Ambuja Cements Limited is a Gujarat-based cement major in India. Though Ambuja Cements Ltd started their operation in 1986, after the new millennium started the company grew at an almost geometric progression. Today Ambuja Cements share price tells all about its present business condition. It is a large-cap Nifty 50 company.
Ambuja Cements Share Price Graph
About the Company
The last few years saw Ambuja Cements share price reaching new highs as the company grew manifolds. Today it is the third largest cement major in India with an annual plant capacity of over 18 million tonnes. It has, in its stable manufacturing units, some of the most efficient cement-producing units in the world making the manufacturing cost a very low level. Today, as per the latest data, Ambuja Cements Ltd. is the most cost-efficient cement company in India.
Ambuja Cements Ltd. can easily achieve 100% of capacity utilization as and when required. The evolving outlook of its management and the urge to be the leader has introduced pioneering steps into the cement sector. In 1993, The Ambuja Cements Ltd. was the first company to start a wholly new setup to send the bulk of its produce via sea route. It became the first company in India to send cement in bulk company via sea route. Others followed suit later on. Now 10% of total cement in India follows the sea route for transportation.
The Bulk cement terminals are situated at Surat, Panvel, Cochin and Galle (Srilanka). The Port Terminal of Ambuja Cements Ltd. is situated at Muldwarka, Gujarat. The port is 8 km away from the company’s Ambujanagar plant and is an all-weather port.
Mergers and Aquisitions
In 2013, Ambuja Cements Ltd. acquired Holcim (India), a wholly owned subsidiary of Holderind Investments Ltd., Mauritius and thereby acquiring a 24% stake in the mother company This was later followed by the merger of Holcim (India) with Ambuja Cements ltd. The company immensely benefitted from this M&A (merger and acquisition).
Ambuja Cements Ltd received many national and international awards for excellence in quality as well as employee safety and environmental protection. Its business model and philosophy made it stand apart from others.
Company Financials for Analyzing Ambuja Cements Share Price
As per the latest data of Ambuja Cements Ltd., the standalone basis P/E is 42.63 against the average industry PE ratio of 36.87, and EPS is Rs 5.53. The market capitalization is Rs 46,851 crores. The face value of a share is Rs 2 which is trading at Rs. 236 (as of 16.06.17, 13.00 hrs.).
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Final Thoughts about Ambuja Cements Share Price
In conclusion, Ambuja Cements has proven to be a reliable stock option for investors. The company has experienced tremendous growth since its inception and is still going strong with consistent returns over the past year or so. Its current share price provides an attractive entry point for long-term investors looking to benefit from this promising company’s growth prospects. As such, it is definitely worth considering adding Ambuja Cements to one’s investment portfolio.