrete (RMC) and grey cement. UltraTech’s Building Products business provides scientifically engineered products to assist new-age constructions.
What are the Brands that comes under Ultra Tech?
The brands that come under Ultra Tech are UltraTech, UltraTech Premium and Birla Super.