From its 52-week high of ₹13,110 seen in February, the stock is down around 17%. De-rating due to ongoing cost inflation concerns and muted price action has led to a compression in valuation multiples for many cement stocks, including UltraTech. DAM Capital believes that current valuations have priced in most downside risks. “Key investor concerns centre on cost inflation and the resultant medium-term spreads. However, even under an FY28 bear-case scenario of Ebitda/tonne of about ₹1,000 (at levels seen during the Russia-Ukraine war), UltraTech trades at one-year forward EV/Ebitda of around 17.5x, below its three year/ five-year average and in-line with the 10-year average,” it said.
