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Ambica Agarbathies Aroma & Industries Limited (AMBICAAGAR) Fair Value & Analysis

Consumer Defensive · IN · Market cap ₹422M

AA Ambica Agarbathies Aroma & Industries Limited AMBICAAGAR · NSE
Price₹24.28
Fair Value₹34.12
Upside+40.5%
Quality41/100
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Weak Growth
Thin margins · 2.4% net margin
Moderate debt · negative free cash flow
Trails peers (4/12)
Narrow moat 26/100
Evidence: High Range ₹25.59 – ₹42.65 Share as image

Fair value as of: Aug 2, 2026

From 15 valuation models · updated 11 days ago

Share price −1.5% over the past month.

Below-average quality, screening 41% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (₹25.59). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

₹42.30 ₹12.60 Fair Value ₹34.12 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹12.60 – ₹42.30 · fair‑value band ₹25.59 – ₹42.65 · the ₹24.28 price screens below the ₹34.12 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Ambica Agarbathies Aroma & Industries Limited (AMBICAAGAR) currently trades at ₹24.28, while our model-based Fair Value estimate is ₹34.12, implying the stock looks roughly 40.5% undervalued today. The Quality Score stands at 41/100 (below-average quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Ambica Agarbathies Aroma & Industries Limited generated revenue of ₹1.4B at a net margin of 2.4%. Revenue declined 28.3% year over year. It earns a return on equity of 3.1%. Net debt stands at ₹955M. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹25.59 (bear case) to ₹42.65 (bull case); at ₹24.28, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 21% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -26% fair-value upside, at 41%, AMBICAAGAR screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹44.50 ₹41.75 ₹32.23 76
Gordon GGM ₹1.84 ₹3.31 ₹4.56 70
Growth-Adj P/E ₹25.16 ₹35.94 ₹46.72 68
All 15 models by family
DCF Models
Owner Earnings ₹12.17 31
Earnings-Based
Graham-Dodd ₹13.65 ₹37.87 ₹49.76 54
Lynch FV ₹7.59 ₹10.84 ₹14.09 50
PEG = 1.0 ₹7.59 ₹10.84 ₹14.09 46
Dividend Discount
Gordon GGM ₹1.84 ₹3.31 ₹4.56 70
DDM Multi-Stage ₹1.84 ₹2.73 ₹3.54 61
Multiples
P/E Multiple ₹31.61 ₹42.15 ₹52.68 63
P/S Multiple ₹25.59 ₹34.12 ₹42.65 58
P/B Multiple ₹25.59 ₹34.12 ₹42.65 55
EV/EBIT ₹18.62 ₹38.02 ₹57.42 53
EV/EBITDA ₹18.14 ₹37.38 ₹56.62 54
EV/Revenue ₹1.96 ₹19.76 ₹37.56 43
Asset-Based
NCAV (Graham) ₹32.81 ₹43.97 ₹65.63 50
Economic Profit
Residual Income ₹44.50 ₹41.75 ₹32.23 76
Growth Earnings
Growth-Adj P/E ₹25.16 ₹35.94 ₹46.72 68

Widest divergence: Asset-Based (₹43.97) versus Dividend Discount (₹2.73). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹1.4B
Revenue growth (YoY) -28.3%
Net margin 2.4%
Return on equity 3.1%
Free cash flow −₹128M FY2026
P/E ratio 12.2
More key figures
Operating margin 5.1%
EPS (TTM) ₹2.01
EPS growth (YoY) +196%
Net debt ₹955M FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 38 · Market factors (momentum, volatility) 50

Profitability 26
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 28
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Ambica Agarbathies Aroma & Industries Limited engages in the manufacture and sale of incense sticks in India and internationally. The company operates through Agarbathies Division and Hotel Division segments. It also provides durbar, herbal bathies, dhoops and cones, camphor and pooja oil, Kumkum, and turmeric powder.

Full company description

Ambica Agarbathies Aroma & Industries Limited engages in the manufacture and sale of incense sticks in India and internationally. The company operates through Agarbathies Division and Hotel Division segments. It also provides durbar, herbal bathies, dhoops and cones, camphor and pooja oil, Kumkum, and turmeric powder. In addition, the company operates hotels in Chennai and Vishakapatnam, as well as involved in film production and distribution activities. Further, it owns farmland with resort club house and health center. Additionally, it is involved in wind power generation business. The company was founded in 1946 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Ambica Agarbathies Aroma & Industries Limited reported revenue of ₹1.4B in FY2026 versus ₹1.2B in FY2022, a compound +4.9%/yr. Reported net income was ₹34.5M in FY2026, compounding +9.5%/yr from FY2022.

Growth Quality 24/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹1.4B
Latest YoY
+14.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.3%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.1%
Revenue +4.9%/yr
FY22 ₹1.2B
FY23 ₹1.2B
FY24 ₹978M
FY25 ₹1.2B
FY26 ₹1.4B
Net income +9.5%/yr
FY22 ₹24.0M
FY23 ₹25.3M
FY24 −₹36.6M
FY25 ₹4.9M
FY26 ₹34.5M
Character of growth · EPS growth decomposed (2015-2026) +3.5 % p.a.
Revenue per share +1.5 pp

of which total revenue +1.5 pp · buybacks/dilution +0.0 pp

EBIT margin +11.4 pp
Tax rate −3.2 pp
Residual (interest, one-offs) −6.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Ambica Agarbathies Aroma & Industries Limited Fair Value". https://www.fairvalue-calculator.com/stock/AMBICAAGAR

Peer Group

Household & Personal Products · 245 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside +41% · Top 25%
Return on equity (TTM) 3% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth -28% · Bottom 25%
Debt / equity 0.61× · Higher than 75% of peers

Valuation Multiples vs Household & Personal Products median · lower = cheaper

P/E (TTM) 12.2× · Cheaper than 75% of peers
P/B 0.37× · Cheaper than 75% of peers
P/S (TTM) 0.30× · Cheaper than median
EV/EBITDA 10.8× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 87 · sector 23
FUTURE 0 · sector 4
PAST 12 · sector 25
HEALTH 70 · sector 98
DIVIDEND 0 · sector 52

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Household & Personal Products stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
The Procter & Gamble Company PG $146.80 $108.16 -26%
Unilever PLC ULN 1,080 MXN 1,273 MXN +18%
Hindustan Unilever Limited HINDUNILVR ₹2,144 ₹1,000 -53%
Essity AB ESSITYA kr 279.00 kr 250.02 -10%
Godrej Consumer Products Limited GODREJCP ₹1,088 ₹367.64 -66%
Marico Limited MARICO ₹846.75 ₹233.05 -72%
APR Co 278470 375,000 KRW 151,222 KRW -60%
Dabur India Limited DABUR ₹429.45 ₹181.60 -58%
Kimberly-Clark de México, S. A. B. de C. V., KIMBERA 38.07 MXN 50.09 MXN +32%
PT Unilever Indonesia Tbk UNVR 1,730 IDR 1,934 IDR +12%

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Frequently asked questions

Is Ambica Agarbathies Aroma & Industries Limited (AMBICAAGAR) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹34.12 versus a price of ₹24.28, about +41% (undervalued).
What is the fair value of AMBICAAGAR?
Our model-based fair value for Ambica Agarbathies Aroma & Industries Limited is ₹34.12 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹24.28.
What is the quality score of AMBICAAGAR?
Ambica Agarbathies Aroma & Industries Limited has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ambica Agarbathies Aroma & Industries Limited (AMBICAAGAR)?
Ambica Agarbathies Aroma & Industries Limited reported trailing-twelve-month revenue of about ₹1.4B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of AMBICAAGAR?
The net profit margin of Ambica Agarbathies Aroma & Industries Limited is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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