Ambuja Cements
CMP: Rs 135.40
Target Price: Rs 103
Citigroup Global Markets has reiterated its 'sell' rating on Ambuja
Cements even after Holcim's open offer at Rs 154 a share. The
brokerage has a price target of Rs 103 for the stock. According to
Citigroup, the ACL stock is expensive due to limited visibility on
cement pricing, expected decline in 2008 earnings due to capacity
addition in the sector, and risk to exports because of new capacities
coming up in the Middle East. "We have factored in a slowdown in
export volumes and pricing, however, these could be greater than we
forecast," the note added.
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