UltraTech Cement’s stock surged 2.67% to ₹10,398.95 following UBS’ positive outlook on its Cable & Wire (C&W) business strategy, which aims to leverage synergies with its core cement operations.
Key Highlights from UBS on UltraTech’s C&W Strategy
- Strategic diversification into cables and wires to expand customer wallet share while benefiting from its cement business ecosystem.
- The company targets 60% of C&W revenue from housing wires, with the remaining 40% from cables.
- UltraTech estimates Total Addressable Market (TAM) at 60-65%, aligning with industry demand.
- Capex allocation of ₹18 billion until FY31, with a focus on maximizing utilization without oversupplying the market.
- The company is targeting industry profitability in C&W, suggesting pricing aggression is unlikely.
Stock Performance
- UltraTech opened at ₹10,319.25, reaching a high of ₹10,621.80, and a low of ₹10,300.00.
- 52-week range: ₹9,250.00 – ₹12,145.35.
- Lower/upper circuit limits: ₹9,115.60 – ₹11,141.25.
UBS believes UltraTech’s calibrated approach in the cables and wires sector will enhance profitability while maintaining a disciplined supply strategy, reinforcing long-term value creation.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult with a financial expert before making any investment decisions.
