Motilal Oswal Recommends Buying UltraTech Cement, Targets Price of Rs 13,800
UltraTech Cement Surpasses Estimates in 4QFY26
UltraTech Cement, a leading cement manufacturer, has released its financial results for the fourth quarter of fiscal year 2026, exceeding the expectations of Motilal Oswal's research team. The company's 4QFY26 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was significantly higher than the estimated value, driven by lower operational expenses per ton.
According to the research report, UltraTech Cement's consolidated EBITDA increased by approximately 21% year-over-year to INR56.0 billion, marking a 7% beat against the estimated value. Additionally, the company's EBITDA per ton grew by around 11% year-over-year to INR1,253, surpassing the estimated value of INR1,148. The operating profit margin (OPM) surged by 1.7 percentage points year-over-year to approximately 22%, outperforming the estimated value by 1.8 percentage points.
Financial Highlights
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| Metric | 4QFY26 Actual | 4QFY26 Estimated |
|---|---|---|
| Consolidated EBITDA | INR56.0 billion | - |
| EBITDA per ton | INR1,253 | INR1,148 |
| OPM | 22% | 20.3% |
The adjusted profit after tax (PAT) grew by around 20% year-over-year to INR29.9 billion, a 10% beat against the estimated value. Motilal Oswal's research team has maintained a positive outlook for the company, valuing UltraTech Cement at 18x FY28E EV/EBITDA, which translates to a target price of INR13,800. The stock is currently trading at 19x/16x FY27E/FY28E EV/EBITDA.
In light of these financial results, Motilal Oswal reiterates its BUY recommendation for UltraTech Cement.
Investor Takeaway
Investors should consider buying UltraTech Cement, targeting a price of Rs 13,800.
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