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Ambuja Cement shares fall 2%; brokerages cut target price post Q3 earnings

Ambuja Cement shares fall 2%; brokerages cut target price post Q3 earnings

Ambuja Cement shares fall 2%; brokerages cut target price post Q3 earnings
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By Akanksha Upadhyay  Feb 21, 2022 11:38:58 AM IST (Published)

Shares of Ambuja Cements were trading in the red on Monday after various brokerages cut the target price following its fourth-quarter numbers. The stock fell as much as 2 percent in early trade. However, at 11:25 am, the stock pared initial losses to trade flat with a positive bias.

Shares of Ambuja Cements were trading in the red on Monday after various brokerages cut the target price following its fourth-quarter numbers.

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The stock fell as much as 2 percent in early trade. However, at 11:25 am, the stock pared initial losses to trade flat with a positive bias.
Ambuja Cements on February 17 reported a decline of 55.48 percent in its consolidated net profit to Rs 430.97 crore for the quarter ended December against a net profit of Rs 968.24 crore a year ago.
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However, revenue from operations during October-December 2021 jumped 2.31 percent to Rs 7,625.28 crore from Rs 7,452.87 crore a year ago. Total expenses stood at Rs 6,865.61 crore, a 6.7 percent jump from Rs 6,434.43 crore a year ago.
Here's what brokerages said about the company's stock:
Jefferies maintained a ‘buy’ call on Ambuja stock but cut the target price to Rs 425 from Rs 470. The brokerage has cut CY22-23 EBITDA estimate by 11-13 percent to reflect cost increases. The volume outperformance negated by higher cost spike and reported a higher fall in EBITDA despite a 2 percent on-year volume growth, Jefferies added.
CLSA cuts target for Ambuja Cements to 390 while maintained its 'outperform' rating. The east expansion is unexciting and Q4 earnings below expectation on high power costs, the brokerage added.
Citi downgraded Ambuja Cements to ‘neutral’ and cut the target price to Rs 365 from Rs 435. “The east may account for 35 percent of capacity, taking away geographic advantage versus ACC, the brokerage said. At an EV/t of $140, prefer ACC at $110/t EV, the brokerage added.
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