UltraTech Cement Ltd Share Price Prediction & Financial Analysis: 2025, 2030, 2035, 2050
UltraTech Cement Ltd Share Price Prediction & Financial Analysis: 2025, 2030, 2035, 2050

UltraTech Cement Ltd Share Price Prediction & Financial Analysis: 2025, 2030, 2035, 2050

April 24, 2025
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UltraTech Cement Ltd Share Price Forecast: 2025, 2030, 2035, and 2050

 

UltraTech Cement Ltd, a flagship company of the Aditya Birla Group, is India’s largest cement manufacturer and the third-largest globally (excluding China). With a robust market presence, strategic expansions, and a focus on sustainability, UltraTech is a compelling investment option. This blog provides a share price forecast for UltraTech Cement Ltd for 2025, 2030, 2035, and 2050, incorporating historical CAGR, financial performance, and growth drivers.

UltraTech Cement: Company Overview

Founded in 2000, UltraTech Cement Ltd is headquartered in Mumbai and operates a consolidated grey cement capacity of 183.06 MTPA as of March 2025. The company produces a wide range of products, including Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), ready-mix concrete, and building solutions like wall putty and adhesives. With a market capitalization of approximately ₹3,50,758 crore as of April 2025, UltraTech dominates the Indian cement industry with a 22% share of grey cement capacity.

Historical Financial Performance and CAGR

UltraTech has demonstrated strong financial growth over the years. Based on available data, the stock price CAGR for UltraTech Cement is:

  • 10 Years: 21%
  • 5 Years: 16%
  • 3 Years: 25%
  • 1 Year: 44%

For the financial year 2024, UltraTech reported:

  • Revenue: ₹71,525.09 crore
  • Net Profit: ₹7,005 crore
  • EPS: ₹211.9
  • ROE: 11% (3-year average: 12.2%)
  • P/E Ratio: 55.31
  • P/B Ratio: 5.63

Despite a 17.3% decline in Q3 2024 net profit (₹1,469.51 crore), the company achieved a 2.71% YoY revenue increase and 10% volume growth, driven by infrastructure demand and operational efficiencies.

Share Price Forecast: 2025 to 2050

2025 Forecast

As of April 17, 2025, UltraTech’s share price is ₹11,903.00, with a 52-week high of ₹12,143.90. Analysts project a share price range of ₹12,100 to ₹13,000 by the end of 2025, supported by:

  • Capacity Expansion: UltraTech aims to reach 200 MTPA by FY27, with acquisitions like Wonder WallCare (₹235 crore) and India Cements Ltd.
  • Infrastructure Demand: Government spending on roads, bridges, and housing will drive 7-8% sustainable volume growth.
  • Brokerage Outlook: UBS and JM Financial recommend a “Buy” with target prices of ₹13,000, citing cost efficiencies and market leadership.

Projected CAGR: Assuming a conservative 10% CAGR (lower than the 3-year average of 25%), the share price could reach ₹13,093 by December 2025.

2030 Forecast

By 2030, UltraTech is expected to leverage its expanded capacity and sustainability initiatives. Analysts forecast a share price range of ₹18,600 to ₹20,000, driven by:

  • Global Expansion: Operations in UAE, Bahrain, and Sri Lanka enhance export revenues.
  • Cost Optimization: Investments in green energy (e.g., 75 MWp solar project in Rajasthan) will reduce costs by ₹200-300 per tonne.
  • Market Share: A projected 27% capacity share by FY27 will strengthen profitability.

Projected CAGR: With a 10% CAGR from 2025, the share price could reach ₹21,174 by 2030, aligning with WalletInvestor’s estimate of ₹17,958.84.

2035 Forecast

Looking to 2035, UltraTech’s focus on technological advancements and low-cost expansions will drive growth. Assuming a moderated CAGR of 8% due to market maturity, the share price could reach ₹37,260. Key drivers include:

  • Sustainability: Increased adoption of eco-friendly cement and renewable energy.
  • Urbanization: Rising demand from India’s urban and rural infrastructure projects.

2050 Forecast

By 2050, UltraTech’s global leadership and operational efficiencies could push its share price to ₹95,000–₹1,00,000, assuming a conservative 6% CAGR from 2035. Long-term growth will depend on:

  • Innovation: New product lines like specialty concretes and adhesives.
  • Economic Growth: India’s projected GDP growth will sustain construction demand.

Financial Report Summary (2024-2025)

  • Revenue Growth: 12% YoY, with Q3 2024 sales at ₹17,193.33 crore.
  • Profitability: Net profit margin of 13% and EBITDA per tonne of ₹964 in Q3 2024.
  • Debt: Reasonable debt-to-equity ratio of 9%, indicating a healthy balance sheet.
  • Dividends: ₹70 per share in 2024, yielding 0.6%.
  • Valuation: P/E of 55.31 and P/B of 5.63 suggest a premium valuation, justified by growth prospects.

Risks and Challenges

  • Economic Slowdown: Reduced construction activity could impact demand.
  • Competition: Rivals like Ambuja Cements and Shree Cement may challenge market share.
  • Regulatory Changes: Stricter environmental norms could increase costs.

Is UltraTech Cement a Good Investment?

UltraTech Cement’s strong fundamentals, market leadership, and strategic expansions make it a promising long-term investment. With a projected CAGR of 8-10% over the next decade, the stock offers significant growth potential. However, investors should monitor economic trends and conduct thorough research before investing.

Disclaimer: Stock market investments carry inherent risks. Consult a financial advisor before making decisions.

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