Shares of UltraTech Cement opened over a percent higher at ₹10,200 in early trade on April 3 after the company said it would set aside ₹32,400 crore for ongoing capital expenditure plans over the next three years.
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The Aditya Birla group-owned company also revealed the commissioning of two new cement units, in Chhattisgarh and Tamil Nadu, bringing its total capacity to 151.6 metric tonnes per annum (MTPA), compared to its nearest rival Adani Group’s 76.1 MTPA as of end-2023.
UltraTech has subsequently added the next 50 MTPA in less than five years with an investment of around ₹32,000 crore, the company said in an exchange filing.
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“Over the past two decades, UltraTech has grown 11 times, far outpacing the industry growth of four times,” the Aditya Birla Group company stated.
Furthermore, UltraTech said it is also in the process of closing its $645 million acquisition of Kesoram Cement, with a total capacity of 10.75 MTPA.
“With a mix of integrated cement plants, grinding units, bulk terminals across 59 locations in India along with 307 ready mix concrete plants, UltraTech’s scale and capacity footprint is unparalleled. And this scale will further enable UltraTech to service India’s growing demand for cement across the country,” said Kumar Mangalam Birla, chairman of Aditya Birla Group.
Global broking firm Morgan Stanley is bullish on UltraTech Cement. It maintains an ‘Overweight’ rating on the stock, saying UltraTech’s size, along with its pan-India presence and balance-sheet strength, makes it best positioned in the industry.
UltraTech Cement continues to be focused on capacity market share gains as it remain key to volume market share gains, the brokerage said in its note.
The foreign brokerage has a price target price of ₹12,000 on the counter, suggesting an upside of nearly 20% from Tuesday’s closing price.
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At 11:24 am, UltraTech shares were trading 0.67% higher at ₹10,105 apiece on the NSE. The stock has gained nearly 22% in the last six months while its down over 3% so far this year.
