Ambika Cotton Mills Ltd - Stock Valuation and Financial Performance

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

Ambika Cotton Mills Ltd Share Price

1,716.95 -4.60 -0.27%
as on 23-Feb'24 16:59

DeciZen - make an informed investing decision on Ambika Cotton Mills

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Ambika Cotton Mills stock performance -

mw4me loader
P/E Ratio (SA):
15.04
Market Cap:
977.8 Cr.
52-wk low:
1,310.5
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 Semi Strong which suggest that the price of Ambika Cotton Mills Ltd is likely to Rise-somewhat 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 477495492529584656623633921848804
Sales YoY Gr.-3.9%-0.6%7.4%10.6%12.2%-5%1.7%45.3%-7.9%-
Adj EPS 93.388.47597105.9115.797118.7314.2203.1113.6
YoY Gr.--5.3%-15.2%29.4%9.2%9.3%-16.2%22.3%164.8%-35.4%-
BVPS (₹) 442.4512.7570.3654.5749829884987.31,266.11,426.41,508.3
Adj Net
Profit
54.851.944.155.560.666.355.66818011665
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 18.9% 8.3% 21.8% 16.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
22.818.513.915.715.114.711.312.727.915.17.7
Op. Profit
Mgn %
23.820.41919.919.319.717.819.929.421.513.7
Net Profit
Mgn %
11.510.5910.510.410.18.910.719.513.78.1
Debt to
Equity
0.40.20.100.10.20.1000-
Working Cap
Days
119134136139171188217227155196183
Cash Conv.
Cycle
8493919010012817217498113148

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 7.70%

Sales growth is not so good in last 4 quarters at -11.45%

Latest Financials - Ambika Cotton Mills Ltd.

Standalone Consolidated
TTM EPS (₹) 113.6 -
TTM Sales (₹ Cr.) 804 -
BVPS (₹.) 1,508.3 -
Reserves (₹ Cr.) 858 -
P/BV 1.13 -
PE 15.04 -
From the Market
52 Week Low / High (₹) 1310.50 / 1889.95
All Time Low / High (₹) 27.00 / 2829.00
Market Cap (₹ Cr.) 978
Equity (₹ Cr.) 5.7
Face Value (₹) 10
Industry PE 34.3

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 (%)

Balance Sheet

(All Figures are in Crores.)

Profit And Loss

(All Figures in Cr. Adjusted EPS in Rs.)

Cash Flow

(All Figures are in Crores.)

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 23-Feb-2024 16:59 is ₹1,717.
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 23-Feb-2024 16:59 the market cap of Ambika Cotton Mills stood at ₹977.8.
The latest P/E ratio of Ambika Cotton Mills as of 23-Feb-2024 16:59 is 15.04.
The latest P/B ratio of Ambika Cotton Mills as of 23-Feb-2024 16:59 is 1.13.
The 52-week high of Ambika Cotton Mills is ₹1,890 and the 52-week low is ₹1,310.5.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Ambika Cotton Mills is ₹803.9 ( 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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