Hold Ultratech Cement - Emkay

Reco: HOLD
CMP: Rs 1574
Target Price: Rs 1530

Realization led surprise drives profit beat

- 1Q EBITDA at Rs12.9bn (+9% yoy) ahead of our (Rs12 bn) & street est (Rs12.5bn) led by better realisation (Rs4913/t, +12.3% yoy & 6% qoq)- EBIDTA/t at Rs1250 +15% yoy

- Though total cost increase of 3.8% qoq, surprised negatively, positive surprise led by just 1.9% qoq increase in P&F cost & 6% jump in freight (despite 23% rail freight hike)

- Quality of numbers good as EBIDTA beat driven by higher realisation as cost seems to have peaked out with 15% drop in international coal prices. Upgrade FY13E/FY14E EBIDTA by 9%. Upgrade to HOLD

- UTCEM's has delivered impressive operating performance driving significant stock outperformance. However believe rich valuation (PER-15X, EV/E 8.2, EV/T of USD129) leaves little room for further stock outperformance.

Source : Equity Bulls

Keywords