UltraTech Cement Share Price Target: Brokerages see up to 25% upside potential after strong Q1; stock jumps nearly 2%

UltraTech Cement Share Price: UltraTech Cement remained in focus after reporting a strong set of Q1 FY27 results, prompting multiple brokerages to reaffirm their bullish stance on the stock. Motilal Oswal Financial Services (MOFSL), Nuvama Institutional Equities and Centrum have all maintained their 'BUY' ratings, with target prices of Rs 13,800 (13.81 per cent upside potential), Rs 15,209 (25.43 per cent upside potential) and Rs 14,300 (17.94 per cent upside potential), respectively.

The brokerages cited robust volume growth, resilient profitability, stable pricing, operational efficiencies and a healthy demand outlook driven by infrastructure spending and housing as key reasons for their optimism.

MOFSL highlighted that the management is targeting double-digit grey cement volume growth in FY27, supported by robust infrastructure spending, sustained housing demand and urban redevelopment projects. The brokerage also noted that cement prices have remained stable, aided by higher input costs and UltraTech's strong brand positioning.

Brokerage firm Nuvama Institutional Equities has maintained its 'BUY' rating on UltraTech Cement following the company's Q1 FY27 results, while reiterating a target price of Rs 15,209.

Centrum has reiterated its 'BUY' rating on UltraTech Cement and raised the target price to Rs 14,300 from Rs 13,691, citing the company's resilient operating performance in Q1 FY27.

The brokerage said the key positive during the quarter was UltraTech's ability to maintain EBITDA per tonne above Rs 1,200 for the second consecutive quarter, despite input cost pressures arising from geopolitical disruptions.

UltraTech Cement share price

Shares of UltraTech Cement surged to Rs 12,124.95 per share during the early trade on Tuesday, which is 1.91 per cent or Rs 227.15 above the previous close of Rs 11,897.80 per share.

UltraTech Cement Q1 Results

UltraTech Cement reported a strong performance for the quarter on a year-on-year (YoY) basis. Revenue rose 15.9 per cent YoY to Rs 24,648 crore in Q1 FY 2027 from Rs 21,275 crore. Net profit increased 16.8 per cent YoY to Rs 2,599 crore, compared with Rs 2,226 crore in the year-ago period.

EBITDA grew 13.7 per cent YoY to Rs 5,015 crore from Rs 4,410 crore. However, the EBITDA margin slipped 38 basis points (bps) YoY to 20.3 per cent in Q1 FY 2027, compared with 20.7 per cent in the corresponding quarter last year.

Profit before interest, depreciation and tax (PBIDT) increased to Rs 5,146 crore in the April–June quarter from Rs 4,591 crore in the corresponding period last year. The company attributed its strong start to FY27 to broad-based growth in revenue, profitability and sales volumes.

UltraTech said domestic sales volumes rose 13.1 per cent year-on-year during the quarter, driven by strong execution, sustained operational efficiencies and the integration of acquired assets. It also noted that the turnaround of India Cements continued to gain momentum, with the subsidiary posting a normalised profit after tax of Rs 52 crore in Q1 FY27, compared with a net loss of Rs 183 crore in the year-ago quarter, supported by an 18.5 per cent growth in volumes.

(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)