⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AMBUJACEM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | AMBUJACEM | Market Cap | 1,09,107 Cr. | Current Price | 441 ₹ | High / Low | 625 ₹ |
| Stock P/E | 30.4 | Book Value | 206 ₹ | Dividend Yield | 0.45 % | ROCE | 8.80 % |
| ROE | 8.77 % | Face Value | 2.00 ₹ | DMA 50 | 501 ₹ | DMA 200 | 540 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | 0.23 % | PAT Qtr | 227 Cr. | PAT Prev Qtr | 1,571 Cr. |
| RSI | 31.6 | MACD | -24.1 | Volume | 31,30,486 | Avg Vol 1Wk | 46,56,550 |
| Low price | 424 ₹ | High price | 625 ₹ | PEG Ratio | 1.47 | Debt to equity | 0.02 |
| 52w Index | 8.35 % | Qtr Profit Var | -87.1 % | EPS | 13.7 ₹ | Industry PE | 28.2 |
📊 Financials
- Revenue & Profitability: PAT dropped sharply from ₹1,571 Cr. to ₹227 Cr., showing -87.1% quarterly variation. EPS at ₹13.7 is modest, reflecting weak earnings momentum.
- Margins & Returns: ROCE at 8.80% and ROE at 8.77% are below industry averages, indicating limited efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.02 highlights a virtually debt-free balance sheet, ensuring resilience.
- Cash Flow: Dividend yield of 0.45% provides minimal shareholder returns.
💹 Valuation
- P/E Ratio: 30.4 vs Industry PE of 28.2 — trading at a slight premium.
- P/B Ratio: Current price ₹441 vs Book Value ₹206 — ~2.1x book value, fair valuation.
- PEG Ratio: 1.47 — indicates moderate valuation relative to growth.
- Intrinsic Value: Current price is near fair value, offering limited upside.
🏢 Business Model & Competitive Advantage
- Strong presence in cement manufacturing with nationwide distribution.
- Low debt enhances financial flexibility.
- Weak returns and declining profits limit competitive strength compared to peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹425 – ₹450, near its 52-week low.
- Long-Term Holding: Fundamentals are stable but profitability is under pressure. Accumulate cautiously on dips for long-term exposure to infrastructure growth.
✅ Positive
- Debt-to-equity ratio of 0.02 ensures financial stability.
- Dividend yield of 0.45% provides shareholder returns.
- DII holdings increased by 0.23%, showing domestic institutional confidence.
⚠️ Limitation
- Quarterly PAT declined sharply (-87.1%), showing earnings weakness.
- ROCE and ROE are below industry averages.
- Stock trading below DMA 50 and DMA 200 indicates weak technical momentum.
📉 Company Negative News
- FII holdings declined by 0.11%, showing reduced foreign investor confidence.
- RSI at 31.6 and MACD negative (-24.1) reflect bearish technical signals.
📈 Company Positive News
- Debt-free balance sheet enhances resilience.
- DII holdings increased, showing confidence from domestic institutions.
🏭 Industry
- Cement sector benefits from infrastructure and housing demand.
- Industry PE at 28.2 is slightly lower than company’s valuation, highlighting premium pricing for AMBUJACEM.
🔎 Conclusion
AMBUJACEM shows stable fundamentals with low debt and fair valuation, but suffers from weak profitability and declining returns. While industry demand remains strong, short-term earnings weakness raises caution. Best strategy: accumulate cautiously near ₹425–₹450 and hold for long-term gains, leveraging infrastructure growth and the company’s strong market presence.