UltraTech Cement: Leading the Charge with a Target of ₹12,650 as Sector Outlook Turns Bullish

Market snapshot: The Indian cement sector is witnessing a strategic pivot as DAM Capital upgrades the industry to a 'Buy' rating. At the forefront of this recovery is UltraTech Cement, the market leader, which has been identified as a top pick with a revised target price of ₹12,650. This bullish stance is predicated on significant price hikes expected to take effect across various regions starting April 2026, aimed at buffering margins against persistent cost inflation.

Summary: DAM Capital upgrades the cement sector to 'Buy', naming UltraTech Cement (ULTRACEMCO) as its top pick with a target of ₹12,650. The upgrade is driven by projected price hikes of ₹30-50 per bag starting April 2026 to restore profitability.

Key Takeaways

• Strategic sectoral upgrade to 'Buy' based on improving pricing power and demand recovery.
• UltraTech Cement targeted at ₹12,650, representing significant upside from current levels.
• Anticipated regional price hikes of ₹30-50 per bag to offset fuel and logistical cost inflation.
• Market leadership position allows UltraTech to absorb inorganic growth and maintain margin resilience.

SAHI Perspective

UltraTech's dominant market share (~25% in India) provides it with unmatched operational leverage. By spearheading price hikes in an inflationary environment, the company is effectively protecting its EBITDA per tonne, which has shown steady improvement. The integration of Kesoram and India Cements assets further consolidates its supply-side control, making the ₹12,650 target a reflection of both fundamental strength and strategic consolidation.

Closing Insight

As infrastructure spending remains a core government priority, UltraTech's capacity leadership and pricing discipline position it as the primary beneficiary of the sector's next growth leg.

High Performance Trading with SAHI.