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Shares of Ambuja Cement jumped on better-than-expected Q2 results. The cement maker stock climbed as much as 7 per cent to Rs 222.95, its highest since May 10.
On a standalone basis, the company’s net profit was up 27 per cent at Rs 499 crore (including a dividend of Rs 141 crore from ACC) against Rs 392 crore logged in the same quarter of the previous year. The net profit exceeded analysts expectations of Rs 310 crore.
However, on a consolidated basis, Ambuja Cement posted a 5 per cent fall in consolidated net profit at Rs 684 crore (Rs 718 crore) for the quarter ended June 30, 2018, largely due to lower realisation and fall in contribution from its subsidiary ACC. Revenue from operations was also down 5 per cent at Rs 6,835 crore (Rs 7,207 crore).
CLSA has cut the price target to Rs 300 from Rs 325 and maintained 'buy' rating. Over 4.7 million shares changed hands in the first 30 minutes of trade, exceeding the 30-day average of around 3.5 million shares.
Of 38 brokerages covering the stock, 17 have 'buy' or higher rating, 13 'hold' and eight 'sell'; their median price target is Rs 245, according to Thomson Reuters data.
Ambuja Cement Stock had gone down by 23.4 per cent this year as of last close compared with rivals UltraTech Cement's 6.4 per cent fall and ACC Ltd's 16.4 per cent drop.
(With inputs from Reuters )
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