April 18, 2024

Emkay World Monetary’s analysis report on UltraTech Cement

UltraTech Cement reported broadly in-line operational efficiency in Q3FY24 with consolidated EBITDA growing 39% YoY/28% QoQ to Rs32.5bn. Blended EBITDA/t improved by Rs236/t (QoQ) to Rs1,191 primarily pushed by elevated common realization (+2% QoQ). Quantity trajectory tapered down to six% YoY (2% QoQ) to 27.3mt (9MFY24: +14% YoY). The corporate has elevated its development capex steerage to Rs90bn every in FY24-FY25 vs. earlier steerage of Rs60-70bn p.a. UltraTech has reiterated to succeed in ~180mt home gray cement capability by FY27E (~10% CAGR, excluding Kesoram Industries), which might allow it to publish industry-leading quantity development over the following few years.

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Outlook

We have now but to think about Kesoram’s acquisitions in our estimates. Factoring in little decrease quantity development, we’ve got reduce our FY25-26E EBITDA estimates by 1-4% and revised down TP to Rs11,200/sh, based mostly on 18x Dec25 EV/E. Keep BUY.

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UltraTech Cement – 22012024 – emkay