Last Updated : Oct 26, 2020 03:44 PM IST | Source: Moneycontrol.com

Hold Ambuja Cement; target of Rs 262: Arihant Capital

Arihant Capital recommended hold rating on Ambuja Cement with a target price of Rs 262 in its research report dated October 26, 2020.

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Arihant Capital 's research report on Ambuja Cement


Ambuja Cement has reported good set of numbers during Q3CY20 with strong volume growth and margin beat. Company has posted a volume growth of 8% YoY//35% QoQ in 3QCY20, owing to pent-up demand and strong recovery in rural market. Revenue for the quarter grew by 9% YoY/31% QoQ, driven by strong volume growth and better pricing. EBITDA during the quarter grew by 55% YoY/14% QoQ to Rs 680 cr, largely due to tight control over fixed cost. EBITDA margin improved sharply to 23.9% during the quarter from 16.8% in Q3CY19. Profit for the quarter grew by 88% YoY to Rs 441 cr.


Outlook


Company has announced an interim dividend of Rs 17/share, resulting into outflow of Rs 3379 cr, implying a dividend yield of 6.7%. We maintain our Hold rating on the stock with a revised target price of Rs 262.


For all recommendations report, click here


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First Published on Oct 26, 2020 03:44 pm
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