Ambuja Cements Limited

AMBUJACEM.BO•building-materials

Current Price

567.55INR

per share

Fair Value

321.96INR

Overvalued

76.3%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.30%, higher than industry average of 4.78%.

Growth Trajectory

Profitability

In the growth phase company makes 16.96% profit on every dollar of sales, higher than industry average of 10.55%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.92% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

815.23B INR

Equity Value

793.02B INR

FCF Yield

41.82%

Average ROIC

12.42%

Cost of Capital

7.63%

P/E Ratio

27.17x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	356.43B INR	325.30B INR
Operating Income or EBIT	64.31B INR	65B INR
Interest Expense	2.15B INR	2.76B INR
Book Value Of Equity	534.43B INR	414.52B INR
Book Value Of Debt	7.88B INR	6.99B INR
Cash and Marketable Securities	79.58B INR	149.31B INR
Number of Shares Outstanding	2.46B	--
Minority interests	93.91B INR	0 INR
Current Stock Price	567.55 INR	--
Effective Tax Rate	20.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+4.79%

9.56%Company

4.78%Industry

Above Industry

Operating Margin

+7.49%

18.04%Company

10.55%Industry

Above Industry

Ambuja Cements Limited demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.87%

Reinvestment Rate

52.36%

Terminal value represents 55% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	445.74B INR	Add
Present Value (Cash Flow Over Next 10 Years)	369.48B INR	Add
Value of Operating Assets	815.23B INR	Sub-total
Debt	7.88B INR	Subtract
Minority Interests	93.90B INR	Subtract
Cash	79.58B INR	Add
Value of Equity	793.02B INR	Sub-total
Number of Shares	2.46B shares	Divisor
Estimated Value per Share (Fair Value)	321.95 INR	Total
Current Market Price	567.54 INR	Reference

Financial Projections

Total FCF Present Value

369.48B INR

Avg Revenue Growth

6.03%

Avg Operating Margin

16.72%

Avg ROIC

12.42%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	392.06B INR	420.69B INR	451.40B INR	484.35B INR	519.71B INR	554.89B INR	589.52B INR	623.18B INR	655.46B INR	685.94B INR	717.84B INR
Growth Rate	10.00%	7.30%	7.30%	7.30%	7.30%	6.77%	6.24%	5.71%	5.18%	4.65%	4.65%
PROFITABILITY
Operating Income	70.73B INR	72.86B INR	76.56B INR	80.40B INR	84.40B INR	90.11B INR	95.74B INR	101.20B INR	106.45B INR	111.40B INR	116.58B INR
Operating Margin	18.04%	17.32%	16.96%	16.60%	16.24%	16.24%	16.24%	16.24%	16.24%	16.24%	16.24%
EBIT (1-tax)	56.58B INR	58.29B INR	61.24B INR	64.32B INR	67.52B INR	70.29B INR	72.76B INR	74.89B INR	76.64B INR	77.98B INR	81.60B INR
CASH FLOW
Reinvestment	12.90B INR	13.84B INR	14.85B INR	15.93B INR	15.85B INR	13.03B INR	12.67B INR	12.15B INR	11.47B INR	12.00B INR	42.73B INR
Free Cash Flow	43.68B INR	44.45B INR	46.39B INR	48.38B INR	51.66B INR	57.25B INR	60.09B INR	62.74B INR	65.17B INR	65.97B INR	38.87B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	918.99B INR
Present Value	40.86B INR	38.88B INR	37.96B INR	37.03B INR	36.97B INR	38.19B INR	37.21B INR	35.94B INR	34.41B INR	31.99B INR	—
EFFICIENCY
ROIC	12.22%	12.25%	12.51%	12.75%	12.97%	13.11%	13.24%	13.33%	13.35%	13.31%	8.87%
Cost of Capital	6.91%	6.91%	6.91%	6.91%	6.91%	7.30%	7.70%	8.09%	8.48%	8.87%	8.88%
Sales/Capital	2.21x	2.21x	2.21x	2.21x	2.21x	2.65x	2.65x	2.65x	2.65x	2.65x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)