UltraTech beat Street estimates in Q1FY27, with strong volume growth and stable margins, while management remains confident of sustaining double-digit growth in FY27
Muthuselvaraj M, technical research analyst, Mirae Asset Sharekhan believes that UltraTech Cement stock can gain in the short- to medium-term as momentum indicators are showing strength on the chart.
UltraTech Cement reported a 16.8 per cent increase in net profit for the first quarter to ₹2,599.3 on a year-on-year basis. Revenue for the quarter was up 15.9 per cent to ₹24,648.20 crore.
Revenue from operations rose 15.9 per cent to ₹24,648.20 crore, while domestic sales volumes increased 13.1 per cent and capacity utilisation stood at 81 per cent
Q1FY27 company results: Firms including Indian Overseas Bank, Sobha, Mahindra Logistics, Canara HSBC Life Insurance Company, and Rallis India are also to release their April-June earnings today
On the overall market set-up, Ajit Mishra, SVP - Research at Religare Broking reckons to maintain a 'Buy-on-dips' approach, with a preference for relatively stronger stocks across sectors.
While cement demand remains resilient and volumes are growing, rising input costs, capacity additions and geopolitical risks could weigh on profitability
Strong Q4 performance, rising margins and aggressive capacity expansion plans position UltraTech Cement to sustain growth, aided by robust demand outlook and cost discipline
Firms such as Reliance Industries, Axis Bank, UltraTech Cement, Coal India, Hindustan Zinc, and Varun Beverages are among the major names announcing dividends
Q4FY26 company results: Firms including Adani Total Gas, AU Small Finance Bank, Bajaj Housing Finance, and Mahindra Holidays & Resorts are also to release their January-March earnings today
For cement manufacturers, the primary concern is the sudden spike in energy costs as the industry relies heavily on imported fuel, which is now becoming significantly more expensive
UltraTech Cement has phased out legacy South Indian brands Sankar, Coromandel, and Raasi after acquiring India Cements, as part of a strategy to unify branding and improve quality
Among stock preferences, UltraTech Cement remains its top pick in the large-cap segment for Motilal Oswal, while it maintains a positive view on JK Cement and Dalmia Bharat in the mid-cap space
West Asia tensions may raise fuel and packaging costs for cement firms. Analysts see near-term margin pressure but suggest accumulating large-cap cement stocks.
