Ambuja Cements: Holcim's stake sale is a crucial near-term trigger

With margins seen under pressure and analysts' target price of Rs 350-410, the gains otherwise are limited

The Jan-Mar 2022 results of Ambuja Cements (Q1 because the company has a December closing) marginally beat the street consensus expectations. The company guidance also indicates that the standalone capacity expansion is on track. Most analysts however, see a marginal upside from the current levels, given margin pressures.

The market is however waiting on the outcome of Holcim’s attempts to sell off its controlling holding in Ambuja Cements where it holds 63 per cent stake, and Ambuja in turn, holds over 50 per cent in ACC. Several groups are said to be involved in negotiations, with reports saying the Adani Group