UltraTech Cement gets green nod for expansion of Maharashtra plant - Angel Broking

Aditya Birla Group flagship UltraTech Cement has got Environment Ministry's clearance to expand capacity at its Awarpur plant in Maharasthra, which would entail an investment of Rs. 248cr. The company has proposed to raise production of clinker, a raw material for cement manufacture, to 4.5 million tonnes per annum (MTPA) from the existing 3.30 MTPA, and increase cement output to 6 MTPA from 4.48 MTPA. The additional power required for the proposed expansion will be 5.1 MW.

We expect this capacity to be added in FY2017 which will take its total capacity in India to 73 MTPA. This expansion will be in line with company's long term goal to increase capacity to 100 MTPA by FY2020.

We maintain our positive view on the stock and currently have an Accumulate rating with a target price of Rs. 3,282.

Shares of ULTRATECH CEMENT LTD. was last trading in BSE at Rs.2925 as compared to the previous close of Rs. 2922.65. The total number of shares traded during the day was 14274 in over 1783 trades.

The stock hit an intraday high of Rs. 2970.9 and intraday low of 2919.9. The net turnover during the day was Rs. 42059790.

Source : Equity Bulls

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