Shares of UltraTech Cement rose percent on July 3 as the company’s decent sales volume growth enthused investors. At 9:19 am, shares of the company were trading at Rs 8484.2, up 2.3 percent on the BSE.
The consolidated sales of UltraTech Cement rose 20 percent year-on-year (YoY) to 29.96 million tonne (MT) in the quarter ended June 2023. The company produced 25.04 MT of cement in the April-June quarter a year ago, it said in an exchange filing on July 01. This is reflective of a strong demand trend.
Though, the consolidated sales volume declined 5 percent sequentially. The Aditya Birla Group company said total sales volume in India also rose 20 percent YoY but was down 5 percent QoQ to 29.01 MT in Q1 of FY24.
Catch up on all LIVE stock market updates here
UltraTech Cement’s capacity utilisation now stood at around 90 percent for the quarter.
While demand has been strong, cement prices have largely been rangebound, highlighted Citi that has a ‘buy’ call on the cement maker’s stock with a a target price of Rs 9,050. Better cost structures could swing near-term profitability dynamics, the foreign brokerage firm pointed out.
Even Axis Securities has initiated coverage on UltraTech Cement with a ‘buy’ recommendation and a target price of Rs 9,350.
UltraTech Cement is the largest manufacturer of grey cement, ready mix concrete, and white cement in India. Excluding China, it is also the third-largest cement producer in the world and commands a robust market share of 22 percent (in terms of industry capacity) in the Indian cement industry.
The domestic brokerage firm said capacity expansion and a positive demand environment will drive growth for the cement manufacturer, while easing input costs along with cost optimisation measures could improve margins, it added.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
