๐ Ambuja Cement Share Price Rises by 4% on June 14th
๐๏ธ Ambuja Cement, a company of the Adani Group, saw a 4% increase in its share price in early trading on June 14th. With this rally, the stock reached a new 52-week high.
๐ข The company had previously announced the acquisition of Penna Cement Industries Limited for Rs 10,422 crore. This deal will increase Adani Group’s market share in the cement sector in South India. Additionally, Ambuja Cements may also enter Sri Lanka, where Penna Cement is already present through its local subsidiary companies.
๐น Analyst Ratings for Ambuja Cement
- Jefferies: Buy rating with a target price of Rs 735 per share.
- Morgan Stanley: Maintained its rating and set a target price of Rs 665 per share.
- Macquarie: Neutral rating with a target price of Rs 608 per share.
- Citi: Neutral rating with a target price of Rs 675 per share.
- Nomura: Buy rating with a target price of Rs 767 per share.
- CLSA: Sell rating with a target price of Rs 575 per share.
๐ญ Benefits of Penna Cement Acquisition for Ambuja Cement
๐ ๏ธ With the acquisition of Penna Cement Industries, Ambuja Cement will gain access to a large number of limestone reserves. This will help Ambuja Cement achieve an annual capacity of 14 million tons by 2027-28.
๐ The acquisition will also lead to an annual increase of 1.4 million tons in Adani Group’s cement production capacity. This will boost Adani Group’s total cement production capacity to 89.9 million tons per year.
๐๏ธ Expansion Plans and Strategic Benefits
๐ Ambuja Cement’s acquisition of Penna Cement will also strengthen Adani Group’s maritime transport infrastructure. Five bulk cement terminals will be opened in Kolkata, Gopalpur, Karaikal, Kochi, and Colombo.
๐ This acquisition will increase Adani Group’s market share in the cement sector by 2% in both the Indian and South Indian markets.
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