Ultratech Cement Shares: What ought to be the funding technique after Q3 outcomes? That is the pattern of brokerage – INA NEWS

After the December 2024 quarter outcomes, brokerage agency Equirus sees good upside potential in UltraTech Cement shares. Aditya Birla Group’s cement firm’s revenue has declined within the December quarter, however it stays the brokerage’s prime guess within the cement sector. Nevertheless, if we speak about shares, there’s promoting stress on them at this time. As we speak on BSE it closed at a worth of Rs 11287.65 (Ultratech Cement Share Value) with a decline of 1.18 p.c. In intra-day it fell by 1.69 p.c to the worth of Rs 11,230.00.

Why is brokerage concerned about Ultratech Cement?

Speaking concerning the firm’s outcomes, within the December quarter, UltraTech Cement’s income elevated by 3 p.c year-on-year to ₹ 17,193 crore, however then again, revenue fell by 17% to ₹ 1,473 crore and EBITDA additionally fell to ₹ 2,888 and margin additionally fell to ₹ 17. Got here to %. Regardless of this, UltraTech Cement’s robust money stream technology and glorious leverage place make it Equirus’ prime guess within the cement sector. The corporate’s focus stays on value discount and can be aggressively growing capability once in a while, which is essential for the corporate’s progress. In such a state of affairs, it stays the brokerage’s alternative and the brokerage has mounted the goal worth of funding in it at ₹ 13,490.

Of the 42 analysts protecting UltraTech, 34 have given a purchase score, 5 have a maintain and three have a promote score. DMM Capital has upgraded its score to purchase and in addition modified the goal worth to ₹12,550 crore. The brokerage believes that the federal government’s emphasis on infrastructure will help the Indian cement sector. The brokerage says that UltraTech’s market share can develop at a compound progress fee (CAGR) of 11 p.c within the monetary yr 2025-27, whereas the business will develop at a tempo of 6-7 p.c throughout this era.

Jefferies has additionally maintained its purchase score and glued the goal worth at ₹ 13,265. That is the brokerage’s prime guess within the cement sector. It believes the latest rise in costs and working leverage will take its EBITDA per tonne to ₹1,100-1,150 per tonne within the March quarter. The brokerage expects it to develop at a compound annual progress fee (CAGR) of 14 per cent in monetary years 2024-27.

How have been the shares in a single yr?

Final yr on April 19, 2024, shares of UltraTech Cement have been at Rs 9250.10, which is the document low of 1 yr for its shares. From this low stage, it jumped by greater than 31 p.c in 8 months and reached a worth of Rs 12143.90 final month on December 16, 2024, which is a document excessive for its shares. Nevertheless, the rise of shares stopped right here and at current it’s greater than 6 p.c draw back from this excessive.

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