UltraTech Cement - Well-Positioned To Capitalise On Demand Tailwinds; Maintain Buy: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Axis Securities Report.The industry is facing short-term challenges on account of higher competitive intensity, soft demand, and lower cement prices. However, we remain positive on UltraTech Cement Ltd. from a medium to long-term perspective as its demand drivers remain intact.The industry is undergoing consolidation, and UltraTech, being the largest player with an estimated market share of 24%-25%, is expected to be a major beneficiary of this consolidation, benefiting from economies of scale, improved operating parameters, and supply chain efficiencies.We expect the company to grow its volume/revenue/Ebitda/adjusted profit after tax at 11%/11%/20%/23% compound annual growth rate over FY24-FY26E respectively. This growth will be driven by robust demand, upcoming new capacity, ramping up of recently commissioned capacity, the benefit of lower commodity prices, a higher blending ratio, and an increasing share of green energy.We value the stock at 19.5 times FY26 enterprise value/Ebitda, arriving at a target price of Rs 12,450 per share, implying an upside potential of 10% from the current market price..Click on the attachment to read the full report:.Nifty, Sensex End Little Changed After Muted Session; TCS, Infosys Lead: Market Wrap.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

UltraTech Cement - Well-Positioned To Capitalise On Demand Tailwinds; Maintain Buy: Axis Securities

The industry is undergoing consolidation, and the company, being the largest player with an estimated market share of 24%-25%, is expected to be a major beneficiary, says the brokerage.

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UltraTech Cement - Well-Positioned To Capitalise On Demand Tailwinds; Maintain Buy: Axis Securities

The industry is undergoing consolidation, and the company, being the largest player with an estimated market share of 24%-25%, is expected to be a major beneficiary, says the brokerage.

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