Morgan Stanley ‘overweight’ on Ultratech

Morgan Stanley has recommended an ‘Overweight’ rating on Ultratech Cement.

For F4Q12, Ultratech reported robust earnings at Rs 8,600 crore, ahead of Morgan Stanley estimates and consensus at Rs 760 crore and Rs 680 crore, respectively. The beat was led by lower costs (per tonne), while realisations were marginally lower than Morgan Stanley estimates.

“Ultratech Cement remains our top pick in sector, notwithstanding near-term risk from seasonal price correction (given monsoon) and the risk of Competition Commission of India’s ruling pertaining to cartelisation in the industry,” said a Morgan Stanley report.