UltraTech Cement, the country's largest cement manufacturer, is once again in the spotlight for investors. This is due to new reports from two major brokerage firms – Nomura and Mirae Asset Sharekhan – expressing optimism about the stock, projecting it could reach ₹14,200 in the coming months. Currently, its price on the BSE is around ₹12,400, indicating a potential increase of approximately 14 percent.
Increasing Demand and Margin Improvement Providing Support
Foreign and domestic brokerage firms like Nomura and Mirae Asset believe that the company's current strategy, cost control measures, and production expansion steps will show their effect in the future. Due to these reasons, an increase in UltraTech's profits and strengthening of the share price are expected.
Nomura Gives a Target of ₹13,900
Nomura's report states that the company's recent acquisitions will lead to a significant increase in production capacity. According to the report, these acquisitions will benefit both the company's market share and cement sales. Based on this, Nomura has increased its previous target price from ₹12,800 to ₹13,900.
The report mentions that the company's performance in the first quarter of fiscal year 2025, i.e., April to June, was in line with expectations. Cement sales increased by approximately 14 percent year-on-year, while profits remained b. Although some figures were slightly below estimates, the overall results are considered good.
Control Over Expenses, Increase in Profit Per Ton
Nomura's report also indicates that the company is being very cautious about its expenses. Due to improvements in fuel costs, better logistics planning, and efficient management, the margin per ton is likely to increase. This will maintain the strength of the company's operating profit.
Mirae Asset Sharekhan Sets a Target of ₹14,200
On the other hand, Mirae Asset Sharekhan has shown even more enthusiasm regarding UltraTech Cement. According to Sharekhan's report, considering the company's current strategy and increasing demand in the market, the share can go up to ₹14,200. The brokerage house believes that UltraTech will directly benefit from improvements in both demand and margins.
Sharekhan's report also states that the company has a b balance sheet, which allows it to make further investments in the future. The company's management team has already indicated that they are planning to increase production capacity and expand into new areas in the coming years.
Cement Demand Showing Momentum
Due to the pace of infrastructure projects and improvement in real estate in the country, the demand for cement is continuously increasing. Major companies like UltraTech are preparing to take full advantage of this. Along with this, government spending and rural development are also leading to an increase in cement consumption.
Market Trust in Management's Strategy
The company's management plans are instilling confidence among investors. UltraTech has proven itself on several fronts, including acquisitions, technical investments, cost control, and logistics improvements. Market experts believe that this is the reason why major brokerage houses are looking bullish on this stock.
Hope Remains Despite Recent Volatility in Share Price
UltraTech's performance has remained stable amidst the recent fluctuations in the stock market. Even though a slight decline has been observed for some time, there is full potential for stability and growth from a long-term perspective. After the latest analysis by brokerage houses, investors' attention is now focused on this stock.
UltraTech Remains the Strongest Player in the Cement Sector
UltraTech already has a b dominance in the Indian cement market. Its factories and distribution network across the country keep it ahead of other companies. The company is continuously increasing its production capacity and further strengthening its position in the market. For this reason, it is being seen as a reliable option for investors.
