Ambuja Cements Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹1,55,669 crore, PE ratio of 49.0, debt-to-equity ratio of 0.02, and return on equity of 10.3%. These figures reflect the company’s financial health and current market valuation.
Content:
- Ambuja Cements Ltd Overview
- Ambuja Cements Financial Results
- Ambuja Cements Financial Analysis
- Ambuja Cements Company Metrics
- Ambuja Cements Stock Performance
- Ambuja Cements Peer Comparison
- Ambuja Cements Shareholding Pattern
- Ambuja Cements History
- How To Invest In Ambuja Cements Ltd Share?
- Ambuja Cements Limited Fundamental Analysis – FAQs
Ambuja Cements Ltd Overview
Ambuja Cements Ltd. is a leading cement manufacturer in India, known for its strong market presence and robust financial performance. The company has demonstrated growth in sales and profitability, with notable improvements in operating profit and net earnings.
The company has a market capitalization of ₹1,55,669 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 10.6% below its 52-week high and 56.4% above its 52-week low.
Ambuja Cements Financial Results
Ambuja Cements financial results for FY24 show significant changes with sales reaching ₹33,160 crore, an increase from ₹28,965 crore in FY22. Operating profit rose to ₹6,400 crore, reflecting improved performance compared to FY22’s ₹6,210 crore.
- Revenue Trend: Ambuja Cements saw a revenue decline from ₹38,937 crore in FY23 to ₹33,160 crore in FY24.
- Equity and Liabilities: The company maintained a strong financial position with a prudent balance between equity and liabilities.
- Profitability: Operating profit increased to ₹6,400 crore in FY24, resulting in a higher OPM of 19%.
- Earnings Per Share (EPS): EPS rose to ₹17.99 in FY24 from ₹13.01 in FY23, reflecting improved profitability.
- Return on Net Worth (RoNW): RoNW strengthened, supported by a higher net profit, improving the company’s overall financial health.
- Financial Position: Ambuja Cements exhibited strong financial stability, with prudent management of expenses and profitability growth.
Ambuja Cements Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 33,160 | 38,937 | 28,965 |
| Expenses | 26,760 | 33,815 | 22,755 |
| Operating Profit | 6,400 | 5,122 | 6,210 |
| OPM % | 19 | 13 | 21 |
| Other Income | 1,378 | 418.67 | 231.99 |
| EBITDA | 7,566 | 5,860 | 6,563 |
| INTEREST | 276.38 | 194.9 | 145.66 |
| Depreciation | 1,623 | 1,645 | 1,152 |
| Profit Before Tax | 5,878 | 3,701 | 5,144 |
| Tax % | 19.78 | 19.05 | 28.25 |
| Net Profit | 4,738 | 3,024 | 3,711 |
| EPS | 17.99 | 13.01 | 14 |
| Dividend Payout % | 11.12 | 19.22 | 45 |
*All values in ₹ Crores
Ambuja Cements Company Metrics
Ambuja Cements has a market cap of ₹1,55,669 Crores, with a current price of ₹632, a strong ROE of 10.3%, and a PE ratio of 49.0.
- Market Cap:
Ambuja Cements’ market cap stands at ₹1,55,669 Crores, reflecting its significant position in the cement industry.
- Book Value:
The company’s book value is ₹176, indicating a solid asset base relative to its share price.
- Face Value:
Ambuja Cements’ face value is ₹2.00, representing the nominal value of each share.
- Turnover:
With an asset turnover of 0.57, Ambuja Cements efficiently generates revenue from its assets.
- PE Ratio:
The stock’s PE ratio is 49.0, suggesting a high valuation relative to its earnings.
- Debt:
Ambuja Cements maintains a low debt level of ₹699 Crores, with a debt-to-equity ratio of 0.02.
- ROE:
The company’s return on equity is 10.3%, reflecting moderate efficiency in generating profits from shareholders’ equity.
- EBITDA Margin:
Ambuja Cements has an EBITDA margin of 19.9%, indicating healthy operating profitability.
- Dividend Yield:
The dividend yield stands at 0.32%, reflecting a modest return to shareholders.
Ambuja Cements Stock Performance
The table below summarizes the return on investment (ROI) over different periods. It highlights how returns have varied across 1-year, 3-year, and 5-year intervals, reflecting the investment’s performance over time.
| Period | Return on Investment (%) |
| 5 Years | 24% |
| 3 Years | 17% |
| 1 Year | 38% |
Example: An investor who invested Rs. 1,00,000 five years ago would have seen a return of 24%, bringing their total investment value to Rs. 1,24,000.
For a three-year investment of Rs. 1,00,000, the return would have been 17%, increasing the total value to Rs. 1,17,000.
Over the past year, if the same investor had invested Rs. 1,00,000, the return would have been 38%, resulting in a total value of Rs. 1,38,000.
Ambuja Cements Peer Comparison
In the competitor analysis, Ambuja Cements, with a CMP of Rs. 632 and a market cap of Rs. 155,669.4 crore, shows a P/E ratio of 48.95 and ROE of 10.34%. Compared to peers, it has a lower ROE and ROCE, indicating moderate profitability and efficiency.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | UltraTech Cem. | 11002.6 | 317725.27 | 1.89 | 13.32 | 36.61 |
| 2 | Ambuja Cements | 623.2 | 153624.87 | 5.71 | 1.27 | 41.33 |
| 3 | Shree Cement | 24338.95 | 87875.38 | 2.63 | -5.24 | 2.61 |
| 4 | ACC | 2281.95 | 42862.34 | 2.94 | -8.21 | 19.45 |
| 5 | J K Cements | 4107.2 | 31831.75 | 1.51 | 6.73 | 30.73 |
| 6 | Nuvoco Vistas | 333.5 | 11912.93 | 1.31 | 5.04 | -1.62 |
| 7 | Birla Corpn. | 1257.8 | 9687.89 | 2.31 | -12.17 | 16.4 |
Ambuja Cements Shareholding Pattern
The shareholding pattern of Ambuja Cements Ltd shows a significant shift in promoter ownership, increasing from 63.19% in September 2023 to 70.33% in June 2024, while foreign institutional investors (FII) and domestic institutional investors (DII) reduced their stakes.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 70.33 | 66.74 | 63.19 | 63.19 |
| FII | 9.59 | 11.09 | 11.88 | 11.65 |
| DII | 13.24 | 14.47 | 15.82 | 15.52 |
| Retail & others | 6.83 | 7.69 | 9.1 | 9.63 |
*All values in %
Ambuja Cements History
Ambuja Cements, originally established as DLF Cement Ltd in 1992, underwent significant transformation over the years. Initially focused on the northern Indian market, the company rebranded as Ambuja Cement Rajasthan Ltd in 2000, launching its products under the “Ambuja Cement” brand.
The early years were challenging, marked by financial difficulties and low margins. However, in 1999, Gujarat Ambuja Cements Ltd (GACL) joined the management, initiating a revival process. This partnership eventually led to a merger with GACL in 2002, strengthening Ambuja Cements’ position in the Indian cement industry.
Today, Ambuja Cements is a major player in the cement sector, known for its high-quality products and sustainable practices, continuing its legacy as a leader in the Indian market.
How To Invest In Ambuja Cements Ltd Share?
Investing in Ambuja Cements Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Ambuja Cements Ltd shares and place your buy order.
Ambuja Cements Limited Fundamental Analysis – FAQs
Ambuja Cements Ltd.’s fundamental analysis reveals a market capitalization of ₹1,55,669 crore, a PE ratio of 49.0, a debt-to-equity ratio of 0.02, and a return on equity of 10.3%, indicating its financial stability and market valuation.
The market cap of Ambuja Cements Ltd as of August 9, 2024, is approximately ₹1,55,669 crore. This value reflects the company’s strong market position in the Indian cement industry.
Ambuja Cements Limited is one of India’s leading cement manufacturers, producing high-quality cement for infrastructure and construction projects. Founded in 1983, it’s known for its sustainable practices and strong market presence, now owned by the Adani Group.
Ambuja Cements is primarily owned by the Adani Group, which acquired a significant stake in the company in 2022. The Adani Group, led by Gautam Adani, is a major conglomerate with interests in various sectors, including infrastructure and energy.
The main shareholders of Ambuja Cements include the Adani Group, which holds a significant stake through its subsidiary, and various institutional investors like mutual funds, foreign institutional investors (FIIs), and retail investors. Shareholding patterns may change over time.
Ambuja Cements operates in the cement and construction materials industry. It primarily produces and sells cement, a crucial component in infrastructure and real estate development, contributing to the broader construction and building materials sector.
To invest in Ambuja Cements Ltd shares, open a brokerage account, fund it, and place a buy order through your trading platform. Research the stock, analyze its performance, and consider consulting a financial advisor before investing.
Determining if Ambuja Cements India is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
