UltraTech Cement Ltd. delivered a robust fourth-quarter efficiency, beating Jefferies’ estimates and signalling a pointy turnaround after three consecutive quarters of Ebitda decline, acknowledged a latest be aware by the brokerage. Jefferies reiterated its ‘purchase’ ranking on UltraTech and raised its value goal to Rs 14,000.
The corporate additionally accomplished the total integration of its Kesoram and India Cement operations through the quarter, restating historic financials accordingly. The administration outlined an bold roadmap to strengthen profitability at Kesoram and ICEM. Enchancment levers embody greater capability utilisation, higher pricing, value efficiencies, and overhead optimisation, as per the be aware.
Consolidated Ebitda rose 12% year-on-year to Rs 4,620 crore, forward of the brokerage’s forecast of Rs 4,360 crore, pushed by better-than-expected value efficiencies.
On the associated fee entrance, UltraTech reiterated its objective of reaching Rs 300 per tonne in value financial savings, of which Rs 86 per tonne has already been realised in fiscal 2025, as per the be aware.
In the meantime, UltraTech’s constructing supplies division continues to realize traction, as per the be aware. The variety of UBS shops rose to 4,615 within the last quarter of fiscal 2025, contributing over 20% to home gray cement gross sales volumes. The division, presently clocking an annual income run fee of round Rs 1,000 crore, is predicted to triple to Rs 3,000 crore over the following three years.
Trying forward, Jefferies famous that the latest uptick in pricing ought to profit UltraTech’s profitability within the first quarter of this fiscal, though business demand may very well be subdued attributable to heatwave situations.
UltraTech Cement Share Value Immediately
The scrip rose as a lot as 0.89% to Rs 12,222 apiece. It pared good points to commerce 0.08% greater at Rs 12,124 apiece, as of 09:19 a.m. This compares to a 0.45% advance within the NSE Nifty 50 Index.
It has risen 6.03% on a year-to-date foundation and 21.58% within the final 12 months. Whole traded quantity to this point within the day stood at 0.07 occasions its 30-day common. The relative energy index was at 43.51.
Out of 44 analysts monitoring the corporate, 36 keep a ‘purchase’ ranking, 4 suggest a ‘maintain’, and 4 counsel ‘promote’, in accordance with Bloomberg information. The typical 12-month consensus value goal implies an upside of 4.3%.
. Learn extra on Markets by Newsstate24 Revenue.
