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Last Updated : Apr 05, 2018 05:43 PM IST | Source: Moneycontrol.com

Buy Ambuja Cements; target of Rs 310: Reliance Securities

Reliance Securities is bullish on Ambuja Cements has recommended buy rating on the stock with a target price of Rs 310 in its research report dated February 21, 2018.

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Reliance Securities's research report on Ambuja Cements


Ambuja Cements (ACL) has reported a better-than-estimated operating performance in 4QCY17, mainly owing to higher-than-expected volume growth and better operational efficiencies.Operating profit grew by sharp 48% YoY and 39% QoQ to Rs4.4bn vs. our estimate of Rs3.9bn. Despite a sharp spike in Power & Fuel cost/tonne and freight cost/tonne, operating cost/tonne declined by 1% YoY and 6% QoQ to Rs3,681, led by cost optimisation initiatives.

Outlook

We expect ACL to get decent traction on the back of strong brand equity, premium product portfolio, value-based pricing and expected pick-up in demand. We maintain our BUY recommendation on the stock with a revised SOTP-based Target Price of Rs310 (from Rs320 earlier).

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Feb 21, 2018 04:29 pm
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