DAM Capital upgrades UltraTech Cement to Buy with revised target price of Rs 12,550

DAM Capital upgrades UltraTech Cement to ‘Buy,’ revising the target price to ₹12,550. The brokerage is optimistic about the structural growth in the Indian cement sector, driven by government infrastructure spending. DAM Capital also points out that a slowing pace of consolidation in the sector could provide a breather, aiding pricing power. UltraTech’s market share gains, with an expected 11% volume CAGR over FY25-27 compared to the industry average of 6-7%, are also seen as key positives.

UltraTech Q3FY25 Performance
UltraTech Cement delivered a 16% YoY growth in revenue to ₹17,810 crore in Q3FY25. Volumes rose 14% YoY, supported by healthy demand. Despite higher input costs, the company maintained strong operational performance with EBITDA at ₹2,800 crore and a margin of 15.7%. However, net profit declined 35% YoY to ₹1,058 crore.