Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Hold UltraTech Cement, target Rs 4,801: Edelweiss Securities

Hold UltraTech Cement at a price target of Rs 4,801.|
Apr 26, 2019, 05.52 PM IST
Getty Images
The current market price of UltraTech Cement is Rs 4,613.45.
Edelweiss Securities has a hold call on UltraTech Cement with a target price of Rs 4,801.

The current market price of UltraTech Cement is Rs 4,613.45.

Time period given by the brokerage is one year.

View of the brokerage: The robust Q4FY19 performance reported by the largest cement player UltraTech Cement (UTCL) resembled the dance of an elephant.

Consolidated EBITDA at Rs 23.3bn (up 31 per cent YoY) beat our Rs 23.0bn estimate (highest on the Street) as marginal revenue disappointment was offset by softer costs.

Given recent improvement in the cement pricing scenario, we believe UTCL’s performance could improve further; factoring the same, we revise up FY20E and FY21E EBITDA 12 per cent and 17 per cent, respectively.

However, under our valuation framework (14x EV/EBITDA rolling over to Q2FY21E EBITDA) the stock offers limited upside (given the recent sharp run). We, therefore, maintain ‘HOLD’ with revised target price of Rs 4,822 (Rs 3,971 earlier).

We continue to stay positive on the cement sector factoring the industry clinker utilisation up-cycle and maintain that UTCL will be its prime beneficiary.

Also Read

Edelweiss Securities maintains buy on Jindal Stainless, target price Rs 65

Buy ACC, target Rs 1846: Edelweiss Securities

Buy Trent, target Rs 496: Edelweiss Securities

Buy NMDC, target Rs 135: Edelweiss Securities

Hold Container Corporation of India, target Rs 570: Edelweiss Securities

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Disclaimer: This recommendation is analyst's own and does not represent those of & Please consult your financial advisor before taking any position in the stock/s mentioned.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service