Stock Market update: UltraTech Cement shares down by 2.52% post Q3 results

Consolidated profit after tax (PAT) of Rs 1,708 crore was recorded by the company for the third quarter for FY21 and was higher by 7.8% against Rs 1,584 crore in the year-ago period.

Shares of the Indian cement company, Ultratech Ltd tanked down by 2.52 per cent at Rs 7,678.85 (−191.25) at 1:32 pm IST in the Tuesday session. Consolidated revenue (including operating income) increased by 6 per cent at Rs 12,985 crore from Rs 12,254 crore in the December 2020 quarter and Rs 12,017 crore in the previous 3 months.

Consolidated profit after tax (PAT) of Rs 1,708 crore was recorded by the company for the third quarter for FY21 and was higher by 7.8% against Rs 1,584 crore in the year-ago period.

The cement stated that the demand slowed down substantially in November 2021 as a result of the construction ban in the NCR after attaining swiftness in October 2021 which was further hindered by extended monsoons in the South and a few states in the North, sand issues in the Eastern region as well as in parts of Uttar Pradesh, and the Diwali holiday season.

The 12-month accord price target indicates an upside of 12.6%. Of the 45 analysts tracking the company, 39 sustain a ‘buy’, four advise a ‘hold’ and two suggest a ‘sell’ according to Bloomberg.

“During the quarter, trade sales were impacted more than non-trade sales, as overall cement demand remained subdued. With the onset of the peak season and rising construction activities, cement demand is expected to revive in Q4FY22, driven by a pick-up in the government-led infrastructure and housing projects. Rural and urban demand was also expected to pick up, which would be good for the company,” the company said in a release.

“We believe UTCEM with its large pan-India diversified market presence, premium brand positioning, timely capacity creation and increased cost efficiencies is better placed to gain market share/improve margins in the medium term. We maintain BUY with a revised target price of Rs 8,080 per share (earlier Rs 8,850) based on 15x FY24E EV/E on quarterly rollover,” it said.

In the white cement segment, UltraTech goes under the brand name of Birla White. It has a white cement plant with a capacity of 0.68 MTPA and 2 Wall-Care putty plants with a fused capability of 0.85 MTPA. With 100+ Ready Mix Concrete (RMC) plants in 39 cities, UltraTech is the largest manufacturer of concrete in India

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time