Ambuja Cements shares gain 3% on positive outlook; Centrum sees 44% upside

Ambuja Cements' stock rose as much as 3.04 per cent during the day to ₹465.7 per share, the biggest intraday gain since February 3 this year

Shares of Ambuja Cements Ltd. rose more than 3 per cent on Tuesday after analysts maintained a positive outlook on the stock following a plant visit organised by the company.

 

The cement maker's stock rose as much as 3.04 per cent during the day to ₹465.7 per share, the biggest intraday gain since February 3 this year. The stock pared gains to trade 1 per cent higher at ₹456 apiece, compared to a 0.43 per cent advance in Nifty 50 as of 09:49 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 18 per cent this year, compared to a 7.5 per cent decline in the benchmark Nifty 50. Ambuja Cements has a total market capitalisation of ₹1.12 trillion. 

 

Analysts take after Ambuja Cements plant visit

Ambuja Cements' Sanghipuram plant in Kutch, Gujarat, is seeing steady progress on stabilisation and cost optimisation after the acquisition of Sanghi Industries, according to a note by Centrum Broking. 

 

The brokerage said initiatives undertaken after the acquisition have already reduced variable clinker costs at the facility. Further savings are expected through debottlenecking measures, installation of a waste heat recovery system, and logistics optimisation.

 

Centrum Broking noted that the plant benefits from abundant limestone reserves and access to a captive jetty, which supports efficient dispatch of cement to distant markets. Going ahead, ramp-up in capacity utilisation and execution of ongoing efficiency initiatives will remain key monitorables, the brokerage said, reiterating its 'Buy' rating on the stock with a target price of ₹653.

 

Ambuja Cements is targeting a cement capacity of 115 million tonnes per annum (mtpa) by the end of FY26, which is expected to increase to 130-132 mtpa by FY27 and 155 mtpa by FY28, according to Motilal Oswal Financial Services.

 

The brokerage said the additional 15 mtpa capacity is likely to be achieved through low-cost debottlenecking initiatives. Motilal Oswal also noted that the proposed “One Cement Platform' merger of ACC, Orient Cement, and Ambuja Cements into a single listed entity could improve scale, optimise the capacity mix, and support profitability. Motilal Oswal has a target price of ₹600 per share. 

Ambuja Cements Q3 results 

Ambuja Cements’ consolidated net profit for Q3FY26 declined by 90.6 per cent year-on-year (Y-o-Y) to ₹204 crore amid a high-base effect from Q3FY25, as well as one-offs and tax credit. Revenue from operations in Q3FY26 grew 9.2 per cent Y-o-Y to ₹10,277 crore. The revenue for Q3FY25 was ₹9,411 crore, but includes the one-time income of ₹826 crore. 

 

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