UltraTech Cement Ltd

NSE: ULTRACEMCO BSE: 532538

₹11000

(0.19%)

Wed, 16 Sept 2026, 10:05 am

Market Cap (in Cr)325405.85

PE Ratio37.92

Dividend2.17

Non-Energy Minerals

Construction Materials

24.5K

UltraTech Cement Analysis

Pros

Dividends after 3 years are expected to be thoroughly covered by earnings (9.1x coverage).

Cons

UltraTech Cement is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
No need to calculate the sustainability of UltraTech Cement's dividends as it is not paying a notable one for India.
UltraTech Cement is not paying a notable dividend for India, therefore no need to check if the payments are stable.
UltraTech Cement's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
UltraTech Cement's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Performance (ROE) is expected to be above the current IN Basic Materials industry average.

Cons

Cash flow for UltraTech Cement is expected to decrease over the next 2 years.
UltraTech Cement's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
UltraTech Cement's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
UltraTech Cement's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
UltraTech Cement's earnings are expected to decrease over the next year.
UltraTech Cement's earnings are expected to increase but not above the low risk growth rate in 3 years time
UltraTech Cement's net income is expected to decrease over the next 2 years.
UltraTech Cement is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
A decline in UltraTech Cement's performance (ROE) is expected over the next 3 years.
UltraTech Cement's revenue is expected to increase but not above the 50% threshold in 2 years time.
UltraTech Cement's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
UltraTech Cement's revenue growth is positive but not above the India market average.

Pros

UltraTech Cement is profitable, therefore cash runway is not a concern.
UltraTech Cement is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (40.9%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).

Cons

UltraTech Cement's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Debt is not covered by short term assets, assets are 0.7x debt.
UltraTech Cement's long term commitments exceed its cash and other short term assets.
The level of debt compared to net worth has increased over the past 5 years (51.6% vs 55.6% today).
UltraTech Cement's level of debt (55.6%) compared to net worth is high (greater than 40%).
High level of physical assets or inventory.

Pros

The tenure for the UltraTech Cement board of directors is about average.
Kailash's remuneration is lower than average for companies of similar size in India.

Cons

Pros

UltraTech Cement's 1-year earnings growth exceeds its 5-year average (138.2% vs 11.4%)
UltraTech Cement's year on year earnings growth rate has been positive over the past 5 years.
UltraTech Cement used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.
UltraTech Cement's earnings growth has exceeded the IN Basic Materials industry average in the past year (138.2% vs 17%).

Cons

UltraTech Cement's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
UltraTech Cement has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

Pros

Cons

UltraTech Cement's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
UltraTech Cement's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
UltraTech Cement is overvalued based on assets compared to the IN Basic Materials industry average.
UltraTech Cement earnings are not expected to grow next year, we can't assess if its growth is good value.
UltraTech Cement is overvalued based on earnings compared to the IN Basic Materials industry average.
UltraTech Cement is overvalued based on earnings compared to the India market.
ULTRACEMCO underperformed the Market in India which returned -14.5% over the past year.
NSEI:ULTRACEMCO is up 5.5% underperforming the Basic Materials industry which returned 9.2% over the past month.
NSEI:ULTRACEMCO is up 5.5% underperforming the market in India which returned 8% over the past month.