Ambuja Cements, ACC - Fund Raising Signals Intent Of Capacity Additions: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.ACC Ltd. and Ambuja Cements Ltd., both are net cash positive companies with a cumulative cash balance of Rs 84 billion (as of end June 2022). Fundraising of Rs 200 billion can help the group to increase its cement capacities by 70 million tonnes per annum (25 mtpa inorganic expansion and 45 mtpa organic expansion) by CY26E without leveraging the balance sheet. We have assumed $100/tonne and $130/tonne cost for organic and inorganic expansions respectively and we believe that combined net debt will be Rs 7 billion for ACC and Ambuja Cement in CY26E (we have not assumed improvement in profitability post CY24 or synergy benefits in our base case assumption). Assuming synergy benefits of Rs 200 and Rs 300/tonne respectively for ACC and Ambuja Cements; net cash at CY26-end will be Rs 45 billion..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ambuja Cements, ACC - Fund Raising Signals Intent Of Capacity Additions: Motilal Oswal

Ambuja Cements, ACC - Fund Raising Signals Intent Of Capacity Additions: Motilal Oswal

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