I could not find a topic dedicated to Ambuja Cements so initiating one. I am new to analyzing financial statements so will need a lot of support to take this forward. Thanks, Regards,
Here is a short analysis of SHP of Ambuja Cements Ltd (ACL) as of Quarter ending June 2018. (1) Mutual Funds increased their stake by 64.52L shares. (2) FPI increased their stake by 11.97L shares out of which Govt of Singapore increased its stake by 28.23L shares. So some smaller FPI a/cs sold their shares but they were absorbed by Govt of Singapore resulting in a net increase in FPI investments. (3) The biggest seller has been LIC which sold 1Cr 48L shares however most of it was absorbed by other financial instt and banks. The net shareholding of the institutional category came down by just 19.54L shares. This has been picked up by retail - mainly smaller retail (exposure less than 2 Lacs) - with increase in their shareholding by 19.80L shares. (4) Interestingly, Govt of India sold its entire stake of 27.56L shares which was picked up by Investor Education and Protection Fund (IEPF) (5) The overall shareholding of non-promoters remains same except the change of hands. (6) The promoter shareholding remains unchanged.
Observations: (1) To me price erosion happens when shares change hands from instt to retail as the impact cost could be greater. (2) About 20L shares (0.28% of equity) changed hands from instt to retail. Rest is among the instt themselves. (3) This resulted in a price erosion of 11.81% in Q1 (232.9 to 205.4). This is kind of alarming. I wonder if there was any front running (on short side) ahead of LIC’s massive stake sell. (4) Did LIC sell its stake in ACL to raise money for IDBI Bank and Air India? If that is the case then it needs IEPF more than anyone else. (5) Price has fallen even further in last few days.
Conclusion: Considering small FIIs, LIC, and Govt of India are the biggest sellers and cause of the heavy fall in price, I believe there are no worries on ACL operational front. All these share holders have different compulsions that has nothing to do with the quality and performance of the company. regards,
Disclaimer: Invested in ACL for the long term. Trade in options of ACL.