'Buy' UltraTech Cement Shares Maintains Motilal Oswal, Sees Upto 21% Upside — Check Target Price

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Motilal Oswal Report

UltraTech Cement Ltd. (+10% year-to-date) has outperformed the broader indices (Nifty Index +5% YTD) on account of profitability improvement, resilient pricing despite monsoon season, and positive sentiment in the sector owing to GST rate cuts and increased government spending.

Our current earnings estimates factor in the resilient pricing trend as indicated by management in the Q1 FY26 earnings call. We estimate the industry to pass on GST rate cut benefits to end-consumers in the near term and hence, no material changes in our revenue estimates.

However, the pricing trend needs to be monitored, followed by a pick-up in demand and fuel cost trends.

The stock is currently trading at 18.0x/15.0x FY27E/FY28E EV/Ebitda (vs its 10- year average EV/Ebitda of 17x). UltraTech Cement’s improved earnings, return ratios, and low-cost expansions warrant a higher valuation multiple.

We value the stock at 20x Sep’27E EV/Ebitda to arrive at our target price of Rs 15,200. Reiterate our Buy rating

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