External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

External broker reports(aggregated public sources)

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

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Equity Bottom-Up

<ul><li>UltraTech is the largest cement manufacturer in India with a domestic capacity of 114.5 MT</li><li>It has grown through the organic and inorganic routes and added around ~30 MT of capacity in the last three years.</li><li>We remain positive on the company and maintain BUY rating. Valued at Rs 9,300 i.e.19.0x FY23E EV/EBITDA</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

UltraTech is the largest cement manufacturer in India with a domestic capacity of 114.5 MTIt has grown through the organic and inorganic routes and added around ~30 MT of capacity in the last three years.We remain positive on the company and maintain BUY rating. Valued at Rs 9,300 i.e.19.0x FY23E EV/EBITDAContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

UltraTech Cement: Cost Pressure to Stay for a While; Outlook Remains Firm

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

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<p>UTCEM's 3QFY22 performance was impacted by cost inflation, primarily energy and other costs, leading to a 6.7pp YoY fall in EBITDA margin and 19% YoY fall in EBITDA/t. EBITDA fell 22% YoY, despite higher other operating income (up 2.3x YoY). Adjusted for tax write-backs, profit fell 26% YoY. The industry has seen peak of the fuel cost inflation and imported/domestic petcoke prices have declined 38%/33% from its peak in Nov-21. This should help cost moderate from 1QFY23.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

UTCEM's 3QFY22 performance was impacted by cost inflation, primarily energy and other costs, leading to a 6.7pp YoY fall in EBITDA margin and 19% YoY fall in EBITDA/t. EBITDA fell 22% YoY, despite higher other operating income (up 2.3x YoY). Adjusted for tax write-backs, profit fell 26% YoY. The industry has seen peak of the fuel cost inflation and imported/domestic petcoke prices have declined 38%/33% from its peak in Nov-21. This should help cost moderate from 1QFY23.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cost inflation behind it, robust outlook intact

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<p>Unitary EBITDA fell 20/17% YoY/QoQ to INR 1,046/MT. The company is hopeful that cost inflation has peaked out and, with demand picking up, all of this should bolster volume growth and lead to margin rebound Q4 onwards. UltraTech Cement : We maintain BUY on UltraTech (UTCEM) with an unchanged target price of INR 8,775/share (16x Dec'23E consolidated EBITDA). We continue to like the company for its strong growth and margin outlook and balance sheet management.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Unitary EBITDA fell 20/17% YoY/QoQ to INR 1,046/MT. The company is hopeful that cost inflation has peaked out and, with demand picking up, all of this should bolster volume growth and lead to margin rebound Q4 onwards. UltraTech Cement : We maintain BUY on UltraTech (UTCEM) with an unchanged target price of INR 8,775/share (16x Dec'23E consolidated EBITDA). We continue to like the company for its strong growth and margin outlook and balance sheet management.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<p>We expect UltraTech Cement (UTCEM) to continue to post industry leading growth and profitability over FY21-24E backed by low-cost brownfield expansions and increased cost efficiencies. Its diversified pan-India market mix, premium brand positioning, strong distribution network and large presence in non-trade segment allow it to weather current demand uncertainties much better than peers.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We expect UltraTech Cement (UTCEM) to continue to post industry leading growth and profitability over FY21-24E backed by low-cost brownfield expansions and increased cost efficiencies. Its diversified pan-India market mix, premium brand positioning, strong distribution network and large presence in non-trade segment allow it to weather current demand uncertainties much better than peers.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

External broker reports(aggregated public sources), Edelweiss Broking Limited

Edelweiss

Edelweiss Broking Limited

Edelweiss Broking Limited is an Indian Financial services company based in Mumbai, India. The company is a subsidiary of Edelweiss Group. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<h2>Business Overview</h2><p>Ultratech Cement Limited (UTCL), with pan-India presence, is the market leader in the domestic cement industry. With the acquisition of Binani Cement, JPA’s assets and the recently concluded Century Textiles deal, the company’s current domestic grey cement capacity has been enhanced to ~109mtpa. It is further set to rise to 113mtpa (22% of industry capacity) with commissioning of the proposed 4mtpa plant in UP. The company has 982MW thermal captive power plants that meet ~80% of its requirement. Also, the company operates in the white cement segment with ~1.5mtpa capacity. Grasim, the flagship company of the AV Birla Group, is a majority shareholder in UTCL with 60.3% ownership. Industry leader UltraTech Cement (UTCL) will be the beneficiary of – a) expected recovery in demand; b) rising clinker utilisations amidst tepid capacity additions; c) pan India presence that enables it to benefit from the price hikes across different regions; d) high operating leverage - a 1% rise in prices increases EBIT by 5%; and e) increasing focus on improving cost efficiency and reducing leverage.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Business OverviewUltratech Cement Limited (UTCL), with pan-India presence, is the market leader in the domestic cement industry. With the acquisition of Binani Cement, JPA’s assets and the recently concluded Century Textiles deal, the company’s current domestic grey cement capacity has been enhanced to ~109mtpa. It is further set to rise to 113mtpa (22% of industry capacity) with commissioning of the proposed 4mtpa plant in UP. The company has 982MW thermal captive power plants that meet ~80% of its requirement. Also, the company operates in the white cement segment with ~1.5mtpa capacity. Grasim, the flagship company of the AV Birla Group, is a majority shareholder in UTCL with 60.3% ownership. Industry leader UltraTech Cement (UTCL) will be the beneficiary of – a) expected recovery in demand; b) rising clinker utilisations amidst tepid capacity additions; c) pan India presence that enables it to benefit from the price hikes across different regions; d) high operating leverage - a 1% rise in prices increases EBIT by 5%; and e) increasing focus on improving cost efficiency and reducing leverage.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

India

Ultra Tech Cement Ltd. produces a wide range of cement products. This Company represents the cement operations of Larsen & Toubro which were spun-off into a separate entity in which Grasim Industries holds a majority interest.

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Ultratech Cement (UTCEM IN)

UltraTech Cement: Cost Pressure to Stay for a While; Outlook Remains Firm

It is now focusing on the fast growing market of eastern India, which accounts for 10.2 MT of its total 19.6 MT planned expansion over FY21-23E...

ICICI Securities Limited

Cost inflation behind it, robust outlook intact

UTCEM's 3QFY22 performance was impacted by cost inflation, primarily energy and other costs, leading to a 6.7pp YoY fall in EBITDA margin and...

Motilal Oswal

HSIE Results Daily: UltraTech Cement

Unitary EBITDA fell 20/17% YoY/QoQ to INR 1,046/MT. The company is hopeful that cost inflation has peaked out and, with demand picking up, all of...

HDFC Securities

Better placed vs peers; preferred pick

We expect UltraTech Cement (UTCEM) to continue to post industry leading growth and profitability over FY21-24E backed by low-cost brownfield...

ICICI Securities Limited

Pick of the Week - Ultratech Cement

Ultratech Cement Limited (UTCL), with pan-India presence, is the market leader in the domestic cement industry. With the acquisition of Binani...

Edelweiss

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UltraTech Cement: Cost Pressure to Stay for a While; Outlook Remains Firm

It is now focusing on the fast growing market of eastern India, which accounts for 10.2 MT of its total 19.6 MT planned expansion over FY21-23E...

ICICI Securities Limited

Cost inflation behind it, robust outlook intact

UTCEM&#x27;s 3QFY22 performance was impacted by cost inflation, primarily energy and other costs, leading to a 6.7pp YoY fall in EBITDA margin and...

Motilal Oswal

HSIE Results Daily: UltraTech Cement

Unitary EBITDA fell 20/17% YoY/QoQ to INR 1,046/MT. The company is hopeful that cost inflation has peaked out and, with demand picking up, all of...

HDFC Securities

Better placed vs peers; preferred pick

We expect UltraTech Cement (UTCEM) to continue to post industry leading growth and profitability over FY21-24E backed by low-cost brownfield...

ICICI Securities Limited

Pick of the Week - Ultratech Cement

Ultratech Cement Limited (UTCL), with pan-India presence, is the market leader in the domestic cement industry. With the acquisition of Binani...

Edelweiss

UTCEM's 3QFY22 performance was impacted by cost inflation, primarily energy and other costs, leading to a 6.7pp YoY fall in EBITDA margin and...