Jobaaj Stories
UltraTech Cement Ltd. is drawing attention in the markets following its Q4FY25 earnings report, which was largely in line with expectations. The cement giant reported strong growth in profits and volumes, prompting several brokerages to revise their target prices upward, although valuation concerns continue to temper upside expectations.
For the quarter ended March 2025, UltraTech posted a 10% year-on-year increase in consolidated net profit at Rs 2,482 crore, compared to Rs 2,258 crore in the same quarter last year. Revenue from operations rose 13% YoY to Rs 23,063 crore from Rs 20,419 crore.
The company reported ~17% YoY growth in cement volumes, with domestic sales up ~6% YoY (excluding recent acquisitions). Industry-wide volumes, in contrast, grew approximately 4% during the same period.
On the capital expenditure front, UltraTech Cement is planning a Rs 9,000–10,000 crore capex for FY26, with Rs 7,000 crore earmarked for strategic investments aimed at enhancing operational efficiency and scale. As of March 2025, the company’s installed capacity stands at 184 million tonnes, which is expected to rise to 212 million tonnes by FY2027, including contributions from India Cements and Kesoram.
Following the results, Nuvama Institutional Equities increased its target price on UltraTech Cement to Rs 11,859 from Rs 11,574, citing a more favorable pricing environment. However, it maintained a 'hold' rating, cautioning that "rich valuations are likely to keep upsides capped."
HDFC Securities, meanwhile, maintained its ‘buy’ rating and revised its target price to Rs 12,600 (up from Rs 12,500), forecasting an 11% volume CAGR during FY25–27, driven by both organic growth and ramp-up from recent acquisitions.
Over the past 12 months, UltraTech Cement's stock has rallied nearly 22%, outperforming the Nifty 50, which gained around 7.4% in the same period.
Disclaimer: The views and investment tips expressed by analysts and brokerage firms are their own and do not necessarily reflect those of Jobaaj. Investors are advised to consult with certified financial advisors before making any investment decisions.
