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Ultratech Cement Stock Gains After Strong Q4 Numbers; Should You Buy, Sell Or Hold? – Prime Time News24


Ultratech Cement has introduced its This autumn monetary outcomes.

Ultratech Cement posted robust income and revenue in Q1, pushed by double-digit quantity progress and decrease prices; Do you have to purchase?

Ultratech Cement posted robust income and revenue in Q1, pushed by double-digit quantity progress and decrease prices. Nonetheless, declining costs had been a priority attributable to erratic cement pricing throughout the nation. The administration expects subdued demand this fiscal 12 months however doesn’t anticipate a chronic slowdown.

UltraTech Cement shares rose as a lot as 2.38 per cent to Rs 10,200 apiece on the BSE.

UltraTech Cement This autumn outcomes had been introduced on Monday and the inventory had ended 2.7% larger through the session. The nation’s largest cement producer reported robust earnings for January-March quarter as its consolidated web revenue rose 36% to ₹2,258 crore from ₹1,666 crore year-on-year (YoY), beating estimates, led by a decline in gas prices and double-digit quantity progress.

The corporate’s consolidated income from operations in Q4FY24 elevated 9.4% YoY to ₹20,419 crore.

On the working stage, EBITDA was at ₹4,250 crore, with a margin of 20.81%.

“The corporate’s imported gas consumption value throughout Q4FY24 was 13% decrease than Q4FY23, and it remained flat QoQ. Efficient capability utilization was 98% through the quarter and 85% for the complete 12 months,” UltraTech stated in an announcement.

Going ahead, the demand for cement throughout all sectors continues to stay sturdy, which augurs nicely for the corporate, it added.

What Ought to Buyers Do?

UltraTech Cement reported an especially good set of outcomes as reported EBITDA got here in 11 per cent forward of estimates. Opposite to a few of the different peer firms which have reported numbers as of now, Ultratech’s EBITDA/mt was flat on QoQ foundation in comparison with our estimate of ₹150/mt drop. Higher than anticipated blended realizations (owing to larger RMC income) and improved prices resulted in an earnings beat, Centrum Broking stated.

It believes Ultratech Cement is more likely to strengthen its numero uno place via higher market share and industry-leading profitability.

The brokerage maintained an ‘Add’ score on the inventory and raised UltraTech Cement’s share value goal to Rs 11,200 from Rs 10,550 earlier.

Nomura maintained a purchase score and raised the goal value by 20 per cent to Rs 12,000. Ultratech goals to realize a cement capability of 200MT or extra, with a projected progress to 183MT (excluding Kesoram) by FY27, representing a 9 per cent CAGR from FY24-27. Part 3 enlargement plans embrace including 22MT capability at USD72/t with an estimated IRR of 15 per cent. The corporate awaits regulatory approvals for the acquisition of Kesoram, which is anticipated to be accomplished by March 2025, taking Ultratech’s capability to over 190MT by FY27F. The administration is assured about attaining the 200MT capability organically.

Regardless of latest value will increase, decrease consumption within the election quarter might result in moderated costs, with a projected 1% sequential decline in blended realisation. Quantity moderation within the election quarter might lead to 7 per cent larger fastened prices in 1QFY25F, resulting in an anticipated moderation in EBITDA/t to Rs 1,080/t in 1QFY25F.

Jefferies stated Ultratech’s efficiency within the fourth quarter surpassed expectations, with EBITDA rising by 24 per cent YoY and 26 per cent QoQ. This was regardless of weak costs being balanced out by barely higher volumes (+11% YoY), elevated different working revenue, and decreased overheads.

The administration emphasised focused value financial savings of Rs 200-300 per ton within the medium time period to drive profitability. We’ve adjusted our FY25 EBITDA estimate downward by 2 per cent, however keep our FY26 estimates. This adjustment is because of our revised expectation of flat value progress YoY (beforehand estimated at +1-2 per cent YoY), anticipating margin enlargement in FY25 as cost-saving initiatives from the second half of FY24 proceed into FY25.

Disclaimer:Disclaimer: The views and funding ideas by specialists on this Prime Time News24.com report are their very own and never these of the web site or its administration. Customers are suggested to test with licensed specialists earlier than taking any funding choices.

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