UltraTech Cement shares rise over 2% on strong Q4 results. Should you buy, sell or hold the stock?

Its revenue from operations increased 9% YoY to Rs 20,419 crore in the fourth quarter.

The company's Board has also recommended a dividend of Rs 70 per share, which is 700% on the face value for the financial year 2023-2024.

EBITDA for the quarter increased 33% YoY to Rs 4,250 crore. The company posted domestic operating EBITDA/Mt of Rs 1,185, which is higher by Rs 125/Mt on a yearly basis and lower by Rs 23/Mt quarter-on-quarter (QoQ).

Domestic sales grew 11% YoY in the January-March period with a capacity utilisation of 98%.

Should you buy, sell or hold UltraTech Cement's stock? Here's what analysts say:

BofA

BofA Securities maintained a Buy rating on UltraTech Cements and raised the target price to Rs 11,400 from Rs 10,000 earlier.

The March quarter delivered a positive surprise in volumes. Efficiency levels provide scope for margin expansion.

Kotak Institutional Equities

Kotak Institutional Equities maintained its 'Sell' rating on UltraTech Cement but raised the target price to Rs 7,200 from Rs 7,000.

"We have increased EBITDA estimates by 0.8%/2.3% for FY2025/26E, led by lower costs and higher volumes. Our Fair Value increases to Rs 7,200 (from Rs 7,000), mainly led by roll-over to June 2026E. We expect UTCEM to continue to outperform peers on operational parameters and is best placed with superior growth visibility and execution," Kotak said.

The brokerage maintained ‘Sell’ on rich valuations at 16.1X EV/EBITDA or US$208/ton EV FY2026E.

Motilal Oswal

Motilal Oswal reiterated its 'Buy' rating on UltraTech Cement with a target price of Rs 11,500.

"We largely maintain our estimates and reiterate our Buy rating on the stock, given its leadership position in the industry, robust expansion plans without leveraging the balance sheet, and structural cost improvement measures. We value UTCEM at 18x FY26E EV/EBITDA to arrive at our TP of Rs 11,500," Motilal said.

ICICI Securities

ICICI Securities retained its 'Hold' rating on UltraTech Cement with the unchanged target price of Rs 10,411.

"We largely retain estimates for FY26 giving credence to management’s new resolve to prune operating cost by Rs 200-300/t over FY25-FY27. With current valuation of 16x FY26E EV/EBITDA (at par with our target multiple) fully factoring in these benefits, we retain HOLD (TP unchanged at Rs 10,411)," the brokerage said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)