HDFC Securities' research report on Ambuja Cements
During 4QCY20, ACEM printed a healthy performance, capitalising on strong demand and pricing (primarily in the north). Cost controls further bolstered margin. Thus, standalone net sales/EBITDA/APAT rose 12/40/49% to INR 35.2/7.7/5.0 bn respectively. Over the next two years, ACEM’s profitability will benefit from its capacity expansion in the north and low-cost WHRS and solar power expansions. ACEM also hinted that it is exploring capacity expansion at various locations to drive long-term growth visibility.
Outlook
We maintain BUY with a revised SOTP-based target price of INR 308/sh.
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