Citi has maintained its ‘Buy’ rating on UltraTech Cement while raising the target price to ₹13,100 from ₹12,500, reflecting a potential upside of 15% from its current market price of ₹11,406.95.
The brokerage estimates a robust 12% volume compound annual growth rate (CAGR) through FY25-FY27, driven by favorable demand and strategic capacity expansions. Additionally, Citi highlights EBITDA per ton improvement, which is attributed largely to cost optimizations and sustained profitability growth.
UltraTech Cement is currently trading at $180 EV/ton, which remains significantly below its historical peak of $250/ton. Citi also noted that cement prices have increased by 1.5% in the Central and West Indian markets, which bodes well for the company’s near-term profitability.
With its positive outlook on volumes and pricing, Citi continues to see UltraTech Cement as a leading player in the Indian cement sector.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
