Reuters Market Eye - Shares in Ambuja Cements Ltd
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 Economic Times newspaper reported on July 3 that Holcim Ltd is looking to merge ACC and Ambuja Cements as part of its restructuring of Indian operations, citing sources.
Holcim owns a little more than 50 percent in both the companies, exchange data shows.
Credit Suisse adds that cement demand growth in the April-June quarter was weak and expects profits for Indian cement majors to decline by 25-35 percent for the period.
Ambuja Cements will report its April-June earnings on Wednesday, while ACC reports on Thursday.
(Reporting by Abhishek Vishnoi)
