Giant-cap Cement shares Ultratech Cements and Ambuja Cements are primarily engaged within the manufacturing and sale of Cement and Cement associated merchandise primarily throughout the globe.
India is the world’s second-largest cement producer, contributing over 8 p.c of the worldwide put in capability. In 2023, the nation’s cement market measurement was 3.96 billion tonnes, and it’s projected to develop to five.99 billion tonnes by 2032, with a CAGR of 4.7 p.c from 2024 to 2032. Cement consumption is anticipated to achieve 450.78 million tonnes by the tip of FY27.
1. Ultratech Cements Ltd
The shares of Ultratech Cements Ltd, with a market capitalization of Rs 2.91 Lakhs Crore, had been buying and selling at Rs 10,089 per share which was 3.43 p.c decrease than the earlier closing value of Rs 10,448. The shares generated a return of 54 p.c previously three years, and a return of 136 p.c previously 5 years respectively.
The corporate reported a slight enhance in income from operations of two.7 p.c from Rs 16,739.97 Crores in Q3FY24 to Rs 17,193.33 Crores in Q3FY25. Nevertheless, its Internet Income declined by 17 p.c from Rs 1,774.78 Crores to Rs 1,473.51 Crores over the identical interval. Although the Q3 numbers had been muted it beats the road’s estimates.
UltraTech achieved 73 p.c capability utilization, a ten p.c YoY home gross sales quantity development, and a 13 p.c YoY discount in vitality prices. With the India Cements acquisition, its cement capability reached 171.11 mtpa. Following ongoing expansions and the Kesoram Cement acquisition, the corporate goals to exceed 200 mtpa capability by FY27.
International brokerage Morgan Stanley maintained its ‘chubby’ ranking on UltraTech Cement, citing the corporate’s sturdy capability growth, price effectivity, and market management as key components for future development. The brokerage set a 12-month goal value of Rs 13,650 for UltraTech Cements Ltd.
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2. Ambuja Cements Ltd
The shares of Ambuja Cements Ltd, with a market capitalization of Rs 1.14 Lakhs Crore, had been buying and selling at Rs 465 per share which was 1.02 p.c decrease than the earlier closing value of Rs 470. The shares generated a return of 52 p.c previously three years, and a return of 124 p.c previously 5 years respectively.
The corporate reported a marginal enhance in income from operations of 4.5 p.c from Rs 8,052 Crores in Q3FY24 to Rs 8,415 Crores in Q3FY25. And its Internet Income jumped by 140 p.c from Rs 1,091 Crores to Rs 2,621 Crores over the identical interval. The Profitability determine additionally contains Authorities grants of Rs 913 Crores on this quarter.
The agency has a capability of 97 MTPA, with 22 MTPA added within the final 24 months. With ongoing tasks, capability is predicted to achieve 104 MTPA by the tip of the present fiscal yr, 118 MTPA by FY’26, and 140 MTPA by FY28. Varied Capex and Opex initiatives are in place to additional improve price management, with a goal of a further 15 p.c discount by FY28.
Morgan Stanley anticipates continued demand development within the cement sector within the coming months, driving sustained value will increase. The brokerage has set a 12-month goal value of Rs 590 for Ambuja Cements.
Cement producers acknowledged that the elevated spending on large-scale housing and infrastructure tasks introduced within the Funds 2025 by Finance Minister Nirmala Sitharaman will enhance demand for building supplies and allow capability growth. The Cement Producers’ Affiliation views the Funds as presenting a powerful imaginative and prescient for India’s growth by way of strategic investments in folks, the financial system, and innovation.
Written By Adhvaitha Nayani
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