UltraTech Cement shares rose marginally to Rs 11,639 per share on March 27. The company announced the successful launch of multiple brownfield expansions across India, further adding to its production capacity.
In the past month, the stock of this cement giant has jumped 14 percent, significantly outperforming the benchmark Nifty 50 index, which registered a gain of 6 percent during the same period.
UltraTech Cement has started operations at its Maihar facility in Madhya Pradesh with one of the two planned cement mills (2.7 MTPA) having a clinker capacity of 3.35 million tonnes per annum (MTPA). The second grinding mill is scheduled to be commissioned in the first quarter of financial year 2025-26 (Q1 FY26).
UltraTech Cement said in a regulatory filing, “We are pleased to announce the commissioning of brownfield clinker capacity of 3.35 mtpa along with one of the two cement mills with 2.7 mtpa capacity at our Maihar unit in Madhya Pradesh.
The second grinding mill is expected to be commissioned in the first quarter of FY26.” In addition, UltraTech has completed brownfield expansion of its grinding units at Dhule (1.2 mtpa) in Maharashtra and Durgapur (0.6 mtpa) in West Bengal. The company has also launched its first bulk terminal in Uttar Pradesh, strategically located at Lucknow, with a handling capacity of 1.8 mtpa. As a result of these expansions, UltraTech’s total domestic grey cement production capacity has now reached 183.36 mtpa, while its overall global capacity including international operations has increased to 188.76 mtpa.
Recently, UBS upgraded its rating on UltraTech Cement, and set a target price of Rs 13,000. The upgrade, along with a positive outlook on other select cement stocks, was driven by UltraTech’s strong execution capabilities even in challenging market conditions, as well as its industry-leading growth and profitability.
Analysts at the research firm noted that they had maintained a negative stance on the cement sector since July 2023, due to a slowdown in demand and intensification of price competition following the entry of the Adani Group into the market. However, now that these risks have been largely factored in, analysts expect earnings to bounce back in financial year 2025-26 (FY26).
