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Ambica Agarbathies Overview

1. Business Overview

Ambica Agarbathies & Aroma Industries Ltd. is an Indian manufacturer primarily engaged in the production and sale of agarbathies (incense sticks) and other aromatic products. The company manufactures various types of incense sticks, catering to different consumer preferences in terms of fragrance, stick length, and packaging. Its core business model involves sourcing raw materials (such as bamboo sticks, charcoal powder, jiggit powder, and fragrance oils), manufacturing incense sticks, and then distributing them through a network of distributors and retailers. The company makes money by selling its agarbathies and related aromatic products to consumers, leveraging brand recognition and distribution reach.

2. Key Segments / Revenue Mix

The company's primary revenue stream is derived from the sale of agarbathies (incense sticks). While the "Aroma Industries" part of its name suggests potential for other aromatic products like dhoop or essential oils, agarbathies are the dominant segment. Detailed revenue breakdown by specific product type (e.g., traditional vs. modern fragrances, different packaging formats) is typically not disclosed at a granular level in public filings, but the entire business falls under the "Household & Personal Products" sector, with incense sticks being the main category.

3. Industry & Positioning

The Indian agarbathi industry is large, driven by cultural and religious practices, and highly fragmented. It comprises a few large national players, a significant number of regional brands, and numerous unorganized local manufacturers. Ambica Agarbathies operates within this competitive landscape, likely holding a regional or niche position rather than a dominant national market share. Key competitive factors include brand reputation, fragrance quality, pricing, and the strength of the distribution network. The company competes with both established players and smaller, local brands.

4. Competitive Advantage (Moat)

Ambica Agarbathies likely derives its competitive advantages from:

Brand Recognition (Regional/Niche): Established brands, even at a regional level, can command loyalty among consumers for specific fragrances or quality.

Distribution Network: An efficient and widespread distribution network, particularly in specific geographical areas, is crucial for reaching customers in the fragmented Indian market.

Cost Efficiency: Experience in sourcing raw materials and managing production processes can lead to cost advantages, allowing competitive pricing.

Fragrance Consistency: Maintaining consistent quality and popular fragrances helps retain customer base.

However, these advantages might be considered moderate rather than strong, given the highly competitive and fragmented nature of the industry where switching costs are generally low.

5. Growth Drivers

Increasing Disposable Incomes: Rising incomes in India can lead to higher consumption of household and personal care products, including premium agarbathies.

Urbanization and Changing Lifestyles: Growth in urban areas and evolving consumer preferences for home fragrances and wellness products can expand the market.

Product Innovation: Introduction of new fragrances, eco-friendly options, or innovative packaging can attract new customers and drive growth.

Expanding Distribution: Widening the reach into new geographical markets, both domestically and potentially internationally (exports), can be a significant growth driver.

Online Sales: Leveraging e-commerce platforms to reach a broader customer base beyond traditional retail channels.

6. Risks

Raw Material Price Volatility: Fluctuations in the prices of key raw materials like bamboo sticks, charcoal, sawdust, and essential oils can impact profit margins.

Intense Competition: The highly fragmented agarbathi market with numerous organized and unorganized players leads to pricing pressures and challenges in gaining market share.

Shifting Consumer Preferences: Changes in fragrance trends or a decline in traditional usage patterns could affect demand.

Regulatory Changes: Potential regulations related to sourcing of forest products (e.g., bamboo), use of certain chemicals in fragrances, or environmental norms could impact operations.

Economic Slowdown: A general economic slowdown can lead to reduced consumer spending on non-essential or discretionary items, even for traditionally consumed products.

7. Management & Ownership

Ambica Agarbathies & Aroma Industries Ltd. is typically a promoter-driven company, common in the Indian small and mid-cap space. The promoters and their families usually hold a significant stake, influencing strategic direction and operational management. The management quality can vary, but for established companies, it often reflects a deep understanding of the industry, particularly in manufacturing and distribution within their specific markets. Detailed assessment requires examining board composition, professionalization of management, and governance practices, which are typically available in their annual reports and public filings.

8. Outlook

Ambica Agarbathies operates in a resilient segment of the Indian consumer market, driven by cultural and traditional practices, ensuring a steady baseline demand for agarbathies. The company's future growth will depend on its ability to strengthen its brand presence, expand its distribution network efficiently, manage raw material costs effectively, and innovate with new product offerings. While the fragmented nature of the industry presents challenges in terms of intense competition and pricing pressure, it also offers opportunities for companies with strong regional presence and quality products to capture market share. The outlook is cautiously optimistic, balancing the steady demand with the operational and competitive challenges inherent in the sector.

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Ambica Agarbathies Key Financials

Market Cap ₹41 Cr.

Stock P/E 83.7

P/B 0.4

Current Price ₹23.8

Book Value ₹ 65.6

Face Value 10

52W High ₹32.8

Dividend Yield 0%

52W Low ₹ 20.5

Ambica Agarbathies Share Price

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Volume
Price

Ambica Agarbathies Quarterly Price

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Ambica Agarbathies Peer Comparison

Ambica Agarbathies Quarterly Results

#(Fig in Cr.) Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Net Sales 24 29 23 23 34 36 31 30 35 54
Other Income 0 0 5 1 1 2 1 2 2 1
Total Income 25 29 28 24 35 38 32 32 37 55
Total Expenditure 24 27 23 19 30 34 30 27 33 51
Operating Profit 1 2 5 5 5 4 3 5 4 4
Interest 2 2 3 3 3 3 2 3 2 3
Depreciation 0 0 0 0 0 0 1 1 0 0
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0
Profit Before Tax -2 -1 2 2 1 1 -1 2 1 1
Provision for Tax -0 0 1 0 0 0 1 0 0 0
Profit After Tax -1 -1 0 1 1 0 -2 1 1 1
Adjustments 0 -0 0 -0 0 0 0 0 0 0
Profit After Adjustments -1 -1 0 1 1 0 -2 1 1 1
Adjusted Earnings Per Share -0.9 -0.4 0.1 0.7 0.5 0.2 -1.1 0.7 0.5 0.3

Ambica Agarbathies Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 116 116 119 125 138 168 143 116 117 98 124 150
Other Income 1 1 2 2 3 1 4 1 5 5 5 6
Total Income 116 117 121 127 141 168 148 118 123 103 129 156
Total Expenditure 102 103 107 131 126 154 138 102 109 93 113 141
Operating Profit 15 14 14 -4 15 14 10 16 14 10 16 16
Interest 9 9 9 9 8 8 7 12 9 11 11 10
Depreciation 4 3 3 5 4 3 3 3 2 2 2 2
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 2 2 2 -17 4 4 -0 1 3 -2 3 3
Provision for Tax 1 1 1 0 -7 -1 -3 -2 1 1 2 1
Profit After Tax 1 1 2 -18 10 4 3 2 3 -4 0 1
Adjustments 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 1 1 2 -18 10 4 3 2 3 -4 0 1
Adjusted Earnings Per Share 0.8 0.8 0.9 -10.4 6 2.5 1.6 1.4 1.5 -2.1 0.3 0.4

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 27% 2% -6% 1%
Operating Profit CAGR 60% 0% 3% 1%
PAT CAGR 0% -100% -100% -100%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -21% -2% -5% 18%
ROE Average 0% -0% 1% 0%
ROCE Average 8% 7% 6% 7%

Ambica Agarbathies Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 36 36 37 85 93 97 100 102 105 101 109
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 31 14 10 68 66 66 69 62 61 67 60
Other Non-Current Liabilities 8 8 8 33 26 27 22 20 21 22 25
Total Current Liabilities 35 53 59 15 9 15 20 34 17 20 30
Total Liabilities 110 111 114 202 194 204 212 219 204 211 224
Fixed Assets 39 38 39 132 129 126 125 122 122 120 130
Other Non-Current Assets 29 24 36 31 27 27 27 26 14 17 14
Total Current Assets 41 49 39 39 38 51 60 71 68 74 80
Total Assets 110 111 114 202 194 204 212 219 204 211 224

Ambica Agarbathies Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 1 1 0 1 7 3 3 3 2 1 1
Cash Flow from Operating Activities -0 2 27 -4 13 6 6 16 8 5 1
Cash Flow from Investing Activities 17 2 -1 -0 -1 -0 -1 -0 -2 2 -5
Cash Flow from Financing Activities -15 -6 -26 10 -17 -6 -5 -17 -7 -6 3
Net Cash Inflow / Outflow 1 -1 1 6 -4 1 -1 -1 -1 0 0
Closing Cash & Cash Equivalent 1 0 1 7 3 3 3 2 1 1 2

Ambica Agarbathies Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 0.84 0.79 0.9 -10.38 5.97 2.48 1.59 1.4 1.47 -2.13 0.28
CEPS(Rs) 2.92 2.68 2.93 -7.45 8.21 4.24 3.43 3.3 2.54 -1.15 1.45
DPS(Rs) 0 0 0 0 0 0 0 0 0 0 0
Book NAV/Share(Rs) 20.98 21.09 21.76 49.61 54.09 56.58 58.24 59.63 61.09 58.96 63.62
Core EBITDA Margin(%) 12.17 11.05 10.07 -4.2 8.95 8.05 4 12.32 6.98 5.08 8.29
EBIT Margin(%) 9.66 9.5 9.04 -6.94 8.21 6.82 4.85 10.58 9.98 8.82 10.97
Pre Tax Margin(%) 1.67 1.74 1.9 -13.85 2.58 2.18 -0.35 0.52 2.6 -2.31 2.18
PAT Margin (%) 1.24 1.17 1.29 -14.22 7.41 2.55 1.91 2.06 2.16 -3.74 0.4
Cash Profit Margin (%) 4.33 3.97 4.21 -10.21 10.2 4.35 4.11 4.87 3.73 -2.02 2.01
ROA(%) 1.24 1.22 1.37 -11.29 5.18 2.14 1.32 1.12 1.2 -1.76 0.22
ROE(%) 4.08 3.75 4.2 -29.1 11.5 4.49 2.77 2.37 2.44 -3.55 0.46
ROCE(%) 11.64 11.53 11.23 -6.78 7.06 7.08 4.19 7.34 7.01 5.13 7.69
Receivable days 25.04 25.25 24.39 30.46 35.23 38.43 37.29 58.4 74.92 53.31 34.79
Inventory Days 56.81 67.8 62.12 30.75 6.92 18.36 34.55 41.87 24.35 15.11 15.79
Payable days 22.52 19.69 29.77 19.28 13.12 17.21 34.68 83.67 59.62 46.43 35.73
PER(x) 4.83 0 0 0 0 0 0 18.89 13.84 0 95.46
Price/Book(x) 0.19 0 0 0 0 0 0 0.44 0.33 0.45 0.43
Dividend Yield(%) 0 0 0 0 0 0 0 0 0 0 0
EV/Net Sales(x) 0.55 0.67 0.62 0.69 0.59 0.48 0.58 0.92 0.82 1.14 0.97
EV/Core EBITDA(x) 4.28 5.45 5.17 -23.63 5.35 5.51 8.29 6.89 7.14 10.78 7.72
Net Sales Growth(%) 3.25 -0 3.07 5.15 10.25 21.2 -14.39 -18.88 0.77 -16.54 26.34
EBIT Growth(%) 1.83 -1.67 -1.88 -180.7 230.46 0.69 -39.14 76.95 -4.91 -26.21 57.1
PAT Growth(%) 35.59 -5.79 13.89 -1257.38 157.5 -58.39 -35.84 -12.23 5.29 -244.86 113.34
EPS Growth(%) 35.59 -5.79 13.89 -1254.15 157.5 -58.39 -35.84 -12.23 5.29 -244.86 113.34
Debt/Equity(x) 1.6 1.68 1.55 0.9 0.72 0.68 0.69 0.62 0.6 0.66 0.69
Current Ratio(x) 1.19 0.92 0.66 2.55 4.03 3.48 2.96 2.08 4.06 3.66 2.69
Quick Ratio(x) 0.57 0.52 0.33 2.43 3.68 2.56 2.29 1.7 3.91 3.39 2.52
Interest Cover(x) 1.21 1.23 1.27 -1 1.46 1.47 0.93 1.05 1.35 0.79 1.25
Total Debt/Mcap(x) 8.28 0 0 0 0 0 0 1.4 1.8 1.48 1.61

Ambica Agarbathies Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 44.86 43.69 43.41 43.41 43.41 43.41 43.41 43.41 43.41 43.41
FII 0 0.03 0 0 0 0 0 0 0 0
DII 0 0 0 0 0 0 0 0 0 0
Public 55.14 56.28 56.59 56.59 56.59 56.59 56.59 56.59 56.59 56.59
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Ambica Agarbathies News

Ambica Agarbathies Pros & Cons

Pros

  • Stock is trading at 0.4 times its book value
  • Debtor days have improved from 46.43 to 35.73days.
  • Company has reduced debt.

Cons

  • Promoter holding is low: 43.41%.
  • Company has a low return on equity of -0% over the last 3 years.
  • The company has delivered a poor profit growth of -100% over past five years.
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