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Check Before You Invest : Ambalal Sarabhai Enterprises Ltd

BSE: 500009 NSE: AMBASARABH ISIN: INE432A01017
  |   Sector:  Healthcare   |   Industry:  Pharmaceuticals & Drugs

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 10 year financial track record.
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.
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

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 0% , 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 24.7% , 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 below its 5 year median of -139.11% indicating decreasing 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 with its 5 year median of 110.9%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 188.8 24.7
Operating Profit Margin -180.81 -139.11
Net Profit Margin 204.04 110.9
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 Equity (ROE) of Ambalal Sarabhai Enterprises Ltd?
Ambalal Sarabhai Enterprises Ltd Return on equity is 18.57% for FY-2025 , which is above its historical median of 9.17%, indicating the business is making better use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Ambalal Sarabhai Enterprises Ltd?
Ambalal Sarabhai Enterprises Ltd Cash conversion cycle is -859 days, above its historical median of -904 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.05 0.05
ROE 18.57 9.17
ROCE 15.82 8.67
Cash Conversion Cycle -859 days -904 days
Q.9 Debt to Equity ratio of Ambalal Sarabhai Enterprises Ltd?
Ambalal Sarabhai Enterprises Ltd Debt-to-Equity ratio is 0.16 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 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

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)

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 5.54% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 4 137.1
Gross Profit 7.6 15.1
Operating Profit -7 16
Net Profit 8 5.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.05 0.8
ROE 18.57 8.91
ROCE 15.82 11.59
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 14.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.8% 9.8% 13.9% -17.3%
Q.3 Valuation ratios of Ambalal Sarabhai Enterprises Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 65.59 11.23 40.28
Price to Book 3.89 4.18 2.77
Price to Sales 53.27 0.00 2.65
EV to EBITDA 27.17 10.64 15.67

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