Decoding UltraTech Cement puzzle: Strong profit, weak stock; Analysts bet on price hike, expansion – Market News
UltraTech Cement has delivered a strong financial performance in the March quarter, but its stock could not hold ground. On Tuesday, share price of UltraTech Cement fell nearly 2, even as the company reported a 10% year-on-year jump in net profit to Rs 2,482 crore and a 13% rise in revenue to Rs 23,063 crore.
While the numbers were good, the market had already priced in high expectations. Analysts say that muted operating margins and flat profitability per tonne (EBITDA/t) left little room for a surprise. Add to that the ongoing volatility in cement prices, and investors decided to book profits.
Let’s take a look at how brokerages like Motilal Oswal, JM Financial, and Nuvama are viewing the company
