Ambuja Cements Ltd.

NSE: AMBUJACEM | BSE: 500425 | ISIN: INE079A01024 |Industry: Cement & Cement Products
|Mid-range Performer

Ambuja Cements Ltd.    
19 Oct 2019, 09:02AM
201.60
0.10%
HDFC Securities
We recommend BUY with a SOTP based TP of Rs240. We value ACEM's standalone cement biz 11x its Jun-21E EBITDA and its 50% stake in ACC at a 20% holding disc. While ACEM's upcoming expansions would not arrest market share, robust profitability has made its valuations attractive. The stock currently trades at 10.5/9.2x its CY20/21E EBITDA and at an EV of USD 120/MT. We recommend a BUY on Ambuja Cements with a TP of Rs 240 (SOTP based). In 3QCY19, strong pricing more than offsets weak demand. Thus, standalone net sales/EBITDA/PAT rose 1/23/31% YoY to Rs 26.26/4.40/2.35bn respectively.
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Number of FIIs/FPIs holding stock rose by 25 to 576 in Sep 2019 qtr.
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