Ultra Tech Cement Shares: The shares of Ultra Tech Cement extended gain today, especially after the Q4 results. Much more to look forward to with this share.
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After the flagship cement manufacturer of the Aditya Birla Group released its Q4 earnings on Tuesday, the share price of UltraTech Cement increased by more than 2%. On the BSE, UltraTech Cement shares increased by as much as 2.38% to ₹10,200 per.
Following the release of UltraTech Cement’s Q4 earnings on Monday, the company’s stock closed 2.7% higher during trading. The biggest cement producer in the nation announced impressive results for the January–March quarter. Fuel costs decreased and double-digit volume growth drove the company’s consolidated net profit, which above projections and increased 36% to ₹2,258 crore from ₹1,666 crore YoY.
Consolidated revenue from operations for the business climbed 9.4% YoY to ₹20,419 crore in Q4FY24. EBITDA at the operating level was ₹4,250 crore, with a 20.81% margin.
“The cost of the company’s imported gasoline usage was flat quarter over quarter in Q4FY24, down 13% from Q4FY23. In a statement, UltraTech stated that “effective capacity utilization was 98% for the quarter and 85% for the entire year.”
It further stated that all industries will continue to have a strong demand for cement, which bodes good for the business.
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Centrum Broking on Ultra Tech Cement Shares
EBITDA for UltraTech Cement exceeded projections by 11%, indicating an exceptionally strong set of results. In contrast to our forecast of ₹150/mt reduction, Ultratech’s EBITDA/mt was flat on a QoQ basis compared to some of the other peer businesses that have released figures thus far. Centrum Broking said that the company outperformed earnings estimates due to better-than-expected blended realizations (caused by increased RMC revenue) and lower costs.
It predicts that Ultratech Cement will solidify its dominant position in the market through increased market share and industry-leading profitability.
The firm increased its share price objective for UltraTech Cement to ₹11,200 from ₹10,550 and kept its ‘Add’ rating on the stock.
Global Financial Services Emkay
Better than anticipated operational performance was achieved by UtraTech Cement in Q4FY24, with consolidated EBITDA rising 24% YoY and 26% QoQ. According to Emkay Global Financial Services, UltraTech has reaffirmed that, with Kesoram Industries excluded, it will reach about 184 mt of domestic grey-cement capacity by FY27E. This will allow it to record industry-leading volume growth during the ensuing years.
Emkay Global reduces its FY25 EBITDA expectations by 4% due to reduced realization, but increases FY26E EBITDA by 3% as a result of integrating Kesoram financials. The firm kept its target price of ₹11,200 per share unchanged and maintained its “Buy” recommendation on the company.
