Ambar Protein (519471)

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Historical ROE of 23.91% and ROCE of 27.50% indicate strong capital efficiency in better years
• Sales growth of 11.72% shows the business is still expanding its top line
• P/E of 13.71 is not demanding if earnings can recover from current trough levels
• Price near the 52-week low of ₹145.00 could offer a margin of safety if the downturn is temporary

Concerns

• Profit growth is sharply negative at -35.82%, and latest quarterly net profit of ₹2 Cr on ₹125 Cr sales implies very thin 1.6% net margin
• Piotroski F-Score of 4/9 suggests deteriorating financial health across multiple fundamental signals
• No dividend yield means investors get no income while waiting for a recovery
• Trading at 2.84 times book value with book value of ₹52.45 leaves little margin of safety for a commodity business

AI Analysis

Let me start with what this business is: Ambar Protein is in edible oil, a commodity business where pricing power is scarce. The numbers tell me the last year has been painful. Sales grew 11.72%, but profit fell 35.82%. That is the classic sign of a margin squeeze. In the latest quarter, on ₹125 Cr of sales, Ambar earned just ₹2 Cr — a net margin around 1.6%. Such thin margins leave no cushion against oilseed price swings. The historical returns look good: ROE of 23.91% and ROCE of 27.50%. But I must be suspicious of past returns when current profits are collapsing. Graham would say the book value is ₹52.45 per share; at ₹148.95 the stock trades at 2.84 times book. That is not a margin of safety. The P/E of 13.71 looks reasonable only if the earnings are sustainable, and they are not right now. No dividend means the shareholder is wholly dependent on price appreciation. The Piotroski score of 4/9 is weak and tells me the financial health is deteriorating. I cannot even assess debt, because debt/equity is not available; promoter holding is also unknown. With insufficient data, I must demand a bigger discount. The 52-week range is wide: ₹145.00 to ₹397.30. The stock is near the bottom, so a lot of bad news may be priced in, but cheap can become cheaper. This looks like a cyclical business in the down phase, not a franchise with durable advantage. I would not buy today; I would watch for margin recovery and evidence that earnings can stabilise before putting my money in.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer