Ambuja Cements Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 60423.18 Crore) operating in Cement sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 7552.73 Crore, up 20.52 % from last quarter Total Income of Rs 6266.55 Crore and up 4.58 % from last year same quarter Total Income of Rs 7221.65 Crore. Company reported net profit after tax of Rs 962.19 Crore in latest quarter.
Investment Rationale
With the growth concerns now being addressed, the brokerage expects Ambuja to getback to industry leading growth trajectory as and when this new capacitycomes on stream. While it awaits clarity on the timeline and the quantum ofamount required for these expansions, it revises target multipleupwards to factor in this positive development and upgrade rating fromHOLD to BUY with a revised target price of Rs 365/share (i.e. at CY22EEV/EBITDA of 14.0x, implied EV/tonne of $154/t, factoring in additional 15MT for Ambuja, earlier TP: Rs 305).
Promoter/FII Holdings
Promoters held 63.3 per cent stake in the company as of Dec 31, 2020, while FIIs held 18.1 per cent, DIIs 11.4 per cent and public and others 7.1 per cent.
