Ambuja Cements’ acquisition of a stake in Orient Cement has prompted Nomura to maintain its buy call on the stock.
Nomura has set a target price of ₹760, indicating a potential upside of 35.4% from the current market price of ₹561. The brokerage believes the acquisition strengthens Ambuja’s position in South India, providing a significant resource base of limestone reserves with a lifespan of over 30 years. However, Nomura notes that the acquisition could put mid-term pricing pressure on the South Indian market.
With an expected upside of over 35%, Nomura’s analysis suggests now could be a good time to buy Ambuja Cements for long-term gains.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
