Ambica Agarbathies & Aroma Industries Ltd. (AMBICAAGAR) AI Stock Analysis

• Market Cap: ₹433.73M
• Dividend Yield: N/A
• Average Volume (3M): 2.17K
• Price to Earnings (P/E): 87.4
• Beta (1Y): 0.77
• Revenue Growth: 31.28%
• EPS Growth: -85.76%
• Country: IN
• Employees: 354
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Household & Personal Products
• EPS (TTM): 0.66
• Shares Outstanding: 17,177,400
• 10 Day Avg. Volume: 515
• 30 Day Avg. Volume: 2,169
• PEG Ratio: -0.30
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -3.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ₹26.00 ▲(3.34% Upside)

The overall stock score of 52 reflects the company's strong revenue growth but significant challenges in profitability and cash flow, which pose liquidity risks. The technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation, further impacting the stock's attractiveness.

Ambica Agarbathies & Aroma Industries Ltd. Business Overview & Revenue Model

Company Description

Ambica Agarbathies Aroma & Industries Limited manufactures and sells incense sticks in India and internationally. The company operates through, Agarbathies Division and Hotel Division segments. It provides durbar, natural, and herbal bathies; dhoops and cones; pooja oil; champhor; turmeric powder; Kumkum; ghee; and wild honey. The company also operates hotels in Chennai and Vishakapatnam, as well as involved in the construction activities. In addition, it produces and distributes films, as well as owns farmland with resort club house and health center. The company also offers its products online. Ambica Agarbathies Aroma & Industries Limited was founded in 1946 and is based in Chennai, India.

How the Company Makes Money

Ambica Agarbathies & Aroma Industries Ltd. generates revenue through the production and sale of its core product, incense sticks, which are sold under various brand names. The company markets its products through a widespread distribution network that includes retail outlets, online platforms, and possibly direct sales to consumers. Revenue is primarily driven by domestic sales in India, with additional income from exports to international markets. The company may also engage in partnerships or collaborations to expand its product reach and enhance brand visibility, contributing to its overall earnings.

Ambica Agarbathies & Aroma Industries Ltd. Financial Statement Overview

Summary

Ambica Agarbathies & Aroma Industries Ltd. showed strong revenue growth but struggled with profitability, as indicated by low net profit margins and declining free cash flow. The balance sheet reflects moderate leverage, with a stable equity position. However, cash flow challenges in 2025 could pose liquidity risks unless addressed.

Income Statement

The company showed a positive revenue growth rate of 26.3% from 2024 to 2025. The gross profit margin for 2025 was 23.92%, with a net profit margin of just 0.40%, highlighting profitability challenges. EBIT margin was 6.67%, and EBITDA margin was 12.58%, indicating moderate operating efficiency.

Balance Sheet

The debt-to-equity ratio for 2025 was 0.75, indicating a balanced leverage position. Return on equity (ROE) was a low 0.45%, reflecting limited profitability for shareholders. The equity ratio was 48.87%, showing a stable financial structure with a significant portion of the assets financed by equity.

Cash Flow

The company experienced a decline in free cash flow from 2024 to 2025, resulting in negative free cash flow growth. The operating cash flow to net income ratio signals cash flow challenges, with the operating cash flow being negative in 2025, thereby impacting liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.31B	1.24B	978.47M	1.17B	1.16B	1.43B
Gross Profit	247.75M	295.65M	260.88M	102.15M	276.50M	195.85M
EBITDA	158.06M	155.52M	98.85M	134.31M	153.74M	100.84M
Net Income	5.07M	4.89M	-36.62M	25.28M	24.01M	27.36M
Balance Sheet
Total Assets	0.00	2.24B	2.11B	2.04B	2.19B	2.12B
Cash, Cash Equivalents and Short-Term Investments	15.50M	571.73M	14.28M	11.21M	16.24M	25.52M
Total Debt	0.00	822.18M	673.21M	628.24M	635.79M	691.43M
Total Liabilities	-1.09B	1.14B	1.10B	988.69M	1.17B	1.11B
Stockholders Equity	1.09B	1.09B	1.01B	1.05B	1.02B	1.00B
Cash Flow
Free Cash Flow	0.00	-148.79M	13.60M	64.44M	158.03M	39.31M
Operating Cash Flow	0.00	-60.87M	45.22M	83.01M	160.36M	55.17M
Investing Cash Flow	0.00	-86.72M	17.55M	-18.56M	-2.33M	-14.46M
Financing Cash Flow	0.00	148.82M	-59.71M	-69.47M	-167.31M	-48.80M

Ambica Agarbathies & Aroma Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AMBICAAGAR, the sentiment is Negative. The current price of 25.16 is below the 20-day moving average (MA) of 25.41, below the 50-day MA of 26.33, and below the 200-day MA of 28.11, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 55.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AMBICAAGAR.

Ambica Agarbathies & Aroma Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEWIN	72 Outperform	₹709.34M	45.28	―	―	14.90%	-35.93%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
AMBICAAGAR	52 Neutral	₹433.73M	87.39	―	―	31.28%	-85.76%
NORBTEAEXP	50 Neutral	₹693.48M	453.75	―	―	24.23%	―
LAXMICOT	43 Neutral	₹375.71M	261.47	―	―	32.74%	98.83%
SVPGLOB	43 Neutral	₹454.13M	―	―	―	-82.90%	-99.69%