Ambuja Cements Limited
Ambuja Cements Limited demonstrates strong financial health with minimal debt and robust interest coverage. While revenue and net profit have shown solid growth over the past decade, recent profitability metrics like ROE and ROCE indicate a declining trend. Free cash flow has been significantly negative in recent periods, suggesting substantial capital expenditure or other outflows. The current valuation appears attractive compared to the estimated intrinsic value.
Business Performance (CAGR)
Valuation Snapshot
Financial Health
Profitability Metrics
Cash Flow Intelligence
Intrinsic Value
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AI Business Verdict
Ambuja Cements Limited presents a compelling profile with strong financial health and historical growth. While recent profitability metrics and persistently negative free cash flow warrant attention, the significant margin of safety in its current valuation suggests potential for long-term value creation, provided capital deployment yields expected returns.
- Exceptional financial health with minimal debt and robust interest coverage.
- Strong historical growth in revenue (8.15% CAGR) and net profit (17.53% CAGR).
- Healthy operating cash flow generation (₹5361.53 Cr latest period).
- Favorable valuation with a significant margin of safety based on intrinsic value.
Balance Sheet
Ambuja Cements Limited maintains a balanced sheet with adequate liquidity and manageable leverage.
Capacity to fund growth, withstand downturns and return capital.
- Ambuja Cements Limited maintains a balanced sheet with adequate liquidity and manageable leverage.
- Net cash position — debt fully covered by cash & investments
- Very low leverage with net cash balance
- Strong shareholder equity growth
- High interest coverage
- Tight short-term liquidity cushion