Operating Margin

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Price: 103 USD Market Closed

Market Cap: $29.7B

12.6%

Improving

by 0.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

12.6%

Operating Income

₹104.8B

Revenue

₹831.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

12.6%

Operating Income

$104.8B

Revenue

₹831.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
IN		UltraTech Cement Ltd NSE:ULTRACEMCO	3.6T INR	Loading...
IE	C	CRH PLC NYSE:CRH	83.5B USD	Loading...
CH		Holcim AG SIX:HOLN	41.9B CHF	Loading...
DE		HeidelbergCement AG XETRA:HEI	42.2B EUR	Loading...
US		Vulcan Materials Co NYSE:VMC	39.5B USD	Loading...
US		Martin Marietta Materials Inc NYSE:MLM	39B USD	Loading...
DE	H	Heidelberg Materials AG XMUN:HEI	27.4B EUR	Loading...
US	A	Amrize AG SIX:AMRZ	23.5B CHF	Loading...
IN		Grasim Industries Ltd NSE:GRASIM	1.9T INR	Loading...
MX		Cemex SAB de CV NYSE:CX	18.9B USD	Loading...
CN		Anhui Conch Cement Co Ltd SSE:600585	125.8B CNY	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

UltraTech Cement Ltd
Glance View

Economic Moat

None

Market Cap

29.7B USD

Industry

Construction

In the world of construction materials, UltraTech Cement Ltd. stands as a colossus, casting a long, influential shadow across India's infrastructure landscape. Born out of the visionary ambitions of the Aditya Birla Group, UltraTech embarked on its journey to revolutionize the cement industry with an unyielding commitment to quality and sustainability. Headquartered in Mumbai, this giant has meticulously orchestrated its operations to stretch across not only India but also overseas markets in the Middle East, Sri Lanka, and beyond. With an eye keenly on scalability and efficiency, UltraTech operates an extensive network of plants, spanning 23 integrated units, 27 grinding units, and 7 bulk terminals, which facilitate a staggering annual production capacity of over 120 million tonnes. This robust infrastructure underpins the company's meticulous approach to producing a wide array of products including Ordinary Portland Cement, Portland Pozzolana Cement, and specialty concretes, catering to a diverse range of construction needs. UltraTech thrives on its intricate business model that weaves through manufacturing, distribution, and retail. Cement production begins with the procurement of limestone, a key raw material, which is then subjected to complex chemical processes involving heating at high temperatures in kilns. The result is clinker, which is mixed with additives and ground into the fine powder recognized as cement. The company not only capitalizes on its vast production capabilities but also invests heavily in logistical infrastructure, ensuring timely delivery through a vast network of dealerships, which exceed 80,000 outlets. By maintaining rigorous quality checks and leveraging cutting-edge technology, UltraTech Cement ensures a consistent product that meets varied construction standards. Strategic marketing and branding efforts fortify its position in the minds of consumers, while its focus on sustainability initiatives, such as waste heat recovery and carbon reduction, enhances its corporate ethos, turning both economic and environmental considerations into avenues for profitability.

View UCLQF Analysis

UCLQF Intrinsic Value

Overvaluation 19%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

UltraTech Cement Ltd
OTC:UCLQF

Peer Comparison

Market Distribution

Other Profitability Ratios

UltraTech Cement Ltd
Glance View

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52 Week Range	102.1027 103
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UltraTech Cement Ltd OTC:UCLQF