Ambuja Cements: Buy, sell or hold? What should investors do after Q3 earnings?

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26 Aug, 2025 12:21

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Ambuja Cements share price fell 1 percent in the early trade on October 27 after company reported its September quarter earnings.

Ambuja Cements has posted 10.85 percent jump in its consolidated net profit at Rs 890.67 crore for the third quarter ended September 2021.

The company had reported a net profit of Rs 803.50 crore in the same quarter a year ago.

Its revenue from operations was up 7.74 percent at Rs 6,647.13 crore during the quarter against Rs 6,169.47 crore in the corresponding quarter of the previous financial year.

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Here is what brokerages have to say about the stock and the company post September quarter earnings:

CLSA

The brokerage house CLSA has kept an outperform call on the stock with a target at Rs 435 after Q3 EBITDA was largely in-line with estimates.

The power costs were up 1 percent QoQ and broking houses expect this to rise further in coming quarters.

Marwar plant commissioning provides near-term growth visibility and at current valuations, the risk-reward looks fair.

Credit Suisse

Research house has upgraded the stock to outperform on cheaper valuation and strong pricing power.

It has raised the target price to Rs 450 after reasonably strong results given cost pressures.

Jefferies

Research firm has maintained buy but cut the target to Rs 450 from Rs 470.

It also cut FY22-24 EBITDA estimates by 3-4 percent .

Nomura

Nomura has kept a reduced call with a target at Rs 360 per share as the valuations are expensive for standalone business.

The stock is at par with UltraTech Cement versus discount over the last five years, while UltraTech is our preferred pick in the cement space.

JPMorgan

Research house has kept a neutral call with a target at Rs 360 per share after a September quarter miss against consensus estimates, both at EBITDA & profit.

It see better risk-reward in ACC at current levels.

Motilal Oswal

The company has recently commenced commercial production at Marwar and Mundwa in Rajasthan, which will help it achieve a 5mt growth in production (17.6 percent of CY20 installed capacities).

We estimate 10.3 percent sales volume CAGR over CY20-23E, which should help it gain a market share of 40-50bp.

We maintain our neutral rating and value the stock at 13x Sep’23E EV/EBITDA to arrive at our target price of Rs 410. We have not ascribed any holding company discount for its stake in ACC.

Prabhudas Lilladher

We see strong visibility on company meeting its 50 mnt capacity guidance, supported by renewed focus of parent on India with the completion of integration of Lafarge-Holcim merger and strong performance by company.

Reiterate Buy rating with target price of Rs 445 (earlier Rs 460), EV/EBITDA of 14.5x CY22e.

At 09:18 hrs Ambuja Cements was quoting at Rs 376.95, down Rs 3.25, or 0.85 percent on the BSE.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.