Adani-led Ambuja Cements rallies 8.5%; rich valuation a party pooper
Shares of Ambuja Cements Ltd have been on a roll the last few trading sessions
Shares of Ambuja Cements Ltd have been on a roll the last few trading sessions. Continuing their upswing, shares of the cement manufacturer rallied 8.5% in early deals on Monday to hit a new 52-week high of ₹568 apiece on the National Stock Exchange.
With that, the stock has breached its previous high seen on 16 September.
Both Ambuja and ACC Ltd have been in the limelight after Holcim inked a pact with the Adani Group, earlier this year, to sell its stake in these.
Since then, hopes have been running high that the new management would increase its focus on capacity expansions, where both the companies have been lagging competition, which in turn had weighed on their market share.
So, the Street has welcomed the new management's decision to infuse more funds.
On 15 September, Ambuja's new board approved an infusion of ₹20,000 crore in the company by way of preferential allotment.
A new board has been inducted at both the companies, and the chairman position will be held by Gautam Adani at Ambuja and Karan Adani at ACC Ltd. In a positive rub-off effect, the stock of ACC also rose nearly 3% on Monday.
This is an indication of the promoters' intention for growth and commitment for further investments into this business, said analysts.