UltraTech Cement: Street watchful on valuations of new acquisition

Post consolidation of Century and Binani Cement assets, new acquisitions at stretched valuations may not bode well, say analysts

UltraTech Cement is in the news for being the frontrunner in the race for acquiring Emami group’s cement assets. The 8 million tonne (MT) of Emami’s cement capacities bode well for UltraTech, India’s largest cement maker, and would help the company strengthen its presence and market share in the eastern region. The move is in line with UltraTech’s pursuit of inorganic growth opportunities. Over the past few years it has acquired Jaiprakash Associates’ cement assets in Madhya Pradesh and Gujarat followed by Binani Cement’s assets in Rajasthan; the latest was the amalgamation and turning around of Century Textiles’ cement assets.