Company Overview

Ambica Agarbathies Aroma & Industries Limited, founded in 1946 and headquartered in Eluru, Andhra Pradesh, is a traditional player in the agarbathi (incense stick) manufacturing sector. With nearly eight decades of operation in the Indian market, the company specializes in manufacturing and marketing various aroma products and incense sticks.

The company operates primarily through its Agarbathies Division, Hotel Division, and Construction Division. Its manufacturing facilities are strategically located across Andhra Pradesh in Eluru, Hyderabad, Rajam, and Adoni, spanning a total built-up area of 300,000 sq. ft.

Business Operations and Product Portfolio

Agarbathi Division

This is the company's core business. The Agarbathies Division manufactures and sells a wide range of incense sticks and related products both in India and internationally.

Key products include:

- Durbar Bathi

- Amrutham (Herbal Bathies)

- Athjisaya Dhoop

- Dhoops and Cones

- Pooja Oil, Camphor, Turmeric Powder, Kumkum, Ghee, and Wild Honey.

The division offers various fragrances to meet diverse client demands, such as gulam, strawberry, spicy, sandal, rosemary, rose, oriental, opium, myrrh, lavender, and jasmine.

Hotel Division

The company operates Hotel Ambica Empire, which features approximately 86 rooms, including five suites. It houses four conference halls (His Highness, Her Majesty, Citrus I, and Citrus II) and three restaurants (Royal Palate, Green Chillies, and Andhra Samskruti). The hotel is equipped with modern amenities like a spa, gym, and pub. The company also operates hotels in Chennai and Visakhapatnam.

Other Business Activities

Beyond its core divisions, Ambica Agarbathies & Aroma Industries Ltd is involved in construction activities, film production and distribution, and owns farmland with a resort, club house, and health center.

Stock Performance and Market Position

The market capitalization of Ambica Agarbathies Aroma & Industries Ltd (AMBICAAGAR) is ₹47.93 Cr as of 21st April 2025. The company is classified as a small-cap stock and trades on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) under the script name AMBICAAGAR.

- 52-Week High: ₹36.95

- 52-Week Low: ₹23.20

- P/E Ratio: -13.10

- P/B Ratio: 0.47

Industry Classification and Competitive Position

Ambica Agarbathies & Aroma Industries Ltd (AMBICAAGAR) belongs to the Materials sector and the Specialty Chemicals sub-sector. The company operates in a traditional industry facing challenges in terms of growth and modernization. Over the last 5 years, its revenue has grown at a yearly rate of -6.06%, compared to the industry average of 6.12%, indicating underperformance relative to peers.

Financial Performance and Key Metrics

Recent Financial Performance

The company has shown mixed financial performance in recent quarters:

- Q3 FY2024-25 (ended Dec 2024):

- Net Profit: ₹0.38 crore (an improvement from a net loss of ₹0.77 crore in Q3 FY2023-24)

- Sales: ₹36.05 crore (up 24.61% from ₹28.93 crore in Q3 FY2023-24)

- Q2 FY2024-25 (ended Sep 2024):

- Net Profit: ₹0.93 crore (an improvement from a net loss of ₹1.49 crore in Q2 FY2023-24)

- Sales: ₹33.51 crore (up 37.84% from ₹24.31 crore in Q2 FY2023-24)

For the fiscal year 2025, the company reported an operating revenue of ₹123.62 Cr on a trailing 12-month basis.

Key Financial Metrics and Ratios

- Market Capitalization: ₹49 Cr as on 11-Jul-2025

- Revenue Growth: Annual revenue growth of 25% is outstanding.

- Return on Equity (ROE): Company has a low ROE of 0.08% over the last 3 years, indicating poor efficiency.

- Debt-to-Equity Ratio: The company has a D/E ratio of 55%, which is considered slightly high.

- Sales Growth: The company has delivered a poor sales growth of -5.89% over the past five years.

Shareholding Pattern and Management

- Promoter Holding: 43.4% (as per the latest available data).

- Pledged Shares: Promoters have pledged 0.01% of total equity as of March 2025.

- Key Management:

- Chairman: Ambica Krishna

- Managing Director: Ambica Krishna

Investment Considerations

Ambica Agarbathies & Aroma Industries Ltd presents a mixed investment profile with both opportunities and challenges.

Positives:

- Recent quarterly improvements in profitability.

- Strong annual revenue growth of 25%.

- Diversified business model across agarbathi, hospitality, and construction offers some revenue stability.

Challenges:

- Poor historical sales growth (-5.89% over 5 years).

- Low Return on Equity (0.08% over 3 years).

- Underperformance compared to industry peers (-6.06% revenue growth vs. industry avg 6.12%).

- O'Neil Methodology Scores:

- EPS Rank: 25 (POOR) - indicating earnings inconsistency.

- RS Rating: 53 (POOR) - indicating stock underperformance.

- Buyer Demand: D- (HEAVY SUPPLY)

- Group Rank: 97 (POOR) - belongs to a weak industry group (Cosmetics/Personal Care).

- Master Score: D (CLOSE TO WORST) - indicating poor technical strength and fundamentals.

Conclusion:

While the company shows recent positive trends and a diversified business, its historical performance, industry position, and technical indicators suggest it has poor fundamental and technical strength. Investors should carefully consider these factors, the company's financial metrics, industry challenges, and growth prospects before making any investment decisions. There may be superior investment opportunities available in the current market.