UltraTech Cement Ltd.'s shares recovered on Monday, after a 3.06% decline on Friday. This rebound comes after a period of steady decline, which began on Feb. 27, when the company announced its foray into the cables and wires business.
The stock had dropped 6.38% on the day of the announcement and further declined 4.71% on Feb. 28, as other players in the wires and cables sector also posted losses.
Despite venturing into the new business segment of cables and wires, UltraTech Cement remains committed to its core business of grey cement, Motilal Oswal said.
The company views the C&W segment as a strategic fit, given its close adjacency to the existing construction value chain, the brokerage said. UltraTech aims to expand its consumer reach through this diversification, while continuing to strengthen its leadership position in the cement industry, through both organic and inorganic expansions beyond FY27, it said.
The cement maker is optimistic about its ability to penetrate the cables and wires market, citing infrastructure-driven demand and its existing presence in numerous projects as key growth opportunities. The company plans to commission its C&W plant by December 2026, reinforcing its commitment to this new venture, the brokerage noted. Motilal Oswal reiterated 'buy' rating on the stock.
UltraTech Cement Share Price
The scrip rose as much as 4.87% to Rs 10,621.80 apiece, before paring gains to trade 2.42% higher at Rs 10,374 apiece, as of 09:56 a.m. This compares to a 0.23% decline in the NSE Nifty 50.
It has risen 3.96% in the last 12 months. The relative strength index was at 34.
Out of 42 analysts tracking the company, 36 maintain a 'buy' rating, three recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 19.7%.
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