Brokerages continue to remain constructive on UltraTech Cement, citing strong volume-led execution, market share gains and improving operating leverage, even as near-term pricing remains soft.
Morgan Stanley maintained its 'overweight' rating on the stock with a target price of Rs 14,100, highlighting robust delivery led by volumes. The brokerage noted that while realisations were marginally weaker, largely due to pressure in non-trade segments, UltraTech's scale advantages continue to support earnings.
Morgan Stanley said market share gains, cost-saving levers and economies of scale remain firmly in play, reinforcing UltraTech's position as its preferred cement stock, underpinned by a strong earnings compounding story.
Jefferies also reiterated its positive stance, maintaining a 'buy' rating while raising its target price to Rs 14,750 from Rs 14,700, following what it described as a solid earnings beat.
The brokerage said the performance beat was driven by both volumes and unit Ebitda. Consolidated volumes grew 15% year-on-year on a like-for-like basis, supported by an improvement in industry demand, which accelerated to 9–10% year-on-year during the quarter, compared with 4–5% in the first half of FY26.
Jefferies highlighted that unit Ebitda improved sequentially, aided by strong operating leverage, despite weak pricing conditions during the quarter. Management commentary indicated that cement prices began improving in January, supported by sustained demand strength.
Looking ahead, Jefferies expects unit Ebitda to improve further on a quarter-on-quarter basis in the March quarter. The brokerage also noted that management has retained its capacity expansion target of 235 million tonnes per annum by FY28, providing long-term growth visibility.
Overall, brokerages see UltraTech Cement as well positioned to benefit from demand recovery, operating leverage and scale-driven efficiencies, keeping the stock firmly among their preferred picks in the cement space.
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