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, continuing a downward trajectory that has spanned multiple trading days. Over the last two sessions, the stock has registered a cumulative return of -3.56%, underperforming its sector by approximately 1.1% on the day of the new low. This decline contrasts with the broader market, where the Sensex opened lower at 85,347.40 points, down 285.28 points (-0.33%), but remains close to its 52-week high of 85,801.70, trading currently at 85,393.92 (-0.28%).
Ambalal Sarabhai Enterprises is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning indicates that the stock has not found short-term or long-term support levels to halt the slide.
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Long-Term Performance and Financial Indicators
Over the past year, Ambalal Sarabhai Enterprises has recorded a return of -47.37%, a stark contrast to the Sensex’s positive 10.67% return over the same period. The stock’s 52-week high was Rs.68, highlighting the extent of the decline from its peak. This performance places the company well below the benchmark indices and many of its sector peers.
Financially, the company’s long-term growth has been modest, with net sales expanding at an annual rate of 7.00% over the last five years. The return on capital employed (ROCE) averaged 4.55%, indicating limited efficiency in generating returns from its capital base. More recently, the ROCE has been reported at 1.5, which, while low, corresponds with an enterprise value to capital employed ratio of 1.5, suggesting the stock is trading at a valuation discount relative to its capital base.
Quarterly and Cash Flow Performance
The company’s quarterly results for September 2025 reveal subdued profitability metrics. Profit before tax (PBT) excluding other income stood at a loss of Rs.1.66 crore, representing a decline of 548.6% compared to the previous four-quarter average. Similarly, the profit after tax (PAT) was a loss of Rs.0.56 crore, down 111.3% relative to the same benchmark. Operating cash flow for the year was negative at Rs.17.62 crore, marking the lowest level recorded in recent periods.
These figures underscore the challenges faced by Ambalal Sarabhai Enterprises in generating positive earnings and cash flow, factors that have likely contributed to the stock’s downward pressure.
Comparative Sector and Market Position
Within the Pharmaceuticals & Biotechnology sector, Ambalal Sarabhai Enterprises has underperformed not only in the last year but also over three years and the past three months when compared to the BSE500 index. Despite this, the company’s profits have shown a rise of 24.8% over the past year, a contrast to the negative stock returns. The price-to-earnings-to-growth (PEG) ratio stands at 0.6, indicating a valuation that may reflect the market’s cautious stance on the company’s growth prospects.
Majority shareholding remains with non-institutional investors, which may influence trading patterns and liquidity considerations.
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Summary of Key Metrics
To summarise, Ambalal Sarabhai Enterprises is currently trading at Rs.29.1, its lowest level in 52 weeks, with a market cap grade of 4. The stock’s recent day change was -1.34%, and it has been on a declining trend for the past two days. The Sensex, in contrast, remains near its yearly highs and trades above its 50-day and 200-day moving averages, reflecting a more positive market environment overall.
The company’s financial indicators reveal subdued profitability and cash flow generation, with a long-term growth rate that has not matched sector averages. While the valuation metrics suggest the stock is trading at a discount relative to capital employed, the overall performance has lagged behind broader market indices and sector peers.
Investors and market participants will note the divergence between the company’s profit growth and stock price performance, a dynamic that has contributed to the current valuation and price levels.
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