US investment bank JP Morgan feels that the valuation of cement major UltraTech is stretched and consequently downgraded the stock to "underweight" from "neutral".The bank said it prefers to invest in the Indian cement sector via Ultratech’s parent Grasim Industries. The stock is currently trading at a discount of 43 per cent versus the average discount of 29 per cent since 2010.JP Morgan says Ultratech is trading at 10 times enterprise value/EBITDA and at 18 times P/E. The US investment bank also lowered its target price to Rs 1,400 from Rs 1,250. Ultratech Cement reported a 14 per cent net profit for the April-June quarter.