Shares of Ambuja Cements opened at ₹422.20 against a previous close of ₹418.85 and extended gains by 2% to hit an intraday high of ₹424.24 on the NSE. According to reports from Essential Business Intelligence, the stock last traded 1.44% higher at ₹424.75 apiece, outperforming the benchmark Nifty 50 index which gained 0.45%. The company commands a market capitalization of ₹1,05,480.49 crore, as per stock exchange data. The rise in Ambuja Cements share price comes as domestic equity benchmarks extended gains for the second consecutive trading session, with the NSE Nifty 50 rising 0.36% to 24,093.30 and the BSE Sensex gaining 0.4%, or 296 points, to 77,218.78 in morning trade on July 2. As per CNBC TV18, shares are currently trading 1.7% higher at ₹426.5 on Thursday, though the stock remains 32% down from its 52-week high of ₹624 and 24% lower so far in 2027.
Global brokerage Bernstein retained its bullish view on Ambuja Cements and upgraded it from 'market perform' to 'outperform' with a revised target price of ₹486, down from the previous target of ₹542. As reported by Essential Business Intelligence, the upgrade is largely driven by Bernstein's conviction that the recent operational underperformance of Ambuja Cements is poised to reverse. The brokerage expects normalizing input and operational costs to act as a significant tailwind, with this stabilization projected to drive a meaningful recovery in the company's EBITDA per tonne during the second half of the year. According to CNBC TV18, Bernstein believes the valuation gap between India's two largest cement producers has become unsustainable, with Ambuja currently trading at an enterprise value of around ₹1.2 lakh crore despite having 109 MTPA of capacity. This compares unfavorably to UltraTech which trades at an enterprise value of around ₹3.6 lakh crore with 206 MTPA capacity, and Shree Cement commanding an enterprise value of about ₹90,000 crore with 69 MTPA capacity.
The rise in Ambuja Cements share price comes as domestic equity benchmarks extended gains for the second consecutive trading session. According to reports from Essential Business Intelligence, the NSE Nifty 50 rose 0.36% to 24,093.30, while the BSE Sensex gained 0.4%, or 296 points, to 77,218.78 in morning trade on July 2. However, the stock has faced significant pressure with a 4% decline in one month, 25% drop on a year-to-date basis, and 29% decline in the last one year. Analysts note that Ambuja Cements is focusing on optimizing its margins and capitalizing on the upcoming demand cycle in the cement sector, supporting the brokerage's upgraded stance. As per CNBC TV18, the stock is down 24% so far in 2027, reflecting broader market challenges despite the positive analyst sentiment.
The upgrade reflects strong analyst confidence in Ambuja Cements, with 46 analysts covering the stock, of which 33 have a 'buy' rating, 10 say 'hold', while three others have a 'sell' rating. According to CNBC TV18, Bernstein believes Ambuja is currently valued at roughly the cost of building a new greenfield cement plant, which it believes does not reflect the company's scale or earnings potential. The brokerage expects Ambuja's ongoing capacity expansion and operational improvements to help narrow the EBITDA per tonne gap with both UltraTech and Shree Cement going forward. Bernstein believes stronger execution over the coming years should drive a re-rating as the company closes the profitability gap with larger peers, presenting a highly favorable risk-reward scenario for investors despite the reduced target price.
