UltraTech Cement Q1 Net Rises 49% to Rs. 2,226 Crore, Misses Estimates; Cement Stocks Mixed

UltraTech’s June quarter earnings show strong growth but fall short of analyst estimates, keeping cement stocks in check.

UltraTech Cement, India’s largest cement manufacturer, reported a 49% year-on-year jump in consolidated net profit to ₹2,226 crore for the June quarter (Q1 FY25) on Monday, July 21. However, the number came in below Street estimates, with a Moneycontrol poll forecasting net profit closer to ₹2,463 crore, denting near-term bullish sentiment.

Revenue for the quarter rose 13% YoY to ₹21,275 crore, led by higher sales volumes and stable demand across infrastructure and housing. Despite strong earnings momentum, the bottom-line miss prompted a muted reaction from traders.

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Stock Reaction & Technical Setup

Shares of UltraTech Cement traded largely flat post-results, hovering near ₹10,250, with minor intraday losses of around 0.5%. The stock failed to attract momentum buying despite the YoY growth, as traders focused on the earnings miss and margin concerns.

Technically, ₹10,500 remains a key resistance level, with support near ₹9,950. The 14-day RSI stands at 52, suggesting neutral momentum. Delivery volumes remained steady, but open interest in near-month options saw slight unwinding at the ₹10,500 Call strike.

“The miss on profit versus estimates tempers bullish enthusiasm. However, underlying demand trends remain intact, which could support the stock in the medium term,” said a cement analyst at ICICI Securities.

Sectoral Read & Market Breadth

Broader cement stocks showed mixed reactions. Shree Cement held firm near ₹27,300 while Ambuja Cements and ACC saw mild declines. The Nifty Commodities index stayed flat, and the Nifty 50 hovered around 24,950 in a tight range.

The cement sector saw limited FII participation, with domestic institutions remaining net buyers in the capital goods and infra-linked names last week. Market breadth in the midcap and construction space was neutral, with no major directional shift post the earnings announcement.

What to Track Going Ahead

Markets will closely follow management commentary on pricing trends, input cost outlook, and capacity expansion timelines during UltraTech’s post-results call. With the monsoon season underway, regional demand patterns and rural infrastructure push will also be under watch.

Stocks to keep on the radar:

• UltraTech Cement: Watch for a breakout above ₹10,500 or breakdown below ₹9,950 in the coming sessions

• Shree Cement: Q1 results due next week; price action key around ₹27,000

• JK Cement: Potential volume breakout zone near ₹4,000 ahead of results

Check This:

• UltraTech Cement Stock Price
• Shree Cement Stock Price
• JK Cement Stock Price