Ambuja Cements Breaks Out: Analyst Targets ₹815 Mid-Term
Ambuja Cements has made a significant breakout, with shares surging after breaking a 9-month range. The stock’s price has been on an upward trajectory, and analysts are now eyeing a mid-term target of ₹815, as per Priyank Sharma, an analyst at Sharekhan. This breakout above ₹561.90 signals a trend resumption for the company, backed by its 2.4 MTPA expansion plans in West Bengal.
The buy zone for Ambuja Cements is up to ₹500, with a stop-loss at ₹485. The stock has already seen a 6.4% year-to-date (YTD) gain, with momentum building. This breakout is a significant development for investors, indicating a potential multi-bagger opportunity.
Why the Breakout Matters
The breakout above ₹561.90 is a significant technical event, indicating a resumption of the uptrend in Ambuja Cements’ stock price. This level had been a key resistance zone for the company, and its breach signals a potential new high.
The company’s expansion plans in West Bengal are a key driver of this breakout. The 2.4 MTPA capacity expansion is expected to increase the company’s market share and improve its profitability. This expansion will also provide a significant boost to the company’s capacity, allowing it to capitalize on the growing demand for cement in the region.
Why ₹815 is a Realistic Target
Priyank Sharma, the analyst at Sharekhan, believes that ₹815 is a realistic mid-term target for Ambuja Cements. This target is based on the company’s fundamentals, including its expansion plans and improving profitability.
The company’s financial performance has been improving in recent quarters, driven by its cost-saving initiatives and improving demand for cement. The expansion plans in West Bengal are expected to further improve its profitability, making ₹815 a realistic target.
Buy Zone and Stop-Loss
The buy zone for Ambuja Cements is up to ₹500, with a stop-loss at ₹485. This means that investors can buy the stock up to ₹500, with a stop-loss at ₹485 to limit their losses in case the stock declines.
The buy zone is based on the stock’s historical price action, with the stock having previously traded at this level. The stop-loss is set at ₹485 to limit the potential loss in case the stock declines.
Conclusion
Ambuja Cements has broken out above ₹561.90, signaling a resumption of the uptrend in its stock price. The company’s expansion plans in West Bengal are a key driver of this breakout, and analysts are eyeing a mid-term target of ₹815.
Investors can buy the stock up to ₹500, with a stop-loss at ₹485. The stock has already seen a 6.4% YTD gain, with momentum building. This breakout is a significant development for investors, indicating a potential multi-bagger opportunity.
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