Rs 70/Sh Dividend In 2024: Add Aditya Birla Cement Stock, TP Rs 11,260: HDFC Securities

Leading brokerage firm HDFC Securities has assigned add call to large cap cement sector company UltraTech Cement Ltd shares with target price of Rs 11, 260 apiece amid hopes for recovery in demand from H2FY25 onwards which is likely to support cement prices. Current market price of UltraTech Cement shares on BSE is Rs 11,600.60 per share. UltraTech Cement shares 22% in last 6-months and 198% in last 5-years. The company rewarded shareholders with Rs 70 per share (700%) dividend in 2024 and fixed July 30, 2024 as the record date for dividend. This was the highest payout ever by UltraTech, India's largest cement company. The company has a market capitalisation of Rs 3,35,069.32 crore. Check details below:

UltraTech Cement Shares Performance: The 52-week high price of UltraTech Cement shares on BSE is Rs 12,078.15 per share (as on 02/07/2024) and 52-week low price is Rs 8050.00 per share (as on 04/10/2023), respectively. UltraTech Cement shares gained 35% in last 1-year, zoomed 80% in last 2-years, and surged 50% in last 3-years.

UltraTech Cement Dividend History: UltraTech Cement announced 21 dividends since September 28, 2004. In last 1-year, UltraTech Cement announced an equity dividend amounting to Rs 70.00 per share. At the current share price of Rs 11600.60, UltraTech Cement offers a dividend yield is 0.60%.

UltraTech Cement Shareholding: Promoters have increased holdings from 59.95% to 59.99% in June 2024 quarter. FII/FPI have increased holdings from 17.74% to 18.15% in June 2024 quarter. Number of FII/FPI investors increased from 1203 to 1255 in June 2024 quarter. Number of MF schemes increased from 102 to 103 in June 2024 quarter, according to Trendlyne.

HDFC Securities Recommends Buy Call: The brokerage firm said, "we maintain an ADD rating on UltraTech Cement (UTCEM) with an unchanged target price of INR 11,260/share (16.5x Sep-26E consolidated EBITDA). We interacted with the management recently on business and industry outlook. Overall demand remains sluggish in Q2FY25 and pricing is weak. However, there is hope for demand to recover from H2FY25 onwards and this should also support cement pricing. UTCEM remains focused on reducing its unit opex (by INR 300/MT) through increased blending, rising share of lowcost green energy, lead distance reduction and other efficiencies."

About: UltraTech Cement Limited is the cement flagship company of the Aditya Birla Group. A USD 8.4 billion building solutions powerhouse, UltraTech is the largest manufacturer of grey cement and ready mix concrete (RMC) and one of the largest manufacturers of white cement in India. It is the third largest cement producer in the world, excluding China. UltraTech is the only cement company globally (outside of China) to have 100+ MTPA of cement manufacturing capacity in a single country. The Company's business operations span UAE, Bahrain, Sri Lanka and India.

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