Dismal volume growth was a key disappointment in UltraTech Cement Ltd’s September quarter earnings. At 17.77 million tonnes, its cement sales volumes fell by 2% on a year-on-year basis, mainly impacted by the heavy and extended monsoon. In short, the fact that even a market leader like UltraTech Cement isn’t immune to demand slump won’t go down well with investors. At a one-year forward EV/Ebitda of 13 times, UltraTech Cement is the second-most expensive Indian cement stock. It is already known that UltraTech Cement has been very aggressive on acquisitions in the recent past, keeping its debt elevated.

Source: Mint October 22, 2019 01:30 UTC