Ultravolt launches with ₹18bn, India’s second‑largest wires capacity.
Projected FY28 revenue ₹30bn, EV ₹70bn (₹238/share) – modest impact on UTCEM valuation.
Revised target price ₹12,138 (vs ₹11,900) – hold recommendation remains.
Ultravolt Launch and Capacity UltraTech Cement (UTCEM) has unveiled its new wires and cables arm, ‘Ultravolt’, under the Aditya Birla Group umbrella. The launch is backed by a ₹18 billion investment, giving Ultravolt India’s second‑largest capacity in the wires segment right from the outset. The company aims to become a national brand and rank among the top two players in the industry within five years.
Financial Impact on UTCEM Assuming Ultravolt generates ₹30 billion in revenue by FY28, with a net working capital of ₹5 billion, the segment’s valuation multiple of 2.5x price/sales translates to an enterprise value of ₹70 billion, or ₹238 per UTCEM share. This addition does not materially shift UTCEM’s overall valuation, which remains anchored on the core cement business valued at 17x FY28 EV/EBITDA. Consequently, the analyst’s target price is revised upward to ₹12,138 from ₹11,900, while maintaining a HOLD stance.
Market Outlook and Analyst View The Ultravolt initiative is viewed as a strategic diversification but is expected to have a muted immediate effect on UTCEM’s stock performance. Investors should note the projected FY28 revenue and the modest EV contribution when assessing the company’s growth trajectory. With the revised target price and a HOLD recommendation, the market consensus suggests that the wires segment will strengthen UTCEM’s long‑term portfolio without delivering a sharp short‑term upside.
