⚠ 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: 3.7
| Stock Code | ULTRACEMCO | Market Cap | 3,31,475 Cr. | Current Price | 11,247 ₹ | High / Low | 13,110 ₹ |
| Stock P/E | 43.9 | Book Value | 2,401 ₹ | Dividend Yield | 0.69 % | ROCE | 11.7 % |
| ROE | 9.69 % | Face Value | 10.0 ₹ | DMA 50 | 12,126 ₹ | DMA 200 | 12,014 ₹ |
| Chg in FII Hold | -0.89 % | Chg in DII Hold | 0.80 % | PAT Qtr | 1,570 Cr. | PAT Prev Qtr | 1,064 Cr. |
| RSI | 37.6 | MACD | -425 | Volume | 2,23,734 | Avg Vol 1Wk | 5,35,365 |
| Low price | 10,573 ₹ | High price | 13,110 ₹ | PEG Ratio | -13.2 | Debt to equity | 0.30 |
| 52w Index | 26.6 % | Qtr Profit Var | 18.6 % | EPS | 254 ₹ | Industry PE | 28.2 |
📊 Financials
- Revenue Growth: Moderate, PAT improved to 1,570 Cr from 1,064 Cr
- Profit Margins: EPS at 254 ₹, showing profitability but under pressure
- Debt Ratios: Debt-to-equity at 0.30, manageable leverage
- Cash Flows: Supported by consistent operations, though margins remain tight
- Return Metrics: ROCE 11.7% and ROE 9.69% indicate modest efficiency
💹 Valuation
- P/E Ratio: 43.9, higher than industry average (28.2), suggesting overvaluation
- P/B Ratio: ~4.7 (Current Price / Book Value), moderately expensive
- PEG Ratio: -13.2, reflecting weak growth prospects
- Intrinsic Value: Slightly overvalued compared to peers
🏢 Business Model & Health
- Business Model: Cement manufacturing, strong presence in infrastructure and housing sectors
- Competitive Advantage: Market leader with scale, brand strength, and distribution network
- Overall Health: Financially stable but efficiency metrics are modest; valuations stretched
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 11,000–11,300 ₹ levels (close to support)
- Long-Term Holding: Suitable for conservative investors; dividend yield (0.69%) adds minor stability
✅ Positive
- Quarterly PAT improved (1,570 Cr vs 1,064 Cr)
- EPS of 254 ₹ reflects profitability
- DII holdings increased (+0.80%), showing domestic institutional support
⚠️ Limitation
- ROCE (11.7%) and ROE (9.69%) remain modest
- P/E ratio significantly higher than industry average
- PEG ratio negative, reflecting poor growth outlook
📉 Company Negative News
- FII holdings decreased (-0.89%), showing reduced foreign investor confidence
- Technical indicators (RSI 37.6, MACD -425) suggest weak momentum
📈 Company Positive News
- DII holdings increased (+0.80%), showing strong domestic support
- Quarterly PAT improved significantly compared to previous quarter
🏭 Industry
- Cement industry P/E: 28.2, lower than ULTRACEMCO’s valuation
- Sector demand driven by infrastructure expansion and housing growth
🔎 Conclusion
- ULTRACEMCO is financially stable with strong market leadership but modest efficiency metrics
- Valuation is expensive compared to industry peers, with limited growth visibility
- Entry near 11,000–11,300 ₹ may offer value; suitable for long-term investors focused on infrastructure growth