Prabhudas Lilladher has issued a buy rating on Ultratech Cement with a target price of ₹13,835 in its research report dated June 5, 2026. According to the brokerage's analysis, the company remains well-positioned despite adverse macroeconomic conditions, with the stock currently trading at an EV of 16.8x/14.6x FY27E/28E EBITDA. The target price is based on valuing the company at 18x EV of March 2028E EBITDA.
The brokerage believes that price hikes undertaken by the cement industry are largely offsetting cost inflation for the near term. As reported by Prabhudas Lilladher, incremental cost inflation would necessitate marginal price hikes, which are expected to be implemented in Q2FY27E. Recent price hikes have been well accepted across markets, including some rollbacks, with the company maintaining its pricing power in the current environment.
Ultratech Cement remains relatively insulated from Middle East disruptions due to its reliance on US pet coke and coal. According to the research report, ongoing initiatives such as RE share expansion (just ~8% of project cost), domestic fuel mix optimization, and consistently reducing lead distance continue to support the company's cost competitiveness. The company's integration and efficiency improvement projects at India Cements and Kesoram remain on track, with India Cements' profitability improving as planned towards ₹1,000/t by end FY28E.
Prabhudas Lilladher expects Ultratech Cement's volume/EBITDA to deliver a CAGR of 11%/17% over FY26-28E. The brokerage remains constructive on domestic cement demand, with industry growth currently at ~6-7%, supported by infrastructure spending and housing activity. As per the company's channel checks, recent price hikes have been well accepted across markets, indicating strong demand fundamentals.
