Sharescart Research Club logo

Amba Auto Sales &Ser Overview

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.

Want to Start Investing in Top Unlisted Stocks?

Our experts help you choose the right stocks based on performance, risk, and growth potential.

Amba Auto Sales &Ser Key Financials

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

Amba Auto Sales &Ser Share Price

| |

Volume
Price

Amba Auto Sales &Ser Quarterly Price

Show Value Show %

Amba Auto Sales &Ser Peer Comparison

Amba Auto Sales &Ser Quarterly Results

#(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

Amba Auto Sales &Ser Profit & Loss

#(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

Growth Rates

# 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%

Amba Auto Sales &Ser Balance Sheet

#(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

Amba Auto Sales &Ser Cash Flow

#(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

Amba Auto Sales &Ser Ratios

# 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

Amba Auto Sales &Ser Shareholding Pattern

#
Promoter
FII
DII
Public
Others
Total

Amba Auto Sales &Ser News

Amba Auto Sales &Ser Pros & Cons

Pros

  • Company has a good return on equity (ROE) track record: 3 Years ROE 44%
  • Company has reduced debt.

Cons

  • Debtor days have increased from 9.62 to 18.33days.
  • Stock is trading at 7.3 times its book value.
whatsapp