Global brokerage firm Jefferies has advised to bullish on a stock of Adani Group. Jefferies believes that this stock of Adani Group company can go up to Rs 700. The brokerage house has given this view on the shares of Ambuja Cement. This cement company is a company of Adani Group.
Jefferies has described the medium-term outlook of the company as strong in its note and said that this strength will be seen on both fronts of capacity expansion and pricing recovery.
What else did the brokerage house say for Adani Group?
- 140 MTPA Capacity Target by FY28 – According to Jefferies, the company is confident that its capacity will reach 140 MTPA by FY28, which is currently more than 100 MTPA.
- Organic Expansion Plans in FY26 – Apart from this, the company has also planned major organic addition in FY26. This reflects the strong stance of the company and its thinking and confidence about the long term.
Past Performance: Disappointment in Recent Year
Ambuja Cement shares have given negative returns in the last one year to one month period. Within a year, this stock has fallen by 20%. Whereas, in 6 months it has given a negative return of more than 6%. However, in the last 5 years, Ambuja Cement shares have delivered 185% return. 3 years ago, Adani Group bought a large stake in this cement company. Today, Ambuja Cement shares are trading at a level of Rs 539 with a slight decline.
Q1. Why has Jefferies given a ₹700 target for Ambuja Cement?
Jefferies believes Ambuja Cement will benefit from strong capacity expansion and pricing recovery. The company aims to increase capacity to 140 MTPA by FY28.
Q2. Is Ambuja Cement a good investment despite recent underperformance?
Despite short-term negative returns, Jefferies sees long-term potential due to solid fundamentals, long-term planning, and Adani Group’s strategic backing.
Q3. What is the future growth plan of Ambuja Cement?
Ambuja Cement plans major organic expansion in FY26 and aims to increase its cement capacity significantly, positioning itself for future market dominance.
