Gautam Adani led cement stock gains 9% during today’s session

5paisa Research Team 14th December 2022 - 02:32 am

Ambuja cement touched an intraday high of Rs 572 today as Adani took over as chairman.

Today, Ambuja Cement stock opened at Rs 519 and achieved a high of Rs 572. The share showed a surge in volumes by 2.39 times. Shares of Ambuja Cement soared over 10% to an all-time high on Monday after Indian billionaire Gautam Adani took over as chairman of the firm. The company's board also approved a preferential offer of warrants equal to Rs 20,000 crore to the Adani Group over the weekend.

Ambuja Cements Ltd (Founded in 1993) is one of India’s biggest cement makers, with a presence in 80 countries, with an emphasis on cement, aggregate and concrete. The company put up a greenfield integrated plant with a capacity of 3 MTPA clinker, 1.8 MTPA cement grinding and a waste heat recovery system in Rajasthan with a total investment of Rs. 2,350 crores in Q3 FY21.

About 81% of the revenue from the company is generated from the retail sector and the B2B segment accounts for 19% of the sales. The market cap of the company is Rs 1,10,699 crore.

In a conference Gautam Adani claimed that Ambuja Cement, together with its subsidiary ACC, will become India's most profitable cement company as margins will go up due to rising demand, India is the second largest manufacturer of cement in the world, per capita consumption is merely 250 kg compared to 1,600 kg of China. This is roughly a 7x headroom for growth. He further added that "Within the next five years, the company projects that its capacity will increase from the present 70 million tonnes to 140 million tonnes.

The topline for the June quarter increased by 15% year over year. Despite this, the profit margin for operations fell from 18% to 13.9%.

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5paisa Research Team

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