Ambuja Cements Set For A Breakout? SEBI RA Deepak Pal Notes Rebound To ₹575

Ambuja Cements is finally seeing bullish patterns in the daily charts, following consistent selling pressure last week, according to SEBI-registered analyst Deepak Pal.  

On June 17, the stock found support near its 14-day, 55-day, and 200-day exponential moving averages (EMAs). However, after reaching a high of ₹553.15 in the next session, it declined over the next two sessions, hitting a low of ₹531 on June 19, Pal said.

In Friday's trade, the stock opened at ₹532.75, slipped to ₹528.45 intraday, before trading around ₹534. The analyst noted a bullish hammer candlestick, a pattern that often signals a reversal. The stock closed at ₹532.25 on Friday.

Pal noted a similar setup on May 9 that had triggered a rally from ₹513.80 to ₹575.90.

Following the rebound, ₹525 has emerged as key short-term support, the analyst said, adding a sustained movement above the level could retest ₹545.60.

The analyst stated that while the bullish run could push Ambuja's shares towards the ₹570–₹575 range, a stop-loss should be added just below ₹525.

Ambuja's long-term prospects are supported by its strong fundamentals, Pal said. In FY24, the company reported revenues of over ₹35,000 crore and a net profit exceeding ₹3,200 crore, backed by consistent EBITDA margins in the 17–18% range.

The company maintains a nearly debt-free balance sheet (D/E ratio of 0.01), a return on equity (ROE) of around 10–12%, and trades at a fair valuation with a P/E ratio of 31×. It has an installed capacity of over 74 million tons per annum (MTPA) and ambitious plans to scale up to 140 MTPA by 2028.

Ambuja's stock fell 2.9% over the past week and 0.5% year-to-date (YTD).

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