Ambuja Cements, ACC stocks gain on foreign brokerage views

The brokerage firm has also upgraded Ambuja Cements to buy from neutral and raised price target to Rs261 from Rs238, which implies a 23% potential upside from current levels.

Jul 12, 2019 06:07 IST India Infoline News Service

Cement
Shares of Ambuja Cements and ACC gained in today’s trade on the stock exchanges.

According to the media reports, Bank of America Merrill Lynch (BofAML) has upgraded on ACC to neutral from underperforming rating and raised price target to Rs1,695 from Rs1,586, implying a 9% potential upside from current levels.

The brokerage firm has also upgraded Ambuja Cements to buy from neutral and raised price target to Rs261 from Rs238, which implies 23% potential upside from current levels.

The brokerage feels recent price hikes should lead to higher unitary profit growth for ACC and Ambuja Cements, and capacity additions in CY20/21 will ease capacity constraints, the media report added.

Stock view:
ACC Ltd is currently trading at Rs1,580.10, up by Rs29.25 or 1.89% from its previous closing of Rs1,550.85 on the BSE. The scrip opened at Rs1,559 and has touched a high and low of Rs1,580.10 and Rs1,555.10 respectively.

Ambuja Cements Ltd is currently trading at Rs214.95, up by Rs3.4 or 1.61% from its previous closing of Rs211.55 on the BSE. The scrip opened at Rs213.05 and has touched a high and low of Rs216.15 and Rs212.55 respectively.

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