Leading financial services firm Jefferies continues to uphold a ‘buy’ rating on Ambuja Cements, maintaining a target price of Rs 540. This positive outlook is underpinned by Ambuja’s strategic move to enhance its capacity, aiming for an increase of 100–110 million tonnes per annum by the fiscal year 2026–27.
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In a report on Ambuja Cements, Jefferies highlighted the recent completion of the Sanghi Industries acquisition. The acquisition, valued at an enterprise value (EV) of Rs 5,185 crore, implies an estimated EV per tonne of $70–75. Post-acquisition, Ambuja Cements’ total capacity stands at an impressive 74.6 million tonnes per annum, with an additional de-bottlenecking opportunity of 1.5 million tonnes per annum.
The acquisition aligns with Ambuja Cements’ growth strategy, providing the company with a stronger market presence and increased production capabilities. Jefferies underscores the significant potential for further expansion, with Ambuja Cements slated to augment its capacity by an additional 100–110 million tones per annum by the fiscal year 2026–27.
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This strategic move positions Ambuja Cements to capitalize on growing demand in the construction and infrastructure sectors, reinforcing its status as a key player in the cement industry. Investors and industry analysts are closely watching these developments, considering the positive trajectory indicated by Jefferies’ ‘buy’ recommendation and the company’s ambitious growth plans.
