Buy UltraTech Cement, target price Rs 8000: ICICI Securities

ICICI Securities has buy call on UltraTech Cement with a target price of Rs 8000. The current market price of UltraTech Cement Ltd. is Rs 6884.25.

UltraTech Cement Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 198279.12 Crore) operating in Cement sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 12522.03 Crore, up 19.38 % from last quarter Total Income of Rs 10489.10 Crore and up 19.01 % from last year same quarter Total Income of Rs 10521.95 Crore. Company reported net profit after tax of Rs 1584.60 Crore in latest quarter.


Investment Rationale
The brokerage raises FY22E-FY23E EBITDA by 2-3%, which takes it 12-13% ahead of consensus. It believes UTCEM may rerate (valuation discount vs SRCM may narrow to 10-12% vs historical average of 20-25%) as it continues to gain market share with improved profitability / RoCEs.

Promoter/FII Holdings
Promoters held 60 per cent stake in the company as of Dec 30, 2020, while FIIs held 16.8 per cent, DIIs 14.1 per cent and public and others 9.1 per cent.