On Friday, Ambuja Cements Ltd. (ACEM:IN) saw a positive shift in its stock rating as Motilal Oswal Securities moved its recommendation from Neutral to Buy. The brokerage firm has set a price target for the stock at INR800.00, indicating a potential upside from its current market price.
The upgrade comes on the back of strategic acquisitions made by Ambuja Cements over the past year, which the firm believes have been value-accretive. These acquisitions are expected to provide a better balance in the company's market presence and are seen as complementary to Ambuja's ambitious plans for organic expansion.
According to the firm's valuation model, Ambuja Cements is now valued at 20.0 times its estimated June 2026 enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). This valuation underpins the new price target of INR800.00 that has been set for the company's shares.
The positive outlook reflects the firm's belief that Ambuja Cements' recent strategic moves have positioned it well for future growth. The company's efforts to expand organically and integrate its acquisitions are expected to contribute to its market strength and financial performance.
Investors and market watchers may consider the revised rating and price target as an indicator of Ambuja Cements' potential trajectory in the near to medium term, as per the assessment of Motilal Oswal Securities. The stock's performance will continue to be watched closely in light of these developments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.