HDFC Securities' research report on UltraTech Cement
UTCEM delivered yet another stellar quarter, as its 3QFY21 consolidated net sales/EBITDA/APAT soared 17/47/98% YoY to Rs 122.5/30.9/15.8bn respectively. It is driven by a robust 14% volume growth (2x industry growth) and superior opex controls (down 4% YoY). Healthy realisation also boosted the gains. The company further lowered its working capital, reducing net debt/EBITDA to 0.9x (vs 1.8x in Mar’20). We continue to like UTCEM for its strong volume focus along with superior margin delivery and working capital controls.
We maintain BUY with a higher target price of Rs 6,720/share (16x Dec’22E consolidated EBITDA).
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