UltraTech Cement Q2 Results - IDBI Capital Retains 'Hold' Rating On The Stock; Here's Why

IDBI Capital Report

UltraTech Cement Ltd.'s Q2 FY25 Ebitda came below consensus estimates by 13% and it reported Ebitda/tonne of Rs 725 down by Rs 226/tonne QoQ, mainly due to further decrease in ASP across the country and one offs in employee cost and other expenses.

Company’s efficiency improvement plans are on track and company will achieve the target of reducing opex/t by Rs 300/tonne by FY27.

UltraTech capacity addition plans are intact with installed capacity to reach 157 mtpa by FY25E up 18% YoY and further increase of 17% over FY25-27E.

We have retained our rating to Hold with target price of Rs 11,484 valuing at 18 times FY26E EV/Ebitda.

Demand is expected to improve in H2 FY25 as rural housing and new infra projects awarding has picked up pace.

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