ScoreWhy is Ambalal Sarabhai Enterprises Ltd ?
1
Poor Management Efficiency with a low ROCE of 6.22%
- The company has been able to generate a Return on Capital Employed (avg) of 6.22% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 2.72% over the last 5 years
- PAT(Latest six months) At Rs 10.48 cr has Grown at -29.90%
- NET SALES(Q) At Rs 43.56 cr has Fallen at -13.9% (vs previous 4Q average)
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.24 times
3
With ROCE of 4, it has a Attractive valuation with a 1.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 20.53%, its profits have fallen by -28.1%
4
Majority shareholders : Non Institution
5
Market Beating Performance
- Even though the market (BSE500) has generated negative returns of -3.52% in the last 1 year, the stock has been able to generate 20.53% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Ambalal Sarabhai should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Ambalal Sarabhai for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Ambalal Sarabhai
20.53%
0.37
55.23%
Sensex
-9.52%
-0.71
13.46%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.72%
EBIT Growth (5y)
27.58%
EBIT to Interest (avg)
3.34
Debt to EBITDA (avg)
5.45
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
1.08
Tax Ratio
11.08%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
5.36%
ROE (avg)
16.85%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
37
Price to Book Value
1.87
EV to EBIT
31.98
EV to EBITDA
22.45
EV to Capital Employed
1.70
EV to Sales
1.62
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.00%
ROE (Latest)
11.67%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
ROCE(HY)
Highest at 10.89%
-9What is not working for the Company
PAT(Latest six months)
At Rs 10.48 cr has Grown at -29.90%
NET SALES(Q)
At Rs 43.56 cr has Fallen at -13.9% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.24 times
NON-OPERATING INCOME(Q)
is 43.38 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Ambalal Sarabhai
Net Sales - Quarterly
At Rs 43.56 cr has Fallen at -13.9% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 50.57 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.98 cr has Fallen at -13.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 4.62 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 43.38 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debtors Turnover Ratio- Half Yearly
Lowest at 4.24 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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