Ambuja Cements Ltd.
Cement · NSE
52-week range
₹394 – ₹625
From 52w high
-28.9%
RSI (14)
48.0
vs SMA 50 / 200
↓ 50 · ↓ 200
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.
- ✓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.
- ✗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.
- ·Q4 2026 net profit surged 78% YoY primarily on a tax benefit, but EBITDA and operating margins declined, prompting a stock drop of approximately 2.5% on results day (May 5, 2026).
- ·The divergence between a high headline earnings CAGR (77.2% over 5 years) and persistently low ROE (8.31%, never above 15%) raises questions about whether the profitability trajectory reflects sustainable operating leverage.
- ·Nearest technical support is at 394 (approximately 11% below current price), with resistance levels clustered at 462-469 and then 547.
- ?Does the 77.2% five-year earnings CAGR reflect a genuine improvement in Ambuja's operating efficiency, or is it primarily a function of a depressed base year and non-recurring tax benefits?
- ?How does Ambuja's capacity expansion roadmap under Adani Group ownership translate into future ROE — will new capacity fill fast enough to generate returns above the cost of capital given the rising debt load?
- ?Given that the stock trades at a significant PE discount to UltraTech but ranks 4th of 6 on quality score, what specific operational improvements would need to materialise for that valuation gap to narrow on a quality-adjusted basis?
- ?If EBITDA margin pressure continues for another one to two quarters, how does that affect the forward PE of 28.41x — does the current price already discount a margin recovery or assume further deterioration?
PE
23.3
Forward PE
28.4
ROE
+8.3%
Profit margin
+11.6%
D/E
1.21
Dividend yield
+0.5%
Quality score
32/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
1/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.