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Shares of UltraTech Cement Limited traded over 2 per cent increased to Rs 10,278 on Wednesday’s morning commerce. This come after the corporate introduced its plan to allocate Rs 32,400 crore for capital expenditure over the approaching three years, aiming to develop its operations.
The agency intends to reinforce its capability to roughly 200 million tonnes each year (MTPA) within the close to time period. In addition, the corporate has reported the initiation of two new greenfield initiatives with an combination capability of 5.4 MTPA.
These initiatives, situated in Chhattisgarh and Tamil Nadu, will enhance the corporate’s whole capability to 151.6 MTPA. In the earlier yr, the cement producer has boosted its capability by 18.7 MTPA. Additional expansions, amounting to 35.5 MTPA, are presently in progress at 16 websites.
KC Jhanwar, the managing director of the corporate mentioned that India’s sturdy progress trajectory gives the cement sector vital headroom for long run progress. Given the consolidated postion within the trade, the corporate is effectively positioned to assist the nation in its thrilling progress journey forward, he additional added.
Morgan Stanley has assigned an ‘overweight’ name on the inventory. With a value goal value of Rs 12,000, it implies an upside of 19.5 per cent from the final closing of Rs 10,038. “It continues to be focused on capacity market share gains as it remain key to volumes,” the brokerage mentioned in a notice. “Size, pan-India presence and balance sheet strength makes the company best positioned in the industry.”
In late March, the Competition Commission of India (CCI) authorised the corporate’s proposed acquisition of Kesoram Cement enterprise from Kesoram Industries.
At 11:58 am, the inventory was buying and selling at Rs 10,077.60, up 0.36 per cent from the earlier shut on the NSE. The counter has slipped over 4 per cent for the reason that begin of the yr.
