Dolat Capital Market's research report on UltraTech Cement
UTCEM reported revenue and volume in line, however realization/tn, EBITDA, EBITDA/tn and APAT below estimates. UTCEM posted +19.5% YoY growth in revenue to Rs155.2 bn led by +11.8% YoY in volume to 25.9 mt (+11.9% QoQ) coupled with +6.9% YoY in realization/tn to Rs6,002 (-0.2% QoQ). EBITDA/ APAT down by 3.5%/ 9.7% YoY to Rs23.4 bn/ Rs10.6 bn due to higher opex. We broadly maintain our revenue estimates for FY23E/ FY24E/ FY25E. However, we decrease our EBITDA estimates by 7.8%/ 4.8%/ 6.0% for FY23E/ FY24E/ FY25E factoring 9MFY23. Accordingly, we decrease our APAT estimates by 11.1%/ 6.6%/ 7.8% for FY23E/ FY24E/ FY25E. We expect 12.1%/ 8.6%/ 12.0% Revenue/ EBITDA/ APAT CAGR over FY22-25E led by 9.8%/ 10.1%/ 8.4% volume growth and 7.6%/ 0.0%/ 0.0% realization growth in FY23E/ FY24E/ FY25E.
Outlook
UTCEM, being the largest player in Indian cement industry is its biggest advantage. However, CMP leaves limited upside, thus we downgrade to Accumulate with a revised TP of Rs7,643 based on 15x consolidated FY25E EV/EBITDA.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
