Ambuja Cements shares hit one-year high; what's next for this Adani stock?

Shares of Ambuja Cements Ltd scaled their one-year high level in Wednesday's trade. The stock rose 1.49 per cent to hit a 52-week high of Rs 645.90.

Billionaire Gautam Adani's family has recently infused Rs 6,661 crore in Ambuja Cements, raising its stake to about 67 per cent from 63.15 per cent. It has raised the stake by converting warrants into shares, Ambuja stated.

The Adani family expects the cement maker to increase its manufacturing capacity to 140 million tonnes per annum (MTPA) by 2028, from 76.1 MTPA as of December 31, 2023.

"This infusion of funds provides Ambuja capital flexibility for fast-tracked growth, capital management initiatives," said Ambuja Cements CEO Ajay Kapur.

In 2022, the Adani group entered the cement sector with a $10.5 billion deal to buy Ambuja and ACC from Swiss giant Holcim.

Analysts largely remained positive on the counter. "The cement space has been in our radar. On the stock-specific front, we remain positive on Ambuja Cements," Gaurang Shah, Senior VP at Geojit Financial, told Business Today TV. He also liked ACC Ltd shares from the said segment.

"The stock looked positive on charts. Expected targets on the counter will be Rs 700-730," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.

On BSE, around 90,000 shares changed hands today at the time of writing this story. The figure was lower than the two-week average volume of 1.46 lakh shares.

Turnover on the counter came at Rs 5.80 crore, commanding a market capitalisation (m-cap) of Rs 1,27,508.21 crore.

As of March 2024, promoters held a 70.33 per cent stake in the company. Ambuja is scheduled to declare its quarterly results on May 1.