UltraTech Cement’s Q3 performance received praise from bullish brokerages as earnings exceeded consensus estimates. Sales volume increased by 11%, revenue reached ₹17,194 crore, and operational costs rose to ₹15,605 crore for the quarter ending December 2024.
Despite the positive performance, UltraTech Cement’s shares closed 1.06% lower at ₹11,300 after erasing early gains of 1.6%. The total market cap stood at ₹3,26,231.07 crore. The company reported a 17.2% decline in consolidated net profit for the quarter, dropping to ₹16.74 crore from ₹17.75 crore in the same period of the previous year.
Motilal Oswal reiterated a buy rating with a target price of ₹13,800, projecting that UltraTech would continue gaining market share due to its strong capacity expansion. The brokerage noted signs of recovery in cement demand across various sectors and anticipated a boost in rural demand with a good monsoon season ahead.
Elara Capital maintained an accumulate rating with an unchanged target price of ₹13,229, highlighting the potential for volume growth from ongoing projects and the integration of India Cements and Kesoram Cement. However, the brokerage warned that the acquisition could limit margin outperformance and cited sub-par demand, weak cement prices, and a sharp increase in fuel prices as key risks.
DAM Capital upgraded the stock to a buy with an increased target price of ₹12,550, emphasizing that the cement sector in India is poised for improvement. HDFC Securities analysts retained an add call with a target price of ₹12,100, noting UltraTech’s leading 12% volume growth and the expected impact of the consolidation of India Cements and Kesoram on future performance.
PL Capital also maintained an accumulate call with an increased target price of ₹12,350. Global brokerage Macquarie reiterated an outperform rating on the stock with a target price of ₹12,705, citing UltraTech’s timely capacity additions and diversified regional mix as key strengths. Other brokerages such as Equirus, Jefferies, and Goldman Sachs also reiterated buy ratings with target prices ranging from ₹12,580 to ₹13,490.
Nuvama Institutional Equities recognized UltraTech’s outperformance in the industry and maintained a hold call with a target price of ₹11,574. The brokerage slightly revised upward its EBITDA estimates for FY25, FY26, and FY27, considering improved demand growth and pricing environment.
Lastly, JP Morgan maintained an overweight rating with a target price of ₹13,470 for UltraTech Cement. The overall sentiment from brokerages remains positive, with expectations of continued growth and market dominance for the company.
