UltraTech Cement Growth Trajectory Intact, Share Price Rally Expected to Continue

UltraTech Cement, India’s largest cement producer, saw its stock price surge 29% last year on robust market demand. Despite trading near 52-week highs, analysts see further upside given strong growth fundamentals.

Motilal Oswal projects a 15% rally to ₹10,100 based on UltraTech’s capacity expansion plans and favorable sector dynamics. UltraTech aims to boost annual cement capacity by 45% to 182 million metric tonnes (MMT) by fiscal 2027. This sets the pace for a 9.5% capacity compound annual growth rate through 2027.

Post-pandemic demand remains resilient at 9% CAGR over fiscal 2021-2023, led by urban housing, infrastructure projects and recovery in real estate sector. Growth momentum should persist with 7-8% CAGR forecast through 2028 on sustained construction activity.

Additionally, UltraTech is enhancing sustainability practices by increasing environmental, social and governance (ESG) investments. This further cements its long-term growth potential.

In summary, UltraTech’s market position, ambitious capacity additions matched by strong volume tailwinds and ESG commitment underpin its attractive growth outlook. Share price appears primed for further gains on these solid fundamentals.

I have aimed to sharpen the focus on UltraTech’s future prospects while condensing details. Please let me know if any further improvements are needed or if any key information was missed.

Kiara

Kiara is a passionate writer studying Mass Communication. She loves everything about the entertainment industry, from movies and series to reading novels. You'll often find her with a book in hand or indulging in binge-watching sessions. Writing is her dream, and she's determined to make her mark in the world of literature.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Dark mode