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Neutral Ambuja Cements; target of Rs 530: Motilal Oswal

Motilal Oswal recommended Neutral rating on Ambuja Cements with a target price of Rs 530 in its research report dated September 19, 2022.

September 19, 2022 / 08:35 PM IST
 
 
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Motilal Oswal's research report on Ambuja Cements


ACEM has announced the issuance of warrants to Harmonia Trade and Investment (promoter entity) on a preferential basis, at INR418.87/warrant, aggregating to INR200b.  These warrants can be exercised and converted into equity shares in one or more tranches within 18 months. This signals the promoters’ intent towards growth and commitment for further investments in the Cement business. Upon conversion of these warrants, the promoters’ shareholding will increase to 70.3% v/s 63.2% at present.



Outlook


We have discounted our CY26-based assumptions at a WACC of 12% to arrive our CY24-based TP. Our TP for ACC/ACEM has increased to INR2,515/INR530 from INR2,260/INR350. Assuming a cost benefit/t of INR200/INR300 for ACC/ ACEM, our TP will increase to INR3,185/INR680.

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At 17:30 Ambuja Cements was quoting at Rs 564.95, up Rs 48.65, or 9.42 percent.


It has touched an intraday high of Rs 572.25 and an intraday low of Rs 514.55.


It was trading with volumes of 2,920,876 shares, compared to its thirty day average of 655,970 shares, an increase of 345.28 percent.


In the previous trading session, the share closed down 4.19 percent or Rs 22.60 at Rs 516.30.


The share touched its 52-week high Rs 572.25 and 52-week low Rs 274.00 on 19 September, 2022 and 08 March, 2022, respectively.


Currently, it is trading 1.28 percent below its 52-week high and 106.19 percent above its 52-week low.


Market capitalisation stands at Rs 112,179.03 crore.


For all recommendations report, click here


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Ambuja Cements - 190922 - moti

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first published: Sep 19, 2022 08:35 pm
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