Ambuja Cements Shares: Ambuja Cements shares increased by more than 3 percent in trading on Thursday, July 11.
The increase in the shares of the Adani Group’s cement firm is in the wake of the announcement of the rating being upgraded by the foreign brokerage company Nomura.
Brokerage has upgraded its rating to ‘Buy’, keeping in mind the rapid growth of capacity at Ambuja Cements. This upgrade means that brokerage has raised its price target for Ambuja stocks from Rs 500 up to 1000.
This represents an increase of about 56 percent.
Brokerage house mentioned reasons such as Ambuja’s entrance into new markets as well as its higher volume growth than other companies which explains the huge rise in the price of its target.
Ambuja Cements is currently in the process of buying Pena Cement for Rs 10,422 crore. Pena Cement has a capacity of 90 lakh tonnes per year.
Brokerage house stated that the acquisitions are likely to boost Ambuja’s capacity expansion at 14 percent in FY24-26.
As compared to a rate of 6 percent in the sector and 9 percent with UltraTech.
Recent acquisitions by Penna along with Sanghi Industries not only allowed Ambuja to expand its market and make it the third largest cement firm within South India.
Furthermore, these acquisitions have offered Ambuja numerous brownfield options for its huge limestone reserves.
Brokerage stated that it has increased the price of its goal based on Ambuja’s cost-control measures as well as expanded brownfield options.
Ambuja Cements aims to reduce its operating cost per tonne by 300 rupees until the close of FY26.
Additionally, brokerage believes lower heat consumption and a greater share of green power will boost the savings of Ambuja Cements.
In addition, brokerage believes that Ambuja Cements is seeking additional acquisitions that will enhance its market share and increase its growth prospects.
Ambuja Cements share was trading at 678.20 with an increase of 2 percent on the NSE. The shares have increased by around 26.93 percent.
In the past 1 year, the company has provided an average of 60 percent to shareholders.
Ambuja Cements Stock Performance
| Current Price | ₹ 679 |
| 52-wk High | ₹ 707 |
| 52-wk Low | ₹ 404 |
| 5 Days Return | -0.56% |
| 1 Month Return | 5.98% |
Key Fundamentals Parameters
| Market Cap | ₹ 1,67,283 Cr. |
| Stock P/E | 49.6 |
| Book Value | ₹ 176 |
| Dividend | 0.29 % |
| ROCE | 14.0 % |
| ROE | 10.3 % |
| Face Value | ₹ 2.00 |
| P/B Value | 3.85 |
| OPM | 19.3 % |
| EPS | ₹ 16.3 |
| Debt | ₹ 699 Cr. |
| Debt to Equity | 0.02 |
Ambuja Cements Shareholding Pattern
| Promoters Holding | |
| June 2023 | 63.20% |
| Sept 2023 | 63.19% |
| Dec 2023 | 63.19% |
| Mar 2024 | 66.74% |
| June 2024 | 70.33% |
| FII Holding | |
| June 2023 | 12.45% |
| Sept 2023 | 11.65% |
| Dec 2023 | 11.88% |
| Mar 2024 | 11.09% |
| June 2024 | 9.90% |
| DII Holding | |
| June 2023 | 14.14% |
| Sept 2023 | 15.26% |
| Dec 2023 | 15.56% |
| Mar 2024 | 14.24% |
| June 2024 | 12.73% |
| Govt. Holding | |
| June 2023 | 0.26% |
| Sept 2023 | 0.26% |
| Dec 2023 | 0.26% |
| Mar 2024 | 0.23% |
| June 2024 | 0.21% |
| Public Holding | |
| June 2023 | 9.94% |
| Sept 2023 | 9.63% |
| Dec 2023 | 9.10% |
| Mar 2024 | 7.69% |
| June 2024 | 6.85% |
Ambuja Cements Share: Last 5 Years’ Financial Condition
Last 5 Years’ Sales:
| 2019 | ₹ 27,104 Cr |
| 2020 | ₹ 24,516 Cr |
| 2021 | ₹ 28,965 Cr |
| 2023 | ₹ 38,937 Cr |
| 2024 | ₹ 33,160 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 2,783 Cr |
| 2020 | ₹ 3,107 Cr |
| 2021 | ₹ 3,711 Cr |
| 2023 | ₹ 3,024 Cr |
| 2024 | ₹ 4,738 Cr |
Conclusion
The information and forecasts provided result from the analysis of our research team, the company’s basics and history, experience and various technical analyses.
Also, we’ve talked in depth about the shares’ prospects and growth possibilities.
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