Global financial services firm Cantor Fitzgerald has given an “overweight” rating to Adani Group cement company Ambuja Cements, expecting a return of about 30% on investments over the next 12 months.
It pegged a target price of Rs 745, implying nearly 30 per cent upside from current levels over the next 12 months.
Currently, Ambuja Cements’ shares are trading at Rs 582. It ranks as the ninth-largest cement company in the world.
Ambuja Cements Eyes Rapid Growth, Market Expansion
Cantor, citing company guidance, said the company has expanded by 50 per cent in less than three years, reaching a current capacity of 104.5 MTPA, which is expected to grow to 118 MTPA by 2025-26 and 140 MTPA by 2027-28. This, according to the Cantor, was possible due to a combination of acquisitions and organic growth efforts.
According to management, the focus in 2025-26 will be on organic growth.
The company’s market share has increased from about 8 per cent three years ago to 15.5 per cent now, with goals to reach 18 per cent and 20 per cent by 2027-28 and 2029-30, respectively.
“Management expects India’s cement industry to grow at a rate of 1.2 to 1.5 times that of GDP, and ACEM (Ambuja Cements) aims to deliver double this sector’s growth rate,” said the Cantor report issued on August 24.
Alongside plans to reduce raw material costs by 8-10 per cent, Ambuja Cements remains well-positioned to stay competitive through digital transformation and effective risk management efforts.
Premium Cement Focus Drives Profitability Growth
Additionally, premium cement remains a key focus, accounting for approximately a quarter of its trade volume in 2024-25, with a price premium of Rs 400 per tonne aimed at enhancing profitability.
India ranks as the second-largest global producer of cement, with an installed capacity of 686 million tonnes (MTPA), significantly behind China (3,000-3,500 MTPA), as per the report.
The top five cement players are expected to boost capacity by about 12 per cent, roughly 130 million tonnes, through 2029-30, the financial services firm said in the report. (Inputs from ANI)
Also Read: Ambuja Cements Starts FY26 Strong With Record 18.4 MT Sales: What’s Driving This 20% Surge?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
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