Recent Price Movement and Market Context
On 28 Nov 2025, Ambalal Sarabhai Enterprises’ stock price touched Rs.28.26, the lowest level recorded in the past year. This price point represents a substantial drop from its 52-week high of Rs.68, indicating a decline of nearly 58.4% over the period. The stock has experienced a consecutive three-day decline, with a cumulative return of -2.84% during this short span. Today’s trading session saw the stock underperform its sector by 2.49%, signalling relative weakness within the Pharmaceuticals & Biotechnology sector.
In contrast, the broader market index, the Sensex, opened flat and is currently trading at 85,706.67, just 0.41% below its 52-week high of 86,055.86. The Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, suggesting a generally bullish trend for the market overall. This divergence highlights the specific challenges faced by Ambalal Sarabhai Enterprises compared to the broader market’s resilience.
Technical Indicators and Moving Averages
Technical analysis reveals that Ambalal Sarabhai Enterprises is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent positioning below short- and long-term moving averages often reflects sustained downward momentum and can be interpreted as a sign of ongoing market caution towards the stock. Such technical signals may influence trading behaviour and contribute to the stock’s continued pressure.
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Financial Performance and Profitability Trends
Ambalal Sarabhai Enterprises’ financial results have shown subdued performance in recent quarters. The Profit Before Tax (PBT) excluding other income for the quarter ending September 2025 was reported 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 period was a loss of Rs.0.56 crore, down by 111.3% relative to the prior four-quarter average.
Operating cash flow for the year stands at a negative Rs.17.62 crore, marking the lowest level recorded. These figures indicate challenges in generating positive earnings and cash flows, which are critical for sustaining business operations and funding growth initiatives.
Long-Term Growth and Return Metrics
Over the past five years, the company’s net sales have grown at an annual rate of 7.00%, a modest pace within the Pharmaceuticals & Biotechnology sector. The Return on Capital Employed (ROCE) averaged 4.55% over the long term, reflecting limited efficiency in generating returns from the capital invested in the business. More recently, the ROCE has been reported at 1.5%, which, while low, corresponds with an enterprise value to capital employed ratio of 1.4, suggesting the stock is trading at a valuation discount relative to its capital base.
Despite the subdued stock performance, the company’s profits have shown a rise of 24.8% over the past year. The Price/Earnings to Growth (PEG) ratio stands at 0.5, indicating that earnings growth relative to valuation is modest. However, the stock’s total return over the last year is negative at -51.96%, significantly underperforming the Sensex, which has recorded an 8.43% return over the same period.
Shareholding and Market Capitalisation
The majority of Ambalal Sarabhai Enterprises’ shares are held by non-institutional investors. The company’s market capitalisation grade is rated at 4, reflecting its size and market presence within the Pharmaceuticals & Biotechnology sector. This positioning may influence liquidity and trading dynamics in the stock.
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Comparative Performance and Sector Positioning
Ambalal Sarabhai Enterprises has underperformed not only the Sensex but also the BSE500 index over multiple time frames, including the last three years, one year, and three months. This trend highlights the stock’s relative weakness within the broader market and its sector. The Pharmaceuticals & Biotechnology sector itself has shown resilience, with the Sensex trading near its 52-week high and maintaining bullish moving averages.
The stock’s valuation discount compared to peers’ historical averages may reflect market caution given the company’s financial metrics and recent performance. Such valuation gaps often arise when investors weigh growth prospects, profitability, and risk factors.
Summary of Key Price and Performance Metrics
To summarise, Ambalal Sarabhai Enterprises’ stock has reached Rs.28.26, its lowest level in 52 weeks, following a series of declines over recent days. The stock’s price is below all major moving averages, signalling sustained downward momentum. Financial results show losses in recent quarters, negative operating cash flows, and modest long-term sales growth. The company’s returns have lagged the broader market indices, and its valuation metrics suggest a discount relative to capital employed.
Meanwhile, the Sensex remains close to its yearly peak, underscoring the divergence between Ambalal Sarabhai Enterprises’ stock performance and the broader market trend.
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