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Ambuja Cement: Losing sheen

(Jun 22, 2010)

Equityamster puts forth the view that Ambuja Cements which is considered as the most profitable cement manufacturer is not the case anymore.

Commodities: A mixed bag!

(Dec 28, 2006)

The commodities sector witnessed mixed sentiment during 2006. Those who shifted to cement sector from metals would have been a happier lot. The stocks within the cement sector outperformed the Sensex while select metal stocks performed well. Thus, unlike the cement sector, returns from the metal stocks were subject to good strong picks. To give a perspective, an amount of Rs 100 invested in the commodities index would have yielded 33% return by the end of the year, while the returns would have b

Cement: All that goes up must...

(Oct 6, 2006)

Every fund manager we meet these days are bullish on the cement sector. When asked why, we get a reply that prices are expected to be strong over the next three to six to eight months! While we do concur with such views to an extent, we do not believe that buying cement stocks (or for that matter, any stock) with a short-term view is warranted. In our view, things are not as rosy as it seems for the sector, if one takes a medium-term view.

Gujarat Ambuja: In changing times

(Sep 22, 2006)

Gujarat Ambuja, with a total consolidated capacity of 14 million tonnes (MT), is the third largest cement producer in the country. It has close to 9% of the country's total cement capacity and has the western and northern regions as its principal markets. The company has been considered the lowest-cost producer of cement in the country. However, things have changed in the past. In this article, we analyse the company’s performance in relation to its peers.

The Ambuja strength…

(Oct 20, 2004)

Gujarat Ambuja, one of the most cost-efficient manufacturers of cement, declared its 1QFY05 results today. Though growth numbers, as is evident from the table below, are higher at the first look, the numbers are not strictly comparable (due to the merger of a subsidiary with the company). Domestic sales of cement was higher by 9% during the quarter under review.

Gujarat Ambuja: Other income to the rescue

(Oct 17, 2003)

Gujarat Ambuja, the third largest cement producer in the country has registered a lackluster performance for the September quarter. While the topline of the company has remained stagnant, the operating profits of the company have suffered a decline of almost 16%. However, the other income has helped the company to register a bottomline growth of nearly 41%.

Gujarat Ambuja Vs Cemex

(Aug 21, 2003)

With operating margins that are almost double the industry average and a dynamic and committed management at the helm, Gujarat Ambuja is more than a match for anyone in the Indian cement industry. But does it have enough fire power to hold its own against transnational giants like Lafarge and Cemex? In this article, we will compare Gujarat Ambuja with a transnational giant, Cemex.

Gujarat Ambuja: Above all else

(Aug 11, 2003)

If the mood in the stock markets is any indication, cement stocks are finding takers even at the current levels. In this article, we will try to analyse strengths, weaknesses and the future growth prospects of Gujarat Ambuja.

Cement: Realising stability

(Aug 5, 2003)

Cement companies have been the victims of weak prices for some time now. But to a certain extent they have themselves to blame. Uncontrolled capacity additions in the past have led to an overcapacity in the industry. Since cement is a capital-intensive industry, in order to recover the huge operating costs involved, the companies have to rely on huge volumes. This often tends to create an oversupply situation in the industry thus dragging down the prices and putting pressure on the operating mar

Gujarat Ambuja: On a high

(Jul 31, 2003)

Gujarat Ambuja, one of the leading producers of cement in the country has posted a 25% growth in topline in the FY03. The bottomline of the company grew by a strong 19 % percent. This is at a time when most cement companies reported poor results for FY03. However one must also acknowledge the fact that since the June quarter realisations have started improving and this has helped the company post relatively better results than its peers. The strong growth in the bottomline was mainly assisted by

Cement: Consolidation benefits all?

(Jun 26, 2003)

The year 2002-03 was rather forgettable as far as the cement sector is concerned. While the industry saw strong demand for cement, an oversupply scenario adversely impacted the operating efficiencies of cement companies and consequently their profitability. The current year on the other hand has started off with a bang. Here we are referring to the consolidation witnessed in the sector early this year. In this article we look at the year that went by, i.e. FY03 and the current year, and the chan

Gujarat Ambuja: Strong bottomline growth

(Apr 10, 2003)

Gujarat Ambuja, the fourth largest cement producer in the country, announced healthy March quarter results. The company has reported nearly 27% jump in topline while its bottomline has risen by 22% in 3QFY03 on a YoY basis. Other income contributed significantly to the bottomline growth. Operating margins have however fallen by nearly 240 basis points. In 9mFY03, topline has shown a 26% growth while bottomline has dipped by 8% on a YoY basis.

SEBI: Improving but…

(Mar 26, 2003)

Two of the most high profile investigations into the violation of the takeover code have ended in the acquittal of both the accused parties. These investigations pertain to the accusations that Gujarat Ambuja Cements limited (GACM) and Grasim had gained management control over ACC and L&T respectively without making the mandatory an open offer. These investigations had created a lot of interest among the investor community mainly due to the gains that could have accrued to investors in L&T and A

Cement: Dull performance...

(Jan 22, 2003)

The cement sector's performance so far can be summed up as unimpressive and things will remain unchanged at least in the current quarter as well. Hence, it goes without saying that FY03 will go down as another forgettable year in the history of the industry, as far as financial performance is concerned. The only saving grace seems to be the healthy volume growth that the industry is clocking as a result of government's thrust on road projects and continued demand from the housing segment.

Gujarat Ambuja: Realisation blues

(Oct 29, 2002)

Gujarat Ambuja, the 4th largest cement producer in the country, has announced poor September quarter results. The company has reported a 25% jump in topline but its bottomline has fallen by a considerable 64%. Operating margins have fallen drastically by nearly 1200 basis points to 19%.

Cement: 'Voluminous' growth

(Oct 8, 2002)

Cement companies are witnessing a boom, atleast on the volumes front. Dispatches of major cement companies have risen considerably on account of a healthy demand from the housing as well as highway projects. On an average, dispatches of the four major cement companies in the country have gone up by 24% in 2QFY03 on a YoY basis with Gujarat Ambuja leading the pack.

Cement: MNCs vs local

(Sep 23, 2002)

Consolidation in the Indian cement industry has picked up considerable speed in the last 4-5 years. As a result, the Indian cement market is slowly mimicking its more developed counterparts in the US and Europe. The biggest and the most visible benefit of consolidation is that of improving realisations. US and European markets by virtue of high level of consolidation have cement realisations much higher compared to anywhere in the world.

Gujarat Ambuja: Deferred taxes take a toll

(Aug 2, 2002)

Gujarat Ambuja, the cement major, prima facie, has announced poor results considering the company has reported a 1% rise in net profits. But a closer look will reveal that profits have actually gone up by 17% on a YoY basis if adjusted for deferred tax. The company has also reported a 9% growth in total revenues.

Cement: MNCs gaining ground

(Jul 23, 2002)

The cement industry has witnessed renewed activity from multinationals that are trying to further consolidate and strengthen their position in India. After lying in wait for a long time, international cement majors are now initiating steps to strengthen their position in the Indian markets. Consolidation in the cement industry was dominated by Indian companies buying out smaller players or acquiring strategic stakes in others.

Cement: Housing push

(May 27, 2002)

Cement, one of the key infrastructure industries, recorded a good growth in FY02. The domestic demand grew by 9.5%, according to Cement Manufacturers Association (CMA). This translates to a figure of 102 m tonnes. This growth is mainly attributed to the Government spending to develop infrastructure like roads and housing.

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