Fact based stock research
Ambuja Cements (BSE:500425)

INE079A01024

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Ambuja Cements stock research in summary

ambujacement.com

ANALYSIS: With an Obermatt Combined Rank of 95 (better than 95% compared with investment alternatives), Ambuja Cements (Construction Materials, India) shares have much better financial characteristics than comparable stocks. Shares of Ambuja Cements are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives) and show below-average growth (Growth Rank of 25) but are safely financed (Safety Rank of 95), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 95, is a strong buy recommendation based on Ambuja Cements's financial characteristics. As the company Ambuja Cements's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 45) and low growth (Obermatt Growth Rank of 25), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 95) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	India
Industry	Construction Materials
Index	Low Emissions, Good Governace Growth Markets, Independent Boards Growth Markets
Size class	X-Large

This stock has achievements: Top 10 Stock.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Ambuja Cements

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	51	39	n/a
GROWTH
GROWTH	81	57	59	n/a
SAFETY
SAFETY	88	89	98	n/a
SENTIMENT
SENTIMENT	n/a	41	26	^new
360° VIEW
360° VIEW	n/a	79	56	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Ambuja Cements is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	63	51	39	n/a
GROWTH
GROWTH	81	57	59	n/a
SAFETY
SAFETY	88	89	98	n/a
COMBINED
COMBINED	100	89	53	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Ambuja Cements the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Ambuja Cements shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Ambuja Cements. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 51, which means that the stock price is lower compared with invested capital than for 51% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 38 which means the stock price compared with what market professionals expect for future profits is higher than 62% of comparable companies, indicating a low value concerning Ambuja Cements's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 51 and for the dividend yields rank which is lower than for 66% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Ambuja Cements's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Ambuja Cements, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	40	51	30	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	51	54	23	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	34	56	53	n/a
DIVIDEND YIELD
DIVIDEND YIELD	86	46	46	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	63	51	39	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Ambuja Cements; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Ambuja Cements shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Ambuja Cements. While Profit Growth has a good rank of 66, as professionals currently expect the company to grow its profits more than 66% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 27, which means that currently professionals expect the company to grow less than 73% of its competitors, while Capital Growth has a rank of 6 and Stock Returns have been below market median, with a rank of 45 (55% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	51	15	50	n/a
PROFIT GROWTH
PROFIT GROWTH	68	46	69	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	96	55	n/a
STOCK RETURNS
STOCK RETURNS	94	65	35	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81	57	59	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Ambuja Cements.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 95 (better than 95% compared with alternatives) for 2025, the company Ambuja Cements has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Ambuja Cements is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Ambuja Cements. Leverage is at 90, meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors. Refinancing is at a rank of 59, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. Finally, Liquidity is also good at a rank of 84, which means that the company generates more profit to service its debt than 84% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 95 (better than 95% compared with alternatives), Ambuja Cements has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Ambuja Cements but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	86	90	90	n/a
REFINANCING
REFINANCING	24	43	57	n/a
LIQUIDITY
LIQUIDITY	100	90	92	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	88	89	98	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Ambuja Cements and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	60	39	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	2	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	78	43	^new
MARKET PULSE
MARKET PULSE	n/a	40	21	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	41	26	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Ambuja Cements.
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