🔍 At a Glance
UltraTech Cement is India’s cement overlord with over 22% market share and global ambitions. In the last 5 years, it’s added ~₹13,000 Cr in profit, nearly doubled revenue, and spent big on capacity expansion. Yet despite that—profit growth is flat, valuations are sky-high, and ROE is inching down. So is UltraTech still a compounding fortress… or a PE trap with limestone under the rug?
1. 🏭 Business Overview: Cement, M&A, and Birla Muscle
- 🧱India’s Largest Cement Company135+ MTPA capacity in grey cementMarket share: 22% of India’s installed capacityPresence in 5 countries
- 🔄Massive Expansion Mode
- ₹25,000 Cr investment announced in FY25 for 22.6 MTPA additional capacity
- Recent merger with Kesoram’s cement business = more east India dominance
- 💥Other Products
- White cement (Birla White)
- RMC (Ready Mix
- Concrete)
- Building solutions (B2C push in rural India)
Birla Group’s strategy here is simple: “If it’s not UltraTech, it’s not built to last.”
2. 📈 5-Year Financial Recap: Growth Cemented, Profits… Less So
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 44,726 | 52,599 | 63,240 | 70,908 | 75,955 |
| EBITDA | 11,568 | 11,514 | 10,620 | 12,969 | 12,547 |
| PAT | 5,462 | 7,334 | 5,073 | 7,004 | 6,040 |
| EPS (₹) | 189.3 | 254.4 | 175.4 | 242.7 | 204.9 |
| OPM % | 26% | 22% | 17% | 18% | 17% |
🏗️ Revenue: ✅ +70% in 5 years💰 PAT: ❌ Flat. 5Y CAGR =1% only📉 TTM PAT actuallydeclinedby 12% YoY
3. 💸 Valuation: Is the King Too Expensive?
- CMP: ₹11,579
- Market Cap: ₹3.41 Lakh Cr
- Book Value: ₹2,399
- P/B Ratio:4.8x
- P/E Ratio (TTM):56x
Let’s look at cement sector average:
| Company | P/E | ROCE |
|---|---|---|
| UltraTech | 56x | 10.9% |
| Shree Cement | 91x | 6.7% |
| Ambuja | 33x | 10.5% |
| JK Cement | 57x | 13.9% |
| ACC | 15x | 17.4% |
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