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UBS has upgraded its ratings on domestic cement stocks, raising Dalmia from 'Sell' to 'Buy' and maintaining 'Buy' on ACC, citing strong earnings growth expected between FY25 and FY27. The firm also upgraded UltraTech Cement and Ambuja Cement, with price targets indicating potential upsides of 14-20%. Despite a previous negative outlook due to competition and demand slowdown, analysts now anticipate an earnings upcycle starting in FY26.
Ultratech Cement's share price rose by 3.20% following an upgrade to 'buy' by UBS, which also raised target prices for several cement stocks. The brokerage anticipates increased market share for top manufacturers and expects demand to rise due to housing and government spending. Despite a 17% decline in net profit year-on-year, the outlook for the sector remains positive amid ongoing consolidation.
UBS has upgraded UltraTech Cement's stock rating from Neutral to Buy, raising the price target to INR13,000 from INR9,000. The upgrade is attributed to the company's strong execution, advantageous market position, and expected growth in volume and capacity shares, alongside a healthy balance sheet and potential for further expansion through mergers and acquisitions. UBS forecasts significant EBITDA growth rates of 31% from FY25E to FY27E and 14% from FY27E to FY30E, reflecting confidence in UltraTech's future performance.
UBS has upgraded Ambuja Cements' stock rating from 'Sell' to 'Buy' and raised its target price from INR475 to INR620, citing improved operational capabilities and growth prospects. The firm expects Ambuja to become India's fastest-growing cement company from fiscal years 2025 to 2028, with market share projected to rise significantly by fiscal year 2030. Despite current margin lagging, UBS anticipates substantial EBITDA growth driven by increased volumes and enhanced synergies with its parent company, Adani.
UBS has upgraded Ambuja Cements to "Buy" from "Sell," raising the target price to INR 620 from INR 475, citing improved operational capabilities and growth prospects. The company is expected to achieve a capacity target of 140 million tons per annum by fiscal 2028, with significant margin expansion anticipated in the medium term.Analysts forecast Ambuja Cements to be the fastest-growing cement company in India from fiscal 2025 to 2028, with market share increasing to 18% in demand and 16% in capacity by FY 2030. Consolidated EBITDA is projected to double between FY 2025 and FY 2027, driven by substantial volume increases.
UBS has upgraded its outlook for the cement sector, predicting an earnings upcycle in FY26, with UltraTech Cement and Ambuja Cement identified as top investment picks. Additionally, brokerage firms UBS and Motilal Oswal have highlighted strong growth prospects in the cement, renewable energy, and beverage sectors for the coming year.
Indian cement stocks, including UltraTech Cement, Dalmia Bharat, and Adani's Ambuja and ACC, have risen by 1.5%-3% following UBS's upgrade of their ratings, signaling an end to the sector's rough patch. UBS anticipates a demand rebound in FY26 driven by increased government spending, housing upcycle, and improved rural conditions, projecting core profit growth of 18%-43% from FY2025-27. While ACC has seen a ~5% decline year-to-date, the other three companies remain stable, with market leaders expected to benefit from ongoing sector consolidation.
UBS has upgraded UltraTech Cement, Ambuja Cements, and Dalmia Bharat to "buy," citing a rebound in demand after a challenging fiscal year 2025. The firm raised UltraTech's price target to 13,000 rupees and forecasts an 18%-43% core profit CAGR for these companies from FY2025-27, driven by increased government spending and a housing upcycle. Despite recent share declines, market leaders are expected to benefit from ongoing sector consolidation.
Goldman Sachs downgraded Polycab India Ltd to "neutral" from "buy," cutting its price target to ₹5,005 from ₹6,510, while also reducing KEI Industries' target to ₹3,130 from ₹3,780. The firm remains positive on India's cables and wires sector but is cautious due to increased competition and supply build-up. Following UltraTech Cement's entry into the market, other brokerages have also adjusted their price targets for both companies.
Goldman Sachs has noted increased competition in the cables and wires sector, particularly following Ultratech Cement's entry. The firm downgraded Polycab to 'Neutral' with a target price of Rs 5,005 and KEI Industries to a target of Rs 3,130, while remaining optimistic about near-term demand and export potential. Analysts suggest Ultratech's aggressive pricing strategy could disrupt the market and negatively impact existing players' margins.
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brokerage upgrades cement stocks amid anticipated earnings growth and industry tailwinds
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UltraTech Cement Limited
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Dalmia Bharat Limited
IND
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01:44 26.03.2025
Ultratech Cement shares rise after UBS upgrade to buy rating
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ubs upgrades ultratech cement to buy with target raised to inr 13000
06:43 25.03.2025
ubs upgrades ambuja cements to buy raises target to inr620
06:42 25.03.2025
ubs upgrades ambuja cements to buy raises target price to inr 620
06:33 25.03.2025
ubs upgrades cement sector outlook with ultraTech and ambuja as top picks
06:09 25.03.2025
Indian cement stocks rise as UBS predicts sector recovery and upgrades ratings
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UltraTech Cement Limited
AMBUJA CEMENTS LTD
Dalmia Bharat Limited
IND
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05:16 25.03.2025
ubs upgrades cement stocks as demand rebounds in india
04:33 25.03.2025
Goldman Sachs downgrades Polycab and KEI Industries amid rising competition
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Polycab India Ltd.
UltraTech Cement Limited
Tata Motors FUT, March 2025, T
The Goldman Sachs Group, Inc.
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09:48 17.03.2025
goldman sachs notes rising competition in cables and wires sector
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