ICICI Direct is bullish on UltraTech Cement has recommended buy rating on the stock with a target price of Rs 5000 in its research report dated April 26, 2018.
Broker Research
ICICI Direct's research report on UltraTech Cement
UltraTech Cement reported volume growth of 32.1% YoY to 17.6 MT (above I-direct estimate of 17.4 MT) mainly led by increase in utilisation of Jaypee assets from 51% to 75%, better sand availability and higher infra demand. Consequently, revenues increased 36.5% YoY to | 9,002.5 crore (vs. I-direct estimate of | 8,828.5 crore).
Outlook
Further, cost rationalisation is expected to keep the company ahead of its peers in terms of profitability. Considering this, coupled with industry-leading growth, higher margins and a healthy balance sheet, we maintain our BUY rating on the stock with a target price of | 5,000/share (i.e. at 16x FY20E EV/EBITDA).For all recommendations report, click here
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