Ambuja Cement Q4 Results Review: Dolat Capital Maintains 'Accumulate', Hikes Target Price

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Dolat Capital Report

Ambuja Cement Ltd.’s Q4 FY25 operating numbers were in line, however, adjusted profit after tax was below estimates. We expect revenue/Ebitda/APAT CAGR of 20.2%/33.3%/68.2% over FY24-27E, led by 24.0%/15.0% volume growth and 0.3%/1.0% realization growth in FY26E/FY27E.

We maintain our FY26E/FY27E Ebitda estimates and expect improvement in Ebitda/tonne from Rs 915 in FY25 to Rs 1,053/Rs 1,140 in FY26E/FY27E.

Maintain 'Accumulate' rating with revised target price of Rs 577 (15.5x consol FY27E EV/Ebitda and 50% Capital WIP of FY27E), considering better-than-industry volume growth besides improvement in profitability.

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