Investing in cement stocks in the long term can give good returns in the future. The government is planning to invest a lot of money in the infrastructure, they are planning to invest approx 880 Lakh Crore in the infrastructure by 2047. The target year is very long but the return will also be very huge. Cement stocks like Ambuja Cements’ share price targets for 2024, 2025, and 2026 can give a massive return.
Not only cement stocks, but all the stocks that play a major role in the development of the infrastructure may give a massive return. In the best infrastructure stocks in India Post, you find all the good stocks or companies that play a major role in the development of the infrastructure of any country like India.
After the Budget 2024 – 2025, the Ambuja Cements stock and other related companies’ stocks that are involved in the business of infrastructure development gave a massive rally as there were a lot of things in the Budget. Also Ambuja Cements stock given a rally now trading near its all-time high and ready to break it very soon.
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About Ambuja Cements
Ambuja Cements Ltd. is an Indian company which is also known as Gujrat Ambuja Cements Ltd. The company was founded in 1981 and its current managing director is Mr. Neeraj Akhoury. As of now, Ambuja Cements is a part of the Adani Group.
Ambuja Cements is involved in the business of cement and it provides many products like Ambuja Cements, Amubuja Railcem, Alccofine, Ambuja Powercem, Ambuja Kawach, Ambuja Plus, Ambuja Cool Walls, Ambuja Buildcem, and many more…
Not only products the Ambuja Cements company also provides a few services like individual home builders, masons and contractors, and architects & engineers. To know more about their company visit their website.
Company Fundamentals
From the fundamentals, you can know about the company in detail like the strength of the company, the right value of the company, the position of the company among all companies of the same sector, financial statements, growth of the company, and many more.
Most probably you are a retail investor, It is highly recommended to do a fundamental analysis by yourself of the stocks in which you are investing or already invested. In case, you know how to do a fundamental analysis of companies you can learn it from the Internet.
Note: The fundamentals of the Ambuja Cements company were last updated on 18 Feb 2024. Check the latest data on any broker website or screener.
Net Profit & Loss (Yearly)
| Year | Net Profit & Loss (In Crore) |
|---|---|
| March 2019 | ₹2,973 |
| March 2020 | ₹2,783 |
| March 2021 | ₹3,107 |
| March 2022 | ₹3,711 |
| March 2023 | ₹3,024 |
Net Profit & Loss (Quarterly)
| Quarter | Net Profit & Loss (In Crore) |
|---|---|
| Dec 2022 | ₹488 |
| Mar 2023 | ₹763 |
| Jun 2023 | ₹1,135 |
| Sep 2023 | ₹987 |
| Dec 2023 | ₹1,090 |
Company Fundamentals
| Market Cap | ₹1,16,210Cr | ROE | 8.44% |
| P/E Ratio (TTM) | 36.69 | EPS (TTM) | 15.95 |
| P/B Ratio | 3.53 | Div Yield | 0.43% |
| Industry P/E | 39.04 | Book Value | 165.72 |
| Debt to Equity | 0.02 | Face Value | 2 |
Shareholding Pattern
| Held By | Jun 2023 | Sep 2023 | Dec 2023 |
|---|---|---|---|
| FIIs | 12.45% | 11.65% | 11.88% |
| DIIs | 14.14% | 15.26% | 15.56% |
| Public | 9.94% | 9.63% | 9.10% |
| Promoters | 63.20% | 63.19% | 63.19% |
| Government | 0.26% | 0.26% | 0.26% |
Key Points
- The Ambuja Cements company there is a Debt of Rs. 47.71 Crore and the company has cash of Rs. 2,533.05 Crore. The Debt is minimal for the company and the company can be considered as almost Debt free.
- Ambuja Cements is one of the largest cement companies in the cement industry.
- Ambuja Cements has given good profit growth and revenue growth of 18.65 and 19.65 in the last 3 years.
- The major problem with the fundamentals of the company is that the promoters have pledged almost all the holdings of the company.
- For the last many years, the EPS of the compnay has been increasing which shows a high growth in the compnay.
- Not only EPS but sales and also the net profit of the Ambuja Cements compnay is increasing and almost doubled in just 6 years.
Quarterly Result
Expecting good profits from the Ambuja Cement stock for the long term will be good as the company’s EPS, Sales, and Net Profit have almost doubled in just last 5 to 6 years.
Not only this, but the stock is also showing good quarterly results, in the Dec Quarter, the compnay made a good profit of Rs. 1,090 Crore which is good.
Thumb Rules for Investing
Just by doing fundamental analysis, anyone cannot book maximum returns on the stocks. Based on the investors’ experiences a few basic rules become the rules for investing. In short, most retail investors or newbie investors make the below mistake as a result they do not get the maximum return on their investing.
These rules apply to the maximum sectors’ stocks. If you are new in the market or don’t have enough knowledge you should follow the rules to make your self psychology strong.
Rule #1: Do not invest all the money in one sector’s stocks. No matter what is the future of the sector. In case you invested all the money in one sector, if the sector faces any issue, you’ll be in a huge loss.
Rule #2: Invest a maximum of 5% – 6% of the total money in any stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 6000 in any stock. This rule is applicable when you are retail, and can not track all the stocks.
Rule #3: Invest in a maximum of 2-3 stocks of a sector. When any sector faces problems then other sectors’ stock will save you from huge losses.
Rule #4: Invest in stock when the stock the available at a 10% low from its 52-week high. Some people invest in stocks at high, and as a result, they do not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 7 years to get very high returns. Keep booking the profit from time to time.
Rule #6: Keep averaging the stock if everything is right in the company and the stock is available at a high discount due to any market crash.
Rule #7: Before Investing in any stock make sure you check its fundamental and related news. It will help you to stay away from the stock which can give you huge losses.
Ambuja Cements Share Price Target
Ambuja Cements Limited has grown over the last few years for example in the last 10 years Ambuja Cement’s compounded profit growth has been 7% and in the last 5 years growth has been approximately 13%. Not only compounded profit growth but also its computed sales are growing. In the last 10 years Ambuja Cements compounded profit sales growth was 15% and in the last 10 years it was 11%.
Undoubtedly, the Cement companies will give a massive return in the next few years. The stock is now very close to its all-time high and as of now, the stock is also very bullish. So, most probably it will break its all-time high in the next few weeks.
In the last 3 years, the company has generated an 18.65% profit growth and a 19.65% revenue growth. The DEBT on the company is approx Rs. 47.71 Cr. However, the promoter pledges 100% of their shareholding, which is a very negative sign for the stock.
Disclaimer: We are not SEBI registered. The post is only for educational purposes not for any investing advice. Do your analysis or ask your financial advisor before investing. We will not be responsible for any loss or profit.
Ambuja Cements share price target 2024
November and December month of 2023 were positive for almost every good stock and the whole Indian stock market. In these months most of the good stocks given a massive return and in those stocks Ambuja Cements is also included. After the Budget 2024 – 2025, Ambuja Cement and companies stocks also gave a massive return that plays an important role in the development of infrastructure.
On the daily time frame, you can see there is a resistance at Rs. 598 i.e. its all-time high of the stock. As the stock has fallen from the resistance and reversed too. So, most probably once the resistance is broken we can see the stock making a new all-time high.
Ambuja Cements share price target 2025 and 2026
Ambuja Cements Company is very stable financially which means in poor market conditions it may not give a high loss but its stock price is trading at a very high premium at this point.
If the stock is good for your investment then you should only invest in SIP. If you invest all the money at one time then most probably you will face a huge loss when the stock will face correcting.
Currently, many industries are not performing well because of the very high-interest rates. Once the interest rates will cool down then we can expect some good returns on the stock.
FAQs
Ambuja Cements is a fundamentally strong company and one of the largest cement companies in India. It can be a good stock for the long term and also has a huge potential to give good returns. Please do a proper analysis before taking any decision.
In the long term, the stock can be good. Investing in SIP for the long term can give you the best returns if the stock is good according to your analysis and research.
Ambuja Cements’s share price target for the next few years is mentioned above in the chart. You can check it to get a clear idea of your research
Final Words: With the development of the infrastructure the companies which play a major role in the development of the infrastructure will give good returns. The government has also had a lot of plans related to the development of the infrastructure in India. If you want to invest in the long term with very low risk then it can be a good stock. Hope our post-Ambuja Cements share price target for 2024, 2025, and 2026 has given you some ideas about investing in the stock.