Ambuja Cements, one of India's leading cement manufacturing companies, reported a better-than-expected fourth quarter in terms of earnings, much to the delight of investors.
On Wednesday, May 03, shares of Ambuja Cements rose by 1.5 percent following the company's announcement of a 1.6 percent rise in net profit to ₹502.4 crore and an 8.4 percent rise in revenue to ₹4,256.3 crore in the March quarter.
These positive results were attributed to increased government spending on infrastructure and lower raw material costs.
During Wednesday’s trade, the stock opened at a price of Rs. 392.90 per share, negative against the previous close of Rs. 394.40 per share. However, it grew during the early trading session to touch an intraday high of Rs. 400.55.
It was trading at ₹397.80, up by 0.86 percent, at 11:30 a.m. on the NSE.
The stock touched a 52-week high of Rs. 598 on December 09, 2022 and a 52-week low of Rs. 315.30 on February 02, 2023, indicating that at the current level, the stock is trading over 26.16 percent above its 52-week low and 33.47 percent below its 52-week high.
The stock has declined over 26.24 percent in the last six months. However, in the past one year, it has given a positive return of nearly 8 percent. Furthermore, the stock has gained almost 68 percent in the last five years.
In the March quarter, the company's cement sales volumes increased by 8% to 8.1 million tonnes.
The EBITDA of the company in March 2023 has increased by 0.58% to Rs. 1,523.50 crore from Rs. 1,514.67 crore in March 2022. However, the company's EPS has decreased from Rs. 3.32 in March 2022 to Rs. 3.25 in March 2023.
The board has proposed a dividend of ₹2.50 per equity share with a face value of ₹2 each fully paid up for the financial year 2022-23.
The final dividend, which is subject to approval at the AGM, will be paid on or after July 25, 2023, according to the board of directors' recommendation.
Ambuja Cements is a member of the Adani Group, the largest and fastest-growing portfolio of diversified sustainable businesses, the company’s website shows.
According to a MintGenie poll, 37 analysts on an average have a ‘BUY’ call on the stock.