Amba Auto Sales & Services Limited Company operates as an authorised dealer of Bajaj Auto Limited (‘Bajaj Auto’) and LG Electronics India Limited (‘LG Electronics’) under the brand name Amba Bajaj and Amba LG Best Shop ('LG Best Shop'), respectively. They have a presence across the automotive retail value chain, including sales of new vehicles, after-sales service and repairs (including sales of spare parts, lubricants and accessories) and facilitation of the sales of third-party financial and insurance products. Additionally, in consumer electronics, they offer a diversified range of products including air conditioners, televisions, washing machines, refrigerators and small appliances. Company has established the market presence in Bengaluru, Karnataka with more than two decades of experience having commenced the business operations as a proprietary concern by setting up the first dealership for two wheelers sales and service. Over the years they have expanded the operations and have acquired dealership for Three-Wheeler, KTM (Sports Motorcycles) & Chetak as well from Bajaj Auto. Currently, the company is a authorised dealer of 4 out of 5 product segments of Bajaj Auto Limited, which includes Motorcycles, KTM, Chetak and Three-Wheeler. Company operates as an authorised dealer of two-wheeler automobiles and commercial vehicles for Bajaj Auto in Bengaluru having 25 sales showrooms and outlets as on the date of the RHP. In the FY25, they sold 12,035 new vehicles, including new two wheelers and new commercial vehicles of Bajaj Auto. Further, as on December 31, 2025, they have sold 9,852 new vehicles. As per financial performance, Amba Auto Sales & Services Limited has posted total income / net profits of Rs 113.05 / 0.63 Cr (FY23), Rs 211.33 / Rs 2.88 Cr (FY24), Rs 242.46 Cr / 7.77 Cr (FY25) and Rs 203.79 Cr / 12.10 Cr (Upto Q3 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises concerns. Also net-cash flow is negative. Company has an average EPS of Rs 3.67 and average RoNW of 53.30% for last three fiscals. Issue is priced at a P/BV of 6.78 as per NAV of Rs 19.92/- as on 31.12.25 If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 85.69, 31.81 and 15.32 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, CapitalSquare Advisors Private Limited is associated with this IPOs, and has handled 2 IPOs in last three fiscal years. From last two IPOs, all opened below issue price or at par, on the day of listing. As of now, from last 2 IPOs, one are trading below issue price and remaining is trading above issue price or at par. (as on 22.04.26 ) As per financials, Amba Auto Sales & Services Limited has shown good growth, RoNW is 69.09% and P/E is 85.69, 31.81 and 15.32 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. But, sudden rise in net-profit just before IPO, negative cash-flow and high debts raises doubts. Company is authorised dealer of 4 out of 5 product segments of Bajaj Auto and operates around 25 sales showrooms in Bengaluru, which is highly competitive business segment. Performance of BRLM is average post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment