Sharekhan is bullish on UltraTech Cement has recommended buy rating on the stock with a target price of Rs 5000 in its research report dated October 22, 2019.
Sharekhan's research report on UltraTech Cement
In Q2, Ultratech’s restated standalone net profit grew 72% y-o-y led by a 6% rise in realisation and muted rise in opex. Century’s assets post weak operational performance was marred by rains and maintenance shutdown. The Management expects soft demand environment in FY2020 factoring in slower pace of government infrastructure spending. Focus on improving Century’s operational performance and de-leveraging through overseas asset sale. Ultratech to expand capacity by 3.4MTPA in East which is expected to commission by FY2021 end.
We maintain Buy on Ultratech with unchanged PT of Rs. 5000 estimating strong net earnings growth over FY2019-FY2021 led by healthy revenue growth and improvement in OPM.
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