UltraTech Cement Ltd
Ticker: ULTRACEMCO
Decent
68/100
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Investing Reference
Price
11947.00
Market Cap
351347.84
Debt/Equity
0.3262
ROE %
9.002
PB
4.7548
Promoter %
59.228
Pledge %
0.000
1Y Rev Growth %
7.201
5Y Rev Growth %
12.228
NP Margin %
7.874
NP Margin 5Y Avg %
10.275
Trading Reference
1M Return %
-1.520
6M Return %
2.602
1Y Return %
7.965
% Away 52W High
9.626
% Away 52W Low
18.901
Daily Volume
175191
Investment Verdict
Hold
Score 64/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 29/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
UltraTech Cement Ltd shows strong growth potential driven by infrastructure demand.
✅ Positives
- Leading market position in cement industry
- Robust financial performance and profitability
- Expansion plans in emerging markets
⚠️ Negatives
- High input costs affecting margins
- Regulatory challenges in construction sector
- Volatility in raw material prices
Verdict
Positive outlook with moderate risks.
Recommendation: Consider buying for long-term growth.
Upside Probability: 20% | Downside Probability: 15%
Last generated: 31/10/2025
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Business Overview
UltraTech Cement Ltd is India's leading cement manufacturer, providing high-quality building materials for residential, commercial, and infrastructure projects. With a commitment to sustainability and innovation, UltraTech plays a crucial role in the construction industry, catering to the needs of builders, contractors, and homeowners alike. Its extensive product range and robust distribution network ensure reliability and accessibility across the country.
- Market leader in cement production in India
- Wide range of products for diverse construction needs
- Strong focus on sustainability and eco-friendly practices
- Robust distribution network ensuring availability
- Trusted by builders and contractors nationwide
Investment Thesis
UltraTech Cement Ltd stands out as a compelling investment due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company for sustained growth in the booming Indian cement sector.
- Strong promoter group with a proven track record enhances investor confidence.
- Expansion in digital services offers a new growth avenue, increasing operational efficiency.
- Valuation metrics indicate UltraTech is attractively priced compared to industry peers.
- Robust demand for cement in India's infrastructure development supports long-term growth.
- Commitment to sustainability and innovation positions UltraTech as a market leader.
Opportunity vs Risk
Opportunities
- Strong demand for infrastructure projects
- Growing urbanization in India
- Potential for export growth
- Government initiatives for housing
- Focus on sustainable construction
Risks ⚠️
- Rising input costs affecting margins
- Regulatory changes in the industry
- Competition from other cement players
- Economic slowdown impacting demand
- Environmental regulations increasing compliance costs
Peer Perspective
UltraTech Cement Ltd trades at a slight premium to ACC and Ambuja Cements, reflecting its robust growth potential. A sustained improvement in margins and demand could trigger a rerating, aligning it closer to its peers.
Future Outlook
UltraTech Cement Ltd is well-positioned for growth, driven by increasing demand in the construction sector. Successful execution of its expansion plans and effective cost control will be crucial for maximizing shareholder value.
AI FAQs for Retail Users
- Q: What does UltraTech Cement Ltd do?A: UltraTech Cement Ltd is a leading cement manufacturer in India, producing various types of cement and building materials.
- Q: Is UltraTech Cement a good investment?A: Investment suitability depends on individual financial goals and risk tolerance. Research and consult a financial advisor for guidance.
- Q: What factors affect UltraTech Cement's stock price?A: Stock price can be influenced by market conditions, demand for cement, raw material costs, and overall economic performance.
- Q: How can I buy shares of UltraTech Cement?A: Shares can be purchased through a stockbroker or online trading platform after opening a trading account.
- Q: What are the risks associated with investing in UltraTech Cement?A: Risks include market volatility, economic downturns, and changes in government regulations affecting the cement industry.
📊 Stock Investment Checklist (100 Points)
UltraTech Cement Ltd • Updated: 2025-09-17 17:36:23
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10BusinessHighCement industry is essential for infrastructure development, but faces cyclical demand.
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10GrowthHighConsistent revenue growth driven by infrastructure projects and housing demand.
-
10ProfitabilityHighStrong ROE and ROCE, but OCF is slightly lower than net profit.
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10ValuationHighP/E and P/B ratios are in line with industry averages, indicating fair valuation.
-
8BalanceHighModerate debt levels with good liquidity, but reserves could be higher.
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7GovernanceHighPromoter holding is strong, but some pledging exists.
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9DriversHighStrong growth drivers from urbanization, but execution risks remain.
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4TechnicalsGoodMarket sentiment is neutral, with moderate liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
UltraTech Cement Ltd shows decent fundamentals with growth potential, but investors should be cautious of cyclical risks and execution challenges.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 85/100
- Growth Potential: 80/100
- Profitability: 75/100
- Governance: 70/100
- Market Confidence: 78/100