CLSA has upgraded Ultratech Cement to a high-conviction outperform call with a target price of ₹14,700, despite mixed investor sentiment on the stock. The brokerage acknowledged that some investors remain divided on this upgrade, given near-term concerns around the sustainability of price hikes, slowing capital expenditure, and valuation comfort.
However, CLSA believes Ultratech is uniquely placed to outperform, backed by significant cost savings, healthy cash flow generation, and supportive policy tailwinds such as GST compliance acting as a market enabler. The brokerage expects cement demand growth to accelerate post-festive season, with Ultratech’s aggressive expansion plans providing further momentum.
While concerns on valuations persist, CLSA argued that Ultratech’s balance sheet strength and leadership in capacity expansion leave it well positioned to deliver sustained growth. The firm highlighted that robust demand recovery and scale benefits will drive earnings upside, reinforcing confidence in its high-conviction view.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.