In the stock market, there was a big fall in the stock of Adani Group after the news of bribery in America recently, but recovery has been seen in Adani stock for the last four trading sessions. On Monday also, Adani Group A stock is trading in the green for the fourth consecutive day.
The share price of Ambuja Cements Ltd, a cement stock of Adani Group, is rising continuously. Recovering from the low level of Rs 495, the stock has come to Rs 540 in just 4 days. Shares of Ambuja Cements were trading at Rs 540.20 on Monday with a gain of 1.50 percent. The market cap of the company is Rs 1.28 lakh crore.

Brokerage firm Motilal Oswal has said that Ambuja Cements is available at attractive valuations and has the potential to deliver strong growth. The brokerage said that shares of Ambuja Cements have fallen by about 30 percent in the last 4 to 5 months amid a lack of demand in the sector, persistent pricing pressure in the markets, and allegations by the US DOJ on the instructions of the Adani Group. The company has denied the allegation.

Motilal Oswal said that keeping aside the current developments at the Adani Group, it believes that Ambuja Cements, the second-largest player in the Indian cement industry, has the potential to deliver strong earnings growth on the back of capacity expansion andcost-savingg initiatives. The company is committed to increasing its capacity to 140 million tonnes per annum by FY28E through organic and inorganic expansion. In addition, it is working on improving cost efficiency and targeting cost savings of Rs 530 per tonne by FY28E.

The brokerage estimates that Ambuja Cements will deliver a CAGR of 12%/16% in consolidated revenue/EBITDA and 13% CAGR in consolidated volumes during FY24-27, driven by capacity expansion. Further, it estimates EBITDA/T to grow to Rs 1,160 by FY27 from Rs 870 in FY25E.

Motilal Oswal said that Ambuja Cements stock is trading at attractive valuations after the recent decline. The company said, "We maintain our positive outlook on the company given the company's growing operational scale, balanced capacity mix in various markets, and cost-saving initiatives." The brokerage has initiated buy coverage for Ambuja Cements with a target price of Rs 710. The

The brokerage's target of Rs 710 means that the stock can give a return of 38 percent from the current market price.

This stock of Adani Group has given a positive return of 22 percent in the last one year and has declined by 6 percent in two years. The shares of the cement company have increased by 44 percent In the last 5 years, shares of Ambuja Cements have given a multi-bagger return of 160 percent.