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Ambuja Cements’ share price surged over 3% on Thursday morning to hit an intraday high of ₹687.95. This positive momentum came after Nomura upgraded the stock’s rating to ‘buy’ from ‘reduce’. The brokerage firm also raised its price target for the cement giant to ₹780 from ₹550, indicating a 17% upside from the last closing price of ₹665.
Nomura highlighted various reasons for the upgrade, including Ambuja’s aggressive capacity expansion plans and entry into new markets, leading to above-industry volume growth. With the recent acquisition of Penna, Ambuja is poised to become the third-largest player in Southern India. The company is also focused on cost optimization measures to boost efficiency and profitability.
The analysts at Nomura forecast a compound annual growth rate of 13% for volume and 28% for EBITDA over FY24-26, surpassing estimates for industry leader Ultratech. This optimistic outlook helped push Ambuja Cements’ share price up by 2.15% to ₹679.30 shortly after market open on Thursday, breaking a three-day downtrend.
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