Ambica Agarbathies & Aroma Industries Ltd. (AMBICAAGAR) AI Stock Analysis

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Ambica Agarbathies & Aroma Industries Ltd.

(NSE:AMBICAAGAR)

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Rating:57Neutral

Price Target:INR 24.00▲(3.67% Upside)

Action:reiterated

Date:09/06/26

The score is held back primarily by weak recent cash generation (negative operating and free cash flow in FY2025–FY2026) and rising leverage despite improved FY2026 profitability. Offsetting this, technicals are supportive with the stock trading above major moving averages and positive momentum, while valuation appears moderate at a 16.391 P/E.

Positive Factors

Revenue RecoveryFY2026 revenue growth of about 7% after a weak FY2025 indicates demand recovered rather than remaining in contraction. Continued top-line expansion can improve operating absorption and provide a base for rebuilding earnings over the next several quarters.

Negative Factors

Weak Cash GenerationNegative operating and free cash flow in two consecutive years indicates that reported profitability is not currently translating into cash. If this persists, Ambica may have less capacity to fund operations and growth internally, increasing dependence on external financing.

Ambica Agarbathies & Aroma Industries Ltd. (AMBICAAGAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 397.31M
Dividend Yield: ―
Average Volume (3M): 9,039
Price to Earnings (P/E): 13.7
Beta (1Y): 0.85
Revenue Growth: 7.07%
EPS Growth: 586.00%
Country: India
Employees: 275
Sector: General
Sector Strength: 55
Industry: Household & Personal Products

Ambica Agarbathies & Aroma Industries Ltd. Business Overview & Revenue Model

Company Description

Ambica Agarbathies Aroma & Industries Limited, established in Chennai, India, in 1946, specializes in the global production and distribution of incense sticks. The company operates through two primary segments: its Agarbathies Division and its Hotel...

Ambica Agarbathies & Aroma Industries Ltd. Financial Statement Overview

Summary

Profitability and revenue improved in FY2026 (back to positive earnings and ~7% growth), but margins remain thin and volatile. The biggest concern is earnings quality: operating and free cash flow were negative in FY2025 and worsened in FY2026, while leverage trended higher (debt-to-equity ~0.85).

Income Statement

62Positive

Balance Sheet

58Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.36B	1.41B	1.24B	978.47M	1.17B	1.16B
Gross Profit	309.92M	305.80M	295.65M	260.88M	178.50M	209.19M
EBITDA	157.75M	186.28M	155.52M	98.85M	134.31M	153.74M
Net Income	34.17M	34.47M	4.89M	-36.62M	25.28M	24.01M
Balance Sheet
Total Assets	0	2.45B	2.24B	2.11B	2.04B	2.19B
Cash, Cash Equivalents and Short-Term Investments	2.83M	2.83M	571.73M	14.28M	11.21M	16.24M
Total Debt	0	958.13M	822.18M	673.21M	628.24M	635.79M
Total Liabilities	-1.13B	1.32B	1.14B	1.10B	988.69M	1.17B
Stockholders Equity	1.13B	1.13B	1.09B	1.01B	1.05B	1.02B
Cash Flow
Free Cash Flow	77.01M	-127.68M	-148.79M	13.60M	64.44M	158.03M
Operating Cash Flow	80.17M	-120.54M	-60.87M	45.22M	83.01M	160.36M
Investing Cash Flow	-33.68M	-5.78M	-86.72M	17.55M	-18.56M	-2.33M
Financing Cash Flow	-49.61M	113.66M	148.82M	-59.71M	-69.47M	-167.31M

Ambica Agarbathies & Aroma Industries Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price23.15

Price Trends

50DMA24.11Negative

100DMA24.38Negative

200DMA24.18Negative

Market Momentum

MACD-0.33Negative

RSI44.00Neutral

STOCH28.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AMBICAAGAR, the sentiment is Negative. The current price of 23.15 is below the 20-day moving average (MA) of 23.17, below the 50-day MA of 24.11, and below the 200-day MA of 24.18, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 28.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AMBICAAGAR.

Ambica Agarbathies & Aroma Industries Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AMBICAAGAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:EMAMILTD	74Outperform	INR 180.31B	24.10	―	3.40%	13.15%	-1.27%
IN:CUPID	71Outperform	INR 461.22B	347.06	―	―	121.66%	188.33%
IN:DABUR	70Outperform	INR 664.97B	33.50	―	2.36%	8.94%	11.89%
IN:GODREJCP	69Neutral	INR 870.86B	45.44	―	2.28%	12.02%	8.49%
IN:JYOTHYLAB	67Neutral	INR 74.53B	35.09	―	1.77%	4.61%	-40.60%
IN:AMBICAAGAR	57Neutral	INR 383.23M	13.69	―	―	7.07%	586.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:AMBICAAGAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AMBICAAGAR	Ambica Agarbathies & Aroma Industries Ltd.	23.15	-2.95	-11.30%
IN:CUPID	Cupid Limited	384.75	322.18	514.91%
IN:DABUR	Dabur India Limited	384.00	-129.65	-25.24%
IN:EMAMILTD	Emami Limited	412.30	-101.74	-19.79%
IN:GODREJCP	Godrej Consumer Products Limited	874.80	-250.44	-22.26%
IN:JYOTHYLAB	Jyothy Labs Limited	199.25	-106.08	-34.74%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Ambica Agarbathies & Aroma Industries Ltd. AI Stock Analysis