UltraTech Cement Q4 Results Review - Profitability To Improve; Expansion To Support Growth: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.UltraTech Cement Ltd.’s revenue/volume/realization came in-line, however Ebitda, Ebitda/tonne, adjusted profit after tax were above our estimates. Revenue grew +9.4% YoY to Rs 204.2 billion (+22.0% QoQ) led by volume growth of 10.8% YoY at 35.1 million tonne (+28.4% QoQ), partially offset by -1.3% YoY in in realisation/tonne to Rs 5,821 (-5% QoQ). Ebitda/adjusted profit after tax up by 11.7%/39.9% YoY to Rs 41.1 billion/Rs 23.3 billion led by better operating performance. UltraTech Cement expects better volume growth versus industry and targets to reach 199.6 mtpa capacity by FY27E. We expect revenue/Ebitda/APAT compound annual growth rate of 11.3%/23.3%/29.2% over FY24-26E led by 10.2%/ 12.0% volume growth and -0.5%/0.8% realisation growth in FY25E/FY26E..We maintain our Ebitda estimates for FY25E, however increase by 6.4% for FY26E factoring lower cost. We expect further improvement in Ebitda/tonne from Rs 1,089 in FY24 to Rs 1,245/Rs 1,342 in FY25E/FY26E. Accordingly, we upgrade our rating to ‘Buy’ from Accumulate with revised target price of Rs 11,485 based on 16.5 times (versus earlier 16 times) consolidated FY26E enterprise value/Ebitda..Click on the attachment to read the full report:.UltraTech Cement Q4 Results: Profit Rises 35%, Beats Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

UltraTech Cement Q4 Results Review - Profitability To Improve; Expansion To Support Growth: Dolat Capital

Strong operating cash flow to support expansion

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