CLSA has maintained its outperform rating on UltraTech Cement with a target price of ₹13,500 per share. At the current market price of ₹12,562, the target implies an upside of around 7 percent.
The brokerage said feedback from its recent conference indicated optimism about a demand recovery in the second half of FY26, supported by government measures such as income tax cuts, interest rate reductions and GST rationalisation. While the GST cut will need to be fully passed through to customers, CLSA noted it still provides headroom for medium-term price increases considering the pressures of cost inflation.
UltraTech estimates that the removal of coal cess and its replacement with GST could reduce costs by ₹20 per tonne. The company added that firms with higher coal proportion in their fuel mix stand to benefit more from this change. UltraTech reiterated its cost savings target of ₹300 per tonne, with ₹86 per tonne already achieved so far.
Beyond cement, UltraTech is also focusing on its wires and cables business, where capacity ramp-up and return on capital employed (ROCE) remain key priorities. CLSA said the combination of demand recovery and sustained cost-saving initiatives provides confidence in the company’s ability to deliver margin resilience.
Disclaimer: The views and investment recommendations expressed above are those of CLSA. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
