Morgan Stanley has reiterated its ‘Overweight’ rating on UltraTech Cement with a target price of ₹13,620, reflecting a positive outlook despite Q2 EBITDA being below estimates. The brokerage believes that UltraTech Cement is on the last leg of an earnings downgrade cycle and expects a turnaround in the near term.
The company’s earnings are projected to grow strongly over the next few years, driven by a demand pickup and cement price expansion. Additionally, cost-improvement initiatives are expected to contribute significantly to earnings compounding in the coming years.
Disclaimer: The views and recommendations in this article are based on analyses by Morgan Stanley, CLSA, and Nomura and do not constitute investment advice. Investors should consult their financial advisors before making any decisions. The author and the publication bear no responsibility for investment losses arising from actions taken based on this information.
