Research Report of Ultratech Cement. -March 2012 Chairman- Shri Kumar Mangalam Birla Wholetime Director shri O P Puranmalka BSE code 532538 Industry Cement Face Value 10 Divident yield (%) 0.42% Book Value 446.62 52 H/L 1494/914 PE 16.87 Ind PE 9.06 Current Price 1425 EPS 84.13 Stop loss 1369 Report Date 2 March 12 Target 1490,1565 Target Period 3 to 6 Month
Registered Address Registrars ''B' Wing, Ahura Centre,' 2nd Foor,,Mahakali Caves Road, Mumbai 400093 Maharashtra PHONE: 022-66917800 FAX: 022-66928109 email: sharesutcl@adityabirla.com website: http://www.ultratechcement.com Sharepro Services Ltd. Satam Estate, 3rd Floor, Cardinal Gracious Road, Above Bank Of Baroda, Chakala, Andheri (E) Mumbai 400099 Maharashtra PHONE: 022-28215168, 28329828, 28215991, 28347719, 6772 0 FAX: 022-28375646 email: sharepro@shareproservices.com website:http://www.shareproservices.com Board of Directors Chairman Directors Kumar Mangalam Birla Rajashree Birla G M Dave N J Jhaveri S B Mathur S Rajgopal R C Bhargava Adesh Gupta Nirmalya Kumar V T Moorthy Wholetime Director D D Rathi O P Puranmalka
Performance Chart Ownership Pattern Promotors & FII s continuously aquire stakes from public since last year. Index Comparison
About UltraTech UltraTech Cement Limited and its subsidiaries have an annual capacity of 52 million tonnes, making it among the top 10 producers of cement globally. UltraTech is also the largest manufacturer of White Cement in India. The company manufactures and markets Ordinary Portland Cement, Portland Slag Cement and Portland Pozzalana Cement, Ready Mix Concrete (RMC), White Cement, Building Products and offers Building Solutions. UltraTech has 11 integrated plants, 15 grinding units, five bulk terminals and 92 RMC plants spanning India, UAE, Bahrain, Bangladesh and Sri Lanka. UltraTech Cement is also India s largest exporter of cement clinker reaching out to meet demand in countries around the Indian Ocean, Africa, Europe and the Middle East. UltraTech's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Cement Lanka (Pvt.) Ltd, and UltraTech Cement Middle East Investments Limited, which completed the acquisition of ETA Star Cement together with its operations in the UAE, Bahrain and Bangladesh, and acquired management control. Manufacture UltraTech is India's largest exporter of cement clinker. UltraTech Cement has 11 integrated plants, 15 grinding units, five bulk terminals and 92 RMC plants spanning India, UAE, Bahrain, Bangladesh and Sri Lanka. Most of the plants have ISO 9001, ISO 14001 and OHSAS 18001 certification. In addition, two plants have received ISO 27001 certification and four have received SA 8000 certification. The process is currently underway for the remaining plants. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country's total exports. The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in the company's strategy for growth. Products UltraTech's products include Ordinary Portland cement, Portland Pozzolana cement and Portland blast furnace slag cement.
(Rs. in Million) Balance Sheet Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007 SOURCES OF FUNDS Share Capital 2740.40 1244.90 1244.90 1244.90 1244.90 Share warrants & Outstandings 47.80 19.90 16.80 7.70 0.00 Total Reserve 103872.20 44821.70 34759.30 25717.30 16392.90 Shareholder's Funds 106660.40 46086.50 36021.00 26969.90 17637.80 Secured Loans 27897.60 8541.90 11758.00 9826.60 11512.50 Unsecured Loans 13548.40 7503.30 9658.30 7578.40 4273.80 Total Debts 41446.00 16045.20 21416.30 17405.00 15786.30 Total Liabilities 148106.40 62131.70 57437.30 44374.90 33424.10 APPLICATION OF FUNDS : Gross Block 179422.70 80781.40 74010.20 49726.00 47847.00 Less: Accumulated Depreciation 65420.20 31364.60 27653.30 24721.40 22674.20 Less: Impairment of Assets 0 0 0 0 0 Net Block 114002.50 49416.80 46356.90 25004.60 25172.80 Lease Adjustment A/c 0 0 0 0 0 Capital Work in Progress 10594.70 2580.40 6649.30 22479.70 6903.10 Pre-operative Expenses pending 458.50 13.30 123.50 351.80 66.40 Assets in transit 0 0 0 0 0 Investments 37303.20 16695.50 10348.00 1709.00 4834.50 Current Assets, Loans & Advances Inventories 19565.20 8217.00 6919.70 6097.60 4335.80 Sundry Debtors 6022.90 2158.30 1939.40 2166.10 1835.00 Cash and Bank 1447.90 837.30 1044.90 1006.90 895.90 Other Current Assets 12.20 0 0 0 0 Loans and Advances 10538.80 3511.30 3815.60 3768.30 2535.00 Total Current Assets 37587.00 14723.90 13719.60 13038.90 9601.70 Less : Current Liabilities and Provisions Current Liabilities 28804.10 11380.80 11209.20 11530.10 7367.10 Provisions 5734.90 1610.10 1321.50 1255.50 184.70 Total Current Liabilities 34539.00 12990.90 12530.70 12785.60 7551.80 Net Current Assets 3048.00 1733.00 1188.90 253.30 2049.90 Miscellaneous Expenses not written off 0 0 0 0 0 Deferred Tax Assets / Liabilities -17300.50-8307.30-7229.30-5423.50-5602.60 Total Assets 148106.40 62131.70 57437.30 44374.90 33424.10 Contingent Liabilities 6561.00 1833.20 1886.30 1538.50 1934.60
(Rs. in Million) P & L A/c Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007 No of Months 12 12 12 12 12 Gross Sales 148586.00 77291.30 71604.20 62858.00 54840.40 Less :Inter divisional transfers 0 0 0 0 0 Less: Sales Returns 0 0 0 0 0 Less: Excise 16486.90 6794.50 7773.40 7770.20 5735.20 Net Sales 132099.10 70496.80 63830.80 55087.80 49105.20 EXPENDITURE : Increase/Decrease in Stock -618.40 22.70-887.60-266.30 325.40 Raw Materials Consumed 19275.10 10243.50 7044.60 5504.50 5796.60 Power & Fuel Cost 31261.20 14323.50 17290.50 12550.50 11398.50 Employee Cost 6627.10 2465.10 2126.40 1631.50 1138.60 Other Manufacturing Expenses 14253.90 7186.50 6932.00 5756.10 5114.40 General and Administration Expenses 3399.90 1340.00 1264.30 1053.40 841.80 Selling and Distribution Expenses 31689.40 14778.80 12436.60 11430.20 10064.50 Miscellaneous Expenses 892.40 459.50 666.50 303.20 292.50 Expenses Capitalised 105.10 40.20 83.80 133.70 45.20 Total Expenditure 106675.50 50779.40 46789.50 37829.40 34927.10 PBIDT (Excl OI) 25423.60 19717.40 17041.30 17258.40 14178.10 Other Income 2866.70 1220.20 1058.40 1007.10 614.60 Operating Profit 28290.30 20937.60 18099.70 18265.50 14792.70 Interest 2771.10 1175.20 1255.10 823.10 868.30 PBDT 25519.20 19762.40 16844.60 17442.40 13924.40 Depreciation 7657.30 3880.80 3230.00 2372.30 2262.50 Profit Before Taxation & Exceptional Items 17861.90 15881.60 13614.60 15070.10 11661.90 Exceptional Income / Expenses 0 0 0 0 0 Profit Before Tax 17861.90 15881.60 13614.60 15070.10 11661.90 Provision for Tax 3819.60 4949.20 3844.40 4994.00 3839.10 PAT 14042.30 10932.40 9770.20 10076.10 7822.80 Extraordinary Items 0 0 0 0 0 Adj to Profit After Tax 0 0 0 0 0 Profit Balance B/F 27293.70 24384.00 15981.20 7751.60 1805.70 Appropriations 41336.00 35316.40 25751.40 17827.70 9628.50 Equity Dividend (%) 60.00 60.00 50.00 50.00 40.00 Earnings Per Share (Rs.) 51.24 87.82 78.48 80.94 62.84 Book Value (Rs.) 389.04 370.04 289.21 216.58 141.68
Key Financial Ratio Mar 2011 Mar 2010 Mar 2009 Mar 2008 Mar 2007 Operational & Financial Ratios Earnings Per Share (Rs) 51.24 87.82 78.48 80.94 62.84 CEPS(Rs) 79.18 118.99 104.43 100.00 81.01 DPS(Rs) 6.00 6.00 5.00 5.00 4.00 Book NAV/Share(Rs) 389.04 370.04 289.21 216.58 141.68 Tax Rate(%) 21.38 31.16 28.24 33.14 32.92 Margin Ratios Core EBITDA Margin(%) 17.11 25.51 23.80 27.46 25.85 EBIT Margin(%) 13.89 22.07 20.77 25.28 22.85 Pre Tax Margin(%) 12.02 20.55 19.01 23.97 21.27 PAT Margin (%) 9.45 14.14 13.64 16.03 14.26 Cash Profit Margin (%) 14.60 19.17 18.16 19.80 18.39 Performance Ratios ROA(%) 13.36 18.29 19.19 25.90 26.82 ROE(%) 18.39 26.64 31.03 45.18 55.84 ROCE(%) 19.63 28.53 29.21 40.86 42.97 Asset Turnover(x) 1.41 1.29 1.41 1.62 1.88 Sales/Fixed Asset(x) 1.14 1.00 1.16 1.29 1.17 Working Capital/Sales(x) 48.75 44.60 60.23 248.16 26.75 Efficiency Ratios Fixed Capital/Sales(x) 0.88 1.00 0.86 0.78 0.86 Receivable days 10.05 9.68 10.46 11.62 11.85 Inventory Days 34.12 35.74 33.18 30.29 27.06 Payable days 39.63 48.80 57.10 57.87 39.40 Valuation Parameters PER(x) 22.13 13.17 7.02 9.64 12.26 PCE(x) 14.32 9.72 5.28 7.80 9.51 Price/Book(x) 2.91 3.12 1.91 3.60 5.44 Yield(%) 0.53 0.52 0.91 0.64 0.52 EV/Net Sales(x) 2.65 2.26 1.39 2.06 2.26 EV/Core EBITDA(x) 12.40 7.60 4.92 6.21 7.49 EV/EBIT(x) 17.00 9.33 5.98 7.14 8.84 EV/CE(x) 2.37 2.56 1.55 2.56 3.32 M Cap / Sales 2.35 2.04 1.07 1.76 1.95 Growth Ratio Net Sales Growth(%) 87.38 10.44 15.87 12.18 48.83 Core EBITDA Growth(%) 35.12 15.68-0.91 23.48 150.19 EBIT Growth(%) 20.97 14.71-6.44 26.84 233.93
PAT Growth(%) 28.45 11.90-3.04 28.80 240.48 EPS Growth(%) -41.65 11.90-3.04 28.80 240.23 Financial Stability Ratios Total Debt/Equity(x) 0.39 0.35 0.59 0.65 0.90 Current Ratio(x) 1.09 1.13 1.09 1.02 1.27 Quick Ratio(x) 0.52 0.50 0.54 0.54 0.70 Interest Cover(x) 7.45 14.51 11.85 19.31 14.43 Total Debt/Mcap(x) 0.13 0.11 0.31 0.18 0.16 Disclaimer: All data and reports at www.stocknv.com are Technical as well as Fundamental Analysis based & it s only information services for investors and are not individualized recommendations to buy or sell securities, nor solicitation of an offers to any person with respect to the purchase or sale of the stocks/futures. The author may be trading in, or have positions in the securities mentioned in this newsletter or our calls. We do not accept any liability arising from the use of this document. The recipient & reader of this material should rely on their own investigations and take professional advice. Subscribers, recipients and readers using the information contained herein are solely responsible for their actions and shall not hold the Author liable for any investment decisions/ actions or any other action (including abstaining from action) based on the Content provided. Exit and entry prices are only informative. Trading and investment in stock market is risky and volatile. We do not take any compensation of any kind whatsoever from any company that they mention on this web site. Each user shall be responsible for the risks of their own investment activities. Transactions between you and www.stocknv.com shall be governed by and construed in accordance with the laws of India, without regard to the laws regarding conflicts of law. Any litigation regarding this agreement or any transaction between customer and www.stocknv.com or any action at law or in equity arising out of or relating to these agreement or transaction shall be filed only in the Competent Courts of Pune alone and the customer hereby agrees, consents and submits to the jurisdiction of such courts for the purpose of litigating any such action. This document may not be reproduced, distributed or published, in whole or in part, by any recipient hereof for any purpose without prior permission.