UltraTech Cem. (ULTRACEMCO)

FairStock Score: 57/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Buffett's business quality and Graham's margin of safety. UltraTech at ₹11,619 and ₹3.42 lakh Cr market cap is a large, steady cement franchise. Cement is heavy, regional, and capital-intensive; scale and distribution matter. The numbers show a decent balance sheet: debt/equity 0.29, Altman Z 4.86, Piotroski 7/9, promoter holding 59.33%. Sales grew 19.54% and quarterly sales were ₹21,830 Cr, but net profit was ₹1,729 Cr, with profit growth only 7.41%. That tells me pricing power is not unlimited. ROE 10.64% and ROCE 10.89% are fair, not exceptional. Free cash flow is negative ₹5,163 Cr, so growth is consuming cash, perhaps for capex. The current ratio of 0.73 is below one, so liquidity deserves watching. Valuation is where Graham would push back hard. P/E 40, P/B 4.46, PEG 5.34, EV/EBITDA 180.78, and dividend yield 2.07%. Book value is ₹2,605.10, but Graham Number is ₹3,782.34. At ₹11,619, the margin of safety is -235.16%—I am paying a mighty premium for steady growth. The 5-year revenue CAGR of 12.35% is respectable, but profit growth of 7.41% does not justify a P/E of 40 on my math. FairStock Score 57/100 says steady, not screaming cheap. I would call it a Stalwart: a quality cyclical franchise, but not a bargain. For an Indian retail investor, the business is sound, but the price asks for perfection. I would wait for a wider margin of safety or evidence that cash flows turn positive before committing fresh capital.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer