Shares of UltraTech Cement Ltd. fell on Friday despite the third quarter numbers being slightly ahead of expectations. However, while most analysts remain positive, CLSA remains cautious on the stock’s valuation, suggesting a balanced risk-reward profile at current levels.

Despite the decline in profit, the quarter 3 results exceeded Street expectations, with net profit surpassing the estimated Rs 1,195 crore. Revenue also beat forecasts, which had predicted Rs 16,854 crore.

The cement major was expected to report an on-year fall of 26 percent in net profit, weighed down by lower realisations, depreciation.

Ultratech Cement reported a 17% YoY decline in its net profit in the December quarter. Volume is was recorded at 10% YoY.

Citi remains optimistic about UltraTech Cement's growth trajectory following its Q3 FY25 results, projecting a 12 per cent volume CAGR for FY25-27. With an upgraded target price of ₹13,100, the brokerage cites EBITDA/ton improvements and robust profitability as key drivers.

UltraTech Cement shares rose 1% following strong Q3 results, with a 17% YoY profit decline but revenue exceeding estimates. Brokerages remain positive, with target prices ranging from Rs 12,100 to Rs 13,

Aditya Birla Group firm UltraTech Cement recorded a revenue increase of 3% on year-on-year basis at ₹17,193 crore in the October to December 2024 quarter, according to the firm’s third quarter financial results released on January 23.

UltraTech, India's top cement maker by capacity, signalled better core profit in upcoming quarters as the market absorbed price hikes and demand picked up, after it reported an earnings beat on Thursday on strong volumes.

UltraTech Cement reported a 16.5% year-on-year decline in Q3FY25 profit, with a standalone profit after tax of ₹1,434 crore, compared to ₹1,718 crore in the same quarter last year.