Morgan Stanley has reiterated its ‘Buy’ rating on Ambuja Cement, with a target price of ₹675, indicating a 29.4% upside from its current market price of ₹521.90.
The brokerage highlighted that the bottom-line beat was driven by one-offs, while better-than-expected realizations, supported by incentives, helped offset some industry-wide pricing pressures.
Management remains optimistic about improving operational efficiency, expecting Sanghi and Penna’s utilization rate to exceed 70% by next year, up from the current 40-45%. However, sales in the South continue to be impacted by weak pricing trends.
Morgan Stanley remains positive on Ambuja Cement’s long-term prospects, backed by operational efficiencies and better realizations.
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