HDFC Securities has maintained 'Sell' on Ambuja Cement with target price of Rs 215 as against current market price (CMP) of Rs 265 in its report.

Commenting on the investment rationale, HDFC Securities said, "Ambuja Cements reported weak numbers. Realizations drove the underperformance due to very weak pricing in North. Volume growth returned after a tepid 3Q, however CY14 volumes grew mere 2.5%.

Despite geographical advantages, Ambuja cement will be hamstrung when cement industry regains volume traction. This is due to an already constrained clinker capacity. Further, visibility on investments in upgrading clinker capacity remains weak and this will be detrimental especially in key markets of North and West. Valuations at 13.7/10.8 CY15/16E EV/EBITDA and USD 215 remain challenging despite being lower than both UltraTech and Shree Cement, which offer more visible growth opportunities. We remain cautious on Ambuja."

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