Ambuja Cements Limited

BSE:500425 Stock Report

Market Cap: ₹1.4t

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 (₹483.75) is trading below our estimate of fair value (₹591.56)

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 Ratio40.1x
Earnings₹29.74b
Market Cap₹1.35t

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 Average38.8x
GRASIM Grasim Industries
38.4x-34.4%₹1.7t
SHREECEM Shree Cement
50.1x17.2%₹869.8b
ULTRACEMCO UltraTech Cement
48.2x25.3%₹3.1t
ACC ACC
18.6x12.9%₹410.4b
500425 Ambuja Cements
40.1x27.3%₹1.4t

Price-To-Earnings vs Peers: 500425 is expensive based on its Price-To-Earnings Ratio (40.1x) compared to the peer average (38.8x).

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 40.1xIndustry Avg. 37.5xNo. of Companies9PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500425 is expensive based on its Price-To-Earnings Ratio (40.1x) compared to the Indian Basic Materials industry average (37.5x).

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 Ratio40.1x
Fair PE Ratio45.9x

Price-To-Earnings vs Fair Ratio: 500425 is good value based on its Price-To-Earnings Ratio (40.1x) compared to the estimated Fair Price-To-Earnings Ratio (45.9x).

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₹483.75
₹647.78
+33.9%
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₹325.00n/a35
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
Nov ’23₹543.90
₹479.65
-11.8%
21.0%₹752.00₹305.00₹406.7537

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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