BofAML said ACC traded at 9.4x CY20 expected EBITDA, which is 11 percent below historical average and Ambuja Cements traded at 9.9x CY20 estimated EBITDA which is in-line with historical average.
ACC and Ambuja Cements rallied 2 percent intraday on July 12 after Bank of America Merrill Lynch upgraded and raised price targets.
The global brokerage house upgraded ACC to neutral from underperform rating and raised price target to Rs 1,695 from Rs 1,586, implying 9 percent potential upside from current levels.
It also upgraded Ambuja Cements to buy from neutral and raised price target to Rs 261 from Rs 238, which implies 23 percent potential upside from current levels.
BofAML said ACC traded at 9.4x CY20 expected EBITDA, which is 11 percent below the historical average and Ambuja Cements traded at 9.9x CY20 estimated EBITDA which is in-line with the historical average.
The brokerage feels recent price hikes should lead to higher unitary profit growth for ACC and Ambuja Cements, and capacity additions in CY20/21 will ease capacity constraints.
FOR MORE UPDATES CONTACT US @ RIPPLES ADVISORY OR 9644405057
No comments:
Post a Comment