ULTRATECH CEMENT’s entry in the new business of W & C is to extend the building material value chain by offering one-stop solution. Buy for target price of ₹13137 (30% upside): BoB Caps

We feel UTCEM’s entry in the new business of W & C is to extend the building material value chain by offering one-stop solution. The initial investment of Rs18bn spread over next 2 years is a diversification of capital allocation but remains very small compared to its core cement exposure at ~2%. We retain our EBITDA estimates for FY25e/FY263/FY27e as the new business stream will meaningfully contribute only from FY28e. Hence, we continue to assign 17x EV/EBITDA valuation to arrive at an unchanged TP of Rs 13,137. Maintain BUY