UltraTech Cement shares in focus as brokerages revise target prices after Q2 results. What Citi, Nomura, Jefferies say

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ETMarkets.com

UltraTech Cement on Monday reported a consolidated net profit of Rs 1,494 crore for the July-September quarter of the ongoing financial year 2027, marking a 21% jump from the Rs 1,232 crore net profit reported in the year-ago period.

The company’s revenue from operations increased 19% year-on-year to Rs 23,295 crore in Q2 FY27, from Rs 19,607 crore in the year-ago period. Shares of the company dropped more than 2% to close at Rs 10,650 apiece after the release of the results on Monday.

Also read | UltraTech Cement Q2 Results: Net profit jumps 21% YoY to Rs 1,494 crore; revenue up 19%

Jefferies on UltraTech Cement share price

Jefferies maintained its ‘Buy’ rating on the shares of UltraTech Cement and increased its target price to Rs 14,380 apiece from Rs 14,065 apiece, implying 32% upside potential. The international brokerage said the company delivered another strong quarter.

UltraTech’s management indicated that the next phase of organic expansion will be announced soon. Jefferies noted that this will drive further volume market share gains for the company from the current 31-32%

Nomura on UltraTech Cement share price

Nomura maintained its ‘Buy’ rating but reduced its target price to Rs 13,700 apiece from Rs 13,900 apiece. The latest target price implies around 29% upside potential from the stock’s previous closing price.

The international brokerage said the company’s Q2 EBITDA of Rs 3,700 crore was 7% higher than its estimate, driven by slightly better realizations and volume growth. Ultratech reported 14% YoY volume growth, 2% above its estimate. Higher fuel and fixed costs resulted in a 7% sequential increase in operating costs, 5% above estimate.

UltraTech’s management expects demand to stay strong through March 2029, supported by data centers, private capex, metro extensions and urban housing, although a weaker monsoon typically leads to softer rural demand, which could pose a risk in FY28, in Nomura’s view. However, management acknowledges costs may not have peaked and that the West Asia situation remains unpredictable, the international brokerage noted.

“We lower our FY27, 28 and 29 EBITDA marginally, by 5%, 1% and 1% respectively, largely on account of the escalated cost structure. We maintain our FY27-29 grey cement volume estimates. Consistent performance improvement from India Cement is a key positive, in our view,” Nomura said.

Also read | UltraTech Cement announces board reshuffle; KC Jhanwar to become non-executive vice chairman from January 1

Citi on UltraTech Cement share price

Citi maintained a ‘Buy’ rating on the shares of UltraTech Cement, but reduced its target price to Rs 13,200 apiece from Rs 14,750 apiece, with the latest target price implying around 24% upside potential from the stock’s previous closing price.

Spot cement prices are currently 5% above the second-quarter average, supporting expectations of further price hikes, the international brokerage was quoted as saying by ET Now.

UltraTech Cement share price

UltraTech Cement shares have fallen more than 1% in a week, 4% in a month and 10.5% in 2026 so far. The shares of the cement major have fallen nearly 14% in one year.

In the longer term, the shares of the company have delivered positive returns of 26% in three years and 49% in five years. The company has a market capitalisation of around Rs 3.14 lakh crore.

Also read | UltraTech commissions Rs 2,650 crore cement plant in Andhra Pradesh in 14 months