Shares of this Large-cap cement company opened their trading session on Monday in green after the company’s board approved a capex plan for capacity expansion worth Rs 13,000 crores.
With a market capitalization of Rs. 2.37 lakh crores, the shares of Ultra Tech Cement Limited opened its Monday trading session on a positive note. The share opened at the Rs. 8,242 level. In the morning session, the share reached a high of Rs. 8,340 apiece making a gain of around 2 percent.
The positive momentum was observed after the company in an exchange filing mentioned that the board has approved 3rd phase of growth with an investment of Rs. 13,000 crores towards increasing the capacity by another 21.9 Million Tonnes Per Annum (MTPA) with a mix of brownfield and greenfield projects. Currently, the company has a capacity of 132.45 MTPA.
The commercial production from these new capacities is expected to start in a phased manner from FY26 onwards and will increase the Company’s cement capacity to 187 MTPA globally.
Furthermore, the company mentioned that the expansion also includes investments in setting up an additional 39 MW WHRS capacity at a cost of Rs. 453 crores and Rs. 180 crores towards handling equipment and fuel feeding.
Digging into the financials of the company, the revenue of the company was Rs. 16,012 crore during Q2 FY24 and the company recorded a net profit of Rs. 1,281 crore during the same period.
Looking at the important ratio of the company, the return on equity declined from 15.18 percent during FY 21-22 to 9.7 percent during FY 22-23. In addition to this, the return on capital employed also marginally declined from 14.86 percent to 13.2 percent during the same timeframe.
According to the latest shareholding pattern, Promoters of the company have 59.96 percent in the company’s stake, the company has a high FII holding of 16.64 percent, DIIs have 15.10 percent share, and the remaining 7.78 percent is with the public.
Headquartered in Mumbai, UltraTech Cement Limited is an Indian multinational cement company.UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. In India, It is the largest manufacturer of grey and white cement.
Written By Vaibhav Patil
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