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Ambuja Cements Ltd. Stock Analysis

Large Cap
Evaluated by 6826 users | BSE: 500425 | NSE: AMBUJACEM |
Cement & Construction Materials

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Capital Employed 17.64%16.05%17.59%13.62%15.06%7.68%6.22%6.45%7.84%7.24%
Value Creation Index 0.600.290.420.100.21-0.38-0.50-0.48-0.37-0.42
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7,3478,5029,6869,1499,9529,4319,23110,45711,35711,668
Y-o-Y Gr. Rt.-15.7%13.9%-5.5%8.8%-5.2%-2.1%13.3%8.6%2.7%
Adjusted EPS (Rs.) 7.877.889.337.89.264.654.216.017.817.6
Y-o-Y Gr. Rt.-0.1%18.4%-16.4%18.7%-49.8%-9.5%42.8%30%-2.7%
Book Value per Share (Rs.) 47.952.3856.9461.2465.1366.4197.48100.59105.82111.83
Adjusted Net Profit 1,2031,2081,4391,2061,4357228361,1941,5511,510
Net Op. Cash Flow (Rs. Cr.) 1,8761,5331,8571,2871,6751,5531,4161,8365722,484
Debt to Cash Flow from Ops 0.030.030.020.030.020.020.020.010.070.02
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ambuja Cements Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.3%3.2%8.1%2.7%
Adjusted EPS -0.4%-3.9%21.8%-2.7%
Book Value per Share 9.911.44.75.7
Share Price 6.6% 5.3% -0.2% 27.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Equity (%) 17.4415.6917.0513.1814.657.075.646.077.576.99
Operating Profit Margin (%) 24.8623.5325.6218.3219.4316.5118.3318.5516.7118.43
Net Profit Margin (%) 16.3814.2114.8613.1814.427.659.0611.4213.6612.94
Debt to Equity 0.010.0100000000
Working Capital Days 5765667272849195111115
Cash Conversion Cycle -25-16-8410983710
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 63.27%
Institutions 30.08%
Non-Institutions 6.39%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ambuja Cements Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ambuja Cements Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ambuja Cements Ltd.'s performance infers:

Ambuja Cements Ltd. earnings have declined by -3.9%, whereas share price has appreciated 5.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ambuja Cements Ltd. share prices over the last 10 years. Here is what we found out:

Ambuja Cements Ltd. share price has appreciated 6.5% annually over the past ten years.

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

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’.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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