Ambey Laborator. (AMBEY)

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

Key Financials

Strengths

• Promoter holding is high at 70.15%, aligning management with minority investors
• Trailing P/E of 12.92 is optically modest if earnings stabilize
• ROCE of 9.97% shows some capital productivity despite sector pressures
• Latest quarter sales of ₹68 Cr and net profit of ₹3 Cr indicate the business is still operational and generating profits

Concerns

• Profit growth is negative at -11.78% while sales growth is nearly flat at 0.78%
• Piotroski F-Score of 4/9 points to weak fundamental health
• Zero dividend means shareholders get no income for waiting
• Missing data on book value, ROE, and debt/equity prevents full balance sheet assessment

AI Analysis

At ₹37.60, Ambey Laborator carries a market cap of only ₹57 Cr and a trailing P/E of about 12.9. That looks cheap at first glance, but cheapness is not value. This is a pesticide and agrochemical player with almost no growth: sales grew just 0.78% and profits fell 11.78%. A PEG ratio of 16.56 tells me the market is not paying up for growth, and with zero dividend, I get no compensation while waiting. Return on capital employed is under 10%, which is below what I would expect from a business with pricing power. Without book value, ROE, or debt-equity data, I cannot judge the balance sheet or the true return on shareholders' equity. That absence of information is itself a warning. The Piotroski F-score of 4/9 suggests financial health is mediocre, not the kind of strong balance sheet I look for. Promoter holding at 70.15% is positive; owners' interests are aligned with mine. The stock has traded between ₹16.20 and ₹47.00 in a year, so there is cyclicality and price volatility. As Graham would say, margin of safety comes from realistic assessment, not hope. With flat sales, declining profits, and no dividend, this is not a compounding machine. It may be a niche player but it lacks the durable competitive advantage and growth to justify my attention. I will wait for evidence of improving margins, stable earnings, and a cleaner balance sheet before considering it. For now, Ambey Laborator looks like a slow grower that wants a turnaround, but the numbers do not yet show the fundamental strength Buffett requires.

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