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The market capitalisation (m-cap) of cement firm Ambuja Cements, and automobile company Eicher Motors hit Rs 1-trillion mark each, as their respective stock prices claimed all-time peaks on Thursday.
Individually, Ambuja Cements stood at 100th position in the overall m-cap ranking with Rs 1.05-trillion market cap, according to data from the BSE. Shares of the cement maker hit a fresh all-time high of Rs 531.70, up 1 per cent on the exchange in the intra-day trade.
Eicher Motors’ market cap, meanwhile, touched Rs 1.01 trillion in the intra-day day after the stock price of the company hit a new high of Rs 3,670.90, up 4 per cent on the BSE. In comparison, the S&P BSE Sensex was down 0.39 per cent at 60,112 points at 01:21 PM.
In the past one week, the stock of Ambuja Cements has rallied 14 per cent, while in one month, it has surged 37 per cent, as against 1 per cent gain each recorded by the benchmark index during the same period.
The board of directors of Ambuja Cements is scheduled to meet on Friday, September 16, 2022 to consider and evaluate proposal for raising of funds by way of issue of equity shares, convertibles and/or any other eligible securities, on a rights/preferential or any other permissible mode/ and/or combination thereof as may be considered appropriate.
The Adani family’s open offer to acquire an additional 26 per cent stake in Ambuja Cements and ACC had closed on September 9, 2022. The mandatory open offers in cash were made after the Adani family acquired a 63 per cent stake in Ambuja Cements from Swiss cement major, Holcim. Ambuja Cements has a 54.53 per cent stake in ACC.
Meanwhile, Eicher Motors, too, has outperformed the market by gaining 7 per cent in the past one week, and 14 per cent in the past one month. Moreover, in the past six months, it has zoomed 60 per cent, as against 8 per cent rise in the Sensex.
Eicher Motors, which is the parent company of Royal Enfield (RE), is a global leader in the middleweight motorcycles segment (250cc – 750cc). Eicher Motors is also a majority stake owner in VE Commercial Vehicles (VECV), a joint venture with Sweden’s AB Volvo.
According to analysts at HDFC Securities, given its dominant position in the >250cc market in India, RE is likely to be a key beneficiary of the premiumisation trend in India. It targets to launch multiple new products over the next 18-24 months, which would provide an upgrade option to its existing customers. Also, given the sharp price increase in RE over the last few years, it now targets to secure a balance between growth and profitability.
“On exports, RE is seeing a strong demand pull from its key markets. The management believes that, in exports, it is at a stage where they were in the domestic market in FY11, and expect to see sustained growth in the coming years. Further, VECV is likely to be amongst a key beneficiary of the CV uptrend and is confident of gradually gaining share in some of its key segments as their technically superior products are gradually gaining customer mind share,” the brokerage firm said in company update.
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