Archive · 2 Jul 2025
Ambuja Cements: Nuvama Upbeat on Capacity Expansion
A financial company called Nuvama thinks Ambuja Cements is a good investment because they are expanding and trying to save money.
The Adani Group, which owns Ambuja, is making more cement.
Ambuja wants to sell a lot more cement soon.
They are also working to be more environmentally friendly.
Nuvama believes the company's stock price will go up, meaning the stock is good to buy.
Nuvama Institutional Equities has a positive outlook on Ambuja Cements.
Adani Group's cement business has a current consolidated capacity of 103 MnT, including Orient Cements.
Ambuja Cements aims for a cost reduction of Rs 500–550 per tonne by FY28E.
The company anticipates a 25% YoY volume growth in FY26E.
Ambuja Cements targets to increase its market share to 17-18% by FY28E and over 20% by FY30E.
- Who
- Nuvama Institutional Equities and Ambuja Cements (Adani Group).
- What
- Nuvama's positive outlook on Ambuja Cements, highlighting expansion and cost-efficiency plans.
- When
- Updates and projections provided by Nuvama.
- Where
- Focus on Ambuja Cements and its operations within the Indian cement market.
- Why
- Due to Ambuja's expansion plans, cost-cutting initiatives, and positive market outlook.
Pricing
Market Outlook
Pricing Trends
Pricing
Cement prices have likely bottomed out.
Market Outlook
Value over volume strategy.
- Current Consolidated Capacity
- 103 MnT
- Capacity by FY26E
- 118 MnT
- Capacity by FY28E
- 140 MnT
- Clinker Capacity by FY28
- 107 MnT
- Cost Reduction Target
- Rs 500–550 per tonne by FY28E
- Expected Volume Growth FY26E
- 25% YoY
- Current Market Share
- 14.5%
- Target Market Share by FY28E
- 17-18%
- Green Power Capacity Commissioned
- 375MW
- Green Power Capacity Target by June 2026
- 1GW
- Green Power Percentage by FY30E
- 60%
- Capex for Greenfield Capacity Addition
- $75–80 per tonne
- Nuvama Target Price
- Rs 694
