A director at Ambuja Cements Limited bought 12,500 shares at 597.003INR and the significance rating of the trade was 62/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two yea...
The independent financial analyst theScreener just lowered the general evaluation of AMBUJA CEMENTS (IN), active in the Building Materials & Fixtures industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date February 22, 2022, the closing pri...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
AMBUJA CEMENTS: Expansion to improve near-term volumes but growth visibility remains weak beyond CY22 (ACEM IN, Mkt Cap USD10.7b, CMP INR402, TP INR385, 4% Downside, Neutral) Ambuja Cements (ACEM)’s 2QCY21 results highlight the company’s continued focus on cost reduction, leading to the highest ever EBITDA/t of INR1,495/t. Volumes also grew 53% YoY on the lower base of Jun’20. The commissioning of the Marwar–Mundwa capacity by Sep’21 should drive a 12% CAGR in volumes over CY20–23E. We r...
Q4CY19 result highlights Adj PAT +54% yoy to Rs4.55bn: was above estimates on lower tax (shifted to new tax regime) while operational performance was in-line. Volume increased 6.7% yoy: to 6.54mn tons led by pickup in demand in North and East, growing ahead of industry (mkt share gains). Realisations +2.7% yoy: to Rs4795/t due to sharp price hikes across regions in 1HCY19. This was further augmented by 14% yoy growth in premium products. Hence, revenue was up 9.5% yoy to Rs31.4bn. However, ...
(ACEM IN, Mkt Cap USD5.7b, CMP INR206, TP INR220, 7% Upside, Neutral) Capacity expansion to drive growth, but margin outlook weak** Ambuja Cements' (ACEM) 4QCY19 result reflected normalized cost (after a sharp increase in 3Q) which offset weaker realization, resulting in sequentially flat EBITDA/ton of INR837. Volume grew 7% YoY. ** While volume growth is likely to improve from CY21 driven by new capacity, we expect margins to be weak due to expiry of fiscal incentives at its Maratha plant. We...
We met Ambuja Cement’s management; below are key takeaways CY19 volume to see negative growth: In 9MCY19, Ambuja has reported a 3.3% decline in volumes to 17.52mtpa on weak demand on back of monsoons, elections, liquidity constraints. Considering the sustained sluggishness in demand, volumes are likely to remain flat in 4QCY19. Demand has been the weakest in East on slow movement of government projects, while demand in North has been buoyant. Demand is expected to improve gradually over the ...
Q3CY19 result highlights Adj PAT increased 31.3% yoy to Rs2.35bn: was broadly in line with estimates as higher than estimated realisations were partially offset by higher costs. Volume declined 4.2% yoy: to 5.26mn tons (incl clinker) led by weak demand across regions, particularly in West. This was caused by slowdown in execution of projects due to heavy monsoons. The lower volumes led to 67% utilisation for the quarter (74% in 3QCY18). Realisations up by +4.9% yoy: at Rs4993/t due to sharp...
AMBUJA CEMENTS: Earnings miss as costs rise; cut estimates by 6-14% (ACEM IN, Mkt Cap USD5.8b, CMP INR208, TP INR220, 6% Upside, Neutral) Volumes decline but realizations improve: Volumes declined 5% YoY to 5.23mt in 3QCY19, as demand was impacted by heavy rain and floods in various states. Realizations increased 6% YoY, but were down 2% QoQ to INR4,887/t due to price roll back post May'19 in core markets. Revenues grew 1% YoY to INR26.3b, vs our estimate of INR25.3b. EBITDA/t impacted b...
AMBUJA CEMENTS: Profitability improves on account of higher realizations (ACEM IN, Mkt Cap USD6.2b, CMP INR215, TP INR225, 5% Upside, Neutral) Volumes decline but realizations improve: Volumes declined 9% YoY to 5.8mt in 2QCY19, as the pace of construction activities slowed down due to liquidity issues in the market. However, realizations increased 9% YoY (+11% QoQ) to INR5,117/t, led by strong prices in core markets. Thus, revenue of INR29.8b (-1% YoY) came in higher than our estimate of...
Q1CY19 result highlights Adj PAT up 42.9% yoy to Rs3.9bn: on higher other income (Rs1.3bn ACC dividend; CY18 ACC dividend income was in 2QCY18). Reported PAT at Rs4.27bn (+57% yoy) on tax related write back of Rs515mn. Volume see muted 2.4% yoy growth: to 6.39mn tons (incl clinker) led by strong growth in East (accelerated pre-election spending & faster execution of govt. sponsored housing & infra projects) offset by weak demand in North (extended winters). Utilisation at 86.6% (85% in 1Q18)...
Ambuja Cement (Annual Report Update): Profitability impacted by cost pressure; Increase in working capital further impacts cash flow (ACEM IN, Mkt Cap USD6.4b, CMP INR226, TP INR206, 9% Downside, Neutral) We have analyzed Ambuja Cement’s CY18 annual report. The infrastructure and the government’s ‘Housing for All’ initiative led to the cement industry growing 9% in CY18. But, Ambuja Cement witnessed its profitability getting hurt due to increased raw material and fuel prices. Key takeaways:...
Q4CY18 result highlights Adj PAT up 5% yoy to Rs2.95bn: on lower tax rate and marginal volume growth offset by lower realisations and high costs. Volume see marginal growth with 4.4% yoy growth: to 6.13mn tons led by high growth in premium product portfolio and market share gains in retail segment. Utilisations inched up to 83% (79% in 4Q17). Higher prices & share of premium products aid realisations: Realizations were +2.2% yoy at Rs4671/t. On a qoq basis, realisations were down (-Rs90/t) ...
Ambuja cement: Cracks seen in the form of higher cost/t, lower realization (ACEM IN, Mkt Cap USD5.5b, CMP INR198, TP INR194, 2% Downside, Neutral) Volumes, realizations below estimate: Volumes grew 4.4% YoY to 6.13mt (our estimate: 6.22mt) in 4QCY18. Realizations declined 2.4% QoQ to INR4,671/t (our estimate: INR4,818), led by weaker prices in core markets. Revenue increased 7% YoY to INR28.63b (our estimate: INR29.9b). Margins shrink due to cost push: Cost/t increased 8% YoY (-3% QoQ) t...
Event Holcim Group companies - ACC and Ambuja have announced cement capacity additions. ACC is adding capacity of 5.9mtpa at a cost of US$71/t in Central region (MP and UP), while Ambuja has increased its ongoing clinker capacity addition by 1.4mtpa in Rajasthan. Details Ambuja Cement The company has announced additional clinker capacity of 1.4mtpa at Marwa Mundwa in Rajasthan. This is in addition to the already ongoing capacity addition of 1.71mtpa and will take the total clinker capacity...
Q3CY18 result highlights Adj PAT fell 22% yoy to Rs1.8bn: on absence of dividend from ACC (recorded in 2Q18), in line with our estimates (strong volumes offset costs). Volume see strong traction with 9.1% yoy growth: to 5.49mn tons (incl clinker) led by sustained demand uptick across IHB and infrastructure segment. Utilisations inched up to 74% (68% in 3Q17). Higher prices & share of premium products aid realisations: Realizations were +3% yoy at Rs4761/t. On a qoq basis, realisations impro...
Q2CY18 result highlights Adj PAT +27% yoy to Rs5bn: on strong operational performance (strong beat on realizations and costs vs estimates). Volume +5.6% yoy: to 6.41mn tons (incl clinker vols) led by uptick in demand particularly from IHB and infrastructure segment. Higher prices in East & share of premium products aid realisations: Realizations were flat yoy (+Rs109/t qoq) at Rs4707/t. On a qoq basis, realizations improved due to better prices in the East as well as robust sales of premium...
Ambuja Cements: Higher-than-estimated realizations and cost savings drive margin beat (ACEM IN, Mkt Cap USD6.0b, CMP INR210, TP INR231, 10% Upside, Neutral) Volumes in-line, realization higher than estimate: Volumes increased 5.6% YoY to 6.41mt (in-line), led by healthy growth in the IHB segment. Realizations stood at INR4,707/t (0% YoY, +2.3% QoQ; est. of INR4,632), led by better prices in east and higher proportion of premium products. Margins improve QoQ led by better realization and...
Ambuja Cements: Margins impacted by cost push (acem IN, Mkt Cap USD7.1b, CMP INR237, TP INR255, 7% Upside, Neutral) Muted volume growth: Volumes grew only 3% YoY to 6.22mt (est. of 6.32mt) due to capacity constraints and the impact from unavailability of rakes in the east. Realizations stood at INR4,602/t (+9% YoY, +1% QoQ), exceeding our estimate of INR4,525/t, led by higher pricing in east, partly offset by weak prices in north. The QoQ improvement in realizations was driven by higher o...
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