The shares of the cement company specializing in manufacturing and selling cement and cement-related products, with a focus on high-quality, high-strength cement for various construction applications, are in focus after a leading International brokerage firm, Jefferies, initiated a Buy target of Rs. 700 with a 27 percent Upside Potential.
With a market capitalisation of Rs. 1,35,570.32 crores on Monday, the shares of Ambuja Cements Ltd jumped upto 1.7 percent, making a high of Rs. 552.90 per share compared to its previous closing price of Rs. 543.25 per share.
Ambuja Cements Ltd, engaged in manufacturing and selling cement and cement-related products, is in focus after a leading International brokerage firm, Jefferies, initiated a Buy Target of Rs. 700 on it with an upto 27 percent Upside Potential.
The reasons for the “Buy” target
Management’s Expansion Plans: Ambuja Cements is targeting a cement capacity of 140 MTPA by FY28, showcasing its commitment to expanding production and strengthening its market position in the growing cement industry.
Focus on Cost-Efficiency: The company is focused on scaling up cost-efficiency over the next few years, which is expected to enhance its profitability while managing operational expenses effectively in a competitive market.
Industry Demand Recovery: Ambuja Cements anticipates a recovery in industry demand to 7–8 percent growth in FY26, which will drive cement consumption, especially in key infrastructure and construction sectors, providing significant growth opportunities.
Improved Pricing Trends: Management has indicated that cement pricing has improved in recent months, which is expected to positively impact revenue growth and margins going forward, supporting better profitability.
Strong Growth Outlook: Ambuja Cements’ long-term growth prospects, driven by capacity expansion and industry recovery, make it well-positioned to deliver strong financial performance, justifying the “Buy” target.
Financials & Others
The company’s revenue rose by 14.6 percent from Rs. 9,127.45 crore to Rs. 10,461 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 1,055.16 crore to Rs. 956.27 crore during the same period.It has achieved an average net profit growth of 19.48% over the past three years.
The company has a P/E ratio of 32.66, lower than the industry average of 38.84, suggesting potential undervaluation. It maintains a very low debt-to-equity ratio of 0.01, indicating strong financial stability.
Ambuja Cements Ltd, a part of the Adani Group, is one of India’s leading cement manufacturers with a strong presence across the country. Established in 1983, the company specializes in producing high-quality cement and offers a range of products, including blended and ready-mix concrete. Known for its robust infrastructure, Ambuja Cements operates extensive manufacturing units, grinding plants, and bulk terminals across India.
As of March 31, 2025, the company has a cement capacity exceeding 100 MTPA, with 24 integrated units, it has 82% share of blended cement and it has over 110,000 channel partners across India.
The clinker factor is 64.9%, and the company operates 11 captive ships, 101 ready-mix concrete plants, and 10 bulk cement terminals. With 22 grinding units, the company has a strong national presence, covering 79% of total districts in India across various states and union territories.
Written by Sridhar J
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