UltraTech Cement Ltd. share price target

UltraTech Cement (UTCEM) has in the recent past strengthened its market presence in the southern region through organic and inorganic expansions. The company’s grey cement capacity mix in the south region has increased to ~27% of total capacity currently from ~16% in FY23.

We maintain BUY on UltraTech Cement (UTCEM) with TP of Rs14,700. KTAs from our analysis of UTCEM’s FY25 Annual Report.

UltraTech Cement announced on August 20 that its board has approved the sale of up to 20.1 Mn shares of India Cements (6.49% stake) through an offer for sale at a floor price of INR 368 per share, open from August 21–22.

We maintain a BUY rating on the stock with a target price of Rs 13,840/share, offering an upside potential of 13% from the CMP.

*over or under performance to benchmark index Consolidated revenue from operations rose 13.1% YoY to Rs. 21,275cr in Q1FY26, The domestic grey cement volume (including Kesoram Industries and ICEM) grew 8.7% YoY to 34.64 million tonnes....

UltraTech Cement’s revenue stood at INR 212.8 Mn, up 13.1% YoY (-7.8% QoQ), in-line with our expectations. Revenue Growth was driven by robust volume expansion of 9.7% YoY to 36.8 MT, aided by recent acquisitions and network integration.

Demand outlook in the North and Central regions remains relatively weak due to the monsoon, while pricing in the South and East continues to improve. higher pricing. Average grey cement realization improved 2.1% QoQ, led by price hikes mainly in the Southern and Eastern regions. Cons volumes grew 9.7% YoY to 36.8mt (Kesoram volumes included in the base) aided by 2.18mt...

Industry leader UltraTech Cement (UTCEM) has made a convincing start to FY26 with Q1FY26 EBITDA surging 46% YoY (in line with our estimate) riding benefits of improved price environment, M&A benefits driving industry superior volume growth and sustained efficiency enhancement measures.

We maintain our BUY recommendation on the stock.

UltraTech Cement (UTCEM)’s 1QFY26 earnings were in line with our estimates. EBITDA grew ~46% YoY to INR44.1b. EBITDA/t increased ~33% YoY to INR1,197 (estimated INR1,186).

UTCEM targets India Cements (ICEM) EBITDA/t of Rs500/800 for FY26/27E, while Kesoram EBITDA/t is targeted at Rs800/1000 for FY26/27E. and commercial segments. Average blended std realization declined 3% QoQ, impacted by the consolidation of Kesoram (KSI); however, the recent increase in cement prices in April is expected to benefit in Q1FY26. Higher volume...

UltraTech Cement’s (UTCEM) commentary on short-term challenges (mainly low demand in Q1FY26 and no comments on price hike sustainability) may unnerve a few investors. However, we continue to believe in our sector revival hypothesis (of reducing competitive intensity) and of UTCEM being its largest beneficiary.

Healthy 10% YoY volume growth aids flat top line despite 10% dent in realisations in a challenging Q4; capacity utilisation spikes at ~90%

We maintain our BUY recommendation on the stock.

UltraTech Cement (UltraTech) reported consolidated revenue of Rs. 23,063 crore (up 13%% y-o-y) for Q4FY2025. The consolidated operating profit of Rs. 4,618 crore (up 12% y-o-y). Indian Cement sold 2.64 MT in volume and reached breakeven in Q4FY25, with an EBITDA of Rs. 40/tonne.

UltraTech Cement (UTCEM)’s 4QFY25 performance was in line with our estimates. EBITDA increased ~12% YoY to INR46.2b, while EBITDA/t declined 4% YoY to INR1,126 (est. INR1,104).

The cement sector is increasingly consolidating, enabling companies to expand geographically, secure vital limestone reserves, and achieve economies of scale. Acquisitions are allowing market leaders to scale up quickly and strengthen their competitive positions.

We maintain our BUY rating on the stock.

Mgmt. expects ~20-25% ROCE, 5-7x asset turnover, and EBITDA margins akin to industry on full ramp up. Wires to contribute ~60% of W&C revenue. UTCEM has announced its foray into the wires and cables (W&C) segment to strengthen its construction value chain through UltraTech Building Solutions (UBS) stores. Mgmt. has evaluated almost all building material categories and clarified W&C is the only category UTCEM will be entering for targeting growth over cement; being only strategic extension to cement having strong...