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HDFC Securities Institutional Equities
Brokerage firm Nirmal Bang has maintained its Buy rating on UltraTech Cement Ltd. with an unchanged target price of Rs 13,700/share (17x FY28E consolidated Ebitda).
The brokerage believes that UltraTech Cement is well placed to sustain market-share gains, supported by an estimated 9% volume CAGR over FY26-28E. Its strong distribution across both trade and non-trade segments and steady expansions (from 197 million metric tonne in FY26 to over 240 mn MT by FY28 end/early FY29) should drive the estimated volume growth.
The brokerage also also expect its margin to firm up to Rs 1,337/MT in FY28E, from Rs 1,103/MT in FY26E driven by continued efficiency gains (rising green power, lower lead distance, falling clinker factor, etc) and expected cool off in energy cost H2 FY27 onward.
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Its RMC segment is also growing at a very strong pace (35% revenue CAGR in the past five years), thus remaining the leader in this segment.
UltraTech Cement is all set to launch its own wires and cables (W&C) in Q3 FY27. It remains one of Nirmal Bang's top picks in the cement sector
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