Ambuja Cements Ltd. share price target

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Ambuja Cements reported a strong set of numbers for Q1 FY26, marked by record operational and financial performance. Consolidated sales volume grew 20% YoY to 18.4 mn Tones, while revenue crossed the Rs10,000 crore mark for the first time, rising 23% YoY to Rs10,289 crore against Rs8,392 crore in Q1 FY25 and Rs8,436 crore in Q4 FY25. EBITDA rose 53% YoY to Rs1,961 crore vs Rs1,280 crore YoY, with margins improving to 19.1% from 15.3% in Q1 FY25 and 15.2% QoQ. EBITDA per tonne came in at Rs1,069, up from Rs835 YoY and Rs837 QoQ. Profit after tax stood at Rs970 crore, up 24% YoY from Rs783 crore, and 23.9%...

Ambuja Cements (ACEM) delivered strong consolidated operating performance in Q1FY26 with 20% YoY volume growth (18.4mt excluding clinker volume), aided by higher government capex and recently acquired assets. NSR improved by 5% QoQ, aided by an uptick in cement pricing during the quarter. RM costs declined on lower purchase of goods, which resulted in ACEM delivering EBITDA/t of Rs1,066. ACEM has successfully integrated the brands of Penna and Orient into ACEM. The capacity utilization for acquired assets stood at ~77-78% as per mgmt. ACEM would utilize Penna and Sanghi clinker...

Ambuja Cements (ACEM) posted higher-than-estimated EBITDA, driven by higher-than-estimated realization (3% above estimate).

We recommend a BUY rating on the stock with a target price of Rs 657/share, implying an upside of 10% from the CMP.

We attended the plant visit event organized by ACEM at its Marwar Mundwa plant in Rajasthan, where we interacted with the senior management team, followed by a tour of the plant.

Focus stays on capacity addition that will help achieve incremental market share aimed at ~18%/22% by FY28/FY30

The key highlights of ACEM’s FY25 annual report, the company’s consolidated cement capacity has risen to 100.3mtpa currently from 76.9mtpa in FY24-end, primarily led by inorganic growth.

Ambuja Cements put up a robust financial performance and crossed 100 million tons of cement capacity, becoming the 9th-largest cement company globally. With a strategic focus on growth, operational excellence, increasing market presence, strengthening ground network, improving efficiency and cost leadership, Ambuja is well-positioned to maintain its market leadership and achieve sustainable performance. The company's growth will be further supported by a strong...

Ambuja Cements (ACEM) delivered strong cons operating performance in Q4FY25 with 13% YoY volume growth (18.7mt aided by MSA and recently acquired assets). The recent uptick in cement pricing aided NSR. Increase in volumes resulted in lower operating costs delivering EBITDA/t of Rs999. Going forward, focus would remain on ramping up of Penna and Sanghi assets which...

We maintain our BUY rating on the stock.

Strong volume-driven revenue growth, as realisation stays soft 3% YoY due to aggressive push in key markets

We maintain our BUY rating on the stock.

Ambuja Cements (ACEM)’s 3QFY25 consolidated EBITDA (adjusted for prior period incentives of INR8.3b) declined ~49% YoY to INR8.9b (-35% vs. est.), due to weak realization and higher opex/t (up to INR100 150/t related to acquired assets that are in the transition and ramp-up phase). EBITDA/t declined 56% YoY to INR537 (est. INR848).

We recommend a BUY rating on the stock with a target price of Rs 601/share, implying an upside of 10% from the CMP

We maintain our BUY rating on the stock

Volume-driven revenue growth as realisation weakens by 6.0% YoY due to weak demand in key markets