Shares of Ambuja Cements surged 2.5% on Tuesday after global brokerage UBS upgraded the stock from ‘Sell’ to ‘Buy,’ citing improving fundamentals in the Indian cement sector. The firm also raised its target price (TP) to ₹620 from ₹475, signaling strong upside potential.
UBS believes that the recent downturn in the cement industry is nearing its end, with factors such as demand recovery, easing cost pressures, and industry consolidation paving the way for an earnings upcycle from FY26 onward. The brokerage highlights that cement prices fell nearly 8% in the first nine months of FY25, weighing on sector profitability. However, a bottoming-out trend is emerging, with price stabilization expected soon.
Moreover, structural cost-saving initiatives across major players—including logistics optimization and energy efficiency improvements—are projected to drive margin recovery. UBS also anticipates higher demand driven by a housing market upcycle and increased government infrastructure spending, which will support volume growth for cement companies like Ambuja Cements.
Ambuja Cements’ stock opened at ₹530.00 and touched an intraday high of ₹533.00 and a low of ₹520.30. The stock remains well below its 52-week high of ₹706.95 but stays above its 52-week low of ₹453.05.
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