Ambuja Cements Ltd - Stock Valuation and Financial Performance

BSE: 500425 | NSE: AMBUJACEM | Cement & Construction Materials | Large Cap

Ambuja Cement Share Price

574.30 -20.05 -3.37%
as on 09-May'24 15:52

DeciZen - make an informed investing decision on Ambuja Cement

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Ambuja Cements stock performance -

mw4me loader
P/E Ratio (CD):
42.95
Market Cap:
1,53,634.1 Cr.
52-wk low:
396
52-wk high:
649

Is Ambuja Cements Ltd an attractive stock to invest in?

1. Is Ambuja Cements Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Ambuja Cements Ltd is a good quality company.

2. Is Ambuja Cements Ltd undervalued or overvalued?

The key valuation ratios of Ambuja Cements Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Ambuja Cements Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Ambuja Cements Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Ambuja Cement:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ambuja Cements Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Mar'23TTM
ROCE % 13.5%15%7.7%7.4%6.7%9.1%7.7%8.4%9.4%8%-
Value Creation
Index
NA0.3-0.3-0.3-0.4-0.2-0.3-0.3-0.2-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9,1819,9749,45120,13223,60926,04127,10424,51628,96531,15033,160
Sales YoY Gr.-8.6%-5.2%113%17.3%10.3%4.1%-9.6%18.2%7.5%-
Adj EPS 7.79.24.75.77.611.510.611.91410.913.4
YoY Gr.-19.5%-49.5%22.6%34%50.9%-8.5%12.9%17.9%-22.2%-
BVPS (₹) 61.164.966.299.8104.1112.7121.3114.6127.7107.6219.3
Adj Net
Profit
1,1901,4267221,1321,5162,2902,0952,3652,7872,1683,577
Cash Flow from Ops. 1,2671,6751,5572,8103,4161,7034,7394,8325,309588-
Debt/CF from Ops. 0000000000.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14.5%5.7%4.8%7.5%
Adj EPS 4%7.4%1.2%-22.2%
BVPS6.5%0.7%-3.9%-15.8%
Share Price 10.7% 21.7% 22.6% 40.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Mar'23TTM
Return on
Equity %
1314.67.17.57.510.6910.111.69.58.2
Op. Profit
Mgn %
18.219.416.615.816.315.41720.521.413.219.3
Net Profit
Mgn %
1314.37.67.28.211.910.312.712.88.110.8
Debt to
Equity
00000000000
Working Cap
Days
717182699910710510691130126
Cash Conv.
Cycle
41094100-8-11261

Recent Performance Summary

No data to display

Return on Equity has declined versus last 3 years average to 8.20%

Sales growth has been subdued in last 3 years 4.75%

Net Profit has been subdued in last 3 years 1.16%

Sales growth is not so good in last 4 quarters at 6.76%

Latest Financials - Ambuja Cements Ltd.

Standalone Consolidated
TTM EPS (₹) 8.7 13.4
TTM Sales (₹ Cr.) 17,919 33,160
BVPS (₹.) 202.7 219.3
Reserves (₹ Cr.) 53,692 58,141
P/BV 2.83 2.62
PE 65.80 42.95
From the Market
52 Week Low / High (₹) 395.95 / 649.00
All Time Low / High (₹) 6.00 / 649.00
Market Cap (₹ Cr.) 1,53,634
Equity (₹ Cr.) 535
Face Value (₹) 2
Industry PE 39.4

Management X-Ray of Ambuja Cement:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.00100.00100.00100.00100.00100.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Ambuja Cement

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSDec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Mar'23
Sales9,1819,9749,45120,13223,60926,04127,10424,51628,96538,937
Operating Expenses 7,5228,0457,90916,95119,75122,03022,50719,51122,76633,815
Manufacturing Costs3,7034,0103,8387,3428,5479,4919,5688,19111,04117,199
Material Costs8008458272,3622,7693,2343,6753,1022,9185,064
Employee Cost 5085865941,3701,5111,5241,5711,5401,5291,857
Other Costs 2,5112,6052,6515,8776,9247,7817,6936,6787,2799,695
Operating Profit 1,6591,9281,5423,1813,8584,0114,5975,0066,2005,122
Operating Profit Margin (%) 18.1%19.3%16.3%15.8%16.3%15.4%17.0%20.4%21.4%13.2%
Other Income 375424353520323371581450363738
Interest 676692205206171170140146195
Depreciation 4945136301,4611,2191,1541,1531,1621,1521,645
Exceptional Items 2500-390-1520-176-120-319
Profit Before Tax 1,4981,7741,1731,9972,7682,9193,8753,9925,1643,729
Tax 220288365574823-541,0928851,453705
Profit After Tax 1,2781,4878081,4231,9452,9732,7833,1073,7113,024
PAT Margin (%) 13.9%14.9%8.5%7.1%8.2%11.4%10.3%12.7%12.8%7.8%
Adjusted EPS (₹)8.39.65.25.67.611.010.611.914.013.0
Dividend Payout Ratio (%)44%52%54%50%47%14%14%151%45%19%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSDec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Mar'23

Equity and Liabilities

Shareholders Fund 9,44410,06110,27119,82120,67222,37024,07822,75825,35426,698
Share Capital 309310310397397397397397397397
Reserves 9,1349,7519,96119,42420,27521,97323,68122,36024,95726,301
Minority Interest1114370460852315737634171457058
Debt35322416244035444434
Long Term Debt33322416244035444434
Short Term Debt1000000000
Trade Payables5636226802,0682,8163,0062,3332,2132,9132,774
Others Liabilities 2,9153,1633,1576,5487,3896,6897,9958,3629,75015,157
Total Liabilities 12,95613,87814,13332,82435,50937,33740,17839,71845,20551,721

Fixed Assets

Gross Block10,92911,53412,11922,86923,56724,42725,59826,63629,48832,336
Accumulated Depreciation4,7825,2245,9491,4582,6693,7914,8975,9917,0618,611
Net Fixed Assets6,1476,3106,17021,41020,89820,63620,70120,64422,42723,725
CWIP 6986924165826671,0081,5542,4222,1682,526
Investments 1,7142,0972,149175153133174191221214
Inventories9368908982,1642,4582,9582,0971,6492,7383,273
Trade Receivables2352322909249321,3051,0695616191,154
Cash Equivalents 2,3452,4622,8534,5646,2326,4399,3558,93611,6932,961
Others Assets8821,1961,3563,0054,1694,8585,2285,3165,33917,869
Total Assets 12,95613,87814,13332,82435,50937,33740,17839,71845,20551,721

Cash Flow

(All Figures are in Crores.)
PARTICULARSDec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Mar'23
Cash Flow From Operating Activity 1,2671,6751,5572,8103,4161,7034,7394,8325,309735
PBT 1,4981,7741,1732,0082,7682,9193,8753,9925,1643,729
Adjustment 1601754081,1841,0389417421,2541,1241,217
Changes in Working Capital 811517214142-1026651757-331-3473
Tax Paid -473-289-42-596-532-1,130-530-1,170-648-738
Cash Flow From Investing Activity -496-456-83-4,165-762-766-1,193-1,317-2,007-14,481
Capex -736-821-619-885-1,085-1,092-1,607-1,725-2,296-4,066
Net Investments -982274-3,6221179019-287-10,862
Others 249283263342206235396436283447
Cash Flow From Financing Activity -672-721-900-958-1,015-719-629-3,956-5162,931
Net Proceeds from Shares 3743260000000
Net Proceeds from Borrowing 0-1314-322030-4
Interest Paid -66-33-40-87-156-92-113-113-132-128
Dividend Paid -555-617-744-711-715-539-429-3,665-202-1,251
Others -88-100-143-164-142-109-87-181-1824,314
Net Cash Flow 99498574-2,3121,6402182,916-4412,786-10,815
PARTICULARSDec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21Mar'23
Ratios
ROE (%)14.0415.247.959.469.6113.8111.9813.2715.4311.62
ROCE (%)17.0418.7612.414.614.6714.3317.3917.6122.0313.73
Asset Turnover Ratio0.820.840.770.980.740.780.790.690.780.91
PAT to CFO Conversion(x)0.991.131.931.971.760.571.71.561.430.24
Working Capital Days
Receivable Days889101314141167
Inventory Days34303024333530252425
Payable Days345256287212322329265267321205

Ambuja Cements Ltd Stock News

Ambuja Cements Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Ambuja Cement on 09-May-2024 15:52 is ₹574.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 09-May-2024 15:52 the market cap of Ambuja Cement stood at ₹1,53,634.1.
The latest P/E ratio of Ambuja Cement as of 09-May-2024 15:52 is 65.80.
The latest P/B ratio of Ambuja Cement as of 09-May-2024 15:52 is 2.83.
The 52-week high of Ambuja Cement is ₹649.0 and the 52-week low is ₹395.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Ambuja Cement is ₹17,919 ( Cr.) .

About Ambuja Cements Ltd

Ambuja Cements, a part of the global conglomerate LafargeHolcim, is among the leading cement companies in India. To further add value to its customers, the company has launched innovative products like Ambuja Roof Special, Ambuja Cool Walls, Ambuja Kawach and Ambuja Cement Compocem. The products not only fulfill important customer needs but also help in significantly reducing carbon footprints. It is the industry leader in responsible use of resources, both natural and man-made. The company’s multi-pronged strategy, including triple bottom line accounting method; True Value; good corporate governance practices; overarching corporate environment policy; and sustainable supply chain policy have helped cement the company's credentials as a sustainable manufacturer.

Business area of the company

The company is one of the leading cement manufacturing companies in India. It focuses on cement, aggregates and concrete. It has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations.

Products

  • Ambuja Cement
  • Ambuja Roof Special
  • Ambuja Cool Walls
  • Ambuja Cement Compocem
  • Ambuja Buildcem
  • Ambuja Powercem
  • Ambuja Railcem
  • Alccofine micro materials

Awards and Recognitions

2005:

  • Rabriyawas unit has been awarded the ‘National Energy Conservation Award 2004’ (1st prize in cement sector) by the Ministry of Power, Government of India for its efforts on energy conservation.
  • CAPEXIL has conferred the ‘Top Export Award’ to the company for its outstanding export performance for the year 2003-04.

2006:

  • CAPEXIL has conferred the ‘Top Export Award’ to the company for its outstanding export performance for the year 2004-05.

2007:

  • Asian Institute of Management, Philippines, conferred on the company the ‘Asian CSR Award 2007’ in the ‘Concern for Health’ category for its robust programme on health and HIV/AIDS for the welfare of the communities.
  • Bagged Greentech Environment Excellence Gold Award - 2007 for outstanding achievement in Environmental Management for Himachal Unit by Greentech Foundation, New Delhi.
  • Was adjudged as the top Indian company in the cement sector for the ‘Dun and Bradstreet-American Express Corporate Awards 2007’.

2008:

  • Received the prestigious 'Business Superbrands' status in August, 2008.
  • Received ‘Greentech Environment Excellence Gold Award 2008’ at Goa.

2009:

  • Won 2009 IMC Ramkrishna Bajaj National Quality ‘Performance Excellence Trophy’ in the Manufacturing Category.
  • Ambujanagar unit won the national award on ‘Best Environmental Excellence in Plant Operation’ from NCBM.

2011:

  • Bagged Confederation of Indian Industry (CII) National Award on Sustainability in the category ‘Commendation for Strong Commitment for Sustainable Development’.
  • The CII conferred ‘National Award for Excellence in Water Management’ to Rabriyawas plant in ‘Beyond the Fence’ Category.

2013:

  • Won CII ITC Sustainability Award for the third year in a row for ‘Significant Achievement on journey towards Sustainable Development’ under Large Industry category.
  • Won ‘The Asia’s Most Promising Brand’ at the Asian Brand & Leadership Summit-Dubai 2013.
  • Won the ET NOW Talent and HR Leadership Award 2013 for Best Talent Management and the Global HR Excellence Awards 2013 for Organization with Innovative HR Practices by World HRD Congress.

2015:

  • For the 5th time in a row, the company bagged the prestigious CII Sustainability Award 2015 for ‘Corporate Excellence-Commendation for Significant Achievement in category ’A’.
  • Awarded the ‘Best Sustainability Risk Management Company’ of the year by CNBC TV18.
  • Bagged ‘Eco Corporate of the Year 2014’ by Yes Bank’s Natural Capital Awards.

2016:

  • FICCI CSR Award 2016 for Ambuja's exemplary Water Resource Management program. 
  • CII Sustainability Award 2016 in Corporate Excellence-Outstanding Accomplishment category.
  • Rajasthan Energy Conservation Award 2016 for the Rabriyawas Plant. 
  • Conferred with the Bombay Chamber Civic Award for Social Development. 
  • Sustainability Energy Development Award from Chattisgarh State Renewable Energy Development Agency for Bhatapara unit. 
  • Gold Award at the 16th Annual Greentech Safety Awards 2016.

2017:

  • CII ITC Sustainability Awards for ‘Outstanding Accomplishment for Corporate Excellence’, 8th time in a row.
  • NCB National Award for Environment Excellence.
  • NMDC Social Awareness Award by FMI.
  • CII National Award for Excellence in Energy Management.
  • Yes Bank Natural Capital Awards in Eco-Corporate category under Manufacturing Sector.
  • CII National Award for Excellence in Water Management.
  • Certified 5.5 times water positive by external certification body DNV-GL.
  • Ranked 7th by Dow Jones Sustainability Index.
  • Ranked as India’s ‘Most Respected Companies’ by Businessworld.
  • Listed amongst top 40 brands in Interbrand ‘Best Indian Brands 2017’.
  • Ranked amongst India’s ‘50 Biggest Non-Financial Companies’ by Businessworld.

2018:

  • Ranked 5th globally in the Construction Material category for the internationally renowned Dow Jones Sustainability Index 2018.  
  • Ranked 2nd in the global Carbon Disclosure Project (CDP) for the low-carbon transition. Ambuja also topped in Climate Governance & Strategy. 
  • Wins 'Commendation for Significant Achievement' in the 'CII-ITC Sustainability Awards 2018'. Including 8 awards for Corporate Excellence, Environment Management and CSR. 
  • Ranked 2nd in Responsible Business Ranking 2018 - India's top companies for Sustainability and CSR 2018. 
  • The Ambuja Cement Foundation was conferred with the prestigious 'ICSI CSR Excellence Award' as the Best Corporate (Large Category) by The Institute of Company Secretaries of India (ICSI).

2019:

  • Features amongst the top 4 companies in Global DJSI Ranking-2019.
  • Ranked 4 among the world's most sustainable companies at the Dow Jones Sustainability Index (DJSI) global ranking for 2019 in the Construction Material (COM) category.
  • CSR arm Ambuja Cement Foundation received the award for its focus on drinking water, water harvesting and water use efficiency interventions in the Gir Somnath district of Gujarat and Pali & Nagaur district of Rajasthan.
  • Topped India's list in the Forbes Asia's Best Over a Billion List in the sector.
  • Ranked 6th in ‘Responsible Business Ranking 2019’ report.
  • Won ‘Warehouse and Logistics Excellence-Manufacturing Company of the Year 2019’ award.
  • Received the award for ‘Best in Class Logistics Safety’ at the 13th Express Logistics and Supply Chain Conclave.
  • Integrated digital platform Ambuja Brahmaand won two prestigious awards, ‘Best Customer Relationship Platform’ and ‘Best Marketing Technology Stack’ at the MarTech Leadership Awards 2019.
  • Nalagarh plant won the coveted CII National Award 2019 as 'Energy Efficient Unit’.
  • MCW Chandrapur plant won the Vasundhara Award 2019 from Maharashtra Government for 'Embedding Best Environmental Practices’.
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