Axis Securities Places Buy On Aditya Birla Group Stock, Scrip Trading 1.63% Down 52-Week High

Axis Securities Places Buy On UltraTech Cement Ltd., an Aditya Birla Group company, for a target price of Rs 9350 apiece. Given the target price, the stock is likely to give a decent return of 13% if purchased at the current market price. The stock of UltraTech in the past 1 week has performed well, surged 2.80%, giving a positive return.

UltraTech Cement is a midcap company engaged in the manufacturing and sale of Cement and Cement related products primarily in India. It has a market capitalisation of Rs 2,39,403.26 crore.

Lucrative Play on Positive Demand Outlook

Axis Securities said, "We initiate coverage on UltraTech Ltd. with a BUY recommendation and a Target Price of Rs 9,350/share, which implies an upside of 13% from the current levels. UltraTech Cement is the cement flagship company of the Aditya Birla Group and is the largest manufacturer of grey cement, ready mix concrete (RMC), and white cement in India. Excluding China, it is also the third-largest cement producer in the world and commands a robust market share of 22% (in terms of industry capacity) in the Indian cement industry. Currently, it is in the process of expanding its existing capacity in India from 130 mtpa to 155 mtpa which will get operational in phases over FY24-FY26. The company reported robust Q4FY23 results on account of higher volumes and stringent control over operating costs."

It added, "With ongoing capacity expansion, superior monitoring of cost drivers, and a strong demand environment, UTCL is expected to report Revenue/EBITDA/APAT CAGR of 9%//24%/32% respectively over FY23-FY25. The said growth will be driven by the volume growth of 10% CAGR and realization improvement of 1% CAGR over FY23-FY25E. In light of the strong growth potential for cement consumption moving forward, we value UTCL at 16x FY25E EV/EBITDA to arrive at the TP of Rs9,350/share."

Stock Movement

The stock's current market price on BSE is Rs 8292.85 apiece, up 0.33% from its previous close of Rs 8265.65 apiece. It hit the 52-week high on Jun 16, 2023, at Rs 8429 apiece, and 52-week low on Jul 01, 2022, at Rs 5,486 apiece, respectively.

The stock jumped 4.98% in 1 month, and 9.55% in 3 months, respectively. It gave 48.09% positive return in the past 1 year, and 22.37% in the past 2 years, respectively. It gave 112.92% positive return in the past 3 years and 118.12% positive return in the past 5 years.

Disclaimer

The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.