Markets
Ambuja Cements Stock Price Updates: Brokerages bullish on Ambuja Cements after Penna acquisition; shares gain over 1%
Ambuja Cements Share/Stock Price Updates: Shares of Ambuja Cements hit a new high in Friday’s trading session following the acquisition of Penna Cement. The stock closed at ₹673.80 on the BSE on Friday, up by 1.74%, and at ₹673.60 on the NSE, up by 1.37%. Analysts of Emkay Global have retained their ‘buy’ call on the stock and Mar-25E target price at ₹700 per share, based on implied consolidated EV/E of 17x. Regarding Penna acquisition, they said, “The deal is pegged at a favorable valuation of $89/t, which may decline to $79/t with potential grinding capacity addition of 3mt.” The analysts added that they have not incorporated the acquisition into financials yet. However, they maintained their preference for Ambuja, given its strong growth/capex plans, pan-India presence, and robust balance sheet (cash and investments worth ₹24,300 crore 243 billion as of Apr-24). Global brokerage Jefferies has also given ‘buy rating on the stock. On the other hand, UBS and CLSA have given ‘sell’ call, while Citi and Macquarie have expressed a neutral stance.
