Add Ambuja Cements, target of Rs 110: IIFL

IIFL has maintained its add rating on Ambuja Cements with a target price of Rs 110 in its August 13, 2009 research report.

"We reiterate our positive view on Ambuja Cements (ACL), post our meeting with the management. The company’s 2.2mtpa Bhatapara clinker expansion is nearing completion and is likely to be commissioned in September 2009. Post stabilisation of this unit in 1QCY10, ACL will stop buying clinker for its Farakka unit. High-cost coal inventory was exhausted in 2QCY09 and ACL’s average price of imported coal is likely to be 25% lower in 3QCY09 compared to 2QCY09 (40% of the coal ACL uses is imported)."

Source : Money Control.