Citi has maintained a Neutral rating on Ambuja Cements, reducing the target price to ₹610, suggesting a modest 7% upside from the current market price of ₹570. Ambuja’s consolidated EBITDA for the quarter stood at ₹11.1 billion, exceeding Citi’s estimate of ₹9.6 billion but down 15% year-over-year due to a 7% decline in realizations, partially offset by a 9% increase in volumes and a ~4% reduction in costs.
The consolidated EBITDA per tonne came in at ₹785, down from ₹810 in Q1 and ₹955 in the same period last year. Ambuja expects industry demand to grow by 4-5% in FY25, with second-half growth anticipated between 8-10%. In response to recent pricing and cost trends, along with lower volume expectations, Citi has revised down its EBITDA forecasts for FY25, FY26, and FY27 by 14%, 23%, and 16%, respectively.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their due diligence before making investment decisions.
