UltraTech Cement stock rating raised to High-Conviction Underperform by CLSA

Published 17/09/2025, 08:26
UltraTech Cement stock rating raised to High-Conviction Underperform by CLSA

Investing.com - CLSA has upgraded UltraTech Cement Ltd (NS:UTCEM) from Outperform to High-Conviction Underperform while raising its price target to INR14,700.00 from INR13,500.00.

The research firm expects UltraTech Cement’s profitability to increase, citing ongoing cost-saving measures, the impact of coal cess elimination, and spread improvement. CLSA notes that despite raising its estimates above consensus, it still sees upside risks to its forecasts.

CLSA projects a 16% earnings CAGR for UltraTech Cement over FY26-30, driven by strong capacity expansion and margin accretion through cost savings. The firm also anticipates ROCE improvement and strong free cash flow generation during this period.

The price target increase reflects CLSA’s estimate upgrades and a valuation roll forward. The research firm describes the risk-reward profile for UltraTech Cement as "attractive."

UltraTech Cement is India’s largest cement manufacturer and among the world’s leading cement producers, with operations spanning multiple regions across the country.

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