- Ambuja Cements has fallen by 15.57% or by ₹56.85 in one month. It is currently trading at ₹307 to ₹310 levels.
- Ambuja Cements reported a 55.48% plunge in its consolidated profit from 968.24 crores in FY21 to ₹430.97 crores in FY22.
Ambuja Cements has fallen by 15.57% or by ₹56.85 in one month. It is currently trading at ₹307.70 levels. Though a 2% YoY volume growth was noticed and a ~4% decline for the industry, Ambuja Cements reported a higher fall in EBITDA versus its peers for December 2021 quarter, due to an increase in costs.
Cement companies are under pressure amid rising fuel prices. Some correction may be seen in fuel prices once the geopolitical concern of Russia and Ukraine is out of our way. Here are a few targets and recommendations are given by analysts:
ICICI Direct has given a buy call on Ambuja Cements today, with a target price of ₹348 and a time period of three months.
As of February 22, 2022, Goldman Sachs maintained its buy rating on Ambuja Cements but with a reduced 12-month target of ₹385 from ₹405. It said that the stock is trading at 12 times its FY23 EBITDA as compared to 17 times for Shree Cement and 14 times for Ultratech Cement. “We believe the risk-reward remains attractive for Ambuja,” it said.
Ambuja Cements reported a 55.48% plunge in its consolidated profit from 968.24 crores in FY21 to ₹430.97 crores in FY22.
As of February 22, 2022, CLSA has cut its target on the stock from ₹440 to ₹390.
“While this provides medium-term growth visibility, it could weigh on profitability given the high competitive intensity,” it said.
Nomura and JP Morgan have given a reduce/ neutral rating on the stock, as of February 22, 2022. Nomura has maintained its target at ₹360 and has picked UltraTech in the cements space. JP Morgan has a December-end price target of ₹360 based on a 13 times EBITDA, in line with its 10 years average.
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