Kotak Institutional Equities cautious on UltraTech Cement

Murtuza Arsiwalla of Kotak Institutional Equities told CNBC-TV18, "On a valuation basis UltraTech Cement is trading on highly optimistic numbers. If I look at my FY15 numbers I am building fairly optimistically in terms of volume growth at about 6 percent, profitability improvement of 10-15 percent, despite that the stock is trading at almost 10 times on an EV/EBITDA basis, almost 18 times on an earnings basis which is pretty much a stretch."

"We have continued to remain cautious on the stock given that there is a downside risk to our earnings estimates and valuations are very rich on our rather benign assumptions; Rs 1,650 is where we are building in on UltraTech from a 12-month forward perspective."