Check Before You Invest : Ambuja Cements Ltd

Snapshot

Q.1 Which industry/sub-sector does Ambuja Cements Ltd belong to?

Ambuja Cements Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is Ambuja Cements Ltd a good quality company?

Ambuja Cements Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Ambuja Cements Ltd undervalued or overvalued?

Ambuja Cements Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Ambuja Cements Ltd a good buy now?

Ambuja Cements Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ambuja Cements Ltd?

Ambuja Cements Ltd revenue growth is 5.7% for FY-2025, which is above its 5-year CAGR of 5.27%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Ambuja Cements Ltd?

Ambuja Cements Ltd Return on capital employed is 12.93% for FY-2025, which is below its 5-year historical median of 16.86%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Ambuja Cements Ltd?

Ambuja Cements Ltd Return on Asset is 7.07%, which is below its 5-year historical median of 7.78%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Ambuja Cements Ltd?

Ambuja Cements Ltd Return on equity is 11.2% for FY-2025, which is below its 5-year historical median of 13.27%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Ambuja Cements Ltd?

Ambuja Cements Ltd Cash conversion cycle is 14 days, above its 5-year historical median of 2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.54	0.69
ROE	11.2	13.27
ROCE	12.93	16.86
Cash Conversion Cycle	14 days	2 days

Q.6 Gross Profit margin of Ambuja Cements Ltd?

Ambuja Cements Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.1% for FY-2025, which is above its 5-year median of 19.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Ambuja Cements Ltd?

Ambuja Cements Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.06% for FY-2025, which is below its 5-year median of 19.33% indicating decreasing margins.

Q.8 Net Profit Margin of Ambuja Cements Ltd?

Ambuja Cements Ltd Net Profit Margin is 14.72% for FY-2025, is above with its 5-year median of 12.81%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	21.1	19.3
Operating Profit Margin	17.06	19.33
Net Profit Margin	14.72	12.81

Q.9 Debt to Equity ratio of Ambuja Cements Ltd?

Ambuja Cements Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.2, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ambuja Cements Ltd?

Ambuja Cements Ltd Debt to cash flow from operations is 0.01, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ambuja Cements Ltd?

Promoters hold 67.68% of the Ambuja Cements Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ambuja Cements Ltd vs industry peers?

Ambuja Cements Ltd revenue CAGR is 5.27%, compared to the industry median CAGR of 8.81%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	5.7	8.8
Gross Profit Growth	15.4	9.5
Operating Profit Growth	-6.7	5.8
Net Profit Growth	8.9	7.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.54	0.73
ROE	11.2	12.76
ROCE	12.93	15.82
Cash Conversion Cycle (days)	14.3	3

Valuation & price assessment

Q.1 Stock return of Ambuja Cements Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	7%	6.6%	2.7%	-19%

Q.3 Valuation ratios of Ambuja Cements Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	21.39	34.84	22.85
Price to Book	1.7	2.80	1.92
Price to Sales	2.49	3.43	1.40
EV to EBITDA	13.59	15.32	11.62

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