12157.0000 -116.00 (-0.95%)
NSE Aug 08, 2025 15:31 PM
Volume: 201.8K
 

12157.00
-0.95%
Motilal Oswal
27 November 2019 Century assets generated nil EBITDA in 2QFY20, impacting UTCEMs profitability by 10%. However, Century assets have started showing signs of a turnaround, which will likely drive an improvement in earnings over the next six quarters. We forecast Century EBITDA to increase to INR1.6b in 4QFY20 and ~INR7b in FY21, contributing 5% and 6%, respectively, of the companys consol. Realization will likely improve in 4QFY20 as most of Centurys capacities transition to the UltraTech brand by Dec19, bettering pricing by INR12-15/bag. Sensex - Rebased When UTCEM had acquired JPA (21.2 MMTPA) and Binani (6.25 MMTPA) in Jun17 and Nov18 respectively, their EBITDA was only INR100-300/t. However, the company successfully turned these acquisitions around to generate estimated EBITDA of ~INR1,300/t, driven by cost reduction, rebranding and cement price hikes. We expect strong FCF generation of >INR75b per annum (7% yield) from FY20, which should drive deleveraging and stock price appreciation.
UltraTech Cement Ltd. is trading above its 200 day SMA of 11476.2
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