- Shares of Ambuja Cement rose after Bernstein upgraded the stock to outperform
- Bernstein set a target price of Rs 486 for Ambuja Cement with positive outlook
- NSE Nifty 50 rose 0.36% and BSE Sensex gained 0.4% in early trade on July 2
Shares of Ambuja Cement jumped in early trade on Thursday, July 2, after global brokerage Bernstein retained its bullish view on the stock and upgraded it from 'market - perform' to 'outperform'. The brokerage has pegged a target price of Rs 486 on the Adani Group stock giving a positive outlook on the company's growth curve for the second half of the year. The rise in the share price comes as the domestic equity benchmarks extended gains for the second consecutive trading session. The NSE Nifty 50 rose 0.36% to 24,093.30, while the BSE Sensex gained 0.4%, or 296 points, to 77,218.78 in morning trade.
Shares of Ambuja Cements opened at Rs 422.20 against a previous close of Rs 418.85 and extended gains by 2% to hit an intraday high of Rs 424.24 apiece on the NSE. Shares of Ambuja Cements last traded 1.44% to Rs 424.75 apiece against a rise of 0.45% in the benchmark Nifty 50 index. The stock has shed 4% in one month, 25% on a year-to-date basis and 29% in the last one year. The company commands a market cap of Rs 1,05,480.49 crore, according to stock exchange data.
Ambuja Cement Share Price Intraday
Bernstein's upgrade is largely driven by Bernstein's conviction that the recent operational underperformance of Ambuja Cements is poised to reverse. After a period of margin pressures, the brokerage expects normalizing input and operational costs to act as a significant tailwind. This stabilization in costs is projected to drive a meaningful recovery in the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) per tonne during the second half of the year.
Further, Bernstein pointed out that the current valuation gap of Ambuja Cements relative to its peers is simply "too big to sustain." This substantial discount, combined with the anticipated operational turnaround and cost efficiencies, presents a highly favorable risk-reward scenario for investors, justifying the firm's upgraded stance. As per analysts, Ambuja Cements is focussing on optimizing its margins and capitalizing on the upcoming demand cycle in the cement sector.
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