Ambuja Cements Limited (AMBUJACEM.BO) stock analysis

In our weekly check, Ambuja Cements Limited is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9.

About Ambuja Cements Limited

Ambuja Cements Limited is a Basic Materials company (Construction Materials) based in India, listed on BSE as AMBUJACEM.BO.

What our checks show for AMBUJACEM.BO

Red flags

• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The gross margin fell by 36.4 points, to 45.8%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 3.2 points from today's 11.7%.
• Free cash flow is negative (-2% of revenue): the business spends more cash than it brings in.
• The dividend takes 988% of profit: little cushion if profit falls.
• The stock has fallen as much as 71% from a peak. Would you have held through that?
• The share count grew by 24.2% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 2.3%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 2.3% a year.
• Recovering from its deepest fall took about 1.9 years.
• Thinly traded (about 114 thousand shares a day): buying and selling can move the price.

Strengths

• Debt is low: 0.02x equity.
• The net margin rose by 2 points over 5 years, to 11.7%.
• Earnings per share grew 25.2% a year over the last 3 years.
• Net profit grew 34.6% a year over the last 3 years.
• Beta -0.18: the stock usually moves less than the market.

Similar companies

SHREECEM.NS · GRASIM.NS · ULTRACEMCO.NS · 1101.TW · 1802.TW · 1102.TW

Questions

What grade does Ambuja Cements Limited (AMBUJACEM.BO) have?

In our weekly check, Ambuja Cements Limited is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AMBUJACEM.BO stock?

This week's biggest flags for Ambuja Cements Limited: Weak interest cover, Gross margin falling, Margins expected to shrink. In total 12 of 25 checks show a warning or a red flag.

What does Ambuja Cements Limited do?

Ambuja Cements Limited is a Basic Materials company (Construction Materials) based in India, listed on BSE as AMBUJACEM.BO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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