Bullish brokerages lauded UltraTech Cement’s Q3 efficiency because the earnings had been forward of consensus estimates. Gross sales quantity grew 11 per cent, income went as much as ₹17,194 crore and operational price rose to ₹15,605 crore for the quarter ended December 2024.
Shares of UltraTech Cement closed 1.06 per cent decrease at ₹11,300, erasing early features of 1.6 per cent hitting a excessive of ₹11,609.70. The whole market cap stood at ₹3,26,231.07 crore.
Nonetheless, the corporate reported a 17.2 per cent decline in consolidated internet revenue for the quarter ended December 2024 at ₹16.74 crore from ₹17.75 crore within the corresponding quarter of the earlier yr.
Motilal Oswal reiterated purchase ranking at a goal worth of ₹13,800 and estimated that UltraTech would proceed to realize market share with its sturdy capability enlargement. The brokerage noticed indicators of restoration in cement demand throughout all sectors, together with infrastructure, IHB, rural, and concrete demand, and added {that a} good monsoon season would drive rural demand within the coming months.
Elara Capital, which reiterated accumulate ranking at an unchanged goal worth of ₹13,229, believes that completion of ongoing progress initiatives, coupled with integration of India Cements and Kesoram Cement, augur properly for future quantity progress. Nonetheless, it added that acquisition may restrict margin outperformance. The brokerage cited sub-par demand, weak cement costs and a pointy improve in gasoline worth as key dangers to its name.
DAM Capital has upgraded the inventory to purchase at an elevated goal worth of ₹12,550, highlighting that the nation’s cement sector ought to witness a breather.
HDFC Securities analysts have maintained add name at a goal worth of ₹12,100, noting that UltraTech has delivered industry-leading 12 per cent quantity progress. “We estimate the consolidation of India Cements and Kesoram to drive 21/9 per cent y-o-y quantity progress in FY26/27E. Nonetheless, as these property’ margins will stay considerably beneath UltraTech’s core margin, it should offset the amount acquire impression on consolidated EBITDA.”
PL Capital has additionally retained accumulate name at an elevated goal worth of ₹12,350 from ₹12,145 earlier.
International brokerage Macquarie believes the corporate is finest positioned with well timed capability addition and diversified regional combine. The worldwide brokerage has maintained an outperform ranking on the inventory, its prime choose, at an elevated goal worth of ₹12,705. Equirus, Jefferies and Goldman Sachs have retained purchase scores on the goal costs of ₹ 13,490, ₹13,265, and ₹12,580, respectively.
Nuvama Institutional Equities acknowledged that UltraTech outperformed the {industry}. The brokerage maintained maintain name on the goal worth of ₹11,574 from ₹11,328. It has marginally revised up FY25, FY26 and FY27 EBITDA estimates by 1 per cent every contemplating higher demand progress and pricing surroundings.
In the meantime, JP Morgan has maintained chubby ranking at a goal worth of ₹13,470.
