On Tuesday, UltraTech Cement’s stock faced a slight decline of nearly 2%, despite announcing a robust 10% year-on-year (YoY) increase in its consolidated net profit, amounting to ₹2,482.04 crore. The company also reported a 13% YoY rise in operational revenue, totaling ₹23,063.32 crore. The share price opened at ₹12,200.05 on the Bombay Stock Exchange (BSE) and fluctuated between an intraday low of ₹11,923.75 and a high of ₹12,200.10.

Market Trends and Predictions

According to Rajesh Bhosale, an analyst at Angel One, the overall sentiment around UltraTech Cement shares remains positive. "While we are witnessing some profit-taking today, the strong support level is anticipated around ₹11,600, with an immediate resistance at ₹12,500," he stated. Bhosale also noted that if the stock maintains a position above ₹12,200, it could potentially surge towards ₹12,800, with a longer-term target of ₹14,000.

Anshul Jain, the Head of Research at Lakshmishree Investments, emphasized that the current price structure is promising. He mentioned, "If there is sustained buying backed by increased volume, we could see significant upward movement in the stock price in the upcoming sessions."

Quarterly Performance Insights

In the latest quarter, UltraTech’s sales volumes reached 41.02 million metric tonnes, contributing to an impressive annual sales figure of 135.83 million metric tonnes for FY25. This positions UltraTech as one of the largest cement producers globally, excluding China. The full fiscal year profit stood at ₹6,039.64 crore, a decrease from ₹7,003.96 crore the prior year, largely due to rising interest and depreciation expenses.

• Capacity Expansion: UltraTech has been proactive in enhancing its production capabilities, adding 42.60 million tonnes per annum (MTPA) through organic growth and acquisitions in FY25.
• New Facilities: The company inaugurated a 1.8 MTPA bulk terminal in Lucknow, Uttar Pradesh, and its total domestic grey cement capacity now stands at 183.36 MTPA, with an additional 5.4 MTPA for international operations.

Competitive Landscape

Meanwhile, the Adani Group, led by Gautam Adani, is aggressively expanding its footprint in the cement sector after acquiring Ambuja Cement from Holcim for USD 6.4 billion (approximately ₹51,000 crore) in September 2022. This move signifies intensified competition in the market.

Analyst Recommendations

Brokerage firm Nuvama Institutional Equities highlighted that UltraTech Cement achieved around 17% YoY consolidated volume growth in Q4FY25, outperforming industry growth rates of about 4%. The domestic operating EBITDA per ton was reported at ₹1,270, reflecting improved operational efficiency and pricing. The management aims for double-digit organic volume growth in FY26E, and the company is on track to reach approximately 211 million tons per annum of domestic capacity by FY27.

Given the more favorable pricing landscape, Nuvama has revised its FY26E/27E EBITDA estimates upward by 2% and 1%, respectively, while maintaining a ‘HOLD’ recommendation with a revised target price of ₹11,859, up from ₹11,574.

Conclusion

As UltraTech Cement continues to solidify its market position through strategic expansions and operational efficiencies, investors are advised to monitor the stock closely, especially as market dynamics evolve. The company’s strong financial performance and growth outlook remain key indicators of its potential in the competitive cement industry.