UltraTech Cement Ltd.
NSE: ULTRACEMCOUltraTech Cement Ltd.: A 30-second snapshot
UltraTech Cement (ULTRACEMCO) is India's largest cement producer by capacity, currently priced at ₹11,232 — below both its 50-DMA (₹11,508) and 200-DMA (₹12,016) — with a trailing PE of 40.4, ROE of 10.59%, and a 14.32% drawdown from its 52-week high. Revenue has grown at a 3% five-year CAGR while the debt trend is rising and five-year earnings growth data is unavailable. Analyst coverage spans 39 analysts with a mean rating of 1.16 on a 1–5 scale (lower = more constructive), alongside a forward PE of 25.7 that embeds significant implied earnings growth relative to trailing results.
P/E
40.4
Forward P/E
25.7
ROE
+10.6%
Debt / Equity
29.43
Profit Margin
+9.2%
Div. Yield
+0.7%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
42/100
News
8 headlines · 1 positive · 3 negative
UltraTech Cement gets ₹808.78 crore tax demand for FY24; to file appeal - ETLegalWorld.com
ETLegalWorld.com
Ultratech Cement gets tax demand of 8.09 billion rupees - marketscreener.com
marketscreener.com
UltraTech Cement Receives Rs.808.78 Crore Income Tax Demand for Assessment Year 2023-24 - scanx.trade
scanx.trade
UltraTech Cement board to meet on July 20 for Q1FY27 results - scanx.trade
scanx.trade
UltraTech Cement Ltd stock (INE469A01017): India's cement leader expands capacity amid infrastructur - AD HOC NEWS
AD HOC NEWS
Recent context
- ·UltraTech received a ₹808.78 crore income-tax demand for FY24 in early May 2026 and announced it would file an appeal; the demand relates to Assessment Year 2023-24 and has been covered across multiple financial news outlets.
- ·The board has scheduled a meeting on July 20, 2026 to announce Q1FY27 results, marking the next material earnings disclosure date for the company.
- ·Recent coverage includes a positive note on capacity expansion amid infrastructure demand, contrasting with the negative tax-demand headlines that dominate the current news cycle (3 negative, 1 positive, 4 neutral of 8 recent items).
Strengths
- +FCF-positive in 4 of the available fiscal years, indicating the business has generated cash above capital expenditures in most periods despite ongoing capacity expansion.
- +ROE of 10.59% ranks second among the 5 peers with available ROE data (GRASIM 6.29%, AMBUJACEM 8.31%, DALBHARAT 6.50%, ACC 10.93%), reflecting relatively stronger capital return within the peer set.
- +Trailing PE of 40.4 compresses to a forward PE of 25.7 — a 37% contraction — suggesting the analyst consensus is pricing in meaningful near-term earnings improvement, which if realised would reduce the valuation premium versus peers like Ambuja (PE 22.9) and ACC (PE 12.0).
- +Capacity expansion narrative persists in recent coverage, consistent with UltraTech's multi-year strategy of gaining market share in India's infrastructure-driven cement demand cycle.
Weaknesses
- −ROE has not exceeded 15% in any year of available history and the quality score of 31 ranks 4th of 6 cement peers, indicating capital efficiency below what the scale and market position of the company might imply.
- −The stock has declined 13.87% over 3 months and 1.03% over 12 months, trading below both its 50-DMA and 200-DMA for an extended period, with RSI at 39.72 approaching oversold territory.
- −Debt trend is rising and the D/E figure of 29.43 warrants scrutiny; five-year earnings growth data is absent from the available dataset, leaving the earnings-growth thesis supporting the forward PE of 25.7 unverifiable from this data.
- −A ₹808.78 crore income-tax demand for Assessment Year 2023-24 has been contested by the company via appeal, representing an unresolved contingent liability that could affect reported earnings if the demand is upheld.
Open questions
- ?Does the rising debt trend reflect strategic capacity investment with a clear return timeline, or does it represent structural leverage accumulation that compresses future FCF?
- ?If the ₹808.78 crore tax demand is upheld on appeal, how would the one-time charge affect the earnings trajectory that the 25.7 forward PE is pricing in?
- ?Given that ROE has not crossed 15% in the available history, what conditions — pricing power, volume growth, or cost reduction — would need to materialize for capital efficiency to reach peer-leading levels?
- ?How has UltraTech's cement realisation per tonne trended relative to input cost inflation, and does the forward PE compression rest on volume assumptions, margin recovery, or both?
Peer comparison: Cement
Ranks 4 of 6 on qualityTechnical state
Current price
₹11,232.00
SMA 50
₹11,508.44
SMA 200
₹12,016.38
RSI (14)
39.7 (neutral)
From 52w high
-14.3%
1Y return
-1.0%
3M return
-13.9%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumROE of 10.59% has not crossed 15% in any year of available history; quality score of 31 ranks 4th among 6 cement peers, and the consistency score of 43 reflects uneven capital efficiency relative to sector scale.
- mediumAt ₹11,232, the stock sits below both the 50-DMA (₹11,508) and the 200-DMA (₹12,016); it has declined 13.87% over 3 months and 1.03% over 12 months, with a 14.32% drawdown from its 52-week high.
- mediumDebt-to-equity of 29.43 is reported with a rising debt trend; 5-year earnings growth data is unavailable, making it difficult to assess whether the trailing PE of 40.4 is supported by a structural earnings ramp or cyclical volume.
- mediumThree of 8 recent news items are negative, driven by a ₹808.78 crore income-tax demand for FY24 (Assessment Year 2023-24); the company has indicated it will file an appeal, but the contingent liability is unresolved.
- lowAll 5 peer priceChange1Y values are null, removing the sector-relative price performance dimension from ranking; ULTRACEMCO ranks 4th of 6 on quality score and 4th of 6 on PE among peers with available data.
Cross-section contradictions
- Forward PE of 25.7 is 37% below the trailing PE of 40.4, implying the analyst consensus embeds substantial near-term earnings acceleration; with 5-year earnings growth unavailable, the basis for that implied growth cannot be independently verified from the data at hand.
- News sentiment is net-negative (3 negative, 1 positive of 8 items) and the stock is down 14.32% from its 52-week high, yet 39 analysts cover the stock with a mean rating of 1.16 on a 1-5 scale — operational and sentiment headwinds coexist with a constructive analyst posture.
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Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days