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Ambuja Cements Limited (IN:AMBUJACEM)
:AMBUJACEM
India Market

Ambuja Cements Limited (AMBUJACEM) AI Stock Analysis

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IN:AMBUJACEM

Ambuja Cements Limited

(AMBUJACEM)

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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
₹458.00
▼(-18.97% Downside)
Action:ReiteratedDate:10/30/25
Ambuja Cements Limited shows strong financial performance with solid revenue growth and profitability, but faces challenges with negative free cash flow. The technical indicators suggest a neutral trend, and the stock appears overvalued with a low dividend yield. These factors contribute to a moderate overall stock score.
Positive Factors
Very low leverage
A debt-to-equity ratio of 0.01 indicates minimal leverage and strong balance-sheet flexibility. Over 2-6 months this reduces refinancing and interest-rate risk, supports countercyclical capex or M&A, and allows management to prioritize strategic investments without heavy debt servicing constraints.
Sustained revenue and margin strength
Consistent revenue growth with rising EBITDA and net profit margins signals improving operational efficiency and pricing or mix benefits. These durable margin gains enhance earnings resilience across cycles and provide scope to fund reinvestment, pay down liabilities, or sustain returns to shareholders.
High equity financing
A 66% equity ratio points to conservative capital structure and strong internal funding capacity. This durable funding profile lowers capital costs, limits dilution risk from future financing, and supports long-term investments in capacity or distribution without materially increasing leverage.
Negative Factors
Negative free cash flow
Free cash flow turning negative is a structural concern for capital-intensive cement operations. Persistent negative FCF can constrain reinvestment, dividend policy, and deleveraging, forcing reliance on external financing or asset sales to fund growth or weather downturns.
Weak cash conversion
An operating cash flow to net income ratio of 0.54 shows earnings are not converting efficiently into cash. Over months this stresses liquidity, increases working-capital financing needs in a volume-driven industry, and reduces the buffer to absorb cyclical demand slumps or sustained capex.
EBIT margin pressure
A drop in EBIT margin of several hundred basis points indicates rising costs or margin squeeze on core operations. If persistent, margin compression can erode competitive positioning, limit reinvestment capacity, and make the business more sensitive to commodity and fuel-price swings typical in cement manufacturing.

Ambuja Cements Limited (AMBUJACEM) vs. iShares MSCI India ETF (INDA)

Ambuja Cements Limited Business Overview & Revenue Model

Company DescriptionAmbuja 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 MoneyAmbuja Cements makes money primarily by manufacturing and selling cement to a broad customer base that includes individual homebuilders, contractors, real estate developers, and infrastructure/project customers. Its core revenue stream comes from domestic sales of cement (including sales through retail dealer networks and direct institutional/project channels), where revenue is generally recognized based on volumes sold and realized selling prices in different regions. Earnings are influenced by product mix, regional demand, and distribution reach, as cement is a high-volume, logistics-intensive product; accordingly, the company’s ability to supply markets efficiently (through its plant network and distribution channels) is an important driver of realizations and margins. Any additional revenue streams beyond cement (e.g., related building materials, services, or other operating income) are not available (null). Significant partnerships or customer concentration details are not available (null).

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.
Income Statement
82
Very Positive
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
78
Positive
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
65
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Dec 2022Dec 2021
Income Statement
Total Revenue369.77B350.45B331.60B310.37B289.65B245.16B
Gross Profit198.44B195.84B191.75B167.76B189.09B163.06B
EBITDA63.91B57.44B62.52B36.22B61.48B49.39B
Net Income43.15B41.67B35.73B19.25B27.80B23.65B
Balance Sheet
Total Assets0.00809.45B652.98B517.21B452.07B397.21B
Cash, Cash Equivalents and Short-Term Investments78.15B98.83B160.21B97.51B113.94B86.19B
Total Debt0.007.88B6.99B0.004.77B4.71B
Total Liabilities-638.11B171.34B144.52B129.65B127.09B106.22B
Stockholders Equity638.11B534.43B414.50B140.69B253.54B227.58B
Cash Flow
Free Cash Flow0.00-64.50B19.59B-27.97B29.75B30.99B
Operating Cash Flow0.0022.37B64.41B5.88B53.09B48.32B
Investing Cash Flow0.00-75.31B-99.80B-115.85B-20.07B-13.17B
Financing Cash Flow0.0055.92B59.23B23.45B-5.16B-39.56B

Ambuja Cements Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price565.20
Price Trends
50DMA
521.17
Negative
100DMA
536.51
Negative
200DMA
556.32
Negative
Market Momentum
MACD
-22.94
Positive
RSI
21.13
Positive
STOCH
8.15
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 565.2 is above the 20-day moving average (MA) of 491.12, above the 50-day MA of 521.17, and above the 200-day MA of 556.32, indicating a bearish trend. The MACD of -22.94 indicates Positive momentum. The RSI at 21.13 is Positive, neither overbought nor oversold. The STOCH value of 8.15 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
₹257.92B20.190.43%15.13%63.32%
64
Neutral
₹1.06T168.780.37%14.92%63.27%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
₹72.41B42.430.82%6.13%31.60%
57
Neutral
₹33.87B63.474.00%3.06%-1.48%
57
Neutral
₹842.10B89.880.73%1.58%-0.75%
55
Neutral
₹102.81B64.485.09%458.10%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:AMBUJACEM
Ambuja Cements Limited
428.35
-60.61
-12.40%
IN:ACC
ACC Limited
1,373.45
-501.48
-26.75%
IN:HEIDELBERG
Heidelbergcement India Limited.
149.45
-33.13
-18.15%
IN:JKLAKSHMI
JK Lakshmi Cement Limited
583.30
-152.28
-20.70%
IN:NUVOCO
Nuvoco Vistas Corporation Limited
287.85
-0.80
-0.28%
IN:SHREECEM
Shree Cement Limited
23,339.35
-4,281.54
-15.50%

Ambuja Cements Limited Corporate Events

Ambuja Cements Plans Global Investor Meets in Tokyo and Hong Kong
Mar 10, 2026

Ambuja Cements has announced that it will participate in a series of investor and analyst meetings in mid-March 2026, including Nomura India Corporate Day in Tokyo and the Jefferies Asia Forum 2026 in Hong Kong. The company emphasized that discussions in these physical meetings will rely solely on publicly available information, signaling a focus on transparent engagement with global institutional investors without disclosing any unpublished price-sensitive information.

Ambuja Cements Completes Dispatch of Postal Ballot Notice and Publishes Shareholder Advertisements
Mar 3, 2026

Ambuja Cements Limited has announced that it has completed the dispatch of its Postal Ballot Notice and explanatory statement dated January 30, 2026, to its shareholders. The company has also published related advertisements in the English and Gujarati editions of the Financial Express in Ahmedabad, and made the intimation available on its website, reinforcing transparent communication and regulatory compliance with stakeholders and stock exchanges.

The notice to exchanges on March 3, 2026, confirms that the postal ballot process is underway, which is a mechanism for seeking shareholder approval on corporate matters without convening a physical meeting. This step signals active shareholder engagement and adherence to disclosure norms, which can be important for governance standards and investor confidence in a widely held, publicly listed cement company like Ambuja Cements.

Ambuja Cements Seeks Shareholder Nod for Key Related-Party Deals via Postal Ballot
Mar 2, 2026

Ambuja Cements Limited has initiated a postal ballot process to seek shareholder approval for material related party transactions with ACC Limited for the financial year 2026-27. The company is also requesting consent for material related party transactions with Orient Cement Limited for the same period, signaling continued operational linkages within the broader cement ecosystem.

In line with regulatory requirements, the company will conduct the voting exclusively through remote e-voting facilitated by CDSL, with the window open from March 3, 2026, to April 1, 2026. The notice and results will be made available on the company’s and CDSL’s websites, underscoring Ambuja’s adherence to SEBI Listing Regulations and corporate governance norms for approval of significant inter-company dealings.

Ambuja Cements Posts Investor Call Audio on Quarterly Results
Jan 31, 2026

Ambuja Cements Limited has notified stock exchanges that the audio recording of its recent analysts and investors call, discussing the company’s unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, has been uploaded to its website. By providing this recording online, the company is enhancing transparency and accessibility of financial disclosures for investors and analysts, supporting informed decision-making and aligning with best practices in corporate governance and investor communication.

Ambuja Cements posts analyst call audio on Q3 FY2025 results for investor access
Jan 31, 2026

Ambuja Cements Limited has notified stock exchanges that it has uploaded on its website the audio recording of its analysts and investors call discussing the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. By publicly providing access to this call recording, the company reinforces disclosure and transparency for shareholders and market participants, facilitating wider investor engagement and enabling stakeholders to review management’s commentary on recent financial performance and outlook.

Ambuja Cements Delivers Record Q3, Accelerates ‘One Cement Platform’ Strategy
Jan 30, 2026

Ambuja Cements reported a strong performance for the quarter ended 31 December 2025, with profit after tax surging 258% year-on-year to Rs 3,781 crore, a 20% rise in revenue, and its highest-ever quarterly sales volume of 18.9 million tonnes, while EBITDA climbed 53% and margins improved on the back of higher trade and premium cement sales. The company remains debt-free with top-tier credit ratings, has operationalised a new 2.4 MTPA grinding unit at Marwar, advanced its ‘One Cement Platform’ strategy through the planned amalgamation of ACC and Orient Cement into Ambuja, and continued to scale both its digital CiNOC initiative and renewable energy portfolio, moves that collectively strengthen its market leadership, capital efficiency and long-term value proposition for stakeholders.

Ambuja Cements Clears Q3 FY26 Results, Announces Key Management Changes
Jan 30, 2026

Ambuja Cements Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, in line with regulatory requirements, and will publish these on the company’s website. The board also announced senior management changes effective February 1, 2026, including the appointment of Sanjay Kumar Behl, Head – Sales, Marketing and Logistics, and Col. Ravinder Rajput, Head – Security, as senior management personnel, while Managing Director Ajay Kapur will superannuate and cease to serve as managing director, director and key managerial personnel from January 31, 2026, signaling a notable leadership transition at the company.

Ambuja Cements Clears Q3 FY26 Results, Announces Leadership Transition as MD Ajay Kapur to Retire
Jan 30, 2026

Ambuja Cements Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, in line with regulatory requirements, and will publish the documents on its website. The board also announced key senior management changes effective 1 February 2026, including appointing Sanjay Kumar Behl, Head – Sales, Marketing and Logistics, and Col. Ravinder Rajput, Head – Security, as senior management personnel, while confirming that Managing Director Ajay Kapur will superannuate and cease to serve as managing director, director and key managerial personnel at the close of business on 31 January 2026, marking a significant leadership transition for the company.

Ambuja Cements Releases Q3 and Nine-Month FY26 Investor Presentation
Jan 30, 2026

Ambuja Cements Limited has released an investor presentation titled “Operational & Financial Highlights” covering its performance for the quarter and nine months ended 31 December 2025, coinciding with an analyst and institutional investor call held on 30 January 2026. The presentation, which will be available on the company’s website, is intended to brief investors and market participants on the company’s recent operational and financial metrics, underscoring Ambuja’s effort to maintain transparent communication with stakeholders and support informed investment decisions.

Ambuja Cements Confirms No Deviation in Use of Rs 15,000 Crore Preferential Issue Proceeds
Jan 30, 2026

Ambuja Cements Limited has reported to stock exchanges that there have been no deviations or variations in the use of proceeds from its preferential issue of equity shares (arising from warrant conversion) for the quarter ended 31 December 2025. Of the total Rs 15,000.046 crore raised in two tranches in March and April 2024, the company has utilised Rs 14,895.1 crore as planned toward capital expenditure, de-bottlenecking projects, logistics infrastructure, ESG-related plant optimisation, acquisitions, consolidation, working capital, technology investments and general corporate purposes. The utilisation statement, reviewed by the Audit Committee, indicates full alignment with previously stated objectives, signalling disciplined capital deployment and governance for investors and regulators.

NCLT Sets Hearing Date for Ambuja–Penna Cement Scheme of Arrangement
Jan 17, 2026

Ambuja Cements Limited has notified stock exchanges that the National Company Law Tribunal (NCLT) Ahmedabad Bench has scheduled a hearing on February 19, 2026, for the joint petition concerning the proposed Scheme of Arrangement between Penna Cement Industries Limited as the transferor company and Ambuja Cements as the transferee company. The company has published the tribunal’s hearing notice in national and regional newspapers and made the related documents available on its website, marking a formal procedural step in the regulatory approval process for the scheme that could reshape its corporate structure and consolidate its position in the cement sector, subject to the tribunal’s decision and stakeholder responses.

Ambuja Cements Schedules Post‑Results Investor Call on 30 January 2026
Jan 13, 2026

Ambuja Cements has notified stock exchanges that its senior management will host an analyst and institutional investor conference call on 30 January 2026, following a board meeting scheduled the same day to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. The post‑results call, organised by Antique Stock Broking and featuring the CEO, CFO and Head of Investor Relations, underlines the company’s emphasis on active engagement with capital markets and provides investors with a platform to assess Ambuja’s operating performance, outlook and strategic positioning within the cement sector as it enters the final quarter of the financial year.

Ambuja Cements Clears Merger of ACC and Orient to Forge Pan-India Cement Powerhouse
Dec 22, 2025

Ambuja Cements’ board has approved schemes of amalgamation to merge ACC Limited and Orient Cement Limited into Ambuja, creating a single ‘One Cement Platform’ that management says will form a pan-India cement powerhouse under the Adani Group. The consolidation is designed to generate substantial operational and financial synergies by optimising manufacturing and logistics networks, simplifying and rationalising the corporate structure, branding and sales spends, and enabling more efficient capital allocation, with the company targeting cost and margin improvements of at least Rs. 100 per tonne and supporting its plan to expand cement capacity from 107 MTPA to 155 MTPA by FY28; the transaction, which includes defined share-swap ratios for ACC and Orient Cement shareholders, is expected to be completed over the next year subject to requisite approvals, and will result in a stronger, debt-free combined balance sheet aimed at bolstering long-term shareholder returns and market leadership.

Ambuja Cements Shares Capital Markets Q&A on ACC and Orient Cement Amalgamation
Dec 22, 2025

Ambuja Cements Limited has announced that it has shared a capital markets Q&A presentation regarding the proposed amalgamation of ACC Limited and Orient Cement Limited with Ambuja Cements Limited. The company has submitted this presentation to the stock exchanges and will also make it available on its website, signaling ongoing engagement with investors and other stakeholders as it progresses with the integration of these cement businesses, a move that is expected to further consolidate its market presence and streamline group operations within the sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 30, 2025