LIC and Grasim Owned Large-Cap Cement Expands Production Capacity by 1.2 MTPA with Hirmi (0.8 MTPA) and Roorkee (0.4 MTPA) Enhancements; Total Domestic Capacity Reaches 178.86 MTPA

With a PE ratio of 49.4, the company trades at a premium compared to the industry PE of 41.6.

UltraTech Cement Ltd has successfully completed debottlenecking and efficiency enhancement initiatives at select locations, increasing its cement production capacity by 1.2 million tonnes per annum (mtpa). The capacity additions are as follows:

• Hirmi, Chhattisgarh (Integrated Unit): 0.8 mtpa
• Roorkee, Uttarakhand (Grinding Unit): 0.4 mtpa

With this expansion, the company’s total domestic grey cement manufacturing capacity has increased to 178.86 MTPA, while its global capacity, including 5.4 MTPA of overseas capacity, now stands at 184.26 MTPA.

UltraTech Cement Ltd. is a holding company, which engages in the provision of manufacture and sale of cement and cement related products. Its products include ordinary portland cement, portland blast furnace slag cement, portland pozzalana cement, white cement, and ready mix concrete. The company was founded on August 24, 2000 and is headquartered in Mumbai, India.

UltraTech Cement Ltd has a market capitalisation of Rs 3,09,940 crore and is currently trading at Rs 10,736 per share. The stock has reached a 52-week high of Rs 12,145 and a low of Rs 9,250. Over the past year. The one-year return is 12.30 per cent, and 201 per cent multibagger returns in 5 years. The company has been maintaining a healthy dividend payout of 21.8 per cent.

In the Quarterly Results of Dec-24, the revenue stood at Rs 17,193.33 crore, reflecting a YoY growth of 2.71 per cent and a QoQ increase of 9.97 per cent from Rs 15,634.73 crore in Sep-24. The net profit for Dec-24 was Rs 1,469.51 crore, showing a YoY decline of 17.30 per cent from Rs 1,776.98 crore in Dec-23 but a QoQ rise of 79.20 per cent from Rs 820.04 crore in Sep-24. The net profit margin for Dec-24 stood at 8.55 per cent, compared to 5.24 per cent in Sep-24 and 10.62 per cent in Dec-23.

For the full-year FY24 results, the revenue stood at Rs 70,908.14 crore, reflecting a growth of 12.13 per cent from Rs 63,239.98 crore in FY23. The net profit for FY24 was Rs 6,244.26 crore, showing a growth of 40.97 per cent from Rs 6,437.00 crore in FY23. The net profit margin for FY24 stood at 9.08 per cent, compared to 7.22 per cent in FY23.

As of December 2024, the shareholding pattern is as follows: Promoters hold 60.00 per cent, FIIs hold 16.98 per cent, DIIs hold 15.15 per cent, the government holds 0.05 per cent, the public holds 7.64 per cent, and others hold 0.19 per cent. There is a notable decline in FII holdings from 17.95 per cent in the previous quarter to 16.98 per cent, while DII holdings have increased from 14.08 per cent to 15.15 per cent.

With a PE ratio of 49.4, the company trades at a premium compared to the industry PE of 41.6. The company has ROCE of 15.1 per cent and ROE of 12.2 per cent.  

Investors must keep this Large-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.