Buy Ultratech Cement; target of Rs 9250: Emkay Global Financial

Emkay Global Financial is bullish on Ultratech Cement has recommended buy rating on the stock with a target price of Rs 9250 in its research report dated July 22, 2023.

Broker Research

July 25, 2023 / 11:07 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay Global Financial's research report on Ultratech Cement

UltraTech Cement’s consolidated EBITDA declined ~2% YoY/8% QoQ to Rs30.5bn in Q1FY24, coming in 8% below our estimates owing to higher than expected costs. Blended EBITDA/ton fell 18% YoY/3% QoQ to Rs1,018 (Emkay: Rs1,100). UltraTech is in the process of adding 4mt capacity in FY24 through debottlenecking and another 22.6mt capacity (under phase-II) by FY25/26 (vs current capacity of 131mt). Management expects cement prices to improve post the monsoons and input cost deflation to kick-in in coming quarters. We largely maintain our FY24-25 estimates.

Outlook

Given the company’s strong growth/capex plans, pan-India presence, focus on cost efficiencies and strong balance sheet, we raise our target EV/E to 16x (earlier 15x). We maintain BUY on the stock, with revised Jun-24E TP of Rs9,250/share, post the quarterly roll-over.

For all recommendations report, click here