Recent Price Movement and Market Context
On 21 Nov 2025, Ambalal Sarabhai Enterprises recorded its lowest price in the past year at Rs.29.1. This level represents a notable drop from its 52-week high of Rs.68, reflecting a decline of over 57%. The stock has been on a downward trajectory for the last two trading sessions, with a cumulative return of -3.56% during this period. Today’s performance also showed the stock underperforming its sector by 1.1%, indicating relative weakness compared to its Pharmaceuticals & Biotechnology peers.
Technical indicators reveal that the stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests sustained downward momentum over both short and long-term horizons.
In contrast, the broader market benchmark, the Sensex, opened lower at 85,347.40, down 285.28 points (-0.33%), and was trading at 85,393.92 (-0.28%) during the same session. The Sensex remains close to its 52-week high of 85,801.70, just 0.48% away, and is supported by bullish moving averages with the 50-day DMA above the 200-day DMA. This divergence highlights the relative underperformance of Ambalal Sarabhai Enterprises compared to the overall market.
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Financial Performance and Growth Trends
Ambalal Sarabhai Enterprises has exhibited subdued financial results over recent periods. The company’s Profit Before Tax (PBT) for the quarter ending September 2025 stood at a loss of Rs.1.66 crore, representing a decline of 548.6% compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) for the same quarter was a loss of Rs.0.56 crore, down 111.3% relative to the prior four-quarter average.
Operating cash flow for the year was recorded at a negative Rs.17.62 crore, marking the lowest level in recent years. These figures underscore challenges in generating positive earnings and cash flows in the near term.
Over the last five years, the company’s net sales have grown at an annual rate of 7.00%, which is modest within the Pharmaceuticals & Biotechnology sector. The average Return on Capital Employed (ROCE) has been 4.55%, indicating limited efficiency in generating returns from capital investments.
In terms of stock performance, Ambalal Sarabhai Enterprises has delivered a return of -47.37% over the past year, contrasting with the Sensex’s gain of 10.67% during the same timeframe. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in market valuation relative to broader benchmarks.
Valuation and Shareholding Structure
Despite the recent price decline, the stock’s valuation metrics suggest some degree of attractiveness. The company’s ROCE currently stands at 1.5, and it has an Enterprise Value to Capital Employed ratio of 1.5, which is lower than the average historical valuations of its peers. This indicates that the stock is trading at a discount relative to comparable companies in the sector.
Interestingly, while the stock price has fallen by nearly 47% over the past year, the company’s profits have risen by 24.8% during the same period. The Price/Earnings to Growth (PEG) ratio is 0.6, which may reflect a valuation that factors in the company’s profit growth relative to its price movement.
The majority of the company’s shares are held by non-institutional investors, which may influence trading patterns and liquidity considerations.
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Summary of Key Concerns
The stock’s fall to Rs.29.1, its lowest level in 52 weeks, reflects a combination of factors including weak quarterly earnings, negative cash flow, and underwhelming long-term growth rates. The company’s financial metrics point to limited capital efficiency and subdued sales growth, which have contributed to its underperformance relative to the broader market and sector indices.
Technical indicators reinforce the bearish trend, with the stock trading below all major moving averages and underperforming its sector peers. Meanwhile, the broader market continues to show resilience, with the Sensex near its 52-week high and supported by positive moving average trends.
While valuation metrics suggest the stock is trading at a discount compared to peers, the recent financial results and price action highlight ongoing challenges for Ambalal Sarabhai Enterprises within the Pharmaceuticals & Biotechnology sector.
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