Views on Ambuja Cements Ltd 2QCY2016 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Cements, Angel Broking) on Ambuja Cements Ltd 2QCY2016 Results:

"Ambuja Cements has come out with an impressive set of results for the quarter with 77% YoY growth in PAT at INR 400 cr. While the volume for the quarter declined 2% YoY to 5.76 Mn Tons compared to 5.88 Mn Tons. Realisations / Ton have been strong which was up 4.1% YoY to INR 4412 cr better than expected. While net sales grew by only 2% to INR 2541 cr, EBITDA grew by 57% YoY to INR 601 cr.

EBITDA margins expanded to 23.6% vs 18.6% QoQ largely aided by savings in fuel cost and freight cost. The broader numbers are impressive and the outlook also is positive for the company now, as the parent company of Ambuja has got the approval for simplification of the holding structure in India. However, looking at the recent rally in the stock we will advise investors to wait for any corrections to get into the stock. At the current, level we have a NEUTRAL rating on the stock."

Shares of AMBUJA CEMENTS LTD. was last trading in BSE at Rs.271.15 as compared to the previous close of Rs. 271.4. The total number of shares traded during the day was 162300 in over 1787 trades.

The stock hit an intraday high of Rs. 274.65 and intraday low of 269.45. The net turnover during the day was Rs. 44320329.

Source : Equity Bulls

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