UltraTech to strengthen its core business

Cement demand rebounds; volume to grow 4% y/y in FY25

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WHILE ULTRATECH CEMENT is diversifying into a new business segment—Cables and Wires (C&W)—its core focus remains grey cement. The company sees C&W as a strategic extension of its construction value chain, allowing it to expand its consumer reach. Simultaneously, UltraTech Cement continues to reinforce its leadership in cement through both organic and inorganic expansions beyond FY27. We reiterate our BUY rating on the stock.

Grey cement is the core business and will remain in its high-growth phase. Cement demand continues to be strong, backed by infrastructure development and the real estate segment. India's per capita cement consumption stood at 295kg in FY24, while cement consumption in Western countries peaked at 600–700kg/capita before settling at 500kg.

UltraTech Cement's domestic grey cement capacity is expected to reach 182.8mtpa by FY25-end, accounting for 28% of the industry's capacity. The capacity will further grow to 209mtpa by end-FY27.