Buy UltraTech Cement; target of Rs 8400: Sharekhan

Buy

Sharekhan's research report on UltraTech Cement

The company reported an in-line standalone performance for Q4FY2023 aided by strong volume growth of 15% y-o-y. EBITDA per tonne at Rs. 1030 was aided by a sequential decline in power & fuel and other expenses. Phase-I expansion is nearing completion while phase 2 with 22.6 mtpa has commenced. This will take its overall cement capacity to 160 mtpa during FY2026. Cement demand remains upbeat led by infrastructure segment while cement prices are expected to remain stable and power & fuel costs are likely to tread lower in the near term.

Outlook

We maintain a Buy on UltraTech with a revised PT of Rs. 8,400, increasing our valuation multiple, considering its long-term growth potential.

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UltraTech Cement - 02 -05 - 2023 - khan