Ambuja Cements Q3 net profit rises multifold. Is this a stock to buy after Q3 results 2025? | Stock Market News

Adani Group owned Ambuja Cements reported a strong financial results for the quarter ending on December 31, 2024, on Wednesday. The company reported a net profit of ₹1,758.03 crore, marking a massive increase of over 242% compared to ₹513.68 crore in the same period last year.

On a sequential basis, the profit jumped 251 per cent from ₹500.66 crore in the September quarter (Q2FY25).

Meanwhile, the company’s total income surged by nearly 28 per cent to ₹5,814.89 crore in the reviewed quarter, up from ₹4,547.73 crore in the same period last year. On a QoQ basis, it registered a 30 per cent increase from ₹4,478.24 crore in Q2FY25.

Ambuja’s EBITDA dropped 29 per cent year-on-year to ₹600 crore, while its margins shrank by over 700 basis points, declining to 11.9% from 19% in the corresponding quarter of the previous year.

“The company improved its operational efficiency by reducing costs through the use of low-cost imported pet coke. Additionally, it lowered logistics costs by enhancing efficiency, optimizing lead distances, and reducing road per ton per kilometer (PTPK) costs through various freight negotiation initiatives. Ambuja Cement is also benefiting from its recent expansions, including the Sanghi, Asian, and Penna plants, with the Penna plant operating at approximately 85% clinker capacity. Going ahead, the company is well-positioned to capitalize on increasing demand in the housing and infrastructure sectors. Demand is expected to rise further after the Union Budget, supported by pro-infra and housing policies in Budget 2025,” said Palak Devadiga, Research Analyst, StoxBox.

Buy or sell?

Ambuja Cements share price were trading 2.13 per cent lower on Thursday’s trading session, finally closing at ₹511 on January 30.

According to Sumeet Bagadia, Executive Director at Choice Broking, Ambuja Cements share price technical chart pattern suggests that it may witness a bounce back from the support levels.

“Ambuja Cements shareholders are advised to hold the scrip, maintaining a stop loss at ₹480 for the short-term target of ₹550 to ₹560. Fresh investors can also initiate momentum buying at the current market price in Ambuja Cements shares for the short-term target of ₹550 to ₹560. the stock may become bullish after giving a fresh breakout above ₹560 apiece on a closing basis,” Bagadia said.