UltraTech Cement Declares Highest-Ever Dividend of Rs 77.50; Why A Breakout Above Rs 12,300 Could Spark Rally?

In India, UltraTech Cement is the largest producer of white cement, gray cement, and ready-mix concrete (RMC). UltraTech Cement is a worldwide cement manufacturer situated in Mumbai, India, and a member of the Aditya Birla Group. Other than China, it is the world's third-largest manufacturer of cement. Other than China, UltraTech is the only cement business in the world with more than 100 MTPA of cement production capacity in one nation. The company operates in India, Sri Lanka, Bahrain, and the United Arab Emirates. Following the company's announcement of its Q4 results and the highest dividend payout in its history, UltraTech Cement's shares closed Monday's trading session on the NSE 0.89% down at Rs 12,128 per share, with a market capitalization of Rs 3.57LCr.

UltraTech Cement Dividend

The Board of Directors "recommended dividend of 775% at the rate of Rs. 77.50/- per equity share of Rs. 10 each for the year ended 31st March, 2025, subject to approval of the members at the ensuing Annual General Meeting ("AGM") of the Company," said UltraTech Cement in a stock exchange filing.

UltraTech Cement Q4 Results

For the fourth quarter (Q4) of the fiscal year 2024-2025 (FY25), UltraTech Cement recorded a consolidated net profit of Rs 2,482 crore, up 10% (Y-o-Y). A net profit of Rs 2,258.12 crore was declared by the cement manufacturer for the same period of the previous fiscal year.

During Q4FY25, revenue from operations increased by 13% to Rs 23,063.32 crore from Rs 20,418.94 crore in Q4FY24. Additionally, earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by a strong 12.3% YoY, from Rs 4,114 crore in the year-ago quarter to Rs 4,618.4 crore in the quarter under review.

The management of UltraTech Cement stated during an investor call to discuss Q4 earnings that the company is targeting capital expenditures of about Rs 9,000 to 10,000 crores in FY26. The strategic investments that would increase operational size and efficiency will account for Rs 7,000 crores of the stated CAPEX target.

UltraTech Cement Share Price Target

"UltraTech Cement (12,139): The stock is trading strong with immediate support at Rs 11,900 and resistance around Rs 12,300. The RSI is trending upwards above 60, suggesting strong momentum, and the MACD has given a bullish crossover. A breakout above Rs 12,300 could open the gates for Rs 12,500-12,600 levels, keeping the trendline support intact," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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