Last Updated : Oct 25, 2018 05:12 PM IST | Source: Moneycontrol.com

Accumulate Ambuja Cements; target of Rs 229: Dolat Capital

Dolat Capital recommended accumulate rating on Ambuja Cements with a target price of Rs 229 in its research report dated October 24, 2018.

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Dolat Capital's research report on Ambuja Cements

Lower than expected volume & realisation growth coupled with sharp increase in cost/tonne resulted in ACEM reporting weaker than expected performance. ACEM reported net income of ` 26.1bn (+12.6% YoY, -13.4% QoQ), 5.5% lower than D’est. Realisation at ` 4,787/tonne (+3.5% YoY, +1.1% QoQ). Cement despatches at 5.46 MnT (+8.8% YoY, -14.3% QoQ). ACL operated at 74% capacity utilisation during the quarter.

Outlook

We value ACEM at 12.5x CY19E, EV/EBITDA (assigning 20% holding discount to ACEM’s holding in ACC). We have revised our target price to ` 229/share, maintain ACCUMULATE.

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