Buy UltraTech Cement; target of Rs 10,110 HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on UltraTech Cement

We continue to like UTCEM for its robust growth and margin outlook and balance sheet management. It delivered industry-leading 16% YoY volume growth YoY. NSR rose 1% QoQ. Opex rose 3% QoQ on op-lev loss and higher employee/maintenance costs. Unit EBITDA, thus, declined by INR 62 per MT QoQ to INR 956 per MT. Cool-off in fuel and freight costs cushioned the margin decline QoQ. The company noted that Q3 realisation has gone up 5% QoQ and expects further fuel cost reduction in Q3. It is also bolstering its green power capability, reducing its clinker factor. Its phase-2 expansion of ~24.4mn MT is on track for commissioning during FY25/26E.

Outlook

We maintain BUY on UltraTech (UTCEM) with an unchanged target price of INR 10,110 (16.5x Sep-25E consolidated EBITDA).

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UltraTech Cement - 20 - 10-2023 - hdfc