Mehabe score: 4 G Factor: 5 Piotski Score: 9 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 9.
Description
Ambuja Cements Ltd (Founded in 1993) is one of India’s leading cement manufacturers, with a presence in 80 countries, and a focus on cement, aggregate and concrete. It is a part of Switzerland-based LafargeHolcim Limited, a global conglomerate with a 70-country presence [1] Site:AMBUJACEM Main Symbol:AMBUJACEM
Stock trades at 321.0, below its 50dma 324.65 and below its 200dma 350.41. The stock remains bearish on technicals
The 52 week high is at 442.95 and the 52week low is at 274.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 70.10%
Weakness
– The company has delivered a poor sales growth of 7.59% over past five years.
– has a low return on equity of 10.45% for last 3 years.
Competition
– The industry trades at a mean P/E of 18.9x. Nuvoco Vistas trades at the industry’s max P/E of 338.46x. AMBUJACEM trades at a P/E of 22.4x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 9.0. AMBUJACEM has a G-Factor of 5 and Piotski scoreof 9.
– Average 1 month return for industry is 11.7%. The max 1- month return was given by J K Cements: a return of 23.76 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 7625.0 cr compared to Rs 7453.0 cr for period ended Dec 2020, a rise of 2.3% .
vis-vis 1342.0 for period ended Dec 2020 .
Operating Margins contracted -321.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 1128.0 cr for period ended Dec 2021 and operating profit margin at 14.8 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.46 compared to Rs 3.35 for previous quarter ended Sep 2021 and Rs 3.69 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 28965.0 cr for period ended Dec 2021 vis-vis sales of Rs 24516.0 cr for the period ended Dec 2020, a healthy growth of 15.4%. The 3 year sales cagr stood at 3.6%.
Operating margins expanded to 21.0% for period ended Dec 2021 vis-vis 20.0% for period ended Dec 2020, expansion of 100.0 bps.
Net Profit reported at Rs 2780.0 cr for period ended Dec 2021 vis-vis sales of Rs 2365.0 cr for the period ended Dec 2020, rising 14.9%.
Company recorded a Net Profit CAGR of 8.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5309.0 cr for period ended Dec 2021 vis-vis Rs 4832.0 cr for period ended Dec 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 4% on a 1 Year basis vis-vis a return of 12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 18% vis-vis a compounded sales growth of 4% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 14.69% vis-vis 16.52% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 6.74% vis-vis 6.61% for Sep 2021
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 70.10% – The company has delivered a poor sales growth of 7.59% over past five years.
– has a low return on equity of 10.45% for last 3 years.
