UltraTech Cement Achieves Milestone: Hits Rs 10,000 per Share

Cement giant UltraTech Cement is engaged in the manufacturing and sale of cement and cement-related products primarily in India. Today, the company’s shares experienced a significant surge in price, reaching a milestone of Rs 10,000 per share. Also, it holds the position of the largest company in its industry in terms of market capitalisation.

At the start of the trading day, it opened at Rs 9895.45 per share on the BSE, marking a 0.32% increase compared to the previous day’s closing price of Rs 9863.65 per share. Throughout the day, it reached an intraday high of Rs 10,040 and a low of Rs 9,695.90. As of the time of writing this article, it is trading at Rs 9,730 per share, reflecting a 1.35% decrease from the previous day’s closing price.

The current market capitalisation of the company stands at Rs 2,80,685 crore, which is the highest in the cement sector. The second-largest company, Shree Cement, boasts a market capitalisation of Rs 1,02,455 crore. This showcases the significant difference in size between the two, with UltraTech Cement being over twice the size of the second-biggest cement manufacturer.

3660% Return Journey 

The company’s shares commenced trading in August 2004 for Rs 265.90. Within just 37 days, by October 2004, it surged to Rs 300. Doubling in value, it reached Rs 600 within 516 days, approximately 1.5 years. Subsequently, in about a year, by January 2007, the price doubled again, hitting Rs 1,200 in just 317 days.

Following this, it took over 7 years or 2675 days for the share price to double, reaching Rs 2,400. However, in the subsequent five years, within 1,830 days, it surged to Rs 4800. Remarkably, in December 2023, within this very month, the price doubled again, skyrocketing to Rs 9600 per share. Today, it has reached an all-time high of Rs 10,000 per share.

For an investor who put Rs 1,00,000 into the company at the time of its listing, the investment would now be valued at Rs 37.60 lakh, marking an exceptional return of around 3660% over the last 19 years.

Stock Price Chart (Since Inception): 

Mergers and Acquisitions 

Between 2013 and 2023, UltraTech Cement underwent significant strategic expansions and acquisitions in the cement sector. It acquired key assets, including Jaypee Group’s Gujarat cement unit for Rs 3,800 crore in 2013, followed by Jaiprakash Associates’ six integrated cement plants for Rs 16,189 crore in 2017. In 2018, UltraTech cemented its growth by demerging Century Textile’s cement business into its own and acquiring Binani Cement for Rs 7,266 crore. In December 2023, it continued its expansion by acquiring Burnpur Cement’s grinding assets for Rs 169.79 crore, showcasing its commitment to market dominance and strategic growth.

Company Profile 

UltraTech Cement was formerly known as L&T (Larsen & Toubro) Cement before it was renamed UltraTech Cement.

In August 2000, L&T Cement Ltd. was established, undergoing a name change to UltraTech Cemco Ltd. in November 2003. Shortly after, in July 2004, Grasim Industries Ltd. gained management control of the company. By August of the same year, UltraTech Cement Ltd. made its debut on the Indian stock market. Finally, in October 2004, the company adopted its current and well-recognized name, UltraTech Cement Ltd., marking a significant step in its corporate identity and establishing itself in the cement industry.

It is India’s largest cement manufacturing company by market capitalisation, boasting a capacity of 136.65 million Tons Per Annum (MTPA) of grey cement. UltraTech Cement produces various types including Ordinary Portland Cement, Portland Pozzolana Cement, and Portland Blast Furnace Slag Cement, among others. The company conducts business operations across the UAE, Bahrain, Sri Lanka, and India. With a diversified brand portfolio, it includes products such as UltraTech Cement, UltraTech Premium, Birla Super, and Birla White.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.