Accumulate Ultratech Cement; target of Rs 4500: Prabhudas Lilladher

Prabhudas Lilladher's research report on Ultratech Cement

Ultratech (UTCEM) reported Q2FY18 earnings ahead of our expectation. The key surprise came on account of lower other expenses. Given the lumpiness of cost components and stabilisation of acquired assets underway, we believe that current quarter don’t reflect the steady run‐rate of other expenses and hence, we keep our earnings estimates unchanged for FY18E/FY19E.

Outlook
Given the rich valuations and relatively better earnings outlook for its peers, we remain cautious on the stock in medium term. Maintain Accumulate with TP of Rs4500, EV/EBITDA of 16x FY19E.

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