Ambuja CementsFRA:GJA -37.70%65 Altman Z-Score is 2.31 as of Jul. 07, 2026, which is 49% below its 10-year median of 4.53. 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 403 Building Materials companies, Ambuja Cements ranks better than 81.14% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 4.6 is strong.
Ambuja Cements has a Altman Z-Score of 2.31, indicating it is in Grey Zones. This implies that Ambuja Cements is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Ambuja Cements's Altman Z-Score or its related term are showing as below:
FRA:GJA'
s Altman Z-Score Range Over the Past 10 Years
Min: 3.11 Med: 4.53 Max: 8.18
Current: 4.6
During the past 13 years, Ambuja Cements's highest Altman Z-Score was 8.18. The lowest was 3.11. And the median was 4.53.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Ambuja Cements Altman Z-Score Related Terms
Ambuja Cements Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Ambuja Cements's Altman Z-Score 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Ambuja Cements's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Ambuja Cements's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Ambuja Cements's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.0069
+
1.4
*
0.2108
+
3.3
*
0.039
+
0.6
*
2.357
+
1.0
*
0.4665
=
2.31
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Ambuja Cements (FRA:GJA) has a Altman Z-Score of 2.31 as of Jul. 07, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Ambuja Cements and its competitors. This is 49% below median its historical median of 4.53. Over the past decade, Ambuja Cements' Altman Z-Score has ranged from 3.11 to 8.18. According to the industry distribution chart, Ambuja Cements ranks #76 out of 403 companies in the Building Materials industry, placing it in the top 18.9%.
Is Ambuja Cements' Altman Z-Score too high?
Ambuja Cements' current Altman Z-Score of 2.31 is 49% below median its 10-year median of 4.53. Over the past 10 years, this metric has ranged from a low of 3.11 to a high of 8.18. The Building Materials industry median Altman Z-Score is 2.24. Ambuja Cements' value of 2.31 is 3.1% above this industry median. Based on the distribution chart, Ambuja Cements ranks #76 out of 403 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. 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' Altman Z-Score compare to ?
According to the Building Materials industry distribution chart, Ambuja Cements ranks #76 out of 403 companies for Altman Z-Score. This places Ambuja Cements in the top 19% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.24. Ambuja Cements' value of 2.31 is 3.1% above this benchmark. Historically, Ambuja Cements' own Altman Z-Score has ranged from 3.11 to 8.18 over the past decade. While the company's 10-year median is 4.53 vs. the industry median of 2.24, 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 Altman Z-Score for a Building Materials company?
The median Altman Z-Score among Building Materials companies is 2.24, based on 403 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ambuja Cements's current Altman Z-Score of 2.31 is 3.1% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Ambuja Cements and its competitors. For the Building Materials industry, the median Altman Z-Score is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambuja Cements's current Altman Z-Score is 2.31, which is 49% below median its own 10-year median of 4.53. 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 Altman Z-Score is 2.31, which is 49% below median its 10-year median of 4.53 and 3.1% above the Building Materials industry median of 2.24. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Ambuja Cements (FRA:GJA), the current Altman Z-Score is 2.31 as of Jul. 07, 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:
Altman Z-Score: 2.31 (49% below median its 10-year median of 4.53)
GF Value™: €2.27 vs. price of €1.57 (30.8% below fair value)
Industry Position: 3.1% above the Building Materials median (#76 of 403)
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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