UltraTech Cement stocks rallied 6.6 percent intraday to hit a file high of Rs four,686.30 on April 25 as brokerages retained their tremendous stance at the stock after organization’s March zone profits.
The stock was quoting at Rs four,661.50, up to Rs 265.05, or 6.03 percent on the BSE, at 1216 hours IST. Grasim, which holds the first-rate stake in UltraTech, also rallied 6 percentage.
The cement primary stated a whopping 108 percentage yr-on-12 months increase in March quarter income at Rs 1,017 crore, driven by way of income volume and operating profits boom.
Standalone sales from operations in Q4 expanded 18.Three percentage with sales volumes growth at 15.Four percent YoY. EBITDA (profits earlier than interest, tax, depreciation, and amortization) grew 30 percent YoY and margin elevated to 21.08 percent YoY (from 19.20 percentage) at some point of the quarter.
Brokerages remained effective on the inventory with a few also elevating charge goal. Here is what they say Target: Rs five,270 percent
We have a purchase score at the inventory and raised rate target to Rs five,270 from Rs 5,1/2 earlier on sturdy give up to FY19 and cognizance on reducing debt. We raised FY19-21 EPS estimates by 3-11 percent.
Management believes the industry is decisively in an upcycle.
Election final results and monsoon are key events to watch.
Brokerage: Deutsche Bank four,815 percentage
We assume the margin to now exceed Rs 1, one hundred according to tonne supported by using price hikes and raise above consensus EPS estimates by a similarly eight-10 percentage.
Stock is trading at 12x FY21 EV/EBITDA, 35 percent cut-price to 5-12 months average. Every 1 percentage boom in charge improves its FY20e EPS by using 9 percent.
We have a buy score on the inventory and accelerated our rate goal to Rs four,815 from Rs 4,575 in advance Rating: Accumulate 4,seven-hundred Return: 7 percent
We upgrade EBITDA estimates for FY20/FY21 by using 15 / 21 percent to the thing in better realizations coupled with better potential utilization, advanced margins and deleveraging of Non-middle assets in acquired belongings. We improve the stock to ‘Accumulate’ with TP of Rs four, seven hundred (in advance Rs 3,725).
Brokerage: HDFC Securities 5,one hundred forty Return: 17 percentage
We endorse a purchase on UltraTech with a goal price of Rs five, one hundred forty. We ascribe top rate valuations to the stock thanks to UltraTech’s capability management (25 percentage market percentage in India) and advanced working income outlook (Rs one thousand/MT+) and solid stability sheet.
Strong demand and pricing outlook along with employer’s rising fee efficiencies and lower electricity prices should improve profits in subsequent Target: Rs four,943 percent
Company has posted 14 percent YoY growth in volumes ordinarily led by way of the robust call for in low-priced housing projects. Going forward, fashionable elections may additionally impact some call for in starting of financial 12 months but put up elections, infrastructural spending and Housing-For-All scheme to benefit momentum which offers us robust volume growth visibility for the relaxation of the yr.
We price Ultratech at Rs 4,943 on SOTP basis and advise ‘collect’ rating in this inventory.