Ambuja Cements gains on buzz of rating upgrade from a foreign brokerage

Ambuja Cements rose 4.37% to Rs 219.65 at 12:40 IST on BSE after reports that a foreign brokerage firm has upgraded the stock to buy from neutral.

Meanwhile, the BSE Sensex was up 168.04 points, or 0.66%, to 25,621.60.

On BSE, so far 1.08 lakh shares were traded in the counter, compared with an average volume of 1.68 lakh shares in the past one quarter.

Shares of large-cap cement company hit a high of Rs 221.50 and a low of Rs 212 so far during the day. The stock had hit a record high of Rs 286.85 on 3 March 2015. The stock had hit a 52-week low of Rs 198 on 26 August 2015.

The foreign brokerage firm has reportedly said that the current valuations of the company are reasonable in context of net cash balance sheet and strong franchise. The company would be key beneficiary of pick-up in demand from non-south regions of India, the brokerage reportedly added.

Ambuja Cements' net profit fell 44.6% to Rs 226.35 crore on 8.5% decline in total income to Rs 2616.18 crore in Q2 June 2015 over Q2 June 2014.

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