Buy Ultratech Cement; target of Rs 4420: Axis Direct

Axis Direct is bullish on Ultratech Cement has recommended buy rating on the stock with a target price of Rs 4420 in its research report dated October 18, 2016.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Recommendations

Oct 19, 2016, 05.11 PM | Source: Moneycontrol.com

Buy Ultratech Cement; target of Rs 4420: Axis Direct

Axis Direct is bullish on Ultratech Cement has recommended buy rating on the stock with a target price of Rs 4420 in its research report dated October 18, 2016.

Like this story, share it with millions of investors on M3

Buy Ultratech Cement; target of Rs 4420: Axis Direct

Axis Direct is bullish on Ultratech Cement has recommended buy rating on the stock with a target price of Rs 4420 in its research report dated October 18, 2016.

Post Your Comments

Share Cancel

(more)

, Axis Securities Limited |


Axis Direct's research report on Ultratech Cement

UltraTech reported an EBITDA/ton of more than Rs 1,000 in Q2FY17, which is commendable, given Q2 is a seasonally weak quarter for cement industry due to monsoon. This is the highest EBITDA/ton for September quarter in past four years. Firm cement prices across regions despite low off-take (volume growth of only 1% YoY) was the key reason for higher profitability.

Standalone EBITDA at Rs 11.5 bn (up 17% YoY) was in line with consensus and our estimates. Blended EBITDA/ton was Rs 1,030 (vs. Rs 890 in Q2FY16 and Rs 1,080 in Q1FY17). Average realization improved 3% QoQ to Rs 4,880/ton due to cement price hikes in North/South regions. Volumes at domestic operations were 11.2 mnt (up 1% YoY). Cost/ton increased 6% QoQ due to higher cost of pet-coke and negative operating leverage because of lower sales.

We maintain our EPS estimate for FY17/18 at Rs 126/170 with a target price of Rs 4,420 (10% upside from CMP of Rs 4,009).

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

Buy, Hold, Sell ? Hear it first on M3
Buy Ultratech Cement; target of Rs 4420: Axis Direct

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login