What should investors do with UltraTech Cement post Q4 result: buy, sell or hold?

Consolidated revenue grew by 32.7 percent YoY to Rs 14,405.61 crore in March 2021 quarter, with volume growth at 28 percent YoY.

May 10, 2021 / 09:48 AM IST
 
 
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UltraTech Cement share price fell 1 percent in early trade on May 10 after the company reported its March quarter numbers.

The country's largest cement manufacturer on May 7 registered a 45.2 percent year-on-year (YoY) decline in consolidated profit at Rs 1,775.23 crore for the quarter ended March 2021. But the adjusted profit grew by 57 percent, compared to Rs 1,129 crore in the year-ago quarter.

Consolidated revenue grew by 32.7 percent YoY to Rs 14,405.61 crore in March 2021 quarter, with volume growth at 28 percent YoY.

Also Read - UltraTech Cement Q4 profit falls 45%; revenue, operating numbers beat estimates

Here is what brokerages have to say about the stock and company after March earnings:

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Nomura | Rating: Buy | Target: Rs 7,650

It was a good Q4 with a beat on all counts. The EBITDA was ahead on stronger volume, while profit was impacted by lower other income.

The key downside risks include extended lockdowns impacting cement demand, while lower cement prices & a sharp increase in operating costs are also risks.

CLSA | Rating: Outperform | Target: Rs 7,500

Consolidated EBITDA of 12% was above our estimate & debt reduction is on track. The blended realisation was higher-than-expected while costs were largely in line.

Motilal Oswal | Rating: Buy | Target: Rs 8,050

While it is ramping up its under-utilized acquired capacities, it also has a strong pipeline of expansion projects that offers strong growth visibility.

We estimate 11%/19% CAGR in consolidated EBITDA/PAT over FY21-23E, driven by 11% CAGR in volumes, lower operating costs, and lower interest costs.

At 09:36 hrs, UltraTech Cement was quoting at Rs 6,407.25, down Rs 77.55, or 1.20 percent on the BSE.

The share touched a 52-week high of Rs 7,050 and a 52-week low of Rs 3,235 on 09 April, 2021 and 07 May, 2020, respectively.

Currently, it is trading 9.12 percent below its 52-week high and 98.06 percent above its 52-week low.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: May 10, 2021 09:48 am

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