CLSA upgraded UltraTech Cement to "high conviction outperform" from "accumulate" and raised its price by 8.9% to ₹14,700 per share from ₹13,500 apiece. This implies an upside potential of 16.9% from Tuesday's closing price.
The brokerage has also upgraded Shree Cement to "outperform" from "hold" and raised its target price by 5% to ₹33,500 per share from ₹31,900 apiece. This implies an upside of 13.3% from its last close.
Ramco Cements has been upgraded "hold" from "reduce" with a target price of ₹1,045 per share, which is near its previous close of ₹1,040 apiece.
CLSA maintained its "outperform" ratings on Ambuja Cements and Dalmia Bharat with price targets of ₹670 per share and ₹2,650 apiece, an upside of 16.8% and 9.1% from their previous closing price, respectively.
CLSA said it is more constructive on these cement stock as it sees an uptick in their profitability, resulting in an upgrade to their estimates. This will be, helped by pricing discipline and the elimination of
The brokerage said UltraTech Cement is the best placed to benefit due to its cost savings initiatives and organic capacity expansion.
On Tuesday, brokerage firm HSBC raised its price target on five cement stocks by up to 45%, with UltraTech Cement being its top pick.
| Company | Buy | Hold | Sell |
| UltraTech Cement | 38 | 4 | 4 |
| Shree Cement | 18 | 18 | 9 |
| Ramco Cements | 13 | 11 | 12 |
| Ambuja Cements | 36 | 7 | 3 |
| Dalmia Bharat | 22 | 9 | 9 |
The five cement stocks were trading 0.8% to 3.3% higher around 10.10 am on Wednesday.
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