Ultratech Cement Receives Buy Recommendation from Choice Institutional Equities with a Target Price of Rs 15,210
UltraTech Cement Continues to Strengthen its Cost Leadership
Ultratech Cement (UTCEM) has maintained its position as a leading player in the cement sector by continuing to strengthen its cost leadership. The company's Waste Heat Recovery System (WHRS) capacity stands at 414 MW, while its renewable energy capacity has reached 1,392 MW. Management's focus on driving efficiency will lead to a targeted cost reduction of approximately INR 300 per ton in the next few years.
Key Drivers of Growth
Several key factors support UTCEM's growth prospects. Firstly, the company has a robust capacity expansion pipeline, with plans to add 15.9 million tons per annum (MTPA) in FY27E and 29.8 MTPA in FY28E. Additionally, UTCEM has been implementing strong cost-optimisation initiatives, which will further enhance its competitive position. The cement sector is also expected to experience favourable pricing, providing a supportive backdrop for UTCEM's growth.
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Maintaining a BUY Rating
Despite ongoing geopolitical uncertainty, our core investment thesis remains intact, and we maintain our BUY rating on UltraTech Cement (UTCEM) with a target price of INR 15,210.
| Recommendation | Target Price (INR) | Rating |
|---|---|---|
| UltraTech Cement (UTCEM) | 15,210 | BUY |
Investor Takeaway
Investors should consider buying Ultratech Cement due to its robust capacity expansion pipeline and cost-optimisation initiatives.
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