AMBUJACEM vs ULTRACEMCO
Side-by-side comparison of Ambuja Cements Ltd. and UltraTech Cement Ltd.. Descriptive only — not investment advice.
Ambuja Cements Ltd.
Cement
Quality Score: 43/100
UltraTech Cement Ltd.
Cement
Quality Score: 54/100
At a glance
| Metric | AMBUJACEM | ULTRACEMCO |
|---|---|---|
| Quality Score | 43/100 | 54/100 |
| P/E (trailing) | 23.3 | 43.1 |
| Forward P/E | 28.4 | 27.3 |
| ROE | +8.3% | +10.6% |
| Profit margin | +11.6% | +9.2% |
| Debt-to-equity | 1.21 | 29.43 |
| Dividend yield | +0.45% | +0.65% |
| 1Y price return | -16.7% | +2.9% |
| From 52w high | -28.9% | -8.8% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.90 | 1.44 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Ambuja Cements (444.30) trades 28.91% below its 52-week high and below both key moving averages, with a trailing PE of 23.29 — a meaningful discount to sector peers UltraTech (43.1x) and Shree Cement (52.3x). Q4 2026 results showed net profit up 78% YoY on a tax benefit, but EBITDA and operating margins declined, keeping news sentiment neutral to negative. ROE of 8.31% and FCF positive in only 1 of tracked years indicate capital-intensive growth with limited free-cash compounding so far.
UltraTech Cement trades at 11,950, below its 200-DMA of 12,071.79, with a trailing PE of 43.1 against a forward PE of 27.3, implying market expectation of near-term earnings growth. The company crossed 200 MTPA cement capacity in April 2026 — the largest outside China — while carrying a D/E of 29.43 with a rising debt trend and an ROE of 10.59% that has not crossed 15% in available history.
Pros
- ✓Trailing PE of 23.29 is the 2nd-lowest among 6 cement sector peers tracked, with UltraTech at 43.1x and Shree Cement at 52.3x providing a wide relative valuation gap.
- ✓5-year revenue CAGR of 9.4% is consistent with long-run cement demand; 5-year earnings CAGR of 77.2% reflects a low-base recovery and improving absolute profitability.
- ✓Mean analyst rating of 1.90 across 42 analysts (1-5 scale, lower = more constructive) represents broad coverage with a constructive skew.
- ✓Backed by the Adani Group, Ambuja carries strategic parentage that has historically supported capital access and capacity expansion in a capital-intensive sector.
- ✓FCF was positive in 4 of available historical years, indicating the core business has generated cash despite significant capacity expansion outlay.
- ✓Forward PE of 27.3 represents a 37% compression versus the trailing PE of 43.1, reflecting analyst expectations of near-term earnings improvement.
- ✓Analyst rating of 1.44 across 39 analysts (1-5 scale, lower = more constructive) is among the more constructive readings in this coverage universe.
- ✓UltraTech crossed 200 MTPA installed capacity in April 2026 and announced 3 additional grinding units adding 8.7 MTPA, a scale that peers in the 6-stock comparison group have not matched.
Cons
- ✗ROE of 8.31% has remained below 15% in every tracked year (0 of available years above threshold), indicating returns on equity have not reached levels typically associated with durable compounding.
- ✗FCF was positive in only 1 of the tracked years, with debt-to-equity at 1.21 and a rising debt trend — capital expenditure is absorbing operating cash flows, leaving limited free cash generation.
- ✗Price is down 16.67% over 12 months and 17.25% over the past 3 months, trading below both the 50-DMA (449.48) and 200-DMA (533.34); 52-week drawdown stands at 28.91%.
- ✗Quality score of 32 ranks 4th of 6 peers in the cement sector, with GRASIM (38), Shree Cement (39), and ACC (35) all scoring higher.
- ✗D/E of 29.43 with a rising debt trend is the most significant balance-sheet concern; sustained leverage at this level constrains financial flexibility if cement demand softens.
- ✗ROE of 10.59% has never exceeded 15% in available history, and quality score of 31 ranks lowest among 6 cement peers — capital allocation has not translated into peer-leading returns on equity.
- ✗Current price is below the 200-DMA (12,071.79) and has declined 6.68% over 3 months, with the 52-week drawdown at -8.85% from the high.
- ✗A tax demand of 8.09 billion rupees was reported in early May 2026, introducing a contingent liability whose ultimate resolution and provisioning treatment remain unknown.
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