Sharekhan's research report on UltraTech Cement
Average cement prices during Jan-Feb 2022 are up 6% y-o-y led by sharp price increase in South and East regions during February 2022. Cement transported through rail rise 4% y-o-y and 13% m-o-m during January 2022 despite Omicron impact in first half. We expect the company to register y-o-y growth for Q4FY2022. International and domestic pet coke prices eased during Jan-Feb 2022 compared to Q3FY2022. However, the recent hike in crude price would warrant price hike in case pet coke price move northwards.
We maintain Buy on UltraTech Cement (UltraTech) with an unchanged PT of Rs. 9,200, factoring in sustained healthy demand environment over FY2022-FY2024.