Indian cement makers gain as UBS calls end of rough patch, upgrades stocks

Ultratech Cement

25/03/2025 04:16

Updates with shares

** UltraTech Cement ULTC.NS, Dalmia Bharat DALB.NS and Adani group-owned Ambuja ABUJ.NS and ACC ACC.NS up 1.5%-3%

** UBS says end is near for rough patch in Indian cement sector on FY25 demand slowdown, competition from Adani entities

** Upgrades UltraTech to 'buy' from 'neutral', Ambuja and Dalmia Bharat DALB.NS to 'buy" from 'sell'; keeps ACC at 'buy'

** UBS sees demand bounce FY26 due to pick-up in government capex, policy support, housing upcycle, improving rural outlook

** Estimates core profit CAGR of 18%-43% over FY2025-27

** Expects sectoral consolidation to continue, with market leaders UltraTech and Adani's Ambuja, ACC to have upper hand

** ACC down ~5% YTD, while other 3 are off under 1%; ACC's F12M PE is 17x, while other 3 at at 30-35 -LSEG data

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))