Buy Ambuja Cements, target price Rs 300: ICICI Securities

ICICI Securities has given a buy rating to Ambuja Cements with a target price of Rs 300. The share price moved down by 1.15 per cent from its previous close of Rs 247.50 . The stock’s last traded price is Rs 244.65.

Ambuja Cements Ltd., incorporated in the year 1981, is a Large Cap company (having a market cap of Rs 48499.38 Crore) operating in Cement sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 6169.47 Crore, up 32.84 % from last quarter Sales of Rs 4644.17 Crore and up 1.51 % from last year same quarter Sales of Rs 6077.62 Crore Company has reported net profit after tax of Rs 800.70 Crore in latest quarter.

Investment Rationale
Factoring in better margin, the brokerage increases CY20-CY21E EBITDA by ~10% and raise target price to Rs300/share based on 10xSep’22E EV/E.

Promoter/FII Holdings
Promoters held 63.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 16.8 per cent, DIIs 13.3 and public and others 6.6 per cent.