Gautam Adani led cement stock gains 9% during today’s session

Gautam Adani led cement stock gains 9% during today’s session

by 5paisa Research Team Last Updated: Dec 14, 2022 - 02:32 am 15.5k Views

Ambuja cement touched an intraday high of Rs 572 today as Adani took over as chairman.

Today, Ambuja Cement stock opened at Rs 519 and achieved a high of Rs 572. The share showed a surge in volumes by 2.39 times. Shares of Ambuja Cement soared over 10% to an all-time high on Monday after Indian billionaire Gautam Adani took over as chairman of the firm. The company's board also approved a preferential offer of warrants equal to Rs 20,000 crore to the Adani Group over the weekend.

Ambuja Cements Ltd (Founded in 1993) is one of India’s biggest cement makers, with a presence in 80 countries, with an emphasis on cement, aggregate and concrete. The company put up a greenfield integrated plant with a capacity of 3 MTPA clinker, 1.8 MTPA cement grinding and a waste heat recovery system in Rajasthan with a total investment of Rs. 2,350 crores in Q3 FY21.

About 81% of the revenue from the company is generated from the retail sector and the B2B segment accounts for 19% of the sales. The market cap of the company is Rs 1,10,699 crore.

In a conference Gautam Adani claimed that Ambuja Cement, together with its subsidiary ACC, will become India's most profitable cement company as margins will go up due to rising demand, India is the second largest manufacturer of cement in the world, per capita consumption is merely 250 kg compared to 1,600 kg of China. This is roughly a 7x headroom for growth. He further added that "Within the next five years, the company projects that its capacity will increase from the present 70 million tonnes to 140 million tonnes.

The topline for the June quarter increased by 15% year over year. Despite this, the profit margin for operations fell from 18% to 13.9%.

Share Market Today

How do you rate this article?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Open Free Demat Account
Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest News
Akasa Air Faces Turbulence as 43 Pilot Resignations Disrupt Operations

In a turbulent turn of events, newly launched budget carrier Akasa Air finds itself grappling with a crisis as a wave of pilot resignations threatens to disrupt its operations.

  • Sep 21, 2023
Infosys and Nvidia collaborate for AI technology

Infosys, a prominent Indian IT company, and NVIDIA, a leading US chipmaker, have announced an expanded strategic collaboration. Their shared goal is to leverage generative AI applications and solutions to boost productivity for enterprises worldwide.

  • Sep 21, 2023
SJVN Offer For Sale (OFS) Now Open: Government to sell 4.92%, SJVN falls 10%

In a strategic move, the government is set to sell a 4.92% stake in SJVN (Satluj Jal Vidyut Nigam) at a floor price of ₹69 per share through a two-day Offer for Sale (OFS), as confirmed by an official source.

  • Sep 21, 2023