ICICI Securities puts 'hold' on UltraTech
Cement<http://latestequityresearchreports.blogspot.com/2009/03/icici-securities-puts-hold-on-ultratech.html>
http://latestequityresearchreports.blogspot.com/2009/03/icici-securities-puts-hold-on-ultratech.html

 CMP: Rs 463.50
Target price: Rs 509
ICICI Securities (I-Sec) has downgraded its rating on UltraTech Cement to
‘hold’ from buy, saying
the*stock*<http://www.blogger.com/post-create.g?blogID=7950274338194775518#>was
fairly valued at current price, given the weak fundamentals of the
cement sector in general. The brokerage has lowered the FY09 earnings
estimate for the company by 10.2%, to factor in the delay in its 4.9-million
tonne expansion at Tadipatri, Andhra Pradesh, and the significant increase
in the cost of imported coal. I-Sec expects the company’s earnings per share
for this *financial
year*<http://www.blogger.com/post-create.g?blogID=7950274338194775518#>at
Rs 77.7. “However, higher-than-expected realisations, primarily aided
by
strong prices in the South, are expected to partly offset fuel-cost
pressure. In FY10, UTCL will benefit from the steep correction in imported
coal prices and the reduction in CENVAT from 12% to 8% in December ‘08 ,” an
I-Sec note to clients said.
Source: ET

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