Sharekhan has given Buy recommendation for UltraTech Cement with a target price of Rs. 8800 in its research report issued on Jul 22, 2021
Sharekhan’s research report on UltraTech Cement
In Q1FY2022, UltraTech continued to surprise positively on the operating front aided by healthy volume growth seen amid the COVID-19 impact in Q1FY2022, rise in cement prices and contained operating costs. Net debt continue to tread lower in Q1. Further, there was a material loan payoff in July 2021. Target to turn net cash in FY2024 and an addition of 19.5MTPA by FY2023 remain intact. Underlying demand from rural, urban real estate and large infrastructure projects is expected to remain robust. The management fairly confident of improving operational profitability further.
We maintain a Buy rating on UltraTech Cement (UltraTech) with a revised PT of Rs. 8,800, factoring upwardly revised estimates led by sustained healthy demand environment over FY2022-FY2024.