Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 9

Warning: include_once(/newsCentre/captcha.php): failed to open stream: No such file or directory in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 25

Warning: include_once(): Failed opening '/newsCentre/captcha.php' for inclusion (include_path='.:/usr/share/php') in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 25

Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 49

Notice: Undefined variable: storySecID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 57

Warning: count(): Parameter must be an array or an object that implements Countable in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 223

Warning: include_once(./functions/secwiseNewsFunctions.php): failed to open stream: No such file or directory in /me/beta.myiris.com/htdocs/newsCentre/bodyTop.php on line 5

Warning: include_once(): Failed opening './functions/secwiseNewsFunctions.php' for inclusion (include_path='.:/usr/share/php') in /me/beta.myiris.com/htdocs/newsCentre/bodyTop.php on line 5
Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
03 July, 2025 21:39 IST
Maintain BUY on Ambuja Cements: HDFC Securities
Source: IRIS | 24 Feb, 2020, 08.52PM
Rating: NAN / 5 stars.
Comments  |  Post Comment

Notice: Undefined variable: fileR in /me/beta.myiris.com/htdocs/newsCentre/bin/addLinksNew.php on line 17

Notice: Undefined variable: fileR in /me/beta.myiris.com/htdocs/newsCentre/bin/addLinksNew.php on line 142

HDFC Securities said, ''We maintain BUY on Ambuja Cements with a TP of Rs 245 (SOTP based). In 4QCY19, ACEM reported healthy volume growth and margin expansion (though EBITDA came in 7% lower vs our est). Standalone net sales/EBITDA/APAT rose 10/36/28% YoY to Rs 31.36/5.47/3.33bn resp. ACEM also closed CY19 with record high OCF.''

Sales vol firmed up 7% YoY (+25% QoQ) in Q4 to 6.5mn MT (in-line our est), as against 7% fall in the preceding six months. Strong pricing in north/central regions kept NSR 3% higher YoY (despite 5% QoQ slide on weak pricing in east and Maha mkts).

Opex fell 1/5% YoY/QoQ on falling energy costs and fixed cost controls.  Input costs remained flat QoQ (up 3% YoY) mainly on account of higher OPC sales, even though as fuel prices declined. Freight costs also fell 7% YoY (flat QoQ). Cost controls and vol pick up drove op-lev gains.

Unitary EBITDA rose 27% YoY to Rs 837/MT aided by both pricing and cost tailwinds (however, 8% lower vs our est of Rs 911/MT). On QoQ basis, NSR fall got negated by cost moderation, leading to flattish margin. Thus, EBITDA rose 36% on both higher vol and margin expansion. APAT grew at a slower pace of 28% YoY on account of lower other income, slightly higher capital charges and higher tax rate (despite ACEM moving to new corp tax rate).

''We like ACEM for its healthy margin profile and cashflows. Upcoming expansion will arrest market share loss. We maintain BUY with an SOTP based TP of Rs 245 (implies EV of USD 145/MT). We value ACEM’s standalone cement biz at 11x its Mar'22E EBITDA and its 50% stake in ACC at 20% holding disc. We value ACEM at 20% disc to its 5-yr mean EV/EBITDA (and in-line ACC's val) for its continued market share loss amid lack of major expansions in past,'' it concluded.

 Post Comment
Notice: Undefined index: dir in /me/beta.myiris.com/htdocs/newsCentre/comments.php on line 162
>
Name Email
Comment
Security Code type   
Notice: Undefined variable: captchacode in /me/beta.myiris.com/htdocs/newsCentre/comments.php on line 183
into this box
Related Articles

Notice: Constant DOC_ROOT_FOR_HTML_FILES already defined in /me/beta.myiris.com/htdocs/newsCentre/rightSideTabs.php on line 1

Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 470

Notice: Undefined index: secID in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 470
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer


Warning: fopen(/me/beta.myiris.com/htdocs/newsCentre/news_web_count.txt): failed to open stream: Permission denied in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 566

Warning: fwrite() expects parameter 1 to be resource, boolean given in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 567

Warning: fclose() expects parameter 1 to be resource, boolean given in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 568

Notice: Undefined index: key in /me/beta.myiris.com/htdocs/newsCentre/storyShow.php on line 571