ultratech cement shareImage Credit source: ai generated
There is big news for those investing in the stock market. Shares of UltraTech Cement, the giant company of Aditya Birla Group, may see a great rise in the coming days. If you are thinking of including any strong stock in your portfolio, then this latest report of well-known brokerage house Motilal Oswal can be useful for you. Expressing confidence in the strong fundamentals of this cement company, the brokerage firm has maintained the ‘buy’ rating. Apart from this, the company has also announced the biggest ever dividend for the investors, due to which the discussion about this stock has become quite intense in the market.
Will the stock cross ₹13,800?
Motilal Oswal has set a huge target price of Rs 13,800 for UltraTech Cement. At present the price of this share is trading around Rs 11,582.80 on Bombay Stock Exchange (BSE). This simply means that at the current price investors can get strong returns of up to 19 percent. Let us tell you that the brokerage team recently visited the Baga plant in Himachal Pradesh of this company with a huge market cap of more than Rs 3.41 lakh crore. This new target price has emerged after long and detailed discussions with the management team there.
management masterplan
The company is building a strong foundation not only for today but also for the future. According to the brokerage, the strategy presented by the management is very encouraging. The company continues to dominate the cement industry and its market share is at the level of 31.4 percent, while in terms of capacity it is 27.8 percent. The company has set a target of taking its Return on Capital Employed (ROCE) above 15 percent by the last quarter of the coming financial year 2028. Apart from this, there is also a big plan to increase the EBITDA per tonne to Rs 1,400. The company is also expanding its retail network aggressively. At present the share of ‘UBS Stores’ in the total volume is 21 percent, which has been targeted to increase to 40 percent in future.
Tremendous jump in profits
The strong balance sheet of the company is also a testimony to this growth. In the quarter from January to March 2026, the company’s net profit has increased by 20 percent to the level of Rs 2,982.76 crore. In the same period a year ago, this figure was Rs 2,482.04 crore. Not only the profit, but the revenue from operations has also increased by about 12 percent. Talking about the entire financial year 2025-26, the total profit has touched the amazing level of Rs 8,165.64 crore.
Amidst these strong results, the company has also taken special care of its shareholders. The board has decided to pay a hefty dividend of Rs 240 on each share with a face value of Rs 10. This is the largest dividend ever given to investors in the history of UltraTech. The stock has jumped by 8 percent in the last one month alone, and on the basis of strong business strategy, it can provide excellent opportunities for investors to earn good earnings in future also.
Also read- This company that distributes housing loans opened its treasury, you will get a bumper dividend of ₹ 10 on 1 share!
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
