Macquarie Research maintains ‘outperformer’ rating on Ultratech
Macquarie Research has maintained an ‘outperformer’ rating on cement major Ultratech. The broking house has raised its target price of the stock by 8% to Rs 708, citing improved demand scenario as the major reason.
ULTRATECH CEMENT
CMP: Rs 590
TARGET PRICE: Rs 708
Macquarie Research has maintained an ���outperformer��� rating on cement major Ultratech. The broking house has raised its target price of the stock by 8% to Rs 708, citing improved demand scenario as the major reason. ���We expect Ultratech to now focus on improving its blending ratio and logistics lead cost savings to become a cost leader.
We believe it is attractively valued,��� said a Macquarie note to its clients. The outfit expects the company���s margins to improve further by around Rs 150 per tonne as cement prices in April were Rs 140 per tonne. Imported coal costs for Ultratech in this quarter stood around $115-120 per tonne against the current price of $80-85 per tonne. However, we expect lower clinker export prices will mute the increase a bit, it added.
CMP: Rs 590
TARGET PRICE: Rs 708
Macquarie Research has maintained an ���outperformer��� rating on cement major Ultratech. The broking house has raised its target price of the stock by 8% to Rs 708, citing improved demand scenario as the major reason. ���We expect Ultratech to now focus on improving its blending ratio and logistics lead cost savings to become a cost leader.
We believe it is attractively valued,��� said a Macquarie note to its clients. The outfit expects the company���s margins to improve further by around Rs 150 per tonne as cement prices in April were Rs 140 per tonne. Imported coal costs for Ultratech in this quarter stood around $115-120 per tonne against the current price of $80-85 per tonne. However, we expect lower clinker export prices will mute the increase a bit, it added.
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