UltraTech Cement’s efficiency improvement plans are on track, and it is expected to achieve its target of reducing opex/t by Rs 300/tonne by FY27.
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IDBI Capital Report
UltraTech Cement Ltd.’s Q3 FY25 Ebitda came above our our consensus estimates by 9% and 3% respectively. Ebitda/tone stood at Rs 951/tonne versus Rs 725/tonne.
The improvement in Ebitda was driven by a revival in cement demand across the industry. Additionally, the acquisition of India Cements enabled UltraTech to meet its capacity addition targets ahead of schedule. With this inorganic expansion, UltraTech now holds a strong position in the growing southern market.
The company’s efficiency improvement plans are on track, and it is expected to achieve its target of reducing opex/t by Rs 300/tonne by FY27. We have upgraded the rating to ‘Buy’ with target price of Rs 13,233, assigning 17 times FY27E enterprise value/Ebitda multiple, backed by improvement in demand, increased capacity, and reduction in operating costs.
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. Read more on Research Reports by NDTV Profit.UltraTech Cement’s efficiency improvement plans are on track, and it is expected to achieve its target of reducing opex/t by Rs 300/tonne by FY27.NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. IDBI Capital ReportUltraTech Cement Ltd.’s Q3 FY25 Ebitda came above our our consensus estimates by 9% and 3% respectively. Ebitda/tone stood at Rs 951/tonne versus Rs 725/tonne. The improvement in Ebitda was driven by a revival in cement demand across the industry. Additionally, the acquisition of India Cements enabled UltraTech to meet its capacity addition targets ahead of schedule. With this inorganic expansion, UltraTech now holds a strong position in the growing southern market. The company’s efficiency improvement plans are on track, and it is expected to achieve its target of reducing opex/t by Rs 300/tonne by FY27. We have upgraded the rating to ‘Buy’ with target price of Rs 13,233, assigning 17 times FY27E enterprise value/Ebitda multiple, backed by improvement in demand, increased capacity, and reduction in operating costs.Click on the attachment to read the full report:UltraTech Cement Share Price Spikes As Q3 Earnings Beats EstimatesDISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.Users have no license to copy, modify, or distribute the content without permission of the Original Owner.. Read more on Research Reports by NDTV Profit. Read MoreResearch Reports
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