Current price is more than the intrinsic value

Intrinsic Value

Stock has not been able to generate better return on equity than bank FD

ROE vs FD rates

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

The Adani Group’s acquisition of Holcim’s India assets — Ambuja Cements and ACC — for $10.5 billion may further intensify consolidation in the industry due to heightened competition as the big players would want to maintain or enhance their market share.

Cement sector set to see new wave of consolidation | The Financial Express

Business Standard brings you top headlines on Wednesday

Top headlines: Weakening rupee, LIC may exit Ambuja Cements, ACC and more

Insurer owns shares aggregating Rs 7,000 crore

Adani-Holcim deal: LIC may exit Ambuja Cements, ACC via open offer

Ambuja Cements likely to regain its original mojo and become a growth and cost leader again, writes Rakesh Arora.

Adani-Holcim Deal: Perfect Suitor For Ambuja Cements

Shares of ACC and Ambuja Cements soared up to 4% in yesterday’s trade after the Holcim Adani deal. Analysts believe the Adani Group may merge both these entities over the medium term. Find out more

Is Ambuja Cement & ACC merger on the cards after Adani’s Holcim deal?

Shares of ACC and Ambuja Cements jumped as much as 8% and 5%, respectively, on Monday as the Adani Group’s acquisition of both the companies was at a 7-9% premium to Friday’s closing price. Analysts said they, however, don’t expect any immediate re-rating of the stocks after the acquisition.

Immediate re-rating unlikely for ACC, Ambuja Cements

Adani-Holcim deal: Valuation, financing, tax and shareholder options.

Adani Bags Ambuja Cements, ACC: Seven Things To Know

The Adani Group, helmed by billionaire Gautam Adani, has made offers of Rs 385 a share for Ambuja Cements and Rs 2,300 a share for ACC, according to two separate regulatory updates.

Adani family makes open offer for Ambuja Cements, ACC stakes | The Financial Express

Mauritius-based Holderind Investments, which holds a 63% stake in Ambuja Cements, can claim exemption from capital gains tax under the India-Mauritius tax treaty. Holcim is believed to have discussed these issues with tax experts before the deal was signed, a source close to the development said.

No capital gains or any other tax for Adani deal: Holcim CEO Jan Jenisch | The Financial Express

With #AdaniGroup buying Holcim's stake in Ambuja Cements and ACC, Edelweiss' Navin Sahadeo shares his views on inorganic growth and low dividends.
Watch the full conversation: https://bit.ly/3LprEkU

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Edelweiss' Navin Sahadeo On Inorganic Growth & Low Dividends

Billionaire Gautam Adani is buying Switzerland-based Holcim AG’s cement businesses in India for $10.5 billion

Adani offers to buy 26% of Ambuja Cements, ACC from open market

Ambuja Cements Limited is a cement manufacturing company. The Company manufactures Portland Pozollana cement (PPC).

Ambuja Cements Ltd

Ambuja Cements Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Cement sector set to see new wave of consolidation | The Financial Express

Top headlines: Weakening rupee, LIC may exit Ambuja Cements, ACC and more

Adani-Holcim deal: LIC may exit Ambuja Cements, ACC via open offer

Adani-Holcim Deal: Perfect Suitor For Ambuja Cements

Is Ambuja Cement & ACC merger on the cards after Adani’s Holcim deal?

Immediate re-rating unlikely for ACC, Ambuja Cements

Adani Bags Ambuja Cements, ACC: Seven Things To Know

Adani family makes open offer for Ambuja Cements, ACC stakes | The Financial Express

No capital gains or any other tax for Adani deal: Holcim CEO Jan Jenisch | The Financial Express

News Video

Edelweiss' Navin Sahadeo On Inorganic Growth & Low Dividends

Ambuja Cements Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Cement sector set to see new wave of consolidation | The Financial Express

Top headlines: Weakening rupee, LIC may exit Ambuja Cements, ACC and more

Adani-Holcim deal: LIC may exit Ambuja Cements, ACC via open offer

Adani-Holcim Deal: Perfect Suitor For Ambuja Cements

Is Ambuja Cement & ACC merger on the cards after Adani’s Holcim deal?

Immediate re-rating unlikely for ACC, Ambuja Cements

Adani Bags Ambuja Cements, ACC: Seven Things To Know

Adani family makes open offer for Ambuja Cements, ACC stakes | The Financial Express

No capital gains or any other tax for Adani deal: Holcim CEO Jan Jenisch | The Financial Express

News Video

Edelweiss' Navin Sahadeo On Inorganic Growth & Low Dividends

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock