Ambuja Cements has dipped nearly 5% to Rs 197 in early noon deals on BSE after the Credit Suisse downgrades the stock to "neutral" from "outperform".
“The investment bank says the stock is trading at its peak multiple and is already pricing in margin recovery in 2014 and part of the potential merger synergies with ACC Ltd,” the Reuters report suggests.
Meanwhile, the company is schedule to announce its April-June quarter earnings on Wednesday, may report fall in net profit as cement demand growth during the period was weak.
Analyst expects the volumes of cement companies continued to disappoint in April-June quarter with most companies reporting negative growth in the range of 1% - 16% due to early arrival of monsoon.
Cement prices, which recovered from the lows of April, are slipping again and are likely to be under pressure in the near term (till monsoon recedes), said analyst at Edelweiss Securities in result preview.
Among the other individual stocks, ACC was down 3% at Rs 1,243, followed by UltraTech Cement and Madras Cements are down by 2% each at Rs 1,896 and Rs 197 respectively.
“The investment bank says the stock is trading at its peak multiple and is already pricing in margin recovery in 2014 and part of the potential merger synergies with ACC Ltd,” the Reuters report suggests.
Meanwhile, the company is schedule to announce its April-June quarter earnings on Wednesday, may report fall in net profit as cement demand growth during the period was weak.
Analyst expects the volumes of cement companies continued to disappoint in April-June quarter with most companies reporting negative growth in the range of 1% - 16% due to early arrival of monsoon.
Cement prices, which recovered from the lows of April, are slipping again and are likely to be under pressure in the near term (till monsoon recedes), said analyst at Edelweiss Securities in result preview.
Among the other individual stocks, ACC was down 3% at Rs 1,243, followed by UltraTech Cement and Madras Cements are down by 2% each at Rs 1,896 and Rs 197 respectively.
