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    Analysts shrug off UltraTech's muted Q2, remain bullish

    Synopsis

    Most brokerages have maintained a bullish view on UltraTech Cement after the company reported a 7.6% year-on-year rise in its net profit for the quarter ended September to Rs 1,300.1 crore, which was below analysts' expectations.

    UltraTech Cement sharesETRealty
    The company posted a 15.3% year-on-year growth in revenue from operations for the quarter.
    Mumbai: Most brokerages have maintained a bullish view on UltraTech Cement after the company reported a 7.6% year-on-year rise in its net profit for the quarter ended September to Rs 1,300.1 crore, which was below analysts' expectations.

    The company posted a 15.3% year-on-year growth in revenue from operations for the quarter.

    Shares of UltraTech Cement ended down 3% at Rs 7,174.90 on Tuesday. Barring Jefferies and IDBI Capital which have maintained a 'hold' rating on UltraTech, others have retained buy or buy-equivalent ratings.
    Ultratech

    "With its strong capacity addition pipeline and focus on cost efficiency, UltraTech Cement is well placed to benefit from the current demand upcycle. However, with the stock trading largely in-line with its median EV/Ebitda, visibility on sustained price increases to offset cost inflation will be key," said CLSA.

    HSBC said significant price increases are required to offset the rising input costs which is a key concern for sustaining the growth momentum. UltraTech will remain the key beneficiary of the demand upcycle in the medium term, while cost inflation in the near term remains a key risk to earnings forecast, said HSBC.




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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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