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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500425 | NSE: AMBUJACEM

Ambuja Cements Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:21 pm

Market Cap 1,35,361 Cr.
Current Price 550
High / Low707/409
Stock P/E46.1
Book Value 205
Dividend Yield0.36 %
ROCE14.0 %
ROE10.3 %
Face Value 2.00
PEG Ratio5.35

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ambuja Cements Ltd

Competitors of Ambuja Cements Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bheema Cements Ltd 77.1 Cr. 23.635.3/21.0 13.20.00 %11.8 %56.4 % 10.0
UltraTech Cement Ltd 3,10,915 Cr. 10,77012,138/8,54447.3 2,1260.65 %15.1 %12.2 % 10.0
The Ramco Cements Ltd 21,350 Cr. 9041,058/70077.4 3020.28 %8.17 %5.63 % 1.00
The India Cements Ltd 11,056 Cr. 357386/173 1700.00 %0.78 %4.81 % 10.0
Star Cement Ltd 7,237 Cr. 179256/16236.6 67.90.00 %16.5 %11.5 % 1.00
Industry Average32,363.29 Cr1,739.7634.84528.440.62%11.13%16.10%7.13

All Competitor Stocks of Ambuja Cements Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7,4537,7156,9786,6477,6257,9008,0337,1437,9077,9668,7137,4248,129
Expenses6,1105,8765,1515,2316,4976,4766,9226,8096,8856,7277,0466,1226,397
Operating Profit1,3421,8381,8271,4161,1281,4241,1113341,0211,2391,6671,3021,732
OPM %18%24%26%21%15%18%14%5%13%16%19%18%21%
Other Income-701048298-319714375-18142268480204
Interest41323936383240414339526170
Depreciation283269277276330306319331337352372381418
Profit before tax9481,6421,5931,2017281,183895396239891,5121,3401,448
Tax %-2%25%27%26%41%28%3%-33%22%23%25%26%25%
Net Profit9681,2281,161891431856865514887631,1359871,090
EPS in Rs3.694.774.423.351.463.323.790.472.193.254.563.994.15

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023TTM
Sales8,4899,7499,1619,9559,43720,09423,60926,04127,10424,51628,96538,93732,232
Expenses6,4907,2767,4928,0227,89516,91319,75122,03022,50719,51122,75533,81526,292
Operating Profit1,9982,4731,6691,9341,5423,1813,8584,0114,5975,0066,2105,1225,940
OPM %24%25%18%19%16%16%16%15%17%20%21%13%18%
Other Income203693904193534413352326012882524471,094
Interest5378676692153206170170140146195223
Depreciation4465694945136301,4611,2191,1541,1531,1621,1521,6451,523
Profit before tax1,7011,8961,4981,7741,1732,0082,7682,9193,8753,9925,1643,7295,288
Tax %28%32%15%16%31%29%30%-2%28%22%28%19%
Net Profit1,2271,2921,2781,4878081,4341,9452,9732,7833,1073,7113,0243,976
EPS in Rs8.008.398.279.595.215.577.6410.9710.5511.9114.0013.0115.95
Dividend Payout %40%43%44%46%54%50%47%14%14%151%45%19%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:5%
3 Years:11%
TTM:3%
Compounded Profit Growth
10 Years:11%
5 Years:8%
3 Years:11%
TTM:-1%
Stock Price CAGR
10 Years:8%
5 Years:19%
3 Years:8%
1 Year:17%
Return on Equity
10 Years:10%
5 Years:10%
3 Years:11%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:43 am

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024Sep 2024
Equity Capital308309310310397397397397397397397440493
Reserves8,4899,1539,7609,96119,42420,27521,97323,68122,36024,95726,30138,23649,883
Borrowings6048343529244041471477523699779
Other Liabilities3,4873,4463,7743,82712,97414,81314,98116,05916,49019,37424,50125,88625,417
Total Liabilities12,34512,95613,87814,13332,82435,50937,39140,17839,71845,20551,72165,26176,572
Fixed Assets5,9516,1476,3106,17021,41020,89820,63620,70120,48622,25423,55132,38840,857
CWIP5246986924165826671,0081,5542,4222,1682,5262,6586,472
Investments1,5811,7142,0972,1491751531331501671982148492,223
Other Assets4,2894,3994,7805,39810,65713,79115,61317,77316,64320,58525,43029,36527,019
Total Assets12,34512,95613,87814,13332,82435,50937,39140,17839,71845,20551,72165,26176,572

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024
Cash from Operating Activity +1,8601,2671,6751,5572,8103,4161,7034,7394,8325,3097355,646
Cash from Investing Activity +-388-496-456-83-4,165-738-765-1,191-1,317-2,007-14,481-8,941
Cash from Financing Activity +-509-672-721-900-958-1,015-719-629-3,956-5162,9315,689
Net Cash Flow96299498574-2,3121,6632202,919-4412,786-10,8152,394

Free Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023
Free Cash Flow1.00-58.00-47.00-33.00-34.00-26.00-21.00-36.00-37.00-466.00-471.00-518.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Mar 2023Mar 2024
Debtor Days8981117141814881113
Inventory Days419379394339323333208193337234268
Days Payable251265299324370339231259359198230
Cash Conversion Cycle817612310732-3313-9-58-144650
Working Capital Days-54-54-61-65-67-62-34-56-80-734512
ROCE %26%16%18%11%11%12%12%14%14%17%13%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters63.21%63.19%63.20%63.22%63.22%63.22%63.20%63.19%63.19%66.74%70.33%67.57%
FIIs14.69%12.97%12.82%11.05%10.66%11.16%12.45%11.65%11.88%11.09%9.59%10.61%
DIIs15.09%16.25%14.98%16.26%16.71%14.48%14.14%15.26%15.56%14.24%13.03%14.98%
Government0.26%0.26%0.26%0.26%0.26%0.26%0.26%0.26%0.26%0.23%0.21%0.21%
Public6.74%7.34%8.75%9.23%9.13%10.87%9.94%9.63%9.10%7.69%6.83%6.64%
No. of Shareholders3,21,1924,37,8384,36,4494,98,4854,68,8177,04,9946,18,7765,98,1475,64,8475,42,7736,11,8046,05,551

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Large Cap Fund9,478,8941.4531.12,949,3292024-11-20221.39%
Mirae Asset ELSS Tax Saver Fund6,828,8591.83382.622,949,3292024-11-20131.54%
ICICI Prudential Equity - Arbitrage Fund4,107,6001.41230.152,949,3292024-11-2039.27%
Kotak Equity Arbitrage Fund - Regular Plan3,819,6000.59214.012,949,3292024-11-2029.51%
Kotak Balanced Advantage Fund3,712,8001.33208.032,949,3292024-11-2025.89%
Nippon India Arbitrage Fund3,186,0001.37178.512,949,3292024-11-208.02%
SBI Arbitrage Opportunities Fund3,164,4000.67177.32,949,3292024-11-207.29%
Aditya Birla Sun Life ELSS Tax Saver Fund3,038,7651.14170.262,949,3292024-11-203.03%
HDFC Large and Mid Cap Fund - Regular Plan2,949,3291.03165.252,949,3292024-11-200%
Kotak Multicap Fund2,828,7891.77158.52,949,3292024-11-20-4.09%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Dec 21Dec 20Dec 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)17.9913.0114.0011.9110.55
Diluted EPS (Rs.)16.6712.6414.0011.9110.55
Cash EPS (Rs.)28.8423.3724.3921.4219.72
Book Value[Excl.RevalReserv]/Share (Rs.)231.36195.18163.67146.54150.15
Book Value[Incl.RevalReserv]/Share (Rs.)231.36195.18163.67146.54150.15
Revenue From Operations / Share (Rs.)150.88196.09145.87123.47136.50
PBDIT / Share (Rs.)34.4329.5133.0527.4726.08
PBIT / Share (Rs.)27.0421.2327.2521.6220.27
PBT / Share (Rs.)26.7418.6425.9120.0319.42
Net Profit / Share (Rs.)21.4515.0918.5915.5713.92
NP After MI And SOA / Share (Rs.)16.2713.0114.0011.9110.55
PBDIT Margin (%)22.8115.0522.6522.2519.10
PBIT Margin (%)17.9210.8218.6717.5114.85
PBT Margin (%)17.729.5017.7516.2214.22
Net Profit Margin (%)14.217.6912.7412.6110.19
NP After MI And SOA Margin (%)10.786.639.599.647.72
Return on Networth / Equity (%)8.628.1410.9610.398.70
Return on Capital Employeed (%)11.1710.4815.9214.0912.93
Return On Assets (%)5.474.996.155.955.21
Asset Turnover Ratio (%)0.560.490.410.340.36
Current Ratio (X)2.051.671.521.381.58
Quick Ratio (X)1.751.391.271.201.35
Inventory Turnover Ratio (X)3.613.512.932.201.83
Dividend Payout Ratio (NP) (%)13.8748.420.00142.7014.21
Dividend Payout Ratio (CP) (%)9.5429.580.0095.709.17
Earning Retention Ratio (%)86.1351.580.00-42.7085.79
Cash Earning Retention Ratio (%)90.4670.420.004.3090.83
Interest Coverage Ratio (X)27.3830.0745.0638.9030.48
Interest Coverage Ratio (Post Tax) (X)17.2918.0127.1724.3117.27
Enterprise Value (Cr.)132923.9276710.6070462.4646861.7635395.80
EV / Net Operating Revenue (X)4.011.972.431.911.31
EV / EBITDA (X)17.5713.0910.748.596.84
MarketCap / Net Operating Revenue (X)4.061.862.592.021.44
Retention Ratios (%)86.1251.570.00-42.7085.78
Price / BV (X)3.252.292.962.171.62
Price / Net Operating Revenue (X)4.061.862.592.021.44
EarningsYield0.020.030.030.040.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ambuja Cements Ltd as of November 21, 2024 is: 976.91

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Ambuja Cements Ltd is Undervalued by 77.62% compared to the current share price 550.00

Intrinsic Value of Ambuja Cements Ltd as of November 21, 2024 is: 1,061.10

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Ambuja Cements Ltd is Undervalued by 92.93% compared to the current share price 550.00

Last 5 Year EPS CAGR: 8.62%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -45.75, which is a positive sign.
  2. The company has higher reserves (21,881.00 cr) compared to borrowings (250.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (20.15 cr) and profit (2.31 cr) over the years.
  1. The stock has a low average ROCE of 14.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 36.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ambuja Cements Ltd:
    1. Net Profit Margin: 14.21%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.17% (Industry Average ROCE: 11.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.62% (Industry Average ROE: 16.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 17.29
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.75
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 46.1 (Industry average Stock P/E: 34.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ambuja Cements Ltd. is a Public Limited Listed company incorporated on 20/10/1981 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L26942GJ1981PLC004717 and registration number is 004717. Currently Company is involved in the business activities of Manufacture of clinkers and cement. Company’s Total Operating Revenue is Rs. 13964.95 Cr. and Equity Capital is Rs. 397.13 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
CementAdani Corporate House, Shantigram, Near Vaishnavdevi Circle, Ahmedabad Gujarat 382421investors.relation@adani.com
https://www.ambujacement.com
Management
NamePosition Held
Mr. Gautam AdaniNonExeChairman&NonInd.Director
Mr. Ajay KapurWholeTime Director & CEO
Mr. M R KumarNon Exe.Non Ind.Director
Mr. Karan AdaniNon Exe.Non Ind.Director
Ms. Purvi ShethInd. Non-Executive Director
Mr. Maheswar SahuInd. Non-Executive Director
Mr. Ameet DesaiInd. Non-Executive Director
Mr. Rajnish KumarInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Ambuja Cements Ltd?

The latest intrinsic value of Ambuja Cements Ltd as on 21 November 2024 is ₹976.91, which is 77.62% higher than the current market price of ₹550.00.

What is the Market Cap of Ambuja Cements Ltd?

The Market Cap of Ambuja Cements Ltd is 1,35,361 Cr..

What is the current Stock Price of Ambuja Cements Ltd as on 21 November 2024?

The current stock price of Ambuja Cements Ltd as on 21 November 2024 is ₹550.

What is the High / Low of Ambuja Cements Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ambuja Cements Ltd stocks is 707/409.

What is the Stock P/E of Ambuja Cements Ltd?

The Stock P/E of Ambuja Cements Ltd is 46.1.

What is the Book Value of Ambuja Cements Ltd?

The Book Value of Ambuja Cements Ltd is 205.

What is the Dividend Yield of Ambuja Cements Ltd?

The Dividend Yield of Ambuja Cements Ltd is 0.36 %.

What is the ROCE of Ambuja Cements Ltd?

The ROCE of Ambuja Cements Ltd is 14.0 %.

What is the ROE of Ambuja Cements Ltd?

The ROE of Ambuja Cements Ltd is 10.3 %.

What is the Face Value of Ambuja Cements Ltd?

The Face Value of Ambuja Cements Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ambuja Cements Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE