Views on Ultratech Cements 4QFY2016 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity research Analyst - Cements, Angel Broking) on Ultratech Cements 4QFY2016 Results:

"Ultratech Cements has delivered an impressive set of results for 4QFY16. Volume growth at 15% to 13.6 Mn Ton is ahead of our estimates. However, realisation has dropped higher than expected and hence revenue growth stood at 5% despite strong volume growth. EBITDA margins at 20% have surprised and are better than our expectations. Higher EBITDA per Ton at INR 945 and lower tax rate at 27% vs 33% YoY resulted in PAT growth of 11% at INR 681 cr. We believe the company has the potential to deliver 10% volume CAGR over FY16-18E.

Though cement prices started picking up from March, 2016 the, the real impact of the same will be visible in the coming quarters and we believe earnings could improve further in FY17. We continue to have a positive stand on the company's performance in the years to come, and have an ACCUMULATE rating on the stock."

Shares of ULTRATECH CEMENT LTD. was last trading in BSE at Rs.3160 as compared to the previous close of Rs. 3164.05. The total number of shares traded during the day was 11066 in over 1621 trades.

The stock hit an intraday high of Rs. 3194 and intraday low of 3151. The net turnover during the day was Rs. 35084628.

Source : Equity Bulls

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