Cement & Cement Products
Ambuja Cements is a prominent company in the Cement & Cement Products industry, trading under the stock ticker AMBUJACEM.
With a substantial market capitalization of Rs. 123,106.7 Crores, the company, based in Ahmedabad, India, was incorporated in 1981 and originally operated under the name Gujarat Ambuja Cements Limited until it rebranded in April 2007.
The core operations of Ambuja Cements involve the manufacturing and marketing of cement and related products. These products cater to a diverse clientele including individual homebuilders, masons, contractors, architects, and engineers. The company offers a range of products, including:
Ambuja Cements distributes its products through various channels such as dealers, authorized retail stockists, retailers, and authorized sales representatives.
The company has shown strong financial performance, with a trailing 12 months revenue of Rs. 36,364.6 Crores and a profit of Rs. 5,408.4 Crores in the past four quarters. It has achieved 24% revenue growth over the past three years, although it has also diluted the shareholdings of its investors by 24% during the same period.
Ambuja Cements is committed to returning value to its shareholders, distributing a dividend with a yield of 0.83% annually. Over the last 12 months, it returned Rs. 4.5 dividend per share.
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
Profitability: Recent profitability of 15% is a good sign.
Size: It is among the top 200 market size companies of india.
Smart Money: Smart money has been increasing their position in the stock.
Dilution: Company has a tendency to dilute it's stock investors.
Comprehensive comparison against sector averages
AMBUJACEM metrics compared to Cement
Category | AMBUJACEM | Cement |
---|---|---|
PE | 24.99 | 40.02 |
PS | 3.72 | 2.60 |
Growth | 8.7 % | 1.7 % |
AMBUJACEM vs Cement (2021 - 2025)
Valuation | |
---|---|
Market Cap | 1.35 LCr |
Price/Earnings (Trailing) | 24.99 |
Price/Sales (Trailing) | 3.72 |
EV/EBITDA | 16.54 |
Price/Free Cashflow | 115.46 |
MarketCap/EBT | 23.54 |
Fundamentals | |
---|---|
Revenue (TTM) | 36.36 kCr |
Rev. Growth (Yr) | 28.34% |
Rev. Growth (Qtr) | 35.37% |
Earnings (TTM) | 5.41 kCr |
Earnings Growth (Yr) | 140.47% |
Earnings Growth (Qtr) | 454.06% |
Profitability | |
---|---|
Operating Margin | 15.63% |
EBT Margin | 15.79% |
Return on Equity | 9.03% |
Return on Assets | 7.06% |
Free Cashflow Yield | 0.87% |
Summary of Ambuja Cements's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook:
Ambuja Cements anticipates robust growth driven by capacity expansion (targeting 140 million tons by FY28), operational efficiency, and cost leadership. Key initiatives include:
Industry Demand: Expect 4"“5% FY25 growth (vs. 1.5"“2% H1), driven by infrastructure/housing demand and government spending. Ambuja aims to outpace industry growth.
Financial Strength: Consolidated cash at Rs.8,755 crores; net worth up to Rs.63,000 crores (75% tangible assets). Debt-free status maintained.
Major Highlights:
Outlook emphasizes growth, cost leadership, and sustainability, positioning Ambuja as a market leader.
Last updated: Feb 25
Question 1: Can you explain the sequential decline in EBITDA per ton (INR 537/ton excluding incentives) and operational performance?
Answer: The decline stemmed from lower utilization of newly acquired Sanghi (37%) and Penna (sub-40%) plants, shutdowns at 4 key plants (e.g., Wadi, Kymore), and inventory drawdowns. Costs from integrating these assets (1.4M tons in Q3) and maintenance impacted margins. Full operational stabilization is expected by FY26, improving utilization to ~70%+.
Question 2: Why did "other expenses" rise sharply sequentially (INR 330 crore increase)?
Answer: Higher fixed costs from consolidating Sanghi/Penna, maintenance shutdowns (Rabriyawas, Marwar), and brand/market investments drove the increase. These are one-time costs linked to ramping new assets and operational efficiency upgrades, with benefits expected in future quarters via operating leverage.
Question 3: How much of Q3 volume growth (17% YoY) is organic vs. acquisitions?
Answer: Organic growth (ex-Sanghi/Penna) was 6-7%, aligned with industry growth (5%). New acquisitions contributed ~1.4M tons (8% of total 16.5M tons). Existing plants operated at 80% utilization vs. 76% YoY, outperforming the market.
Question 4: What are the key drivers of the INR 530/ton cost-reduction target by FY28?
Answer: Savings will come from logistics (100km lead reduction, rail optimization), green power (60% via WHRS/solar by FY28, cutting power costs by INR 100/ton), captive coal, AFR usage, and digitization. Initiatives like 1,000MW renewables (200MW already operational) and 26 BCFC rakes for fly ash transport are underway.
Question 5: What is the expected cash outflow for Orient Cement's acquisition, and how will it impact liquidity?
Answer: Orient's acquisition will cost INR 4,000 crore in Q4 FY25. Post-transaction, cash reserves (INR 8,755 crore as of Dec'24) will remain healthy, with no debt. Open offer payments (mid-FY26) are separate and will not affect near-term liquidity.
Question 6: What is the timeline for realizing INR 4,500 crore in incentives?
Answer: Incentives (linked to expansions and disputes) will accrue over 7"“9 years, averaging INR 500"“650 crore annually. Recent settlements (e.g., Sankrail, Himachal) boosted cash flows, resolving legacy working capital blocks.
Question 7: How do Sanghi/Penna's costs compare to legacy plants, and when will they align with targets?
Answer: Sanghi/Penna's costs are 10"“15% higher due to low utilization and legacy issues. Repairs, WHRS installations, and AFR adoption aim to reduce costs by FY26. Sanghi's clinker line upgrades and Penna's operational ramp-up (78% clinker utilization) will bridge the gap.
Question 8: Why did realizations decline despite price hikes, and will premiumization offset this?
Answer: South India's depressed prices (1M tons from Penna) and B2B mix diluted realizations. Premium products rose 400 bps to 26% of trade sales. H2 FY25 will reflect price hikes (mid-Dec onward), with stabilization of new brands (ACC/Ambuja in South) improving realizations.
Question 9: How will industry supply (50MT+ additions by FY27) impact pricing?
Answer: Demand (8% CAGR) will absorb capacity, as utilization lags new projects. Responsible pricing and Ambuja's premium positioning (INR 30"“40/bag over regional brands) will mitigate pressure. Cost leadership (INR 3,650/ton target) ensures margin resilience.
Question 10: What is the roadmap for achieving INR 3,650/ton cost targets?
Answer: Annual savings of INR 100"“150/ton will come progressively: logistics (2024"“25), renewables (2025"“26), captive coal (2026"“27). By FY28, 83% green power, rail optimization, and AFR (30% substitution) will drive 60% of savings, with coal mines delivering the final tranche.
Understand Ambuja Cements ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Holderind Investments Ltd | 48.14% |
Harmonia Trade And Investment Ltd | 19.4% |
LIFE INSURANCE CORPORATION OF INDIA - ULIF004200910LICEND+GRW512 | 5.55% |
ICICI PRUDENTIAL VALUE DISCOVERY FUND | 2.21% |
Nps Trust- A/C Sbi Pension Fund Scheme - State Govt | 1.61% |
GQG PARTNERS EMERGING MARKETS EQUITY FUND | 1.42% |
KOTAK MAHINDRA TRUSTEE CO LTD A/C KOTAK NIFTY NEXT 50 INDEX FUND | 1.11% |
HDFC VALUE FUND | 1.11% |
Endeavour Trade And Investment Limited | 0.03% |
Director or Director's Relatives | 0% |
Overseas Corporate Bodies | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Ambuja Cements's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Cement | 96.3% | 9 kCr |
Ready Mix Concrete | 3.7% | 350.5 Cr |
Total | 9.4 kCr |
Updated Apr 25, 2025
Despite its positive performance, Ambuja Cements has a TTM P/E ratio of 29.15, which is above the sector average of 27.16, suggesting potential overvaluation.
The stock's trading range has shown some volatility, fluctuating between Rs 558.45 and Rs 544.05.
There is only one sell rating among the analysts, which indicates some cautious sentiment despite the overall positive outlook.
Ambuja Cements' share price has increased by 2.40% year-to-date and shows positive momentum with a 1.47% rise in the last five days.
The company has received 13 strong buy ratings and 13 buy ratings from analysts, indicating strong investor confidence.
Ambuja Cements reported a net profit of Rs 2,115.33 Crores in the last quarter, showing strong financial performance.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Investor Care | |
---|---|
Dividend Yield | 0.83% |
Dividend/Share (TTM) | 4.5 |
Shares Dilution (1Y) | 24.05% |
Diluted EPS (TTM) | 17.88 |
Financial Health | |
---|---|
Current Ratio | 1.7 |
Debt/Equity | 0 |
Debt/Cashflow | 139.33 |
Detailed comparison of Ambuja Cements against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
ULTRACEMCO | UltraTech CementCement & Cement Products | 3.53 LCr | 72.08 kCr | +7.32% | +26.37% | 56.5 | 4.9 | +3.34% | -2.54% |
SHREECEM | Shree CementsCement & Cement Products | 1.1 LCr | 19.76 kCr | +2.03% | +27.40% | 89.98 | 5.58 | -4.90% | -45.47% |
DALBHARAT | DALMIA BHARATCement & Cement Products | 36.87 kCr | 14.48 kCr | +11.65% | +8.83% | 63.57 | 2.55 | -0.39% | -49.21% |
ACC | ACCCement & Cement Products | 36.39 kCr | 22.1 kCr | +0.22% | -24.87% | 14.01 | 1.65 | +11.44% | +59.63% |
RAMCOCEM | The Ramco CementsCement & Cement Products | 22.89 kCr | 8.84 kCr | +13.67% | +22.74% | 61.45 | 2.59 | -5.00% | -1.60% |
INDIACEM | India CementsCement & Cement Products | 8.92 kCr | 4.51 kCr | +7.45% | +27.01% | -40.74 | 1.98 | -16.28% | +44.40% |