Ambuja Cements Ltd.
NSE: AMBUJACEMAmbuja Cements Ltd.: A 30-second snapshot
Ambuja Cements (NSE: AMBUJACEM) is a large-cap cement producer trading at Rs 434.90 as of the run date, down 22.28% over 12 months and 30.41% below its 52-week high, with both the 50-DMA (Rs 438.76) and 200-DMA (Rs 519.98) acting as overhead levels. The trailing PE stands at 22.85 against a cement-sector peer range of 12.0-51.9, while ROE of 8.31% has not cleared 15% in any tracked year and FCF was positive in only 1 of the tracked years. Mean analyst rating of 1.97 across 41 analysts (1-5 scale, lower = more constructive).
P/E
22.9
Forward P/E
28.0
ROE
+8.3%
Debt / Equity
1.21
Profit Margin
+11.6%
Div. Yield
+0.5%
5Y ROE > 15%
0/5
5Y FCF > 0
1/5
Quality
43/100
News
8 headlines · 2 positive · 2 negative
Ambuja Cements stock falls 2.5% after Q4; weak EBITDA, margin pressure weigh despite tax-led profit boost - TradingView
TradingView
Ambuja Cements' Record-Breaking Profits and Strategic Expansions - Devdiscourse
Devdiscourse
Ambuja Cements' Q4 results: Net profit jumps 78.5% aided by one-offs - Business Standard
Business Standard
Ambuja Cements Ltd stock (INE079A01024): recent earnings and outlook for the Indian cement major - AD HOC NEWS
AD HOC NEWS
Ambuja Cements (NSE:AMBUJACEM) Strong Profits May Be Masking Some Underlying Issues - simplywall.st
simplywall.st
Recent context
- ·Q4 2026 results (reported early May 2026) showed net profit up 78.5% YoY aided by one-offs, but TradingView and Business Standard both flagged weak EBITDA and margin pressure, and the stock fell 2.5% on the results day.
- ·A SimplyWallSt analysis published 13 May 2026 noted that strong reported profits may be masking underlying issues — consistent with the divergence between the 77.2% 5-year earnings CAGR and persistent low ROE.
- ·The company has communicated strategic capacity expansion plans; the capital intensity implied by D/E of 1.21 on a rising trend suggests these expansions are being funded with incremental debt.
Strengths
- +Revenue has grown at a 5-year CAGR of 9.4%, reflecting the company's scale as one of India's top-3 cement producers by capacity.
- +Trailing PE of 22.85 is the second-lowest among the 6 tracked cement peers (range 12.0-51.9), indicating compressed valuation relative to the sector median.
- +Q4 2026 net profit was reported at +78.5% YoY, and Devdiscourse coverage cited strategic capacity expansion efforts alongside the profit headline.
- +Dividend yield of 0.45% and RSI of 45.1 (neutral band) indicate neither extreme momentum nor dividend distress at current prices.
Weaknesses
- −ROE of 8.31% has not exceeded 15% in any single tracked year, and the persistence consistency score is 0 — returns on capital have been structurally low.
- −FCF was positive in only 1 of the tracked years, and D/E of 1.21 is on a rising trend, pointing to elevated and growing capital requirements relative to cash generation.
- −The stock has been below the 200-DMA for an extended period, currently 16.4% beneath that level (Rs 519.98), with a 30.41% drawdown from the 52-week high — the largest absolute price decline among the tracked peer set.
- −Q4 2026 EBITDA margins were under pressure; the strong net profit figure was driven by a tax benefit rather than operating leverage, creating a divergence between headline and operating earnings quality.
Open questions
- ?Does the 77.2% 5-year earnings CAGR reflect a genuine improvement in the business's earning power, or is it primarily the result of tax benefits and non-recurring items that may not recur?
- ?At what level of EBITDA margin recovery would the forward PE of 27.96 appear justified relative to peers such as UltraTech (PE 40.4) and ACC (PE 12.0)?
- ?Given that D/E is 1.21 and rising with FCF positive in only 1 tracked year, how is the company planning to fund its stated capacity expansion without further leveraging the balance sheet?
- ?How has Ambuja's return on capital evolved since the Adani Group acquisition, and does the ownership structure change the interpretation of debt trends and capital allocation decisions?
Peer comparison: Cement
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| AMBUJACEM | Ambuja Cements Ltd.You're viewing | 22.9 | +8.3% | 32 |
| Industry avg | across 5 peers | 35.1 | +8.6% | 31 |
| SHREECEM | Shree Cement Ltd. | 51.9 | — | 39 |
| ACC | ACC Ltd. | 12.0 | +10.9% | 32 |
| ULTRACEMCO | UltraTech Cement Ltd. | 40.4 | +10.6% | 31 |
| DALBHARAT | Dalmia Bharat Ltd. | 28.7 | +6.5% | 27 |
| GRASIM | Grasim Industries Ltd. | 42.5 | +6.3% | 25 |
Technical state
Current price
₹434.90
SMA 50
₹438.76
SMA 200
₹519.98
RSI (14)
45.1 (neutral)
From 52w high
-30.4%
1Y return
-22.3%
3M return
-15.1%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumFCF positive in only 1 of tracked years; D/E of 1.21 with a rising debt trend and consistency score of 0 — capital intensity has consumed most operating cash generation.
- mediumPrice is down 22.28% over 12 months and 15.08% over 3 months, trading below both the 50-DMA (Rs 438.76) and 200-DMA (Rs 519.98). The 52-week drawdown stands at 30.41%, with nearest support at Rs 421.
- mediumROE of 8.31% has not exceeded 15% in any tracked year (0 of available history). Quality score of 32 ranks 3rd of 6 cement-sector peers, and Q4 2026 EBITDA margins compressed despite a tax-driven net profit jump.
- lowForward PE of 27.96 is above trailing PE of 22.85, embedding an earnings recovery expectation while Q4 operating margins were under pressure.
Cross-section contradictions
- Q4 2026 net profit rose 78.5% YoY aided by tax-related one-offs while EBITDA and operating margins deteriorated — headline earnings and underlying operating performance diverged materially.
- 5-year earnings CAGR of 77.2% coexists with ROE never having cleared 15% and FCF positive in only 1 tracked year, suggesting profit growth was driven by non-recurring items rather than compounding returns on equity.
- News sentiment shows 2 positive and 2 negative items with a neutral overall label, yet the stock is down 22% over 12 months — price action is significantly weaker than the neutral news balance might imply.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days