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Last Updated : Jan 23, 2017 11:34 AM IST | Source: CNBC-TV18

UltraTech Q3 earnings good, but stock valuation rich: Kotak

UltraTech Cement posted better-than-expected third quarter earnings Saturday but Murtuza Arsiwalla, analyst at Kotak Institutional Equities is not too optimistic on the stock right now due to its rich valuations.


UltraTech Cement posted better-than-expected third quarter earnings Saturday but Murtuza Arsiwalla, analyst at Kotak Institutional Equities is not too optimistic on the stock right now due to its rich valuations.


Sharing his take on the earnings with CNBC-TV18, Arsiwalla said the company has done fine on the volumes and realisations front with a lower-than-anticipated 2 percent decline each on a year-on-year despite the demonetisation impact.


Although profitability at Rs 950-960 per tonne has been maintained this quarter, he noted the costs side pressures are increasing, especially on power and fuel.

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The company still has to complete and absorb the Jaiprakash acquisition, which might be straining, he said.


He prefers Grasim Industries instead as its valuations look more reasonable.

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First Published on Jan 23, 2017 11:21 am
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