On the back of strong first-quarter results, the shares of UltraTech Cement on Friday hit a new life high of Rs 7630 per share, after rallying for almost 2.5 per cent on the BSE intraday trade today.

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The cement major on Thursday reported more than double consolidated profit to Rs 1,700.03 crore in the said its June-ended quarter of the financial year 2021-2022, as against Rs 793.08 crore in the corresponding quarter of the previous year.

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Similarly, the revenue from operations of UltraTech jumped 54 percent year-on-year (YoY) basis to Rs 11,830 crore in Q1FY22 as against Rs 7,671 crore in the same period a year ago.

Despite strong Q1 numbers, the brokerages are divided on the stock, however, have raised the price target. In this regard, CLSA has an outperform rating on UltraTech with the target being raised to Rs 8,000 per share. It expects profitability to taper down and may turn net cash positive by FY24.

While JPMorgan has a Neutral stance on UltraTech as it believes cost pressures have built up despite Q1 beat. The brokerage raises the price target to Rs 6890 per share and points out H2 needs large hikes for a positive surprise. 

On the other hand, Macquarie maintains an Outperform call on UltraTech with an expectation of an industry-leading growth over FY21-24. It said, the company sustained cost improvement and B/S deleveraging to support earnings and valuations.

"The second wave of COVID-19 impacted domestic cement consumption in rural/urban areas alike. With gradual ease of lockdowns since June 21, the construction activities are treading towards normalcy," the company said in its filing to exchanges.

The stock at around 01:30 was trading at 0.7 per cent to Rs 7512.55 per share on the BSE as compared to a 0.36 rise in the S&P BSE Sensex today.