Ambuja Cements share price jumps 10%, hits 52-week high; cement stock surges over 35% in one month
Ambuja Cements share price today: Shares of Ambuja Cements jumped nearly 10 per cent in BSE intraday trade to hit a new 52-week high.
Ambuja Cements share price target: Shares of Ambuja Cements jumped nearly 10 per cent in BSE intraday trade to hit a new 52-week high. On Monday, Ambuja Cements share price rose 9.99% to trade on 52-week high value of Rs 567.90 per share.
The spike in Ambuja Cements share price comes after global brokerage house Jefferis upgraded the stock from hold to buy. The brokerage house gave a buy call with a target price of Rs 620 per share, previously Rs 340 per share.
Earlier, domestic brokerage Nirmal Bang Institutional Equities had changed its stance on the sector to ‘Positive’ from ’Neutral’ on multiple triggers.
It said headwinds from receding operating costs, especially petcoke/coal and crude oil, along with improving demand prospects (on the back of pre-election year and pent-up demand) are likely to drive superior earnings growth for the sector.
It picked Ultratech, Birla Corp, JK Lakshmi, Nuvoco Vistas and Sagar Cements as its preferred pick from the cement segment.
"Key risks to our call include lower-than-expected demand, increase in crude prices leading to higher freight or petcoke prices and further aggressive capacity addition announcements by incumbent players," it said.
Meanwhile, JP Morgan maintained an 'Underweight' rating on Ambuja Cements with a target price of Rs 309. It feels there is no clarity as yet on 20000-cr fund raising. It, however, said post warrant issuance, Ambuja would become most cash rich company in Indian cement sector.
"Emergence of cash-rich Ambuja with aggressive new owners will be negative for peers," it said.
Meanwhile, CITI recommended a 'sell' with a target price of Rs 340 for the cement counter.
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04:01 PM IST