UltraTech Cement Delivers 137% Return to Shareholders, Despite Stable ROCE

UltraTech Cement Delivers 137% Return to Shareholders, Despite Stable ROCE

When evaluating UltraTech Cement’s (NSE:ULTRACEMCO) performance, it’s essential to take a balanced view. Over the last five years, the company has employed 27 percent more capital, but its return on capital employed (ROCE) has remained steady at 11 percent. While this might not be an exciting figure, the consistency and ability to reinvest in profitable initiatives at this rate are noteworthy.

Although the trend of ROCE does not stand out as exceptional, it signifies that UltraTech Cement is successfully reinvesting its capital at a moderate but stable return. This level of consistency can provide long-term value for shareholders, as it has with a remarkable 137 percent return to those holding stock over the last five years.

The key takeaway here is that UltraTech Cement has demonstrated its ability to reinvest in its business at respectable rates, which, combined with strong stock performance, makes it an appealing option for further research, even as the stock price might appear higher than before. Given the solid fundamentals, UltraTech Cement continues to be a noteworthy player in the cement industry.