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

Fundamentals

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


Market Performance


7 Day Return

-7.8%

BSE:500425

-6.6%

IN Basic Materials

-2.9%

IN Market


1 Year Return

-16.5%

BSE:500425

-14.7%

IN Basic Materials

-15.9%

IN Market

500425 underperformed the Basic Materials industry which returned -14.7% over the past year.

500425 matched the India Market (-15.9%) over the past year.


Share holder returns

500425IndustryMarket
7 Day-7.8%-6.6%-2.9%
30 Day-8.5%-12.0%-5.7%
90 Day-15.0%-16.7%-11.0%
1 Year-15.9%-16.5%-14.1%-14.7%-14.1%-15.9%
3 Year-23.7%-25.7%-0.8%-2.6%15.7%9.5%
5 Year1.4%-4.3%48.8%44.1%33.2%20.5%

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 based on future cash flows and its price relative to the stock market?

16.47x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ambuja Cements's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ambuja Cements's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ambuja Cements is good value based on earnings compared to the IN Basic Materials industry average.

Ambuja Cements is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Ambuja Cements is poor value based on expected growth next year.


Price Based on Value of Assets

Ambuja Cements is overvalued based on assets compared to the IN Basic Materials industry average.


Next Steps

Future Growth

How is Ambuja Cements expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ambuja Cements's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

Ambuja Cements's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Ambuja Cements's revenue growth is positive but not above the India market average.

Ambuja Cements's earnings growth is positive but not above the India market average.

Ambuja Cements's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Ambuja Cements is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ambuja Cements performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ambuja Cements's year on year earnings growth rate has been positive over the past 5 years.

Ambuja Cements's 1-year earnings growth exceeds its 5-year average (50.2% vs 18.4%)

Ambuja Cements's earnings growth has exceeded the IN Basic Materials industry average in the past year (50.2% vs 17.2%).


Return on Equity

Ambuja Cements has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ambuja Cements used its assets more efficiently than the IN Basic Materials industry average last year based on Return on Assets.


Return on Capital Employed

Ambuja Cements has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ambuja Cements's financial position?


Financial Position Analysis

Ambuja Cements is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ambuja Cements's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Ambuja Cements's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (0.4% vs 0.1% today).

Debt is well covered by operating cash flow (9038.7%, greater than 20% of total debt).

Ambuja Cements earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

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?

1.23%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ambuja Cements's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Ambuja Cements's dividend is below the markets top 25% of dividend payers in India (2.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).


Next Steps

Management

What is the CEO of Ambuja Cements's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Bimlendra Jha (52yo)

0.4yrs

Tenure

0

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


Management Age and Tenure

2.7yrs

Average Tenure

53yo

Average Age

The tenure for the Ambuja Cements management team is about average.


Board Age and Tenure

6.8yrs

Average Tenure

62yo

Average Age

The tenure for the Ambuja Cements board of directors is about average.


Insider Trading

Ambuja Cements individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹7,687,99829 May 19
S. Gupta
EntityIndividual
Shares33,500
Max Price₹229.49
Sell₹22,125,99806 Mar 19
Bajranglal Taparia
EntityIndividual
Shares100,000
Max Price₹221.26
Sell₹2,838,50020 Dec 18
Bajranglal Taparia
EntityIndividual
Shares50,000
Max Price₹56.77
Sell₹10718 Dec 18
Bajranglal Taparia
EntityIndividual
Shares50,000
Max Price₹0.0021
Sell₹731,60020 Sep 18
Sushil Thakur
EntityIndividual
Shares3,100
Max Price₹236.00

Ownership Breakdown


Management Team

  • M. Agarwal (50yo)

    Vice President of Treasury and Investor Relations

    • Tenure: 0.0yrs
  • Sampat Mantri (58yo)

    Head of Accounts & Reporting and Senior VP of Finance

    • Tenure: 4.9yrs
  • Meenakshi Narain (58yo)

    Chief Human Resources Officer

    • Tenure: 0.0yrs
  • Bimlendra Jha (52yo)

    CEO, MD & Additional Director

    • Tenure: 0.4yrs
  • R. Kothari (63yo)

    Senior Vice President of Technical

    • Tenure: 0.0yrs
  • Deepak Mehra (53yo)

    Chief Marketing Officer

    • Tenure: 0.0yrs
  • Rajiv Gandhi

    Compliance Officer & Company Secretary

    • Tenure: 0.0yrs
    • Compensation: ₹10.68m
  • Bibek Chattopadhyay

    Head of Corporate Communications

    • Tenure: 6.4yrs
  • Sanjay Gupta

    Chief Corporate Officer

    • Tenure: 0.0yrs
  • Sonal Shrivastava (48yo)

    Chief Financial Officer

    • Tenure: 0.3yrs

Board Members

  • Omkar Goswami (63yo)

    Non-Executive Independent Director

    • Tenure: 13.1yrs
    • Compensation: ₹4.43m
  • Narotam Sekhsaria (70yo)

    Principal Founder & Non-Executive Chairman

    • Tenure: 9.9yrs
    • Compensation: ₹5.55m
  • Nasser Munjee (67yo)

    Non-Executive Independent Director

    • Tenure: 18.0yrs
    • Compensation: ₹4.49m
  • Rajendra Chitale (58yo)

    Non-Executive Independent Director

    • Tenure: 17.1yrs
    • Compensation: ₹5.67m
  • Shailesh Haribhakti (63yo)

    Non-Executive Independent Director

    • Tenure: 13.3yrs
    • Compensation: ₹4.26m
  • Jan Jenisch (53yo)

    Vice Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: ₹2.05m
  • Bimlendra Jha (52yo)

    CEO, MD & Additional Director

    • Tenure: 0.4yrs
  • Christof Hassig (61yo)

    Non-Executive Non-Independent Director

    • Tenure: 3.7yrs
    • Compensation: ₹2.40m
  • Martin Kriegner (58yo)

    Non-Executive Non-Independent Director

    • Tenure: 3.5yrs
    • Compensation: ₹540.00k
  • Ranjit Shahani (70yo)

    Non-Executive & Non Independent Director

    • Tenure: 0.3yrs

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: ₹392.562b
  • 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.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 12:41
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.