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INVESTMENT INSIGHTS

Check Before You Invest : Ambuja Cements Ltd

BSE: 500425 NSE: AMBUJACEM ISIN: INE079A01024
  |   Sector:  Construction & Infrastructure   |   Industry:  Cement & Construction Materials

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 not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 5.3% , indicating faster growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 21.1 19.3
Operating Profit Margin 17.06 19.33
Net Profit Margin 14.72 12.81
Q.5 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.6 Return on Equity (ROE) of Ambuja Cements Ltd?
Ambuja Cements Ltd Return on equity is 11.2% for FY-2025 , which is below its historical median of 13.27%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ambuja Cements Ltd?
Ambuja Cements Ltd Return on capital employed is 12.93% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Ambuja Cements Ltd?
Ambuja Cements Ltd Cash conversion cycle is 14 days, above its historical median of 2 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 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.9 Debt to Equity ratio of Ambuja Cements Ltd?
Ambuja Cements Ltd Debt-to-Equity ratio is 0.00 , which is in line with the industry average of 0 , indicating similar to 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, indicating the business is able to service its debt comfortably.

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 2.64% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 35,044.8 15,574.8
Gross Profit 7,394.5 2,795.1
Operating Profit 5,971 2,985.5
Net Profit 5,158 1,855.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.54 0.35
ROE 11.2 6.13
ROCE 12.93 7.39
Cash Conversion Cycle (days) 14.3 1

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 6.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 6.7% 7.9% 4% -19.6%
Q.3 Valuation ratios of Ambuja Cements Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 27.73 22.13 34.86
Price to Book 1.82 1.78 1.92
Price to Sales 2.6 1.83 1.25
EV to EBITDA 12.67 7.10 11.55

Check more companies

1. Larsen & Toubro
2. Ultratech Cement
3. DLF
4. Ambuja Cement
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