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

• Market Cap: ₹465.68M
• Dividend Yield: N/A
• Average Volume (3M): 26.28K
• Price to Earnings (P/E): 91.9
• Beta (1Y): 0.78
• 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: 2,752
• 30 Day Avg. Volume: 26,282
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹28.00
• Price Target Upside: 3.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹28.00 ▲(3.28% Upside)

The overall stock score of 54 reflects significant challenges in profitability and valuation. The high P/E ratio suggests overvaluation, while technical indicators point to a bearish trend. Despite strong revenue growth, liquidity risks due to cash flow challenges further weigh down the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's products and effective market penetration, supporting long-term business expansion.

Market Position

The company's focus on incense sticks within the FMCG sector positions it well in a niche market, potentially allowing for sustained competitive advantage and brand loyalty.

Stable Equity Position

A stable equity position indicates financial resilience, providing the company with a solid foundation to weather economic fluctuations and invest in growth opportunities.

Negative Factors

Profitability Challenges

Low net profit margins suggest difficulties in converting revenue into profit, which could hinder reinvestment capabilities and long-term financial health.

Cash Flow Challenges

Negative operating cash flow indicates potential liquidity issues, which could limit the company's ability to fund operations and strategic initiatives without external financing.

Declining Free Cash Flow

A decline in free cash flow suggests reduced financial flexibility, potentially restricting the company's capacity to invest in growth or return value to shareholders.

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

Company Description

Ambica Agarbathies & Aroma Industries Ltd. (AMBICAAGAR) is an Indian company primarily engaged in the manufacturing and sale of incense sticks, commonly known as agarbathies. The company operates within the fast-moving consumer goods (FMCG) sector, with a focus on providing aromatic products that cater to both domestic and international markets. In addition to incense sticks, the company may be involved in the production of related fragrance products.

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 2023	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	929.12M	1.24B	1.17B	978.47M	1.43B	1.16B
Gross Profit	148.16M	295.65M	102.15M	260.88M	195.85M	276.50M
EBITDA	137.96M	155.52M	81.81M	98.85M	100.84M	143.31M
Net Income	15.23M	4.89M	25.28M	-36.62M	27.36M	24.01M
Balance Sheet
Total Assets	0.00	2.24B	2.04B	2.11B	2.12B	2.19B
Cash, Cash Equivalents and Short-Term Investments	16.34M	571.73M	428.04M	14.28M	25.52M	16.24M
Total Debt	0.00	822.18M	628.24M	673.21M	691.43M	635.79M
Total Liabilities	-1.04B	1.14B	988.69M	1.10B	1.11B	1.17B
Stockholders Equity	1.04B	1.09B	1.05B	1.01B	1.00B	1.02B
Cash Flow
Free Cash Flow	0.00	-148.79M	64.44M	13.60M	39.31M	158.03M
Operating Cash Flow	0.00	-60.87M	83.01M	45.22M	55.17M	160.36M
Investing Cash Flow	0.00	-86.72M	-18.56M	17.55M	-14.46M	-2.33M
Financing Cash Flow	0.00	148.82M	-69.47M	-59.71M	-48.80M	-167.31M

Ambica Agarbathies & Aroma Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.11
• 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 Positive. The current price of 27.11 is above the 20-day moving average (MA) of 27.00, below the 50-day MA of 27.54, and below the 200-day MA of 28.83, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	66 Neutral	₹502.87M	31.16		―	14.90%	-35.93%
Sector *	57 Neutral	$3.22B	9.48	-34.32%	3.07%	-25.56%	-353.61%
AMBICAAGAR	54 Neutral	₹465.68M	91.93		―	31.28%	-85.76%
KGDENIM	―	₹545.57M	―		―	―	―
NORBTEAEXP	45 Neutral	₹585.45M	390.66		―	24.23%	―
LAXMICOT	45 Neutral	₹423.38M	261.47		―	32.74%	98.43%
SVPGLOB	42 Neutral	₹442.75M	―		―	-82.90%	-99.69%