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Ultratech Cement share falls after three sessions on Q4 earnings

Ultratech Cement stock touched an intraday low of Rs 6334.75 , down 2.31% against previous close of Rs 6,484 on BSE

Ultratech Cement share trades higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages. Ultratech Cement share trades higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages.

Ultratech Cement share fell over 2% in trade today after the cement maker reported a 45.2 per cent decline in consolidated net profit for the fourth quarter ended March 2021. The large cap stock touched an intraday low of Rs 6334.75 , down 2.31% against previous close of Rs 6,484 on BSE.

The share has fallen after 3 days of consecutive gain. It trades higher than 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages.

The share has gained 93% in one year and risen 21% since the beginning of this year.

Market cap of the firm fell to Rs 1.84 lakh crore on BSE.

Later, the stock closed 1.22% lower at Rs 6,405.

On NSE, the stock fell by 2.34 per cent to Rs 6,330.

The Aditya Birla Group firm reported a consolidated net profit of Rs 1,774.13 crore in Q4 on account of reversal of deferred tax liabilities.

It had posted a net profit of Rs 3,236.85 crore in the January-March quarter a year ago.

However, revenue from operations rose 32.72 per cent to Rs 14,405.61 crore against Rs 10,854.48 crore in the corresponding period of the last fiscal.

Motilal Oswal in a report said the firm remains their top large cap pick in the sector. "The company has grown its market share further due to high clinker availability in 4QFY21. We expect market share gains to continue, aided by the ongoing 20mtpa expansion program, which should drive 11% volume CAGR over FY21-24E.

While we expect industry volumes to decline by 25-30% in the near term due to COVID-related lockdowns, the same should be partly compensated by improved margins as prices have been strong. We value Ultratech Cement at 16x FY23E EV/EBITDA to arrive at a target price of Rs 8,050. Reiterate Buy," the brokerage added.

Meanwhile, Sensex closed 295 points higher at 49,502 and Nifty rose 119 points to 14,942.