Ambuja Cements share price rose more than 3% to hit a 52-week high in early trade today (June 14). This comes after the Adani Group firm announced acquisition of Penna Cement Industries Ltd (PCIL) at an enterprise value of ₹10,422 crore. The company's shares rallied as much as 3.86% to a fresh high of ₹690 apiece on the BSE.
Ambuja Cements buys Penna Cement
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As per the deal, Ambuja Cements will acquire 100% shares of Penna Cement from its existing promoter group- Pratap Reddy and family. The acquisition will be fully funded through internal accruals, the cement manufacturer said in a regulatory filing. Ajay Kapur, CEO & Whole Time Director of Ambuja Cement, “This landmark acquisition is a significant step forward in Ambuja Cement's accelerating growth journey. By acquiring PCIL, Ambuja is poised to expand its market presence in south India and reinforce its position as a pan-India leader in the cement industry.
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What brokerages said on Ambuja Cement stock? Should you buy?
Emkay Global Financial Services maintained its preference for Ambuja Cements and retained its ‘Buy’ call for Ambuja Cements shares and March 2025 target price at ₹700 per share.
{{/usCountry}}Emkay Global Financial Services maintained its preference for Ambuja Cements and retained its ‘Buy’ call for Ambuja Cements shares and March 2025 target price at ₹700 per share.
{{/usCountry}}Antique Stock Broking maintained a ‘Buy’ rating with Ambuja Cements share price target of ₹700 apiece.
Macquarie maintained a neutral stance on Ambuja Cements with a target price of ₹608.
Jefferies suggested that the increasing market share of major players like Ambuja Cements may further squeeze smaller players. The acquisition will increase Ambuja Cements' total capacity to 91 million tonnes, it noted.
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Citi gave Ambuja Cements stock a neutral call with a target price of ₹675 per share and said that the company is delivering on its growth plans.