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INVESTMENT INSIGHTS

Check Before You Invest : Axita Cotton Ltd

BSE: 542285 NSE: AXITA ISIN: INE02EZ01022
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Axita Cotton Ltd belong to?
Axita Cotton Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Axita Cotton Ltd a good quality company?
Axita Cotton Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Axita Cotton Ltd undervalued or overvalued?
Axita Cotton Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Axita Cotton Ltd a good buy now?
Axita Cotton Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Axita Cotton Ltd?
Axita Cotton Ltd revenue growth is -40.8% for FY-2025 , which is below its 5 year CAGR of 6.2% , indicating slower growth.
Q.2 Gross Profit margin of Axita Cotton Ltd?
Axita Cotton Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.3% for FY-2025 , which is below its 5 year median of 2.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Axita Cotton Ltd?
Axita Cotton Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.23% for FY-2025 , which is below its 5 year median of 1.47% indicating decreasing margins.
Q.4 Net Profit Margin of Axita Cotton Ltd?
Axita Cotton Ltd Net Profit Margin is 0.17% for FY-2025 , is below with its 5 year median of 1.84%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 0.3 2.6
Operating Profit Margin 0.23 1.47
Net Profit Margin 0.17 1.84
Q.5 Return on Asset of Axita Cotton Ltd?
Axita Cotton Ltd Return on Asset is 1.26%, which is below its 5 year historical median of 14.27%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Axita Cotton Ltd?
Axita Cotton Ltd Return on equity is 1.72% for FY-2025 , which is below its historical median of 34.78%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Axita Cotton Ltd?
Axita Cotton Ltd Return on capital employed is 3.41% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Axita Cotton Ltd?
Axita Cotton Ltd Cash conversion cycle is 21 days, above its historical median of 15 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 7.49 7.49
ROE 1.72 34.78
ROCE 3.41 41.15
Cash Conversion Cycle 21 days 15 days
Q.9 Debt to Equity ratio of Axita Cotton Ltd?
Axita Cotton Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.42 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Axita Cotton Ltd?
Axita Cotton Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Axita Cotton Ltd?
Promoters hold 41.93% of the Axita Cotton Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Axita Cotton Ltd vs industry peers?
Axita Cotton Ltd revenue CAGR is 6.15% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 652.7 96.6
Gross Profit 2 3.2
Operating Profit 1 5.7
Net Profit 1 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 7.49 0.95
ROE 1.72 4.25
ROCE 3.41 7.55
Cash Conversion Cycle (days) 20.89 102

Valuation & price assessment

Q.1 Stock return of Axita Cotton Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 43.76% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 43.8% -39.5% -8.2%
Q.3 Valuation ratios of Axita Cotton Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 145.54 66.86 30.76
Price to Book 4.85 0.00 1.39
Price to Sales 0.77 0.53 1.01
EV to EBITDA 60.48 44.62 9.47

Check more companies

1. K.P.R. Mill
2. Vardhman Textiles
3. Welspun Living
4. Swan Corp
5. Vedant Fashions
6. Arvind
7. Pearl Global Inds.
8. Alok Inds
9. Garware Tech. Fibres
10. Indo Count Inds
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