Ambuja Cements Limited (AMBUJACEM) AI Stock Analysis

• Market Cap: ₹1.39T
• Dividend Yield: 0.35%
• Average Volume (3M): 850.88K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.02
• Revenue Growth: 9.41%
• EPS Growth: 8.70%
• Country: IN
• Employees: 3,548
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 2,471,823,500
• 10 Day Avg. Volume: 35,629
• 30 Day Avg. Volume: 850,878
• PEG Ratio: -5.72
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 3.71
• P/FCF Ratio: -20.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹670.20
• Price Target Upside: 17.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 64 Neutral
• Price Target: ₹610.00 ▲(6.77% Upside)

Ambuja Cements Limited's overall stock score is primarily influenced by its strong financial performance, despite concerns over negative free cash flow. The technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. These factors combined result in a moderate overall score.

Ambuja Cements Limited Business Overview & Revenue Model

Company Description

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. The company offers Portland pozzolana cement and ordinary Portland cement, as well as temperature resistant concrete blocks, Blaine Portland cement, and micro materials. It sells its products through dealers, authorized retail stockiest, retailers, and authorized sales representatives. The company was formerly known as Gujarat Ambuja Cements Limited and changed its name to Ambuja Cements Limited in April 2007. The company was incorporated in 1981 and is based in Mumbai, India. Ambuja Cements Limited operates as a subsidiary of Holderind Investments Ltd.

How the Company Makes Money

Ambuja Cements generates revenue primarily through the sale of cement and clinker, which are essential materials in construction and infrastructure projects. The company's revenue model is built on a combination of direct sales to retail customers, bulk sales to large construction firms, and the supply of cement to government projects. Key revenue streams include the sale of various types of cement, such as ordinary Portland cement and blended cement, as well as value-added products like ready-mix concrete. Additionally, Ambuja Cements benefits from strategic partnerships with suppliers and distributors, which enhance its market reach and operational efficiency. The company's focus on sustainability and innovation also allows it to tap into growing demand for eco-friendly construction materials, thereby contributing positively to its earnings.

Ambuja Cements Limited Financial Statement Overview

Summary

Ambuja Cements Limited demonstrates strong revenue growth and profitability, supported by a robust balance sheet with low leverage and high equity financing. However, the negative free cash flow poses potential liquidity concerns, which slightly offsets the overall financial strength.

Income Statement

Ambuja Cements Limited has shown a solid revenue growth trajectory with a 2.94% increase in total revenue from 2024 to 2025. Despite a decrease in EBIT margin from 13.85% in 2024 to 10.36% in 2025, the company's net profit margin improved from 10.92% to 12.37%, indicating enhanced profitability. The EBITDA margin increased to 25.53%, reflecting strong operational performance.

Balance Sheet

The company maintains a healthy financial position with a low debt-to-equity ratio of 0.01, suggesting minimal leverage risk. The equity ratio is robust at 66.02% in 2025, indicating strong equity financing. Return on equity improved from 8.63% in 2024 to 7.80% in 2025, suggesting efficient use of shareholder funds despite a slight decline.

Cash Flow

There is a notable decrease in free cash flow, turning negative in 2025, posing potential liquidity concerns. The operating cash flow to net income ratio is 0.54, indicating some challenges in converting profits into cash flow. However, the company's ability to manage financing activities remains strong, as seen from positive financing cash flows.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	350.45B	350.45B	331.60B	310.37B	289.65B	245.16B
Gross Profit	195.84B	195.84B	191.75B	167.76B	189.09B	163.06B
EBITDA	52.98B	57.44B	62.52B	36.22B	61.48B	49.39B
Net Income	41.74B	41.67B	35.73B	19.25B	27.80B	23.65B
Balance Sheet
Total Assets	809.45B	809.45B	652.98B	517.21B	452.07B	397.21B
Cash, Cash Equivalents and Short-Term Investments	98.83B	98.83B	160.21B	97.51B	113.94B	86.19B
Total Debt	7.88B	7.88B	6.99B	0.00	4.77B	4.71B
Total Liabilities	171.34B	171.34B	144.52B	129.65B	127.09B	106.22B
Stockholders Equity	534.43B	534.43B	414.50B	140.69B	253.54B	227.58B
Cash Flow
Free Cash Flow	0.00	-64.50B	19.59B	-27.97B	29.75B	30.99B
Operating Cash Flow	0.00	22.37B	64.41B	5.88B	53.09B	48.32B
Investing Cash Flow	0.00	-75.31B	-99.80B	-115.85B	-20.07B	-13.17B
Financing Cash Flow	0.00	55.92B	59.23B	23.45B	-5.16B	-39.56B

Ambuja Cements Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 571.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AMBUJACEM, the sentiment is Negative. The current price of 571.3 is above the 20-day moving average (MA) of 566.07, below the 50-day MA of 571.63, and above the 200-day MA of 550.50, indicating a neutral trend. The MACD of -4.15 indicates Positive momentum. The RSI at 38.74 is Neutral, neither overbought nor oversold. The STOCH value of 19.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AMBUJACEM.

Ambuja Cements Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACC	―	₹344.16B	14.23	―	0.40%	9.72%	8.34%
AMBUJACEM	―	₹1.39T	32.16	―	0.35%	9.41%	8.70%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKLAKSHMI	―	₹103.30B	25.83	―	0.78%	-3.81%	-18.23%
NUVOCO	―	₹151.81B	55.45	―	―	5.09%	458.10%
SHREECEM	―	₹1.04T	72.07	―	0.38%	1.58%	-0.75%
HEIDELBERG	―	₹43.83B	38.05	―	3.60%	-3.83%	-25.91%

Ambuja Cements Limited Corporate Events

Ambuja Cements Updates Investor Presentation with New Addendum

Ambuja Cements Limited has released an addendum to its investor presentation for the quarter ending June 30, 2025. This update, which follows their previous communication, highlights the operational and financial performance of the company during this period. The addendum is available on the company’s website, indicating a commitment to transparency and communication with stakeholders.

Ambuja Cements Announces Auditor Change and Releases Q2 Financial Results

Ambuja Cements Limited has announced a change in its internal auditor, with Mr. Shobhit Dwivedi set to replace Mr. Mithlesh Satija following his superannuation. The company also released its unaudited financial results for the quarter ending June 30, 2025, which were approved by the Board of Directors. These changes and financial disclosures are part of the company’s compliance with SEBI regulations, potentially impacting its operational transparency and stakeholder confidence.

Ambuja Cements Releases Q1 FY’26 Operational and Financial Highlights

Ambuja Cements Limited has released an investor presentation detailing the operational and financial highlights for the quarter ending June 30, 2025. This presentation, part of their compliance with SEBI regulations, is intended to inform stakeholders about the company’s performance and strategic direction. The release of these insights could impact the company’s market positioning and provide stakeholders with an understanding of its financial health and operational strategies.