Amba Enterprises Limited

Industrials — Metal Fabrication · BSE

₹111.05+₹0.70 (+0.63%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Amba Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Amba Enterprises Limited operates as a power engineering solutions company in India. It engages in the manufacturing and selling of transformer cores and laminations, and stampings for rotating machines.

IndustryMetal Fabrication

SectorIndustrials

Employees15

Annual revenue₹390 Cr

How does it make money?

Turns over ₹390 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 15 employees supports ₹26.00 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹26.00 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.4% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE18.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +79% while net margin moved -3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+79%

Margin effect-3%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.12 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

16.0x

3Y Median

29.7x

40 monthly readings · mean 31.5x · range 16.5x–64.1x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 3y median of 29.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 31% above the peer median of 12.2x.

vs. its own history

Cheap

29.7x median over 40 months · -46%

vs. sector peers

Expensive

12.2x median of 4 peers · +31%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.9x

PEG

0.80

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 30% over 3 years.
Cash generation is improving
Free cash flow is up 1297% over 3 years.
High return on capital employed
ROCE of 23.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 5.58x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 237% against revenue up 79% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 30% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 46% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.58x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 237% against revenue up 79%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 31% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.4% CAGR
Latest reported year was 12.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹141 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.83x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.96

Profitable

Profitable on a per-share basis

ROE

16.4%

Strong

Strong capital efficiency

ROCE

23.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.58x

High

High leverage

Revenue Growth (YoY)

12.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

39.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.68%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.0%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

115.9 / 113.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹218 Cr	₹282 Cr	₹337 Cr	₹390 Cr	+21.4%
EBITDA	₹7 Cr	₹9 Cr	₹11 Cr	₹12 Cr	+19.8%
EBITDA Margin	3.3%	3.3%	3.3%	3.2%	—
PAT (Net Profit)	₹5 Cr	₹6 Cr	₹7 Cr	₹8 Cr	+20.0%
EPS	₹3.73	₹4.87	₹5.86	₹6.45	+20.0%
ROE	15.8%	17.3%	17.4%	16.4%	—
ROCE	21.6%	24.4%	23.9%	23.2%	—
Total Debt	₹4 Cr	₹12 Cr	₹11 Cr	₹3 Cr	-11.1%
Free Cash Flow	₹1 Cr	-₹6 Cr	₹5 Cr	₹7 Cr	+140.8%

🟢 Revenue has grown at 21.4% a year over 3 years.

🟢 EBITDA has grown at 19.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.2% over 3 years.

🟢 PAT (Net Profit) has grown at 20.0% a year over 3 years.

🟢 EPS has grown at 20.0% a year over 3 years.

🟡 ROE has held roughly flat at 16.4% over 3 years.

🟢 ROCE has risen from 21.6% to 23.2% over 3 years (+1.6 pts).

🟢 Total Debt has shrunk at 11.1% a year over 3 years.

🟢 Free Cash Flow has grown at 140.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹124 Cr

Total Liabilities

₹74 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.8%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

19 Jun 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

1 mixed5 general

Amba Enterprises Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Amba Enterprises Ltd. Share Price rise: valuation and peers

Univest, 04 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Amba Auto IPO heads for market debut today. Check GMP ahead of listing

The Economic Times, 05 May

Amba Enterprises Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Amba Auto Sales share price makes flat debut, lists at ₹134.50 on NSE SME

Livemint, 05 May

Amba Enterprises Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑