⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ULTRACEMCO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ULTRACEMCO | Market Cap | 3,61,811 Cr. | Current Price | 12,284 ₹ | High / Low | 13,102 ₹ |
| Stock P/E | 47.9 | Book Value | 2,401 ₹ | Dividend Yield | 0.63 % | ROCE | 11.7 % |
| ROE | 9.69 % | Face Value | 10.0 ₹ | DMA 50 | 12,075 ₹ | DMA 200 | 11,898 ₹ |
| Chg in FII Hold | -0.89 % | Chg in DII Hold | 0.80 % | PAT Qtr | 1,570 Cr. | PAT Prev Qtr | 1,064 Cr. |
| RSI | 52.3 | MACD | 196 | Volume | 2,09,981 | Avg Vol 1Wk | 4,61,654 |
| Low price | 10,048 ₹ | High price | 13,102 ₹ | PEG Ratio | -14.4 | Debt to equity | 0.30 |
| 52w Index | 73.2 % | Qtr Profit Var | 18.6 % | EPS | 254 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from 1,064 Cr. to 1,570 Cr., showing strong growth momentum.
- Profit Margins: EPS at 254 ₹ reflects solid profitability, though margins remain moderate.
- Debt Ratios: Debt-to-equity at 0.30, manageable leverage for a capital-intensive industry.
- Cash Flows: Likely positive given consistent earnings and dividend payouts.
- Return Metrics: ROCE at 11.7% and ROE at 9.69% are modest, highlighting average capital efficiency.
💹 Valuation Indicators
- P/E Ratio: 47.9, significantly higher than industry average (30.0), suggesting premium valuation.
- P/B Ratio: ~5.12 (Current Price / Book Value), moderately expensive relative to peers.
- PEG Ratio: -14.4, negative, reflecting poor growth-adjusted valuation.
- Intrinsic Value: Current price (12,284 ₹) trades above DMA 50 (12,075 ₹) and DMA 200 (11,898 ₹), showing technical strength but limited margin of safety.
🏢 Business Model & Competitive Advantage
- ULTRACEMCO operates in cement manufacturing, with strong market leadership and extensive distribution network.
- Competitive advantage lies in scale, brand strength, and operational efficiency.
- Moderate debt and consistent profitability provide resilience, though valuation remains stretched.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 11,500–11,800 ₹, closer to DMA 200, offering better risk-reward balance.
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure growth. Strong fundamentals support holding, though valuation premium should be monitored.
Positive
- Quarterly PAT improved from 1,064 Cr. to 1,570 Cr.
- EPS of 254 ₹ reflects strong earnings power.
- DII holdings increased (+0.80%), showing domestic institutional support.
Limitation
- High P/E ratio compared to industry average.
- ROCE and ROE remain modest despite profitability growth.
- PEG ratio negative, highlighting weak growth-adjusted valuation.
Company Negative News
- FII holdings decreased (-0.89%), showing reduced foreign investor confidence.
- Valuation stretched compared to industry peers.
Company Positive News
- Quarterly PAT growth of 18.6% indicates strong operational performance.
- Stock trading above DMA 50 and DMA 200, reflecting technical strength.
Industry
- Cement industry trades at P/E of 30.0, much lower than ULTRACEMCO’s valuation.
- Sector benefits from infrastructure demand, housing growth, and government spending.
Conclusion
- ULTRACEMCO is fundamentally strong with market leadership, consistent profitability, and moderate debt.
- Valuation is stretched compared to industry, limiting near-term upside.
- Best suited for long-term investors seeking infrastructure exposure, with entry near 11,500–11,800 ₹ offering better value.
I can also prepare a cement sector peer comparison HTML table (ULTRACEMCO vs Shree Cement, ACC, Ambuja) to highlight relative valuation and efficiency metrics if you’d like.