On July 3, UltraTech Cement rose per cent as its decent sales volume growth stimulated investors. At 9:19 am, the company’s shares were trading at Rs 8484.2, up 2.3% on the BSE.

The combined sales of UltraTech Cement rose 20% YoY to 29.96 million tonnes (MT) in the quarter ended June 2023. The company shaped 25.04 MT of cement in the April-June quarter last year. This is insightful of a strong demand trend.

Though, the combined sales volume fell 5% sequentially. The Aditya Birla Group’s aggregate sales volume in India also rose 20% YoY but fell 5% QoQ to 29.01 MT in Q1 of FY24.

UltraTech Cement’s capacity utilisation mounted at around 90% for the quarter. Amid strong demand, cement prices were largely range-bounded, highlighting Citi has a ‘buy’ call on the stock with a target price of Rs 9,050. The foreign brokerage firm said that better cost structures could swing near-term profitability dynamic forces.

Even Axis Securities has introduced coverage on UltraTech Cement with a ‘buy’ reference and a target price of Rs 9,350.

UltraTech Cement is India’s principal manufacturer of ready-mix concrete, grey cement, and white cement. Excluding China, it is also the world’s third-largest cement producer and commands a robust market share of 22% in the Indian cement industry.

The domestic brokerage firm stated capacity enlargement and a favourable demand milieu would drive growth for the UltraTech while easing input costs with cost optimisation measures could improve margins.