Shares of UltraTech Cement are in focus after CLSA reiterated a High Conviction Outperform rating on the stock with a target price of ₹14,500, citing strong demand visibility and long-term growth drivers.
Following a management meeting, CLSA highlighted strong demand tailwinds across segments. The brokerage said that demand strength, combined with ongoing industry consolidation, is likely to support a low single-digit price increase over the medium term.
CLSA noted that UltraTech expects to deliver industry-leading volume growth, supported by its capacity expansion pipeline. The brokerage also pointed to expected profitability improvement driven by cost-savings initiatives.
Over the longer term, CLSA sees mid-teens earnings CAGR over FY26–FY30, alongside improvement in return on capital employed (ROCE) and strong free cash flow generation.
At the current market price of ₹12,543.00, CLSA’s target price of ₹14,500 implies an upside of around 16%.
Disclaimer: This article is based solely on brokerage commentary and numerical inputs provided by the user. The views expressed are those of CLSA and do not constitute investment advice or recommendations by the publication.
