UltraTech Cement Stock Price: Cement main UltraTech Cement on Friday reported its January-March quarter outcomes. For the quarter beneath assessment, the firm’s consolidated internet gross sales had been reported at Rs 18,436 crores, a 19 per cent progress vis-a-vis Rs 15,557 crores in the corresponding interval of the earlier 12 months.
UltraTech Cement’s internet revenue for Q4FY23 got here in at Rs 1,666 crores in comparison with a normalised revenue Rs 1,478 crores (earlier than one-time extraordinary positive aspects) in the corresponding interval of the earlier 12 months. Its revenue earlier than curiosity, depreciation and tax was Rs 3,444 crores as towards Rs 3, 165 crores in the corresponding interval of the earlier 12 months.
For the full monetary 12 months 2023, UltraTech Cement’s consolidated internet gross sales jumped 21 per cent to Rs 62,338 crores from Rs 51,708 final 12 months. Profit after tax was Rs 5,064 crores in comparison with a normalised revenue of Rs 5,667 crores in the corresponding interval of the earlier 12 months.
UltraTech Cement Dividend
The Board of Directors of the firm advisable a dividend of 380 per cent at the fee of Rs 38 per fairness share of face worth of Rs 10 per share, aggregating Rs 1,097.01 crores. “In phrases of the provisions of the Finance Act, 2020, the dividend shall be taxed in the arms of shareholders at relevant charges of tax and the Company shall withhold tax at supply appropriately,” the company said in an exchange filing.
The Board of Directors have recommended a Rs 38 per share dividend aggregating to Rs 1,097 crore for the year ended 31/0312023.
Should you Buy it?
Brokerages have shared their ratings and opinions on the stock in response to the Q4FY23 earnings results of the cement major.
ICICI Securities Ltd, in its analysis said: “the company had a strong fourth quarter of fiscal year 23 with volumes increasing by more than 14 per cent YoY, a realisation drop stopped at just under 1 per cent QoQ, a decrease in variable cost per tonne of more than 3 per cent QoQ, and a restrained increase in fixed costs of only 5.5 per cent YoY/3 per cent QoQ.”
As a end result, the firm’s consolidated earnings earlier than curiosity, taxes, depreciation, and amortisation (EBITDA), which got here in at Rs 33.2 billion, above expectations by greater than 4 per cent. Blended EBITDA/tonne was Rs. 1,048, exceeding expectations by greater than 4 per cent.
“Yet, we see restricted scope to boost our earnings forecast. Despite easing gas prices, we keep there exists a downgrade danger to consensus estimates given the weak cement pricing surroundings. Further, constant industry-wide capability additions and overhang of aggressive growth by Adani group restrain upward revision to our valuation a number of. We proceed to worth the firm at 15 instances FY25E EV/EBITDA and keep ‘hold’ ranking with unchanged goal value of Rs 7,295,” said the brokerage in its report.
“We remain positive on the company’s volume prospects in the upcoming quarters considering access to incremental capacity and better demand. Although range-bound movement in cement prices is a challenge, easing fuel prices and UTCEM’s cost savings measures should keep a check on margin. Thus, we reiterate ‘accumulate’ and largely retain our earnings estimates for FY24 and FY25. We roll over to March 2025E from December 2024E and thus, our target price is raised to Rs 8,638 from Rs 8,325 based on 15.5 times (unchanged) FY25E EV/EBITDA,” mentioned Elara Securities (India) Pvt Ltd.
On Friday, UltraTech Cement’s shares closed marginally up by 0.71 per cent at Rs 7,554.60 on the BSE.
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