AMBUJA CEMENTS LTD Valuation

AMBUJACEM · Construction Materials · Current price ₹399.7

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DocStoX fair value
₹366
low confidence
Current price
₹400
Upside
-8.5%
P/E ratio
20.9x
P/B ratio
1.8x
Verdict
Fairly Valued
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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.

Valuation multiples

AMBUJA CEMENTS LTD trades at a P/E of 20.9x 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

P/E RatioP/B RatioPEG RatioEarnings Yield

More on AMBUJA CEMENTS LTD

Fair ValueIntrinsic ValueDCFFinancial RatiosPeers

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.