Goldman Sachs has maintained its ‘Buy’ rating on UltraTech Cement but has lowered the target price to ₹11,720 from ₹12,430**, reflecting a slight reduction based on Q2 review results. Despite weak profitability in the second quarter, the management remains optimistic about a recovery in the second half of the financial year.
Goldman Sachs highlighted that price increases will be crucial, as competition for volume share is expected to persist. The firm also notes that UltraTech is the only ‘Buy’ in the sector coverage, reinforcing its favorable standing compared to competitors.
The brokerage is bullish on UltraTech’s strong balance sheet and its cost savings roadmap. It also highlighted the company’s timely capacity expansions as a positive factor driving growth in the upcoming periods.
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