UltraTech Cement Q4 Results Review - Improvement Expected In H2 FY25: IDBI Capital

IDBI Capital Report

UltraTech Cement Ltd.'s Q4 FY24 Ebitda beat our and consensus estimates by 8-9% and it reported Ebitda/tonne of Rs 1191 down only Rs 19/tonne QoQ.

The profitability matrix is better than our and street estimate despite prices were down sharply in Q4 FY24.

UltraTech Cement Ebitda/tonne was supported by drop in fuel cost and operating leverage benefit. UltraTech capacity addition plans are intact with installed capacity to reach 157 million tonnes per annum by FY25E up 18% YoY and further increase of 17% over FY25-27E.

In this addition Kesoram acquisition is not yet factored which to give incremental capacity of 5-6% to UltraTech Cement.

We retain our estimate and Buy rating with target price of Rs 11,844, valuing at 16 times FY26E enterprise value/Ebitda. Demand is expected remain muted in H1 FY25 and to improve in H2 FY25 as policy formation take place under new government.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.