UltraTech Q2FY21 - Retain ADD with TP of Rs 5,104 - YES Securities

Volumes for Q2FY21 came in at 20.06 MT, a strong growth of 7% y/y - vs our est. of 17.2 MT. EBITDA at Rs 26.9 bn was a big beat as against our est. of ~Rs 20.1 bn and consensus est. of 21.54 bn. EBITDA witnessed a sturdy increase of 40.5% y/y. EBITDA/te witnessed a sharp improvement of 31% y/y - at Rs 1,343 vs our est. of Rs 1170. Higher NSR/te combined with lower freight costs and tight control on fixed costs has led to outperformance as against our expectations. Led by low base and capacity additions in Central and East, we factor in volume/EBITDA CAGR of 13.7%/8% over FY21E-FY23E for UTCEM. UTCEM is trading at EV/EBITDA of 12.7x and EV/te of ~$163 on FY23E. We assign an EV/EBITDA multiple of 14x on FY23E and arrive at revised TP of Rs 5,104/share with potential upside of 10% (previous TP of Rs 4,533). We continue to maintain our ADD rating on the stock.

Shares of ULTRATECH CEMENT LTD. was last trading in BSE at Rs.4629.6 as compared to the previous close of Rs. 4547.4. The total number of shares traded during the day was 50704 in over 8926 trades.

The stock hit an intraday high of Rs. 4656.9 and intraday low of 4439.5. The net turnover during the day was Rs. 231911711.

Source : Equity Bulls

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