Ultratech Cement Ltd. |Company Update | Ultratech Ltd achieves our price target of Rs 3,029/- | continue to maintain our HOLD rating with a same target of Rs 3,029/- :: IndiaNivesh, report

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Ultratech Ltd achieves our price target of Rs 3,029-; continue
to maintain our HOLD rating with a same target of Rs 3,029/-
Ultratech’s target price of Rs 3029 has been achieved on Jan 15,2015 and it has
given a return of ~11% since our last reco, dated 5 Jan 2015 . Our reco was based
on Ultratech’s recent JP cement Plant acquisition. As per our view, this acquisition
would create significant synergies for the company. Post-acquisition, cement
capacity would increase from ~60 mtpa to ~ 65 mtpa and with projects underway;
the capacity would further go up to ~71 MTPA by 2016E. On the back of recent
developments mentioned above, Ultratech top line is likely to grow at a CAGR of
~8% from FY 14-FY 17E.
The Q3FY15 result is likely to be announced on 23 Jan,2015 , post result, we will
review and may revise our target price and rating as well. At CMP of INR 3,080 it is
currently trading at FY 16E /FY 17E EV/EBITDA (x) of 16.91 and 14.7 respectively.
We continue to maintain HOLD rating with a same target price of Rs 3,029 (implied
EV/EBITDA of 14.5 x FY 17E EBITDA).

LINK
http://www.indianivesh.in/Admin/Upload/635574288661385000_Ultratech_Co%20Update_16012015.pdf