UltraTech Cement crosses Rs2 trillion in market cap as stock hits record high

ultratech cement

MUMBAI: Aditya Birla Group’s cement subsidiary UltraTech Cement on Friday crossed Rs2 trillion in market capitalisation, with the stock having rallied 14% in the week so far, led by a recovery in demand and reports of price hikes in the company’s key markets.

At 0150 pm, the UltraTech stock traded at Rs6,791 apiece on the BSE, having hit a record high of Rs6,945.70 earlier, with a market cap of ?2.01 trillion.

UltraTech Cement is the first cement company have Rs2 trillion in market cap. In the past six months, the stock has outperformed the broader market, soaring 76% against a 31% rise in the benchmark Sensex.

Following a 10% year on year (YoY) growth in cement volumes in October-December, Motilal Oswal Securities expects a 20% growth in January-March quarter supported by the low base of 4QFY20. Volumes had declined 13% YoY due to government-mandated lockdown in March last year.

“Demand has been robust over Jan–Feb (8–10% YoY), led by a strong uptick in urban real estate and infrastructure activity. Regionally, demand continues to be strong in East, North, and Central, while it has now revived in West. South, however, remains weak with around 10% YoY decline,” the brokerage firm said.

Last month, the company’s board of directors approved allotment of dollar denominated notes aggregating to Rs2,900 crore, due in February 2031 at a coupon of 2.80%, payable semi-annually on August and February of each year, commencing from August 2021 as per applicable laws.

UltraTech Cement reported a consolidated net profit of Rs1,584.34 crore for the quarter ended 31 December, up 123% from a year-ago period. Revenue from operations rose 17% to Rs12,254.12 crore.

News Source:- Livemint

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