Ambuja Cements drops 4.5% on Credit Suisse downgrade

Ambuja Cements shares dropped 4.5 percent Monday, after Credit Suisse downgraded the stock to neutral with a target price of Rs 205.

"The stock is trading at its peak multiples and already pricing in a margin recovery in CY14 as part of potential merger synergies with ACC," Credit Suisse report said. The brokerage house expects Indian cement majors' profit in June quarter to decline 25-35 percent year-on-year. At 11:34 hours IST, the stock was quoting at Rs 198.10, down 4.55 percent on the Bombay Stock Exchange while ACC and UltraTech Cement lost around 2 percent.