1 week Ago By Systematix Institutional Equities
UltraTech continues to make strong progress on cost optimization. Renewable energy capacity increased to 752 MW in FY25 from 612 MW a year ago, with a target of reaching 2.1 GW by FY27, covering ~30% of total energy needs.
Investment in waste heat recovery systems (WHRS) is ongoing, with Rs 10 bn being deployed in projects expected to pay back within three years. Management remains committed to delivering Rs. 300+/tonne Ebitda improvement in core operations, of which Rs 86/tn has already been achieved.
For newly acquired entities, India Cements is targeted to reach Rs 500/tn Ebitda by FY26, Rs 800/tn by FY27, and Rs. 1,000+/tn by FY28, while Kesoram’s Ebitda/tonne is expected to cross Rs 1,000 by Q4 FY26E.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.Systematix ReportUltraTech Cement Ltd. continues to demonstrate robust operational performance and strategic advancements.
The company is progressing steadily with its integration of recently acquired assets, aiming to align their operational efficiency with UltraTech's over the next 24 months. Net debt/Ebitda remains comfortable at 1.16 times, and management aims to deleverage further to 0.
5x over the next few years. We maintain a positive outlook on UltraTech Cement's long-term growth potential, driven by its strong market leadership, disciplined cost management, and ambitious capacity expansion plans. We reiterate a Buy rating on the stock, with a target price of Rs 14,038, based on a 19 times EV/Ebitda multiple for FY27E.
Click on the attachment to read the full report:UltraTech Cement Q4 Results: Profit Rises 10%, Meets EstimatesDISCLAIMERThis 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.
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