Ambuja Cements share price traded marginally in the red on July 26, two days after the cement maker reported nearly a two-fold jump in consolidated net profit in the June quarter.
The company on July 24 reported a consolidated net profit to Rs 1,161.16 crore in the quarter ended on June 30, 2021 backed by strong growth in volumes and efficiency gains.
It had clocked a net profit of Rs 592.51 crore in the year-ago period, Ambuja Cements said in a BSE filing.
Revenue from operations rose by 50.25 percent to Rs 6,978.24 crore during the quarter compared to Rs 4,644.17 crore in the lockdown-hit April-June quarter of 2020.
Ambuja Cement's total expenses were at Rs 5,467.33 crore, up 42.17 percent in the second quarter of 2021 compared with Rs 3,845.41 crore in April-June quarter of 2020. The company follows January-December financial year.
The stock was trading at Rs 401.55, down Rs 0.70, or 0.17 percent at 9.57 am. It has touched an intraday high of Rs 405 and an intraday low of Rs 391.25.
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On a standalone basis, Ambuja Cement reported a 59.49 percent increase in its net profit to Rs 723.08 crore as against Rs 453.37 crore in the corresponding quarter last year. Its standalone revenue from operations was Rs 3,371.18 crore, up 54.87 percent, during the quarter as against Rs 2,176.75 crore a year ago.
Its sales volume also increased 51.07 percent to 6.33 million tonnes as against 4.19 million tonnes of the corresponding quarter.
Japanese brokerage firm Nomura has downgraded the stock to reduce with the target at Rs 360 a share after the recent outperformance. The company posted good Q2 but the margin is likely to compress in H2. Recent outperformance in prices in cost-efficiency benefits, according to a CNBC-TV18 report.
JP Morgan has a neutral rating on the stock with the target at Rs 350 per share. The company reported strong operating performance with 1.5mt expansion announced, adding that the cost should increase. It has increased EBITDA estimates by 3 percent, given strong H1CY21. The brokerage firm believes that the company could announce more expansions over the next 12 months.
Goldman Sachs has a buy rating on the stock and has raised the target to Rs 423 from Rs 370 per share. The research firm continues to like exposure to north and western markets. It expects grinding and clinker expansion in Rajasthan to free up its western capacity. It sees the valuation gap narrowing against larger peers going forward adding that risk-reward is attractive at current levels.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.