Shares of Ambuja Cements, part of the diversified Adani Portfolio, could rise to Rs 745, offering a potential 30 per cent upside from current levels, according to a note issued by Cantor on Monday. The brokerage has maintained an “Overweight” rating on the stock, citing the company’s strong balance sheet, improving operating margins, and clear growth roadmap.

Cantor’s 12-month target price of Rs 745 is based on a blended FY27E EV/EBITDA multiple of 16.5x (equity value of Rs 773) and a discounted cash flow (DCF) valuation of Rs 667, with a 70:30 weighting. The firm noted that the premium valuation is justified given Ambuja’s superior 2x growth rate relative to peers, coupled with its scale as India’s second-largest cement producer.

The report emphasised that Ambuja Cements is well placed to benefit from ongoing infrastructure investment and robust housing demand, which continue to drive cement consumption nationwide. The company’s expansion plans, along with a focus on cost efficiencies, are expected to sustain earnings momentum over the next two years.

Analysts project that input cost softening and improved pricing power will support further gains in operating margins. With new capacity additions in the pipeline, volume growth is also set to accelerate, giving Ambuja a competitive advantage in the market.

The company recently reported strong quarterly results, reflecting higher profitability and healthy cash flows. Cantor noted that Ambuja’s financial strength will allow it to fund expansion without straining its balance sheet, while also maintaining the ability to reward shareholders.

At current market prices, the target of Rs 745 represents a meaningful upside for investors, supported by solid fundamentals and favourable sector tailwinds.