Ambuja Cements Share Price Target: Adani Group’s flagship company, Ambuja Cements, will be in focus next week as the company turns ex-dividend. Ahead of this, brokerage firm Motilal Oswal (MOSL) sees the cement company as a good pick.
Ambuja Cements Outlook
Additionally, MOSL highlights a strong long-term outlook for Ambuja Cements, driven by the Adani Group’s planned annual capex increase to Rs 7-8 trillion by FY30, with heavy investments in renewables, transmission, ports, airports, and hydrogen.
The brokerage also notes that cement demand is supported by low penetration levels, though affordability constraints continue to limit household consumption.
Growth opportunities lie in roads, logistics, warehousing, and rural infrastructure. Improved logistics, including lower lead distances, split grinding units, and direct dispatches, are enhancing efficiency and profitability.
The share of premium cement has risen to 36 per cent, from 29 per cent. Near-term challenges include input cost pressures and limited scope for price hikes.
Ambuja Cements Stock Performance
However, from a performance perspective, the stock has not proved to be a strong wealth creator for investors in the short and medium term, while it has delivered decent returns over the long term.
From a short- and medium-term angle, returns stand at -7.33 per cent over 1 week, -4.23 per cent over 1 month, -10.41 per cent over 3 months, and -23.87 per cent year-to-date. It also reflects negative performance over longer periods, including -22.81 per cent over 1 year and declines across the 2–3 year horizon.
However, it has delivered strong long-term gains, rising 28.42 per cent over 5 years and 86.83 per cent over 10 years, indicating sustained value creation over an extended investment horizon despite recent underperformance.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
