UltraTech Cement is preparing to launch its own wires and cables (W&C) in Q3 FY27, marking a significant strategic expansion beyond its core cement business. According to reports from NDTV Profit, this diversification move positions the company to capture additional market segments and strengthen its competitive position in the infrastructure materials sector. The company remains one of Nirmal Bang's top picks in the cement sector, highlighting the brokerage's confidence in this strategic expansion.
The brokerage firm Nirmal Bang has maintained its Buy rating on UltraTech Cement with an unchanged target price of ₹13,700 per share, representing a 17x FY28E consolidated Ebitda valuation. As reported by NDTV Profit, the company is expected to achieve an estimated 9% volume CAGR over FY26-28E, supported by its strong distribution network across both trade and non-trade segments. The brokerage believes UltraTech Cement is well placed to sustain market-share gains through this projected volume growth trajectory.
UltraTech Cement is implementing an aggressive capacity expansion plan, targeting growth from 197 million metric tonnes in FY26 to over 240 million metric tonnes by FY28 end/early FY29. According to the brokerage analysis reported by NDTV Profit, this expansion strategy is designed to support the projected volume growth and maintain the company's market leadership position. The steady expansions are expected to drive the estimated volume growth and strengthen the company's competitive position in the cement sector.
The company's margins are expected to improve significantly, with projections of ₹1,337 per MT in FY28E, compared to ₹1,103 per MT in FY26E. As reported by NDTV Profit, this improvement is anticipated to be driven by continued efficiency gains including rising green power adoption, lower lead distances, and falling clinker factors, along with expected cooling in energy costs from H2 FY27 onward. The brokerage expects margins to firm up to ₹1,337 per MT in FY28E from the current levels, supporting the company's profitability trajectory.
UltraTech Cement's Ready Mix Concrete (RMC) segment continues to demonstrate exceptional growth momentum, achieving a 35% revenue CAGR over the past five years. According to the brokerage analysis reported by NDTV Profit, this strong performance maintains the company's leadership position in the RMC segment, providing additional revenue diversification and market presence. The segment's robust growth trajectory of 35% revenue CAGR over the past five years demonstrates the company's ability to maintain its leadership position in this high-growth segment.
