What should investors do with UltraTech Cement post Q3 results; buy, sell or hold?

What should investors do with UltraTech Cement post Q3 results; buy, sell or hold?

UltraTech Cement share price fell 2 percent amid profit booking in the early trade on January 18, a day after company reported its December quarter earnings.

At 9:43 am, the scrip traded at Rs 7680.00 a piece on the BSE, down 2.39 percent, while the benchmark Sensex retreated 0.17 percent to 61,202.56.

Exceeding expectations, UltraTech Cement on January 17 reported a consolidated profit after tax (PAT) of Rs 1,708 crore for the quarter ended December 2021, up 7.8 percent against Rs 1,584 crore in the year-ago period. PAT during the previous quarter stood at Rs 1,314 crore.

The company’s consolidated net sales in the December quarter stood at Rs 12,710 crore, up 5 percent from Rs 12,144 crore in the year-ago period.

Consolidated revenue (including operating income) met expectations and was 6 percent higher at Rs 12,985 crore from Rs 12,254 crore in the December 2020 quarter and Rs 12,017 crore in the previous three-month period.

Operating income for the quarter was Rs 275 crore, up by 133 percent.

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Here is what brokerages have to say about the stock and the company:

Credit Suisse

Research firm has kept outperform rating on the stock on the back of strong underlying sector dynamics