Motilal Oswal has given Buy recommendation for UltraTech Cement recommended buy rating on the stock with a target price of Rs 7825 in its research with a target price of Rs. 7825 in its research report issued on Apr 29, 2022

Motilal Oswal’s research report on UltraTech Cement

UltraTech (UTCEM)’s operating performance was marginally ahead of our estimates led by higher volumes/lower opex. EBITDA was at INR30.7b v/s estimated INR29.3b and OPM was at 19.5% v/s estimated 18.8%. Adjusted PAT (adjusted for tax reversals) was at INR14.8b v/s estimated INR14.5b. -The management indicated that demand in Apr’22 is better than last year and current average price is up 9% v/s 4Q average. Average coal/petcoke price is likely to increase 10% QoQ in 1QFY23 (lower than our estimates). UTCEM is expected to benefit from capacity expansions (19.5mtpa in FY22/23E) and cost saving initiatives (increase in WHRS/solar power capacities). We largely maintain FY23/24 estimates and expect energy cost to reduce in 2HFY23E. We maintain BUY rating on the stock.


The stock trades at 16.3x/12.6x FY23E/FY24E EV/EBITDA (v/s its 10-year average one-year forward EV/EBITDA of 15x). We value UTCEM at 15x FY24E EV/EBITDA to arrive at our TP of INR7,825. We reiterate our Buy rating.

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