UltraTech Cement
BSE SENSEX
41,306
S&P CNX
12,138
6 February 2020
Update
| Sector:
Cement
CMP: INR4,467
TP: INR5,440 (+22%)
Buy
Demand outlook improving; Deleveraging key focus
We met UltraTech Cement’s (UTCEM) CFO, Mr. Atul Daga for an update on the
company’s business and growth plans. Key insights highlighted from the meeting:
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
Financials Snapshot (INR b)
Y/E MARCH
2020E
Sales
440.7
EBITDA
102.0
Adj. PAT
40.7
EBITDA Margin (%)
23.1
Adj. EPS (INR)
141.1
EPS Gr. (%)
56.2
BV/Sh. (INR)
1,355
Ratios
Net D:E
0.5
RoE (%)
11.5
RoCE (%)
9.1
Payout (%)
8.6
Valuations
P/E (x)
31.7
P/BV (x)
3.3
EV/EBITDA(x)
14
EV/ton (USD)
180
Div. Yield (%)
0.2
FCF Yield (%)
4.3
UTCEM IN
288
1289.3 / 18.1
4904 / 3372
4/-5/16
2314
39.8
Demand recovering, expect 6-7% volume growth in FY21
2021E 2022E
477.3 524.4
116.8 131.7
53.6
66.3
24.5
25.1
185.9 229.9
Deleveraging remains the key focus
31.8
23.7
1,525 1,739
Focus remains on deleveraging with limited capex plans. Strong FCF in
0.3
13.6
11.1
8.3
24.0
2.9
12
173
0.3
5.6
0.2
14.8
12.6
6.7
19.4
2.6
10
163
0.3
6.2
Demand has picked up since Dec’19, which gives hope of volume growth
recovering to 6-7% YoY in FY21. It has been nearly flat in FY20.
Regionally, demand is currently doing best in the East (up >10% YoY) and the
West, while it is the worst in the South (declining 8-10% YoY). Demand in the
North/Central is also growing in low single digits.
Demand in the South is expected to recover as the Polavaram project has
been re-tendered (which should drive demand in Telangana). Andhra
Pradesh projects should also start to get tendered soon.
UTCEM is currently falling short of grinding capacity in the East (given strong
demand growth there), which should be addressed 12-15 months down the
line when its planned 3.4mtpa capacities get commissioned.
9MFY20 has already reduced net debt by 15% to INR186b (implying 1.9x net
debt/EBITDA).
We estimate decline in net debt to ~INR125b (1.1x) in FY21 led by strong
free cash flow (FCF) of INR70b (~6% yield) in FY21E (v/s INR20b in FY19).
UTCEM is also looking to divest non-core assets associated with the Binani
acquisition (China cement plant, UAE grinding unit and Europe fiberglass
business), which is expected to fetch INR10b (5% of net debt). It has also
recently sold its 0.6mt cement capacity in Bangladesh for a consideration of
INR2b.
Clinker-backed capacity addition is limited to 16-17mt (+3.5% YoY) annually
in the next 2 years, which should lag demand growth, driving up utilization.
While cement grinding unit expansions are higher at 20-22mt (+4.5-5% YoY)
annually, the excess additions (beyond clinker-backed supply) does not
necessarily create new supply, and are at times only for logistical reasons.
While new capacity additions are the highest in the East (~25% growth in the
next 18 months), UTCEM expects them to get absorbed given strong >10%
demand growth in the region. Industry may, however, not have pricing
power in the medium term as there could be a fight for market share.
For the acquired Century (CTIL) capacities, 55% of the volumes have been
rebranded from Birla Gold (cement brand of CTIL) to UltraTech by Dec’19,
which should rise to 84% by Mar’20. This should improve CTIL’s realization
by INR10-12/bag (3-4%) in 1QFY21.
Clinker-backed supply limited, East having maximum expansions
Shareholding pattern (%)
As On
Sep-19 Jun-19
Promoter
61.7
61.7
DII
12.0
8.7
FII
17.9
18.7
Others
8.4
10.9
FII Includes depository receipts
Sep-18
61.7
7.3
20.9
10.2
Century – Rebranding and revamping of assets to improve margins
Amit Murarka - Research analyst
(Amit.Murarka@motilaloswal.com) +91 22 7199 2309
Pradnya Ganar - Research analyst
(Pradnya.Ganar@motilaloswal.com); +91 22 6129 1537
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
UltraTech Cement
Stock Performance (1-year)
Balance volumes should also see gradual transition once upgradation is
completed at the 2 MMTPA plant at Baikunth, Chhattisgarh (an old plant).
Turnaround of CTIL capacities has started with planned cost reduction of
INR250/t by end-FY21. This would bring down the cost gap with UTCEM to only
~INR80/t (due to higher acquisition-related limestone royalty). We estimate this
implies blended cost reduction of INR40/t in FY21 for UTCEM which should
support margin expansion.
UTCEM expects to achieve EBITDA/t of >INR1,000 for CTIL’s capacities by
1QFY21 with utilization of 80%.
UTCEM would also focus on arresting the market share loss in white cement.
Middle East imports have risen to 100kt taking away ~10% market share from
UTCEM and JK Cement (with capacities totaling to 1.3mtpa).
Putty demand has been growing in double digits. UTCEM plans to expand its
putty capacity, which should get commissioned in 1HFY22.
UTCEM is also trying to increase sales of premium cement to improve margins. It
has recently launched its water-proof cement brand called ‘Weather Plus’ in the
South and Gujarat.
UTCEM’s market mix has improved post the acquisition with the North/Central-
India (both regions have better utilization outlook) contributing ~45% to
volumes while the share of weaker regions (the South/East) has declined.
We estimate CAGR of 14%/28% in EBITDA/ EPS over FY20-22E. Driven by strong
operating cash flows and reduction in interest cost, RoE/RoCE should improve
by 330bp/350bp to 14.8%/ 12.6% over FY20-22E.
Valuation is also supportive at 12.1x FY21E EV/EBITDA, at ~20% discount to its 5-
year average and marginal 5% discount to 10-year average. It is also trading 35%
cheaper than peer Shree Cement v/s historical average of 10%.
We value UTCEM at 13.5x Dec’21E EV/EBITDA to arrive at a target price of
INR5,440 (implied EV/t of USD190/t on FY22E capacity). Maintain
Buy.
Other focus areas – white cement and premium grey cement
Valuation and view
6 February 2020
2
 Motilal Oswal Financial Services
UltraTech Cement
Story in charts
Exhibit 1: Utilization to reach 77% by FY22
79%
75%
73%
71% 70%
70%
67%
71%
69%
Capacity (mt)
Capacity utilization (%)
73%
77%
Exhibit 2: EBITDA/t to improve further over FY20-22
EBITDA/t (INR)
52
54
57
63
68
70
89
113 117 117 121
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: EBITDA estimated at 14% CAGR over FY20-22E
EBITDA (INR bn)
22
23
19
18
19
21
20
EBITDA margin (%)
23
18
24
25
Exhibit 4: Return ratios bottomed out in FY19
14.2
14.8
RoE (%)
13.9
10.6
9.4
9.4
9.7
9.1
7.1
14
11.1
RoCE (%)
8.4
18
42
48
40
44
49
52
61
73
102 117 132
20
19
14
12
12
12
10
8
11
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 5: UTCEM EV/EBITDA trend
UTCEM EV/EBDITA(x)
24
20
16
12
8
4
0
Max(x)
Min(x)
Exhibit 6: UTCEM EV/ton trend
EV/ton (USD)
210
160
110
60
10
Max
Min
Avg
Source: MOFSL, Company
Source: MOFSL, Company
6 February 2020
3
 Motilal Oswal Financial Services
UltraTech Cement
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Raw Materials
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY15
2,43,400
12.4
40,502
13,083
1,45,560
1,99,145
81.8
44,255
18.2
12,034
32,221
5,865
3,501
29,856
0
29,856
8,835
29.6
38
20,983
20,983
-4.9
8.6
FY16
2,51,532
3.3
44,175
14,450
1,43,898
2,02,523
80.5
49,010
19.5
13,772
35,238
5,663
4,638
34,213
0
34,213
9,417
27.5
16
24,780
24,780
18.1
9.9
FY17
2,53,749
0.9
44,926
15,223
1,41,476
2,01,625
79.5
52,124
20.5
13,484
38,640
6,401
6,481
38,721
0
38,721
11,586
29.9
-14
27,149
27,149
9.6
10.7
FY18
3,09,786
22.1
52,888
18,102
1,77,344
2,48,335
80.2
61,452
19.8
18,479
42,972
12,376
5,886
36,482
-3,466
33,016
10,770
32.6
24
22,222
24,557
-9.5
7.9
FY19
4,16,090
34.3
71,257
22,911
2,48,485
3,42,652
82.4
73,437
17.6
24,468
48,970
17,779
4,678
35,869
-1,139
34,731
10,754
31.0
-37
24,013
24,799
1.0
6.0
FY20E
4,40,656
5.9
70,040
25,134
2,43,500
3,38,675
76.9
1,01,981
23.1
27,371
74,610
19,514
5,622
60,717
-1,332
59,385
19,572
33.0
-10
39,823
40,716
64.2
9.2
(INR Million)
FY21E
4,77,326
8.3
74,167
27,430
2,58,933
3,60,530
75.5
1,16,796
24.5
28,696
88,100
16,344
5,650
77,405
0
77,405
23,768
30.7
-10
53,648
53,648
31.8
11.2
FY22E
5,24,356
9.9
81,644
29,649
2,81,372
3,92,665
74.9
1,31,691
25.1
29,855
1,01,836
12,839
6,537
95,534
0
95,534
29,194
30.6
-10
66,350
66,350
23.7
12.7
Consolidated - Balance Sheet
Y/E March
Equity Share Capital
Eq. Share Warrants & App. Money
Preference Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Current Investment
Non Current Investment
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Deferred Tax assets
Misc Expenditure
Appl. of Funds
E: MOFSL Estimates
FY15
2,744
0
0
1,87,668
1,90,412
182
98,291
27,955
3,16,840
3,38,565
1,15,667
2,22,897
10,531
22,500
25,230
19,770
79,605
29,491
16,588
3,706
29,820
63,790
17,112
33,400
13,279
15,815
96
0
3,16,840
FY16
2,744
0
0
2,16,712
2,19,456
155
1,06,160
24,411
3,50,182
2,55,050
13,018
2,42,032
11,062
14,691
23,651
27,301
93,194
24,546
19,282
22,670
26,697
61,852
17,173
40,292
4,388
31,343
102
0
3,50,182
FY17
2,745
0
0
2,41,171
2,43,916
97
84,745
27,824
3,56,582
2,74,135
25,943
2,48,192
10,851
9,215
54,110
12,795
86,926
24,006
17,571
22,488
22,861
65,605
18,573
42,453
4,579
21,321
98
0
3,56,582
FY18
2,746
0
0
2,61,066
2,63,812
160
1,94,802
31,827
4,90,601
4,30,455
43,665
3,86,790
10,363
15,112
39,491
14,978
1,04,677
32,676
22,206
2,191
47,604
80,904
23,849
50,526
6,529
23,773
94
0
4,90,601
FY19
2,746
0
0
3,34,738
3,37,484
122
2,53,370
63,856
6,54,832
5,71,367
68,132
5,03,235
62,989
11,486
15,165
14,048
1,58,335
40,990
27,870
7,397
82,079
1,10,548
31,671
71,206
7,671
47,787
121
0
6,54,832
FY20E
2,886
0
0
3,69,206
3,72,092
112
2,17,433
67,520
6,57,157
5,95,353
95,503
4,99,849
62,989
11,486
6,261
22,952
1,64,859
45,078
29,516
8,187
82,079
1,11,427
33,541
70,205
7,681
53,432
186
6,57,156
(INR Million)
FY21E
2,886
0
0
4,15,900
4,18,786
102
1,67,433
71,184
6,57,505
6,20,953
1,24,199
4,96,754
62,989
9,486
6,261
22,952
1,74,891
48,579
31,565
12,595
82,152
1,16,017
36,332
71,997
7,687
58,874
186
0
6,57,502
FY22E
2,886
0
0
4,74,601
4,77,487
92
1,27,433
74,848
6,79,860
6,44,568
1,54,055
4,90,513
62,989
9,486
6,261
22,952
2,08,969
53,301
34,528
38,916
82,225
1,21,501
39,912
73,896
7,693
87,468
186
0
6,79,855
6 February 2020
4
 Motilal Oswal Financial Services
UltraTech Cement
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/Ton (Cap-USD)
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY15
76.4
120.3
694.8
9.0
14.2
FY16
90.2
140.5
800.4
8.9
11.8
FY17
98.9
148.0
889.4
9.4
11.5
FY18
89.4
156.7
961.4
9.5
14.0
FY19
90.3
179.4
1,229.8
10.5
14.5
49.5
24.9
3.6
3.5
183.1
19.7
0.2
74.8
11.6
9.4
9.6
0.7
0.8
44
25
26
1.2
5.5
0.4
12.1
9.4
9.2
1.0
0.7
36
28
25
1.5
6.2
0.3
11.7
9.7
9.7
0.9
0.7
35
25
27
1.3
6.0
0.0
9.7
8.4
8.2
0.7
0.6
38
26
28
1.3
3.5
0.6
8.2
7.1
6.4
0.7
0.6
36
24
28
1.4
2.8
0.7
FY20E
141.1
235.9
1,355.5
11.0
8.6
31.7
18.9
3.3
3.3
180.0
14.4
0.2
193.7
11.5
9.1
8.0
0.7
0.7
37
24
28
1.5
3.8
0.5
FY21E
185.9
285.3
1,525.0
13.0
8.3
24.0
15.7
2.9
3.0
173.3
12.1
0.3
249.7
13.6
11.1
9.7
0.8
0.7
37
24
28
1.5
5.4
0.4
FY22E
229.9
333.3
1,738.6
13.0
6.7
19.4
13.4
2.6
2.6
163.3
10.4
0.3
278.1
14.8
12.6
11.3
0.8
0.8
37
24
28
1.7
7.9
0.2
Consolidated - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY15
29,856
18,123
5,492
-3,880
-263
49,329
-8,993
40,336
-69,076
-28,740
3,618
8,500
-56,957
2
25,120
-5,865
-2,972
558
16,842
221
3,485
3,706
FY16
34,213
13,772
5,042
-8,517
4,293
48,803
-3,547
45,255
-21,315
23,940
3,537
-73
-17,851
27
-5,503
0
-2,973
9
-8,440
18,964
3,706
22,669
FY17
38,721
13,484
5,822
-7,437
5,176
55,765
-5,830
49,935
-13,557
36,377
-11,209
0
-24,766
66
-22,297
0
-3,119
0
-25,350
-182
22,669
22,488
FY18
33,015
18,479
12,376
-8,429
-12,554
42,888
-16,386
26,501
-18,828
7,674
16,246
13,134
10,553
157
-42,069
-12,099
-3,340
0
-57,351
-20,297
22,488
2,191
FY19
35,384
21,398
15,486
-7,101
-9,374
55,793
-19,680
36,113
-15,562
20,551
27,691
17,415
29,544
52
-41,377
-14,837
-3,462
-827
-60,450
5,206
2,191
7,397
FY20E
59,385
27,371
19,514
-15,911
-4,855
85,505
-5,622
79,883
-23,985
55,898
0
5,622
-18,363
0
-36,000
-19,514
-5,215
0
-60,729
790
7,397
8,187
FY21E
77,405
28,696
16,344
-20,105
-1,034
1,01,307
-5,650
95,657
-23,601
72,057
0
5,650
-17,951
0
-50,000
-16,344
-6,954
0
-73,298
4,409
8,187
12,596
FY22E
95,534
29,855
12,839
-25,531
-2,273
1,10,423
-6,537
1,03,886
-23,614
80,272
0
6,537
-17,077
0
-40,000
-12,839
-7,649
0
-60,488
26,321
12,596
38,916
6 February 2020
5
 Motilal Oswal Financial Services
UltraTech Cement
NOTES
6 February 2020
6
 Motilal Oswal Financial Services
UltraTech Cement
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
6 February 2020
7
 Motilal Oswal Financial Services
UltraTech Cement
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The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
6 February 2020
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