'Buy' Ambuja Cements Says Motilal Oswal, Sees Up To 38% Upside

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.Stocks To Buy - We maintain our constructive view on Ambuja Cement given its value accretive acquisitions, increasing scale of operation, balanced capacity mix across markets, and cost-saving initiates. We value Ambuja Cement at 20 times Sep’26E EV/Ebitda to arrive at our target price of Rs 710.Ambuja Cement Ltd. has corrected ~30% in the last four-five months amid concerns of a demand slowdown in the sector, persistent pricing pressure across markets, and allegations by the US Department of Justice and US SEC on directors of Adani group. Adani group has denied the allegations and termed them baseless. In January 2023, Ambuja Cement stock had corrected ~40% in one month after a Hindenburg research report alleged Adani group companies of irregularities. However, the stock subsequently had appreciated by 90%+ between Feb-23 and July-24. Setting aside the current development on the Adani group, we believe Ambuja Cement, the second largest player in the Indian cement industry, has potential to deliver strong earnings growth, led by capacity expansions and cost-saving initiatives. The company is committed to increasing its capacity to 140 mtpa by FY28E through organic and inorganic expansions. Further, it is working on improving cost efficiencies and targeting cost savings of Rs 530/tonne by FY28E.We maintain our constructive view on the company given its valueaccretive acquisitions, increasing scale of operation, balanced capacity mix across markets, and cost-saving initiates. We value ACEM at 20x Sep’26E EV/EBITDA to arrive at our TP of INR710..Click on the attachment to read the full report:.Five Stocks To Buy: How To Trade PNB, Aegis Logistics, Container Corp, Engineers India, BHEL.DISCLAIMERThis 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.

'Buy' Ambuja Cements Says Motilal Oswal, Sees Up To 38% Upside

The brokerage maintains its constructive view on Ambuja Cement given its value accretive acquisitions, increasing scale of operation, balanced capacity mix across markets and cost-saving initiates.

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'Buy' Ambuja Cements Says Motilal Oswal, Sees Up To 38% Upside

The brokerage maintains its constructive view on Ambuja Cement given its value accretive acquisitions, increasing scale of operation, balanced capacity mix across markets and cost-saving initiates.

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