Accumulate Ultratech Cement, target of Rs 602: P Lilladher

Prabhudas Lilladher has reiterated its accumulate rating on Ultratech Cement with a price target of Rs 602 in its April 21, 2009 research report.

“Ultratech Cement (UCL) reported PAT of Rs 3.1 billion, in-line with our
expectation of Rs 3.2 billion. Net revenue grew 16% on the back of 11% volume growth and 4% rise in blended realisation. Growth in blended realisation was restricted to 4% due to a sharp fall of 8% in clinker exports realisation despite 8% rise in domestic cement realisation.”

“Banking on higher volumes base and significant savings in cost associated with addition of CPPs and softening of imported coal prices, the company is expected to post earnings for FY10 despite sharp pressure on realisations post Q1FY10. Valuations still looks attractive compared to its peers despite a sharp run of 54% in the stock price till date since Q3FY09 end. Hence, we reiterate ‘Accumulate’ rating on the stock, with a price target of Rs 602,” says Prabhudas Lilladher’s research report.

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