Ambuja Cement Share Price Target Forecast Live Chart, Analysis
Cement is an essential construction material used in a wide variety of applications, from building bridges and roads to constructing homes and office buildings. India is the world’s second-largest producer of cement, with a production capacity of nearly 500 million tonnes per year. Ambuja Cement is one of the largest cement producers in India, with a production capacity of nearly 30 million tonnes per year. Ambuja Cement was founded in 1983 and is headquartered in Mumbai, India.
The company has a strong presence in the Indian market, with a network of over 5,000 dealers and retailers. Ambuja Cement is also present in the international markets, with operations in Nepal, Bangladesh, and the Middle East. The company has a total workforce of over 9,000 employees. Ambuja Cement is a part of the LafargeHolcim Group, the world’s largest cement producer. LafargeHolcim has a presence in over 80 countries and a production capacity of over 500 million tonnes per year.
Ambuja Cement: India’s Second-Largest Cement Producer
Ambuja Cement is one of the largest cement producers in India with a production capacity of around 29.65 million tonnes per year. The company has a strong presence in the northern, western and eastern regions of India. Ambuja Cement has a total of five cement plants and four grinding units across the country. The company also has a captive power plant with a capacity of around 0.7 million kilowatts. Ambuja Cement is the second-largest cement producer in India after UltraTech Cement. The company has a market share of around 10% in the Indian cement industry. LafargeHolcim is the world’s largest cement producer with a total production capacity of around 463 million tonnes per year.
Ambuja Cement’s Financials
Ambuja Cement’s financials are impressive. The company reported a net profit of Rs 1,451 crore in the quarter that ended March 31, 2021, up from Rs 931 crore in the same period last year. This was driven by higher sales and operating margin expansion. Revenue for the quarter rose 12% to Rs 4,536 crore while the operating margin expanded 400 basis points to 29%. EBITDA (earnings before interest, tax, depreciation, and amortization) for the quarter rose 33% to Rs 2,614 crore. For the full year ended March 31, 2021, Ambuja Cement reported a net profit of Rs 4,739 crore, up from Rs 3,016 crore in the previous year.
Revenue for the year rose 10% to Rs 17,136 crore. Operating margin for the full year expanded by 340 basis points to 26%. The company’s strong performance was driven by higher sales volume and realizations as well as cost savings. Ambuja Cement sold 27.4 million tonnes of cement in FY21, up from 25.8 million tonnes in FY20. Realizations increased 6% to Rs 6,360 per tonne in FY21 from Rs 5,990 per tonne in FY20. The cost of production fell 2% to Rs 3,560 per tonne in FY21 from Rs 3,630 per tonne in FY20 due to lower fuel and power costs as well as lower freight costs. Ambuja Cement’s net debt stood at Rs 11,871 crore at the end of March 2021, down from Rs 13,235 crore at the end of March 2020.
Ambuja Cement’s Share Price Outlook
Looking ahead, Ambuja Cement’s share price is likely to be influenced by a number of factors. Firstly, the company’s financial performance is expected to remain strong in the coming years, supported by continued demand for cement in India. Secondly, Ambuja Cement’s dividend yield is expected to remain attractive, making it an attractive investment for income-seeking investors. Finally, the company’s share price is also likely to be supported by its strong market position and brand equity.
Ambuja Cement’s Dividend Yield
Ambuja Cement’s dividend yield is currently 3.3%. This is a relatively high yield, especially when compared to the company’s five-year average dividend yield of 2.4%. There are several reasons for this higher-than-average dividend yield. First, Ambuja Cement has been paying dividends for over 25 years. This long track record of dividend payments indicates that the company is committed to returning cash to shareholders. Second, Ambuja Cement has a strong financial position.
The company reported a net profit of Rs 1,362 crore in FY2021, and its total debt stood at Rs 4,964 crore as of March 2021. This strong financial position gives the company the ability to continue paying dividends even during tough economic times. Third, Ambuja Cement has a history of increasing its dividend payout ratio. The company’s dividend payout ratio was 20% in FY2020 and is expected to increase to 30% in FY2021. This indicates that the company is willing to return more cash to shareholders in the form of dividends. Fourth, Ambuja Cement’s share price has fallen sharply in recent months, which has resulted in a higher dividend yield.
The stock is down around 20% from its 52-week high, which was reached in February 2020. As a result, the stock now offers a more attractive dividend yield. Overall, Ambuja Cement’s dividend yield is attractive at current levels. Investors looking for income should consider buying the stock for its high yield and strong dividend growth prospects.
Ambuja Cement: A Good Investment?
Ambuja Cement is a good investment for several reasons. First, it is one of the largest cement producers in India, with a market share of around 20%. This gives it a strong position in the Indian cement market, which is expected to grow at a healthy rate in the coming years. Second, Ambuja Cement has a strong financial position, with low debt levels and healthy profitability. Third, the company has a good dividend yield, which makes it an attractive income investment. Finally, Ambuja Cement’s share price has been relatively stable in recent years, which makes it a less risky investment than some of its peers.
In conclusion, Ambuja Cement is a good investment for those looking to invest in the Indian cement industry. The company is the second-largest cement producer in India and has a strong presence in both the domestic and international markets. Ambuja Cement’s financials are solid, and its share price is expected to continue to rise in the coming years. The company also offers a decent dividend yield, making it an attractive investment for income investors.