UltraTech Cement - A Preferred Play On Demand Revival: ICICI Securities 
Samples of cement are seen in an arranged photograph. (Photographer: Asim Hafeez/Bloomberg)

UltraTech Cement - A Preferred Play On Demand Revival: ICICI Securities 

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ICICI Securities Report

We expect UltraTech Cement Ltd. to be the key beneficiary of likely strong demand revival over the next few years given its low clinker utilisation, diversified market mix and significant non-trade presence versus peers.

Announced expansion of approximately 20 million tonne would drive strong volume growth and with strong operating cash flow generation of more than Rs 110 billion per annum., the company may further accelerate its growth plans.

Costs/tonne could further reduce by Rs 100/tonne by FY24E (our estimate) led by various cost efficiencies and return on capital employed is likely to expand by ~400 basis points over FY21-23E.

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ICICI Securities UltraTech Cement Update.pdf

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