Sharekhan's research report on UltraTech Cement
Q3FY2023 standalone revenues were better than estimates, while operational and net profitability came in a tad lower than estimate on account of lower-than-expected blended realisations. It would revert to four digit EBITDA/tonne in Q4 expecting strong demand, lower power & fuel costs and stable pricing environment. It commissioned 6.8mtpa cement capacities during 9MFY2023 while it would be commissioning ~10 mtpa in next few months. Petcoke are prices expected to remain rangebound, while cement prices to be firm with upward bias.
We maintain Buy on UltraTech with a revised PT of Rs. 8,100, factoring downwardly revised estimates and long-term growth potential and reasonable valuation.