Adani Group’s ACC and Ambuja Cement stocks rally amid huge spurt in volumes! Know the details

Cement stocks from Adani Group companies captured investors’ attention during the last hour of today’s trading session. ACC Limited, one of the cement companies within the Adani Group, announced its December quarter results on the BSE around 2:20 PM, spurring activity during the final hour. However, Ambuja Cements has not yet released its results and is scheduled to do so on the last day of January, specifically on January 31, 2024.

Sharp Surge in stock price before results 

Upon observing the intraday charts of both stocks, around 2:05 PM, a significant bullish candle with notable volumes appeared. Before that, the stocks were in a narrow range with low volumes. Suddenly, just before the result announcement, both volumes and prices surged significantly. Furthermore, the results were published on BSE around 2:20 PM, but the prices seemed to indicate everything as if someone had already read the earnings before it was made public.

However, Ambuja Cements has not yet announced its December quarterly earnings, yet it recorded a significant surge in stock price, indicating something potentially unethical or some big names have already received the result before the announcement.

Following is the intraday chart (15 min) of both stocks.

Furthermore, the stocks of ACC Limited touched an upper circuit price limit of 15% today. Throughout the day, the stocks experienced a significant surge in trading volumes, surpassing the average by more than 17.42 times on the BSE. It also reached its 52-week high of Rs 2,551 per share and eventually closed at Rs 2,477.80 per share on the BSE.

On the other hand, shares of Ambuja Cement also hit a 52-week high and recorded a surge in trading volumes by more than 10.23 times the average trading volumes on the BSE and eventually closed at Rs 560.50 per share on the BSE.

ACC Cements Q3 FY24 Results: 

During the third quarter, the company reported revenues of Rs 4914 crore, reflecting a growth of 8.30% YoY compared to the same quarter in the previous year, when the revenue stood at Rs 4537 crore. The company posted an operating profit of Rs 905 crore for the quarter, in contrast to an operating profit of Rs 379 crore in the corresponding quarter of the previous year reflecting an impressive growth of around 140% YoY. During the quarter the operating profit margin stood at 18.4% a significant improvement from 8.4% same quarter last year. Furthermore, the company reported a net profit of Rs 538 crore, compared to a net profit of Rs 113 crore in the same period last year. Moreover, the company’s net profit grew by around 4.8 YoY times during the quarter.

There has been a sharp jump in EPS from Rs 6.01 to Rs 28.55 in Q3 FY24. Shareholder’s net worth reflects a turnaround in all KPIs, resulting in a robust financial performance and strengthened balance sheet.

Outlook

Cement demand in India will continue to grow at 7-8%, primarily fuelled by investments in infrastructure and large-scale residential housing projects. This growth aligns strategically with the broader economic development goals of the country, as we move from a USD 3.5 trillion to a USD 7.3 trillion economy by 2030. The opportunity to buy low-cost petcoke will help further optimise fuel costs in the coming quarters and will augur well in our cost optimization journey.

Conclusion 

Perhaps some prominent figures have already perused the financials or have received hints that the company will announce impressive results for the quarter. Moreover, a similar trend has been observed in another Adani Cement company, Ambuja Cement, during the same period today. It closed near the day’s high with robust volumes. Investors may anticipate favourable results akin to ACC Limited and have decided to purchase stocks today, considering today marks the last trading day of the week and the market will open directly on Monday.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.