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HDFC Securities maintains Buy on Ambuja Cements with an unchanged target price of Rs 680/share. In Q2 FY26, consolidated volume rose 18% YoY, driven by robust ramp-up across operations. Sundaram Finance reported a mixed operating performance, with higher than-expected credit costs (86 bps) offset by robust NII growth and improved operating efficiency..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Ambuja Cement - Strong volume and margin show continues We maintain Buy with an unchanged target price of Rs 680/share (16.5x its consolidated Sep-27E Ebitda). In Q2 FY26, consolidated volume rose 18% YoY, driven by robust ramp-up across operations. Core volumes (excluding Orient and Penna) grew an industry-leading ~7-8% YoY, with Ambuja Cements leveraging production and sales from acquired units. Price recovery (+3% YoY) and lower opex (-3% YoY, despite ramp-up of less efficient acquired plants) boosted unit Ebitda to Rs 1,031/metric tonne (+INR 250/MT YoY, down a modest Rs 35/MT). We estimate consolidated volume/Ebitda/adjusted profit after tax compound annual growth rates of 16/40/33% respectively for FY25-28E..Sundaram Finance - Mixed Q2; optimistic outlook Sundaram Finance Ltd. reported a mixed operating performance, with higherthan-expected credit costs (86 bps) offset by robust NII growth and improved operating efficiency. Business momentum witnessed an uptick with disbursements growth of 18% YoY, along with positive commentary from the management for H2 FY26. However, asset quality remained weak in Q2 (GS III/NS III at 2.0%/1.13%), mainly due to cash flow challenges across segments, especially MSMEs, which could improve from Q3 as economic activity picks up. As highlighted in our recent company update, Sundaram Finance remains a pristine franchise with steady cross-cycle profitability and loan growth. We have revised our FY26/FY27E earnings estimates to reflect higher credit costs and maintain Add rating, with a revised SoTP-based target price of Rs 4,705 (standalone entity at 3.3x Sep-27 adjusted book value per share; 20% discount to Cholamandalam and HFC entity at 1.4x Sep27 ABVPS)..ACC - Strong volume offtake We maintain Add on ACC Ltd., with a revised target price of Rs 2,330/share (8x its Sep27E consolidated Ebitda). In Q2 FY26, it delivered extremely strong 20% YoY volume growth, led by increased volume contribution from group companies under MSA. Better pricing, lower energy, and freight costs drove up the margin by INR 266/MT YoY to INR 725/MT. The RMC segment also reported strong performance. ACC’s cement capacity should increase by 5.3mn MT in FY26 and another 5.6mn MT by FY28E. The ramp-up of various renewable power within the group helped ACC increase its share of low-cost green power to 30% in Q2 FY26, up 14% YoY..Click on the attachment to read the full report:.Ambuja Cements Q2 Review — IDBI Capital Revises Target Price Post Strong Quarter With Robust Margin Gains.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
