UltraTech Cement Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 210392.41 Crore) operating in Cement sector.
UltraTech Cement Ltd. key Products/Revenue Segments include Portland/Possolana Cement, Other Operating Revenue, Scrap, Sale of services, Lease Rentals for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 12156.83 Crore, up 1.01 % from last quarter Total Income of Rs 12034.71 Crore and up 15.90 % from last year same quarter Total Income of Rs 10489.10 Crore. Company reported net profit after tax of Rs 1310.26 Crore in latest quarter.
Investment Rationale
While investor’s concern around sharp cost increases seems valid, industry has demonstrated strong pricing resilience in the past. Its recent channel checks suggest companies have increased prices by Rs15-20/bag across regions. The brokerage believes UTCEM with its large pan-India diversified market presence, premium brand positioning and increased focus on cost efficiencies is better placed to sustain / improve margins in the medium term. The broekrage maintains BUY with revised target price of Rs8,880/share (earlier: Rs8,600) based on 15x Sep’23E EV/E on quarterly rollover. Key risks: Lower demand / pricing.
Promoter/FII Holdings
Promoters held 59.96 per cent stake in the company as of 30-Sep-2021, while FIIs owned 16.48 per cent, DIIs 14.51 per cent.
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