Short Term Buy Call For Ambuja Cements

Short Term Buy Call For Ambuja CementsTechnical analyst Somil Mehta of Sharekhan maintained 'buy' rating on Ambuja Cements Limited stock with a target of Rs 135.

According to analyst, the investors can buy the stock with a stop loss of Rs 114.

The stock of the company, on February 09, closed at Rs 118.65 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 166.50 and a low of Rs 100 on BSE.

Current EPS & P/E ratio stood at 8.11 and 14.74 respectively.

Ambuja Cements, the country's third major cement manufacturer, has reported 7% increase in its net profit, which stood at 258 crore for the three month period ended December 2010 in spite of lower cement costs, growing cost strain, and logistics-linked matters at two of its facilities based in north India.

The Holcim Group company registered a 2.2% increased in net sales at 1,827 crore for the three month period ended December.

For the twelve month period ended December 2010, the 25-million-tonne cement manufacturer recorded an increase of 3.8% in its net profit to Rs 1,264 crore.

Company's net sales surged 4.4% to 7,390 crore.

During 2010, Ambuja Cements cement sales volume arose 6.4% to 20 million tonnes but net realisation declined.

Holcim AG, the Swiss cement company, has taken another small, quantified step in the direction of the eventual amalgamation of ACC and Ambuja Cements, its two footholds in the country.

ACC's directors stated that it is folding in three completely owned arm including Lucky Minmat, National Limestone Company and Encore Cement & Additives.