UltraTech Cement Shares Gain From New Building Push

UltraTech Cement is drawing renewed market attention after brokerage Choice Institutional Equities assigned a 12-month target of ₹15,210 a share, implying about 34% upside from its assessed market price. The trigger is its entry into wires and cables, a move that could reshape competition across India’s wider building-materials supply chain while adding another growth avenue beyond cement.

The company has committed about ₹1,800 crore to establish its wires and cables business. Commercial production has begun at its Jhagadia facility in Gujarat, which has an installed capacity of about 10.98 lakh kilometres for house wires and light-duty cables. The company first announced the investment in February 2025 as part of a broader effort to expand across the construction value chain. Choice expects the business to target a 6–7% share of India’s domestic wires and cables market by FY30. At high utilisation, the brokerage estimates annual revenue could reach nearly ₹9,000 crore by FY30–31. Its model assumes an EBITDA margin of 10–12% and an asset-level return on capital employed above 20%. These are estimates rather than assured outcomes and will depend on execution, demand and competitive pricing. For investors, the significance extends beyond the projected numbers. Wires and cables are essential inputs for housing, commercial buildings, industrial facilities and infrastructure projects.

A larger integrated building-materials offering could alter procurement patterns for contractors and developers, although established electrical-product manufacturers remain strong competitors. The development also sits within a wider real-estate regulatory environment. RERA continues to shape accountability and buyer protection in registered housing projects, but it does not directly govern the manufacture or sale of wires and cables. Its relevance here is indirect: construction-material suppliers operate within a property market where project delivery, compliance and consumer confidence increasingly influence demand. UltraTech’s core cement expansion remains substantial. CRISIL noted that the company had 205.5 million tonnes per annum of grey cement capacity, including overseas capacity, as of June 2026, with plans to reach 242.5 MTPA by FY28. Its wider building-products portfolio and distribution network provide a base for expansion into adjacent categories.

The brokerage’s ₹15,210 target is based on a 3.8-times FY28 estimated enterprise-value-to-capital-employed multiple. Importantly, Choice has not included potential value creation from the cables business in its present valuation, preferring to assess execution before assigning additional value. For the broader construction economy, the next test will be whether this diversification can translate into reliable products, competitive pricing and efficient distribution without encouraging wasteful capacity expansion. For cities and consumers, the impact will ultimately depend on how efficiently such building-material supply chains support housing and infrastructure delivery.

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UltraTech Cement Shares Gain From New Building Push