CLSA has turned more constructive on the cement sector, citing improving profitability, pricing discipline, and the elimination of coal cess as key drivers. The brokerage expects earnings estimates to be revised upward across several companies and sees Ultratech Cement as best positioned to benefit from cost-saving initiatives and organic capacity expansion.
CLSA has upgraded Ultratech Cement to a high conviction outperform rating, raising its target price to ₹14,700 per share. It also upgraded Shree Cement to outperform, with a revised target of ₹33,500 per share.
On Ramco Cement, the brokerage raised its rating to hold, setting a target of ₹1,045 per share. It maintained an outperform stance on Ambuja Cement with a target of ₹670 and on Dalmia Bharat with a target of ₹2,650.
The brokerage noted that Ultratech stands out due to its aggressive capacity expansion strategy and operational efficiencies, which should further strengthen its market leadership and profitability in the medium term.
Disclaimer: The views and recommendations expressed in this article are those of CLSA. This publication does not provide investment advice. Readers are advised to consult certified financial advisers before making any investment decisions.
