Ambuja CementsFRA:GJA -37.70%65 Current Ratio is 1.05 as of Mar. 2026, which is 29% below its 10-year median of 1.48. GuruFocus rates FRA:GJA with a GF Score™ of 65/100 and a GF Value™ of €2.27 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 408 Building Materials companies, Ambuja Cements ranks worse than 74.75% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Ambuja Cements's current ratio for the quarter that ended in Mar. 2026 was 1.05.
Ambuja Cements has a current ratio of 1.05. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ambuja Cements's Current Ratio or its related term are showing as below:
FRA:GJA'
s Current Ratio Range Over the Past 10 Years
Min: 1.05 Med: 1.48 Max: 1.98
Current: 1.05
During the past 13 years, Ambuja Cements's highest Current Ratio was 1.98. The lowest was 1.05. And the median was 1.48.
FRA:GJA's Current Ratio is ranked worse than 74.75% of 408
companies
in the Building Materials industry
Industry Median: 1.505
vs FRA:GJA: 1.05
Ambuja Cements (FRA:GJA) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Ambuja Cements Current Ratio Related Terms
Ambuja Cements Current Ratio Historical Data
* Premium members only.
The historical data trend for Ambuja Cements's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Materials subindustry, Ambuja Cements's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ambuja Cements Current Ratio vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Ambuja Cements's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ambuja Cements's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ambuja Cements (FRA:GJA) has a Current Ratio of 1.05 as of Mar. 2026. This is 29% below median its historical median of 1.48. Over the past decade, Ambuja Cements' Current Ratio has ranged from 1.05 to 1.98. According to the industry distribution chart, Ambuja Cements ranks #305 out of 408 companies in the Building Materials industry, placing it in the top 74.8%.
Is Ambuja Cements' Current Ratio too high?
Ambuja Cements' current Current Ratio of 1.05 is 29% below median its 10-year median of 1.48. Over the past 10 years, this metric has ranged from a low of 1.05 to a high of 1.98. The Building Materials industry median Current Ratio is 1.51. Ambuja Cements' value of 1.05 is 30.2% below this industry median. Based on the distribution chart, Ambuja Cements ranks #305 out of 408 companies in the Building Materials industry, which is below the industry midpoint. Overall, Ambuja Cements has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ambuja Cements' Current Ratio compare to ?
According to the Building Materials industry distribution chart, Ambuja Cements ranks #305 out of 408 companies for Current Ratio. This places Ambuja Cements in the lower half of its industry. The industry median Current Ratio is 1.51. Ambuja Cements' value of 1.05 is 30.2% below this benchmark. Historically, Ambuja Cements' own Current Ratio has ranged from 1.05 to 1.98 over the past decade. While the company's 10-year median is 1.48 vs. the industry median of 1.51, Ambuja Cements has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Building Materials company?
The median Current Ratio among Building Materials companies is 1.51, based on 408 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ambuja Cements's current Current Ratio of 1.05 is 30.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Building Materials industry, the median Current Ratio is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambuja Cements's current Current Ratio is 1.05, which is 29% below median its own 10-year median of 1.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambuja Cements stock overvalued right now?
Based on GuruFocus' analysis, Ambuja Cements (FRA:GJA) is currently considered Possible Value Trap. The stock's GF Value™ is €2.27, compared to a current price of €1.57 — trading 30.8% below its estimated fair value. The current Current Ratio is 1.05, which is 29% below median its 10-year median of 1.48 and 30.2% below the Building Materials industry median of 1.51. Ambuja Cements' overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Ambuja Cements (FRA:GJA), the current Current Ratio is 1.05 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ambuja Cements (FRA:GJA) Overvalued in 2026?
Based on GuruFocus' analysis, Ambuja Cements stock appears to be undervalued.
The current stock price of €1.57 is trading 30.8% below its estimated GF Value™ of €2.27.
GuruFocus considers Ambuja Cements to be Possible Value Trap.
Key valuation signals for FRA:GJA:
Current Ratio: 1.05 (29% below median its 10-year median of 1.48)
GF Value™: €2.27 vs. price of €1.57 (30.8% below fair value)
Industry Position: 30.2% below the Building Materials median (#305 of 408)
No single metric tells the full story. See the FRA:GJA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambuja Cements Ltd is engaged in the manufacture and sale of cement, intermediary products, and cement-related products. The Company operates multiple cement manufacturing plants located at various locations and markets cement and cement-related products. Its product portfolio includes Ambuja Kawach, Ambuja Plus, Ambuja Compocem, Ambuja Cement, Ambuja Cool Walls, Purasand for Concrete & Plaster, and others. The Company generates revenue from within India.
65GF Score
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