Better pricing offsets weak volume
UltraTech Cement Ltd. (UltraTech), a part of the Aditya Birla Group is the largest producer of grey cement, white cement and ready-mix concrete in India. It has an installed grey cement capacity of 69.3 MTPA. The company is also India’s largest exporter of cement and clinker.
Valuation: We expect revenue/PAT to grow at a CAGR of 21%/18% over FY17-19E owing to steady ramp up in capacities. Further with strong capacities in place, we believe the company is in a position to benefit from any cyclical demand recovery. Hence, we recommend ‘Hold’ with a target price of Rs. 4,514 (based on FY198E EV/EBITDA of 16x).
Research Report Ultratech Cement Ltd.
Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks. Click here to read our full disclaimer.
- Merger of Navi Overnight Fund into Navi Liquid Fund and Navi Conservative Hybrid Fund into Navi Aggressive Hybrid Fund
- Intimation of suspension of subscription in Bandhan US Equity Fund of Fund
Winning Funds, Losing Streaks: Decoding the Mystery of Short-Term Underperformance
Wealth Conversations – November 2024- Notice of Change in Fundamental Attributes of DSP Equity & Bond Fund and DSP Quant Fund
