ICICI Direct has given Buy recommendation for UltraTech Cement with a target price of Rs. 8000 in its research report issued on May 02, 2022

ICICI Direct’s research report on UltraTech Cement

UltraTech is the largest cement manufacturer in India with a domestic capacity of 114.5 MT (over 23% of total market) with a leadership position in most regions (excluding east). It has grown through organic and inorganic routes and added ~30 MT of capacity in the last three years. It has shown its capability to successfully integrate the acquired assets and ramped-up its utilisations in a profitable manner • The company is now focusing on fast growing market of eastern India, which accounts for 10.2 MT of its total 19.6 MT planned expansion in FY21-24E.


With a target to become net debt free by FY24E and expected RoCE of 15%+, we remain positive on the company and maintain BUY rating. Valued at Rs 8,000 i.e.16.5x FY23E EV/EBITDA.

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