Sharekhan Places " Buy" Call On UltraTech Cement, Sets Target At Rs 8500
Sharekhan has placed a " buy" call on the stock of Ultratech Cement with a price target of Rs 8500 on the stock.
Power and fuel costs easing, says Sharekhan
UltraTech is expected to benefit from the expected decline in power and fuel costs partially during Q 3 FY 2023 and fully during Q 4 FY 2023," the brokerage has said
Cement grinding units commissioned
In December 2022, the company commissioned 5 .5 mtpa grinding units ( 1 .8 mtpa greenfield at Dhule, Maharashtra, 1 .8 mtpa brownfield at Dhar, M.P.
Healthy Cement demand
According to Sharekhan, UltraTech is expected to benefit from healthy cement demand over the long term, driven by its aggressive capacity expansion plans.
"Demand is expected to be strong from segments such as infrastructure, rural housing, and urban housing.
Further, the recent easing in pet coke/ coal prices and flat diesel prices provides a key tailwind to improve upon operating margins from Q 3 FY 2023, although the full benefit of easing power and fuel costs is likely to reflect in Q 4 FY 2023 earnings.
By Sunil Fernandes Goodreturns source: Dailyhunt