Ambuja Cements Ltd.'s share price increased on Monday due to its second-quarter profit surpassing analysts' estimates in a challenging pricing environment.
The company posted a profit of Rs 500.66 crore in the quarter ended Sept. 30, 2024, according to an exchange filing. Analysts tracked by Bloomberg had a consensus estimate of Rs 458.5 crore.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
The Adani Group-owned cement manufacturer's standalone net profit fell 22.23% on a year-on-year basis in the second quarter of the current financial year. The fall in profits was on the back of a weak cement pricing environment pan-India, as well as factors like heavy monsoons, labour shortages, and slowdowns in construction activities impacting demand.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Meanwhile, the cement maker's revenue grew despite a weak cement pricing environment in India. The company's revenue was up 6.13% at Rs 4,213.24 crore, beating the Bloomberg estimate of Rs 3,923.5 crore.
Ambuja Cements said that while its Ebitda was impacted by 71% annual rise in 'purchase of stock in trade', power and fuel costs were down 17% year-on-year and freight expenses fell 2% on annual basis.
Shares of the company rose as much as 5.35% to Rs 582.25 apiece, the highest level since Oct. 22. The stock pared gains to trade 3.9% higher at Rs 574.45 apiece as of 1:45 p.m. This compares to a 1% advance in the NSE Nifty 50 index.
The stock has risen 10.37% on a year-to-date basis and 35.48% in the last 12 months. Total traded volume so far in the day stood at 1.16 times its 30-day average. The relative strength index was at 42.66.
Out of the 41 analysts tracking the company, 22 maintain a 'buy' rating, 11 recommend a 'hold,' and eight suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 39%.
Disclaimer: NDTV is a subsidiary of AMG Media Networks Limited, an Adani Group Company.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
