BSE:500425

Stock Analysis Report

Executive Summary

Ambuja Cements Limited, together with its subsidiaries, manufactures and sells cement and cement related products to individual homebuilders, masons and contractors, and architects and engineers in India.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Ambuja Cements's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500425 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.2%

500425

-2.7%

IN Basic Materials

-1.5%

IN Market


1 Year Return

0.4%

500425

19.7%

IN Basic Materials

10.7%

IN Market

Return vs Industry: 500425 underperformed the Indian Basic Materials industry which returned 22.1% over the past year.

Return vs Market: 500425 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

500425IndustryMarket
7 Day-5.2%-2.7%-1.5%
30 Day-4.5%-2.1%-2.7%
90 Day-0.3%4.9%1.3%
1 Year1.1%0.4%20.4%19.7%12.7%10.7%
3 Year-13.5%-15.8%6.1%4.4%22.0%15.1%
5 Year-17.5%-22.2%34.7%30.4%34.5%22.0%

Price Volatility Vs. Market

How volatile is Ambuja Cements's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ambuja Cements undervalued compared to its fair value and its price relative to the market?

16.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500425 (₹200.95) is trading above our estimate of fair value (₹161.11)

Significantly Below Fair Value: 500425 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500425 is poor value based on its PE Ratio (16.1x) compared to the Basic Materials industry average (13.1x).

PE vs Market: 500425 is poor value based on its PE Ratio (16.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 500425 is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 500425 is overvalued based on its PB Ratio (1.7x) compared to the IN Basic Materials industry average (0.8x).


Next Steps

Future Growth

How is Ambuja Cements forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500425's forecast earnings growth (8.2% per year) is above the savings rate (6.5%).

Earnings vs Market: 500425's earnings (8.2% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: 500425's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500425's revenue (6.2% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 500425's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500425's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Ambuja Cements performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500425 has high quality earnings.

Growing Profit Margin: 500425's current net profit margins (9.3%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: 500425's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: 500425's earnings growth over the past year (53.7%) exceeds its 5-year average (19.5% per year).

Earnings vs Industry: 500425 earnings growth over the past year (53.7%) exceeded the Basic Materials industry 34%.


Return on Equity

High ROE: 500425's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ambuja Cements's financial position?


Financial Position Analysis

Short Term Liabilities: 500425's short term assets (₹134.2B) exceed its short term liabilities (₹84.4B).

Long Term Liabilities: 500425's short term assets (₹134.2B) exceed its long term liabilities (₹13.4B).


Debt to Equity History and Analysis

Debt Level: 500425's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: 500425's debt to equity ratio has reduced from 0.4% to 0.1% over the past 5 years.

Debt Coverage: 500425's debt is well covered by operating cash flow (9038.7%).

Interest Coverage: 500425 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500425 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500425's debt is covered by short term assets (assets are 394.9x debt).


Next Steps

Dividend

What is Ambuja Cements's current dividend yield, its reliability and sustainability?

0.75%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: 500425's dividend (0.75%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500425's dividend (0.75%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 500425's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500425's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12%), 500425's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500425's dividends in 3 years are forecast to be well covered by earnings (28.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Bimlendra Jha (52yo)

0.9yrs

Tenure

Mr. Bimlendra Jha has been Chief Executive Officer and Managing Director at Ambuja Cements Limited since March 1, 2019. Mr. Jha served as Chief Executive Officer of Tata Steel UK at Tata Steel Europe Limit ...


Leadership Team

NamePositionTenureCompensationOwnership
Rajiv Gandhi
Compliance Officer & Company Secretary0yrs₹10.68m0.00010% 404.5k
Bimlendra Jha
CEO, MD & Additional Director0.9yrsno datano data
Sonal Shrivastava
Chief Financial Officer0.8yrsno datano data
Sampat Mantri
Head of Accounts & Reporting and Senior VP of Finance5.4yrsno datano data
R. Kothari
Senior Vice President of Technical0yrsno datano data
M. Agarwal
Vice President of Treasury and Investor Relations0yrsno datano data
Bibek Chattopadhyay
Head of Corporate Communications6.9yrsno datano data
Deepak Mehra
Chief Marketing Officer0yrsno datano data
Sanjay Gupta
Chief Corporate Officer0yrsno data0.0011% 4.4m
Meenakshi Narain
Chief Human Resources Officer0yrsno datano data

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: 500425's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bimlendra Jha
CEO, MD & Additional Director0.9yrsno datano data
Omkar Goswami
Non-Executive Independent Director13.6yrs₹4.43mno data
Narotam Sekhsaria
Principal Founder & Non-Executive Chairman10.4yrs₹5.55m0.000050% 202.2k
Nasser Munjee
Non-Executive Independent Director18.5yrs₹4.49mno data
Rajendra Chitale
Non-Executive Independent Director17.6yrs₹5.67mno data
Shailesh Haribhakti
Non-Executive Independent Director13.8yrs₹4.26mno data
Jan Jenisch
Vice Chairman of the Board2.3yrs₹2.05mno data
Christof Hassig
Non-Executive Non-Independent Director4.2yrs₹2.40mno data
Martin Kriegner
Non-Executive Non-Independent Director4yrs₹540.00kno data
Ranjit Shahani
Non-Executive & Non Independent Director0.8yrsno datano data

7.3yrs

Average Tenure

62yo

Average Age

Experienced Board: 500425's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ambuja Cements Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ambuja Cements Limited
  • Ticker: 500425
  • Exchange: BSE
  • Founded: 1981
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹404.476b
  • Shares outstanding: 1.99b
  • Website: https://www.ambujacement.com

Number of Employees


Location

  • Ambuja Cements Limited
  • Elegant Business Park
  • Behind Kotak Mahindra Bank
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMCEMBDL (Bourse de Luxembourg)GDR-REPR 1 ORD INR2 REG SLUUSDJun 1994
500425BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1998
AMBUJACEMNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1998

Biography

Ambuja Cements Limited, together with its subsidiaries, manufactures and sells cement and cement related products to individual homebuilders, masons and contractors, and architects and engineers in India. It primarily offers Portland pozzolana cement and ordinary Portland cement. The company sells its products through a network of dealers and retailers. It also exports its products. The company was formerly known as Gujarat Ambuja Cements Limited and changed its name to Ambuja Cements Limited in April 2007. The company was incorporated in 1981 and is headquartered in Mumbai, India. Ambuja Cements Limited is a subsidiary of Holderind Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:43
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.