Buy Ambuja Cements, target price Rs 601: Axis Securities
Axis Securities has a buy call on Ambuja Cements with a target price of Rs 601. The current market price of Ambuja Cements is Rs 548.55. Ambuja Cements, incorporated in 1981, is a Large Cap company with a market cap of Rs 134708.22 crore, operating in the Cement sector.
Ambuja Cements' key products/revenue segments include Cement, Other Operating Revenue and Scrap for the year ending 31-Dec-2021.
Investment Rationale
Strong infrastructure demand and ongoing needs from the housing and commercial sectors are anticipated to boost cement demand in H2FY25. Strategic investments in roads and railways, along with urban and commercial amenities, are poised to drive robust growth. Given the company?s superior positioning and increasing foothold in South India, along with the costsaving initiatives it has undertaken and synergies with other Adani Group companies, the growth momentum is expected to continue. The Ambuja ement stock is currently trading at 17x FY26E EV/EBITDA. Axis Securities recommends a BUY rating on the stock with a target price of Rs 601/share, implying an upside of 10% from the CMP.
Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 7890.14 Crore, down -8.96 % from last quarter Total Income of Rs 8666.20 Crore and down -.12 % from last year same quarter Total Income of Rs 7899.99 Crore. Company has reported net profit after tax of Rs 470.67 Crore in latest quarter.
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