Sharekhan has given Buy recommendation for UltraTech Cement with a target price of Rs. 8000 in its research report issued on Apr 22, 2021

Sharekhan’s research report on UltraTech Cement

Cement industry in general and Ultratech in particular are expected to see weak demand in April as key states have imposed a lockdown as COVID-19 cases rise. Cement price hikes in early April have withstood in the Southern and Eastern regions while there has been Rs. 10-20 per bag correction in a few micro-markets in North and West. The company’s 19.5 mtpa expansion plan at a cost of Rs. 6,527 crore (without affecting de-leveraging plan) to ensure industry outperformance over the next 4-5 years.


We maintain a Buy on Ultra Tech Cement (Ultra Tech) with an unchanged PT of Rs. 8,000 as we envisage that the COVID-led impact on volumes would be short-lived; structural growth drivers for a bounce back are intact.