AMBUJA CEMENTS LTD Fair Value
AMBUJACEM · Construction Materials · Current price ₹400.05
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹229 | 9% ROE fading to 13% over ~3 yrs, on ₹240 book |
| Relative P/E | ₹576 | EPS × 30.1 peer-median P/E |
| Graham floor | ₹321 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹499 | Street consensus 12-month target price |
Is AMBUJA CEMENTS LTD undervalued?
DocStoX estimates the fair value of AMBUJA CEMENTS LTD at ₹366 per share, versus the current market price of ₹400. That puts the stock about -8.5% above our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹229), Relative P/E (₹576), Graham floor (₹321), Analyst target (₹499). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹229 (bear) to ₹366 (base) to ₹576 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on AMBUJA CEMENTS LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.