Target: ₹15,210CMP: ₹11,223.45UltraTech Cement’s ₹1,800-crore foray into the wires and cables segment may appear relatively modest in the context of the company’s overall balance sheet — representing only about 2 per cent of its current capital employed — but we view the move as strategically and directionally positive. With the company targeting a 6-7 per cent share of the domestic wires and cables market by FY30, the initiative represents a measured entry into an attractive adjacent category rather than an aggressive diversification bet.At full capacity utilisation, which we estimate could be achieved around FY30-31, the business has the potential to generate an annual revenue of about ₹9,000 crore. This translates into an asset turnover of around 5x. Assuming that the EBITDA margin is broadly in line with established industry players at 10-12 per cent, the business could achieve an asset-level ROCE of over 20 per cent at peak utilisation.Our calculations suggest that the investment is estimated to generate shareholder returns of about 8 per cent, making the project value-accretive. We value the stock using an EV/CE-based methodology, assigning a 3.8x FY28E EV/CE multiple, which translates into a 12-month TP of ₹15,210/share. Our current valuation does not factor in any potential value accretion from the company’s wires and cables foray, as we prefer to monitor the execution and progress of the new business before incorporating its contribution. Published on September 3, 2026