Synopsis:
A leading Adani Group cement stock is in focus after a major brokerage projected a 21% upside. Strong earnings, cost efficiency, capacity expansion, and a wide distribution network support its growth. Demand outlook and pricing discipline further boost investor confidence.
As the world’s second-largest producer, India’s cement industry is a vital engine for its economy. In May 2025, the sector grew by 9% year-over-year, reaching a production of 39.6 million metric tonnes. The market is projected to grow by 6.6% to reach $18.39 billion in 2025, driven by strong demand from housing and infrastructure development.
With a market capitalization of Rs 1.48 lakh crore, the shares of Ambuja Cements Ltd were trading at Rs 602.05 per share, increasing around 1.54 percent as compared to the previous closing price of Rs 592.90 apiece.
Brokerage Recommendations
Motilal Oswal, one of the well-known brokerages in India, has maintained its ‘Buy’ call on this Adani group stock with a target price of Rs 730 apiece, indicating a potential upside of 21 percent from Friday’s price of Rs 602 per share.
As per the brokerage, the company delivered a strong performance with consolidated EBITDA rising 52% year-on-year to ₹1,960 crore, about 8% above estimates. The beat was driven by better-than-expected realization, which came in 3% higher than the brokerage’s projections.
Motilal Oswal highlights Ambuja Cements’ upbeat outlook, with FY26 demand growth now pegged at 7–8%. Strong pricing discipline and a ₹530/ton cost-cutting plan 40% already achieved underscore operational efficiency. Capacity expansion is progressing well, with 13mtpa more expected by FY26. This reflects the company’s solid growth trajectory and focus on profitability.
Motilal Oswal maintains earnings estimates for FY26/FY27 and introduces FY28 projections, valuing the stock at 20x Jun’27E EV/EBITDA. With fair valuations at 21x/17x FY26/FY27, reflecting steady growth expectations.
Ambuja Cements delivered a strong Q1 FY26 performance with net profit rising over 23% to ₹970 crore, up from ₹783 crore last year. Revenue from operations also grew 23% to ₹10,289 crore. The Adani Group-backed company’s robust growth reflects strong demand, operational efficiency, and continued momentum in the infrastructure and construction sectors.
Ambuja Cement, part of the Adani Group, has a robust presence across 31 states and 640+ districts. With a cement capacity of 104.5 MTPA, 24 integrated units, and 22 grinding units, it holds an 80% share of blended cement. Its vast distribution includes over 1.15 lakh channel partners and 114 ready-mix concrete plants, supporting a strong nationwide reach.
Ambuja Cements, along with ACC, commands a strong 74% share in the trade cement segment. With high patronage from contractors, professionals, and institutional clients, premium products contribute 33% of trade volume. Geographically, capacity is well spread, with the southern zone leading at 27%, followed by the western and eastern zones at 23% each.
Written by Abhishek Singh
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