Ambuja Cements Q2 Results Review - Capacity Addition To Deliver Industry Leading Volume Growth: Dolat Capital

Dolat Capital Report

Ambuja Cements Ltd.’s Q2 FY25 results reported beat on estimates.

We expect revenue/Ebitda/adjusted profit after tax compound annual growth rate of 16.3%/22.0%/19.9% over FY24-27E, led by 13.0%/23.0%/17.0% volume growth and -5.2%/2.0%/0.0% realization growth in FY25E/FY26E/FY27E.

We have revised our FY25E/FY26E Ebitda estimates by +2.2%/+0.5% factoring higher volume and realization/tonne, partially offset by opex/tonne and also introduce FY27E.

Following a ~16% correction in the stock price since our last update, we are upgrading our rating to 'Accumulate' from Sell with revised target price of Rs 626 (15.5 times consolidated FY27E EV/Ebitda and 50% Capital WIP of FY27E) considering better than industry volume growth besides improvement in profitability.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.