Ambika Cotton Mills Ltd Stock Analysis

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

BSE Share Price Jul 05, 18:01
1554.90 25.70 (1.68%)

DeciZen - Make an Informed Decision on Ambika Cotton Mills

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

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 Fair zone.

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

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Ambika Cotton Mills Ltd is likely to Fall 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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 11.8%14.3%18.9%15.7%13.4%15.9%15.4%14.3%11%12.8%-
Value Creation Index -0.20.00.40.1-0.00.10.10.0-0.2-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 389398477495492529584656623633921
YoY Gr. Rt. %-2.1%19.9%3.9%-0.6%7.4%10.6%12.2%-5%1.7%-
Adj EPS 54.557.693.388.47596.9105.9115.797118.7314.2
YoY Gr. Rt. %-5.6%62.1%-5.3%-15.2%29.3%9.3%9.3%-16.2%22.3%-
BVPS (₹) 333.4375.1442.4512.7570.3654.5749829884987.31,266.1
Adj Net Profit 3233.854.851.944.155.560.666.355.668180
Cash Flow from Ops. 13587.437.843676716.310.549.5105-
Debt/CF from Ops. 1.11.12.71.50.30.11.88.51.40-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.6%5.2%2.7%1.7%
Adj EPS 9%9.6%3.9%22.3%
BVPS 12.811.69.611.7
Share Price 23.2% 4.3% 14.3% 29.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 17.316.222.818.513.915.615.114.711.312.727.9
Op. Profit Mgn % 23.122.923.820.41919.919.319.717.819.929.3
Net Profit Mgn % 8.28.511.510.5910.510.410.18.910.719.5
Debt to Equity 0.80.40.40.20.100.10.20.100
Working Cap Days 158123119134136139171188217227204
Cash Conv. Cycle 1188184939190100128172174179

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 27.90%

Sales growth is good in last 4 quarters at 51.08%

Sales growth has been subdued in last 3 years 2.71%

Net Profit has been subdued in last 3 years 3.86%

Latest Financials - Ambika Cotton Mills Ltd.

Standalone Consolidated
TTM EPS (₹) 314.2 -
TTM Sales (₹ Cr.) 921 -
BVPS (₹.) 1,266.1 -
Reserves (₹ Cr.) 719 -
P/BV 1.21 -
PE 4.87 -
From the Market
52 Week Low / High (₹) 1167.25 / 2829.00
All Time Low / High (₹) 27.00 / 2829.00
Market Cap (₹ Cr.) 875
Equity (₹ Cr.) 5.7
Face Value (₹) 10
Industry PE 9.5

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

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News

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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