This Adani Group stock, which is into cement manufacturing with a capacity of 89 million tonnes, with 22 integrated cement manufacturing plants and 21 cement grinding units across the country, is in focus after the company received CCI approval for Orient Cement Acquisition.
Price Action
With a market capitalization of Rs. 1,18,722.55 Crores, the shares of Ambuja Cements Limited touched a day’s high of Rs. 482.70 per equity share, up 1.65 percent. The stock reiterated from the day’s high and was trading at Rs. 482, which is 1.5 percent up from its previous day’s close price of Rs. 474.85. The stock delivered a negative return of 21 percent and underperformed the Nifty Index in the past year.
What Happened
The company’s stock was in focus after Ambuja Cements received approval from the Competition Commission of India (CCI) on 4th March 2025, to acquire Orient Cement Limited with primary acquisition of 9,58,73,163 equity shares comprising of 46.8 percent.
Further, an open offer for 5,34,19,567 equity shares constituting 26 percent for a price of Rs. 395.40 from the public shareholders of Orient Cement. The total shares of primary and open offer stake stands around 72.8 percent.
Company Overview
Ambuja Cement is a leading Indian cement company, part of the Adani Group, known for sustainable practices and innovative products like Ambuja Plus and Ambuja Kawach. It operates with a strong focus on customer satisfaction and eco-friendly solutions.
Capex Plans
The company plans to reach 140 MTPA capacity by FY28 from 97 MTPA currently (including Orient Cement) and plans to expand through Brownfield expansions. They plan to reach 104 MTPA by FY25.
Financials
Its Revenue from operations increased by 14.76 percent year on year from Rs. 8,129 Crores in Q3FY24 to Rs. 9,329 Crores in Q3FY25, accompanied by profits of Rs. 1,091 Crores to Rs. 2,620 Crores in the same period.
Operational Efficiency
Ambuja Cements were able to improve its operational efficiencies through reducing raw material per ton to Rs. 732 in Q3FY25 from Rs. 741 in Q3FY24. Further, in power and fuel per ton is reduced to Rs. 1,260 from Rs. 1,353, followed by Freight and Forwarding charges per ton reduced to Rs. 1,228 from Rs. 1,297 in the same period.
Written by Santhosh S
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