The firm on Friday has reported standalone profit at Rs 271.8 crore for the quarter ended March 2018, a growth of 10.3 percent over year-ago period.
Shares of Ambuja Cements fell over 1 percent during the morning trade as investors reacted to the company’s March quarter results.
It has touched an intraday high of Rs 237.70 and an intraday low of Rs 233.75.
The firm on Friday has reported standalone profit at Rs 271.8 crore for the quarter ended March 2018, a growth of 10.3 percent over year-ago period.
Profit for the quarter ended March 2017 stood at Rs 246.5 crore.
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Revenue from operations during the quarter grew by 11.9 percent to Rs 2,862.6 crore compared to Rs 2,559.3 crore in same period last fiscal on improved realisations and sales growth of premium brands - Compocem and Roof Special.
The company follows January-December as its financial year.
Brokerages are largely disappointed with the numbers and highlight alternatives in the space.
Brokerage: Deutsche Bank | Rating: Hold | Target: Rs 262
The brokerage house said that Q1 volume growth was disappointing and the results were a miss on estimates. It now values the stock at 12.5 times CY19 EV/EBITDA. In fact, it prefers Shree Cement and Dalmia Bharat in the cement sector. Going forward, it expects volume and margin for the companies to be better.
Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 263
The global research firm said that higher costs have lead to EBITDA miss in the first quarter. Further, it said that capacity is a medium term positive.
Brokerage: CLSA | Rating: Buy | Target: Rs 325
CLSA said that weak volume growth was observed during the quarter, but saw in-line unit EBITDA. Further, it said that it is disappointed with the lone project of 1.7 MT which will come up only by second half of FY20.
Brokerage: Nomura | Rating: Neutral | Target: Rs 300
Nomura said that revenue was 5%/1% below forecast; EBITDA was in-line but 8% higher than consensus. Further, the volume growth was relatively weak at 3 percent year on year despite low base. It also continues to believe that the sector is on the cusp of mutli-year cyclical upturn. It prefers Shree Cement and UltraTech Cement as preferred plays.
Brokerage: Credit Suisse | Rating: Underperform | Target: Cut to Rs 202
The brokerage house said that the cost pressure is not yet reflected in the March quarter. The firm is cautious due to high supply addition. The firm has also cut CY18/19 EPS by 17/8% as we build lower cement prices, higher cost.
At 09:22 hrs Ambuja Cements was quoting at Rs 233.75, down Rs 3.20, or 1.35 percent.