Nomura has expressed a bullish view on Ambuja Cements Ltd, part of the Adani Group with a market capitalization of INR 1.67 lakh crore. They have set ambitious targets, foreseeing potential benefits from government announcements in the upcoming budget, likely boosting infrastructure projects and focusing directly on cement companies.
Market Analysis and Ambuja Cements
The cement sector, including Ambuja Cements, is currently under scrutiny as investors prepare for the upcoming Union Budget 2024. Brokerage firms are rating selected stocks across various sectors, with particular attention on cement companies.
Investment Outlook and Infrastructure
Analysts are optimistic about the infrastructure sector receiving favorable announcements in the budget, potentially stimulating construction activities and directing investor attention towards cement stocks. Brokerage houses are actively monitoring these developments and have identified several promising cement stocks.
Nomura’s Assessment and Industry Growth
Nomura’s recent upgrade of Ambuja Cements’ rating to “Buy” highlights their anticipation of above-industry volume growth. They attribute this to the company’s expanding footprint nationwide, emphasizing cost savings, and increasing their stake in green power. Nomura has set a target, anticipating an 18% increase from the current stock price.
Financial Performance of Ambuja Cement
Ambuja Cements reported revenues of INR 17,919 crore and a net profit of INR 2,334.69 crore for the fiscal year 2023-24. The company’s EPS stands at INR 9.48 per share.
Share Performance and growth
Recent market trends show Ambuja Cements’ shares have appreciated by approximately 32.64% in the last three months, with a three-year return of 55.72% and 33.14%. The company has also announced a bonus issue in a 1:1 ratio, offering additional shares to existing shareholders alongside cash dividends.
Market capitalization and positive outlook
With a robust market capitalization and positive outlook from global brokerage firms like Nomura, Ambuja Cements appears poised for growth amid expanding infrastructure projects and favorable economic policies. Investors are advised to consider these factors while making investment decisions in the current market climate.
Also, read | The Best Apps for Earning Money in 2024
