Ambuja Cements (AMBUJACEM.NS)
Materials · NSE · India
Fundamentals
Valuation and ratings
Ambuja Cements trades at ₹433.60, which is 69% below the ₹732.66 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 67 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 22.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Ambuja Cements
Ambuja Cements Limited, together with its subsidiaries, manufactures, markets, and sells cement and related products to individual home builders, developers, institutional clients, masons, contractors, architects, and construction professionals in India. The company operates through Cement and Ready Mix Concrete segments. It offers Adani Ambuja Kawach, a water-repellent cement; Adani Ambuja Plus, a special cement for stronger, denser, and leak-proof concrete; Adani Ambuja cement; Adani Ambuja Compocem, a slag and silicate enriched composite cement; and Adani Ambuja cool walls, a thermally insulated wall solution with heat barrier technology that keeps homes 5°C cooler, as well as Portland pozzolana cement and Ordinary Portland cement. The company was formerly known as Gujarat Ambuja Cements Limited and changed its name to Ambuja Cements Limited in April 2007. Ambuja Cements Limited was incorporated in 1981 and is based in Ahmedabad, India.
AMBUJACEM.NS passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Ambuja Cements (AMBUJACEM.NS) undervalued?
Against our discounted cash flow estimate of ₹732.66, AMBUJACEM.NS at ₹433.60 is 69% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is AMBUJACEM.NS's P/E ratio?
AMBUJACEM.NS trades at 22.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.