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ULTRACEMCO · Cement

UltraTech Cement

₹11,806.00
231 (+2.00%)
Prev close
₹11,575.00
52w high
₹13,110.00
52w low
₹10,325.00
Market cap

1Y price

Weekly close

AI beginner analysis

Summary

UltraTech Cement is the market leader in the Indian cement industry, producing a wide range of building materials from grey cement to ready-mix concrete. The company benefits from a strong national presence and consistent revenue growth driven by India's infrastructure and housing demands.

Bull case

The stock shows healthy earnings growth of nearly 17% and maintains a low debt-to-equity ratio, indicating financial stability. As the largest player in the sector, it is well-positioned to benefit from government spending on mega-infrastructure projects and urban development.

Bear case

A Price-to-Earnings (PE) ratio of over 40 suggests the stock is trading at a premium valuation compared to some historical averages. Additionally, the cement sector is highly sensitive to fluctuations in raw material costs, energy prices, and cyclical slowdowns in the real estate market.

Suitability for beginners

With a low Beta of 0.505, the stock is significantly less volatile than the broader market, making it a relatively stable choice for conservative portfolios. However, the high price per share may require a larger initial capital outlay for beginners looking to buy full units.

Long-term outlook

The company’s dominant market share and consistent expansion plans align well with India's long-term economic growth trajectory. For patient investors, it serves as a core play on the essential "nation-building" theme over a 5 to 10-year horizon.

F&O notes

In the Futures and Options segment, this stock typically offers good liquidity, but the high contract value can lead to significant capital risk. Beginners should be extremely cautious, as F&O is a high-risk derivative tool that requires advanced knowledge of hedging and margin management.

Key metrics

P/E
40.6
P/B
4.53
ROE
Debt/Equity
29.43
Beta
0.51
Div yield
2.09%
Earnings ↑
16.80%
Revenue ↑
15.90%

News sentiment

positive
0.29
BearishNeutralBullish

Latest news

Headlines from across the web, sentiment-scored by AI.