CMP: 160

Ambuja Cements Limited manufactures cement in the states of Gujarat and Himachal Pradesh. The Company owns specially designed ships and terminals for bulk transportation of its products. Ambuja Cement sells most of its products domestically, but also has a subsidiary that markets the Group's items in Sri Lanka.


Ambuja Cements has not been a growth story so far. But its a decent investment bet with cement industry picking up. Its trading at a P/E of 20 with dividend yields of less than 2% in the last 12 months. It runs at Zero debt with almost 2300 Crores cash in hand. Revenues have picked up slowly from 6268 Crores to 7517 Crores in the last 5 years. Profits have fluctuated and dipped from 1503 Crores to 1263 Crores in the last 5 years. NPM has dipped from 24% to 17% over the last 5 years. Like i said before, its not a growth stock. Buy and book profits at peaks.