The shares of Ambuja Cements gained marginally on Tuesday and were trading at Rs 587 levels. In the past five days, the stock has gained approximately 3 per cent during which it also reached its 52-week high of Rs 598. In the past six months, the stock has gained 62 per cent and on a yearly basis, the stock has jumped by 54 per cent.
Ambuja Cements Ltd. is among the leading cement companies in India which were recently acquired by the Adani group. The company has a strong presence in 80 countries, and a focus on cement, aggregate, and concrete. The company has a capacity of 31 Million MT per annum.
In Q2FY23, the company reported a total revenue of Rs 7,143.17 crore which was an increase of 7 per cent from Rs 6,647.13 crore in the same quarter the previous year. In the previous quarter, their net profit stood at Rs 8,032.88 crore.
In the quarter under review, their net profit declined drastically to Rs 46.15 crore as against a profit of Rs 886.5 crore in the same period a year earlier. On a sequential basis, their profit stood at Rs 859.08 crore.
ICICI Direct is bullish on the Adani group cement stock and has assigned a ‘Buy’ rating with a target of Rs 648 per share which represents an upside of 10% from the current levels.
The company has a market capitalization of Rs 1,16,775 crore and a dividend yield of 1.07 per cent.
The promoters of the company hold a 63.22 per cent stake in the company and have pledged the entire stake. In addition to that, Foreign Institutional Investors (FIIs) hold an 11.05 per cent stake while the Life Insurance Corporation Of India holds a 6.33 per cent stake in the company.
Written by Anoushka Roy
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