Ultratech Cement initiated with "underweight"

Ultratech Cement initiated with "underweight"
Published: 05 October 2007

Analyst Satish Kumar of Lehman Brothers initiates coverage of Ultratech Cement with an "underweight" rating. The target price is set to INR878.

In a research note published this morning, the analyst mentions that the company’s profitability is expected to decline, with the Indian cement industry headed for a situation of overcapacity in FY09 and FY10. Ultratech Cement’s volume expansion and cost control initiatives appear to be too late, the analyst says.