ULTRACEMCO - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Breakdown

Profitability

ROCE: 11.7% and ROE: 9.69% — moderate, but consistent with capital-intensive cement businesses.

EPS: ₹240, with PAT declining from ₹2,682 Cr. to ₹2,232 Cr. — a 41.5% drop, likely cyclical or seasonal.

Debt-to-equity: 0.29 — conservative leverage, well-managed for infrastructure scale.

Dividend Yield: 0.61% — modest, but stable.

Institutional Sentiment

Slight uptick in both FII and DII holdings (+0.06%) — neutral to mildly positive.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 52.9 Premium vs. industry average (47.3) — priced for leadership and stability.

P/B Ratio ~5.34 Reasonable for a dominant player with strong asset base.

PEG Ratio -15.9 Negative — reflects earnings contraction or inconsistent growth.

Intrinsic Value ~₹11,800–₹12,200 (est.) Current price of ₹12,626 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: India’s largest cement manufacturer with pan-India presence and growing international footprint.

Strengths

Market leader with ~27% capacity in South India post recent expansions

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Strong brand equity, cost efficiency, and backward integration.

Benefiting from M&A synergies and pricing power in Eastern and Southern regions

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Challenges

Seasonal demand fluctuations and margin pressure.

RSI at 53.5 — neutral, MACD at 27.9 — bullish but flattening.

📈 Entry Zone & Technicals

DMA 50: ₹12,423, DMA 200: ₹11,783 — price is above both, indicating strength.

RSI: 53.5 — neutral zone.

MACD: 27.9 — bullish momentum, but watch for reversal.

📌 Entry Zone: ₹11,800–₹12,200 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

Analyst Targets

₹13,840 to ₹14,700 in the next 12 months

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Supported by volume growth, price hikes, and operational efficiency.

Holding Strategy: UltraTech is a long-term compounder with strong fundamentals and dominant market share. Ideal for investors seeking steady growth in India’s infrastructure and housing sectors.

For deeper insights, check Trendlyne’s analyst reports on UltraTech Cement

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trendlyne.com

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