Here are five key takeaways from the UltraTech earnings call and whether one should buy or sell the stock

The management of UltraTech Cement Ltd., India's largest cement company expects further price hikes after the festive season and also reiterated its commitment to the ₹1,400 Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) per tonne target by the end of financial year 2028 during its post-earnings conference call.

Here are five key takeaways from the earnings call:

Price Hikes Likely

The management of UltraTech Cement said that spot prices have already gone up by 5% compared to the average price in the second quarter and further hikes are likely post the festive season.

EBITDA Per Tonne Guidance Maintained

The management has reiterated that it will manage to maintain its EBITDA per tonne guidance of ₹1,400 by the exit of the fourth quarter of financial year 2028. EBITDA per tonne at the end of the September quarter stood at ₹974.

Market Share Gains Will Continue

According to the UltraTech management, the next phase of organic expansion will be announced soon and they also reiterated their financial year 2027 capex guidance of ₹10,000 crore.

The Debt Picture

UltraTech's net debt-to-EBITDA increased to 1.3 times at the end of the September quarter. However, the management is confident of bringing that level down to less than 1x by March 2027.

Cables & Wires Business

Lastly, UltraTech expects its wires and cables business to scale ahead of its initial expectations.

The management has also increased its financial year 2030 revenue target from the business to ₹1,600 crore to ₹1,800 crore from ₹1,000 crore earlier, driven mostly by higher copper prices. The management also clarified that they have no plans to enter the fans or any other electricals business.

Should You Buy Or Sell UltraTech Shares?

HSBC has maintained its "buy" recommendation on UltraTech with a price target of ₹14,200, stating that while it did report strong volume growth, the sharply higher fuel costs impacted its profitability.

It also alluded to the management stating that further price increases over the next two to three months are possible, given the higher costs.'

JPMorgan is also "overweight" on UltraTech with a price target of ₹12,900. The firm has warned that cost pressures are likely to remain elevated but added that higher prices can help the Indian cement sector reverse the recent underperformance.

A total of 43 analysts are currently covering UltraTech cement, of which 39 have a "buy" rating, while two each have a "hold" and "sell" recommendation. The consensus estimates of price targets implies an upside potential of 28% from current levels.

Shares of UltraTech Cement ended 0.7% lower on Monday after its results announcement at ₹10,650. The stock is down 10% so far this year.