Ultratech Cement
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
UltraTech Cement's management maintains a positive outlook, driven by aggressive capacity expansion and a focus on operational efficiency. The company aims to increase its capacity to 242.5 MTPA by FY28, which is expected to support double-digit volume growth in FY27. Despite facing near-term cost pressures from fuel volatility and competitive pricing dynamics, management's disciplined capital allocation and strong cash flow generation position UltraTech favorably for sustained earnings growth. Vista's financial outlook reflects a stable margin environment, with revenue growth moderating but still supported by robust demand from infrastructure projects. The company's strong balance sheet, with a net debt-to-EBITDA ratio below 1x, further enhances its investment appeal. Industry conditions, characterized by expanding demand and competitive pricing pressures, underscore the importance of UltraTech's strategic initiatives. Over the next 12-24 months, key opportunities include the successful integration of recent acquisitions and the launch of new product lines, while watchpoints include potential cost inflation and regional demand fluctuations. Overall, UltraTech Cement is well-positioned to navigate challenges and capitalize on growth opportunities in the cement sector
Why We Like This Stock
- Aggressive capacity expansion to 242.5 MTPA by FY28 supports long-term revenue growth
- Strong cash flow generation and disciplined capital allocation enhance financial stability
- Successful integration of recent acquisitions and new product launches present growth opportunities
Things To Watch Out For
- Near-term cost pressures from fuel volatility may impact margins
- Competitive pricing dynamics could challenge profitability
- Regional demand fluctuations may affect overall performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 70,908 | 75,955 | 88,512 | 92,882 | 105,087 |
| Profit Before Tax (Cr.) | 9,405 | 7,585 | 10,804 | 12,510 | 14,470 |
| PBT Margin | 13.3% | 10.0% | 1220.7% | 13.5% | 13.8% |
| Net Profit (Cr.) | 7,192 | 6,746 | 8,521 | 9,869 | 11,416 |
| Earnings Per Share | 244.1 | 228.9 | 289.2 | 334.9 | 387.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 14,000 | 28-Apr-2026 |
| BPWealth | ▲ Buy | 14,000 | 28-Apr-2026 |
| CLSA | ▲ Outperform | 14,000 | 21-Jul-2026 |
| Choice Equity | ▲ Buy | 15,210 | 27-Jan-2026 |
| Citigroup | ▲ Buy | 14,750 | 21-Jul-2026 |
| DAM Capital | ▲ Buy | 14,150 | 21-Jul-2026 |
| Deven Choksey | ▲ Buy | 13,828 | 29-Apr-2026 |
| Elara Capital | ► Accumulate | 13,492 | 21-Jul-2026 |
| Emkay Global | ▲ Buy | 13,000 | 21-Jul-2026 |
| Goldman Sachs | ▲ Buy | 13,160 | 25-Jun-2026 |
| HDFC Securities | ▲ Buy | 13,700 | 21-Jul-2026 |
| HSBC | ▲ Buy | 12,200 | 30-Apr-2026 |
| ICICI Securities | ► Hold | 11,900 | 21-Jul-2026 |
| JPMorgan | ▲ Overweight | 13,300 | 21-Jul-2026 |
| Jeffries | ▲ Buy | 14,065 | 21-Jul-2026 |
| Kotak Securities | ▼ Sell | 8,900 | 21-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 14,700 | 21-Jul-2026 |
| Motilal Oswal | ▲ Buy | 13,800 | 12-Aug-2026 |
| Nomura | ▲ Buy | 13,200 | 01-Jun-2026 |
| Nuvama | ▲ Buy | 15,209 | 21-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 13,832 | 21-Jul-2026 |
Company Overview
Show Company Profile
UltraTech Cement Limited, together with its subsidiaries, engages in the manufacture and sale of clinker, cement, ready mix concrete, and related products in India, the United Arab Emirates, Bahrain, and Sri Lanka. The company offers ordinary Portland, Portland pozzolana, composite, Weather Plus, and Portland slag; white cement, wall care putty, and value-added products; ready-mix concrete; dry mix mortars, such as tile and marble binders, plasters and mortars, industrial and precision grouts, repair and rehabilitation, and flooring screed; and waterproofing products, including liquid and cement waterproofing products. It also provides masonry products; and TMT steel bars, paints, waterproofing solutions and treatments, switchboards and fittings, plywood, shuttering ply, power and hand tools, PVC pipes, sanitary ware, roofing sheets, and water storage tanks, as well as flooring materials, such as marble, granite, and semi-precious stones through its retail stores under UltraTech Home Expert Store brand name. In addition, the company operates mobile concrete labs that offers on-ground technical assessment of construction materials; and provides Vaastu, pest control, and water testing services, as well as home loans. It offers its products under UltraTech Décor, DuraFacad, Pervious, MaxSheen, AquaSeal, ThermoCon+, FreeFlow+, FireSafe, DuraPlus, CorroProtect, Litecon, iFloors, Rapid, and ZIP brands. The company was incorporated in 2000 and is based in Mumbai, India. UltraTech Cement Limited operates as a subsidiary of Grasim Industries Limited.