ICICI Direct Picked Mid Cap, Large Cap Adani Stocks, Suggests "Buy" For Gains Up To 40%

ICICI Direct has picked 2 leading cement stocks owned by the Adani Group, namely ACC Ltd, and Ambuja Cements Ltd. The brokerage recommends "Buy" the stocks with an attractive target price for a potential upside of up to 40%. Here are the key highlights from the stock:

ACC Ltd.

ICICI Direct with a "Buy" call on the stock of ACC has assigned a target price of Rs 2,600 apiece. With the given target price, the brokerage claims an upside of 40% from its current level. The stock's current market price on NSE is Rs 1,880.05 apiece, down 1.88% from its previous close.

The stock has fallen 2.26% in 1 week, and 22.15% in 1 month, respectively. It has fallen 18.25% in 1 year. It gained 29.76% in 3 years and 13.38% in 5 years, respectively. This is a midcap stock having a market capitalisation of Rs 35,491.79 crore.

ACC – Buy For Rs 2,600 Target Price

According to the brokerage, The valuations of ACC have declined sharply over the past one week. In terms of its valuation, the EV/tonne is trading now at $95/tonne (~9.0x EV/EBITDA), which is ~35% below replacement costs. "Given its comfortable valuations, we retain BUY rating on the stock with a revised target price of Rs 2,600 i.e. 13x FY25E EV/EBITDA," the brokerage has said.

About - ACC Ltd.

ACC (now an Adani group company) is a large cement player with capacity of over 34.5 MT in India and one of the oldest cement players in the industry. The company also manufactures ready-mix concrete and has 50 plants across India.

 

Ambuja Cements Ltd.

The brokerage recommended "Buy" the stock of Ambuja Cements for a return of up to 40% with a target price of Rs 500 apiece. The stock on NSE last traded at Rs 360.50 apiece.

The stock has fallen 3.56% in 1 week, and 29.96% in 1 month, respectively. Over a year, the stock has fallen 3.88%. In 3 years it has given 73.97% positive return. In 5 years it gave 39.17% positive return. This is a large-cap stock having a market capitalisation of Rs 71,840.64 crore.

Ambuja Cements – Buy For Rs 500 Target Price

According to the brokerage, Strong brand with pan-India presence, cost efficient and robust balance sheet are key positives. "With aggressive expansion strategy and focus on cost efficiencies, we expect healthy revenue growth, going forward. Hence, maintain BUY rating. We value Ambuja at Rs 500 i.e.15x FY25E EV/EBITDA," the brokerage has said.

About - Ambuja Cement Ltd.

Ambuja Cement (now Adani group conglomerate) is a large cement player with capacity of 31.5 MT across North (35%), South (24%), West (~20%), East (~21%) in India. It has a large marketing set-up & pan-India presence

Disclaimer

The stocks have been picked from the brokerage reports of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.