Low Pro­duc­tion Cost, Pan-In­dia Reach Give Ul­traT­ech the Edge

The lat­est ac­qui­si­tion of JP As­so­ci­ates’ as­sets will in­crease mar­ket share to 22%, help­ing the com­pany emerge as bet­ter price-maker in key mar­kets

The Economic Times - - Smart -

creas­ing prices to make the most of de­mand growth.

Post the ac­qui­si­tion of ce­ment as­sets of JP As­so­ci­ates, the com­pany’s net debt-to-equity is well within ac­cept­able lim­its of 1. On the val­u­a­tion front, con­sid­er­ing FY17 es­ti­mates, the com­pany’s stock com­mands price-earn­ings mul­ti­ple (P/E) of 32.2 com­pared with the FY15 P/E of 44.1.

Given its lead in ca­pac­ity, size, su­pe­rior op­er­a­tional per­for­mance and pres­ence, the stock looks at­trac­tive at the cur­rent val­u­a­tion.

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