The company also halted capital expenditure, foreclosing some of the engineering and construction contracts given for ongoing greenfield and brownfield expansion.
Shares of Ambuja fell as much as 4.8% in Wednesday’s trading before closing the day at ₹382.75 per share on the NSE, down 2.95% from the previous close.
“Near-term growth to remain low,” said Morgan Stanley in a client note. However, the US Brokerage firm remains positive on the medium-term prospects and believes the profitability should improve with the group’s synergies and expansion plans.
Ambuja Cement was forced to halt operations at its Himachal Pradesh plants for 50 days due to the ongoing dispute between the truck operators’ union and the Adani Group.
Of the 24 analysts who reviewed the company’s fourth-quarter earnings, 13 of them maintained their ‘buy’ or ‘outperform’ rating on the stock. Eight of them remained ‘neutral’ and three of them have a ‘sell’ rating on the stock, showed a Bloomberg poll of analysts.
The consensus price target on Ambuja’s stock marginally increased by 0.25% to ₹436.02 per share.
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