Ambuja Cements Limited (AMBUJACEM) AI Stock Analysis

• Market Cap: ₹1.35T
• Dividend Yield: 0.37%
• Average Volume (3M): 850.88K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.87
• Revenue Growth: 14.92%
• EPS Growth: 63.27%
• Country: IN
• Employees: 3,548
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 7.80
• 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: ₹658.33
• Price Target Upside: 20.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹610.00 ▲(11.30% Upside)

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

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategy, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and growth opportunities.

Profitability

Improved profitability margins reflect efficient operations and cost management, contributing to sustainable earnings and shareholder value.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could limit the company's ability to fund operations and growth initiatives.

EBIT Margin Decline

A declining EBIT margin suggests rising operational costs or pricing pressures, which could impact long-term profitability if not addressed.

Cash Conversion Challenges

Difficulty in converting profits to cash flow can strain liquidity, affecting the company's ability to invest in growth and meet financial obligations.

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.

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: Neutral
• Last Price: 548.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AMBUJACEM, the sentiment is Neutral. The current price of 548.05 is above the 20-day moving average (MA) of 544.24, below the 50-day MA of 556.78, and below the 200-day MA of 556.31, indicating a neutral trend. The MACD of -6.37 indicates Negative momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 53.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	₹332.68B	9.97	―	0.42%	15.13%	63.32%
AMBUJACEM	64 Neutral	₹1.35T	24.02	―	0.37%	14.92%	63.27%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKLAKSHMI	61 Neutral	₹96.88B	19.55	―	0.83%	6.13%	31.60%
HEIDELBERG	57 Neutral	₹39.75B	30.86	―	4.11%	3.06%	-1.48%
SHREECEM	57 Neutral	₹948.27B	55.17	―	0.72%	1.58%	-0.75%
NUVOCO	55 Neutral	₹123.13B	44.98	―	―	5.09%	458.10%

Ambuja Cements Limited Corporate Events

Ambuja Cements to Appeal GST Penalty Order

Ambuja Cements Limited has announced that it has received a penalty order from the Assistant Commissioner in Patna under the CGST/SGST Act 2017 for shortfall in GST payment and excess ITC claims. The company plans to appeal the order and does not anticipate any material impact on its financial or operational activities.

Ambuja Cements Announces CFO Transition

Ambuja Cements Limited has announced a change in its Chief Financial Officer position, with Mr. Rakesh Tiwary stepping down to transition to a new role, and Mr. Rohit Soni, previously CFO of Adani New Industries Limited, taking over effective November 22, 2025. This change in leadership is part of the company’s strategic realignment and is expected to influence its financial management and operational strategies, potentially impacting its market positioning and stakeholder relations.

Ambuja Cements Shareholders Approve Scheme of Arrangement

Ambuja Cements Limited held a court-convened meeting for its equity shareholders on November 20, 2025, to discuss and approve a Scheme of Arrangement between the company and its shareholders. The resolution for the scheme was passed with the required majority, indicating strong shareholder support for the proposed changes, which could impact the company’s operational structure and market positioning.

Adani Cement Leads Indian Industry with TNFD Adoption

Adani Cement, including Ambuja Cements and its subsidiaries, has become the first Indian cement company to adopt the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations. This move marks a significant step in the company’s ESG strategy, emphasizing nature-positive manufacturing and sustainable construction. By aligning with TNFD, Adani Cement aims to enhance its leadership in sustainable manufacturing, contributing to India’s climate and nature goals while delivering superior value for stakeholders.

Adani Cement Pioneers Decarbonization with RotoDynamic Heater Deployment

Adani Cement, in collaboration with Coolbrook, is set to deploy the world’s first commercial RotoDynamic Heater (RDH) at its Boyareddypalli plant in Andhra Pradesh, marking a significant advancement in cement decarbonization. This initiative will leverage Adani Cement’s renewable energy portfolio to power the RDH system, aiming to reduce carbon emissions by approximately 60,000 tonnes annually, with potential for a tenfold increase. This deployment aligns with Adani Cement’s net-zero goals and positions the company as a leader in clean manufacturing, contributing to India’s emergence as a hub for sustainable cement production.

Ambuja Cements Releases Financial Call Recording for Stakeholders

Ambuja Cements Limited has announced the availability of an audio recording for the Analysts/Investors Call discussing the company’s unaudited financial results for the quarter and half-year ending September 30, 2025. This initiative reflects the company’s commitment to transparency and communication with its stakeholders, providing insights into its financial performance and strategic direction.

Ambuja Cements Advances Merger with Penna Cement

Ambuja Cements Limited has announced a significant development in its proposed amalgamation with Penna Cement Industries Limited. The National Company Law Tribunal, Ahmedabad Bench, has directed Ambuja Cements to convene a meeting of its equity shareholders to consider and potentially approve the Scheme of Arrangement. This move is a crucial step in the merger process, which could enhance Ambuja’s market position and operational capabilities, impacting stakeholders and the broader cement industry.