Check Before You Invest : Ambalal Sarabhai Enterprises Ltd

Q: Which industry/sub-sector does Ambalal Sarabhai Enterprises Ltd belong to?

Ambalal Sarabhai Enterprises Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q: Is Ambalal Sarabhai Enterprises Ltd a good quality company?

Ambalal Sarabhai Enterprises Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Ambalal Sarabhai Enterprises Ltd undervalued or overvalued?

Ambalal Sarabhai Enterprises Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 74.18, Historic Median: 53.43. Price to Book, Current: 4.4, Historic Median: 5.96. Price to Sales, Current: 60.24, Historic Median: 68.75. EV to EBITDA, Current: 30.64, Historic Median: 30.08

Q: Is Ambalal Sarabhai Enterprises Ltd a good buy now?

Ambalal Sarabhai Enterprises Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd revenue growth is 6% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q: Gross Profit margin of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 188.8% for FY-2025, which is above its 5-year median of 142.2%, indicating increasing margins.

Q: Operating Profit Margin of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -180.81% for FY-2025, which is in line with its 5-year median of -180.81% indicating stable margins.

Q: Net Profit Margin of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Net Profit Margin is 204.04% for FY-2025, is above its 5-year median of 110.9%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 188.8, Historic Median: 142.2. Operating Profit Margin (%), Current: -180.81, Historic Median: -180.81. Net Profit Margin (%), Current: 204.04, Historic Median: 110.9

Q: Return on Asset of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Return on Asset is 10.16%, which is above its 5-year historical median of 3.3%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Return on capital employed is 15.82% for FY-2025, which is above its 5-year historical median of 8.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Ambalal Sarabhai Enterprises Ltd

Snapshot

Q.1 Which industry/sub-sector does Ambalal Sarabhai Enterprises Ltd belong to?

Ambalal Sarabhai Enterprises Ltd belongs to the Healthcare sector, operating specifically within the Pharmaceuticals & Drugs segment.

Q.2 Is Ambalal Sarabhai Enterprises Ltd a good quality company?

Ambalal Sarabhai Enterprises Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ambalal Sarabhai Enterprises Ltd undervalued or overvalued?

Ambalal Sarabhai Enterprises Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	74.18	53.43
Price to Book	4.4	5.96
Price to Sales	60.24	68.75
EV to EBITDA	30.64	30.08

Q.4 Is Ambalal Sarabhai Enterprises Ltd a good buy now?

Ambalal Sarabhai Enterprises Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd revenue growth is 6% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Gross Profit margin of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 188.8% for FY-2025, which is above its 5-year median of 142.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -180.81% for FY-2025, which is in line with its 5-year median of -180.81% indicating stable margins.

Q.4 Net Profit Margin of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Net Profit Margin is 204.04% for FY-2025, is above its 5-year median of 110.9%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	188.8	142.2
Operating Profit Margin (%)	-180.81	-180.81
Net Profit Margin (%)	204.04	110.9

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Return on Asset is 10.16%, which is above its 5-year historical median of 3.3%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Return on capital employed is 15.82% for FY-2025, which is above its 5-year historical median of 8.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Return on equity is 18.57% for FY-2025, which is above its 5-year historical median of 9.17%, indicating the business is making better use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Debt-to-Equity ratio is 0.16, which is above the industry average of 0.14, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Ambalal Sarabhai Enterprises Ltd?

Ambalal Sarabhai Enterprises Ltd Debt to cash flow from operations is -1.88, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ambalal Sarabhai Enterprises Ltd?

Q.1 Promoter shareholding and pledge status of Ambalal Sarabhai Enterprises Ltd?

Promoters hold 31.36% of the Ambalal Sarabhai Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ambalal Sarabhai Enterprises Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ambalal Sarabhai Enterprises Ltd vs industry peers?

Ambalal Sarabhai Enterprises Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 5.35%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	6	5.4
Gross Profit Growth (%)	700	14
Operating Profit Growth (%)	0	11.5
Net Profit Growth (%)	166.7	12

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.05	0.79
ROE (%)	18.57	9.17
ROCE (%)	15.82	11.52
Cash Conversion Cycle (days)	-859.19	76

Valuation & price assessment

Q.1 Stock return of Ambalal Sarabhai Enterprises Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	14.1%	-7.5%	14.8%	-13.8%

Q.2 Valuation ratios of Ambalal Sarabhai Enterprises Ltd vs historical?

The current P/E ratio of 74.18 is higher than its historical median of 53.43, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	74.18	53.43	31.09
Price to Book	4.4	5.96	2.85
Price to Sales	60.24	68.75	2.82
EV to EBITDA	30.64	30.08	15.99

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Check Before You Invest : Ambalal Sarabhai Enterprises Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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