Ambuja Cement — Accelerating Transformation; Growth Drivers In Place, Says Motilal Oswal Maintaining 'Buy'

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Ambuja Cement Ltd. has reiterated its capacity target of 140 mtpa and Ebitda/tonne target of Rs 1,500 by FY28. So far, capacity growth has been largely driven by the inorganic route. However, in FY26, expansion will primarily be organic, with multiple projects underway across various locations.

The company is also expected to prioritize integrating acquired assets. Profitability improvement will be driven by ongoing cost savings and a higher share of premium products.

We estimate the company’s consolidated revenue/Ebitda/PAT CAGR at ~17%/35%/36% over FY25-27, albeit on a low base. We estimate Ebitda/tonne to increase to Rs 960/Rs 1090 in FY26/FY27 vs Rs 768 in FY25.

Ambuja Cement (consolidated) trades at 21x/17x FY26E/FY27E EV/Ebitda and $154/$147 enterprise value/tonne.

We reiterate our Buy rating with a target price of Rs 700 (valuing the stock at 20x FY27E EV/Ebitda).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.