Ambuja, Shree Cement, ACC shares fall 1-2%
Cement majors Ambuja Cements, ACC and Shree Cement fell 2 percent, 0.9 percent and 0.87 percent, respectively, intraday on June 13 after Japanese brokerage firm Nomura downgraded them to neutral from buy. Nomura cut the target price for Ambuja Cements to 240 from Rs 295 as it sees may see the lowest volume/earnings growth among largecap peers. "Company appears to be least geared for an upcycle. We expect a modest 4.2 percent volume CAGR over the next two years," Nomura said, adding in next two years, the company may see standalone earnings at 12 percent CAGR against 27 percent for its peer ACC. In case of Shree Cement, the brokerage raised price target to Rs 21,500 from Rs 18,000 earlier as earnings outlook look good though valuations are becoming expensive.
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