UltraTech Cement Receives Upgraded Stock Call from MarketsMOJO, Shows Strong Financial Standing and Healthy Growth

UltraTech Cement, a leading player in the cement industry, has recently received an upgraded stock call from MarketsMOJO. The company, which falls under the largecap category, has been upgraded to a 'Hold' rating on 22nd November 2024.
One of the main reasons for this upgrade is the company's strong ability to service its debt. With a low Debt to EBITDA ratio of 1.31 times, UltraTech Cement has shown a solid financial standing. Additionally, the company has also displayed healthy long-term growth with an annual net sales growth rate of 10.62%.

From a technical standpoint, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on 22nd November 2024. This is supported by multiple bullish factors such as MACD, Bollinger Band, and KST.

Another positive aspect of UltraTech Cement is its high institutional holdings at 32.71%. This indicates that these investors have better capabilities and resources to analyze the company's fundamentals compared to retail investors.

In terms of performance, UltraTech Cement has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, generating a return of 29.09% in the last 1 year alone. With a market cap of Rs 3,15,432 crore, it is the largest company in the cement sector, constituting 34.88% of the entire sector. Its annual sales of Rs 70,863.20 crore also make up 18.77% of the industry.

However, the company did face some negative results in September 2024, with a -36.0% fall in PAT(Q) and the lowest OPERATING PROFIT TO INTEREST (Q) at 6.36 times. The DEBT-EQUITY RATIO(HY) also reached its highest at 0.28 times. Additionally, with a ROCE of 12.7, the company's valuation is considered very expensive with a 4.7 Enterprise value to Capital Employed.

Despite these challenges, UltraTech Cement is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 29.09%, its profits have risen by 15.5%, resulting in a PEG ratio of 3.2. Overall, with its strong financial standing, healthy growth, and market-beating performance, UltraTech Cement is a stock worth considering for a 'Hold' position in one's portfolio.