Buy UltraTech Cement; target of Rs 6724: Dolat Capital Market

Dolat Capital Market is bullish on UltraTech Cement has recommended buy rating on the stock with a target price of Rs 6724 in its research report dated January 23, 2021.

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January 27, 2021 / 03:05 PM IST
 
 
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Dolat Capital Market's research report on UltraTech Cement


UTCEM results beat on all fronts however, realization and EBITDA/tn were broadly in line. UTCEM posted 17.4% YoY growth in revenue to Rs122.5 bn led by 14.3% YoY volume growth to 23.9 mt coupled with +2.7% YoY (-0.9% QoQ) in realization to Rs5132/tn. EBITDA/ APAT up 56.4%/ 122.6% YoY to Rs30.9 bn (historic)/ Rs15.8 bn. We expect 6.8%/ 11.9%/ 22.6% revenue/ EBITDA/ APAT CAGR over FY20-23E led by 2.8%/ 8.2%/ 7.0% volume growth and 0.5%/ 1.0%/ 1.0% realization growth in FY21E/ FY22E/ FY23E.



Outlook


Thus, we maintain Buy with an upward revised TP of Rs 6,724 based on 15x (in line with 5-year average) consolidated FY23E EV/EBITDA.


For all recommendations report, click here


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TAGS: #Buy #Dolat Capital Market #Recommendations #UltraTech Cement
first published: Jan 27, 2021 03:05 pm