India's Ambuja Cements rises; ICICI Securities downgrades on demand, cost pressures

Ambuja Cements

06/05/2026 08:15

** Shares of Ambuja Cements ABUJ.NS up 1.1% at 438.25 rupees in afternoon trading

** Brokerage ICICI Securities downgrades Ambuja to "hold" from "add"

** Revises target price to 431 rupees from 540 rupees previously, representing a 0.5% downside to the stock's last close

** Says fourth quarter was disappointing for Ambuja Cements, with EBITDA slipping 22% owing to lower-than-expected organic  volume growth and high operating cost

** "Expenses remained elevated due to high branding expenses, expensive packing material, incremental shutdown cost and additional goods tax in certain states," says ICICI

** Brokerage lowers its FY27-28 EBITDA estimates by 26% and 21%, respectively, factoring in demand headwinds and elevated competitive intensity amidst rising global fuel costs

** Twenty-six of 39 brokerages rate the stock "buy" or higher; their median PT is 525 rupees

** Stock has fallen 20.8%, YTD

 (Reporting by Abhinav Parmar in Bengaluru)

 ((Abhinav.Parmar@thomsonreuters.com;))