Stock market analyst Jatinder Sharma has maintained 'buy' rating on Ambuja Cement Ltd stock with 2-3 day target of Rs 131.

According to analyst, the interested investors can buy the stock with strict stop loss of Rs 120.

The stock of the company, on August 31, closed at Rs 125.15 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 128.20 and a low of Rs 82 on BSE.

Current EPS & P/E ratio stood at 9.14 and 13.53 respectively.

Among all scrips of the cement companies, Ambuja Cement Ltd is the best as the volumes of the stock have been rising and the firm has been capable of raising the margins by cutting down input costs.

Moreover, cement makers have slashed the rates of the commodity by around 2-4 per 50-kg bag in western India, comprising in the key Mumbai market.

"Wholesale prices have already been reduced by Rs 2-4, while in the project segment, a similar price cut is expected to be implemented from Wednesday," a large cement stockist said.

The companies that have reduced the cement prices comprised Ambuja Cements Ltd, UltraTech Cement Ltd, Binani Cement Ltd, JK Lakshmi Cement Ltd, ACC Ltd, and India Cement Ltd.

With this cut in cement rate, wholesale rate in the Mumbai market stands at around Rs 245 a 50-kg bag, whereas that in the project section, will be around Rs 225.