Ambuja CementsNSE:AMBUJACEM +3.37%84 ROA % is 8.17% as of Mar. 2026, which is 38% above its 10-year median of 5.91. GuruFocus rates NSE:AMBUJACEM with a GF Score™ of 84/100 and a GF Value™ of ₹648.06 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 410 Building Materials companies, Ambuja Cements ranks better than 70.24% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ambuja Cements's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹73,206 Mil.
Ambuja Cements's average Total Assets over the quarter that ended in Mar. 2026 was ₹896,066 Mil. Therefore, Ambuja Cements's annualized ROA % for the quarter that ended in Mar. 2026 was 8.17%.
The historical rank and industry rank for Ambuja Cements's ROA % or its related term are showing as below:
NSE:AMBUJACEM'
s ROA % Range Over the Past 10 Years
Min: 3.25 Med: 5.91 Max: 11.08
Current: 5.3
During the past 13 years, Ambuja Cements's highest ROA % was 11.08%. The lowest was 3.25%. And the median was 5.91%.
NSE:AMBUJACEM's ROA % is ranked better than 70.24% of 410
companies
in the Building Materials industry
Industry Median: 2.345
vs NSE:AMBUJACEM: 5.30
Ambuja Cements (NSE:AMBUJACEM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Ambuja Cements ROA % Related Terms
Ambuja Cements ROA % Historical Data
* Premium members only.
The historical data trend for Ambuja Cements's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Ambuja Cements's ROA % distribution charts can be found below:
* The bar in red indicates where Ambuja Cements's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Ambuja Cements (NSE:AMBUJACEM) has a ROA % of 8.17% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ambuja Cements and its competitors. This is 38% above median its historical median of 5.91. Over the past decade, Ambuja Cements' ROA % has ranged from 3.25 to 11.08. According to the industry distribution chart, Ambuja Cements ranks #122 out of 410 companies in the Building Materials industry, placing it in the top 29.8%.
Is Ambuja Cements' ROA % too high?
Ambuja Cements' current ROA % of 8.17% is 38% above median its 10-year median of 5.91. Over the past 10 years, this metric has ranged from a low of 3.25 to a high of 11.08. The Building Materials industry median ROA % is 2.35. Ambuja Cements' value of 8.17% is 248.4% above this industry median. Based on the distribution chart, Ambuja Cements ranks #122 out of 410 companies in the Building Materials industry, which is above the industry midpoint. Overall, Ambuja Cements has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ambuja Cements' ROA % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Ambuja Cements ranks #122 out of 410 companies for ROA %. This puts Ambuja Cements in the upper half of its industry. The industry median ROA % is 2.35. Ambuja Cements' value of 8.17% is 248.4% above this benchmark. Historically, Ambuja Cements' own ROA % has ranged from 3.25 to 11.08 over the past decade. While the company's 10-year median is 5.91 vs. the industry median of 2.35, Ambuja Cements has consistently been above 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 ROA % for a Building Materials company?
The median ROA % among Building Materials companies is 2.35, based on 410 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ambuja Cements's current ROA % of 8.17% is 248.4% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Ambuja Cements and its competitors. For the Building Materials industry, the median ROA % is 2.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambuja Cements's current ROA % is 8.17%, which is 38% above median its own 10-year median of 5.91. 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 (NSE:AMBUJACEM) is currently considered Possible Value Trap. The stock's GF Value™ is ₹648.06, compared to a current price of ₹443.40 — trading 31.6% below its estimated fair value. The current ROA % is 8.17%, which is 38% above median its 10-year median of 5.91 and 248.4% above the Building Materials industry median of 2.35. Ambuja Cements' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Ambuja Cements (NSE:AMBUJACEM), the current ROA % is 8.17% 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 (NSE:AMBUJACEM) Overvalued in 2026?
Based on GuruFocus' analysis, Ambuja Cements stock appears to be undervalued.
The current stock price of ₹443.40 is trading 31.6% below its estimated GF Value™ of ₹648.06.
GuruFocus considers Ambuja Cements to be Possible Value Trap.
Key valuation signals for NSE:AMBUJACEM:
ROA %: 8.17% (38% above median its 10-year median of 5.91)
GF Value™: ₹648.06 vs. price of ₹443.40 (31.6% below fair value)
Industry Position: 248.4% above the Building Materials median (#122 of 410)
No single metric tells the full story. See the NSE:AMBUJACEM 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.
84GF Score
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