Buy This Cement Stock For Strong Returns Ahead, 38 Brokerages Are Betting Big On It
Nomura has retained its 'buy' call on UltraTech Cement with a target of Rs 13,900, raising EBITDA estimates by 11% for FY26 and 5% for FY27, citing strong sector position
UltraTech Cement has received a strong vote of confidence from brokerage firms after its June quarter results. Backed by the Aditya Birla Group, the company saw several analysts revise their target prices upward. Of the 46 analysts tracking the stock, 38 have recommended a 'buy', signalling bullish sentiment around its future prospects.
On Tuesday, July 22, UltraTech Cement's stock opened higher but experienced a decline during intraday trading. At the time of writing, it was trading at Rs 12,407, down 1.35 percent on the NSE. The previous day, the stock had reached a 52-week high of Rs 12,714 during day trading.
Over the past month, UltraTech's stock has delivered an eight percent return to investors. In the last six months, it has risen by approximately 16 percent, and in 2025, the stock price has increased by 8.33 percent, yielding a 7.68 percent return over the past year. The company's market capitalization has now reached Rs 3.65 lakh crore.
What's The Target Price For UltraTech Shares?
Out of 46 analysts tracking UltraTech Cement, 38 have issued a 'Buy' rating, while 4 each have recommended 'Hold' and 'Sell', reflecting strong bullish sentiment among brokerages.
Global brokerage firm Nomura has maintained its 'buy' rating on UltraTech with a target price of Rs 13,900, citing the company's strong position in the cement sector. Nomura has raised its EBITDA estimates by 11 percent for FY 2026 and by 5 percent for FY27.
Jefferies also continues to favour UltraTech as its top pick, increasing its target price from Rs 14,000 to Rs 14,700, and recommending a buy. DM Capital has given a 'buy' rating with a target price of Rs 13,800. Meanwhile, Nuvama has retained its 'hold' rating but raised the target price from Rs 11,859 to Rs 13,628.
How Did UltraTech Cement Perform This Quarter?
UltraTech Cement's quarterly results for April-June 2025 showed a net consolidated profit of Rs 2,220.91 crore, a 48.7 percent increase from Rs 1,493.45 crore a year ago. The company's EBITDA grew by 44 percent year-on-year to Rs 4,591 crore for the quarter, with an operating margin of 21 percent, up from 16 percent in the same quarter of the previous year.
Consolidated revenue from operations increased by 13 percent year-on-year to Rs 21,275.45 crore. However, net consolidated profit for the year fell to Rs 6,039.64 crore from Rs 7,003.96 crore the previous year.
UltraTech's Business Outlook
Despite a slight slowdown in demand during the June quarter, UltraTech's management remains optimistic. The Aditya Birla Group's cement company has set a target of 10 percent volume growth by FY26.
The company notes that the South Indian market is now growing strongly and is expected to soon be on par with North India.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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July 22, 2025, 18:19 IST
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