New Delhi: ICICI Securities has given a Buy rating on Ambuja Cements and Star Cement. The brokerage recommended buying the two cement stocks and shares target price. It also gave a Hold call on Shree Cement, UltraTech Cement and Framco Cements.
Ambuja Cements share price target
Maintaining a Buy call on Ambuja Cements, ICICI Securities said the cement stock has the potential to rise to the level of Rs 801. Ambuja Cements, the cement and building materials
flagship of the diversified Adani Group, in its Q1 FY’25 Results announced to achieve sustainable performance. The cement stock ended at Rs 626.10 on September 11, 2024. The share price gained ariound 38 per cent in the last one year.
Ambuja Cements Q1 2024 Results Highlights
Q1 Operating EBITDA stood at Rs 807 PMT, EBITDA margin of 15.4%
Quarterly EPS (diluted) at Rs 2.65
Taken lead in ESG, Net Zero commitment by 2050, near-term targets validated by SBTi, first of its kind in the sector.
The net company declared its net worth surged by Rs 8,620 crore during the first quarter of 2024-25 and stands at Rs 59,465 crore. The company remains debt free and continues to maintain Crisil AAA (stable) / Crisil A1+ ratings, it added.
The Cash and Cash Equivalent was recorded at Rs 18,299 crore enabled accelerated growth in future, the financial results mentioned.
The company expects its business to grow as the “cement demand during FY’24 was higher by 7-8 per cent YoY at 422 MTPA and are likely to grow by 7-9 per cent in FY’25 to around 451 MTPA driven by strong correlation with GDP growth and rising demand from housing and infrastructure sectors.”
It also stated that the company would benefits as the government has plans to invest USD 3 trillion in infrastructure and housing development through the ongoing ‘Housing for All’ scheme, National Infrastructure plan, PM Gati Shakti National Master plan and others.
Star Cement share price target
While giving a Buy rating on Star Cement, IIFL Securities projected the cement stock to rise to the levels of Rs 257. The stock closed at Rs 210.69 on September 11, 2024. The share price has gained over 32 per cent in the last one year.
Star Cement Q1 Results 2024-25
Income Statement: Figures in crore
Revenue
4807.94
Other Income
29.97
Total Income
4837.91
Expenditure
-4645.17
Interest
-37.15
PBDT
192.74
Depreciation
-393.48
PBT
-200.74
Tax
69.42
Net Profit
-131.33
Equity
404.18
EPS
-0.32
CEPS
0.65
OPM %
4.78
NPM %
-2.73
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ICICI Securities advised investors to buy shares of Ambuja Cements and Star Cement. The brokerage suggested the share price target for the two cement stocks. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
