The UltraTech Cement share rose 1.8% in Tuesday’s trade after the company reported its first quarter results for FY27. The earnings came in line with brokerages’ estimates, prompting a raise in the price target and rating retention.
Nuvama on UltraTech Cement
Nuvama Institutional Equities raised the price target to Rs 15,209 from Rs 14,502, while maintaining its Buy rating on the cement sector giant. The new target price implies an upside of 27.77% from the current market price. This uptick in the price target came as the brokerage finds that the company posted robust performance with strong guidance.
UltraTech Cement is consistently gaining market share while exhibiting exemplary cost control despite a challenging operating environment. The trajectory of cement prices and fuel costs will determine stock performance going ahead.
The company’s domestic grey cement volume growth surged 13% YoY in Q1FY27. Blended EBITDA per tonne was Rs 1,214 in Q1FY27. Realisation inched up 3.7% QoQ during the quarter and has been steady so far in Q2FY27.
The company’s management is targeting double-digit volume growth in FY27 and expects cost to rise Rs 130–140 per tonne QoQ in Q2FY27.
Motilal Oswal on UltraTech Cement
Motilal Oswal Financial Services maintained its Buy rating on UltraTech Cement with a 12-month price target of Rs 13,800.
UltraTech Cement’s Q1 FY27 operating performance was broadly in line with the brokerage’s estimates. Demand momentum has been strong, driven by government-led infra projects, affordable housing, and urbanisation. While profitability is expected to be under pressure in Q2 FY27 due to elevated cost inflation, operational expenditure per tonne is likely to peak during
the quarter. Motilal Oswal expects the company to benefit from its large scale of operation, brand value, and cost control measures.
The brokerage estimates its consolidated volume CAGR at 10% and EBITDA per tonne of Rs 1,153 for FY27 and Rs 1,237 in FY28 as against Rs 1,103 in FY26.
“We estimate its net debt at Rs 18,450 crore in FY27 (to peak out) compared to Rs 14,690 crore in FY26. The net debt-to-EBITDA ratio is estimated to remain below 1x. We estimate its RoE and RoCE to increase to 14% and 12% by FY28 from 11% and 10% in FY26, backed by higher profitability and lower costs for expansions,” said the brokerage house.
JM Financial on UltraTech Cement
JM Financial raised price target on the cement giant to Rs 14,500 from Rs 13,850, while maintaining its ‘Buy’ rating on the stock. The new price target implied an upside of Rs 4.7%. “We reiterate UltraTech as our top pick in the sector,” said the brokerage house.
UltraTech Cement’s Q1FY27 consolidated EBITDA rose 14% YoY and fell 10% QoQ to Rs 5,000 crore, broadly in line with the brokerage’s estimates.
The company’s management reiterated its aim for continued market share gains with a double-digit YoY volume growth target for FY27. The company expects prices to be broadly stable during the monsoon, supported by elevated industry cost pressures.
The company’s management also guided its domestic grey cement capacity to reach 207 MT by FY27 and 237 MT by FY28 and aims for incremental capacity expansion beyond FY28.
JM Financial believes that UltraTech is poised for structural improvement in return ratios over the next three–four years owing to rising asset turnover, low cost of expansion, and improving profitability.
“Factoring in the Q1FY27 performance, we marginally increase FY27–28E EBITDA by 1–3% and introduce FY29,” said the brokerage.
UltraTech Cement share price performance
The share price of UltraTech Cement has risen 3.8% in the last five trading sessions. The stock has surged 6% in the past one month. However, it has declined 1.3% in the past six months. UltraTech Cement’s share price has erased 4% of investors’ wealth over the previous 12 months.
