Prabhudas Lilladher keeps Buy on UltraTech Cement with Rs 14,623 target
Prabhudas Lilladher keeps its Buy rating on UltraTech Cement after second-quarter operating results fell short of expectations on higher fuel costs.
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what happened
According to a Prabhudas Lilladher research report published by Moneycontrol.com, UltraTech Cement posted second-quarter FY27 operating results below expectations. The main reason was a sharp rise in fuel costs, with pricier petcoke and higher diesel lifting freight expenses. Volumes still climbed 13% year on year to 38.2 million tonnes, and net sales realisation rose 2.2% quarter on quarter. Operating EBITDA per tonne came in at Rs 974.
Management expects further price increases over the coming months, with the full effect of recent hikes showing up in third-quarter FY27 earnings. The analysts kept their EBITDA target of Rs 1,400 per tonne for March 2028.
why it matters
For markets, the note points to Indian cement producers trying to pass rising input costs on to buyers through higher prices. The outlook depends on whether price gains can offset fuel and freight pressure, and the target relies on that assumption. The report covers one company, so its relevance for the broader market is limited.
tags
instruments
sources
- Buy Ultratech Cement; target of Rs 14,623: Prabhudas Lilladher — moneycontrol.com, 21 October 2026 at 04:21 UTC
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