Jefferies has maintained its “buy” rating on UltraTech Cement Ltd., Ambuja Cements Ltd., JK Cement Ltd. and Dalmia Bharat Ltd. and a “hold” rating on Shree Cements. However, it has cut its price target on all these names.
- UltraTech Cement: Target cut to ₹14,025 per share from ₹14,750 apiece. It implies an upside of 21.9% from its previous close.
- Ambuja Cement: Target price to ₹615 from ₹735 apiece. It sees an upside potential of up 39.5% from its previous close.
- JK Cement: Target cut to ₹6,705 from ₹7,000 apiece. It implies an upside of 23% from its previous close.
- Dalmia Bharat: Target price cut to ₹2,500 from ₹2,600. It sees an upside potential of up to 28.4% from its previous close.
- Shree Cement: Target price cut to ₹27,530 from the ₹30,000. This implies an upside potential of 13.3% from its previous closing price.
Jefferies said elevated energy prices amid the West Asia tensions pose a key earnings risk for cement companies, as cost shocks are historically hard to pass through in the short term.
It has estimated a ₹300 per tonne variable cost inflation over the fourth quarter of FY26 to the second quarter of FY27, with only a partial pricing offset despite the recent hikes, thereby driving Jefferies to cut its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) expectations on these stocks by 4% to 9% over financial year 2027-2028.
The brokerage said that Ambuja Cements faces the sharpest cuts amid a slower cost turnaround, which remains key to reviving investor interest.
Shares of UltraTech Cement, Ambuja Cements, JK Cement, Dalmia Bharat and Shree Cement were trading in the 0.7% to 3% higher range at 10.10 am on Wednesday.
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