Ambuja Cements Ltd.
ISIN: INE079A01024 • Market Cap: ₹1.01 Lakh Cr
The 5-Pillar Quality Audit for Ambuja Cements Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (15.5%), Return on Capital Employed (5.0%), and equity compounding (8.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (6.3%) and 3Y PAT CAGR (13.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 23.05 vs PEG of 0.91 and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 67.3%, backed by 25.3% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (25.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 25.3%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 5.0%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Sectoral & Macro Headwinds (Construction Materials)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction Materials space.
Quantitative Strategy Eligibility
Checking AMBUJACEM against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 72/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Materials Sector Peer Comparison
Compare AMBUJACEM directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Ambuja Cements Ltd. (AMBUJACEM)Current | 72/100 | ₹1.01 Lakh Cr | 23.05 | 5.0% | 0.00 | — |
| UltraTech Cement Ltd. (ULTRACEMCO) | 69/100 | ₹3.38 Lakh Cr | 39.55 | 12.1% | 0.30 | View |
| Grasim Industries Ltd. (GRASIM) | 60/100 | ₹2.24 Lakh Cr | 39.36 | 6.6% | 2.19 | View |
| Shree Cement Ltd. (SHREECEM) | 61/100 | ₹87,893 Cr | 53.92 | 10.6% | 0.07 | View |
| J.K. Cement Ltd. (JKCEMENT) | 64/100 | ₹40,803 Cr | 43.15 | 13.7% | 0.86 | View |
| Dalmia Bharat Ltd. (DALBHARAT) | 63/100 | ₹35,169 Cr | 37.69 | 7.1% | 0.38 | View |
Frequently Asked Questions: Ambuja Cements Ltd.
Q:What is the 5-Pillar Fundamental Score for Ambuja Cements Ltd. (AMBUJACEM)?
Ambuja Cements Ltd. has a RupeeTools Fundamental Score of 72/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (50/100), Financial Health (83/100), Growth (62/100), Valuation (90/100), and Ownership Quality (82/100).
Q:Is AMBUJACEM fundamentally strong for long-term investment?
Yes, AMBUJACEM exhibits solid fundamental strength with a 72/100 score, driven by a return on equity of 8.0% and a debt-to-equity ratio of 0.00.
Q:Does AMBUJACEM pass the Coffee Can Investing filter?
No. AMBUJACEM does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does AMBUJACEM compare against other Construction Materials peers?
Within India's Construction Materials sector, AMBUJACEM trades at a P/E of 23.05 and generates an ROCE of 5.0%. Compare its 5-Pillar score of 72/100 against top sector peers like UltraTech Cement Ltd. (69/100), Grasim Industries Ltd. (60/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.