Key facts
- Motilal Oswal reiterates a bullish stance on Ambuja Cements.
- The brokerage projects a 24% upside for Ambuja Cements.
- Near-term margin headwinds are acknowledged.
- Strong structural demand is a key driver.
- Capacity expansion and long-term profitability improvement are cited as positive factors.
Motilal Oswal has reiterated its constructive view on Ambuja Cements, forecasting a potential 24% increase in its stock price. The brokerage acknowledges that the company is facing near-term margin headwinds. However, it remains optimistic due to several key factors, including strong underlying demand for cement, ongoing capacity expansion initiatives by the company, and expectations of long-term improvements in profitability. These structural advantages are seen as outweighing the immediate cost pressures.