HDFC Securities: UltraTech Cement Speeding On Organic Expansions
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
Ultratech Cement Ltd. has charted out its expansion plans for the next three years, whereby it will increase its grey cement/clinker capacity in India by 19.5/11.4 million metric tonnes, respectively, entailing a total capex of Rs 65.3 billion.
Post this, its cement capacity in India will increase to 130 million metric tonnes by end FY23E/early FY24E. These should support its volume growth visibility FY24E onwards.
The capex rate is low, owing to approximately 50% brownfield expansions and lower clinker expansion needs.
Multiple split grinding units and waste heat recovery systems additions will also help control operating cost, supporting its strong margins.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.