UltraTech Cement (ULTRACEMCO) nudged up 3% to ₹11,060 on the NSE, while BSE traded at ₹11,059.90, after HSBC’s research team lifted its target to ₹14,200, a 29% premium over Friday’s close of ₹11,014.
HSBC credits the company’s industry‑leading profitability and volume growth as key drivers, noting that September cement price hikes will counterbalance higher variable costs and keep margins on track.
The stock has fallen 17% from its 52‑week high, and its enterprise‑value‑to‑EBITDA multiple has dropped from 26× to 13.7×, a correction that HSBC argues is not warranted given UltraTech’s scale and pan‑India presence.
Consensus among 42 analysts is overwhelmingly bullish: 38 “Buy” ratings, two “Hold”, and two “Sell”, with a 12‑month target of ₹13,956, which translates to a 27% upside from Friday’s close.
HSBC projects the firm will continue to outpace sector growth, and the premium should hold as UltraTech leverages its network and scale. Traders should watch the earnings release on 15 October for further clues.