Morgan Stanley has increased the target price of India-based Ambuja Cements.
The financial institution has raised the target price of the company to INR161 from INR127.
The brokerage said, ‘We believe that a pick-up in demand will support volume growth in second half of FY11 and that effective capacity growth will be lower relative to consensus estimates. This should support cement prices and uplift earnings momentum. In our view, cost will be less of a concern in the near term given our international coal price outlook.’
"We are still speaking to our financial advisers, but we will let people know very soon."