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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 539196 | NSE: AEL

Amba Enterprises Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:06 pm

Market Cap 262 Cr.
Current Price 207
High / Low264/88.9
Stock P/E38.3
Book Value 30.7
Dividend Yield0.24 %
ROCE21.6 %
ROE18.7 %
Face Value 5.00
PEG Ratio1.50

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Amba Enterprises Ltd

Competitors of Amba Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Evans Electric Ltd 78.7 Cr. 287504/16127.8 74.61.05 %36.4 %28.0 % 10.0
Epic Energy Ltd 76.5 Cr. 106106/5.97102 10.00.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 222 Cr. 60.299.8/42.425.1 25.50.00 %23.6 %15.4 % 10.0
Cospower Engineering Ltd 98.2 Cr. 654740/200109 49.80.00 %8.12 %1.54 % 10.0
Continental Controls Ltd 6.76 Cr. 11.018.5/5.80338 3.430.00 %7.82 %14.0 % 10.0
Industry Average16,768.94 Cr634.58134.9073.180.12%16.28%19.86%6.12

All Competitor Stocks of Amba Enterprises Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales40.8551.3867.4159.8854.0849.3248.0566.6879.2264.2261.1477.5585.83
Expenses39.0349.0464.5257.7152.3848.0046.6764.2377.3361.6059.2475.1883.12
Operating Profit1.822.342.892.171.701.321.382.451.892.621.902.372.71
OPM %4.46%4.55%4.29%3.62%3.14%2.68%2.87%3.67%2.39%4.08%3.11%3.06%3.16%
Other Income0.000.070.230.090.160.020.160.010.040.160.060.390.08
Interest0.160.150.140.080.26-0.150.030.070.070.010.050.110.14
Depreciation0.070.100.200.140.150.150.150.150.150.150.150.150.15
Profit before tax1.592.162.782.041.451.341.362.241.712.621.762.502.50
Tax %33.96%24.07%30.94%12.25%34.48%15.67%31.62%23.66%31.58%25.57%23.86%31.60%29.60%
Net Profit1.051.641.921.790.951.140.931.711.181.941.341.701.76
EPS in Rs0.831.301.521.410.750.900.731.350.931.531.061.341.39

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales86814487389101111220218282289
Expenses8681447718798108210211273279
Operating Profit00011222397910
OPM %4%4%3%4%3%3%2%2%3%4%3%3%3%
Other Income0111010010011
Interest0000001011000
Depreciation0000000001111
Profit before tax1111222239699
Tax %45%32%20%27%33%28%27%29%28%25%26%28%
Net Profit0011111126567
EPS in Rs0.290.370.720.640.811.100.881.071.715.063.744.875.32
Dividend Payout %0%0%0%0%18%14%17%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%0.00%0.00%0.00%0.00%100.00%200.00%-16.67%20.00%
Change in YoY Net Profit Growth (%)0.00%0.00%0.00%0.00%0.00%100.00%100.00%-216.67%36.67%

Amba Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:46%
5 Years:26%
3 Years:37%
TTM:21%
Compounded Profit Growth
10 Years:29%
5 Years:41%
3 Years:42%
TTM:19%
Stock Price CAGR
10 Years:%
5 Years:80%
3 Years:94%
1 Year:125%
Return on Equity
10 Years:14%
5 Years:18%
3 Years:21%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:54 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital5555666666666
Reserves66788910111319242933
Borrowings00003512254123
Other Liabilities32223415226111539
Total Liabilities15131415202433212436456281
Fixed Assets0010123333222
CWIP0000010000001
Investments1111000000000
Other Assets14121314192130182133436078
Total Assets15131415202433212436456281

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +00-1-6-608-33-71-6
Cash from Investing Activity +00100-1-0-01100
Cash from Financing Activity +00-0262-8002-27
Net Cash Flow00-1-301-0-34-5-11

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.000.000.001.00-2.00-3.001.000.001.004.003.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days10410212212710477824233385161
Inventory Days17721614168815767843
Days Payable783994522018626691818
Cash Conversion Cycle2032801691429274284234373645
Working Capital Days1312982992019575294334404554
ROCE %6%6%5%8%11%13%11%12%17%35%20%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters41.91%41.91%41.91%41.91%41.91%43.01%43.01%43.01%43.01%43.01%43.01%43.01%
Public58.09%58.09%58.09%58.09%58.10%56.99%56.99%56.98%56.99%56.99%56.99%56.98%
No. of Shareholders2,3173,2404,9975,4705,5595,6535,5265,7106,1556,7439,6799,286

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)4.873.735.051.711.08
Diluted EPS (Rs.)4.873.735.051.711.08
Cash EPS (Rs.)5.354.215.461.991.35
Book Value[Excl.RevalReserv]/Share (Rs.)28.2123.6420.2015.1413.54
Book Value[Incl.RevalReserv]/Share (Rs.)28.2123.6420.2015.1413.54
Dividend / Share (Rs.)0.500.300.300.000.00
Revenue From Operations / Share (Rs.)222.85172.29173.3987.6079.56
PBDIT / Share (Rs.)7.455.707.593.082.06
PBIT / Share (Rs.)6.965.227.192.801.78
PBT / Share (Rs.)6.775.056.782.381.51
Net Profit / Share (Rs.)4.873.735.051.711.08
PBDIT Margin (%)3.343.304.373.512.58
PBIT Margin (%)3.123.034.143.192.24
PBT Margin (%)3.042.933.902.711.89
Net Profit Margin (%)2.182.162.911.951.35
Return on Networth / Equity (%)17.2615.7925.0211.297.94
Return on Capital Employeed (%)24.5021.6734.1317.9512.73
Return On Assets (%)9.9110.8817.608.876.35
Long Term Debt / Equity (X)0.000.010.030.010.02
Total Debt / Equity (X)0.320.110.190.110.11
Asset Turnover Ratio (%)5.345.477.234.843.73
Current Ratio (X)2.202.813.224.214.34
Quick Ratio (X)2.122.632.763.773.93
Inventory Turnover Ratio (X)2.400.942.652.901.78
Dividend Payout Ratio (NP) (%)6.158.030.000.000.00
Dividend Payout Ratio (CP) (%)5.607.120.000.000.00
Earning Retention Ratio (%)93.8591.970.000.000.00
Cash Earning Retention Ratio (%)94.4092.880.000.000.00
Interest Coverage Ratio (X)39.1833.4618.407.357.51
Interest Coverage Ratio (Post Tax) (X)26.6222.9313.255.084.93
Enterprise Value (Cr.)164.6961.3071.4611.2215.16
EV / Net Operating Revenue (X)0.580.280.320.100.15
EV / EBITDA (X)17.468.507.442.885.82
MarketCap / Net Operating Revenue (X)0.540.260.310.130.15
Retention Ratios (%)93.8491.960.000.000.00
Price / BV (X)4.341.952.730.800.88
Price / Net Operating Revenue (X)0.540.260.310.130.15
EarningsYield0.030.080.090.140.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Amba Enterprises Ltd as of November 22, 2024 is: 220.40

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Amba Enterprises Ltd is Undervalued by 6.47% compared to the current share price 207.00

Intrinsic Value of Amba Enterprises Ltd as of November 22, 2024 is: 276.56

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Amba Enterprises Ltd is Undervalued by 33.60% compared to the current share price 207.00

Last 5 Year EPS CAGR: 25.48%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (14.08 cr) compared to borrowings (2.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (112.85 cr) and profit (3.69 cr) over the years.
  1. The stock has a low average ROCE of 13.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 112.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 98.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Amba Enterprises Ltd:
    1. Net Profit Margin: 2.18%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 24.5% (Industry Average ROCE: 15.63%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.26% (Industry Average ROE: 19.07%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 26.62
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.12
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 38.3 (Industry average Stock P/E: 118.72)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.32
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Amba Enterprises Ltd. is a Public Limited Listed company incorporated on 01/06/1992 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999PN1992PLC198612 and registration number is 067004. Currently company belongs to the Industry of Electric Equipment - General. Company’s Total Operating Revenue is Rs. 219.52 Cr. and Equity Capital is Rs. 6.33 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - GeneralS. No. 132, H No. 1/4/1, Premraj Industrial Estate, Pune Maharashtra 411041ambaltd@gmail.com
http://www.ambaltd.com
Management
NamePosition Held
Mr. Ketan MehtaManaging Director
Mrs. Sarika BhiseExecutive Director & CFO
Mrs. Dhruvi SanghviInd. Non-Executive Director
Mr. Dhirendra MehtaInd. Non-Executive Director
Mr. Atul ThakkarInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Amba Enterprises Ltd?

The latest intrinsic value of Amba Enterprises Ltd as on 22 November 2024 is ₹220.40, which is 6.47% higher than the current market price of ₹207.00.

What is the Market Cap of Amba Enterprises Ltd?

The Market Cap of Amba Enterprises Ltd is 262 Cr..

What is the current Stock Price of Amba Enterprises Ltd as on 22 November 2024?

The current stock price of Amba Enterprises Ltd as on 22 November 2024 is ₹207.

What is the High / Low of Amba Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Amba Enterprises Ltd stocks is 264/88.9.

What is the Stock P/E of Amba Enterprises Ltd?

The Stock P/E of Amba Enterprises Ltd is 38.3.

What is the Book Value of Amba Enterprises Ltd?

The Book Value of Amba Enterprises Ltd is 30.7.

What is the Dividend Yield of Amba Enterprises Ltd?

The Dividend Yield of Amba Enterprises Ltd is 0.24 %.

What is the ROCE of Amba Enterprises Ltd?

The ROCE of Amba Enterprises Ltd is 21.6 %.

What is the ROE of Amba Enterprises Ltd?

The ROE of Amba Enterprises Ltd is 18.7 %.

What is the Face Value of Amba Enterprises Ltd?

The Face Value of Amba Enterprises Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Amba Enterprises Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE