UBS has reiterated its Sell rating on Ambuja Cements, setting a target price of ₹475, which suggests a 17% downside from the current market price of ₹570. While Ambuja’s Q2FY25 consolidated EBITDA fell 5% short of consensus expectations, UBS noted that the performance was relatively strong considering the weak demand environment, subdued pricing, and recovery from a soft Q1.
Ambuja reported 9% volume growth, with grey cement volumes up 7% and around 4% growth on an organic basis (excluding Sanghi and Penna). This outpaced industry growth and market leader UltraTech. Despite the quarter-over-quarter decline in EBITDA per tonne to ₹783 (a drop of ₹27), Ambuja outperformed peers who saw approximately ₹200 per tonne declines. However, the year-over-year EBITDA per tonne reduction aligns with the broader industry trend.
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.
