Ambalal Sarabhai Enterprises, a microcap player in the pharmaceuticals and drugs industry, has recently received an upgraded stock call to ‘Hold’ from MarketsMOJO as of January 7, 2025. The company reported positive financial performance for the second quarter of FY24-25, showcasing a significant growth in operating profit at an annual rate of 51.61%.
In the latest results, the profit after tax (PAT) for the half-year reached Rs 2.97 crore, marking a remarkable growth of 178.36%. Additionally, the profit before tax (PBT) less other income for the quarter stood at Rs 1.27 crore, reflecting a growth of 204.2%.
Ambalal Sarabhai Enterprises maintains a low debt-to-equity ratio of 0.10 times, indicating a stable financial structure. Promoter confidence appears to be rising, with a 0.58% increase in their stake, now totaling 31.35%. Despite these positive indicators, the company faces challenges with a low return on capital employed (ROCE) of 4.35%, suggesting inefficiencies in management. The stock has generated a return of 34.34% over the past year, outperforming the BSE 500 index in various timeframes.
