In Standout Brokerage Report, Jefferies has raised the target price on ACC and Ambuja Cement. It believes that the focus of LafargeHolcim, especially for the India business, is encouraging.
LafargeHolcim has given a clear mandate that it wants to focus on margins. In the last conference call, it also expressed displeasure on the performance gap with UltraTech Cement. It sees this as an opportunity to increase margins going forward.
According to Jefferies, portfolio re-allocation in the last 6 months signals a high level of coordination. The brokerage raised the EPS estimate by 7-10 percent and the EBITDA estimates are 6-11 percent ahead of the consensus.
Hence Jefferies is bullish on both the stocks and has raised the target price to Rs 1,900 for ACC and Rs 300 for Ambuja Cement.
To watch other videos in this series, click the 'Standout Brokerage Report' tab below.