The IIFL Securities Report: Buy Ultratech Cement - June 06

On June 06, IIFL Securities recommended a buy call for Ultratech Cement, setting a target price of Rs 10750. This represents a potential upside of approximately 6% from the current market price of Rs 10144.65. The positive outlook is attributed to the company's strong financial performance, robust demand in the cement sector, and its focus on cost optimization. Ultratech Cement, one of India's largest cement companies, has consistently delivered strong financial results, and the brokerage firm expects this trend to continue in the future.

About Ultratech Cement:

Ultratech Cement Ltd., incorporated in 1999, is India's largest cement producer and a leading global cement company. It has a consolidated capacity of 129.55 million tonnes per annum (MTPA) of grey cement, 20.5 MTPA of white cement, and an annual capacity of 280 MW of captive power plants. Ultratech operates 24 integrated cement manufacturing plants, 20 grinding units, and seven bulk terminals. The company's products are sold under the brands Ultratech, Birla Samrat, Samrat, and UltraTech White Cement. Ultratech Cement is a part of the Aditya Birla Group, a global conglomerate with operations in various industries.

52 Week Price Trend:

Ultratech Cement's current market price (CMP) of Rs 10144.65 places it close to its 52-week high of Rs 10526, suggesting a recovery trend. The stock has witnessed a significant surge since its 52-week low of Rs 6991, reflecting investor confidence in the company's prospects. Ultratech Cement is a leading cement manufacturer in India with a strong market share. The company's robust financial performance, driven by increased demand in the construction sector, has contributed to its positive price action.

Stratzy's MOST Analysis:

ULTRACEMCO has been assigned a BBB rating by Stratzy's MOST framework, indicating a medium level of fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. The rating suggests that ULTRACEMCO has a sound management team, a strong growth outlook, and a consistent track record of safety. However, there may be some concerns regarding the company's financial stability or competitive position. Overall, the BBB rating indicates that ULTRACEMCO is a solid investment option with moderate risk.

Company's Fundamentals:

Ultratech Cement (NSE: ULTRACEMCO) is a leading cement manufacturer in India. Its stock is currently trading at a price-to-earnings (PE) ratio of 44.73, which indicates that investors are willing to pay 44.73 times the company's annual earnings for each share. The stock's price-to-book (PB) ratio, which measures the market value of the company's assets relative to its book value, is 5.11. This suggests that investors are paying a premium for Ultratech Cement's assets. The stock's dividend yield, which measures the annual dividend payment divided by the current stock price, is 0.38%. This indicates that investors can expect to receive a return of 0.38% from Ultratech Cement's dividends.

Fundamental and Technical information provided in this blog were last updated on 06 Jun, 2024

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