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Business News/ Markets / Stock Markets/  Why Ambuja Cements share price trading flat despite stock market crash?
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Why Ambuja Cements share price trading flat despite stock market crash?

Ambuja Cements share price rebounded strongly from today's low and hit an intraday high of ₹615.60 apiece, logging 4% upside from Monday's low

Stock market today: Ambuja Cements today declared to acquire My Home Group's 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu. (Photo: Mint)Premium
Stock market today: Ambuja Cements today declared to acquire My Home Group's 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu. (Photo: Mint)

Stock market today: Despite stock market crash for the second day in a row, the Indian stock market, Ambuja Cements share price is trading flat during Monday deals. The Adani group company share witnessed some selling pressure in the early morning session, but despite the stock market crash today, Ambuja Cements share price bounced back strongly from its intraday low of 593.45 apiece on NSE and touched an intraday high of 615.60 per share level, logging around 4 percent jump from its intraday low in the stock market today. The Adani group stock witnessed an upside after the latest declaration by the company. The Adani Group company declared on Monday that it has signed an agreement to acquire My Home Group's 1.5 MTPA cement grinding unit in Tuticorin, Tamil Nadu. The acquisition would cost 413.75 crore to Ambuja Cements Ltd.

Ambuja Cements news

Informing Indian stock market exchanges about the acquisition of My Home Group's cement grinding unit in Tamil Nadu, Ambuja Cements said, "Ambuja Cements, the cement and building material company of the diversified Adani Portfolio, signs definitive agreement to acquire My Home Group's 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu. The acquisition estimated at a total value of Rs. 413.75 Crores through internal accruals will aid in enhancing the coastal footprint across the southern markets of Tamil Nadu and Kerela. The total cement capacity of Adani Group stands at 78.9 MTPA."

This acquisition provides access to the southern market customers with an opportunity to experience and instill their trust in one of the most iconic and trusted brands – Ambuja Cement. Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with the coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations.

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Speaking on the development, Ajay Kapur, CEO – Cement Business at Adani Group said, "We are glad to announce this acquisition, strengthening our foothold in the region and aligning perfectly with our commitment to delivering high-quality products and services to our customers. In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilization."

Ambuja Cements share price target

Expecting a big upside in Ambuja Cements share price once the Indian stock market stabilizes, Sumeet Bagadia, Executive Director at Choice Broking said, "Ambuja Cements shares are looking positive on chart pattern. The stock may give sharp upside movement once the Indian stock market stabilizes after the current selling. For those who want to make a fresh entry in this Adani group share, this is the time to enter maintaining a stop loss at 585 apiece. The stock may touch 630 to 640 levels in the near-term."

On the suggestion to Ambuja Cements shareholders, Sumeet Bagadia said, "Existing shareholders of Ambuja Cements Ltd can continue holding the scrip for the short-term target of 640. However, they must maintain stop loss at 585 apiece." Bagadia said that Ambuja Cements shareholders can maintain the buy-on-dips strategy on every big dip till the stock is trading above the 585 per share level.

Stock market crash today

In the last two sessions, the Nifty 50 index has crashed over 400 points, the BSE Sensex has lost over 1300 points whereas the Bank Nifty index has nosedived over 1,000 points. In the broad market, the small-cap index has crashed over 2 percent whereas the mid-cap index has lost to the tune of 1.50 percent since Friday last week.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

 

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 15 Apr 2024, 02:56 PM IST
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