MUMBAI: Aditya Birla Group’s cement subsidiary UltraTech Cement on Friday crossed Rs2 trillion in market capitalisation, with the inventory having rallied 14% within the week thus far, led by a restoration in demand and stories of worth hikes within the firm’s key markets.
At 0150 pm, the UltraTech inventory traded at Rs6,791 apiece on the BSE, having hit a report excessive of Rs6,945.70 earlier, with a market cap of ₹2.01 trillion.
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UltraTech Cement is the primary cement firm have Rs2 trillion in market cap. Previously six months, the inventory has outperformed the broader market, hovering 76% towards a 31% rise within the benchmark Sensex.
Following a 10% yr on yr (YoY) progress in cement volumes in October-December, Motilal Oswal Securities expects a 20% progress in January-March quarter supported by the low base of 4QFY20. Volumes had declined 13% YoY as a result of government-mandated lockdown in March final yr.
“Demand has been strong over Jan–Feb (8–10% YoY), led by a powerful uptick in city actual property and infrastructure exercise. Regionally, demand continues to be robust in East, North, and Central, whereas it has now revived in West. South, nonetheless, stays weak with round 10% YoY decline,” the brokerage agency mentioned.
Final month, the corporate’s board of administrators accredited allotment of greenback denominated notes aggregating to Rs2,900 crore, due in February 2031 at a coupon of two.80%, payable semi-annually on August and February of every yr, commencing from August 2021 as per relevant legal guidelines.
UltraTech Cement reported a consolidated internet revenue of Rs1,584.34 crore for the quarter ended 31 December, up 123% from a year-ago interval. Income from operations rose 17% to Rs12,254.12 crore.
“UltraTech reported one more stellar quarter, pushed by a strong 14% quantity progress and superior opex controls. Wholesome realisation additionally boosted positive aspects. The corporate additional lowered its working capital, decreasing internet debt to earnings earlier than curiosity, tax depreciation and ammortisation (EBITDA) to 0.9 occasions. The brokearge proceed to love UltraTech for its robust quantity focus together with superior margin supply and dealing capital controls” analysts at HDFC Securities mentioned in December quarter outcome replace.
It continues to ship on all fronts – market share acquire, margin growth, and dealing capital discount, thereby bolstering money flows and return ratios. “We enhance our consolidated EBITDA estimates for FY21/22/23E by 10/7/7% to think about robust progress momentum and price controls,” mentioned the brokerage agency, including that it believes Ultratech will stay a most well-liked play within the cement house.