Ambuja cements Ltd is an Indian leading cement manufacturer. Cement plays a very crucial role in the development of any nation. More a country develops and create new infrastructure more cement we need. Company is investing in new opportunity by investing crores of rupees to remain one of market leaders in cement. Ambuja cement has its up and downs but overall it has increased the wealth of its investors. If we take last five years data then Ambuja cement has given 183% returns and 66% returns in one year. The biggest disadvantage of this share is that earning per share is decreasing and it is much below than the share of other similar companies. The revenue of the company are also growing slower than the similar companies in the segment.
The good point is that Ambuja cement has high relative operating margins than to its peers. If we compare the three year PE ration than Ambuja cement stock looks to be overvalued. But still this stock is in good health and presently following a positive trend in the charts. Ambuja cement enjoys a high market cap in the segment and it has got 7 Piotroski score which is good. This stock also enjoys a strong promoter holding of 63%. The financial experts have mixed opinion about this stock as some of the expecting upward trend while others are giving it downgrade.
Ambuja cements also enjoy more strength than the weakness so the hopes from this stock are high. All this factors make Ambuja cement a balanced risk stock. In view, if we go by the charts then this stock can make some more positive movements but for better outlook it is better to wait and see where this stock is headed. If there is a good dip in this stock, then it will become a good buy.
What to Do - Wait for Downtrend
When to Buy - Below Rs 580
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