Buy UltraTech Cement, target price Rs 12,320: Geojit Financial Services

Geojit Financial Services has a buy call on UltraTech Cement with a target price of Rs 12,320. The current market price of UltraTech Cement is Rs 11126.9 . UltraTech Cement, incorporated in 2000, is a Large Cap company with a market cap of Rs 319214.07 crore, operating in Cement sector.

UltraTech Cement's key products/revenue segments include Portland/Possolana Cement, Cement Grey, Other Operating Revenue, Scrap, Lease Rentals, Sale of services for the year ending 31-Mar-2024.



Financials
For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 15855.46 crore, down -13.05% from last quarter Total Income of Rs 18235.30 crore and down -2.00% from last year same quarter Total Income of Rs 16179.26 crore. The company has reported net profit after tax of Rs 826.62 crore in latest quarter.

Investment Rationale
UltraTech had a weak operating performance due to subdued demand and lower pricing. However, going forward industry growth is expected to pick up driven byrural demand along with the government's thrust on infrastructure development and urbanisation. The company, with its strategic acquisitions and capacity expansion plans, is poised to benefit from these emerging opportunities. Hence, Geojit has upgraded our rating on the stock to BUY based on 20x FY26E EV/EBITDA with a revised target price of Rs 12,320.

Promoter/FII Holdings
Promoters held 59.99 per cent stake in the company as of 30-Sep-2024, while FIIs owned 17.95 per cent, DIIs 13.97 per cent.