External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

External broker reports(aggregated public sources)

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>Summary of change in recommendation of our coverage universe: We have cut targets prices for our covered companies by 10-30% on account of reduced earnings expectations as well as lower target multiples.</li></ul><div><div><div><div><ul><li>Near term earnings outlook weak and positive triggers missing: We expect earnings to remain weak for the cement sector for the next two quarters on account of elevated costs and weak realizations amid a seasonally weak demand period.</li></ul><div><div><div><div><ul><li>Reversal in coal and crude prices can offer some solace: We believe that high competitive intensity will subside once the inflationary pressures recede and hence reversal of higher coal and crude prices is important.</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Summary of change in recommendation of our coverage universe: We have cut targets prices for our covered companies by 10-30% on account of reduced earnings expectations as well as lower target multiples.Near term earnings outlook weak and positive triggers missing: We expect earnings to remain weak for the cement sector for the next two quarters on account of elevated costs and weak realizations amid a seasonally weak demand period.Reversal in coal and crude prices can offer some solace: We believe that high competitive intensity will subside once the inflationary pressures recede and hence reversal of higher coal and crude prices is important.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cement Sector - Headwinds Galore; Turning 'neutral' on the Sector

<div><div><div><div><ul><li>Deal contours in brief: Holcim, through an offshore entity, owns 63.11% stake in Ambuja, which in turn owns 50.05% stake in ACC.</li></ul><div><div><div><div><ul><li>Why is Holcim selling its assets in India?: Holcim group had earlier announced its “Strategy 2025”, wherein it had outlined its focus on increasing its share of revenue from the ‘solutions &amp; products’ business.</li></ul><div><div><div><div><ul><li>How Adani pipped other bidders: Given the strong brands, pan-India network and large capacities, ACC- Ambuja assets were sought by multiple stakeholders.</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Deal contours in brief: Holcim, through an offshore entity, owns 63.11% stake in Ambuja, which in turn owns 50.05% stake in ACC.Why is Holcim selling its assets in India?: Holcim group had earlier announced its “Strategy 2025”, wherein it had outlined its focus on increasing its share of revenue from the ‘solutions &amp; products’ business.How Adani pipped other bidders: Given the strong brands, pan-India network and large capacities, ACC- Ambuja assets were sought by multiple stakeholders.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Cement Sector - Landmark Deal – New Chapter Unfolds in Cement Industry

Equity Bottom-Up

<div><div><div><div><ul><li>1QCY22 result highlights: For 1QCY22, volume increased by 3.5% YoY to 7.5mn mt (including clinker) whereas realization/mt increased by 0.5% QoQ to Rs5,241 (lower than our estimate).</li></ul><div><div><ul><li>Capex plans reiterated: The company is on track to commission 1.5mn mt grinding unit at Ropar (Punjab) in CY23.</li></ul><div><div><div><div><ul><li>Volume from new capex likely to kick in: The 3mn mt clinker plant at Marwar Mundwa (Rajasthan) was commissioned in Sept’21 and the 1.8mn mt grinding unit is likely to be commissioned very soon at the same location.</li></ul></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

1QCY22 result highlights: For 1QCY22, volume increased by 3.5% YoY to 7.5mn mt (including clinker) whereas realization/mt increased by 0.5% QoQ to Rs5,241 (lower than our estimate).Capex plans reiterated: The company is on track to commission 1.5mn mt grinding unit at Ropar (Punjab) in CY23.Volume from new capex likely to kick in: The 3mn mt clinker plant at Marwar Mundwa (Rajasthan) was commissioned in Sept’21 and the 1.8mn mt grinding unit is likely to be commissioned very soon at the same location.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ambuja Cements Ltd - Lower Costs Drive Sharp EBITDA Beat

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul>
<li>ACL reported encouraging Volume/Revenue growth of 3%/8% YoY but witnessed notable EBITDA/APAT de-growth of 19%/25% respectively YoY in Q1CY22</li>
<li>We maintain our BUY rating on the stock with a revised TP of Rs 4,350/share (which includes Rs 275/share for the company’s stake in PMAG) as we value the stock at 17x its FY24E EPS</li>
<li>TP implies an upside potential of 13.5% from the CMP.</li>
</ul>
<p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>


ACL reported encouraging Volume/Revenue growth of 3%/8% YoY but witnessed notable EBITDA/APAT de-growth of 19%/25% respectively YoY in Q1CY22
We maintain our BUY rating on the stock with a revised TP of Rs 4,350/share (which includes Rs 275/share for the company’s stake in PMAG) as we value the stock at 17x its FY24E EPS
TP implies an upside potential of 13.5% from the CMP.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ambuja Cements: Inline Result; Capacity Expansion on Track

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<div><ul><li>Capacity additions to drive volume growth - <span style="font-size: var(--content-font-size);">Ambuja Cements (ACEM) is a leading cement player with an installed cement capacity of 31.5mtpa as of CY21.</span></li></ul><div><div><div><ul><li>Announces capacity expansion in the East, timely completion is vital.</li></ul><div><div><div><div><ul><li>Robust volume growth and efficiency measure to drive profitability.</li></ul></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Capacity additions to drive volume growth - Ambuja Cements (ACEM) is a leading cement player with an installed cement capacity of 31.5mtpa as of CY21.Announces capacity expansion in the East, timely completion is vital.Robust volume growth and efficiency measure to drive profitability.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ambuja Cements - Emphasizing on Growth, Efficiency and Sustainability

India

Grasim Industries Limited is a diversified operating company and part of the Aditya Birla group. The group manufactures a wide range of products, including Viscose Staple Fiber(VSF), cement, chemicals and textiles.

Shree Cement Ltd. manufactures cement and cement products. The Company sells its products primarily in Northern India under its own brand names.

ACC Limited  manufactures a range of cements and blended cements. The Company also manufactures gypsum and refractory products such as Brown Tabular Alumina. The Company provides turnkey and application consulting services for setting up and operating cement plants and refractories. The Company owns cement plants throughout India.

JK Cement Limited produces and manufactures Portland and White cement products.

Dalmia Bharat Limited holds cement and power businesses. The Company's interests include cement, power and refractory businesses.

The Ramco Cements Limited manufactures cement, ready mix concrete and dry mix products.  The Company also exports  cement and owns and operates a private sector wind mill power generating farm.

Century Textiles and Industries Ltd. manufactures cement, cotton textiles and cotton yarn. The Company manufactures denim, shirts, suits, fabrics and dress materials, bed linens, home furnishings, viscose filament yarn, viscose tire yarn, caustic soda, sulphuric acid, liquid chlorine, hydrochloric acid, writing and printing papers, packaging board, and rayon and wood-based pulp.

Orient Refractories Ltd. fabricates metal products.  The Company manufactures slide gate plates, nozzles and well blocks, tundish nozzles, bottom purging refractories and top purging lances, slag arresting darts, basic spray mass for tundish working lining, and castables.

Birla Corporation Limited is a manufacturing company that produces and sells cement, automobile trim parts, jute goods, synthetic and cotton yarns, and PVC floor coverings and coated fabrics. The Group also manufactures calcium carbide, ferromanganese, silico manganese, oxygen and iron and steel castings.

Ultra Tech Cement Ltd. produces a wide range of cement products. This Company represents the cement operations of Larsen & Toubro which were spun-off into a separate entity in which Grasim Industries holds a majority interest.

Anhui Conch Cement Company Limited manufactures cement products. The Company produces silicate cements, slag silicate cements, composite silicate cements, cement clinkers, and other products. Anhui Conch Cement Cement markets its products throughout China and worldwide.

The Siam Cement Public Company Limited is a diversified industrial company. The Company's operations include cement manufacturing, petrochemicals manufacturing, paper manufacturing, building product manufacturing, and distribution.

Eagle Materials Inc. manufactures and distributes cement, gypsum wallboard, recycled paperboard, and concrete and aggregates.  The Company's products are used in the construction of homes, commercial and industrial buildings, and governmental buildings across the United States.

James Hardie Industries Plc manufactures building products for new home construction and remodeling.  The Company's products include fiber cement siding, backerboard, and pipe. James Hardie Industries operates in the United States, Australia and New Zealand.

Taiwan Cement Corporation manufactures and markets cement.  The Company's products include Portland cement, high strength cement, oil well cement, and sludge treatment agents.  Through its subsidiaries, the Company also operates in transportation, construction, and information products businesses.

Buzzi Unicem S.p.A., through subsidiaries, produces and markets building materials.  The Company produces cement and ready-mix concrete in Italy and the United States.

Heidelberg Materials AG produces and markets building materials and solutions. The Company offers cement, aggregates, and ready-mixed concrete. Heidelberg Materials serves customers worldwide.

Cemex SAB de CV is a building products company. The Company produces, distributes, and markets cement, ready-mix concrete, aggregates, and related building materials. Cemex operates throughout the Americas, Europe, Africa, the Middle East, and Asia.

Boral Limited is a manufacturer and supplier of building and construction materials in Australia and internationally.  Boral supplies building products to the residential and commercial building markets, operates clay brick business in the U.S. (for clay roof tiles and fly ash) along with the production of plasterboard, timber products and concrete products.

Ambuja Cements Limited manufactures cement in India. The Company owns specially designed ships and terminals for bulk transportation of its products. Ambuja Cement sells most of its products domestically, but also has a subsidiary that markets the Group's items in Sri Lanka.

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Ambuja Cements (ACEM IN)

Cement Sector - Headwinds Galore; Turning 'neutral' on the Sector

We are turning ‘neutral’ on the cement sector as we believe that there are multiple headwinds, which will inhibit earnings growth and in turn lead...

Nirmal Bang

Cement Sector - Landmark Deal – New Chapter Unfolds in Cement Industry

Adani group has sealed the deal to acquire Ambuja and ACC from Holcim in one of the biggest M&A deals in the Indian cement industry.

Nirmal Bang

Ambuja Cements Ltd - Lower Costs Drive Sharp EBITDA Beat

Ambuja Cement (ACEM) reported extremely good set of results for 1QCY22, with EBITDA of Rs7.9bn, 22% ahead of our estimate, largely driven by lower...

Nirmal Bang

Ambuja Cements: Inline Result; Capacity Expansion on Track

We maintain our BUY rating on the stock with a revised TP of Rs 4,350/share (which includes Rs 275/share for the company’s stake in PMAG) as we...

Axis Direct

Ambuja Cements - Emphasizing on Growth, Efficiency and Sustainability

Capacity additions to drive volume growth ; Ambuja Cements (ACEM) is a leading cement player with an installed cement capacity of 31.5mtpa as of CY21.

Motilal Oswal

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