UltraTech Cement’s stock jumped 3% after global brokerage UBS upgraded its rating to ‘Buy’ from ‘Neutral’, signaling renewed optimism in the Indian cement sector.
UBS believes the worst may be over for the cement industry, citing demand revival, easing cost pressures, and ongoing industry consolidation as key growth drivers. The brokerage notes that cement prices declined by nearly 8% in the first nine months of FY25, impacting profitability. However, prices are expected to stabilize, supporting a recovery in earnings.
Large cement players, including UltraTech Cement, are actively implementing logistics and energy efficiency initiatives, which are expected to improve margins. Moreover, a housing sector upcycle and increased government infrastructure spending are set to drive strong demand growth in the coming years.
UBS raised its price target for UltraTech Cement to ₹13,000 (previously ₹9,000), highlighting its industry-leading scale and robust balance sheet. The sector’s valuation remains near its five-year average EV/EBITDA, suggesting further upside potential as earnings rebound.
UltraTech Cement shares opened at ₹11,240, reaching a high of ₹11,420 and a low of ₹11,204.70. The stock remains resilient, trading near its 52-week high of ₹12,145.35, significantly above its 52-week low of ₹9,250.
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