Ambuja Cements share price surged over 4 per cent in early deals on the BSE on Friday, August 23, amid reports of promoters selling some stakes via a block deal. Ambuja Cements share price opened at ₹654 on Friday against its previous close of ₹632.90 and rose 4.23 per cent to the level of ₹659.70. Around 9:25 am, the stock traded 3.30 per cent higher at ₹653.80.
According to media reports quoting the terms of the transaction, Adani Group intended to sell nearly 3 per cent of its stake in Ambuja Cements on Friday to raise up to $500 million, or nearly ₹4,197 crore, via block deals.
As per shareholding pattern data, the Adani Group held a 70.33 per cent stake in Ambuja Cements at the end of the June 2024 quarter.
Adani Group completed the acquisition of Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group for $6.4 billion in September 2022.
This year on June 13, Ambuja Cements announced the acquisition of Penna Cement Industries Ltd (PCIL) at an enterprise value of ₹10,422 crore.
Ambuja Cements share price hit its 52-week high of ₹706.85 on July 2 this year and its 52-week low of ₹404 on November 1 last year. Over the last year, the stock has jumped by nearly 37 per cent.
In Q1FY25, Ambuja Cements' revenue and profit decreased by 4.61 per cent and 28.63 per cent year-on-year (YoY), respectively.
Sequentially, the company's revenue fell 6.55 per cent, while profit decreased by 38.75 per cent. The operating income also declined by 44.25 per cent quarter-on-quarter and 37.28 per cent year-on-year.
After the Q1 results, brokerage firm Incred Equities retained an 'add' call on the stock, raising the target price to ₹775 from ₹716 earlier.
"We retain an add rating and roll forward to September 2025F target price of ₹775, based on implied consolidated EV/EBITDA of 17 times (unchanged). Though its current valuation is at a marginal premium versus its long-term median, the premium reflects the possibility of a potential rise and cost-saving synergies with group companies," Incred said.
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