Check Before You Invest : Ambika Cotton Mills Ltd

Snapshot

Q.1 Which industry/sub-sector does Ambika Cotton Mills Ltd belong to?

Ambika Cotton Mills Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Spinning segment.

Q.2 Is Ambika Cotton Mills Ltd a good quality company?

Ambika Cotton Mills Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Ambika Cotton Mills Ltd undervalued or overvalued?

Ambika Cotton Mills Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Ambika Cotton Mills Ltd a good buy now?

Ambika Cotton Mills Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd revenue growth is -14.7% for FY-2025, which is below its 5-year CAGR of 2.42%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Return on capital employed is 11.47% for FY-2025, which is below its 5-year historical median of 17.06%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Return on Asset is 5.82%, which is below its 5-year historical median of 10.48%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Return on equity is 7.46% for FY-2025, which is below its 5-year historical median of 12.69%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Cash conversion cycle is 234 days, above its 5-year historical median of 165 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.62	0.89
ROE	7.46	12.69
ROCE	11.47	17.06
Cash Conversion Cycle	234 days	165 days

Q.6 Gross Profit margin of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.2% for FY-2025, which is below its 5-year median of 18.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.5% for FY-2025, which is below its 5-year median of 19.88% indicating decreasing margins.

Q.8 Net Profit Margin of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Net Profit Margin is 9.36% for FY-2025, is below with its 5-year median of 10.73%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	16.2	18.8
Operating Profit Margin	15.5	19.88
Net Profit Margin	9.36	10.73

Q.9 Debt to Equity ratio of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Debt-to-Equity ratio is 0.06, which is lower with the industry average of 0.4, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ambika Cotton Mills Ltd?

Ambika Cotton Mills Ltd Debt to cash flow from operations is 0.39, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ambika Cotton Mills Ltd?

Promoters hold 50.35% of the Ambika Cotton Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ambika Cotton Mills Ltd vs industry peers?

Ambika Cotton Mills Ltd revenue CAGR is 2.42%, compared to the industry median CAGR of 2.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-14.7	2.2
Gross Profit Growth	0.9	NAN
Operating Profit Growth	-5.4	-2.1
Net Profit Growth	4.8	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.62	1
ROE	7.46	3.73
ROCE	11.47	6.18
Cash Conversion Cycle (days)	234.3	72

Valuation & price assessment

Q.1 Stock return of Ambika Cotton Mills Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 5.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	5.7%	10.5%	-1%	10%

Q.3 Valuation ratios of Ambika Cotton Mills Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	13.52	10.02	9.40
Price to Book	0.89	1.09	0.72
Price to Sales	1.21	1.11	0.40
EV to EBITDA	5.68	4.88	7.20

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