UltraTech Cement Ltd.
ISIN: INE481G01011 • Market Cap: ₹3.38 Lakh Cr
The 5-Pillar Quality Audit for UltraTech Cement Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.2%), Return on Capital Employed (12.1%), and equity compounding (10.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.30 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.0%) and 3Y PAT CAGR (7.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 39.55 vs PEG of 2.55 and Dividend Yield of 2.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 59.3%, backed by 32.6% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (32.6%)
Mutual funds, domestic DIIs, and foreign FIIs hold 32.6%, providing strong governance scrutiny.
Consistent Market Standing (Large Cap)
Established player in the Construction Materials sector with an overall fundamental quality score of 69/100.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Construction Materials)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction Materials space.
Quantitative Strategy Eligibility
Checking ULTRACEMCO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 69/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Materials Sector Peer Comparison
Compare ULTRACEMCO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| UltraTech Cement Ltd. (ULTRACEMCO)Current | 69/100 | ₹3.38 Lakh Cr | 39.55 | 12.1% | 0.30 | — |
| Grasim Industries Ltd. (GRASIM) | 60/100 | ₹2.24 Lakh Cr | 39.36 | 6.6% | 2.19 | View |
| Ambuja Cements Ltd. (AMBUJACEM) | 72/100 | ₹1.01 Lakh Cr | 23.05 | 5.0% | 0.00 | View |
| Shree Cement Ltd. (SHREECEM) | 61/100 | ₹87,893 Cr | 53.92 | 10.6% | 0.07 | View |
| J.K. Cement Ltd. (JKCEMENT) | 64/100 | ₹40,803 Cr | 43.15 | 13.7% | 0.86 | View |
| Dalmia Bharat Ltd. (DALBHARAT) | 63/100 | ₹35,169 Cr | 37.69 | 7.1% | 0.38 | View |
Frequently Asked Questions: UltraTech Cement Ltd.
Q:What is the 5-Pillar Fundamental Score for UltraTech Cement Ltd. (ULTRACEMCO)?
UltraTech Cement Ltd. has a RupeeTools Fundamental Score of 69/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (62/100), Financial Health (83/100), Growth (55/100), Valuation (60/100), and Ownership Quality (85/100).
Q:Is ULTRACEMCO fundamentally strong for long-term investment?
ULTRACEMCO currently holds a moderate quality rating of 69/100. While it operates in the Construction Materials sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does ULTRACEMCO pass the Coffee Can Investing filter?
No. ULTRACEMCO does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ULTRACEMCO compare against other Construction Materials peers?
Within India's Construction Materials sector, ULTRACEMCO trades at a P/E of 39.55 and generates an ROCE of 12.1%. Compare its 5-Pillar score of 69/100 against top sector peers like Grasim Industries Ltd. (60/100), Ambuja Cements Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.