The surge in the cement stock is mainly attributed to the overall positive outlook in the sector going forward. Also, Ambuja Cements’ fundraising plan was announced this week. Stocks like Ambuja and ACC are showing movement north after the Adani family’s open offer to acquire additional stake in the companies.
Why Ambuja Cement is rising?
Can ACC, Ambuja Cements Meteoric Share Rise Continue After Adani’s Acquisition? The Adani Group on Friday completed the acquisition of Ambuja Cements and ACC to become the country’s second-largest cement player after Aditya Birla Group-backed Ultratech Cement.
The acquisition was finalised after Adani Group, through its special purpose vehicle, Endeavour Trade and Investment Ltd, completed the transaction with Swiss firm Holcim and an open offer, said a statement. “The transaction involved the acquisition of Holcim’s stake in Ambuja and ACC along with an open offer in both entities as per SEBI Regulations,” it said.
The value of the Holcim stake and open offer consideration for Ambuja Cements and ACC is $6.50 billion, which makes this the largest ever acquisition by Adani Group. It is also India’s largest ever merger and acquisition transaction in the infrastructure and materials space, it added.
- Post the transaction, Adani will hold a 63.15 per cent stake in Ambuja Cements and 56.69 per cent in ACC (of which Ambuja Cements holds 50.05 per cent).
- Adani’s acquisition of ACC and Ambuja Cements triggered a meteoric rise in their respective share prices.
- Ambuja Cements share prices surged a whopping 63 per cent, while that of ACC climbed 30 per cent since Adani Group announced that it would acquire both companies in May.
Will Investors Make Money Post-Acquisition? However, this euphoria might not be long-lived. Analysts say that it will be challenging for investors to make money in Ambuja Cements after the sharp surge as the valuations have become expensive. “At this price, it is very difficult to make money in Ambuja Cements as valuation wise the stock is expensive compared to UltraTech Cement, the biggest cement maker.
But given how most of the Adani Group shares have moved, it is difficult to say how much more money can be made as some people on the street say that it is the cheapest Adani Group stock. However, current valuations are difficult to justify,” says Vishal Periwal, head of institutional research at IDBI Capital.
Retail investors will find it tougher to make money on the counter, reiterates Rahul Shah, co-head of research at Equitymaster. “A simple back-of-the-envelope calculation will tell you that it will be tough for retail investors to make money over the next two to three in Ambuja Cements.
He adds that making good money from the current level looks difficult from a medium-term point of view unless the stock trades at an even greater premium or any unanticipated value unlocking. The Fiscal Juggling ActMeanwhile, both companies will have to undertake fundraising of Rs 20,000 crore to achieve an augmented capacity of 70,000 million tonnes per annum by 2026 without leveraging their balance sheet, brokerage firm Motilal Oswal notes.
ACC and Ambuja Cements are both net cash positive with a cumulative cash balance of Rs 8,400 crore (as of the end of June 2022). Fundraising of Rs 20,000 crore can help the group increase its cement capacities by 70 million tonnes per annum (MTPA) by the calendar year 2026 without leveraging its balance sheet, Motilal Oswal said.
- The promoters’ commitment to growing the cement business has strengthened after the announcement of fund infusion in this business.
- We have assumed a capacity of 88 MTPA and 50 MTPA for Ambuja Cements and ACC, respectively by 2026.
- The group has environmental clearance for over 25 MTPA clinker capacities, and the fundraising will help it pursue inorganic growth opportunities.
The brokerage has a neutral view on the stock and, after assuming cost benefit per tonne of Rs 200 and Rs 300 per tonne for ACC and Ambuja Cement, respectively and has increased the target price to Rs 3,185 per share for ACC and Rs 680 per share for Ambuja Cements.
- Meanwhile, Ambuja Cements and ACC are also witnessing a decline in deliverable volumes.
- The average deliverable volume for Ambuja Cements was 45 per cent of total trading volume in June, which rose to 52.72 per cent in July, and 46 per cent in August.
- It fell sharply to 25 per cent in September, data from Ace Equity showed.
A decline in deliverable volume indicates that there is more intraday trading activity happening in the stock compared with investment buying, analysts added. For ACC, the average deliverable volume fell to 26 per cent in September compared with 39 per cent in July and August.
Why are cement stocks rising today?
#3 Growing economy – Earlier this a week, a news headline went viral: “India overtakes UK to become the fifth largest economy in the world” This headline had made every Indian swell with pride, even those who made zero contribution to the economy. Jokes apart, it is clear from the headline that India’s economy is growing at a rapid pace.
Will Ambuja Cement go up?
Will Ambuja Cements stock price grow / rise / go up? Yes. The Ambuja Cements Ltd stock price can go up from 587.600 INR to 671.694 INR in one year.
Experts view, Buy Sell signals for Ambuja Cements Limited AMBUJACEM are here – AmbujaCements trend for this week is negative, which means AmbujaCements target predictions on downside have a better chance. AmbujaCements targets for this week are 595.29, 658.86 on the upside, and 560.61, 520.16 on the downside. AmbujaCements target prediction for 16 Fri December 2022 are 604, 595.33, 586.66 on the upside, and 551.9, 560.57, 569.24 on the downside.
AmbujaCements target prediction for 23 Fri December 2022 are 612.18, 599.16, 586.13 on the upside, and 543.72, 556.75, 569.77 on the downside. AmbujaCements target prediction for 30 Fri December 2022 are 630.59, 613.48, 596.36 on the upside, and 525.31, 542.43, 559.54 on the downside. AmbujaCements target prediction for 06 Fri January 2023 are 654.5, 628.18, 601.86 on the upside, and 501.4, 527.72, 554.04 on the downside.
AmbujaCements target prediction for 13 Fri January 2023 are 678.04, 639.77, 601.49 on the upside, and 477.86, 516.14, 554.41 on the downside. AmbujaCements target prediction for 20 Fri January 2023 are 697.19, 647.15, 597.1 on the upside, and 458.71, 508.76, 558.8 on the downside.
- AmbujaCements trend for this month is negative, which means AmbujaCements target predictions on downside have a better chance.
- AmbujaCements targets for this month are 616.41, 719.15 on the upside, and 525.09, 485.14 on the downside.
- AmbujaCements target prediction for January 2023 are 676.88, 654.05, 631.22 on the upside, and 464.62, 487.45, 510.28 on the downside.
AmbujaCements target prediction for February 2023 are 751.84, 698.78, 645.71 on the upside, and 389.66, 442.73, 495.79 on the downside. AmbujaCements target prediction for March 2023 are 823.06, 732.52, 641.97 on the upside, and 318.44, 408.99, 499.53 on the downside.
AmbujaCements target prediction for April 2023 are 879.98, 753.83, 627.67 on the upside, and 261.52, 387.68, 513.83 on the downside. AmbujaCements target prediction for May 2023 are 897, 742.39, 587.77 on the upside, and 244.5, 399.12, 553.73 on the downside. AmbujaCements target prediction for June 2023 are 925.51, 762.39, 599.26 on the upside, and 215.99, 379.12, 542.24 on the downside.
First upside target and first downside targets are best & worst case scenarios respectively. In case of sharp rise or sharp falls, these levels will serve as maximum ranges. Second upside and second downside targets are in case of regular uptrend and downtrend respectively.
| Date | Change | Open | Close | High | Low | Volume |
| Fri 09 Dec 2022 | -1.15% | 593.90 | 581.00 | 598.00 | 572.25 | 0.2 times |
| Thu 08 Dec 2022 | 0.99% | 583.95 | 587.75 | 590.80 | 581.60 | 0.07 times |
| Wed 07 Dec 2022 | 0.17% | 582.90 | 582.00 | 588.35 | 575.10 | 0.14 times |
| Tue 06 Dec 2022 | 1.33% | 572.50 | 581.00 | 585.00 | 570.60 | 0.15 times |
| Mon 05 Dec 2022 | -0.80% | 580.85 | 573.35 | 582.35 | 571.80 | 0.14 times |
| Fri 02 Dec 2022 | -0.52% | 582.55 | 577.95 | 584.15 | 573.40 | 0.18 times |
| Thu 01 Dec 2022 | 1.79% | 573.50 | 580.95 | 585.00 | 569.50 | 0.21 times |
| Wed 30 Nov 2022 | 1.03% | 565.90 | 570.75 | 573.95 | 560.55 | 0.16 times |
| Tue 29 Nov 2022 | -0.62% | 569.60 | 564.95 | 574.40 | 563.75 | 0.09 times |
| Mon 28 Nov 2022 | 0.67% | 564.00 | 568.45 | 572.50 | 562.80 | 0.1 times |
Latest news is collected from various sources, and might have a positive or negative effect on stock prices for short term. View more announcements & NEWS by Ambuja Cements Limited Plot chart for: Closing Prices Opening Prices Daily Highs Daily Lows Volume Traded Candle Stick
| Date | Stock | Target |
|---|---|---|
| 25 Oct 2022 | Ambuja Cements Ltd. | 610.00 |
| 25 Oct 2022 | Ambuja Cements Ltd. | 490.00 |
| 22 Oct 2022 | Ambuja Cements Ltd. | 480.00 |
| 20 Sep 2022 | Ambuja Cements Ltd. | 570.00 |
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| S.No. | Name | Sales Var 3Yrs % |
|---|---|---|
| 1. | Standard Inds. | 199.74 |
| 2. | EKI Energy | 349.96 |
| 3. | Ksolves India | 103.01 |
| 4. | Guj. Themis Bio. | 40.91 |
Which is better ACC or Ambuja?
In terms of Revenue, Ambuja cement is ahead of ACC cement.
Will Adani buy Ambuja?
The Adani Group on Friday completed the acquisition of Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group for $6.4 billion.
Is Ambuja Cement giving dividend?
Corporate actions: Dividend history for Ambuja Cements Ltd. – Ambuja Cements Ltd. has declared 41 dividends since Aug.30, 2000. In the past 12 months, Ambuja Cements Ltd. has declared an equity dividend amounting to Rs 6.30 per share. At the current share price of Rs 581.00, this results in a dividend yield of 1.08%.
| Ex-Date | Dividend Amount | Dividend Type | Record Date |
|---|---|---|---|
| March 30, 2022 | 6.30 | FINAL | April 1, 2022 |
| March 19, 2021 | 1.00 | FINAL | March 22, 2021 |
| Nov.5, 2020 | 17.00 | INTERIM | – |
| May 19, 2020 | 1.50 | INTERIM | May 20, 2020 |
| April 3, 2020 | 1.50 | FINAL | April 7, 2020 |
| Feb.27, 2019 | 1.50 | FINAL | – |
| April 5, 2018 | 2.00 | FINAL | – |
| Aug.2, 2017 | 1.60 | INTERIM | Aug.3, 2017 |
| March 16, 2017 | 1.20 | FINAL | – |
| Aug.2, 2016 | 1.60 | INTERIM | Aug.3, 2016 |
| Feb.22, 2016 | 1.20 | FINAL | – |
| July 31, 2015 | 1.60 | INTERIM | Aug.3, 2015 |
| March 2, 2015 | 3.20 | FINAL | – |
| July 30, 2014 | 1.80 | INTERIM | July 31, 2014 |
| Feb.12, 2014 | 2.20 | FINAL | – |
| July 30, 2013 | 1.40 | INTERIM | July 31, 2013 |
| Feb.18, 2013 | 2.20 | FINAL | – |
| July 30, 2012 | 1.40 | INTERIM | July 31, 2012 |
| Feb.13, 2012 | 1.80 | FINAL | – |
| Aug.8, 2011 | 1.40 | INTERIM | Aug.9, 2011 |
| Feb.11, 2011 | 1.40 | FINAL | – |
| Aug.5, 2010 | 1.20 | INTERIM | Aug.6, 2010 |
| Feb.18, 2010 | 1.20 | FINAL | – |
| Aug.4, 2009 | 1.20 | INTERIM | Aug.5, 2009 |
| Feb.18, 2009 | 1.00 | FINAL | – |
| Aug.8, 2008 | 1.20 | INTERIM | Aug.11, 2008 |
| Feb.14, 2008 | 1.00 | FINAL | – |
| Aug.3, 2007 | 2.50 | INTERIM | Aug.6, 2007 |
| Feb.21, 2007 | 0.80 | FINAL | – |
| Nov.2, 2006 | 1.50 | INTERIM | Nov.4, 2006 |
| May 4, 2006 | 1.00 | INTERIM | May 5, 2006 |
| Aug.17, 2005 | 0.60 | FINAL | – |
| May 5, 2005 | 6.00 | INTERIM | May 6, 2005 |
| Aug.18, 2004 | 3.00 | FINAL | – |
| April 23, 2004 | 5.00 | INTERIM | April 26, 2004 |
| Aug.18, 2003 | 4.00 | FINAL | – |
| May 7, 2003 | 3.00 | INTERIM | May 8, 2003 |
| Aug.14, 2002 | 0.00 | FINAL | – |
| June 12, 2002 | 0.00 | INTERIM | June 15, 2002 |
| Sept.3, 2001 | 0.00 | FINAL | – |
| Aug.30, 2000 | 0.00 | FINAL | – |
Why is Holcim selling Ambuja Cement?
MONEY MATTERS – Holcim will use cash raised from the sale of its Indian business for acquisitions focused on building products and solutions, Chief Executive Jan Jenisch said on Monday, with the cement-maker currently eyeing 10 potential targets. Holcim agreed to sell its Indian business to Adani Group for 6.4 billion Swiss francs ($6.38 billion), its largest divestment in years, as it seeks to lower its carbon profile and raise funds for takeovers.
Over the last 15 months, Holcim has spent 5 billion Swiss francs ($4.99 billion) on a string of companies outside the cement market as it pivots towards building products like roofing and mortars. “We hope we can keep a similar pace and put this money to work very fast,” Chief Executive Jan Jenisch told reporters.
“At the moment we have around 10 transactions being checked by us, being negotiated by us. They are small transactions, they are bigger transactions,” Jenisch said. “We are ready for another Firestone,” he said, referring to the $3.4 billion purchase of the American roofing business Holcim made last year.
Which is better ACC or Ambuja?
In terms of Revenue, Ambuja cement is ahead of ACC cement.
