Even though the financial results of UltraTech Cement in the December quarter of FY 2025 may not have been much better than the same quarter of FY 2024, the company has performed better than market estimates. The company’s profit in the December quarter declined by 17.4 percent to Rs 1,469.5 crore compared to Rs 1,777 crore in the same quarter a year ago.
However, UltraTech Cement’s revenue increased by 2.7 percent year-on-year to Rs 17,193.3 crore in the third quarter of FY 2025 from Rs 16,740 crore in the third quarter of FY 2024. EBITDA at the operating level declined by 11.3 per cent year-on-year to Rs 2,887.1 crore in Q3FY24 from Rs 3,254.6 crore in Q3FY24.
On a quarterly basis, Ebitda margin declined from 19.4 percent in the year-ago quarter to 16.8 percent in the December quarter of FY25. UltraTech Cement’s third quarter results were better than Bloomberg analysts’ estimates of profit of Rs 1,323 crore and revenue of Rs 17,129 crore.
Shares of UltraTech Cement had risen by 1.61 per cent to reach a high of Rs 11,606.10 in the day’s trade and finally closed at Rs 11,287.65 with a decline of 1.18 per cent. Sensex fell 0.43 percent to close at 76,190.45. Many brokers remain bullish on UltraTech Cement after the quarterly results.
Nuvama analysts had projected 11 per cent year-on-year growth in consolidated sales in Q3FY25, which is higher than the industry growth of 5 per cent. Ebitda estimates increased by 8 percent due to better realizations of the company and Ebitda per tonne increased by 31 percent on quarterly basis to Rs 951.
Company management expects domestic capacity to reach 183 million tonnes by the end of FY 2025 and 207 million tonnes by FY 2027, from 141 million tonnes at the beginning of FY 2025. Nuvama has increased the price target for this stock from Rs 11,238 to Rs 11,574 while maintaining ‘Hold’ rating.
JM Financial has maintained its FY2025-27 estimates and March 2026 price target at Rs 13,000. The brokerage has reaffirmed its ‘Buy’ rating on UltraTech Cement, calling it a favorite bet in the sector. Keeping in mind the improvement in margins due to improvement in sales and lower costs, Goldman Sachs has also maintained its Buy rating and raised its price target to Rs 12,580 from Rs 12,460.
Citi has also maintained Buy rating on the stock and increased the price target to Rs 13,100 from Rs 12,500. According to reports, Citi has raised the price target of this stock with an estimated annual growth rate of 12 percent during financial year 2025-27. Macquarie, JP Morgan, Dam Capital, Jefferies have also adopted a positive view on this stock.