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UltraTech Cement Limited
(ULTRACEMCO)
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Rating:63Neutral
Price Target:
₹12,488.00
▲(4.98% Upside)
Action:Reiterated
Date:07/20/26
The score is primarily supported by solid financial scale and growth, plus a positive earnings outlook highlighted by strong Q1 execution and guidance with controlled leverage. These are tempered by a relatively expensive valuation (high P/E, low yield), volatile cash-flow conversion and recent re-leveraging risk in the financial statements, and only moderately supportive technicals (still below the 200-day average with elevated stochastic).
Positive Factors
Large scale and sustained revenue growth
Multi-year revenue growth to ~885B demonstrates durable market demand, broad distribution and scale economics. Size supports pricing power, steady project/institutional contracts, and allows the company to absorb regional variability while funding reinvestment and network-driven advantages.
Negative Factors
Recent re‑leveraging and higher debt
The recent step-up in debt after prior deleveraging reduces financial flexibility and increases refinancing and interest-rate risk during execution of large capex. Higher leverage tightens buffers for cyclical downturns and magnifies execution risk if cash generation softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Large scale and sustained revenue growth
Multi-year revenue growth to ~885B demonstrates durable market demand, broad distribution and scale economics. Size supports pricing power, steady project/institutional contracts, and allows the company to absorb regional variability while funding reinvestment and network-driven advantages.
Read all positive factors
UltraTech Cement Limited (ULTRACEMCO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.26T
Dividend Yield2.16%
Average Volume (3M)20.12K
Price to Earnings (P/E)38.4
Beta (1Y)1.19
Revenue Growth19.07%
EPS Growth21.21%
CountryIN
Employees28,399
SectorGeneral
Sector StrengthN/A
IndustryConstruction Materials
Share Statistics
EPS (TTM)290.30
Shares Outstanding294,679,170
10 Day Avg. Volume26,651
30 Day Avg. Volume20,123
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)4.12
Price to Sales (P/S)3.57
P/FCF Ratio81.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹13,972.50Price Target Upside17.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)332.37
Revenue Forecast (FY)₹1.00T
UltraTech Cement Limited Business Overview & Revenue Model
Company Description
UltraTech Cement Limited, an Indian enterprise and a subsidiary of Grasim Industries Limited, specializes in the production and distribution of cement and a comprehensive array of construction-related products. Its core product portfolio includes ...
How the Company Makes Money
UltraTech makes money primarily by manufacturing and selling cement and allied building materials. Its core revenue stream comes from sales of grey cement (its largest product category) to a mix of individual home builders, contractors, and instit...
UltraTech Cement Limited Earnings Call Summary
Earnings Call Date:Jul 20, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 19, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and strategic picture: record first-quarter results, double-digit domestic volume growth (13.1%), brand migration completed early, meaningful capacity expansion backed by secured limestone, and improvement in balance-sheet metrics (net debt/EBITDA 0.87x). These positives are tempered by near-term cost headwinds from the West Asia conflict (expected INR 130–140/tonne in Q2), packaging and diesel-driven raw-material cost spikes, and typical monsoon seasonality that may pressure Q2 earnings. On balance, the company demonstrated strong execution, growth momentum, and a path to further margin recovery as fuel and input volatility subsides.Positive Updates
Record Q1 Performance Across Key Metrics
Q1 FY2027 was UltraTech's highest ever first quarter across volumes, revenues, EBITDA and profit: revenues up ~16% YoY, EBITDA INR 5,146 crore (up ~12% YoY), PAT INR 2,604 crore (up 17.2% YoY). Operating EBITDA per ton remained steady above INR 1,200.
Negative Updates
West Asia Conflict and Fuel Cost Shock
Geopolitical disruption (West Asia) caused sharp imported fuel and coal cost increases. Management expects Q2 cost headwind of ~INR 130–140 per tonne (including maintenance/seasonality and fuel). Q1 fuel cost rose from INR 874 to INR 915/tonne (~5% increase), contributing ~INR 25–40/tonne impact in the quarter.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Q1 Performance Across Key Metrics
Q1 FY2027 was UltraTech's highest ever first quarter across volumes, revenues, EBITDA and profit: revenues up ~16% YoY, EBITDA INR 5,146 crore (up ~12% YoY), PAT INR 2,604 crore (up 17.2% YoY). Operating EBITDA per ton remained steady above INR 1,200.
Read all positive updates
Company Guidance
Management guided to double‑digit volume growth for FY27 and to keep net debt/EBITDA below 1.0x (from 0.94x at the start of the year to 0.87x at quarter end), backed by an INR ~17,000 crore CapEx program over the next 2–2.5 years (after ~INR 9,500 crore deployed in FY26) that will raise consolidated capacity from ~205.5 mt today (domestic 200.1 mt) to ~212.7 mt grey cement by end‑FY27 and to roughly 240–242 mt (management also cited ~235–237 mt by Mar‑2028); this quarter saw ~12 mt of new country capacity (8.7 mt by UltraTech), green power at ~1.897 GW (47% of power needs) with 71 MW renewables + 19 MW WHRS added and a 2.5–3 GW target, and a turnaround at India Cements (LFL revenues INR 993 cr vs 821 cr, +21%; volumes +19%; EBITDA/ton up to ~INR 603 this quarter with a 1.5x conversion ratio and a target of ~INR 1,000/ton by Q4 FY28). Q1 operating metrics and near‑term color: domestic grey volumes +13.1%, capacity utilization 81% (vs 76%), revenues +16%, EBITDA INR 5,146 cr, PAT INR 2,604 cr (+17.2% YoY), EBITDA/ton >INR 1,200, but management cautioned a Q2 cost headwind of ~INR 130–140/ton (fuel/packing/maintenance) with blended fuel ~INR 1.9–2.0/kcal (~$134/ton).UltraTech Cement Limited Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 918.84B | 885.12B | 759.55B | 709.08B | 632.40B | 525.99B |
| Gross Profit | 523.48B | 429.19B | 438.32B | 407.22B | 350.34B | 324.97B |
| EBITDA | 180.40B | 174.43B | 123.86B | 127.77B | 104.45B | 114.28B |
| Net Income | 85.39B | 81.66B | 60.39B | 70.05B | 50.64B | 73.44B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 1.41T | 1.34T | 1.01T | 913.87B | 838.28B |
| Cash, Cash Equivalents and Short-Term Investments | 51.20B | 51.20B | 58.31B | 64.03B | 84.20B | 56.21B |
| Total Debt | 0.00 | 237.55B | 241.02B | 114.03B | 110.58B | 112.99B |
| Total Liabilities | -807.12B | 606.64B | 598.04B | 405.19B | 371.18B | 333.96B |
| Stockholders Equity | 807.12B | 766.24B | 707.07B | 602.27B | 543.25B | 504.35B |
Cash Flow | ||||||
| Free Cash Flow | 7.71B | 38.82B | 15.44B | 18.92B | 28.68B | 36.70B |
| Operating Cash Flow | 55.67B | 136.54B | 106.73B | 108.98B | 90.69B | 92.83B |
| Investing Cash Flow | -33.03B | -96.87B | -165.04B | -87.88B | -71.87B | 22.57B |
| Financing Cash Flow | -26.21B | -40.85B | 50.76B | -19.26B | -16.31B | -124.98B |
UltraTech Cement Limited Technical Analysis
Negative
11895.45
Price Trends
11490.62
Negative
11357.76
Negative
11527.11
Negative
Market Momentum
-131.98
Negative
47.31
Neutral
86.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ULTRACEMCO, the sentiment is Negative. The current price of 11895.45 is above the 20-day moving average (MA) of 11102.91, above the 50-day MA of 11490.62, and above the 200-day MA of 11527.11, indicating a bearish trend. The MACD of -131.98 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 86.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ULTRACEMCO.
UltraTech Cement Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹959.14B | 21.68 | ― | 0.52% | 10.70% | 1.03% | |
65 Neutral | ₹232.25B | 12.16 | ― | 0.61% | 15.35% | -21.06% | |
63 Neutral | ₹3.26T | 38.43 | ― | 2.16% | 19.07% | 21.21% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹322.68B | 34.15 | ― | 0.53% | 7.60% | -0.22% | |
54 Neutral | ₹400.30B | 40.86 | ― | 0.40% | 15.92% | -5.47% | |
49 Neutral | ₹805.94B | 49.85 | ― | 0.67% | 12.63% | 9.64% |
* General Sector Average
IN:ULTRACEMCO
UltraTech Cement Limited
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-6.02%
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UltraTech Cement Limited Corporate Events
UltraTech Cement Steps Up Shareholder Outreach Ahead of 2026 AGM
Jul 25, 2026
UltraTech Cement has notified stock exchanges that it is dispatching letters to shareholders who do not have registered email addresses, providing them with a web link to access the company’s Integrated and Sustainability Report for 2025-26....
UltraTech Cement Adds BCG Veteran Vikram Bhalla as Independent Director
May 27, 2026
UltraTech Cement has reshaped its board composition by appointing Vikram Bhalla as an independent director for a five‑year term starting June 8, 2026, subject to shareholder approval. The move signals a governance-focused enhancement of the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.