Views on UltraTech Cement Ltd 1QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Cement, Angel Broking) on UltraTech Cement Ltd 1QFY2017 Results:

"Ultratech cement reported good set of results for the quarter. Though volumes grew by 6% YoY, realisations remained under pressure, which was on expected lines. Higher operating leverage and lower fixed cost resulted in 340 bps expansions in margins. Other income was up 50% which resulted in better than expected Pat at INR 763 cr up by 27%.

The volume growth after picking up in Q4FY16 has gained seems to be cooling off while realisations are still not in an uptrend. Though we like Ultraterch cement from a long term perspective, the recent run up in the stock leaves limited upside, from this point of view. We have a NEUTRAL view on the stock, but feel any decline in the stock should be taken as a buying opportunity."

Shares of ULTRATECH CEMENT LTD. was last trading in BSE at Rs.3705.75 as compared to the previous close of Rs. 3684.35. The total number of shares traded during the day was 15611 in over 1614 trades.

The stock hit an intraday high of Rs. 3737 and intraday low of 3656.75. The net turnover during the day was Rs. 57976501.

Source : Equity Bulls

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