Goldman Sachs has reiterated its “buy” rating on UltraTech Cement, setting a target price of ₹12,460. This indicates an upside potential of 9% from the current market price of ₹11,419.10.
The brokerage highlighted the valuation of UltraTech’s Star Cement stake, estimating an enterprise value (EV) of $145.6 per tonne for FY24 capacity and $115.5 per tonne for FY26 capacity. Goldman Sachs emphasized that UltraTech Cement is well-positioned to benefit from an expected demand recovery in the cement sector.
The company is projected to achieve a volume growth of 10-11% compound annual growth rate (CAGR) over FY23-FY26, supported by a strong demand environment and strategic initiatives. Additionally, UltraTech Cement has multiple levers to reduce structural costs, further solidifying its leadership position in the market.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
