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Ultravolt wires and cables push lifts UltraTech Cement outlook
HDFC Securities expects the Ultravolt segment to contribute about 6% of total revenue over the next five years and raises its UltraTech Cement target price to ₹14,500 per share.
UltraTech Cement shares were lower on Tuesday after the company launched Ultravolt, its wires and cables brand, with short term gains largely erased. Even so, HDFC Securities is positioning the move as a longer term growth driver for the Aditya Birla Group cement maker.
In its note, the brokerage said it sees nearly 25% to 27% upside in UltraTech Cement valuation and raised its price target to ₹14,500, while keeping a Buy rating. The outlook is tied to expectations that the wires and cables business will add roughly 6% of the company’s total revenue over the next five years.
HDFC Securities estimates the Ultravolt segment would account for about 2% of consolidated revenue and turn EBITDA positive in FY29E, with the revenue contribution potentially rising to 6% by FY31E. It also pointed to UltraTech Cement’s distribution network, an expansion plan, and targets that include driving volume growth at about a 9% volume CAGR over FY27 to FY29E.
The brokerage highlighted UltraTech Cement’s ability to sustain market share gains, supported by strong distribution across trade and non trade segments. It also referenced margin efforts amid a volatile fuel price environment, and noted the company has earmarked ₹18 billion of capital expenditure to build 3.5 million KM capacity.
On Tuesday, UltraTech Cement stock closed 1.2% lower at ₹11,050 per share on the BSE, valuing the company at about ₹3,25,620.5 crore. The shares hit an intraday high of ₹11,205 and an intraday low of ₹10.?