Ambuja Cements Limited

BSE:500425 Stock Report

Market Cap: ₹1.3t

Ambuja Cements Valuation

Is 500425 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500425 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500425 (₹545.25) is trading below our estimate of fair value (₹596.86)

Significantly Below Fair Value: 500425 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500425?

Key metric: As 500425 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500425. This is calculated by dividing 500425's market cap by their current earnings.
What is 500425's PE Ratio?
PE Ratio45.2x
Earnings₹29.74b
Market Cap₹1.34t

Price to Earnings Ratio vs Peers

How does 500425's PE Ratio compare to its peers?

The above table shows the PE ratio for 500425 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.8x
GRASIM Grasim Industries
37x-34.4%₹1.7t
SHREECEM Shree Cement
53.7x17.7%₹930.5b
ULTRACEMCO UltraTech Cement
49.7x25.4%₹3.3t
ACC ACC
18.9x13.4%₹386.8b
500425 Ambuja Cements
45.2x27.8%₹1.3t

Price-To-Earnings vs Peers: 500425 is expensive based on its Price-To-Earnings Ratio (45.2x) compared to the peer average (39.8x).

Price to Earnings Ratio vs Industry

How does 500425's PE Ratio compare vs other companies in the IN Basic Materials Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
500425 45.2xIndustry Avg. 36.7xNo. of Companies9PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500425 is expensive based on its Price-To-Earnings Ratio (45.2x) compared to the Indian Basic Materials industry average (37.2x).

Price to Earnings Ratio vs Fair Ratio

What is 500425's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500425 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.2x
Fair PE Ratio46.4x

Price-To-Earnings vs Fair Ratio: 500425 is good value based on its Price-To-Earnings Ratio (45.2x) compared to the estimated Fair Price-To-Earnings Ratio (46.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500425 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹545.25
₹647.78
+18.8%
15.6%₹950.00₹410.00n/a37
Dec ’25₹531.80
₹647.78
+21.8%
15.6%₹950.00₹410.00n/a37
Nov ’25₹582.90
₹654.35
+12.3%
16.2%₹950.00₹410.00n/a37
Oct ’25₹631.80
₹679.75
+7.6%
15.8%₹835.00₹410.00n/a36
Sep ’25₹617.30
₹681.42
+10.4%
15.6%₹835.00₹410.00n/a36
Aug ’25₹663.95
₹675.47
+1.7%
16.5%₹840.00₹410.00n/a36
Jul ’25₹694.70
₹650.68
-6.3%
17.2%₹840.00₹410.00n/a37
Jun ’25₹634.30
₹626.38
-1.2%
16.9%₹840.00₹410.00n/a37
May ’25₹619.70
₹580.80
-6.3%
19.8%₹950.00₹350.00n/a35
Apr ’25₹621.45
₹579.37
-6.8%
20.3%₹950.00₹350.00n/a35
Mar ’25₹617.60
₹564.83
-8.5%
19.7%₹950.00₹350.00n/a35
Feb ’25₹565.10
₹537.52
-4.9%
14.4%₹660.00₹350.00n/a33
Jan ’25₹534.70
₹470.39
-12.0%
13.7%₹600.00₹325.00n/a33
Dec ’24₹442.10
₹465.26
+5.2%
13.2%₹600.00₹325.00₹531.8035
Nov ’24₹406.75
₹463.42
+13.9%
14.0%₹600.00₹300.00₹582.9036
Oct ’24₹425.00
₹466.89
+9.9%
13.7%₹602.00₹300.00₹631.8036
Sep ’24₹433.70
₹471.54
+8.7%
13.4%₹602.00₹300.00₹617.3039
Aug ’24₹461.60
₹437.76
-5.2%
13.2%₹570.00₹300.00₹663.9537
Jul ’24₹425.85
₹435.19
+2.2%
13.7%₹570.00₹300.00₹694.7036
Jun ’24₹429.20
₹431.41
+0.5%
12.9%₹570.00₹300.00₹634.3037
May ’24₹396.30
₹432.14
+9.0%
12.2%₹570.00₹340.00₹619.7036
Apr ’24₹365.45
₹439.81
+20.3%
13.0%₹570.00₹340.00₹621.4536
Mar ’24₹353.40
₹440.09
+24.5%
13.1%₹570.00₹340.00₹617.6034
Feb ’24₹334.60
₹495.77
+48.2%
19.2%₹752.00₹305.00₹565.1035
Jan ’24₹524.10
₹490.03
-6.5%
20.0%₹752.00₹305.00₹534.7037
Dec ’23₹581.05
₹488.95
-15.9%
19.9%₹752.00₹305.00₹442.1037

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 02:07
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Ambuja Cements Limited is covered by 83 analysts. 28 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Satyadeep JainAmbit Capital
Manish ValechaAnand Rathi Shares and Stock Brokers Limited
null nullAnand Rathi Shares and Stock Brokers Limited