Ultratech Cement (UTCEM IN) – Company Update – Racing ahead with scale and efficient execution – BUY
Published on 05 Jun 2026
We believe UTCEM remains the best placed among peers given its massive scale across regions, continued focus on capacity addition despite current cost headwinds, dealer network handling capabilities and disciplined approach towards growth. It continues to deliver on capacity expansion plans while successfully integrating acquisitions and improving profitability across acquired assets. Ongoing investments in operational efficiencies, renewable energy and network optimisation should further strengthen its cost leadership by end FY28E. Backed by robust cash flow generation, a healthy balance sheet and India’s long runway for cement demand growth, UTCEM remains well positioned to drive sustainable volume growth and further consolidate its leadership position in the Indian cement industry. We expect UTCEM’s volume/EBITDA to deliver a CAGR of 11%/17% over FY26-28E. The stock is trading at EV of 16.8x/14.6x FY27E/28E EBITDA. Maintain ‘BUY’ with TP of INR13,835 valuing at 18x EV of Mar’28E EBITDA.
