Ambuja Cements’ share price surged by over 4% in early trading on the BSE on Friday, August 23, following reports of a promoter-led stake sale via a block deal. The stock opened at ₹654, up from its previous close of Rs 632.90, and quickly climbed 4.23% to reach Rs 659.70. By 9:25 am, the shares were trading 3.30% higher at Rs 653.80.

Promoter’s Stake Sale Today

According to media reports, the Adani Group, a major stakeholder in Ambuja Cements, is planning to sell nearly 3% of its stake through block deals on Friday, aiming to raise up to $500 million, approximately Rs 4,197 crore.

Recent Acquisitions and Stock Performance

As of the June 2024 quarter, the Adani Group held a 70.33% stake in Ambuja Cements. The group completed its acquisition of Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group for $6.4 billion in September 2022.

In June 2023, Ambuja Cements announced the acquisition of Penna Cement Industries Ltd (PCIL) at an enterprise value of Rs 10,422 crore.

The stock hit its 52-week high of Rs 706.85 on July 2 this year and its 52-week low of Rs 404 on November 1 last year. Over the past year, Ambuja Cements’ share price has increased by nearly 37%.

Q1FY25 Financial Performance

However, the company’s financial performance for Q1FY25 revealed some challenges. Revenue and profit decreased by 4.61% and 28.63% year-on-year (YoY), respectively. Sequentially, revenue dropped by 6.55%, while profit declined by 38.75%. Operating income also saw a significant decline, falling 44.25% quarter-on-quarter and 37.28% year-on-year.

Stock Performance in Last One Year

In terms of stock performance, Ambuja Cement shares have demonstrated positive returns across multiple time frames. Over the past three month, the stock has given a commendable 1.45% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 8.31%, indicating a strong upward trend.

Year-to-date, Ambuja Cement shares have surged by 43.41%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 25.06% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.