JP Morgan downgrades UltraTech Cement, India

JP Morgan downgrades UltraTech stock to "underweight" from "neutral" citing "stretched" valuations.

JP Morgan says Ultratech, India's leading cement producer, is trading at 10 times enterprise value/EBITDA and at 18 times P/E.

The U.S. investment bank also lowers its target price to INR1400 from INR1250.

Ultratech Cement on Friday reported a 14 per cent net profit for the April-June quarter.

JP Morgan says prefers to invest in the Indian cement sector via Ultratech parent Grasim Industries, adding the stock is currently trading at a discount of 43 per cent versus the average discount of 29 per cent since 2010.