Ambuja Cements Ltd. has attracted positive commentary from leading brokerages despite some Q4 misses, with long-term capex plans and margin recovery efforts keeping analysts constructive on the stock’s prospects.
Equirus has maintained a Long rating with a target price of ₹664 for June 2026. However, the brokerage has cut its EBITDA estimates for FY26 and FY27 by 5% and 6%, respectively, citing a rationalisation of the expected timing for operational cost savings.
Nuvama retained a Buy rating while revising its target price upwards to ₹694. The brokerage said Ambuja’s planned capex, aimed at expanding capacity to 140 million tonnes by FY28, is expected to be funded entirely via internal accruals. This aggressive growth plan underpins its bullish stance.
DAM Capital also reiterated its Buy rating with a target price of ₹600, assigning a 15x EV/EBITDA multiple on FY27 estimates — representing a 20% discount to industry leader UltraTech Cement. The brokerage has slightly upgraded its EBITDA estimates for FY26 and FY27 by about 1% and expects a robust EBITDA CAGR of 45% over FY25–27.
Morgan Stanley echoed a positive outlook with an Overweight rating and a target of ₹590. While consolidated volumes were softer than anticipated and margins came in below expectations due to rising input costs, the brokerage highlighted encouraging trends in market share and premium product contribution. It also credited the company’s ongoing cost-saving initiatives as a key long-term lever. MS’s valuation outlook ranges from 10.5x (bear case) to 18.5x EV/EBITDA (bull case) by FY27, with 16x as the base scenario.
The stock is likely to remain in focus as investors evaluate near-term margin headwinds against the backdrop of structural capacity expansion and efficiency gains.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
