UltraTech’s products include Ordinary Portland cement, Portland Pozzolana cement and Portland blast-furnace slag cement.
What is UltraTech premium cement?
UltraTech Premium – UltraTech Premium is a concrete special cement, produced in UltraTech’s state-of-the-art manufacturing facilities with carefully selected premium ingredients to deliver to the customer cement that produces both exceptionally strong as well as exceptionally durable concrete.
- Quality assurance is an integral part of UltraTech’s manufacturing philosophy.
- The quality attributes of UltraTech Premium are consistently ensured through rigorous application of advanced technology, constant quality monitoring with high precision equipment and adherence to ISO certified systems and procedures.
UltraTech Premium’s composition comprising high quality clinker blended with judicious amounts of superior blast furnace slag having high glass content, gypsum devoid of deleterious materials and optimum PSD (Particle Size Distribution) ensures its unsurpassable performance year on year.
UltraTech Premium Cement can be used for varied building construction processes which include all types of PCC, masonry and plaster works. UltraTech Premium is also extensively used for mass applications like large foundations, dams, concrete roads among others. It is ideal for RCC in marine and aggressive environments due to its superior resistance to attack of sulphates and chlorides.
It can be used for structures below the ground and for those that are in contact with water. UltraTech Premium, with superior 28-day compressive strength, forms an ideal solution for critical applications such as slabs, columns, beams and roofs. UltraTech Premium is packaged in classy, polypropylene laminated box shaped bags, which are tamper proof and can withstand the toughest of handling.
Which cement is best UltraTech vs ACC?
So it is no surprise that India is the second most populous country in the world as well as the second largest producer of cement. According to the Cement Manufacturers Association, India’s total installed capacity is 540 million tonnes. The top five players control half of the country’s production.
In today’s article we Compare and differentiate the two top cement players, UltraTech Cement and Acc. The idea is to study their past, eliminate risks and profit from their future. background ACC: ACC is one of the oldest cement companies in India with a rich history. It was purchased in 2004 by the Swiss based Holcim Group, the world leader in cement.
It has a total installed capacity of 30m tonnes and an annual output of mt. ACC has a market share of 10% in India. UltraTech Cement: Over the past decade, UltraTech Cement has evolved from organic and inorganic forms. It has almost doubled its capacity to 100m tonnes.
The company has a market share of 25 per cent. The Aditya Birla Group cement giant grew aggressively after absorbing Grasim’s cement business in 2010. This made it the largest cement company in India. Both ACC and UltraTech Cement operate cement plants in all regions of India. Now this augurs well for a cement company.
The logic behind this is simple. It is not economical to transport cement remotely. This makes the business quite regional. Exposure to a single market makes a company vulnerable to price fluctuations in that sector. But ACC and UltraTech, unlike their smaller peers, operate plants in multiple regions. Construction activity across the country is the primary driver for any increase in cement demand. This includes not only housing projects in urban and rural areas (65% of the total demand for cement), but also infrastructure activities such as construction of roads, bridges, highways, metros, etc. (the remaining 35%). increase in revenue see full image Source: Equitymaster UltraTech’s 5-year compound annual growth (CAGR) revenue has tripled compared to ACC. The drive comes on the back of massive capacity expansion coupled with huge demand for housing and infrastructure projects across the country. profitability see full image Source: Equitymaster A cement company’s profitability is best reflected in its earnings before interest depreciation tax (EBIDTA per tonne) per tonne. Simply put, it is the profit from core operations (before interest and depreciation) on each tonne of cement sold by the company.
- A high level of profitability is usually the result of two things; Either the company operates in highly profitable sectors or it maintains tight control over its costs.
- While UltraTech and ACC enjoy captive resources for raw materials and power supply, ACC’s operating costs have always been high.
- The primary reason is its old plant and machinery.
These often require unexpected maintenance. This affects the operating profit of the company. In contrast, UltraTech’s plant and machinery is relatively new, which is driving it. Furthermore, both the companies are equally adept at reining in their costs.
- Even though ACC operates plants across the country, a major part of its cement plants are in the southern region of India.
- Due to excess cement capacity in South India, the supply-demand dynamics there have been generally unfavourable for cement producers.
- For ACC, this southern exposure in conjunction with an uncertain cost structure has impacted the company’s profitability.
Dividend Dividend is the income that an investor can earn from shares in addition to the increase in the value of the stock. Due to the capital intensive nature of the business, cement companies are not dividend payers. This is reflected in the five-year average dividend yields for ACC Cement and UltraTech Cement: 0.6% and 0.5%, respectively. see full image Source: Equitymaster This ratio measures the level of debt a company takes on to finance its operations or expansion against the level of equity available. Generally, a favorable debt-to-equity ratio is less than 1.0, while a risky debt-to-equity ratio is greater than 2.0.
While ACC enjoys debt-free status, UltraTech has borrowed funds for its massive expansion over the past decade. But assuming that it has been less than 1 and is falling, it does not raise a red flag. Return on Capital Employed (ROCE) Return on capital employed is one of the most meaningful indicators of a company’s profitability and efficiency.
It is an excellent tool for analyzing the returns of a capital intensive industry like cement. It tells you what a company generates on the total capital it invests (shareholders’ equity plus borrowed funds). see full image Source: Equitymaster The 5-year average for ACC is higher than for UltraTech. While this usually means that the ACC is generating higher returns by efficiently employing its capital, in this case, it may be different. UltraTech’s new capacity addition is yet to generate substantial profits, affecting its return on capital employed at present.
But over the next few years, as new capacity becomes profitable and reduces the amount of money borrowed, this number must increase. Evaluation The most common and effective ratios for comparative analysis and valuation are the price-to-earnings (PE) and price-to-book (PB) value ratios. The PE ratio uses a company’s earnings to determine the rupee value of a shareholder’s earnings.
The PB ratio uses a company’s book value to determine this. see full image Source: Equitymaster The PE and Pb ratios for ACC are 20.4 and 3.2, respectively. The average for the last 10 years is 25.9 and 2.9 respectively. PE and PB for UltraTech Cement stood at 31.5 and 4.6, respectively. The ten year averages are 32.4 and 3.8 respectively.
Both companies are trading at a premium to their 10-year averages, indicating that the shares are currently priced higher. sustainability efforts Climate change is one of the most serious issues facing humanity today. Governments around the world are grappling with the issue, forcing companies to become more environmentally friendly.
An important step in this direction for companies is to reduce their carbon emissions. Carbon emissions in cement companies are measured in terms of kilograms per ton of cemented material. Both ACC and UltraTech stand at 493 kg per tonne and 462 kg per tonne of cemented material.
Most of the carbon emissions associated with cement occur during production which is resolved using alternative components such as fly ash and slag. Getting energy from renewable sources is another helpful step towards sustainability.13% of UltraTech’s energy requirement is met through renewable energy capacity, while 4% of ACC’s energy requirement is met through renewable energy capacity.
UltraTech is 3.9 times water positive, meaning they return 3.9 times the amount of water to the community. The ACC is currently 1.1 times and is targeted to be 5 times by 2030. bright prospects Despite being the second largest cement producer in the world, India’s cement consumption per capita is 235 kg.
- This number is lower than the global average of more than 500 kilograms per capita.
- So there is a lot of room for growth going forward.
- The cement industry has witnessed massive capacity expansion over the past decade while the demand for cement remains sluggish.
- Historically, the ratio of growth in cement demand to GDP growth has been around 1.2x.
But due to slowdown in infrastructure projects, this ratio has been much lower than the previous average. Despite this excess supply, margins have not declined significantly. This is due to consolidation in the industry. The top 5 players control about 50% of the market.
This number is much higher at the regional level. However, with the rise in small and medium-sized cement players, the industry leaders are likely to lose their bargaining power. Equitymaster’s opinion We reached out to Tanushree Banerjee, co-head of research at Equitymaster, for her views on cement companies.
Here’s what he had to say Though cement companies have benefited from a quick recovery in the realty sector, cost pressures have kept their margins weak for some time. Cement companies may see some margin pick-up in the next few quarters due to easing of cost pressures.
At the same time, cement companies in India continue to be strong beneficiaries of megatrends in infrastructure and corporate capex. ACC or UltraTech: which is better? ACC is working with its parent company Ambuja Cement to maximize its production capacity and benefit from operational and financial synergies.
But it remains to be seen how beneficial these measures will be. Recording strong revenue and production growth along with high operating margins, UltraTech has been operating more efficiently than it has been in years. After massive expansion, UltraTech Cement is better positioned to capitalize on the growing demand as compared to its peers.
But with the recent rally in stock prices in the cement sector, both the companies seem to be overvalued. Before choosing a stock to invest in, take a look at each of the company’s fundamentals and valuations. They help in deciding which company is better for investment. Still confused which one is better? Use our feature-rich comparison tool to make a detailed comparison between any two companies.
The tool also includes a graphical analysis to make it easy for you to spot trends! ACC Vs UltraTech Cement As the cement sector stocks you are interested in, check out Equitymaster’s powerful Indian stock screener tool to find out the top cement companies in india, Disclaimer: This article is for informational purposes only.
Is UltraTech premium OPC or PPC?
OPC (Ordinary Portland Cement) Ultratech Premium Cement, Packaging Size: 50 Kg, Cement Grade: Grade 43.
Is UltraTech good for roof?
The best solution for protecting your home against water seepage in the long run, is waterproofing. Waterproofing is critical in the following areas of your home: – The bathrooms and kitchen as water is constantly used in these areas. The water tank in case it’s located on the roof. If there is a leak, water can seep in through the roof. Areas that are directly exposed to the elements like the roof, balcony and all outer walls and adjacent inner walls.
The basement since it’s in direct contact with the Earth and moisture from the ground. When it comes to waterproofing, UltraTech has a range of products like: It uses high-quality polymer additives and is ideal for terraces, roofs, water tanks and balconies. It is most suitable for areas that are less than 10,000 sq.
ft. It enhances the compressive strength and water tightness of concrete during construction It is similar to Flex in terms of properties and applications though it is ideal for areas greater than 10,000 sq. ft. : 4 Advantages of Waterproofing Your Home
Is UltraTech PPC good for slab?
Better for use in slabs : PPC or OPC OPC = Ordinary Portland Cement PPC : Pozzolonic Portland cement (FYI : PPC is environment friendly as it consists fly ash in some specific percentages by parts, which is a waste product of burnt coal, usually collected from thermal power plants) OPC (m53) attains strength in a shorter time, while PPC (m43) takes longer.
OPC therefore dries more quickly, but produces more heat during chemical reaction during which it gains strength, as compared to PPC Faster is the drying process, more is the risk of cracking of cement, and therefore it need more care and more amount of water for curing in a lesser time. PPC on the other hand can attain strength equal to OPC, but takes a longer time.
For a building slab, PPC is more widely used since it requires less care. The strength depends on design mix (the water cement and aggregate ratio) more than type of cement. so essentially, If you need construction to take place faster and have means for good curing, you may use OPC.
But you can always ask questions for necessity of specified materials and design.Both the OPC and PPC for RCC slabs of varying sizes and thicknesses.My views are :
PPC is economically better than OPC. Strengthwise, PPC is always grade 33 ( although this is never mentioned on the bag ) whereas OPC is availabie in grades 43 & 53. The setting process of PPC is slower than OPC and hence the striking off period for the form work gets extended by about 50%.
PPC has a relatively low heat emission process as compared to OPC and hence the finer shrinkage cracks which are normally seen on fresh RCC slab cast with higher grade cement are not seen with PPC. In case, a nominal mix is used for the concrete ( say 1:1.5: 3 ), which assumes grade 33 cement is used, PPC matches the strength requirements.
If design mix is opted, the laboratory does consider the exact strength available from the specific brand/ grade of cement being deployed, Thus use of OPC or PPC cement shall be properly weighed in the design mix. In the backdrop of this, my preferred use shall be PPC at site since : It’s environment friendly.
Is UltraTech 53 a grade?
UltraTech Cement Ltd. is revolved around a feasible future. Product Specification.
|Cement Grade||Grade 53|
|Packaging Size||50 kg|