ACC, Ambuja stocks may lag after Adani's open offer
"Given the out-performance and benefits of the acquisition will be back-ended, we expect these stocks to underperform following the close of the open offer and for the discount to large-cap peers to widen," said CLSA.
By ET Bureau | Updated:
Agencies
Shares of ACC and Ambuja Cements are likely to underperform after the conclusion of the open offer by Adani Group, said foreign brokerage CLSA. Adani made an open offer to buy a 26% stake each in Ambuja Cements and ACC from public shareholders after buying majority stakes in the companies from Switzerland's Holcim Group.
The Hong Kong-headquartered brokerage said focus post open offer is likely to shift back to earnings and growth outlook and that it sees better opportunities elsewhere in the sector. UltraTech and Dalmia Bharat are preferred picks, said CLSA.
"Given the out-performance and benefits of the acquisition will be back-ended, we expect these stocks to underperform following the close of the open offer and for the discount to large-cap peers to widen," said CLSA.
Shares of ACC ended down 0.59% at ₹2,171.90 and Ambuja Cements ended up 0.4% at ₹370.65 on Tuesday.
The Hong Kong-headquartered brokerage said focus post open offer is likely to shift back to earnings and growth outlook and that it sees better opportunities elsewhere in the sector. UltraTech and Dalmia Bharat are preferred picks, said CLSA.
"Given the out-performance and benefits of the acquisition will be back-ended, we expect these stocks to underperform following the close of the open offer and for the discount to large-cap peers to widen," said CLSA.
Shares of ACC ended down 0.59% at ₹2,171.90 and Ambuja Cements ended up 0.4% at ₹370.65 on Tuesday.
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