Brokerage firm InCred Equities continues to remain bullish on UltraTech Cement share price despite the stock has given negative returns in the short-term, saying given the visibility on the volume front and improvement in profitability.
The brokerage firm has maintained its ‘add’ rating on the UltraTech Cement, with a target price of ₹13,600 per share, with an upside potential up to 27.7%.
“We maintain our ADD rating on UTCEM, rolling forward to Sep 2028F target price of Rs13,600 or 17x EV/EBITDA (vs. 18x earlier). We maintain our thesis and continue to prefer UTCEM over the medium- to long-term, given the visibility on the volume front & improvement in profitability. Downside risks: Weak demand and pricing, and a rise in input costs,” the firm said.
The brokerage firm said that management expects India’s cement demand to grow around 10% year-on-year (YoY) in Q2FY27, while growth for the first half of FY27 is estimated at 7.5-8%. Demand is expected to improve further from mid-November 2026 as the monsoon season ends and the festive period concludes. Infrastructure development, housing demand and private-sector capital expenditure are likely to support growth.
The company reported sales volume of 38.2 million tonnes (mt), registering a 12.9% YoY increase. Domestic grey cement volume grew 13.8%, with UltraTech Cement continuing to grow faster than the industry. Management said volumes could have been higher if additional production capacity had been available. Regionally, volume growth exceeded 20% in North India, stood at 15-20% in the South, around 10% in the West and Central regions, and nearly 5% in the East. Prolonged rainfall and floods affected demand in eastern markets, while southern markets witnessed strong demand and improving prices.