UltraTech Cement Ltd

The firm raised its target price to Rs 13,000 from Rs 9,000, expecting a strong demand rebound in the next fiscal year. The brokerage noted that industry consolidation favors market leaders, while factors like housing upcycle and revival in government-led capital expenditure will boost demand. Cost reductions through renewable energy, improved logistics through mergers, and lower freight expenses could further strengthen the sector's profitability. UltraTech, an Aditya Birla group entity, is the market leader in Indian cement industry with 177.7 MPTA grey cement capacity as on 1 March 2025 with pan-India presence. On a consolidated basis, net profit of UltraTech Cement declined 17.30% to Rs 1469.51 crore while net sales rose 2.71% to Rs 17193.33 crore in Q3 December 2024 over Q3 December 2023. Powered by Capital Market - Live

UltraTech Cement announced that as part of its capacity expansion programs, the Company has identified several opportunities for debottlenecking and enhancing efficiency at various locations. These initiatives have been successfully completed and stabilized, leading to an increased production capacity of 1.2 mtpa, as outlined below: Name of Unit  Type of Unit  Additional Capacity Achieved  Hirmi, Chhattisgarh Integrated Unit 0.8 mtpa Roorkee, Uttarakhand Grinding Unit 0.4 mtpa Consequent to the above, the Company's total domestic grey cement manufacturing capacity stands at 178.86 mtpa. Alongwith its overseas capacity of 5.4 mtpa, the Company's global capacity stands at 184.26 mtpa.Powered by Capital Market - Live

The Chhattisgarh-based integrated unit has commissioned additional capacity of 0.8 MTPA. The Grinding unit located Uttarakhand has commissioned 0.4 MTPA additional capacity. Consequently, the company's total domestic grey cement manufacturing capacity stands at 178.86 MTPA. Along with its overseas capacity of 5.4 MTPA, the company's global capacity stands at 184.26 MTPA, UltraTech Cement said in a statement. UltraTech, an Aditya Birla group entity, is the market leader in Indian cement industry. On a consolidated basis, net profit of UltraTech Cement declined 17.30% to Rs 1469.51 crore while net sales rose 2.71% to Rs 17193.33 crore in Q3 December 2024 over Q3 December 2023. The scrip rose 0.75% to currently trade at Rs 10780.15 on the BSE. Powered by Capital Market - Live

The agency has reaffirmed 'CARE AAA; Stable / CARE A1+' rating to the long term / short term bank facilities of the company worth Rs 13,000 crore. Further, CARE Ratings has assigned a CARE AAA; Stable rating to UltraTech's fixed deposit program worth Rs 74 crore. According to CARE Ratings, the AAA rating reflects UltraTech's sustained market leadership in India, bolstered by its extensive and diversified cement capacities across the country. As of March 1, 2025, UltraTech boasts an installed cement capacity of 177.7 million tonnes per annum (MTPA) in India, and 183.1 MTPA globally. The company's ongoing expansion plans are set to further increase this capacity to 188.2 MTPA by the end of FY25 and 214.7 MTPA by the end of FY27, solidifying its market dominance. Despite recent capital expenditure, acquisitions, and increased working capital requirements, the company's financial risk profile remains strong. CARE Ratings anticipates that UltraTech's net debt to profit before interest, lease rentals, depreciation and taxation (PBILDT) will remain around 1.6x by the end of FY25 and improve thereafter. The company's liquidity position is also considered superior, supported by strong cash flow generation, moderate working capital utilization, and healthy cash reserves. However, CARE Ratings acknowledged that UltraTech remains exposed to the cyclical nature of the cement industry and volatility in input costs and realizations. The Stable outlook indicates the expectation that UltraTech will maintain its market leadership and strong credit metrics, continuing to grow its operations through capacity expansion. UltraTech is currently executing its second and third phases of capacity expansion, including inorganic acquisitions, aiming to reach 209.3 MTPA in India and 214.7 MTPA globally by FY27. The expansion also includes increasing green power generation capacity to approximately 60% of its power requirements by FY27 and venturing into the cables and wire division with a capital investment of Rs 1800 crore over the next two fiscal years. UltraTech, an Aditya Birla group entity, is the market leader in Indian cement industry with 177.7 MPTA grey cement capacity as on 1 March 2025 with pan-India presence. UltraTech has 35 Integrated Units (34 in India and one overseas), 34 Grinding Units (30 in India and 4 overseas), 9 Bulk Packaging Terminals ' Sea + Rail (seven in India and one overseas), 2 white cement units and 3 Putty units and 5 Jetties across India, the UAE, Bahrain, and Sri Lanka. On a consolidated basis, net profit of UltraTech Cement declined 17.30% to Rs 1469.51 crore while net sales rose 2.71% to Rs 17193.33 crore in Q3 December 2024 over Q3 December 2023. Powered by Capital Market - Live

CARE ratings has reaffirmed 'CARE AAA; Stable / CARE A1+' rating to the Long Term / Short Term Bank facilities of UltraTech Cement and assigned 'CARE AAA; Stable' rating to the fixed deposit programme.Powered by Capital Market - Live

UltraTech Cement will hold a meeting of the Board of Directors of the Company on 28 April 2025.Powered by Capital Market - Live

The key domestic indices ended sideways on Thursday, amid mixed global cues. The Nifty closed below at 22,550 mark. Trading was volatile due to the monthly Nifty50 F&O series expiry today. Media, realty and auto shares declined while banking and metal shares witnessed buying demand. As per provisional closing data, the barometer index, the S&P BSE Sensex, advanced 10.31 points or 0.01% to 74,612.43. The Nifty 50 index shed 2.50 points or 0.01% to 22,545.05. The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index declined 0.97%, and the S&P BSE Small-Cap index fell 2.09%. The market breadth was weak. On the BSE, 951 shares rose and 3,024 shares fell. A total of 97 shares were unchanged. Stocks in Spotlight: UltraTech Cement dropped 4.99% after the company announced its plan to enter the wires and cables segment, investing approximately Rs 1,800 crore over the next two years. The company's board approved the venture, aligning with its strategy to become a comprehensive building solutions provider. A new plant, expected to be commissioned near Bharuch, Gujarat, by December 2026, will serve the growing demand across residential, commercial, infrastructure, and industrial sectors. Vesuvius India rose 0.94%. The company reported a standalone net profit of Rs 59.93 crore in Q4FY24, registering a 5.01% increase compared to the same period in the previous year. Net sales also saw a rise, climbing 22.83% year-on-year (YoY) to Rs 507.49 crore. Tata Power Company slipped 2.21%. The company announced that it has signed a landmark MoU with the Assam Government to develop and tie up up to 5000 MW of renewable and clean energy, with Rs 30,000 crore investments, at the Advantage Assam 2.0 event. Mahindra EPC Irrigation declined 1.96%. The company announced that it has received an order worth Rs 11.79 crore from the Office of the Assistant Engineer for the supply of microirrigation systems under a community microirrigation project. Cupid dropped 1.21%. The company announced that it has received purchase orders from the Medical Stores Department, Government of Tanzania, for the supply of male condoms worth Rs 42 crore. Jupiter Wagons lost 2.65%. The company announced that its manufacturing arm, Jupiter Tatravagonka Railwheel Factory, received a contract worth Rs 255 crore from Braithwait & Co. for the supply of 9,140 wheelsets of 840 mm diameter for 25-ton axle load applications. Mastek added 1.09%. The company has announced that it has secured multi-year, multi-million dollar contracts with an estimated value of $85 million from a UK Public Service Department. Zydus Lifesciences rose 0.89%. The company announced the launch of VaxiFlu-4, India's first quadrivalent influenza vaccine, for the 2025 southern hemisphere season. A quadrivalent vaccine, by covering strains of both influenza A and influenza B significantly reduces the risk of vaccine mismatch. The vaccine has been cleared by the Central Drug Laboratory (CDL), the company added. Global Markets: Most of European stocks declined on Thursday after U.S. President Donald Trump threatened to impose 25% tariffs on imports from the European Union. Asian shares ended mixed, influenced by a combination of Nvidia's earnings results and renewed US trade tariff concerns. Nvidia, a key player in the AI sector, reported strong quarterly figures, forecasting first-quarter revenue of $43 billion, exceeding expectations of $42.05 billion. However, a projected softer-than-expected gross margin, attributed to the Blackwell production ramp-up, led to a volatile after-hours trading session, with the stock fluctuating between gains and losses. This muted investor response followed a period of consistently high expectations. Adding to market unease, former President Donald Trump announced plans to impose 25% tariffs on the European Union and reiterated that tariffs on Mexico and Canada would take effect on April 2. Contradictory statements within his announcement created confusion and uncertainty among investors. These developments followed a flat close for U.S. stocks on Wednesday, which had already seen four consecutive days of losses. Concerns about a potential U.S. economic slowdown, reflected in weak consumer sentiment data, further contributed to the negative market sentiment. Specifically, the S&P 500 closed unchanged at 5,956.18 points, the NASDAQ Composite rose 0.3% to 19,075.26 points, and the Dow Jones Industrial Average fell 0.4% to 43,433.12 points. Investors are now awaiting key economic data, including fourth-quarter gross domestic product figures due Thursday and the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, scheduled for Friday.Powered by Capital Market - Live

The company's board approved the venture, aligning with its strategy to become a comprehensive building solutions provider. UltraTech intends to leverage its manufacturing expertise and customer relationships to deliver high-quality wires and cables. A new plant, expected to be commissioned near Bharuch, Gujarat, by December 2026, will serve the growing demand across residential, commercial, infrastructure, and industrial sectors. The wires and cables industry has experienced a robust revenue CAGR of around 13% between FY19 and FY24, driven by the shift from the unorganized to the organized market. UltraTech believes this entry will be value accretive to its shareholders. Kumar Mangalam Birla, Chairman, Aditya Birla Group, stated, We intend to expand our presence in the construction value chain through our foray in the cables and wires segment, which aligns with our vision of providing comprehensive solutions to our end customers in the construction sector. Obviously, we will continue to focus and grow our core Cement business. This year UltraTech reached a new milestone of crossing 175 mtpa of cement capacity in India and is likely to emerge as the largest cement company globally (by sales volume ex-China). UltraTech remains committed to delivering superior quality building materials and solutions that contribute to the sustainable development of a Viksit Bharat. UltraTech Cement's share price decline reflects investor apprehension regarding the company's diversification strategy. Concerns center on the potential dilution of focus from its core cement operations, given its established market dominance. Further, its recent expansion into the paints sector has amplified apprehensions regarding capital allocation and the risk of over-diversification. Investors are wary that resources may be inadequately distributed across multiple business segments, potentially compromising the performance of existing profitable ventures. UltraTech Cement is the cement flagship company of the Aditya Birla Group. UltraTech is the third largest cement producer in the world, outside of China, with a consolidated grey cement capacity of 183.06 MTPA. On a consolidated basis, net profit of UltraTech Cement declined 17.30% to Rs 1469.51 crore while net sales rose 2.71% to Rs 17193.33 crore in Q3 December 2024 over Q3 December 2023. Powered by Capital Market - Live

Polycab India (down 15%), KEI Industries (down 15%), RR Kabel (down 13%), Havells India (down 7.6%) and Finolex Cables (down 5.07%) slumped. Meanwhile, Ultratech Cement slumped 5.27% to Rs 10390. UltraTech Cement, a prominent Aditya Birla Group company, revealed its plan to diversify into the wires and cables segment, allocating Rs 1,800 crore for capital expenditure over the next two years. The company aims to capitalize on its established manufacturing prowess and existing customer relationships to deliver high-quality products. The new manufacturing facility will be strategically located near Bharuch, Gujarat, and is expected to be operational by December 2026. UltraTech's move is driven by the burgeoning demand for wires and cables across residential, commercial, industrial, and infrastructure sectors. The wire and cable industry has demonstrated robust growth with revenue CAGR of around ~13% between FY19 to FY24. The industry's positive outlook is further bolstered by the ongoing shift from the unorganized to the organized market. The market's reaction reflects concerns about increased competition within the wire and cable sector, as UltraTech's substantial resources and established brand presence are expected to significantly impact the existing market dynamics. Powered by Capital Market - Live

The Board of  UltraTech Cement at its meeting held on 25 February 2025 has declared the composite scheme of arrangement between Kesoram Industries and UltraTech Cement to be effective from 01 March 2025: In terms of the Scheme, the Company will issue: - 1 (one) fully paid-up equity share of Rs.10 (rupees ten only) each of the Company for every 52 (fifty-two) fully paid-up equity shares of Rs.10 (rupees ten only) each held by equity shareholders of Kesoram Industries Limited ('the Demerged Company') as on the Record Date, to be announced by the Demerged Company; - 54,86,608 (Fifty Four Lakhs Eighty Six Thousand Six Hundred Eight) fully paid-up 7.3% nonconvertible redeemable preference shares of Rs.100 (rupees one hundred only) each of the Company for 90,00,000 (Ninety Lakhs) 5% cumulative non-convertible redeemable preference shares of Rs.100 (rupees one hundred only) each of the Demerged Company held by the preference shareholder in the Demerged Company as on the Effective Date; and - 8,64,275 (Eight Lakhs Sixty Four Thousand Two Hundred Seventy Five) fully paid-up 7.3% nonconvertible redeemable preference shares of Rs.100 (rupees one hundred only) each of the Company for 19,19,277 (Nineteen Lakhs Nineteen Thousand Two Hundred Seventy-Seven) zero% optionally convertible redeemable preference shares of Rs.100 (rupees one hundred only) each of the Demerged Company held by the preference shareholder in the Demerged Company as on the Effective Date.Powered by Capital Market - Live