On the valuation front, considering its estimated FY25’s earnings, the stock of UltraTech is trading at an EV/Ebitda of 14.4.
Synopsis
For the past four quarters, margins of cement firms have been largely impacted by high raw material costs. But in the year-to-date (YTD) period in 2023, pet coke and thermal coal prices have fallen close to 40%. This should provide relief to cement firms and elevate their margins.
ET Intelligence Group: UltraTech Cement is gearing up to make the most of falling raw material prices and improving demand, helping boost operating margins at India’s biggest manufacturer of the primary building material. The company scores well on all four margin-improving variables: Cost, capacity expansion, balance sheet and price increases.For the past four quarters, margins of cement firms have been largely impacted by high raw material
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