Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for UltraTech Cement Ltd indicates a balanced outlook on the stock, suggesting that investors should maintain their existing positions rather than aggressively buying or selling. This rating reflects a combination of factors including the company’s quality, valuation, financial trend, and technical indicators. The 'Hold' status implies that while the stock shows promise, certain valuation concerns and market conditions warrant a cautious approach.
Rating Update Context
The rating was revised from 'Sell' to 'Hold' on 28 January 2026, accompanied by a Mojo Score increase from 48 to 54 points. This change reflects an improvement in the company’s overall outlook, but it is important to note that all financial data and performance metrics referenced here are current as of 09 February 2026. This ensures investors receive an accurate and timely assessment of UltraTech Cement’s position in the market.
Quality Assessment
As of 09 February 2026, UltraTech Cement Ltd maintains a strong quality grade, reflecting its robust operational and financial health. The company demonstrates a solid ability to service its debt, with a low Debt to EBITDA ratio of 0.91 times, indicating prudent leverage management. Additionally, institutional investors hold a significant 32.43% stake, signalling confidence from sophisticated market participants who typically conduct thorough fundamental analysis.
The company’s recent quarterly results further underscore its quality credentials. Profit Before Tax Less Other Income (PBT LESS OI) for the quarter ending December 2025 stood at ₹2,236.67 crores, marking a substantial growth of 54.9%. Net sales for the same period rose by 22.78% to ₹21,829.68 crores, while Profit After Tax (PAT) increased by 31.9% to ₹1,792.99 crores. These figures highlight strong operational performance and effective cost management.
Valuation Considerations
Despite the positive fundamentals, UltraTech Cement Ltd is currently classified as 'very expensive' in terms of valuation. The company’s Return on Capital Employed (ROCE) stands at 11.4%, while its Enterprise Value to Capital Employed ratio is 4.2, indicating a premium valuation relative to capital utilisation. However, the stock trades at a discount compared to its peers’ average historical valuations, suggesting some relative value remains.
The Price/Earnings to Growth (PEG) ratio of 1.7 reflects moderate growth expectations priced into the stock. Over the past year, the stock has delivered a return of 10.13%, while profits have risen by 30.8%, indicating that earnings growth has outpaced share price appreciation to some extent. This valuation dynamic supports the 'Hold' rating, as the stock is not undervalued enough to warrant a 'Buy' recommendation but is also not overvalued to justify a 'Sell'.
Financial Trend and Performance
The financial trend for UltraTech Cement Ltd remains positive as of 09 February 2026. The company has demonstrated consistent returns over the last three years, outperforming the BSE500 index in each annual period. Its market capitalisation of ₹3,75,421 crores makes it the largest player in the Cement & Cement Products sector, representing 35.98% of the sector’s total market cap.
Annual sales of ₹85,775.38 crores account for nearly 20% of the industry’s total, underscoring UltraTech’s dominant market position. The stock’s recent price performance has been encouraging, with gains of 0.74% in the last day, 2.30% over the past week, and 7.27% in the last month. Year-to-date returns stand at 8.78%, reflecting steady investor interest and confidence in the company’s growth trajectory.
Technical Analysis
From a technical perspective, UltraTech Cement Ltd is currently exhibiting a sideways trend. This suggests that while the stock is not experiencing significant upward momentum, it is also not under severe selling pressure. The sideways technical grade aligns with the 'Hold' rating, indicating a period of consolidation where investors may await clearer signals before making decisive moves.
Momentum building strong! This Mid Cap from NBFC is on our MomentumNow radar. Other investors are catching on – will you join?
- - Building momentum strength
- - Investor interest growing
- - Limited time advantage
Implications for Investors
For investors, the 'Hold' rating on UltraTech Cement Ltd suggests maintaining current holdings while monitoring the stock’s valuation and market developments closely. The company’s strong fundamentals and positive financial trends provide a solid foundation, but the premium valuation and sideways technical pattern advise caution against initiating new positions at this stage.
Investors should consider the company’s dominant market position and consistent profit growth as positive factors supporting long-term investment. However, given the current valuation metrics, it may be prudent to wait for a more attractive entry point or clearer technical signals before increasing exposure.
Sector and Market Context
Within the Cement & Cement Products sector, UltraTech Cement Ltd remains a key bellwether due to its size and market influence. Its performance often sets the tone for the sector, which is currently navigating a phase of moderate growth and cautious investor sentiment. The company’s ability to sustain profit growth and manage debt effectively positions it well to capitalise on any sectoral upturns.
As of 09 February 2026, the broader market environment continues to be influenced by macroeconomic factors such as infrastructure spending, commodity prices, and interest rate trends, all of which impact cement demand and pricing. UltraTech’s strong operational metrics and market leadership provide some insulation against these external variables.
Summary
In summary, UltraTech Cement Ltd’s 'Hold' rating by MarketsMOJO reflects a balanced view of the company’s current standing. The rating update on 28 January 2026 recognised improvements in the company’s outlook, while the latest data as of 09 February 2026 confirms solid fundamentals, positive financial trends, and a cautious valuation stance. Investors are advised to maintain their positions and monitor developments closely, considering the stock’s dominant sector role and consistent performance.
Key Metrics at a Glance (As of 09 February 2026)
- Mojo Score: 54.0 (Hold)
- Market Capitalisation: ₹3,75,421 crores
- Debt to EBITDA Ratio: 0.91 times
- ROCE: 11.4%
- Enterprise Value to Capital Employed: 4.2
- PEG Ratio: 1.7
- 1-Year Stock Return: +10.13%
- Quarterly PBT LESS OI Growth: +54.9%
- Quarterly Net Sales Growth: +22.78%
- Quarterly PAT Growth: +31.9%
- Institutional Holdings: 32.43%
These figures collectively underpin the rationale behind the current 'Hold' rating, offering investors a comprehensive view of UltraTech Cement Ltd’s investment profile.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
