ULTRACEMCO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | ULTRACEMCO | Market Cap | 3,41,415 Cr. | Current Price | 11,586 ₹ | High / Low | 13,110 ₹ |
| Stock P/E | 45.6 | Book Value | 2,534 ₹ | Dividend Yield | 0.67 % | ROCE | 12.7 % |
| ROE | 10.4 % | Face Value | 10.0 ₹ | DMA 50 | 11,749 ₹ | DMA 200 | 11,882 ₹ |
| Chg in FII Hold | -0.83 % | Chg in DII Hold | 0.97 % | PAT Qtr | 2,616 Cr. | PAT Prev Qtr | 1,570 Cr. |
| RSI | 47.4 | MACD | 102 | Volume | 7,79,076 | Avg Vol 1Wk | 5,73,529 |
| Low price | 10,325 ₹ | High price | 13,110 ₹ | PEG Ratio | 3.06 | Debt to equity | 0.27 |
| 52w Index | 45.3 % | Qtr Profit Var | -2.48 % | EPS | 251 ₹ | Industry PE | 30.8 |
📊 ULTRACEMCO demonstrates solid fundamentals with ROE at 10.4% and ROCE at 12.7%, reflecting moderate efficiency. EPS of 251 ₹ supports profitability, and quarterly PAT improved significantly (2,616 Cr. vs 1,570 Cr.), though profit variation (-2.48%) indicates earnings pressure. Debt-to-equity ratio of 0.27 is manageable, and dividend yield of 0.67% adds investor appeal. Valuation is stretched with P/E at 45.6 compared to industry average of 30.8, while PEG ratio of 3.06 suggests expensive growth expectations. Technical indicators (RSI 47.4, MACD 102) show neutral momentum, with price trading slightly below both 50 DMA (11,749 ₹) and 200 DMA (11,882 ₹).
💡 Entry Price Zone: Attractive accumulation between 11,200 ₹ – 11,500 ₹ near DMA supports. Buying above 11,800 ₹ carries valuation risk.
📈 Long-Term Holding Guidance: ULTRACEMCO is fundamentally strong and suitable for long-term holding (3–5 years). Investors should monitor valuation multiples and institutional flows. Holding is justified if profitability sustains and cement demand continues to expand with infrastructure growth.
Positive
- Strong EPS (251 ₹) supports profitability.
- Quarterly PAT improved (2,616 Cr. vs 1,570 Cr.).
- Debt-to-equity ratio of 0.27 indicates manageable leverage.
- DII holdings increased (+0.97%), showing domestic confidence.
Limitation
- ROE (10.4%) and ROCE (12.7%) are modest compared to peers.
- High P/E (45.6) vs industry average (30.8).
- PEG ratio of 3.06 indicates premium valuation relative to growth.
- Price trading below both 50 DMA and 200 DMA, signaling resistance.
Company Negative News
- Sequential profit variation (-2.48%) highlights earnings pressure.
- FII holdings decreased (-0.83%), showing reduced foreign confidence.
Company Positive News
- Quarterly PAT surged compared to previous quarter.
- Domestic institutional investors increased holdings significantly.
Industry
- Industry PE at 30.8, while ULTRACEMCO trades at 45.6, showing premium valuation.
- Cement sector benefits from infrastructure expansion and housing demand.
Conclusion
✅ ULTRACEMCO is a fundamentally strong company with consistent profitability and manageable leverage, but currently overvalued. Best suited for disciplined long-term investors who accumulate near 11,200–11,500 ₹. Exit opportunities may arise near 12,800–13,000 ₹ if momentum sustains. Conservative investors should wait for improved efficiency metrics before committing heavily.
Would you like me to extend this into a cement sector peer overlay HTML (e.g., ULTRACEMCO vs Shree Cement, Ambuja Cement, and ACC) to highlight relative valuation and efficiency positioning?