WEBSITE BSE:0 NSE: Inc. Year: 2005 Industry: Automobiles - Dealers & Distributors My Bucket: Add Stock
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1. Business Overview
Amba Auto Sales and Services Ltd. operates in the Automobiles - Dealers & Distributors sector in India. Its core business involves the sale of new and potentially pre-owned vehicles, along with providing comprehensive after-sales services such as maintenance, repairs, and spare parts. The company likely operates as an authorized dealer for one or more automobile manufacturers, earning revenue through margins on vehicle sales, service charges, and sales of parts and accessories. It may also generate commission income from facilitating vehicle financing and insurance.
2. Key Segments / Revenue Mix
While specific figures are not available, the company's revenue streams typically comprise:
New Vehicle Sales: Primary revenue generator, involving the sale of cars, two-wheelers, or commercial vehicles from its authorized brands.
After-Sales Service & Parts: Revenue from vehicle servicing, repairs, bodywork, and the sale of genuine spare parts and accessories. This segment often provides higher margins and recurring income.
Used Vehicle Sales: If applicable, revenue from buying and selling pre-owned vehicles.
Commissions: Income earned from acting as an intermediary for vehicle financing, insurance, and extended warranty products.
3. Industry & Positioning
The Indian automobile dealership industry is highly competitive and often fragmented, especially at the regional level. It is characterized by strong dependence on automobile manufacturers for product supply, pricing, and marketing support. Dealers typically operate within specific geographic territories and represent particular brands. Amba Auto's positioning would depend on the brands it represents (mass market, premium, commercial), its geographical footprint, and its reputation for customer service. It likely operates as a regional or local player, competing with other authorized dealerships and independent service centers. The industry is sensitive to economic cycles and consumer spending power.
4. Competitive Advantage (Moat)
Automobile dealerships generally possess weak moats due to high competition and relatively low switching costs for customers (who can often choose among multiple dealers for the same brand, or switch brands). Potential competitive advantages for Amba Auto could include:
Authorized Dealership Status: Exclusive rights to sell and service a popular brand in a specific geographic area, if such exclusivity exists and is strong.
Local Brand Reputation & Customer Relationships: A strong history of reliable service and positive customer experience can build loyalty within its operating region.
Location Advantage: Strategically located showrooms and service centers offering convenience.
Operational Efficiency: Ability to manage inventory, sales, and service operations efficiently to maintain profitability in a low-margin business.
5. Growth Drivers
Overall Indian Automotive Market Growth: Rising disposable incomes, increasing urbanization, and expanding middle class continue to drive demand for personal mobility.
New Model Launches: Introduction of popular new models or facelifts by the manufacturers Amba Auto represents can stimulate sales.
After-Sales Market Expansion: As the vehicle parc (total number of vehicles on the road) grows, so does the demand for maintenance, repairs, and spare parts, boosting recurring service revenue.
Network Expansion: Opening new showrooms or service centers in underserved or growing markets.
Premiumization Trend: Growing consumer preference for higher-value vehicles, potentially offering better margins for dealers.
6. Risks
Economic Downturn: A slowdown in the Indian economy or tighter credit conditions can significantly impact vehicle sales.
Intense Competition: Competition from other authorized dealers, multi-brand outlets, and online platforms for sales and services can compress margins.
Manufacturer Dependence: High reliance on specific automobile manufacturers for product supply, pricing policies, and support, with limited bargaining power.
Inventory Risks: Holding unsold inventory can lead to carrying costs and potential price depreciation.
Changing Consumer Preferences: Shifts towards electric vehicles (EVs), shared mobility, or subscription models could necessitate significant adaptation and investment.
Regulatory Changes: Changes in emission norms, taxation, or import policies can impact the cost and demand for vehicles.
7. Management & Ownership
As is common with many Indian companies, especially in the dealership sector, Amba Auto Sales and Services Ltd. is likely a promoter-driven company. Promoters typically hold a significant stake and play a pivotal role in the strategic direction and daily operations. The quality of management would be assessed by their ability to navigate market cycles, maintain strong manufacturer relationships, ensure operational efficiency, and adapt to evolving industry trends. Specific details on individual management members or ownership structure are not publicly available based on the provided information.
8. Outlook
Amba Auto Sales and Services Ltd. operates within a growing automotive market in India, which presents significant opportunities driven by increasing incomes and demand for personal transportation. The company's success will largely hinge on its ability to maintain strong relationships with manufacturers, effectively manage its sales and service operations, and deliver superior customer experience to build loyalty. However, it faces inherent challenges of the dealership business, including thin margins, intense competition, and sensitivity to economic fluctuations. Adapting to technological shifts (like EVs) and evolving consumer behaviors will be crucial for sustained long-term growth.
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Market Cap ₹238 Cr.
Stock P/E 30.6
P/B 7.3
Current Price ₹130
Book Value ₹ 17.9
Face Value 10
52W High ₹137.5
Dividend Yield 0%
52W Low ₹ 122
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) |
|---|
| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|
| Net Sales | 113 | 211 | 242 | |
| Other Income | 0 | 0 | 0 | |
| Total Income | 113 | 211 | 242 | |
| Total Expenditure | 108 | 202 | 224 | |
| Operating Profit | 5 | 9 | 18 | |
| Interest | 3 | 4 | 6 | |
| Depreciation | 1 | 1 | 1 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | |
| Profit Before Tax | 1 | 4 | 10 | |
| Provision for Tax | 0 | 1 | 3 | |
| Profit After Tax | 1 | 3 | 8 | |
| Adjustments | 0 | 0 | 0 | |
| Profit After Adjustments | 1 | 3 | 8 | |
| Adjusted Earnings Per Share | 0.5 | 2.1 | 5.8 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 15% | 0% | 0% | 0% |
| Operating Profit CAGR | 100% | 0% | 0% | 0% |
| PAT CAGR | 167% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | NA% | NA% | NA% | NA% |
| ROE Average | 69% | 44% | 44% | 44% |
| ROCE Average | 29% | 21% | 21% | 21% |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Shareholder's Funds | 4 | 7 | 15 |
| Minority's Interest | 0 | 0 | 0 |
| Borrowings | 12 | 11 | 10 |
| Other Non-Current Liabilities | -0 | 0 | 0 |
| Total Current Liabilities | 23 | 36 | 65 |
| Total Liabilities | 40 | 54 | 91 |
| Fixed Assets | 4 | 6 | 9 |
| Other Non-Current Assets | 3 | 3 | 4 |
| Total Current Assets | 32 | 45 | 78 |
| Total Assets | 40 | 54 | 91 |
| #(Fig in Cr.) | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Opening Cash & Cash Equivalents | 2 | 1 | 2 |
| Cash Flow from Operating Activities | -0 | -3 | -7 |
| Cash Flow from Investing Activities | -1 | -3 | -5 |
| Cash Flow from Financing Activities | -0 | 6 | 12 |
| Net Cash Inflow / Outflow | -1 | 1 | 1 |
| Closing Cash & Cash Equivalent | 1 | 2 | 2 |
| # | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Earnings Per Share (Rs) | 0.47 | 2.14 | 5.76 |
| CEPS(Rs) | 0.94 | 2.65 | 6.81 |
| DPS(Rs) | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 3.32 | 5.46 | 11.22 |
| Core EBITDA Margin(%) | 4.22 | 4.24 | 7.44 |
| EBIT Margin(%) | 3.75 | 3.97 | 6.89 |
| Pre Tax Margin(%) | 0.83 | 1.91 | 4.3 |
| PAT Margin (%) | 0.57 | 1.37 | 3.21 |
| Cash Profit Margin (%) | 1.13 | 1.69 | 3.79 |
| ROA(%) | 1.61 | 6.15 | 10.73 |
| ROE(%) | 14.25 | 48.74 | 69.09 |
| ROCE(%) | 13.39 | 21.99 | 29.08 |
| Receivable days | 23.47 | 12.67 | 20.22 |
| Inventory Days | 70.34 | 45.35 | 60.31 |
| Payable days | 15.66 | 9.62 | 18.33 |
| PER(x) | 0 | 0 | 0 |
| Price/Book(x) | 0 | 0 | 0 |
| Dividend Yield(%) | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.24 | 0.17 | 0.22 |
| EV/Core EBITDA(x) | 5.54 | 3.98 | 2.95 |
| Net Sales Growth(%) | 0 | 87 | 14.74 |
| EBIT Growth(%) | 0 | 97.89 | 99.52 |
| PAT Growth(%) | 0 | 352.25 | 169.37 |
| EPS Growth(%) | 0 | 352.25 | 169.37 |
| Debt/Equity(x) | 6.06 | 5.05 | 3.65 |
| Current Ratio(x) | 1.43 | 1.25 | 1.2 |
| Quick Ratio(x) | 0.47 | 0.39 | 0.44 |
| Interest Cover(x) | 1.29 | 1.93 | 2.66 |
| Total Debt/Mcap(x) | 0 | 0 | 0 |
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* The pros and cons are machine generated.
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