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.
- Discontinuation of the Systematic Investment Plan (SIP) of the Designated Schemes of MOMF
- Change in Maximum Subscription Amount of Aditya Birla Sun Life Medium Term Plan
Wealth Conversations – December 2024
Are Arbitrage Funds right for you?- Introduction Of Daily, Weekly Frequency In Sip And Changes In Default Sip Date And Minimum Investment Amount For The Groww Mutual Funds
