Ultratech cement stock prices fell 2 percent amid ordering profits at the beginning of trading on January 18, a day after the company reported quarterly in December.
At 9:43 a.m., the script was traded at RS 7680.00 a piece of BSE, down 2.39 percent, while the benchmark Sensex retreated 0.17 percent to 61,202.56.
Exceeded expectations, ultratech cement on January 17 reported consolidation profit after tax (PAT) from Rs 1,708 Crore for the quarter ended December 2021, up 7.8 percent against Rs 1,584 Crore in the period last year. Pat during the previous quarter stood at Rs 1,314 Crore.
The company’s net sales consolidation in the December quarter was established at Rs 12,710 Crore, up 5 percent from Rs 12,144 Crore in the period last year.
Consolidated income (including operating income) expectations of meeting and 6 percent higher at Rs 12,985 Crore from Rs 12,254 Crore in December 2020 quarter and Rs 12,017 Crore in the previous three months period.
Operating income for this quarter is Rs 275 Crore, up 133 percent.
Here is a broker what to say about stocks and companies:
Credit Suisse
The research firm has continued to outperform the rating behind the shares behind the dynamics of the underlying sector at the price & demand.
The company has continued target at Rs 9,250 behind a strong positive outlook on the investment cycle of housing and infrastructure.
Things revised income with -20% / – 9% / – 6% for FY22 / 23/24 impact costs.
Citi.
The house broker has continued to rank buy and raise the target price of Rs 9,100 from Rs 8,500.
The cost pressure that tends to culendate in Q3 and the speed of price acceleration must slow the expectation of FY23 supply given.
Goldman Sachs.
Goldman Sachs has maintained a buy call on shares and raises the price target of Rs 9,000 from RS 8,800 as a permanent company to choose in this sector, given the capacity expansion plan.
The results are in-line with mixed-term prospects; But the structural thesis is intact.
This is choosing top in the sector on the scale, premium price determination & increasing green power share.
Jefferies.
The Jefferies home broker has maintained a ranking hold with a target at Rs 8,100. Its EBITDA misses higher costs, while the increase in cement prices is the key to getting back the land missing.
Management has indicated that costs tend to remain high in Q4. Cement prices have begun to improve in several regions and expect price increases in other regions in the next 2-3 months.
Jefferies have Cut FY22-FY24 EBITDA estimates 7-9% to reflect cost pressure.
CLSA
CLSA home research has maintained a buy call with a target at Rs 9175 per share because it expects stocks to be outperformed with increasing prices likely in Q4 & strong demand and expect the company to become the main beneficiary of upcycle requests.
Its q3 ebitda slightly above & costs may have reached its peak.
The company expects electricity to remain at the current high level in Q4 and the drop in spot prices will be reflected in FY23.
Prabhudas Lilladher.
We continue as Ultratech is given a leading market position (20% + market share), which is strong B / S (clean debt / EBITDA at 0.5x) and efficient operation.
However, high hopes with a 2-year CAGR volume of 12%, EBITDA / T from RS 1,300 and a rich Valuation of EV / EBITDA of 14.2x and P / E from 24.6x FY24E leaves are limited to reverse with the potential risks of downgrade profit.
We downgrade shares to accumulate with the RS 8535 Revised Price Target (Previous Hospital 8650) EV / EBITDA from 15.5x FY24E.
