BSE:500425

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with limited growth.


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

-4.9%

500425

-1.1%

IN Basic Materials

-2.2%

IN Market


1 Year Return

-4.1%

500425

-7.9%

IN Basic Materials

-0.8%

IN Market

Return vs Industry: 500425 exceeded the Indian Basic Materials industry which returned -7.9% over the past year.

Return vs Market: 500425 underperformed the Indian Market which returned -0.8% over the past year.


Shareholder returns

500425IndustryMarket
7 Day-4.9%-1.1%-2.2%
30 Day-8.5%-6.1%-1.3%
90 Day9.3%0.3%8.0%
1 Year-3.3%-4.1%-7.3%-7.9%1.0%-0.8%
3 Year-18.8%-20.8%-10.4%-12.0%2.8%-2.1%
5 Year6.9%1.9%34.9%30.9%43.1%32.4%

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?

20.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500425 (₹206.8) is trading above our estimate of fair value (₹108.29)

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 (20.7x) compared to the IN Basic Materials industry average (18.7x).

PE vs Market: 500425 is poor value based on its PE Ratio (20.7x) compared to the Indian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: 500425 is poor value based on its PEG Ratio (1.7x)


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 (0.9x).


Next Steps

Future Growth

How is Ambuja Cements forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500425's forecast earnings growth (11.9% per year) is above the savings rate (7.2%).

Earnings vs Market: 500425's earnings (11.9% per year) are forecast to grow slower than the Indian market (26.2% per year).

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

Revenue vs Market: 500425's revenue (12.4% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: 500425's revenue (12.4% 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 (8.5%).


Next Steps

Past Performance

How has Ambuja Cements performed over the past 5 years?

21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500425 has high quality earnings.

Growing Profit Margin: 500425's current net profit margins (8.3%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: 500425's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: 500425's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500425 had negative earnings growth (-16.5%) over the past year, making it difficult to compare to the Basic Materials industry average (-4.6%).


Return on Equity

High ROE: 500425's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Ambuja Cements's financial position?


Financial Position Analysis

Short Term Liabilities: 500425's short term assets (₹149.9B) exceed its short term liabilities (₹88.9B).

Long Term Liabilities: 500425's short term assets (₹149.9B) exceed its long term liabilities (₹16.7B).


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 0.3% to 0.1% over the past 5 years.

Debt Coverage: 500425's debt is well covered by operating cash flow (12765.5%).

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


Balance Sheet


Next Steps

Dividend

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

1.18%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500425's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 500425's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500425's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500425's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500425 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500425's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

4.7yrs

Average board tenure


CEO

Neeraj Akhoury (52 yo)

0.58

Tenure

Mr. Neeraj Akhoury has been Director of ACC Limited since December 16, 2016 and its Non-Executive Non-Independent Director since February 21, 2020. He had been Chief Executive Officer and Managing Director ...


Board Members

NamePositionTenureCompensationOwnership
Narotam Sekhsaria
Principal Founder & Non-Executive Non-Independent Chairman11yrs₹5.34m0.000050%
₹ 205.3k
Neeraj Akhoury
MD, CEO & Director0.58yrno datano data
Omkar Goswami
Non-Executive Independent Director14.17yrs₹4.09mno data
Nasser Munjee
Non-Executive Independent Director19.08yrs₹4.14mno data
Rajendra Chitale
Non-Executive Independent Director18.17yrs₹5.39m0.00025%
₹ 1.0m
Shailesh Haribhakti
Non-Executive Independent Director14.33yrs₹4.22mno data
Ranjit Shahani
Non-Executive & Non Independent Director1.42yrs₹1.80mno data
Jan Jenisch
Non Executive Non Independent Vice Chairman of the Board2.92yrs₹2.20mno data
Christof Hassig
Non-Executive Non-Independent Director4.75yrs₹2.20mno data
Martin Kriegner
Non-Executive Non-Independent Director4.58yrsno datano data
Roland Lothar Kohler
Non Executive Non Independent Director2.58yrs₹2.20mno data
Hwee Then
Non-Executive Non-Independent Director1.58yrs₹3.47mno data

4.7yrs

Average Tenure

63yo

Average Age

Experienced Board: 500425's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 500425 insiders have only sold shares 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: ₹410.631b
  • Shares outstanding: 1.99b
  • Website: https://www.ambujacement.com

Number of Employees


Location

  • Ambuja Cements Limited
  • Elegant Business Park
  • MIDC Cross Road ‘B’
  • 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 markets 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 Analysis2020/09/22 19:12
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.