Ambuja Cements Limited (AMBUJACEM) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Ambuja Cements Limited stock ₹194, price ₹388, that is 49.9% below the price, quality 40 out of 100. Rating: strongly overvalued. Calculated from audited financials with 17 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Oct 31, 2026.
How to read this chart
60‑month range ₹270.59 – ₹689.05 · fair‑value band ₹185.27 – ₹215.75 · the ₹388.00 price screens above the ₹194.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Oct 31, 2026.
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Ambuja Cements Limited, together with its subsidiaries, manufactures, markets, and sells cement and related products to individual home builders, developers, institutional clients, masons, contractors, architects, and construction professionals in India.
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The company operates through Cement and Ready Mix Concrete segments.
It offers Adani Ambuja Kawach, a water-repellent cement; Adani Ambuja Plus, a special cement for stronger, denser, and leak-proof concrete; Adani Ambuja cement; Adani Ambuja Compocem, a slag and silicate enriched composite cement; and Adani Ambuja cool walls, a thermally insulated wall solution with heat barrier technology that keeps homes 5°C cooler, as well as Portland pozzolana cement and Ordinary Portland cement.
The company was formerly known as Gujarat Ambuja Cements Limited and changed its name to Ambuja Cements Limited in April 2007. Ambuja Cements Limited was incorporated in 1981 and is based in Ahmedabad, India.
Stock analysis
Ambuja Cements Limited (AMBUJACEM) currently trades at ₹388.00, while our model-based Fair Value estimate is ₹194.48, 50% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹310.03 per share, and 2 of the 17 models we run sit above the ₹388.00 price.
Bear case: the DCF Models group reads lowest at ₹25.09, and 15 of the 17 models stay below the price. Data coverage for this calculation is medium.
Scenario range: ₹185.27 (bear) to ₹215.75 (bull), the price of ₹388.00 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 40/100 (below-average quality), in the Basic Materials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Ambuja Cements Limited reported revenue of ₹404B in FY2025 versus ₹285B in FY2021, a compound +9.1%/yr. Reported net income was ₹47.3B in FY2025, compounding +14.2%/yr from FY2021.
Key figures
Market cap ₹965B (≈ $10.2B) Large · P/E ratio 34.4 · P/S ratio 2.44 · EPS (TTM) ₹11.27 · Dividend yield 0.5% · Net margin 7.2% · Return on equity 4.5% · Return on assets (EBIT) 6.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 32% below its 52-week high and 14% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −21% fair-value upside, at −50%, AMBUJACEM screens richer than that median.
Fair Value models
Bear₹185.27Fair Value ₹194.48Bull₹215.75
Price ₹388.00 · Downside -49.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (₹7.87 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.43/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+21.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.9%
Start year 2020 (pandemic). Over 10 years: +15.8% a year
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.7%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+10.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.8%
Dividend (yield on the price)0.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.9.8% vs 13.1%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.16% → 6%
AI conclusion: Debt-free balance sheet and focused capacity growth form the main strength while negative free cash flow and thin evidence of durable advantage represent the central weakness.
Main risk: UltraTech Cement, with greater scale and pan-India reach, might intensify competition and force Ambuja to accept lower prices or lose volumes in key markets.
Bull case: By accelerating its shift to renewables, carbon capture partnerships and premium trade-focused sales Ambuja could improve margins and defend its position against larger rivals.
Bear case: If UltraTech consolidates further and emission rules tighten sharply Ambuja might face sustained margin pressure and slower volume growth despite capacity additions.
Ambuja Cements has deliberately reduced exposure to non-trade segments and exited some low-profitability markets, which cut volumes sharply in the latest quarter as management prioritises returns over scale. The group continues to expand capacity aggressively and invest in renewables while remaining debt-free. Does this disciplined shift toward higher margins strengthen the business model enough to offset slower growth, or will it limit upside in a recovering demand environment?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Building Materials · 257 stocks
Beats the industry median on 4/14 measures
Overall it trails its industry peers.
Valuation
Quality Score40 · Bottom 25%
Fair Value upside−49.9% · Bottom 25%
Profitability
Return on equity (12 months)4.5% · Above median
Return on assets5.3% · Above median
Net margin (12 months)7.2% · Above median
Operating margin (12 months)4.9% · Below median
Growth and dividend
Revenue growth (quarter YoY)0.9% · Below median
Dividend yield (12 months)0.5% · Bottom 25%
Balance sheet
Debt / equity0.00× · Lowest 25%
Valuation Multiplesvs Building Materials median · lower = cheaper
P/E (12 months)34.4× · Priciest 25%
P/B1.63× · Pricier than median
P/S (12 months)2.44× · Priciest 25%
EV/EBITDA18.3× · Priciest 25%
PEG5.15× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 30
FUTURE (revenue growth)5· sector 12
PAST (return on equity)18· sector 18
HEALTH (low debt)100· sector 92
DIVIDEND (yield)10· sector 48
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Ambuja Cements Limited (AMBUJACEM) overvalued or undervalued?
As of Oct 31, 2026, our model estimates a fair value of ₹194.48 versus a price of ₹388.00, about 50% lower (overvalued).
What is the fair value of AMBUJACEM?
Our model-based fair value for Ambuja Cements Limited is ₹194.48 (as of Oct 31, 2026), built from audited fundamentals. The current price: ₹388.00.
What is the quality score of AMBUJACEM?
Ambuja Cements Limited has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ambuja Cements Limited (AMBUJACEM)?
Our model-based price target is the fair value of ₹194.48 (as of Oct 31, 2026) from 17 valuation models. Cautious scenario ₹185.27, optimistic scenario ₹215.75. It is a calculation from audited fundamentals, not an analyst target.
What is the Ambuja Cements Limited stock forecast for 2026?
Our models put fair value at ₹194.48, about 50% lower versus a price of ₹388.00 (overvalued). Cautious scenario ₹185.27, optimistic scenario ₹215.75. The calculation is refreshed regularly with new filings.
What is the revenue of Ambuja Cements Limited (AMBUJACEM)?
Ambuja Cements Limited reported trailing-twelve-month revenue of about ₹396B (latest available figure, as of Oct 31, 2026).
Does Ambuja Cements Limited pay a dividend?
Ambuja Cements Limited currently shows a dividend yield of 0.52% relative to its recent price (as of Oct 31, 2026).
What is the intrinsic value of Ambuja Cements Limited (AMBUJACEM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ambuja Cements Limited it is ₹194.48 per share (as of Oct 31, 2026), against a price of ₹388.00. It is the blended result of 17 valuation models (cash flow, earnings, asset, dividend).
Is Ambuja Cements Limited stock overvalued or undervalued in 2026?
As of Oct 31, 2026, AMBUJACEM trades above its calculated fair value: price ₹388.00, fair value ₹194.48, a gap of about −50% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AMBUJACEM?
No. The price is what the market pays today (₹388.00); the fair value is what the company's own numbers justify (₹194.48). For Ambuja Cements Limited the two are ₹193.52 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ambuja Cements Limited worth?
The market values Ambuja Cements Limited at about ₹965B (market capitalisation, as of Oct 31, 2026). Per share that is ₹388.00; our models calculate a fair value of ₹194.48 per share.
What do the bullish and bearish scenarios say about AMBUJACEM?
Our models span a range for Ambuja Cements Limited: cautious scenario ₹185.27, base ₹194.48, optimistic ₹215.75 per share (as of Oct 31, 2026, price ₹388.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AMBUJACEM?
Ambuja Cements Limited trades at a price-to-earnings ratio of 34.4 (as of Oct 31, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹194.48 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 30.2. Other multiples: PEG 5.1, P/B 1.6, P/S 2.4, EV/EBITDA 18.3.
What is the PEG ratio of AMBUJACEM?
The PEG ratio of Ambuja Cements Limited is 5.15 (P/E divided by earnings growth, as of Oct 31, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Ambuja Cements Limited (AMBUJACEM)?
Balance-sheet figures for Ambuja Cements Limited (as of Oct 31, 2026): return on equity 4.5%, debt of 0.00 per unit of equity. They feed the Quality Score of 40/100, which measures business quality independently of the share price.
How far is AMBUJACEM from its 52-week high?
Ambuja Cements Limited trades at ₹388.00, about 32% below its 52-week high of ₹568.44 and 14% above the low of ₹341.00 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹194.48 is for.
Which stocks are comparable to Ambuja Cements Limited?
From the same area (Basic Materials) we also value CRH plc, Holcim AG, Martin Marietta Materials, Inc, Vulcan Materials Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Ambuja Cements Limited stock attractive at the current price?
The data as of Oct 31, 2026: price ₹388.00, calculated fair value ₹194.48 (−50%), Quality Score 40/100, from 17 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AMBUJACEM calculated?
We run Ambuja Cements Limited through 17 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹194.48, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Ambuja Cements Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Ambuja Cements Limited (AMBUJACEM)?
The closing price on Nov 5, 2026 was ₹388.00. Our model-based fair value is ₹194.48, about 50% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ambuja Cements Limited right now?
The price sits above even our optimistic bull case (₹215.75). The favourable scenario is already priced in. Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
Where does the earnings growth of Ambuja Cements Limited (AMBUJACEM) come from?
Earnings per share at Ambuja Cements Limited grew +13.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.6 %, EBIT margin −0.3 %, tax rate +3.9 %, residual (interest, one-offs) −0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Ambuja Cements Limited
How large is the market capitalisation of Ambuja Cements Limited (AMBUJACEM)?
The market capitalisation of Ambuja Cements Limited is ₹965B (≈ $10.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Ambuja Cements Limited (AMBUJACEM)?
The price-to-sales ratio of Ambuja Cements Limited is 2.44 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Ambuja Cements Limited (AMBUJACEM)?
Earnings per share at Ambuja Cements Limited are ₹11.27 (price ÷ EPS = P/E 34.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Ambuja Cements Limited (AMBUJACEM)?
The dividend yield of Ambuja Cements Limited is 0.5% (payout 17.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Ambuja Cements Limited (AMBUJACEM)?
The net margin of Ambuja Cements Limited is 7.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Ambuja Cements Limited (AMBUJACEM)?
The return on equity (ROE) of Ambuja Cements Limited is 4.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Ambuja Cements Limited (AMBUJACEM)?
On an EBIT basis the return on assets of Ambuja Cements Limited is 6.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Ambuja Cements Limited (AMBUJACEM)?
The operating margin of Ambuja Cements Limited is 4.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ambuja Cements Limited (AMBUJACEM)?
Revenue at Ambuja Cements Limited is growing +0.9% versus a year earlier (3y avg +9.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Ambuja Cements Limited (AMBUJACEM)?
Earnings per share at Ambuja Cements Limited are growing −89.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Ambuja Cements Limited (AMBUJACEM) generate?
The free cash flow of Ambuja Cements Limited is −₹8.0B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does Ambuja Cements Limited (AMBUJACEM) hold?
Ambuja Cements Limited holds more cash than debt, ₹927M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Oct 31, 2026