Ambuja Cements Ltd Stock Analysis

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

BSE Share Price 23-Sep-2022 18:01
539.35 5.80 (1.09%)

DeciZen - Make an Informed Decision on Ambuja Cement

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

Ambuja Cement Price Chart

P/E Ratio (SA) :
47.90
Market Cap :
1,07,095.8 Cr.
52-wk low :
274
52-wk high :
585.5
Bole Toh?

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 Overvalued zone.

3. Is Ambuja Cements Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Ambuja Cements Ltd is likely to Rise 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'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21TTM
ROCE % 17.6%13.6%15.1%7.7%6.9%6.7%8%7.3%8.7%10.1%-
Value Creation Index NA0.20.3-0.3-0.4-0.4-0.3-0.4-0.2-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9,6869,1499,9529,4319,23110,45711,35711,66811,37213,96514,891
YoY Gr. Rt. %--5.5%8.8%-5.2%-2.1%13.3%8.6%2.7%-2.5%22.8%-
Adj EPS 9.37.89.34.74.76.387.79.110.511.3
YoY Gr. Rt. %--16.4%18.7%-49.8%0.9%34.1%26.7%-3.4%17.5%16.1%-
BVPS (₹) 56.961.265.166.497.5100.6105.8111.8102.3111.8113.3
Adj Net Profit 1,4391,2061,4357229321,2501,5821,5291,7962,0862,236
Cash Flow from Ops. 1,8571,2871,6751,5531,4161,8365722,4852,6062,466-
Debt/CF from Ops. 0000000.1000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.2%8.6%7.1%22.8%
Adj EPS 1.3%17.5%9.7%16.1%
BVPS 7.82.81.99.3
Share Price 10.7% 15.5% 36.9% 31.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21TTM
Return on Equity % 17.113.214.77.16.36.47.77.18.59.810
Op. Profit Mgn % 25.618.319.416.518.318.616.718.423.42318.4
Net Profit Mgn % 14.913.214.47.710.11213.913.115.814.915
Debt to Equity 00000000000
Working Cap Days 6672728491951031029476160
Cash Conv. Cycle -841098345-5-437

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 10.00%

Sales growth is good in last 4 quarters at 11.65%

Sales growth has been subdued in last 3 years 7.13%

Net Profit has been subdued in last 3 years 9.66%

Latest Financials - Ambuja Cements Ltd.

Standalone Consolidated
TTM EPS (₹) 11.3 11.9
TTM Sales (₹ Cr.) 14,891 30,205
BVPS (₹.) 113.3 128.6
Reserves (₹ Cr.) 22,106 25,130
P/BV 4.76 4.20
PE 47.90 45.24
From the Market
52 Week Low / High (₹) 274.00 / 585.45
All Time Low / High (₹) 6.00 / 585.45
Market Cap (₹ Cr.) 1,07,096
Equity (₹ Cr.) 397.1
Face Value (₹) 2
Industry PE 32.8

Management X-Ray of Ambuja Cement :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* 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 (%)

News

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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