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 value 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 positive factors of 1.6 per cent hitting a excessive of ₹11,609.70. The full market cap stood at ₹3,26,231.07 crore.
Nevertheless, 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 score at a goal value of ₹13,800 and estimated that UltraTech would proceed to achieve market share with its strong capability growth. 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 score at an unchanged goal value of ₹13,229, believes that completion of ongoing progress tasks, coupled with integration of India Cements and Kesoram Cement, augur properly for future quantity progress. Nevertheless, it added that acquisition may restrict margin outperformance. The brokerage cited sub-par demand, weak cement costs and a pointy enhance in gasoline value as key dangers to its name.
DAM Capital has upgraded the inventory to purchase at an elevated goal value 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 value 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. Nevertheless, as these property’ margins will stay considerably under UltraTech’s core margin, it is going to offset the quantity achieve influence on consolidated EBITDA.”
PL Capital has additionally retained accumulate name at an elevated goal value 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 score on the inventory, its high choose, at an elevated goal value 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 value 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 setting.
In the meantime, JP Morgan has maintained obese score at a goal value of ₹13,470.
