Ambuja, Shree Cement, ACC shares fall 1-2% after Nomura downgrade

Cement majors Ambuja Cements, ACC and Shree Cement fell 2 percent, 0.9 percent and 0.87 percent, respectively, intraday on June 13 after Japanese brokerage firm Nomura downgraded them to neutral from buy.

Nomura cut the target price for Ambuja Cements to 240 from Rs 295 as it sees may see the lowest volume/earnings growth among largecap peers.

"Company appears to be least geared for an upcycle. We expect a modest 4.2 percent volume CAGR over the next two years," Nomura said, adding in next two years, the company may see standalone earnings at 12 percent CAGR against 27 percent for its peer ACC.

In case of Shree Cement, the brokerage raised price target to Rs 21,500 from Rs 18,000 earlier as earnings outlook look good though valuations are becoming expensive.

Nomura believes cement is in an upcycle, but upside is limited. We expect two-year EPS CAGR of 40 percent, it said.

The brokerage also raised price target for ACC to Rs 1,750 from Rs 1,700 earlier.

"We see 27 percent earnings CAGR over two years, but may be at risk if price increase is lower. With capacity utilisations at 90 percent, cycle upside benefits seem limited," it said.

At 1018 hours IST, Shree Cements was down 0.40 percent at Rs 20,465, ACC down 0.49 percent at Rs 1,571.60 and Ambuja Cements fell 1.25 percent at Rs 217.95 on the BSE.

If you want to know more about our services, please visit Free Stock Tips

Ambuja Cements to report Q4 earnings today; here's what brokerages are expecting

Cement major Ambuja Cements is scheduled to report its March quarter earnings on April 30. According to Prabhudas Lilladher, the company is expected to report net profit of Rs 312 crore, up 14.8 percent year-on-year, (up 29.2 percent quarter-on-quarter).

Net Sales is expected to increase 6.9 percent Y-o-Y (up 6.9 percent Q-o-Q) to Rs 2,954.5 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to jump 12.1 percent Y-o-Y (up 49.5 percent Q-o-Q) to Rs. 456.7 crore, the report added.

ICICIdirect expects Ambuja Cements to report net profit of Rs 294.8 crore up 8.5 percent year-on-year (down 45.1 percent quarter-on-quarter). Net Sales is expected to increase 4.6 percent Y-o-Y (up 4.6 percent Q-o-Q) to Rs 2,995.2 crore. EBITDA is likely to rise 1.7 percent Y-o-Y (up 27.7 percent Q-o-Q) to Rs 515.8 crore, it said.

The infrastructure and the government’s ‘Housing for All’ initiative led to 9 percent growth in the cement industry in CY18, said Motilal Oswal. However, Ambuja Cements' profitability took a hit due to increased raw material and fuel prices, it said. Cash flow from operations before taxes and working capital changes declined 6 percent to Rs 1,810 crore in CY18. The research firm has maintained a neutral stance on the stock.

Emkay Global Financial Services expects Ambuja Cements to report volume growth of 4 percent YoY. It remains underweight on Ambuja Cements.

We provide you sure shot Commodity & Equity Market Tips, Intraday tips, share market tips, Mcx bullion tips, Free stock tips, Crude tips, Stock tips, Future and Cash tips with Technical & Fundamental Research.

Visit: http://ripplesadvisory.com/free-trial.php

Contact us @ +91-9644405056

Source: Moneycontrol

Stocks in the news: Yes Bank, Hero Moto, Ambuja Cements, GMM Pfaudler, JSW Energy

Here are the stocks which are in news today:

Results on April 30: Ambuja Cements, TVS Motor, Kotak Mahindra Bank, Ajanta Pharma, BASF, Can Fin Homes, CONCOR, Exide Industries, Godrej Properties, Gammon India, Gruh Finance, Raymond, Shoppers Stop

Persistent Systems Q4: Net profit down 7.6% at Rs 84.47 crore, dollar revenue down 2% at USD 118.30 million, QoQ

Yes Bank Q4: Net loss of Rs 1,506.6 crore against profit of Rs 1,179.4 crore, NII up 16.3% at Rs 2,505.9 crore versus Rs 2,154.3 crore, YoY.

Hero Motocorp Q4: Net profit fell 24.5% at Rs 730.3 crore versus Rs 967.4 crore, revenue down 7.9% at Rs 7,885 crore versus Rs 8,564 crore, YoY

Castrol India Q4: Net profit up at Rs 185 crore; revenue up 5.3% at Rs 976.2 crore.

NTPC to start commercial operations at its Gadarwala plant w.e.f. April 30

Cipla receives final approval for generic version of Gilead Sciences, Inc’s Letairis

NHPC signs a memorandum of understanding (MoU) with Indian Army for undertaking construction of semi underground bunkers and fully underground caverns at different locations in India

Bank of Maharashtra Q4: Net profit at Rs 72.4 crore versus loss of Rs 113.5 crore, Gross NPA at 16.40 percent against 17.31 percent, QoQ

OnMobile Global incorporates subsidiary company OnMobile Bangladesh Technologies

HCL Technologies partners with Cherwell Software

Shanthi Gears recommended final dividend of Re 1 per equity share

Glenmark launches novel, globally‐researched anti‐diabetes drug Remogliflozin in India

Reliance Nippon Life Asset Management declared interim dividend of Rs 3 per equity share

NBCC submitted a revised resolution plan in respect of Jaypee Infratech to the Interim Resolution Professional

Kotak Mahindra Investments, a wholly owned subsidiary of Kotak Mahindra Bank, completed the sale of its entire equity stake in Matrix Business Services India

Fire broke out in the paints factory of Kamdhenu at Rajasthan

Shankara Building Products approved partial sale of assets including land, building and equipment of Taurus Value Steel & Pipes

Cholamandalam Investment and Finance Company approved subdivision of equity shares

NHPC signs a memorandum of understanding (MoU) with Indian Army for undertaking construction of semi underground bunkers and fully underground caverns at different locations in India

Greaves Cotton to consider Q4 results and proposal for buyback of equity shares on May 2

Precision Camshafts approved to initiate liquidation of a wholly owned subsidiary company PCL (Shanghai) Co

Acuite Rating & Research assigned Acuite BBB- and Acuite A3 rating for long term and short term bank facilities of Mukand

Cipla's wholly owned subsidiary Cipla Medpro South Africa (Pty) completed closing of transaction and acquired 30% stake in Brandmed (Pty)

GMM Pfaudler completed the acquisition of the IMSD of Sudarshan Chemical Industries

JSW Energy secured a purchase order from Telangana State Discoms of 300 MW

Eclerx Services approved buyback price at Rs 1500 per share, and the aggregate amount of buyback upto Rs 2,620 million.

Minda Industries has issued the Commercial Paper of Rs 30 crore

TVS Motor to invest Rs 63,268 in Altizon Systems

HPCL-MRPL merger hits cash hurdle; ONGC rules out share swap: PTI

Avenue Supermarts issued commercial papers of Rs 20 crore

Garden Reach Shipbuilders entered in to contract with GOI for construction and delivery of 8 ASW Swallow Water Craft at an estimated cost of Rs 6,311.32 crore

We provide you sure shot Commodity & Equity Market Tips, Intraday tips, share market tips, Mcx bullion tips, Free stock tips, Crude tips, Stock tips, Future and Cash tips with Technical & Fundamental Research.

Visit: http://ripplesadvisory.com/free-trial.php

Contact us @ +91-9644405056

Source: Moneycontrol