EUR 120.00 For Business Accounts Only

MOSL: Morning India (23/July/21): 1. UltraTech Cement (Margin outlook continues to improve); 2. Hindustan Unilever; 3. Hindustan Zinc; 4. Bajaj Auto; 5. Havells India; 6. Mahindra CIE; 7. Ceat; 8. Bharti Airtel

MOrning India (23/July/21): 1. UltraTech Cement (Margin outlook continues to improve); 2. Hindustan Unilever; 3. Hindustan Zinc; 4. Bajaj Auto; 5. Havells India; 6. Mahindra CIE; 7. Ceat; 8. Bharti Airtel

 

Today’s top research idea

UltraTech Cememnt: Margin outlook continues to improve

• UltraTech Cement (UTCEM) continued to improve its costs and margins in 1QFY22; it reported the highest ever EBITDA/unit of INR1,536/t (+8% YoY) during the quarter. Coupled with volume growth of 47% YoY, this led to 59% YoY growth in EBITDA.
• Market share gains should continue, aided by the ongoing 20mtpa expansion program, which should drive a 13% volume CAGR over FY21-24E.
• We estimate a 15%/26% CAGR in consolidated EBITDA/PAT over FY21-23E, driven by a 13% volume CAGR, better realizations, lower operating costs, and lower interest costs.
• The valuation is reasonable at 13.7x FY23E EV/EBITDA - a 10% discount to its last five years' average. We value UTCEM at 16x FY23E EV/EBITDA to arrive at TP of INR8,770. Reiterate Buy.

Piping hot news

Consumer demand during Phase II of the lockdown improved by 200%: Report

Consumer demand has been up by more than 200 per cent in the second phase of lockdown (March-May 21), as compared to the lockdown last year (March to May 2020), according to a survey report by ZestMoney, the Buy Now, Pay Later platform. Customer applications for the BNPL credit limit on the platform itself went up by 5 times in the March-May 2021 period as more people took to planning their finances better. The BNPL platforms claim strong consumer behaviour around repayments, bounce rates signalled green shoots of recovery and a revival in consumer demand.