Get App


Associate Partners

Last Updated : Apr 29, 2019 01:28 PM IST | Source:

Buy UltraTech Cement; target of Rs 5300: ICICI Direct

ICICI Direct is bullish on UltraTech Cement has recommended buy rating on the stock with a target price of Rs 5300 in its research report dated April 26, 2019

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on UltraTech Cement

UltraTech Cement’s revenues for Q4FY19 grew 16.6% Rs 10,500 crore (vs. I-direct estimate of Rs 10,095 crore) almost entirely led by volume growth. Volume sales clocked during the quarter were at 20.46 MT (vs. I-direct estimate of 19.4 MT) whereas realisations remained flat YoY at Rs 5134/t. EBITDA margins were upbeat, expanding 216 bps YoY to 21.1% (vs. I-direct estimate of 17.3%). The strong operational performance drove the margin expansion with production costs per tonne reducing from Rs 4138/t to Rs 4050/t. Consequently, EBITDA/t for the quarter was at Rs 1082/t, up 12.1% YoY. EBITDA for Q4FY19 was at Rs 2213 crore (vs. I-direct estimate of Rs 1750.4 crore). PAT for the quarter grew 108% YoY to Rs 1017 crore on account of a strong operational performance and partly due to a low base.


Hence, we remain positive on the stock with a revised target price of Rs 5300/share (valuing at 15.0x FY21E EV/EBITDA).

For all recommendations report, click here

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

Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on Apr 29, 2019 01:28 pm
More From
Follow us on
Available On
PCI DSS Compliant