Ambuja Cements comes off 4% post Q2 show

Shares of Ambuja Cementsdeclined 4 per cent on the BSE on Wednesday, a day after it reported a 13 per cent increase in consolidated net profit for the September quarter. Net profit rose 12.73 per cent to Rs 396.01 crore for July-September. Total income for the quarter under review went up by 11.84 per cent to Rs 6,097.53 crore as against Rs 5,451.58 crore in the same quarter last year. Global brokerage CLSA has maintained a 'buy' call on the stock, but cut its target price to Rs 255 from Rs 300, saying the company reported the lowest unit Ebitda in over a decade. CLSA highlighted that a slight miss in realisation, along with higher costs, led to margin pressure on the cement manufacturer. While the near-term outlook is uncertain, the prospects of the sector will depend on the ability to raise prices, CLSA stated. CITI, too, maintained a 'buy' on the stock with a target price of Rs 285, expecting a price hike post-Diwali.