ICICI Direct has given Buy recommendation for Ambuja Cements with a target price of Rs. 430 in its research report issued on Feb 18, 2021

ICICI Direct’s research report on Ambuja Cements

Ambuja Cement (Holcim group company) is a large cement player with capacity of 31.5 MT spread across north (35%), south (24%), west (~20%), east (~21%) in India. It has a large marketing set-up, pan-India presence and strong operational linkages with ACC. Upcoming new capacity in Punjab (1.5 MT) and eastern region (7.0 MT including clinker 3.2 MT) will enhance its cement capacity by ~8.5 MT to 40.0 MT In the phase II, the company plans to reach over ~50 MT capacity through capacity expansion in western region along with significant de-bottlenecking


With new capacities coming on stream, we expect healthy double digit growth during CY21-23E despite high base. Hence, maintain BUY rating We value Ambuja at Rs 430 i.e. 15x CY22E EV/EBITDA.

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At 13:51 hrs Ambuja Cements was quoting at Rs 335.40, down Rs 2.90, or 0.86 percent.

It has touched an intraday high of Rs 341.30 and an intraday low of Rs 331.30.

It was trading with volumes of 120,763 shares, compared to its thirty day average of 134,989 shares, a decrease of -10.54 percent.

In the previous trading session, the share closed down 5.87 percent or Rs 21.10 at Rs 338.30.

The share touched its 52-week high Rs 442.95 and 52-week low Rs 261.10 on 08 September, 2021 and 24 February, 2021, respectively.

Currently, it is trading 24.28 percent below its 52-week high and 28.46 percent above its 52-week low.

Market capitalisation stands at Rs 66,598.54 crore.


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