Shares of this cement manufacturing company jumped around 7 percent in Tuesday’s trading session after the company plans to acquire an additional stake in Sanghi Industries. In one month, the shares have delivered 20 percent returns to its shareholders. 

With a market capitalisation of Rs. 1 lakh crores, the shares of Ambuja Cements Ltd started Tuesday’s trading session flatter note at Rs. 475 compared to the previous close at Rs. 474. The share hit a high of Rs. 510, gaining around 7 percent, and is currently trading at 506.60 apiece. 

According to the exchange filing, the company is planning to acquire an additional 2.23 percent stake in Sanghi Industries for Rs 121.90 per equity share. On August 3, Gautam Adani owned ACL acquired a 54.51 percent stake in Sanghi Industries for Rs. 5,185 crores. 

Earlier the acquisition was funded through internal accruals leading to Ambuja Cements controlling a majority stake in Sanghi Industries. After this acquisition, the company’s consolidated capacity has increased to 74.6 MTPA from the earlier 68.5 MTPA. 

In addition, the company also mentioned that with this acquisition the company will increase its coastal footprint and capacity to 15 MTPA across the West Coast markets with the states of Gujarat, Maharashtra, Karnataka, and Kerala. This additional capacity is to be commissioned over the next 30 months. 

Looking at the financial statements of the company, the revenue decreased by 15 percent from Rs. 8,713 crores in Q1 FY24 to Rs. 7,424 crores during Q1 FY24. On the other hand, the net profits declined by 13 percent from Rs. 1,135 crores to Rs. 987 crores during the same period. 

The future growth plans of the company include increasing cement production capacity to 140 million tons by FY28. The company has planned to achieve an EBITDA of Rs. 1,450 to Rs. 1,500 per ton in the next 36 months. 

Headquartered in Gujrat, Ambuja Cements Ltd was incorporated in 1981. The company is one of India’s leading cement manufacturers, with a presence in 80 countries, and a focus on cement, aggregate and concrete. 

Written By Vaibhav Patil


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