Fundamental Analysis

Gaurav DewanPooja Ninan

RajanRavi ThakkarSubin Babu

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Ultra Tech Cement

Ultra Tech Cement

Strategy - BUY

Industry Analysis

Cement Demand

FY17

FY16

FY15

FY14

FY13

FY12

0 50 100 150 200 250 300 350 400

398

359

324

293

265

242

Domestic Consumption - CAGR 10.2 %

In MT

• Most geographically diversified cement company

• Capacity of 62 MT out of total demand of 324 MT

• Capacity expansion at 23% CAGR as compared to industrial CAGR of 13%

• Power installation to run its plant - 709 MW

• Company aims to reach total capacity of 70MT by 2016

• Highest EBIDTA/tonn due to pan India presence

• Coal linkage with CIL

Ultra Tech – The company

UltraTech Cement: A compelling growth story

2000

•Bulk cement terminals established at Mangalore, Navi Mumbai and Colombo

2004

•Acquisition of L&T’s Cement Business: UltraTech Cement Ltd

2006

•Narmada Cement Company Ltd amalgamated with UltraTech

2010

•Samruddhi Cement Ltd amalgamated with UltraTech Cement Ltd

2012

•Acquisition of Adhunik Cement’s Meghalaya plant

2014

•Acquisition of Gujarat unit of JP Cement

Ultra Tech

Technical Snapshot

Key Technical Data

Recommended Price 2650-2610Price Target 3100Stoploss 243552 Week High 287252 Week Low 163350 Days EMA 2597200 Days EMA 2305

Ultra Tech

Shareholding Pattern

FIIDIIOthersPromoters

Ultra Tech Financial Highlights

2013 2014 2015E 2016ENet Sales 20020 20077 24466 28566EBITDA 4522 3616 4468 5631Net Profit 2655 2144 2530 3214EPS 96.8 78.2 92.3 117.2

Rs. Crore

17%

83%

Market share

Others

U Tech

Rank 1 2 3Net Profit

Total Assets Market Cap Net worth

FCFF ROA

Name Last Price

Market Cap.

Sales Net Profit

Net Profit margin

(Rs. cr.) Turnover

UltraTechCement 2,630.65 72,190.72 20,279.80 2,144.47 10.574414

Ambuja Cements 212.05 32,836.56 9,160.35 1,294.57 14.13232

ACC 1,430.20 26,880.61 11,168.94 1,095.76 9.8107788

Ramco Cements 324.9 7,731.63 3,761.18 137.7 3.6610851

JK Lakshmi Cem 344.95 4,059.03 2,056.60 93 4.5220266

J. K. Cement 539.35 3,771.53 2,795.85 97.03 3.4705009

Birla Corp 480.8 3,702.42 3,016.35 129.76 4.301888

India Cements 115.8 3,557.13 4,496.81 -35.85 -0.797232

Ultra TechCompetition

Ultra TechStock return

1 M 3 M 6 M 12 M

-20

0

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40

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ACCAmbuja CementShree CementUltra Tech

%

Ultra TechCompetition

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Geographic Region Q1 Q2 Q3 Q4

United States 1254 1254 1254 1254

Europe and Asia 324 324 324 324

Australia 32 32 32 32

South America 2 2 2 2

Canada 1 1 1 1

Mexico 1 1 1 1

TOTALS 1614 1614 1614 1614

Quarter North America Asia Europe Australia

Q1 2009 123 34 45 10

Q2 2009 134 35 44 12

Q3 2009 150 45 50 14

Q4 2009 201 55 60 18

Q1 2010 175 44 47 13

Q2 2010 180 48 52 14

Q3 2010 204 55 60 16

Q4 2010 250 62 70 20

Quarter North America Asia Europe Australia

Q1 2009 123 34 45 10

Q2 2009 134 35 44 12

Q3 2009 150 45 50 14

Q4 2009 201 55 60 18

Q1 2010 175 44 47 13

Q2 2010 180 48 52 14

Q3 2010 204 55 60 16

Q4 2010 250 62 70 20

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2000 Bulk cement terminals established at Mangalore, Navi Mumbai and Colombo

2004 Acquisition of L&T’s Cement Business: UltraTech Cement Ltd

2006 Narmada Cement Company Ltd amalgamated with UltraTech

2010 Samruddhi Cement Ltd amalgamated with UltraTech Cement Ltd

2012 Acquisition of Adhunik Cement’s Meghalaya plant

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