Adani Group Stock,
Ambuja Cements Limited (ACEM) has presented its most recent investor presentation, in which it details its medium-term growth strategies for increasing capacity and efficiency. The company has made it clear that it can double its capacity from 67.5 million MT to 140 million MT using the internal resources of both ACC and Ambuja.
“We believe that the company’s capex is aggressive, and because the greenfield units will take time to implement, the overall capex will actually be lower. We also think that aggressive growth plans will lead to competition for market share, which will lower cash flows than expected. Over the next four to five years, we anticipate the company to deliver better volume growth and margin expansion, and the stock is currently available at reasonable valuations. 453.
In its roadmap for ACC/Ambuja Cements’ future growth and profitability, Adani Group reiterates its goal of doubling cement capacity to 140 MT by FY28 (16 percent CAGR) through internal accruals.
“We believe that the majority of these announcements were in line with forecasts and continued as usual.” Our estimate for FY23-25E has not changed. Keep up with purchase with an objective cost of 470 Stock valuation at 13x FY25 EV/EBITDA. According to Antique Stock Broking, a major trigger for the stock is still any inorganic growth announcement that enables the company to gain market share.
The cement companies ACC and Ambuja Cements, which were purchased from Switzerland’s Holcim for $10.5 billion last year, are part of the Adani group’s strategy of diversifying its business interests.
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