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INVESTMENT INSIGHTS

Check Before You Invest : Ambika Cotton Mills Ltd

BSE: 531978 NSE: AMBIKCO ISIN: INE540G01014
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Spinning

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 quality company, based on a 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 2.4% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 16.2 18.8
Operating Profit Margin 15.5 19.88
Net Profit Margin 9.36 10.73
Q.5 Return on Asset of Ambika Cotton Mills Ltd?
Ambika Cotton Mills Ltd Return on Asset is 5.82(x), which is below its 5 year historical median of 10.48(x), indicating deteriorated asset utilization efficiency.
Q.6 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 historical median of 12.69%, indicating the business is making worse use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Ambika Cotton Mills Ltd?
Ambika Cotton Mills Ltd Cash conversion cycle is 234 , above its historical median of 165 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.62 0.89
ROE 7.46 12.69
ROCE 11.47 17.06
Cash Conversion Cycle 234 165
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 0.36 , 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, indicating the business is able to service its debt comfortably.

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 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 702.1 118.3
Gross Profit 113.7 3
Operating Profit 105 4.4
Net Profit 66 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.62 0.94
ROE 7.46 -
ROCE 11.47 5.99
Cash Conversion Cycle 234.3 61

Valuation & price assessment

Q.1 Stock return of Ambika Cotton Mills Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 4.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 4.9% 9.1% -3.4% 0.5%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 12.86 9.20 19.51
Price to Book 0.85 0.79 0.73
Price to Sales 1.15 0.70 0.34
EV to EBITDA 5.33 5.05 7.32

Check more companies

1. Trident
2. Sanathan Textiles
3. Nitin Spinners
4. Filatex India
5. Sumeet Inds
6. Pashupati Cotspin
7. Jaybharat Textiles
8. Nahar Spinning Mills
9. GHCL Textiles
10. Ambika Cotton Mills
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