Street View: India's Ultratech Cement's price hikes seen offsetting rising costs
BUZZ-Street View: India's Ultratech Cement's price hikes seen offsetting rising costs ** Shares of Ultratech Cement ULTC.NS rise 1.7% to 10,834 rupees, after closing 2.4% lower on Monday
** India's top cement maker missed Q2 profit view as soaring raw material costs offset strong volumes
PRICE HIKES TO OFFSET COSTS
** Nomura ("buy", PT: 13,700 rupees) says that "while higher fuel cost remains a concern, we view the price hikes as enough to offset the spot fuel cost"
** Systematix ("buy", PT: 15,000 rupees) says "although UltraTech has reduced petcoke to around 25% of its fuel mix, limited domestic coal availability and elevated energy costs remain key risks
** Management expects prices to rise even in H2 as sustained higher prices are likely to offset cost inflation - Systematix
** Emkay ("buy", PT: 13,200 rupees) says ULTC remains its top pick, given its purchasing power and stronger market share position in a volatile environment
** Jefferies ("buy", PT: 14,380 rupees) noted management's focus has shifted to pricing recovery and margin protection as costs remain elevated
(Reporting by Puyaan Singh in Bengaluru)
Recent news on Ultratech Cement
See all newsIndia's JSW Cement posts lower second-quarter profit as weak pricing, higher costs hurt margins
India's ACC posts 91% plunge in quarterly profit on higher fuel costs, weaker sales
Street View: India's Ultratech Cement's price hikes seen offsetting rising costs
India's UltraTech Cement misses profit view as higher costs weigh (updated)
India's UltraTech Cement falls after quarterly profit misses estimates