UltraTech Cement Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 133607.90 Crore) operating in Cement sector.
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Promoters held 59.9 per cent stake in the company as of June 30, 2020, while FIIs held 15.4 per cent, DIIs 15.5 per cent and public and others 9.3 per cent.
Motilal Oswal has given a buy rating to UltraTech Cement with a target price of Rs 5600. The share price moved up by 0.41 per cent from its previous close of Rs 4629.60. The stock’s last traded price is Rs 4648.50.
UltraTech Cement Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 133607.90 Crore) operating in Cement sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 10354.21 Crore, up 35.64 % from last quarter Sales of Rs 7633.75 Crore and up 7.63 % from last year same quarter Sales of Rs 9620.47 Crore. The Company reported net profit after tax of Rs 1234.95 Crore in latest quarter.
Investment Rationale The valuation is reasonable at 11.7x FY22E EV/EBITDA and USD177/t capacity, a ~25% discount to its past five-year average and ~15% discount to its past 10-year average. The stock is also trading 30% cheaper v/s peer Shree Cement against the historical average of 10%. It values UTCEM at 14x FY22E EV/EBITDA to arrive at TP of INR5,600.
Promoter/FII Holdings Promoters held 59.9 per cent stake in the company as of Sept 30, 2020, while FIIs held 15.4 per cent, DIIs 15.5 per cent and public and others 9.3 per cent.
