AMBUJA CEMENTS LTD Valuation

AMBUJACEM · Construction Materials · Current price ₹438.5

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DocStoX fair value
₹346
low confidence
Current price
₹439
Upside
-21.2%
P/E ratio
22.9x
P/B ratio
1.8x
Verdict
Expensive
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Is AMBUJA CEMENTS LTD undervalued?

DocStoX estimates the fair value of AMBUJA CEMENTS LTD at ₹346 per share, versus the current market price of ₹439. That puts the stock about -21.2% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹229), Relative P/E (₹601), Graham floor (₹321). 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 ₹346 (base) to ₹601 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

AMBUJA CEMENTS LTD trades at a P/E of 22.9x and a P/B of 1.8x, with a dividend yield of 0.5%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

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.