UltraTech Q2 shows sector‘s trend; cautious on stock: Kotak

UltraTech Cement disappointed the street with a 52 percent fall (year on year) in its net profits. The country’s largest cement maker attributed the performance to sluggish demand and low offtake in infrastructure and housing sectors.

Kotak Institutional Equities’ Murtuza Arsiwalla said that the performance was as expected. The numbers are a reflection of the performance from the sector during the quarter, he told CNBC-TV18. Also read: Aditya Birla Group to buy Jaypee's Guj cement for Rs 3800cr Meanwhile, he is cautious on the stock given the downside risk of the earnings estimates and valuations. The firm has set a target price of Rs 1,650 on the scrip from a 12-month forward perspective. The stock was down around 0.50 percent trading at Rs 1957.20 on the NSE and Rs 1952.10 on the BSE.