Sharekhan has given Buy recommendation for UltraTech Cement with a target price of Rs. 9200 in its research report issued on Jan 17, 2022

Sharekhan’s research report on UltraTech Cement

In Q3FY2022, UltraTech reported broadly in-line performance as marginally lower-than-expected volumes were offset by higher realisation. Consolidated net debt reduced sequentially by Rs. 189 crore. Management expects Q4FY2022 to see y-o-y volume growth, as demand rebounds post one-off weak November. Management expects FY2023 to witness healthy demand, led by infrastructure, rural housing, and urban housing. . The company announced almost doubling of white cement capacity. Balance grey cement capacity expansion of 16.3mtpa remains on track and is expected to come onstream in FY2023.

Outlook

We maintain Buy on UltraTech Cement (UltraTech) with a revised PT of Rs. 9,200, factoring sustained healthy demand environment over FY2022-FY2024.

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