UltraTech Cement shares gain 2% after Q1 results. Why Nuvama, other brokerages raised target?

Shares of cement major UltraTech Cement gained 2% to their day's high of Rs 12,125 on the BSE on Tuesday after multiple brokerages raised their target prices for the stock following its Q1 earnings and strong guidance.The company on Monday reported a 17% year-on-year (YoY) increase in its consolidated net profit to Rs 2,599 crore for the first quarter of FY27, from Rs 2,226 crore in the corresponding quarter of the previous financial year.

The firm’s revenue from operations, meanwhile, increased 16% YoY to Rs 24,648 crore during the quarter under review.UltraTech Cement also provided an update on its foray into the wires and cables business, saying it is preparing for a launch in the third quarter of the current fiscal.

The company plans to invest Rs 1,800 crore in the business, of which Rs 888 crore had been committed as of June 2026.Nuvama on UltraTech Cement share priceNuvama said UltraTech Cement is consistently gaining market share while exhibiting exemplary cost control despite a challenging operating environment.

Trajectory of cement prices and fuel costs will determine stock performance going ahead, according to the brokerage which noted that the company reported a robust performance and strong guidance.Nuvama maintained a ‘Buy’ call on the shares of UltraTech Cement but increased the target price to Rs 15,209 apiece from Rs 14,502 apiece.

The latest target price implies an upside potential of nearly 28% from the stock’s previous closing price of Rs 11,903 apiece on NSE.Also read | UltraTech Cement Q1 Results: Cons profit jumps 17% YoY to Rs 2,599 crore; revenue rises 16%JM Financial on UltraTech Cement share price“The giant keeps growing stronger,” said JM Financial as it increased its target price for the shares of UltraTech Cement to Rs 14,500 from Rs 13,850 while maintaining its ‘Buy’ call.

The latest target price implies an upside potential of nearly 22% upside potential.The domestic brokerage noted that UltraTech Cement’s management reiterated its aim for continued market share gains with double-digit YoY volume growth target for FY27.

The company expects prices to be broadly stable during the monsoon, supported by elevated industry cost pressures.

It also guided its domestic grey cement capacity to reach 207 mt by FY27 and 237 mt by FY28 and aims for incremental capacity expansion beyond FY28.

“We argue UltraTech is poised for structural improvement in return ratios over the next three–four years owing to: i) rising asset turnover; ii) low cost of expansion; and iii) improving profitability.

Factoring in the Q1 FY27 performance, we marginally increase FY27–28 EBITDA by 1–3% and introduce FY29,” JM Financial said, while reiterating UltraTech as its top pick in the sector.Motilal Oswal on UltraTech Cement share priceMotilal Oswal Financial Services said UltraTech Cement’s Q1 earnings were in line with its estimates.

Management remained constructive on the medium-term cement demand outlook, backed by a robust pipeline of infrastructure projects, healthy housing demand, urban redevelopment, and commercial real estate activity,” the domestic brokerage said.While it largely maintained its earnings estimate, Motilal Oswal reiterated its ‘Buy’ call on the shares of UltraTech Cement with a target price of Rs 13,800 apiece, implying 16% upside.Other brokeragesDolat Capital maintained its ‘Accumulate’ rating on the shares of UltraTech Cement, but increased its target price to Rs 13,205 apiece, implying 11% upside potential.

“We have a positive coverage on UltraTech.

Looking at the numbers and assuming there are no one-off or extraordinary items, I would put it in one sentence: the big boy has delivered.

My sense is that cement consumption over the longer term looks quite robust, driven by the scale of infrastructure creation at both the central and state levels.

More importantly, the transformation we are witnessing in the real estate sector is also supporting demand,” Geojit Investments' Gaurang Shah told ET Now.Also read | Strong Q1 sets stage for FY27 growth as UltraTech bets on cables business(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

These do not represent the views of The Economic Times) ...