Ambika Cotton Mills Ltd - Stock Valuation and Financial Performance

BSE: 531978 | NSE: AMBIKCO | Textile - Spinning | Small Cap

Ambika Cotton Mills Share Price

1,694 3.15 0.19%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Ambika Cotton Mills

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Ambika Cotton Mills stock performance -

mw4me loader
P/E Ratio (SA):
15.19
Market Cap:
956.4 Cr.
52-wk low:
1,400
52-wk high:
1,890

Is Ambika Cotton Mills Ltd an attractive stock to invest in?

1. Is Ambika Cotton Mills Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Ambika Cotton Mills Ltd is a good quality company.

2. Is Ambika Cotton Mills Ltd undervalued or overvalued?

The key valuation ratios of Ambika Cotton Mills Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Ambika Cotton Mills Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Ambika Cotton Mills Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Ambika Cotton Mills:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ambika Cotton Mills Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 18.9%15.7%13.4%15.9%15.4%14.3%11%12.8%28.1%15.8%-
Value Creation
Index
0.40.10.00.10.10.0-0.2-0.11.00.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 477495492529584656623633921848823
Sales YoY Gr.-3.9%-0.6%7.4%10.6%12.2%-5%1.7%45.3%-7.9%-
Adj EPS 93.388.47597105.9115.797118.7314.2203.1110
YoY Gr.--5.3%-15.2%29.4%9.2%9.3%-16.2%22.3%164.8%-35.4%-
BVPS (₹) 442.4512.7570.3654.5749829884987.31,266.11,426.41,500.3
Adj Net
Profit
54.851.944.155.560.666.355.66818011663
Cash Flow from Ops. 37.843676716.310.549.5103302-79.8-
Debt/CF from Ops. 2.71.50.30.11.88.51.4000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.6%7.7%10.8%-7.9%
Adj EPS 9%13.9%27.9%-35.4%
BVPS13.9%13.8%17.3%12.7%
Share Price 16.6% 10.6% 9.5% 6.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
22.818.513.915.715.114.711.312.727.915.17.5
Op. Profit
Mgn %
23.820.41919.919.319.717.819.929.421.513.3
Net Profit
Mgn %
11.510.5910.510.410.18.910.719.513.77.6
Debt to
Equity
0.40.20.100.10.20.10000
Working Cap
Days
119134136139171188217227155196181
Cash Conv.
Cycle
8493919010012817217498113143

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 10.80%

Net Profit is growing at healthy rate in last 3 years 27.91%

Return on Equity has declined versus last 3 years average to 7.50%

Sales growth is not so good in last 4 quarters at -1.71%

Latest Financials - Ambika Cotton Mills Ltd.

Standalone Consolidated
TTM EPS (₹) 110 -
TTM Sales (₹ Cr.) 823 -
BVPS (₹.) 1,500.3 -
Reserves (₹ Cr.) 853 -
P/BV 1.11 -
PE 15.19 -
From the Market
52 Week Low / High (₹) 1400.00 / 1889.95
All Time Low / High (₹) 27.00 / 2829.00
Market Cap (₹ Cr.) 956
Equity (₹ Cr.) 5.7
Face Value (₹) 10
Industry PE 29.2

Management X-Ray of Ambika Cotton Mills:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Ambika Cotton Mills

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales477495492529584656623633921848
Operating Expenses 373396399424472531517507650672
Manufacturing Costs46465344415151415559
Material Costs278305301332376415393401508517
Employee Cost 24242526343841374652
Other Costs 26212021212832284244
Operating Profit 10410093105113125106126271176
Operating Profit Margin (%) 21.8%20.1%18.9%19.9%19.3%19.0%17.0%19.9%29.4%20.7%
Other Income 01211110514
Interest 1376461010727
Depreciation 32293029292928292930
Exceptional Items 0000000000
Profit Before Tax 6064597280876990244152
Tax 12131516192417226441
Profit After Tax 4851445661635268180112
PAT Margin (%) 10.1%10.3%9.0%10.5%10.4%9.6%8.4%10.7%19.5%13.2%
Adjusted EPS (₹)81.987.175.797.4106.7110.491.3118.7314.2195.5
Dividend Payout Ratio (%)15%16%20%0%33%27%16%29%11%18%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 260301335375429475506565725817
Share Capital 6666666666
Reserves 254295329369423469500559719811
Minority Interest0000000000
Debt7050207288969000
Long Term Debt31400000000
Short Term Debt3946207288969000
Trade Payables3323194561792360123
Others Liabilities 1049063666769616310383
Total Liabilities 4664634364935856406466518881,022

Fixed Assets

Gross Block484493507535568598612639649665
Accumulated Depreciation195224252281309338365394422450
Net Fixed Assets289270255254259260246245227215
CWIP 1000016400
Investments 0000000000
Inventories133145124151240272303313229397
Trade Receivables661941141318134639
Cash Equivalents 3351152272280277
Others Assets354034356772657410693
Total Assets 4664634364935856406466518881,022

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 38436767161050103302-80
PBT 6064597280876990244152
Adjustment 39343332333736342622
Changes in Working Capital -46-39-3-20-74-84-311100-212
Tax Paid -16-15-21-17-22-29-25-22-68-43
Cash Flow From Investing Activity -28-9-13-28-32-46-3-25-3-4
Capex -28-10-14-28-33-30-14-27-12-18
Net Investments 0000000000
Others -11102-16112914
Cash Flow From Financing Activity -8-34-52-321037-46-84-21-26
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -31-27-40000000
Interest Paid -12-6-5-4-5-9-9-6-1-6
Dividend Paid -6-7-170-6-14-17-9-20-20
Others 407-26-282160-19-6900
Net Cash Flow 1026-511-5277-110
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)20.0418.2413.9715.7115.213.9910.6612.6927.8914.52
ROCE (%)21.5119.5918.0420.7620.2918.9413.8817.0638.1920.74
Asset Turnover Ratio1.061.071.091.141.081.070.970.981.20.89
PAT to CFO Conversion(x)0.790.841.521.20.260.160.961.511.68-0.71
Working Capital Days
Receivable Days54921177991218
Inventory Days8610210095122142168177108135
Payable Days918253551308153065

Ambika Cotton Mills Ltd Stock News

Ambika Cotton Mills Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Ambika Cotton Mills on 12-Jul-2024 16:01 is ₹1,694.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Jul-2024 16:01 the market cap of Ambika Cotton Mills stood at ₹956.4.
The latest P/E ratio of Ambika Cotton Mills as of 12-Jul-2024 16:01 is 15.19.
The latest P/B ratio of Ambika Cotton Mills as of 12-Jul-2024 16:01 is 1.11.
The 52-week high of Ambika Cotton Mills is ₹1,890 and the 52-week low is ₹1,400.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Ambika Cotton Mills is ₹823.5 ( Cr.) .

About Ambika Cotton Mills Ltd

Ambika Cotton Mills is a manufacturer of cotton yarn. It was incorporated as a private limited company on October 6, 1988 and got converted into a public limited company on September 5, 1994.

The company has four manufacturing units in Dindigul, Tamil Nadu. In FY07, the company set up its fourth unit with an installed capacity of 43,200 spindles including doubling of yarn for 9,600 spindles along with back processing machinery in a separate plant at an estimated cost of Rs 1,406.3 million. The company has increased its compact facility in Unit II by 6,720 spindles at an estimated cost of Rs 33.1 million. The total production capacity would increase to 110,000 spindles in phases starting with operations at unit IV from June 2007. Of this, the compact facility would constitute 83,000 spindles representing 75.45% of the total installed capacity. The additional doubling of yarn facility would provide the required flexibility in product range. The installed wind power capacity of the company stands at 13.8 MW with the setting up of 800 KW capacity in FY07.

The company’s clientele consists of well-reputed manufacturers engaged in manufacturing shirts/knitwear products, both in the domestic and international markets. Approximately 45% of its products are exported directly to Taiwan, Hong Kong, Turkey, China, Korea, Singapore, Israel and Egypt and through merchant exporters to Peru, Italy, and Germany among other countries.

Milestones:

1988 - The company was originally incorporated as Ambika Cotton Mills Private Ltd as a private limited company on October 6, in the state of Tamil Nadu, and subsequently converted into a public limited company on September 5, 1994. The company was promoted by P K Ganeshwar, Rathanasamy and P V Chandran, for setting up a cotton spinning mill. The mill located in Dindigul, Tamil Nadu, commenced operations in January 1990. The project, with an initial capacity of 6048 spindles was part-financed by a term loan from State Bank of India. The company carried out an expansion scheme to add certain back-process machinery in February 1991, which was also funded by the State Bank of India. 

1992 - Ambika Cotton Mills began implementation of an expansion project to double its spindlage to 12096 spindles by the addition of 6048 spindles. This project was financed by means of a medium-term loan from State Bank of India and the State Bank of Mysore on a consortium basis and through a Deferred Payment Guarantee limit from IDBI. The project was successfully completed in March 1993.  

1994 - The company added Comber machines to its production line and humidification system. This was funded by SIPCOT through a term loan of Rs 90.86 lakh. The company currently manufactures combed and carded cotton yarn of counts ranging from 30's to 40's. These are used by hosiery manufacturers to convert the same into fabric or garments. 

2000 - The company has chalked out a Rs 14-crore expansion-cum-modernisation programme.

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