News

UltraTech is a 'high-conviction' buy for this analyst; know more about its FY27 guidanceWhile CLSA said that any escalation in Middle East tensions could pose near-term cost pressures, it believes sustained cost efficiencies position UltraTech Cement well to absorb volatility.By Meghna Sen  April 28, 2026, 7:39:33 AM IST (Published)3 Min ReadShares of UltraTech Cement Ltd. will continue to remain in focus on Tuesday, April 28, after brokerages turned positive on its March quarter performance, which came in ahead of expectations across key metrics.

CLSA has maintained its 'high conviction outperform' rating on the stock with a price target of ₹14,000, citing strong execution, with volumes rising 9% year-on-year and EBITDA per tonne at ₹1,192, both exceeding estimates.

While it said that any escalation in Middle East tensions could pose near-term cost pressures, the brokerage believes sustained cost efficiencies position the company well to absorb volatility.

CLSA expects capacity-led volume growth and margin expansion to drive mid-to-high teens EBITDA growth over the medium term.

Jefferies has reiterated its 'buy' rating with a target of ₹14,050, saying that the company ended FY26 on a strong footing.

March quarter EBITDA rose 21% year-on-year, taking full-year EBITDA growth to 36%, supported by 14% volume growth and partial delivery of planned cost savings.

The company also announced a record dividend payout of over 85% and crossed the 200 mtpa capacity milestone. However, the brokerage cautioned that FY27 could be more challenging due to cost pressures, although price hikes and further cost efficiencies may support EBITDA per tonne growth.

HSBC has also retained a 'buy' call with a target of ₹14,200, citing a beat on EBITDA and profit driven by strong volumes and lower costs.

It views the special dividend of ₹240 per share as a positive and expects capital expenditure intensity to moderate over FY27-29. The brokerage has raised its EBITDA estimates for FY28 and FY29.

Management commentary

Management remains confident on growth, guiding for double-digit volume expansion in FY27, ahead of industry growth. Capacity addition is expected to continue at a faster pace than the industry, supporting market share gains.

The company has outlined annual capital expenditure of around ₹8,000-₹10,000 crore, alongside ongoing cost optimisation efforts.

It has already delivered cumulative cost savings of ₹185 per tonne over FY25-26 and sees further savings of over ₹120 per tonne over FY27-28.

While cement price hikes are expected to offset cost pressures in the near term, the impact of higher fuel costs, particularly coal and pet coke, may become more visible from the second quarter of FY27.

On integration, Kesoram Industries' assets have already achieved EBITDA per tonne of over ₹1,000, while the target for India Cements is to reach similar profitability levels by FY28.

Shares of UltraTech Cement ended largely flat at ₹12,000 on Monday and remain unchanged on a year-to-date basis.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsUltraTech CementUltraTech Cement earningsUltraTech Cement Share Price NewsUltratech Cement stocks