Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
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 Division. The aroma products portfolio includes a wide array of items such as various incense types (durbar, natural, herbal), dhoops, cones, puja oil, camphor, turmeric powder, kumkum, ghee, and wild honey. Its hospitality arm manages hotels located in Chennai and Vishakapatnam. Additionally, the company engages in construction activities, produces and distributes films, and possesses farmland featuring a resort clubhouse and health center. Products are also available for purchase via its online platform.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT