Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Ambuja Cements Ltd: Q2CY21 Result update - YES Securities

Posted On: 2021-07-25 07:30:34 (Time Zone: UTC)

Strong inline numbers drives beat (Retained ADD with TP Rs422/share)

Our view and valuation:

Ambuja delivered strong set of numbers for Q2CY21, volumes grew +53.2%YoY and absolute EBITDA outperformed by +61.2%YoY which was broadly in-line with our estimates (-6% volumes & +4% EBITDA). EBITDA margin came in at 28.5% up by 149bps QoQ/ 112bps YoY on the back of lower clinkerisation cost.

We have kept our estimates unchanged but upward recalibration of ACC estimates lead to accretion of higher holding value for Ambuja resulting in estimates inching northward. At CMP of Rs402, Ambuja is trading at EV/EBITDA of 15.1x on CY22E. On the backdrop of robust cement demand scenario along with strong net sales realization and cost control measures taken by company, we assign an EV/EBITDA multiple of 16x to its standalone business on CY22E and 20% holdco discount to its stake in ACC. Accordingly, we arrive at a TP of Rs422/share for Ambuja, translating into 5% upside. We have an ADD rating on the stock.

Result Highlights:

- Ambuja achieved volumes of 6.42MT for Q2CY21 representing growth of 53.2%YoY while was 6% lower by our estimates. Cement NSR/te grew by 2%YoY to Rs5203/te.

- Net sales for the company stood at Rs 33.7bn reflecting a growth of 54.9%YoY which was broadly in-line with our estimates (2% below).

- Company delivered extremely strong outperformance on EBITDA level with absolute EBITDA for the quarter at Rs9.6bn (4% above our estimates) and EBITDA growth stood at 61.2%YoY. Per ton profitability on blended basis came in at Rs1,495 (vs. est. of Rs 1504) translating into healthy improvement of 5.2%YoY and 9.7%QoQ. Better pricing and lower clinker cost led to strong operational performance for the company.

- Net profit for the company stood at Rs7.2bn which grew by 59%¬¬YoY while was above our estimates by 18% on the back of higher other income.

- Sales of value-added products are up by 69%YoY in Q2CY21 and now contributes ~12% of total sales.

- Capacity expansion project at Marwar Mundwa, Nagaur, Rajasthan, a greenfield integrated plant with 3MTPA clinkerisation and 1.8MTPA cement grinding is expected to commence operations in Q3CY21

- Energy cost improvement - WHRS (Waste Heat Recovery System) projects of 54MW at Bhatapara, Darlaghat and Marwar Mundwa is progressing with good speed.

- Embarking on the next step of our growth journey with brownfield expansion with 1.5MTPA cement grinding unit at Ropar (Punjab).

Shares of AMBUJA CEMENTS LTD. was last trading in BSE at Rs. 402.25 as compared to the previous close of Rs. 399.65. The total number of shares traded during the day was 295451 in over 5484 trades.

The stock hit an intraday high of Rs. 409.5 and intraday low of 401. The net turnover during the day was Rs. 119790509.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Automobile Sector - Monthly Quick View - Aug'21 - Mixed Performance across Segments - Reliance Securities

Axis Securities initiating coverage on ICICI Securities

Company Update - Minda Corporation - Q1FY22 - ICICI Direct

Quant Pick - PVR Ltd - ICICI Direct

Quant Pick - ONGC - ICICI Direct

Peak in the headline wholesale inflation is behind us - WPI August 2021 - Acuité Ratings

Sansera Engineering - IPO - Strong Outlook with Steady Cash Flow - Reliance Securities

APL Apollo Tubes - Journey from a semi-commodity player to a branded one - HDFC Securities

Nazara Technologies Ltd - Upbeat in medium-term, Uncertain over Long-term - YES Securities

IPO Review - Sansera Engineering Ltd - ICICI Direct

Overall index is still 0.3% lower than the pre-pandemic levels - IIP July 2021

YES SECURITIES on Monthly General Insurance & Mutual Funds Data

India urban logistics spaces expected to cross 7 million sq. ft by 2022: JLL

Neogen Chemicals - Breaking into the next orbit with a bang - HDFC Securities

Gladiator Stocks - Bharti Airtel Ltd - ICICI Direct

Gladiator Stocks - V-Guard - ICICI Direct

Balkrishna Industries - Industry export growth accelerates - ICICI Securities

HDFC Life Insurance - Exide Life Acquisition - Maintain ADD - YES Securities

Gladiator Stocks - Grindwell Norton - ICICI Direct

Gladiator Stocks - Godrej Properties - ICICI Direct

Monthly Auto Volumes - August 2021 - ICICI Direct

Stock Tales - Easy Trip Planners - ICICI Direct

IPO Review - Vijaya Diagnostic Centre Ltd - ICICI Direct

AU Small Finance Bank - Attrition at top level remains key challenge; business momentum sustained in Jul/Aug'21 - ICICI Securities

Gladiator Stocks - State Bank of India - ICICI Direct

Gladiator Stocks - PNC Infratech - ICICI Direct

Vijaya Diagnostic Centre Ltd - IPO Note - YES Securities

Consumer Durables Sector - Lockdown mars performance yet again - Institutional Research Desk at HDFC Securities

75% of the employees today want to be in office at least once a week as compared to 52% in October 2020: JLL

Gladiator Stocks - Safari Industries - ICICI Direct

Gladiator Stocks - Interglobe Aviation - ICICI Direct

IPO Review - Ami Organics Ltd - ICICI Direct

Q1FY22 GDP - 31st Aug 2021 - Acuité Ratings & Research

Avanti Feeds - Higher input prices hurt margins - ICICI Securities

Company Update - Restructuring - Aarti Industries - ICICI Direct

Q1FY22 Company Update - MM Forgings - ICICI Direct

Company Update - Arvind Fashions - ICICI Direct

Zomato - Can margins and multiples surprise? - ICICI Securities

Ujjivan Small Finance Bank - Top management change and lumpy provisioning concern to weigh on valuation in near term - ICICI Securities

Bharat Dynamics - Guided missile systems to drive orderbook and profit growth - ICICI Securities

Economy - Continued accommodation necessary despite inflationary risks: MPC minutes - ICICI Securities

InterGlobe Aviation - Annual report analysis: Liquidity management remains the mainstay in anticipation of traffic recovery - ICICI Securities

General insurance - Health remains dominant growth driver; Strong all-round performance by Bajaj Allianz - ICICI Securities

Earnings Wrap Q1FY22: Resilient earnings, limited impact of second Covid wave - ICICI Direct

Fine Organic Industries Results Review - In-line performance - HDFC Securities

Power Plus Sector Update - July witnessed strong ~10% generation growth - HDFC Securities

Information Technology Sector Update - 'Hit Refresh' - HDFC Securities

Maintain ADD on JK Cement - Healthy performance - HDFC Securities

Maintain BUY on Star Cement - Margin recovers on pricing gain - HDFC Securities

Maintain BUY on Sadbhav Engineering - Long road to recovery - HDFC Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020