UltraTech Q3 results, UltraTech share price: Brokerages laud Q3 earnings, hike target prices

Bullish brokerages lauded UltraTech Cement’s Q3 performance as the earnings were ahead of consensus estimates. Sales volume grew 11 per cent, revenue went up to ₹17,194 crore and operational cost rose to ₹15,605 crore for the quarter ended December 2024.

Shares of UltraTech Cement closed 1.06 per cent lower at ₹11,300, erasing early gains of 1.6 per cent hitting a high of ₹11,609.70. The total market cap stood at ₹3,26,231.07 crore.

However, the company reported a 17.2 per cent decline in consolidated net profit for the quarter ended December 2024 at ₹16.74 crore from ₹17.75 crore in the corresponding quarter of the previous year.

Motilal Oswal reiterated buy rating at a target price of ₹13,800 and estimated that UltraTech would continue to gain market share with its robust capacity expansion. The brokerage observed signs of recovery in cement demand across all sectors, including infrastructure, IHB, rural, and urban demand, and added that a good monsoon season would drive rural demand in the coming months. 

Elara Capital, which reiterated accumulate rating at an unchanged target price of ₹13,229, believes that completion of ongoing growth projects, coupled with integration of India Cements and Kesoram Cement, augur well for future volume growth. However, it added that acquisition could limit margin outperformance. The brokerage cited sub-par demand, weak cement prices and a sharp increase in fuel price as key risks to its call.

DAM Capital has upgraded the stock to buy at an increased target price of ₹12,550, highlighting that the country’s cement sector should witness a breather.

HDFC Securities analysts have maintained add call at a target price of ₹12,100, noting that UltraTech has delivered industry-leading 12 per cent volume growth. “We estimate the consolidation of India Cements and Kesoram to drive 21/9 per cent y-o-y volume growth in FY26/27E. However, as these assets’ margins will remain significantly below UltraTech’s core margin, it will offset the volume gain impact on consolidated EBITDA.”

PL Capital has also retained accumulate call at an increased target price of ₹12,350 from ₹12,145 earlier.

Global brokerage Macquarie believes the company is best placed with timely capacity addition and diversified regional mix. The global brokerage has maintained an outperform rating on the stock, its top pick, at an increased target price of ₹12,705. Equirus, Jefferies and Goldman Sachs have retained buy ratings at the target prices of ₹ 13,490, ₹13,265, and ₹12,580, respectively.

Nuvama Institutional Equities acknowledged that UltraTech outperformed the industry. The brokerage maintained hold call at the target price of ₹11,574 from ₹11,328. It has marginally revised up FY25, FY26 and FY27 EBITDA estimates by 1 per cent each considering better demand growth and pricing environment.

Meanwhile, JP Morgan has maintained overweight rating at a target price of ₹13,470.