Synopsis: UltraTech Cement's stock gains momentum following a strong Q4. Considering this, what's your strategy: buy, sell, or hold?
UltraTech Cement demonstrated strong performance in Q4FY24, with its consolidated revenue reaching INR20,419 crore, marking a 9.4% year-on-year increase. Operating at a margin of 20.81%, the company achieved an EBITDA of INR4,250 crore.
Following the release of its Q4 results, UltraTech Cement's stock surged over 2% on Tuesday. The company's consolidated net profit for the January-March period soared by 36% year-on-year to INR2,258 crore, surpassing expectations, primarily attributed to reduced fuel costs and a notable increase in volume.
UltraTech Cement underscored a 13% reduction in imported fuel consumption costs compared to the same quarter last year, maintaining consistency quarter-on-quarter. Notably, the company operated at a robust 98% capacity utilization during the quarter and 85% for the full fiscal year.
Brokerages commended UltraTech Cement's Q4 performance, citing an 11% beat in reported EBITDA and emphasizing its potential for market share growth and profitability. They maintained optimistic ratings and adjusted price targets accordingly, foreseeing sustained volume growth and improved operational efficiency.
Despite challenges such as cement price declines, UltraTech Cement achieved record-high quarterly EBITDA, propelled by strong volume growth and effective cost management strategies. Brokerages anticipate further margin expansion driven by operational efficiencies and increased utilization of green energy sources.
As trading commenced, UltraTech Cement shares climbed by 0.82% to INR10,044.20 apiece on the BSE, reflecting positive investor sentiment and confidence in the company's future prospects.
In summary, UltraTech Cement's Q4FY24 performance demonstrated resilience, efficiency, and strategic foresight, positioning the company for continued growth and value creation in the competitive cement industry.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
