BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Ambuja Cements Ltd.'s standalone Q1 FY24 EBITDA beat our/consensus estimates by ~15% as volume increased by 23% YoY. However, with inter company transfer of raw material, consolidated volume increased by 9% YoY and is lower than double digit volume increase reported by its peers.
Volume growth could be constrained till capacity is commissioned. On consolidated capacity, Ambuja Cements plans to add 14 million tonnes per annum by FY26E and post that 59 mtpa over FY26-28E.
Based on capex split of 35:65 for ACC Ltd. and Ambuja Cements, Ambuja Cements could see capacity increase at compound annual growth rate of 27% over FY24-28E versus ACC of 12% CAGR.
Stock on consolidated basis trades at ~14 times enterprise value/Ebitda and we understand its factoring planned capacity addition.
Post the result we have increased exit multiple of Ambuja Cements to 14 times but retain 'Sell' rating with revised target price of Rs 371 (earlier Rs 333).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.