Dalal Street

Citigroup in a recommendation released minutes ago have downgraded the stock of Ultratech Cement and recommend a SELL after reviewing Q2 results.

UltraTech (ULTC) reported net sales of Rs11.7bn (in line) in 2QFY08, driven by 12% higher domestic realizations. PAT (Rs1.86bn) was 11% below our forecasts. A continuing focus on the domestic market helped ULTC’s domestic volumes grow 12.5% yoy to 3.15m tonnes. Exports fell 13% yoy to 0.2m tonnes. Costs were higher as materials, labor and other expenses were all higher than forecasts. Material and labor costs are expected to remain high, the former due to growth in the RMC business.

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Indiainfoline Equity Research recommends a BUY in Great Offhsore Ltd with a price Target of Rs 1,029. Key points for the recommendation are as follows,

Great Offshore Ltd (GOL) reported 19.9% yoy growth in net sales to Rs1,523mn in Q2 FY08 as against Rs1,271mn in Q2 FY07. The jump was primarily on account of higher number of vessels operational. Other income jumped from Rs9mn in Q2 FY07 to Rs173mn in Q2 FY08 on account of implementation of AS-11 with effect from April 1, 2007. (more…)