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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500009 | NSE: AMBALALSA

Fundamental Analysis of Ambalal Sarabhai Enterprises Ltd

Basic Stock Data

Last Updated: July 18, 2024, 10:21 pm

Market Cap 522 Cr.
Current Price 68.1
High / Low77.7/26.0
Stock P/E92.2
Book Value 17.9
Dividend Yield0.00 %
ROCE7.08 %
ROE4.22 %
Face Value 10.0
PEG Ratio-5.57

Data Source: screener.in

Competitors of Ambalal Sarabhai Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Lincoln Pharmaceuticals Ltd 1,268 Cr. 634755/39313.6 2960.24 %22.5 %17.0 % 10.0
Pharmaids Pharmaceuticals Ltd 172 Cr. 48.879.2/31.8 20.40.00 %27.8 %16.9 % 10.0
Bacil Pharma Ltd 11.7 Cr. 19.829.2/4.68 2.070.00 %4.94 %5.19 % 10.0
Aarey Drugs & Pharmaceuticals Ltd 131 Cr. 51.868.0/30.027.9 52.30.00 %4.44 %3.78 % 10.0
Sanofi India Ltd 14,600 Cr. 6,3457,540/4,20825.7 4422.63 %71.1 %51.5 % 10.0
Industry Average17,192.40 Cr1,334.8246.68211.000.36%17.34%16.56%6.44

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales48.4642.7356.4943.1054.4343.6546.8435.3644.4436.1040.0143.1154.35
Expenses56.5635.4446.6337.1553.0942.9146.1133.7941.0940.0739.0040.5849.70
Operating Profit-8.107.299.865.951.340.740.731.573.35-3.971.012.534.65
OPM %-16.71%17.06%17.45%13.81%2.46%1.70%1.56%4.44%7.54%-11.00%2.52%5.87%8.56%
Other Income25.3122.601.990.658.542.692.383.065.711.372.851.634.79
Interest0.540.590.340.330.450.430.450.560.990.950.920.990.90
Depreciation0.500.560.560.580.620.600.620.610.921.051.141.130.25
Profit before tax16.1728.7410.955.698.812.402.043.467.15-4.601.802.048.29
Tax %3.59%7.45%12.97%38.49%13.96%34.17%50.00%12.72%20.14%-5.87%40.00%34.31%-8.69%
Net Profit15.6026.609.533.507.591.581.023.015.71-4.871.081.339.02
EPS in Rs2.043.471.240.460.990.210.130.390.75-0.640.140.171.18

Last Updated: July 11, 2024, 11:18 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 11, 2024, 12:02 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales100105124132134125150133163197170173
Expenses111112129145137137144136165171162167
Operating Profit-10-7-4-13-3-126-3-22586
OPM %-10%-7%-3%-10%-2%-9%4%-2%-1%13%5%3%
Other Income1621395-22582440331210
Interest91110453343236
Depreciation14351742232234
Profit before tax-16-20-662-1488153354157
Tax %-11%-3%-13%22%-34%84%48%6%10%13%25%15%
Net Profit-18-20-748-1814142947116
EPS in Rs-2.39-2.64-0.876.28-2.380.170.551.833.836.161.490.74
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-11.11%65.00%785.71%-137.50%105.56%300.00%250.00%107.14%62.07%-76.60%-45.45%
Change in YoY Net Profit Growth (%)0.00%76.11%720.71%-923.21%243.06%194.44%-50.00%-142.86%-45.07%-138.66%31.14%

Growth

Compounded Sales Growth
10 Years:5%
5 Years:3%
3 Years:2%
TTM:2%
Compounded Profit Growth
10 Years:9%
5 Years:6%
3 Years:-22%
TTM:-51%
Stock Price CAGR
10 Years:32%
5 Years:42%
3 Years:29%
1 Year:139%
Return on Equity
10 Years:%
5 Years:17%
3 Years:15%
Last Year:4%

Last Updated: July 17, 2024, 2:20 pm

Balance Sheet

Last Updated: July 11, 2024, 12:02 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital777777777777777777777777
Reserves-59-79-86-38-51-50-46-32-3435460
Borrowings394246474243403128274546
Other Liabilities1101281329493128144111108847067
Total Liabilities167167169180160197214186210231246250
Fixed Assets989491727259585757588588
CWIP001931424011240
Investments11185591827333230
Other Assets6771769280119123110125128125133
Total Assets167167169180160197214186210231246250

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -311-8-755-719-7-21165
Cash from Investing Activity -0-11080-318-917105-17-1
Cash from Financing Activity 3-8-1-3-6-2-6-14-6-199-3
Net Cash Flow-1212-483-42-3-21

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-49.00-49.00-50.00-60.00-45.00-55.00-34.00-34.00-30.00-2.00-37.00-40.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days90101957483791008479875258
Inventory Days869295867266756176584862
Days Payable236142178139135138207191184184151131
Cash Conversion Cycle-60511222206-32-46-29-39-50-11
Working Capital Days-226-161-219-204-47-89-98-120-74-371835
ROCE %-17%-14%-16%-19%-44%-1%-5%16%25%18%34%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters30.76%30.76%30.76%30.76%30.76%30.76%30.77%30.77%30.78%30.78%30.78%30.78%
DIIs0.01%0.01%0.01%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public69.24%69.24%69.24%69.24%69.24%69.23%69.23%69.22%69.22%69.23%69.21%69.23%
No. of Shareholders1,90,3541,85,7491,82,9461,81,2131,81,5891,80,1991,79,4041,78,2741,77,7431,75,2221,71,9441,70,079

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.101.456.163.831.83
Diluted EPS (Rs.)0.831.456.163.831.83
Cash EPS (Rs.)1.561.945.632.962.35
Book Value[Excl.RevalReserv]/Share (Rs.)17.9017.0915.649.645.84
Book Value[Incl.RevalReserv]/Share (Rs.)17.9017.0915.649.645.84
Revenue From Operations / Share (Rs.)22.6522.2225.6721.3517.42
PBDIT / Share (Rs.)2.182.758.733.762.90
PBIT / Share (Rs.)1.712.398.433.442.56
PBT / Share (Rs.)1.222.076.233.062.13
Net Profit / Share (Rs.)1.101.585.322.642.01
NP After MI And SOA / Share (Rs.)0.831.456.163.831.83
PBDIT Margin (%)9.6112.3634.0017.5916.62
PBIT Margin (%)7.5510.7432.8216.1114.70
PBT Margin (%)5.399.3124.2814.3112.21
Net Profit Margin (%)4.837.1320.7312.3611.56
NP After MI And SOA Margin (%)3.696.5123.9917.9310.53
Return on Networth / Equity (%)4.678.4739.3939.7231.41
Return on Capital Employeed (%)8.8612.1551.6532.3637.05
Return On Assets (%)2.564.5120.4813.977.54
Long Term Debt / Equity (X)0.060.130.020.070.10
Total Debt / Equity (X)0.320.300.210.350.63
Asset Turnover Ratio (%)0.690.710.000.000.00
Current Ratio (X)1.161.231.140.930.77
Quick Ratio (X)1.001.040.990.810.65
Inventory Turnover Ratio (X)0.900.800.000.000.00
Interest Coverage Ratio (X)4.448.6439.349.766.68
Interest Coverage Ratio (Post Tax) (X)3.235.9833.887.865.65
Enterprise Value (Cr.)360.72169.24264.81129.80152.65
EV / Net Operating Revenue (X)2.080.991.350.791.14
EV / EBITDA (X)21.618.043.964.516.88
MarketCap / Net Operating Revenue (X)2.010.921.360.821.09
Price / BV (X)2.541.202.231.833.26
Price / Net Operating Revenue (X)2.010.921.360.821.09
EarningsYield0.010.070.170.210.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 71.04

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.

Undervalued: 4.32% compared to the current price 68.1

Intrinsic Value: 59.27

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 12.96% compared to the current price 68.1

Last 5 Year EPS CAGR: -16.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -101.83, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -13.00, which is a positive sign.
  3. The company has shown consistent growth in sales (142.17 cr) and profit (12.17 cr) over the years.
  1. The stock has a low average ROCE of -1.00%, which may not be favorable.
  2. The company has higher borrowings (39.67) compared to reserves (-23.92), which may suggest financial risk.

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 Ambalal Sarabhai Enterprises Ltd:
    1. Net Profit Margin: 4.83%
      • 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: 8.86% (Industry Average ROCE: %)
      • 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%: 4.67% (Industry Average ROE: %)
      • 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): 3.23
      • 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: 1.00
      • 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: 92.2 (Industry average Stock P/E: )
      • 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

Ambalal Sarabhai Enterprises Ltd. is a Public Limited Listed company incorporated on 05/06/1978 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L52100GJ1978PLC003159 and registration number is 003159. Currently company belongs to the Industry of Pharmaceuticals. Company’s Total Operating Revenue is Rs. 0.13 Cr. and Equity Capital is Rs. 76.63 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsShanti Sadan, Mirzapur Road, Ahmedabad Gujarat 380001dsejpal@ase.life
http://www.ase.life
Management
NamePosition Held
Mr. Kartikeya V SarabhaiExecutive Chairman
Mr. Mohal K SarabhaiManaging Director
Ms. Chaula M ShastriWhole Time Director
Dr. Pushpa RobinIndependent Director
Mr. Mayur K SwadiaIndependent Director
Mr. Satyen DaveIndependent Director
Mr. Brijesh KhandelwalIndependent Director
Mr. Govindprasad NamdeoIndependent Director
Mr. Ajay MayorNominee Director
Mr. Bharatendu JaniNominee Director

FAQ

What is the latest fair value of Ambalal Sarabhai Enterprises Ltd?

The latest fair value of Ambalal Sarabhai Enterprises Ltd is ₹71.04.

What is the Market Cap of Ambalal Sarabhai Enterprises Ltd?

The Market Cap of Ambalal Sarabhai Enterprises Ltd is 522 Cr..

What is the current Stock Price of Ambalal Sarabhai Enterprises Ltd as on 19 July 2024?

The current stock price of Ambalal Sarabhai Enterprises Ltd as on 19 July 2024 is 68.1.

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

In FY 2024, the High / Low of Ambalal Sarabhai Enterprises Ltd stocks is 77.7/26.0.

What is the Stock P/E of Ambalal Sarabhai Enterprises Ltd?

The Stock P/E of Ambalal Sarabhai Enterprises Ltd is 92.2.

What is the Book Value of Ambalal Sarabhai Enterprises Ltd?

The Book Value of Ambalal Sarabhai Enterprises Ltd is 17.9.

What is the Dividend Yield of Ambalal Sarabhai Enterprises Ltd?

The Dividend Yield of Ambalal Sarabhai Enterprises Ltd is 0.00 %.

What is the ROCE of Ambalal Sarabhai Enterprises Ltd?

The ROCE of Ambalal Sarabhai Enterprises Ltd is 7.08 %.

What is the ROE of Ambalal Sarabhai Enterprises Ltd?

The ROE of Ambalal Sarabhai Enterprises Ltd is 4.22 %.

What is the Face Value of Ambalal Sarabhai Enterprises Ltd?

The Face Value of Ambalal Sarabhai Enterprises Ltd is 10.0.

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 Ambalal Sarabhai 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