Cement Sector - HDFC Bank

July 17, 2014

View: The management of the Ultratech Cement believes that the demand for cement

should recover to ~8% on improvement in the economic environment. With largest cement

manufacturing company in India, we expect Ultratech to be the immediate beneficiary of

the revival in the economy. At CMP of Rs.2492; the stock is trading at 27.1xFY15E and

20.9xFY16E. The stock has witnessed sharp run in the recent past, hence we continue to

maintain a Hold on the stock with a revised target price of Rs.2512 which is

12xFY16EV/EBITDA.

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