Motilal Oswal has reiterated its Buy rating on Ambuja Cements with a target price of Rs 750, implying a 38% upside from the current market price of Rs 543. The brokerage's bullish stance is supported by Ambuja Cement's aggressive capacity expansion, strategic acquisitions, and cost-efficiency initiatives, which position the company for strong earnings growth over the next three years.
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
Though near-term challenges (delay in cement demand pickup and weak non-trade prices) weigh on Ambuja Cements Ltd.'s stock performance, we maintain our constructive view on the company given its rising scale of operation, balanced capacity mix, and profitability improvement.
The stock is trading attractively at 15x/13x FY27E/FY28E EV/Ebitda (vs last five-year average one-year forward EV/Ebitda of 18x) and $128/$119 EV/tonne (last 5-year average one-year forward EV/t of $170).
We value Ambuja Cements at 20x Sep'27E EV/Ebitda to arrive at our target price of Rs 750.
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
