Ambuja Cements Limited

NSEI:AMBUJACEM Stock Report

Market Cap: ₹1.2t

Ambuja Cements Valuation

Is AMBUJACEM 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 AMBUJACEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMBUJACEM (₹504.95) is trading below our estimate of fair value (₹590.39)

Significantly Below Fair Value: AMBUJACEM 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 AMBUJACEM?

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

The above table shows the Price to Earnings ratio for AMBUJACEM. This is calculated by dividing AMBUJACEM's market cap by their current earnings.
What is AMBUJACEM's PE Ratio?
PE Ratio41.8x
Earnings₹29.74b
Market Cap₹1.24t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AMBUJACEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.7x
SHREECEM Shree Cement
53.1x17.2%₹918.9b
GRASIM Grasim Industries
39.8x-34.4%₹1.8t
ULTRACEMCO UltraTech Cement
50.4x25.3%₹3.3t
ACC ACC
19.7x12.9%₹402.8b
AMBUJACEM Ambuja Cements
41.8x27.3%₹1.2t

Price-To-Earnings vs Peers: AMBUJACEM is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the peer average (40.7x).

Price to Earnings Ratio vs Industry

How does AMBUJACEM'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
AMBUJACEM 41.8xIndustry Avg. 37.8xNo. of Companies9PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AMBUJACEM is expensive based on its Price-To-Earnings Ratio (41.8x) compared to the Indian Basic Materials industry average (37.8x).

Price to Earnings Ratio vs Fair Ratio

What is AMBUJACEM'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.

AMBUJACEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio41.8x
Fair PE Ratio46.2x

Price-To-Earnings vs Fair Ratio: AMBUJACEM is good value based on its Price-To-Earnings Ratio (41.8x) compared to the estimated Fair Price-To-Earnings Ratio (46.2x).

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 AMBUJACEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹504.95
₹647.78
+28.3%
15.6%₹950.00₹410.00n/a37
Nov ’25₹582.45
₹654.35
+12.3%
16.2%₹950.00₹410.00n/a37
Oct ’25₹632.45
₹679.75
+7.5%
15.8%₹835.00₹410.00n/a36
Sep ’25₹617.05
₹681.42
+10.4%
15.6%₹835.00₹410.00n/a36
Aug ’25₹664.00
₹675.47
+1.7%
16.5%₹840.00₹410.00n/a36
Jul ’25₹695.00
₹650.68
-6.4%
17.2%₹840.00₹410.00n/a37
Jun ’25₹634.05
₹626.38
-1.2%
16.9%₹840.00₹410.00n/a37
May ’25₹619.90
₹580.80
-6.3%
19.8%₹950.00₹350.00n/a35
Apr ’25₹621.50
₹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₹565.05
₹537.52
-4.9%
14.4%₹660.00₹350.00n/a33
Jan ’25₹534.30
₹470.39
-12.0%
13.7%₹600.00₹325.00n/a33
Dec ’24₹442.00
₹465.26
+5.3%
13.2%₹600.00₹325.00n/a35
Nov ’24₹406.65
₹463.42
+14.0%
14.0%₹600.00₹300.00₹582.4536
Oct ’24₹424.80
₹466.89
+9.9%
13.7%₹602.00₹300.00₹632.4536
Sep ’24₹433.90
₹471.54
+8.7%
13.4%₹602.00₹300.00₹617.0539
Aug ’24₹461.55
₹437.76
-5.2%
13.2%₹570.00₹300.00₹664.0037
Jul ’24₹425.90
₹435.19
+2.2%
13.7%₹570.00₹300.00₹695.0036
Jun ’24₹429.25
₹431.41
+0.5%
12.9%₹570.00₹300.00₹634.0537
May ’24₹396.50
₹432.14
+9.0%
12.2%₹570.00₹340.00₹619.9036
Apr ’24₹365.55
₹439.81
+20.3%
13.0%₹570.00₹340.00₹621.5036
Mar ’24₹353.60
₹440.09
+24.5%
13.1%₹570.00₹340.00₹617.6034
Feb ’24₹334.10
₹495.77
+48.4%
19.2%₹752.00₹305.00₹565.0535
Jan ’24₹524.10
₹490.03
-6.5%
20.0%₹752.00₹305.00₹534.3037
Dec ’23₹580.95
₹488.95
-15.8%
19.9%₹752.00₹305.00₹442.0037
Nov ’23₹544.05
₹479.65
-11.8%
21.0%₹752.00₹305.00₹406.6537

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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