Academic Research Project – Not a Recommendation

Equity Research Report (Q2FY26)

UltraTech Cement Ltd.
India’s No.1 Cement Manufacturers

Recommendation : XXXX
About Company
CMP : INR 12,370
UltraTech Cement Ltd. (herein after referred as “The Company” or Target Price : XXXX
“UltraTech”) is India's largest cement manufacturer and ranked as the
second largest cement producer in the world, excluding China. Stock Data (As on Oct 18, 2025)
Headquarter in Mumbai, The company has a consolidated cement Nifty : 25,710
manufacturing capacity approximately 192.26 MTPA (million ton per
annum), covering more than 80% of the cities and towns in India 52 Week H/L (INR) : 13,102 / 10,048
through network of 1,40,000 channel partners including dealer and Market Cap (INR in Crs.) : 3,64,518
retailers. The company command around 28% of the market share. Outstanding Share (Crs.) : 29.5
The company operate through a vast infrastructure that include 35 Dividend Yield (%) : 0.63%
integrated unit (34 in India and one overseas), 408 Ready mix
NSE Code : ULTRACEMCO
concrete plant, 34 grinding unit (30 in India and 4 overseas), 9 Bulk
Packaging Terminals – Sea + Rail (7 in India and one overseas) and 2 Relatively Stock Performance – 5Y
white cement units and 3 Putty units and five Jetties across India, the
UAE, Bahrain, and Sri Lanka. UltraTech is also largest manufacture of Nifty Index UltraTech Index
ready mix concrete in India with 408 RMC plants in 161 cities.
UltraTech Cement is a founding member of the Global Cement and
Concrete Association (GCCA) and is committed to sustainability by
being a signatory to the GCCA Climate Ambition 2050 and the Net
Zero Concrete Roadmap. It is the first Indian and second Asian
company to issue dollar-based sustainability-linked bonds. The
company has also adopted advanced sustainability practices including
concrete recycling and reducing carbon footprints through innovative
technologies, with a goal of achieving carbon neutrality in its
operations.

Key highlights :
❑ UltraTech Cement sold over 31 million tonnes of cement in Q2 Absolute Return
despite heavy rainfall. The UltraTech brand saw 13.2% year-on- 1 Year : 16%
year growth, while the rural market grew by 13% and the overall
industry by about 10%. 3 Year : 101%
❑ Consolidated revenue rose 25.4% year-on-year to ₹19,606.9 5 Year : 182%
crore, driven by a 6.9% year-on-year increase in sales volume
(33.85 MTPA) and a 3.1% improvement in realisation. Installed Shareholding Pattern (As on Sept 30, 2025)
domestic grey cement capacity stands at 186.9 MTPA, targeted to Promoters : 59.23%
reach 200 MTPA by FY26 through organic growth and
FIIs : 15.33%
debottlenecking projects.
❑ Capex was INR 9,000 crore in FY25; the FY26 capex plan is INR DIIs : 16.65%
9,000–10,000 crore, with INR 7,000 crore earmarked for strategic Government : 0.05%
expansion (including India Cements integration). Public : 8.55%
❑ Primary lead distance reduced to 366 km in Q2FY26 versus 388
Other : 0.20%
km in Q2FY25; green power mix reached 41.6%, with WHRS
contributing 19.2%. Financial Summary
❑ Logistics cost decreased 6% YoY, Fuel cost decreased 6% YoY,
Power cost decreased 8% YoY, Raw material cost increased 5% INR in Crs. FY25 FY26E FY27E
YoY Net Revenue 75,955.10 87,348.40 98,354.30
❑ Net Debt/EBITDA stands at 1.53x; strong cash flows position the YoY Growth % 7.10% 15.00% 12.60%
company for rapid debt reduction.
❑ The company’s white cement segment grew 26.7% YoY to INR EBITDA 12,557.50 15,722.70 17,703.80
666 crore, RMC rose 29.6% YoY to INR 1,811 crore, and EBITDA Margins (%) 16.50% 18.00% 18.00%
construction chemicals rose 32.2% YoY to INR 283 crore. PAT 6,039.10 7,283.50 8,201.30
❑ Partnership with CONCOR for bulk cement movement in tank
containers YoY Growth % -13.80% 20.60% 12.60%
❑ FY26 capacity addition: 14.1 million tonnes (across Maharashtra, ROE 9.20% 12.60% 14.50%
Haryana, Rajasthan, Madhya Pradesh, Jharkhand, Uttar Pradesh, EPS (in INR) 204.94 246.9 278.01
Andhra Pradesh)
EV/EBITDA 28.82 x 18.80 x 16.40 x

1 Prepared by : Aman Mehta

Academic Research Project – Not a Recommendation

Result Update Q2FY26

Quarterly Result Analysis- Q2FY26

Capacity Expansion:

• The Company plans to complete the financial year with 200 million tonnes of capacity.
• Out of the total planned incremental capacity, 18 million tonnes will be allocated to the Northern markets, while 4.8 million
tonnes will be designated for the Western markets.
• At the end of the current expansion phase, the company will reach 148 million tonnes of clinker capacity, with a clinker
conversion ratio of approximately 1.6x.
• Beyond FY29, the company sees potential for an additional 20–25 million tonnes of capacity, including new greenfield clinker-
based units.
• The capacity expansion will be funded largely by internal accruals. By the time the expansion is complete, the company’s net
debt-to-EBITDA ratio will again fall below 0.7x.
• India Cements currently has a capacity of 14.45 million tonnes, and further brownfield expansions will increase this to 17.55
million tonnes. The company will complete these expansions by January. Once fully operational, the ICL assets are expected to
generate EBITDA of approximately ₹1,000 per ton and achieve a net debt-to-EBITDA ratio of around 0.5x.
• Ongoing CapEx at Kesoram, amounting to roughly INR 500 crores, is focused on WHRS and other efficiency improvements. As for
the brand transition program, about 55% of the output has been completed, with the rest expected to be finalized by June 2026.
• The cables and wires business is on track to commence production in Q3 of fiscal 2026.

CapEx Plans:

• The company expects to maintain an annual capex spend of around ₹10,000 crore for at least the next two years.
• Key projects such as Vadhavan Port, Amravati, development around the new Mumbai Airport, the rise of data centers across the
country, growth in urban real estate, and Google’s $15 billion investment to build its AI hub in Andhra Pradesh are all highly
positive for the cement industry, driving consistent growth in demand.
• India Cements has initiated a CapEx program of ₹1,592 crore for debottlenecking, renewable energy (including WHRS), and other
efficiency improvement initiatives. In addition, the company is expanding capacity at its Chennai and Rajasthan plants by 2.4
million tonnes, with an investment of ₹422 crore. These are high-performing markets, and the investments are expected to
deliver an IRR of over 20%.
• The capex plan for the upcoming 22 million tonnes will have a CapEx cost of less than ₹500 crore per tonne, including
approximately 15.68 million tonnes. Of this, 8.04 million tonnes will be added through two specific plants, with the remainder
mainly achieved through debottlenecking across various regions.

Pricing and volumes :

• The company sold over 31 million tonnes of cement in Q2 despite heavy rainfall, with the UltraTech brand achieving year-on-year
growth of 13.2% this quarter.
• The rural market is delivering growth of 13%, while the industry as a whole is expected to achieve growth of around 10%.
• GST 2 is expected to boost demand for premium cement, as reduced purchase costs will encourage premiumization of cement
products.

Other Key Concall Highlight :

• The company operates nearly 75 physical locations and over 400 RMC plants, and the RMC business now accounts for
approximately 4% of total cement volumes
• The company has a presence with nearly 5,000 UBS stores across the country, which accounted for 21% of total sales this quarter.

Source: Company Analysis, Transcript, PPT

2
Academic Research Project – Not a Recommendation

Result Update Q2FY26

Story On Charts

Sales Volume (Mn Mt) Realisation (₹/Mt)

45 24.0% 5550 8.0%

5400
38 4.0%
18.0%
5250
31 5100 0.0%
12.0%
24 4950 -4.0%

6.0% 4800
17 -8.0%
4650

10 0.0% 4500 -12.0%

Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26

Sales Volume (Mn Mt) YoY Growth (%) Realisations (₹/Mt) YoY Growth (%)

Raw Material Cost (₹/Mt) EBITDA/Ton (₹)

670 6.0% 1350 45.0%

650 1200 30.0%

4.0%

630 1050 15.0%

2.0%
610 900 0.0%

0.0%
590 750 -15.0%

570 -2.0% 600 -30.0%

Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26

Raw Material Cost (₹/Mt) YoY Growth (%) EBITDA/T (₹) YoY Growth (%)

EBITDA & EBITDA Margin PAT & PAT Margin (%)

5200 22.0% 2700 13.0%

4700
20.0%
2200 11.0%
4200
18.0%
3700 1700 9.0%
3200 16.0%

2700 1200 7.0%

14.0%
2200
700 5.0%
12.0%
1700

1200 10.0% 200 3.0%

Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26

EBITDA EBITDA Margin (%) PAT PAT Margin (%)

Source: Company Analysis

3
Academic Research Project – Not a Recommendation

Result Update Q2FY26

Quarterly P&L Snapshot

FY24 FY25 FY26
Particular (INR Crores) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Net sales 17,737.1 16,012.1 16,740.0 20,418.9 18,818.6 16,294.4 17,778.8 23,063.3 21,275.5 19,606.9
YoY changes (%) 16.96% 15.25% 7.85% 9.41% 6.1% 1.8% 6.2% 13.0% 13.1% 20.3%
Total Expenditure 14,687.9 13,461.2 13,485.4 16,305.0 15,801.5 14,268.7 14,885.4 18,455.7 16,869.4 16,518.3
EBITDA 3,049.2 2,550.9 3,254.6 4,113.9 3,017.1 2,025.7 2,893.5 4,607.7 4,406.0 3,088.7
YoY changes (%) -1.48% 36.78% 39.34% 23.84% -1.1% -20.6% -11.1% 12.0% 46.0% 52.5%
Margins (%) 17.2% 15.9% 19.4% 20.1% 16.0% 12.4% 16.3% 20.0% 20.7% 15.8%
Depriciation 749.1 797.8 783.5 814.9 917.9 979.7 992.8 1,124.6 1,106.8 1,147.7
Intrest 210.8 233.9 262.2 261.2 325.8 393.0 456.8 475.0 433.3 459.3
other income 177.4 170.6 146.2 72.7 83.3 226.2 247.3 92.8 141.9 174.1
PBT before EO expenses 2,266.8 1,689.7 2,355.2 3,110.5 1,856.7 879.3 1,691.3 3,100.8 3,007.8 1,655.8
Extra ordinary expenses - - - 72.0 88.1 - - 9.4 38.4 -
PBT after EO expenses 2,266.8 1,689.7 2,355.2 3,038.5 1,768.6 1,018.0 2,214.7 3,091.5 2,969.4 1,655.8
Tax 576.6 409.4 580.4 851.9 363.3 171.3 327.8 626.1 786.9 417.9
Rate (%) 25.4% 24.2% 24.6% 28.0% 20.5% 16.8% 14.8% 20.3% 26.5% 25.2%
Reported PAT 1,690.2 1,280.4 1,774.8 2,186.6 1,405.4 846.7 1,886.8 2,465.4 2,182.5 1,238.0
YoY changes (%) 6.80% 68.8% 67.0% 35.3% -16.9% -33.9% 6.3% 12.8% 55.3% 46.2%

Annual P&L Snapshot

Particular (INR Crores) FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Total Income from Operations 44,725.8 52,598.8 63,240.0 70,908.1 75,955.1 87,348.4 98,354.3 110,746.9
Changes (%) 17.60% 20.23% 12.13% 7.12% 15.00% 12.60% 12.60%
Raw Matrials 7,085.8 7,965.0 9,715.0 11,902.9 13,703.7 14,526.4 16,342.2 18,385.0
Employee Cost 2,353.0 2,534.7 2,739.0 3,037.6 3,604.6 4,272.5 4,806.5 5,407.4
Other Expenses 23,719.1 30,584.8 40,166.2 42,999.1 46,089.4 51,269.7 57,678.4 64,888.2
Total Expenditure 33,157.9 41,084.5 52,620.1 57,939.6 63,397.7 70,068.6 78,827.2 88,680.6
% of Revenue 74.14% 78.11% 83.21% 81.71% 83.47% 80.22% 80.15% 80.07%
EBITDA 11,567.9 11,514.4 10,619.9 12,968.6 12,557.5 17,279.8 19,527.1 22,066.4
Margins (%) 25.86% 21.89% 16.79% 18.29% 16.53% 19.78% 19.85% 19.93%
Depriciation 2,700.2 2,714.8 2,888.0 3,145.3 4,015.0 4,614.3 5,191.1 5,839.9
EBIT 8,867.7 8,799.6 7,731.9 9,823.3 8,542.5 12,665.5 14,336.1 16,226.4
Intrest & Finance Charges 1,485.7 944.7 822.7 968.0 1,650.5 2,563.5 2,883.9 3,244.4
Other Income 734.2 507.8 503.1 617.0 744.2 1,110.8 1,249.7 1,405.9
PBT befor EO Expenses 8,116.2 8,362.7 7,412.2 9,472.2 7,636.1 11,212.9 12,701.8 14,387.9
EO items -260.7 0.0 0.0 -72.0 -97.4 0.0 0.0 0.0
PBT After EO Expenses 7,855.5 8,362.7 7,412.2 9,400.2 7,538.7 11,212.9 12,701.8 14,387.9
Total Tax 2,538.7 1,190.1 2,342.9 2,418.3 1,488.5 2,188.8 2,462.4 2,770.2
Tax Rates (%) 32.32% 14.23% 31.61% 25.73% 19.74% 19.52% 19.39% 19.25%
Reported PAT 5,320.2 7,184.4 5,064.0 7,005.1 6,039.1 9,024.1 10,239.4 11,617.7
Minority Intrest -3.4 -11.8 5.4 -23.1 11.1 0 0 0
Adjusted PAT 5,316.8 7,172.6 5,069.4 6,982.0 6,050.2 9,024.1 10,239.4 11,617.7
Changes (%) 34.91% -29.32% 37.73% -13.35% 49.15% 13.47% 13.46%
Margins (%) 11.89% 13.64% 8.02% 9.85% 7.97% 10.33% 10.41% 10.49%
Source: Company Analysis
4
Academic Research Project – Not a Recommendation

Result Update Q2FY26

Ratio Analysis

Profitability Ratio

Y/E March FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Gross Margin % 82.4% 82.3% 82.9% 83.2% 84.6% 84.2% 84.9% 84.6% 83.2% 82.0%
EBITDA Margin % 19.5% 20.5% 19.8% 17.7% 21.8% 25.9% 21.9% 16.8% 18.3% 16.8%
EBIT Margin % 11.8% 12.7% 9.9% 7.5% 10.7% 16.5% 14.9% 10.9% 12.5% 9.4%
PAT Margin % 9.9% 10.7% 7.2% 5.8% 13.6% 12.2% 13.9% 8.0% 9.9% 8.0%
Dividend Payout % 11.0% 10.0% 13.0% 13.0% 7.0% 20.0% 15.0% 22.0% 29.0% 38.0%

Efficiency Ratio

Inventory Turnover 10.2x 10.6x 9.5x 10.1x 10.1x 11.1x 9.4x 9.6x 8.5x 7.9x
Net Fixed Asset Turnover 1.0x 1.0x 0.8x 0.7x 0.7x 0.8x 0.9x 1.1x 1.1x 0.8x
Total Asset Turnover 0.6x 0.6x 0.5x 0.5x 0.5x 0.5x 0.6x 0.7x 0.7x 0.6x
Sales/Capital Employed 0.8x 0.8x 0.7x 0.7x 0.7x 0.7x 0.9x 1.0x 1.0x 0.8x

Leverage Ratio

Debt/Equity (x) 0.48x 0.35x 0.74x 0.75x 0.59x 0.49x 0.22x 0.20x 0.19x 0.34x
Debt/Assets (x) 0.26x 0.20x 0.34x 0.33x 0.29x 0.25x 0.13x 0.12x 0.11x 0.18x
Debt/EBITDA (x) 2.17x 1.63x 3.17x 3.45x 2.49x 1.88x 0.98x 1.04x 0.88x 1.88x
Debt/Capital (x) 0.33x 0.26x 0.42x 0.43x 0.37x 0.33x 0.18x 0.17x 0.16x 0.25x
CFO/Debt (x) 0.43x 0.59x 0.20x 0.24x 0.39x 0.58x 0.82x 0.82x 0.96x 0.44x
Interest Coverage (Times) (Y) 7.0Y 7.1Y 3.7Y 3.0Y 3.6Y 6.4Y 10.0Y 10.0Y 10.7Y 5.6Y
Operating Leverage (x) 1.18x 10.96x 0.51x 0.41x 14.23x 6.64x -0.04x -0.60x 2.24x -1.50x
Financial Leverage (x) 1.88x 1.73x 2.17x 2.27x 2.03x 1.95x 1.66x 1.68x 1.67x 1.89x
Debt Burden Ratio (x) 0.23 0.43 0.1 0.17 0.32 0.49 0.33 0.27 0.18 0.07

Cash Ratio

Operating Cash Flow Growth % 8.0% 10.6% -22.3% 53.2% 50.6% 39.3% -25.7% -2.3% 20.2% -2.1%
CFO/Total Assets % 11.0% 11.9% 6.8% 7.8% 11.3% 14.5% 11.1% 9.9% 10.8% 8.0%
CFO/Total Debt % 42.6% 59.1% 20.0% 23.5% 39.0% 57.6% 82.2% 82.0% 95.6% 44.3%
Cash Interest Coverage (x) 10.69x 10.64x 5.02x 4.95x 5.22x 11.13x 12.09x 14.90x 14.79x 8.38x

Valuation Ratio

Enterprise Value (EV) ( ₹ Crs.) 96,946 115,606 127,728 134,392 116,125 214,236 201,548 229,959 292,078 361,615
EV/EBITDA (x) 19.8x 22.2x 20.8x 18.3x 12.6x 18.5x 17.5x 21.7x 22.5x 28.3x
Price/Earnings (x) 35.7x 40.3x 48.8x 45.7x 16.3x 35.6x 26.0x 43.4x 40.2x 56.2x
Price/Sales (x) 3.5x 4.3x 3.5x 2.6x 2.2x 4.3x 3.6x 3.5x 4.0x 4.5x
Price/CFO (x) 19.6x 21.9x 27.9x 18.4x 10.4x 15.6x 20.5x 24.3x 25.8x 31.8x
Price/Book Value (x) 4.0x 4.5x 4.1x 3.3x 2.4x 4.4x 3.8x 4.1x 4.7x 4.8x

Capital Allocation Ratio

Return on Invested Capital % 8.2% 8.9% 4.9% 4.1% 9.3% 8.5% 11.9% 7.9% 9.9% 6.5%

Source: Company Analysis

5
Academic Research Project – Not a Recommendation

Result Update Q2FY26

DuPont Analysis

Return on Equity (ROE)

(INR Crore)
Particular FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Net profit 2,715 2,222 2,404 5,755 5,463 7,344 5,064 7,005 6,039
Average Shareholder's equity 23,169 25,387 30,073 36,404 41,609 47,305 52,380 57,279 65,323
Return on Equity 11.7% 8.8% 8.0% 15.8% 13.1% 15.5% 9.7% 12.2% 9.2%

(INR Crore)
ROE - Dupont Equation
Net profit 2,715 2,222 2,404 5,755 5,463 7,344 5,064 7,005 6,039
Revenue 25,375 30,979 41,462 42,430 44,726 52,599 63,240 70,908 75,955
Net profit Margin (A) 10.7% 7.2% 5.8% 13.6% 12.2% 14.0% 8.0% 9.9% 8.0%

Revenue 25,375 30,979 41,462 42,430 44,726 52,599 63,240 70,908 75,955
Average Total Assets 41,701 49,675 66,833 77,870 82,695 84,994 87,596 96,089 117,215
Asset Turnover Ratio (B) 0.61x 0.62x 0.62x 0.54x 0.54x 0.62x 0.72x 0.74x 0.65x

Average Total Assets 41,701 49,675 66,833 77,870 82,695 84,994 87,596 96,089 117,215
Average Shareholder's equity 23,169 25,387 30,073 36,404 41,609 47,305 52,380 57,279 65,323
Financial Leverage Ratio (C) 1.80x 1.96x 2.22x 2.14x 1.99x 1.80x 1.67x 1.68x 1.79x

Return on Equity (A*B*C) 11.7% 8.8% 8.0% 15.8% 13.1% 15.5% 9.7% 12.2% 9.2%
Source: Company Analysis

Return on Assets (ROA)

(INR Crore)
Particular FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Net profit 2,715 2,222 2,404 5,755 5,463 7,344 5,064 7,005 6,039
Average Total Assets 41,701 49,675 66,833 77,870 82,695 84,994 87,596 96,089 117,215
Return on Assets 6.5% 4.5% 3.6% 7.4% 6.6% 8.6% 5.8% 7.3% 5.2%

(INR Crore)
ROA - Dupont Equation
Net profit 2,715 2,222 2,404 5,755 5,463 7,344 5,064 7,005 6,039
Revenue 25,375 30,979 41,462 42,430 44,726 52,599 63,240 70,908 75,955
Net profit Margin (A) 10.7% 7.2% 5.8% 13.6% 12.2% 14.0% 8.0% 9.9% 8.0%

Revenue 25,375 30,979 41,462 42,430 44,726 52,599 63,240 70,908 75,955
Average Total Assets 41,701 49,675 66,833 77,870 82,695 84,994 87,596 96,089 117,215
Asset Turnover Ratio (B) 0.61x 0.62x 0.62x 0.54x 0.54x 0.62x 0.72x 0.74x 0.65x

Return on Assets (A*B) 6.5% 4.5% 3.6% 7.4% 6.6% 8.6% 5.8% 7.3% 5.2%

Source: Company Analysis

6
Academic Research Project – Not a Recommendation

Result Update Q2FY26

DuPont Analysis

Return on Capital Employed (ROCE)

(INR Crore)
Particular FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
NOPAT 2,708 2,895 3,388 7,238 6,054 7,571 5,289 7,310 7,046
Average Capital Employed 28,244 36,531 50,644 57,341 56,886 60,467 59,335 63,990 79,805
Return on Capital Employed (ROCE) 9.6% 7.9% 6.7% 12.6% 10.6% 12.5% 8.9% 11.4% 8.8%

(INR Crore)
ROCE - Dupont Equation
NOPAT 2,708 2,895 3,388 7,238 6,054 7,571 5,289 7,310 7,046
Revenue 25,375 30,979 41,462 42,430 44,726 52,599 63,240 70,908 75,955
NOPAT Margin (A) 10.7% 9.3% 8.2% 17.1% 13.5% 14.4% 8.4% 10.3% 9.3%

Revenue 25,375 30,979 41,462 42,430 44,726 52,599 63,240 70,908 75,955
Average Capital Employed 28,244 36,531 50,644 57,341 56,886 60,467 59,335 63,990 79,805
Capital Employed Turnover (B) 0.90x 0.85x 0.82x 0.74x 0.79x 0.87x 1.07x 1.11x 0.95x

Return on Capital Employed (A*B) 9.6% 7.9% 6.7% 12.6% 10.6% 12.5% 8.9% 11.4% 8.8%
Source: Company Analysis

Return on Equity % Return on Capital Employed %

15.8% 12.6% 12.5%

15.5%
11.4%
10.6%
13.1%
12.2% 9.6%
11.7% 8.9% 8.8%
7.9%
9.7% 9.2%
8.8% 6.7%
8.0%

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

Return on Assets % Return on Invested Capital %

8.6% 11.9%

7.4% 7.3% 9.9%

6.5% 6.6% 9.3%
8.9% 8.5%
5.8% 8.2% 7.9%
5.2%
4.5% 6.5%
3.6% 4.9%
4.1%

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Source: Company Analysis
7
Academic Research Project – Not a Recommendation

Result Update Q2FY26

Valuation
WACC Calculation

Particular Source
Risk Free Rate 6.43% 10Y Govt. Bond Yield ([Link])
Equity Risk Premium 5.23% Rm - Rf - 3 Year Period
Beta (3 Y Daily) 0.98 Regression Based Beta
Cost of Capital 7.59% Calculate Using CAPM
Corporate Credit Rating AAA CARE Credit Rating - June,2025
Corporate Default Spread 0.09% Excess Return Over RF Rate - GoldenPI
Cost of Debt (Pre Tax) 7.50% Risk Free Rate + Corporate Default Spread
Less: Marginal Tax Rate 25.17% Notified Tax Rate in Finance Bill, 2025
Cost of Debt (Post-Tax) 5.61% Cost of Debt tax shield
Debt To equity Ratio 0.34 latest financials
Debt Capital Ratio 25.42% latest financials
Wieghted Average Cost of Capital 7.09%

DCF Valuation
Particular (INR. Crore) FY23A FY24A FY25A FY26E FY27E FY28E FY29E FY30E

Sales 63,240 70,908 75,955 87,348 98,354 110,747 124,701 140,413

Sales Growth % 12.1% 7.1% 15.0% 12.6% 12.6% 12.6% 12.6%
EBIT Margin 12.2% 13.9% 11.6% 13.60% 13.60% 13.60% 13.60% 13.60%
EBIT 7,732 9,833 8,782 11,879 13,376 15,062 16,959 19,096
Less: Actual Tax (1,124) (1,651) (1,301) (2,072) (2,333) (2,627) (2,958) (3,331)
NOPAT 6,608 8,182 7,481 9,807 11,043 12,434 14,001 15,765
Less: Capex (9,428) (10,000) (9,000) (5,973) (6,726) (7,573)
Less: Change in WC (860) (1,996) 274 (737) (830) (935) (1,053)
Add: Depreciation 2,888 3,145 4,015 4,979 5,305 5,973 6,726 7,573
Free Cash Flow to Firm 5,060 6,610 11,604 13,066 14,713
Cost of Capital 7.09%
Discount Period 1 2 3 4 5
Present Value Factor 0.934 0.872 0.814 0.760 0.710
Present Value of Free Cash
Flow to Firm 4,725 5,764 9,448 9,935 10,446

DCF Valuation
Terminal Year FCFF 14,713
Terminal Year Growth 5.00%
Value of Terminal CF at 5th 668,594
PV of Terminal Year 474,688
PV of Forecast CF 40,318
Firm Value/Enterprise Value 515,006
Less: Value of Debt (24,102)
Add: Cash & Non operating Investment 12,224
Less: Value of Stock options/Warrants (351)
Equity Value 502,777
Number of Equity Share 29.47
Equity Value/share 17,061
Market price/share 12,370
Verdict Undervalued
Source: Company Analysis
8
Academic Research Project – Not a Recommendation

Result Update Q2FY26

Analyst Coverage
Date Research House Rating Target Price at Reco
23-Oct-25 Deven Choksey Buy 14,406 12,342

20-Oct-25 BP Capital Not Rated 12,346

20-Oct-25 ICICI Direct Buy 15,000 12,346

9-Sep-25 Motilal Oswal Buy 15,200 12,572

1-Sep-25 Emkay Buy 14,700 12,826

21-Aug-25 Deven Choksey Accumulated 14,299 12,874

8-Aug-25 Axis Direct Buy 13,840 12,157

5-Aug-25 Geojit BNP Paribas Buy 13,780 12,298

24-Jul-25 Deven Choksey Buy 14,299 12,372

22-Jul-25 Prabhudas Lilladhar Accumulated 12,634 12,452

22-Jul-25 ICICI Securities Limited Buy 14,600 12,577

22-Jul-25 Axis Direct Buy 13,840 12,452

21-Jul-25 Motilal Oswal Buy 14,600 12,577

29-Apr-25 Sharekhan Buy 13,647 11,869

29-Apr-25 Axis Direct Buy 13,510 11,869

29-Apr-25 BOB Capital Market Ltd. Buy 13,919 11,869

29-Apr-25 Prabhudas Lilladhar Buy 13,668 11,869

29-Apr-25 ICICI Securities Limited Buy 13,992 12,114

29-Apr-25 ICICI Direct Buy 14,240 11,869

28-Apr-25 Motilal Oswal Buy 13,900 12,114

28-Mar-25 Sharekhan Buy 13,000 11,509

03-Mar-25 Sharekhan Buy 13,000 10,340

03-Mar-25 Axis Direct Buy 13,510 10,340

03-Mar-25 Prabhudas Lilladhar Buy 12,303 10,340

01-Mar-25 BOB Capital Market Ltd. Buy 13,000 10,128

Source: Company Analysis, Trendlyne

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