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
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.