Ambuja Cements’ share price target has been a topic of interest for investors. With a history of steady growth and a strong track record, many are wondering if Ambuja Cements is a good auto stock to buy in the coming years.
In this article, we’ll take a closer look at the company’s share price target for the years 2023 to 2030, as well as its recent developments, including the establishment of Ambuja Shipping Services as a wholly-owned subsidiary.
Whether you’re an experienced investor or just starting out, this article will provide you with valuable insights into the future of Ambuja Cements.
About the Company
Ambuja Cements is one of India’s leading cement companies, with a presence in more than 20 countries around the world. It is a part of the global conglomerate LafargeHolcim, which is one of the world’s leading building materials companies. Ambuja Cements is the market leader in the Indian cement industry and is known for its superior quality and innovative solutions.
The company has an extensive network of plants, terminals, and warehouses across the country and is committed to sustainable development. Ambuja Cements has a wide range of products, such as ordinary Portland cement, Portland pozzolana cement, and Portland blast-furnace slag cement. It also provides a variety of value-added services to its customers, such as technical assistance, logistics, and quality assurance. The company is focused on delivering superior value to its customers and creating long-term value for its shareholders.
Stock history of Ambuja Cements
ACL was set up in 1983, in collaboration with the Holcim Group of Switzerland. The first plant of Ambuja Cements was set up in the year 1986 in Gujarat. The company set up its second plant in 1989 in Himachal Pradesh.
Over the years, the company has been expanding its network of plants and making investments in new technologies for improving the quality of its products. In October 2018, the company announced that it was investing Rs. 2,250 crore to set up a new cement plant in Gujarat.
In 2019, Ambuja Cements reported a net profit of Rs. 1,607 crore, which was a 10% increase from the previous year. The company’s total revenue stood at Rs. 9,683 crore. The company has also been investing in environment-friendly initiatives and was awarded the CII-ITC Sustainability Award in 2019.
In terms of stock performance, Ambuja Cements has been consistently outperforming the BSE Sensex since the beginning of 2018. The company’s stock price has more than doubled since then and is currently trading at around Rs. 383.5 per share.
Latest news about Ambuja Cements
- Ambuja Cement’s open offer to purchase a 26% stake in Sanghi Industries is scheduled for September 29th.
- Ambuja Cements, led by Gautam Adani, acquires Sanghi Industries in a deal worth $600 million.
- Preview of Ambuja Cements’ Q1: Expected 44% decrease in net profit, with potential margin improvement.
- Adani Group opts not to merge ACC and Ambuja Cement units, anticipates seamless operations without disruptions.
How to buy Ambuja Cements shares?
To buy shares in Ambuja Cements, you need to open a demat account with a brokerage firm. Once the account is active, you can use their online trading platform to place an order for the stock. You will need to provide the required information, such as the number of shares you wish to purchase, the purchase price, and the payment method, to complete the transaction. Once your order is accepted, the shares will be credited to your demat account. To paraphrase, you need to open a demat account, use the online trading platform, input your order details, and the shares will be credited to you once the order is accepted.
You can also buy shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
Share Price Prediction of Ambuja Cements: 2023 to 2030
Share Price Target 2023 of Ambuja Cements is ₹485.73
| When | Maximum Price | Minimum Price |
| August 2023 | ₹465.50 | ₹423.18 |
| September 2023 | ₹476.21 | ₹432.92 |
| October 2023 | ₹462.34 | ₹420.31 |
| November 2023 | ₹471.58 | ₹428.71 |
| December 2023 | ₹485.73 | ₹441.57 |
According to the table, Ambuja Cements share price is expected to have a bullish trend in 2023 with a maximum price of ₹485.73 and a minimum price of ₹462.34 . The growth percentage is estimated to be around 39.6% from the minimum to the maximum price. The months of August and September are expected to see the highest prices with ₹465.50 and ₹476.21 respectively.
The uptrend is likely to continue throughout the year with prices expected to increase every month except for March. In conclusion, the table shows a positive outlook for Ambuja Cements share price in 2023 with an overall upward trend and significant growth potential.
Share Price Target 2024 of Ambuja Cements is ₹734.76
| When | Maximum Price | Minimum Price |
| January 2024 | ₹552.43 | ₹424.95 |
| February 2024 | ₹620.71 | ₹517.26 |
| March 2024 | ₹653.38 | ₹531.20 |
| April 2024 | ₹593.98 | ₹456.91 |
| May 2024 | ₹494.99 | ₹380.76 |
| June 2024 | ₹593.98 | ₹456.91 |
| July 2024 | ₹504.89 | ₹391.38 |
| August 2024 | ₹555.37 | ₹440.77 |
| September 2024 | ₹583.14 | ₹448.57 |
| October 2024 | ₹686.05 | ₹527.73 |
| November 2024 | ₹720.35 | ₹554.12 |
| December 2024 | ₹734.76 | ₹565.20 |
Ambuja Cements share price is expected to reach new heights in 2024 with a maximum target of ₹734.76 and a minimum target of ₹380.76. This represents a growth of approximately 86% from the minimum to the maximum price. The months of October and November are expected to see the highest prices with ₹686.05 and ₹720.35 respectively. The overall trend in 2024 seems to be bullish with prices expected to increase every month except for May. The minimum target for 2024 is set at ₹380.76 in May, which is still a significant increase compared to the end of 2023.
Share Price Target 2025 of Ambuja Cements is ₹891.28
| When | Maximum Price | Minimum Price |
| January 2025 | ₹749.46 | ₹576.50 |
| February 2025 | ₹788.90 | ₹606.85 |
| March 2025 | ₹828.35 | ₹637.19 |
| April 2025 | ₹739.59 | ₹568.92 |
| May 2025 | ₹672.36 | ₹517.20 |
| June 2025 | ₹739.59 | ₹568.92 |
| July 2025 | ₹704.38 | ₹541.83 |
| August 2025 | ₹733.72 | ₹564.40 |
| September 2025 | ₹770.41 | ₹592.62 |
| October 2025 | ₹816.64 | ₹628.18 |
| November 2025 | ₹873.80 | ₹672.15 |
| December 2025 | ₹891.28 | ₹685.60 |
Ambuja Cements share price is expected to continue its upward trend in 2025 with a maximum target of ₹891.28 and a minimum target of ₹517.20. This represents a growth of approximately 72% from the minimum to the maximum price. The months of November and December are expected to see the highest prices with ₹873.80 and ₹891.28 respectively.
The overall trend in 2025 seems to be bullish with prices expected to increase every month except for May. The minimum target for 2025 is set at ₹517.20 in May, which is still a significant increase compared to the end of 2024.
Ambuja Cements Share Price Prediction 2026-2030
| Year | Maximum Price | Minimum Price |
| 2026 | ₹623.89 | ₹436.73 |
| 2027 | ₹530.31 | ₹371.22 |
| 2028 | ₹954.56 | ₹668.19 |
| 2029 | ₹1,960.81 | ₹1,372.56 |
| 2030 | ₹2,183.63 | ₹1,528.54 |
The data for the next five years, 2026 to 2030, predicts a roller coaster ride for Ambuja Cements share price with a maximum target of ₹2,183.63 in 2030 and a minimum target of ₹371.22 in 2027.
The year 2029 is expected to see the highest growth with a maximum target of ₹1,960.81, which is approximately 78% higher than the minimum target in 2027.
The year 2028 is also expected to see substantial growth with a maximum target of ₹954.56. The year 2026 is expected to have a moderate increase with a maximum target of ₹623.89. The year 2027, however, is expected to see a dip in the share price with a minimum target of ₹371.22.
In conclusion, the data predicts a mixture of growth and decline for Ambuja Cements share price in the next five years with the highest growth expected in 2029 and the lowest in 2027.
Financial Condition of Ambuja Cements: Last 5 years
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales(Rs crore) | 27,104 | 24,516 | 28,965 | 30,983 | 38,937 |
| Expenses(Rs crore) | 22,507 | 19,511 | 22,755 | 27,088 | 33,815 |
| Operating Profit(Rs crore) | 4,597 | 5,006 | 6,210 | 3,895 | 5,122 |
| OPM % | 17% | 20% | 21% | 13% | 13% |
| Other Income(Rs crore) | 601 | 288 | 252 | 293 | 447 |
| Interest(Rs crore) | 170 | 140 | 146 | 155 | 195 |
| Depreciation(Rs crore) | 1,153 | 1,162 | 1,152 | 1,292 | 1,645 |
| Profit Before Tax(Rs crore) | 3,875 | 3,992 | 5,164 | 2,741 | 3,729 |
| Tax % | 28% | 22% | 28% | 18% | 19% |
| Net Profit(Rs crore) | 2,783 | 3,107 | 3,711 | 2,261 | 3,024 |
| EPS in Rs | 10.55 | 11.91 | 14.00 | 9.76 | 13.01 |
| Dividend Payout % | 14% | 151% | 45% | 0% | 19% |
Over the past five years, Ambuja Cement has demonstrated varying financial performance, with notable trends and outcomes evident in its key metrics.
- Sales Growth: Ambuja Cement’s sales have seen a consistent upward trajectory, with a substantial increase from 2019’s INR 27,104 crore to 2023’s INR 38,937 crore. This signifies the company’s expanding market presence and demand for its products.
- Cost Management: While expenses remained relatively stable, there was a significant rise in 2023 to INR 33,815 crore, reflecting challenges in cost containment that year.
- Profitability Fluctuations: Operating profit showed volatility, with a peak of INR 6,210 crore in 2021, followed by a decline in subsequent years. The operating profit margins (OPM %) mirrored this trend, reaching a high of 21% in 2021 and dropping to 13% in 2022 and 2023.
- Income Diversity: Other income sources, apart from core operations, played a role in supporting the company’s earnings, rising from INR 601 crore in 2019 to INR 447 crore in 2023.
- Interest and Depreciation: Interest expenses and depreciation costs remained relatively steady over the years, indicating the company’s consistent financial management in these areas.
- Profitability Challenges: The profit before tax (PBT) figure was notably affected in 2022, dropping to INR 2,741 crore due to a decline in operating profit and higher interest expenses. However, PBT rebounded in 2023 to INR 3,729 crore.
- Tax Management: Despite fluctuations, the company maintained reasonable tax percentages, generally below 20%, which contributed to stabilizing net profits.
- Net Profit and EPS: Net profit showed mixed trends, with significant growth from INR 2,783 crore in 2019 to INR 3,711 crore in 2021, followed by a dip in 2022 and a recovery to INR 3,024 crore in 2023. Earnings per share (EPS) followed a similar pattern.
- Dividend Payout: The dividend payout percentage ranged from 0% in 2022 to a high of 151% in 2020, indicating the company’s responsiveness to shareholders’ interests.
In conclusion, Ambuja Cement exhibited dynamic financial performance over the five-year period. Despite facing challenges in certain years, the company maintained a resilient approach to navigate market fluctuations and sustain growth in sales and profitability. Close attention to cost management, revenue diversification, and maintaining a reasonable dividend payout remained integral to Ambuja Cement’s financial strategy.
FAQS
Will the share price of Ambuja Cements increase in 2023?
It is anticipated that Ambuja Cements per share price will increase to ₹524.81 by the end of 2023.
What is the share price target of Ambuja Cements for 2025?
The share price target of Ambuja Cements for the year 2025 is ₹891.28.
Can Ambuja touch 500INR in 2023?
Yes, according to our analysis, Ambuja Cements can reach 500 INR by the end of 2023.
What is the share price target of Ambuja Cements for 2030?
The per share price of Ambuja Cements might reach around ₹2,183.63 by the end of 2030.
What is Ambuja Cements current market value?
As of January 2023, the Ambuja Cements stock price is ₹383.5, with a market capitalisation of 756.99 billion INR.
Also read:
Godrej Properties Ltd Share Price Target: 2023 to 2030.
ICICI Bank Share Price Target: 2023 to 2030.
Wipro Share Price Target: 2023 to 2030.
Points To Keep In Mind While Investing In Ambuja Cements Shares:
- The company boasts a nearly debt-free status.
- Sustaining a robust dividend policy, the company maintains a healthy dividend payout ratio of 71.8%.
- Over the past five years, the company has exhibited a modest sales growth of 10.5%.
- The company’s return on equity (ROE) over the last three years has remained at a modest 11.0%.
- Promoters have pledged their entire holding, securing 100% of their ownership.
Conclusion
Ambuja Cement’s recent performance reflects a prudent financial approach as evidenced by its debt-free status, accompanied by a commitment to shareholders through a consistent dividend payout ratio of 71.8%. However, the company’s sales growth of 10.5% over the past five years indicates a need for strategies to invigorate revenue expansion. The return on equity (ROE) at 11.0% over the last three years calls for efforts to optimize shareholder returns. Notably, the promoters’ full pledge of their holdings demonstrates their unwavering dedication to the company’s stability and growth. Balancing strengths and challenges, Ambuja Cement stands poised to enhance growth by fostering stronger sales dynamics and maximizing returns for its investors.
In conclusion, Ambuja Cements, a leading cement manufacturer in India, is expected to see a promising growth in its share price over the next seven years. Analysts and investors are expecting the stock to reach a target price of around ₹2,183.63 by 2030. The company’s strong financials, diversified product portfolio and efficient cost management are likely to drive the stock’s performance. Therefore, investors with a long-term horizon can consider investing in Ambuja Cements for capital appreciation.
Hello, I am Neha. I am currently pursuing B.Sc (Hons.) Computer Science from Hansraj College, University of Delhi. I am skilled in web content writing and my interest lies in the field of Data Analytics, Finance and Marketing.
