Fundamental Analysis of

UltraTech Cement

Presented by :-
Rishav Malik
 General Economic condition at
International level
US – China Trade war
Emerging countries’ currency depreciation
Rising Crude Oil Prices
Performance of nifty from last 1 year (2 Nov
2017 – 2 Nov 2018)
Comparison of Nifty with SSE(China)
Comparison of Nifty with Hong Kong
(HSI)
Macro Economic Variables
 GDP Annual Growth Rate: 8.2%

 GDP: 2597 USD Billion

 Unemployment Rate: 3.52%

 Inflation Rate: 3.69%

 Indian Cement Industry
Second largest market after China
Demand in Real Estate Sector
40% rural Housing, 25% urban Housing, 25%
construction activities.
Expected growth of 550-600 Million Tonnes Per
Annum by 2025.
 SWOT Analysis
Strength:- 1. Better Quality
2.Long realtionship with customer
3. Maintains a world class
infrastructure
Weaknesses:- 1.Delay in Supply
2.Inconsistency of Supply
3.Insufficient Manpower
Opportunity:- 1.Develop new Market areas
2. Maintain position of
competition in the market
Threats:- 1. Competitors like ACC, Lafarge,
Ambuja etc.
2. Mergers and acquisitions
involves high risk, so it should
be careful while entering new
market.
UltraTech Cement
• Cement Industry
• Headquarters – Mumbai, India
• Founder and Current CEO – Kumar
Manglam Birla
• No. of Employees - 13155
• Market Cap – 103,365.69 (Rs. Cr)
Key Financial Ratios
Ratios 2018 2017 2016

Debt-Equity Ratio 0.64 0.22 0.23

Interest coverage 3.97 7.63 7.45

Ratio
Net Profit Ratio 7.49 10.99 9.99

Operating Profit 19.74 20.79 19.51

Ratio
EPS 81.25 95.70 86.32
P/E Ratio :- MPS/ EPS = 3686.05/ 81.25 = 45.37
PEG Ratio :-
PE/ EPS Growth = 45.37/ 6.81= 6.66 ( Overvalued as >1)
( EPS Growth rate = CAGR for & years)

ROE :- Net Profit/ Equity = 2231.28/ 274.61 = 8.07 %

DUPONT Analysis :-

Net Profit EBT EBIT Sales Total Assets

EBT EBIT Sales Total Assets Shareholder’s equity

= Tax Burden Interest Burden EBIT Margin Asset Turnover Leverage

= 0.67 0.53 0.21 0.7 154.72

= 8.07 %
Intrinsic value and Current market price
• Intrinsic value = 3271/ share
• Current market price = 3686.05 /share
• As intrinsic value is < current market price, share is overvalued
Competitor Analysis
Price Trend