HDFC Securities' research report on UltraTech Cement
We continue to like the company for its robust growth and margin outlook and balance sheet management. UTCEM delivered strong 14/23% YoY/QoQ volume growth, led by healthy demand and a gain in market share. Unit EBITDA recovered INR 150/MT QoQ to INR 1,050 per MT, led by op-lev gains and lower fuel cost. The company also tightened its working capital (to net cash in Mar-23) during H2FY23, which bloated in Sep-22. UTCEM’s phase-2 expansion is expected to be completed by FY26E.
Outlook
We maintain BUY on UltraTech (UTCEM) with an unchanged target price of INR 8,670 (16x Mar-25E consolidated EBITDA).
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