📈 Ambuja Cement Share Price Soars with Adani Group’s Investment
ICICI Securities has maintained a ‘Buy’ rating on Ambuja Cements, a company of the Adani Group, as business is booming with the share price reaching new heights. The brokerage has increased its target price to ₹831 per share. The closing price on BSE on April 16 was ₹617, a 34.6% increase.
The surge in share price is attributed to the Adani Group’s alleged additional investment of ₹8,339 crore in Ambuja Cement, increasing their stake in the company to 70.3%. This move is expected to increase the company’s production capacity.
In a statement, the company mentioned that the Adani Group had previously invested ₹5,000 crore on October 18, 2022, and ₹6,661 crore on March 28, 2024. With this new investment, the total investment in the company has reached ₹20,000 crore. Adani Group’s stake in Ambuja Cement has increased by 3.6% to 70.3%.
The Adani Group entered the cement sector in 2022 with a $10.5 billion deal to acquire Ambuja Cement and ACC from Swiss company Holcim.
🏗️ Ambuja Cement’s Expansion Plans
ICICI Securities’ latest report predicts that Ambuja Cement’s annual production target will increase by 14% due to the significant investment. Additionally, Ambuja has acquired a grinding unit in Tamil Nadu with a capacity of 1.5 million tons per year, aiming to enhance cement transportation through its subsidiary, Sanghi Industries, and expand in South India.
On April 22, Ambuja Cement is planning to raise funds, signaling positive growth intentions. Brokers believe that Ambuja is ready to kickstart its ambitious expansion plans.
On April 18, Ambuja Cement opened at ₹640.95 on the BSE, marking a 4% increase. The stock closed at ₹616.30, a 0.11% decline. The company’s market capitalization stands at ₹1.22 lakh crore, with a 61% return in the past year.
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