 "UltraTech Cement hits new all-time high on strong Q4 results")
UltraTech Cement hit a new all-time high of Rs 4,625, up 5 per cent, in early morning trade on Thursday. The stock has surged 9 per cent in the past two trading days on the BSE, after the company reported strong performance in the March quarter (Q4FY19).
The stock surpassed its previous all-time high of Rs 4,594, recorded on January 16, 2018 on the BSE in intra-day trade.
UltraTech Cement registered a strong operating performance with Ebitda (earnings before interest, tax, depreciation and amortization) rising 30 per cent year on year (YoY) at Rs 2,200 crore led by hefty beat on cost, even as realisation growth was below analysts' estimates. Ebitda/tonne jumped to Rs 1,039 compared to Rs 922 and Rs 777 in Q4FY18 and Q3FY19, respectively.
The company reported more-than-doubled standalone net profit at Rs 1,017 crore in Q4FY19, on the back of strong volume growth. It had a profit of Rs 488 crore in the same quarter a year ago. Domestic sales volume jumped 16 per cent YoY to 20.47 million tonnes. Ebitda improved 200 bps at 23 per cent from 21 per cent in year ago quarter.
Management indicated of tapering of volume growth trend in the month of April, although it expects 8-8.5 per cent YoY growth for FY20. Factoring in the beat on costs and benefit of recent price hikes, the brokerage firm Antique Stock Broking raised EBITDA by around 10 per cent/7 per cent for FY20/FY21e.
A strong recovery in its operating performance after a long time and consistent approach to trim down cost further along with focus on improvement in RoCE augur well for UltraTech Cement, analysts at Reliance Securities said in result update.
The brokerage firm Sharekhan maintain ‘Buy’ rating on UltraTech with a revised price target to Rs 5,000, assigning higher valuation multiple. UltraTech, being the market leader, is expected to reap benefits of the multi-year industry upcycle, the brokerage firm said.
The stock surpassed its previous all-time high of Rs 4,594, recorded on January 16, 2018 on the BSE in intra-day trade.
UltraTech Cement registered a strong operating performance with Ebitda (earnings before interest, tax, depreciation and amortization) rising 30 per cent year on year (YoY) at Rs 2,200 crore led by hefty beat on cost, even as realisation growth was below analysts' estimates. Ebitda/tonne jumped to Rs 1,039 compared to Rs 922 and Rs 777 in Q4FY18 and Q3FY19, respectively.
The company reported more-than-doubled standalone net profit at Rs 1,017 crore in Q4FY19, on the back of strong volume growth. It had a profit of Rs 488 crore in the same quarter a year ago. Domestic sales volume jumped 16 per cent YoY to 20.47 million tonnes. Ebitda improved 200 bps at 23 per cent from 21 per cent in year ago quarter.
Management indicated of tapering of volume growth trend in the month of April, although it expects 8-8.5 per cent YoY growth for FY20. Factoring in the beat on costs and benefit of recent price hikes, the brokerage firm Antique Stock Broking raised EBITDA by around 10 per cent/7 per cent for FY20/FY21e.
A strong recovery in its operating performance after a long time and consistent approach to trim down cost further along with focus on improvement in RoCE augur well for UltraTech Cement, analysts at Reliance Securities said in result update.
The brokerage firm Sharekhan maintain ‘Buy’ rating on UltraTech with a revised price target to Rs 5,000, assigning higher valuation multiple. UltraTech, being the market leader, is expected to reap benefits of the multi-year industry upcycle, the brokerage firm said.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%