Ambuja Cements likely to get boost from cost cuts, fund infusion, ICICI Securities says

Shree Cement

11/03/2024 07:43

** Shares of Ambuja Cement  ABUJ.NS  up 0.9% at 608.15
rupees, trading between gains of 1.5% and losses of 0.3% in
session so far
        ** Upcoming fund infusion of 150 bln rupees ($1.81 bln)
from large shareholder could potentially help co reach 140 mtpa
capacity target well ahead of its FY28 forecast, ICICI
Securities says
  
    ** "Set amid the ongoing industry-wide race for capacity
creation, the cushion of rising cost efficiency will likely give
ABUJ a leg up versus peers" - ICICI Securities
    ** Brokerage notes under Adani Group, ABUJ has narrowed
margin gap of >6% vs peers in past 3 quarters, mainly led by
cost controls
    ** ICICI Securities rates ABUJ 'buy', raises target price to
831 rupees from 668 rupees
    ** ICICI's PT is the second-highest of 32 analysts, just
behind Nirmal Bang's 915 rupees - LSEG
    ** Avg recommendation on ABUJ, ACC  ACC.NS , UltraTech
Cement  ULTC.NS , Dalmia Bharat  DALB.NS  is 'buy', while Shree
Cement  SHCM.NS  and Ramco Cements  TRCE.NS  rated 'hold' - LSEG
    ** Stock risen 16.5% YTD, after 0.6% decline in 2023 
    
($1 = 82.6780 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))