UltraTech Cement – Fade

UltraTech Cement Limited is an Indian cement company based in Mumbai. It is the largest manufacturer of grey cement, ready-mix concrete (RMC) and white cement in India with an installed capacity of 116.75 million tonnes per annum.

UltraTech Cement Ltd has stated that input cost constraints mainly for fuels like coal and pet coke, have drawn down the profits during Q4FY23.

The company registered their consolidated net profit for the fourth quarter at ₹1,666 crore which has fallen down by 36% from ₹2620 crore as compared with the corresponding quarter of the previous year.

The company has made excuses of energy costs which have increased by 17% Year-on-Year and reduced by 4% sequentially. Prices for coal and pet coke have risen by 18% Year-on-Year. The cost of raw materials has risen by 9% Year-on-Year which have made consequential raise in the cost of fly ash, slag, and other raw materials.

Consolidated revenue from operations has enhanced by 18% in Q4FY23 at ₹18,662 crore from ₹15,767 crore in Q4FY22.

The company has registered sturdy growth in consolidated sales volume in Q4FY23 at 3.17 crore tonnes (mt), with domestic sales at 30.5 mt. The Year-on-Year growth rate was at 15%. Growth in Ultratech’s market share have been supported by strong demand and a capacity enhancement which has advanced volumes. During FY23, the cement capacity utilization was at 95%.

UltraTech Cement Weekly Candlestick Chart on Sharekhan’s TradeTiger

UltraTech Cement share price is heading up towards its lifetime high as the price takes support along the trendline marked on the chart. The price might move up till Rs 8269 and make a double top. Traders have a long opportunity and an upcoming short opportunity of a double top. Investors may enter into this stock on deep corrections, currently, this stock must be avoided as the stock appears to be highly overbought.

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