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HSBC Reaffirms 'Buy' on UltraTech Cement, Sees 29% Upside Potential
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CNBC TV18•21-09-2026, 11:47
HSBC Reaffirms 'Buy' on UltraTech Cement, Sees 29% Upside Potential
- •HSBC reiterated its "Buy" call on UltraTech Cement with a target price of ₹14,200, implying a 29% upside from Friday's closing price.
- •The brokerage expects UltraTech's industry-leading profitability and volume growth to continue, with recent price hikes offsetting variable cost increases.
- •HSBC dismisses investor concerns about UltraTech prioritizing market share over profitability, citing the company's strong fundamentals.
- •Despite a 17% drop from its 52-week high, HSBC believes UltraTech's valuation de-rating is unjustified given its intact volume growth, profitability, and market share.
- •Analyst consensus shows 38 out of 42 analysts have a "Buy" rating, with a 12-month target price of ₹13,956, indicating a 27% upside.
Key Questions Answered
HSBC reiterated its "Buy" call on UltraTech Cement with a target price of ₹14,200 per share, implying around a 29% upside from its previous closing price.
The divergence is due to the new Closing Auction Session introduced on August 3, where closing prices are determined through a separate 20-minute auction based on supply and demand instead of the previous VWAP methodology.
Out of 42 analysts covering UltraTech Cement, 38 have a "Buy" rating, while two analysts each maintain a "hold" and "sell" rating.
