Recent Price Movement and Market Context
On 8 December 2025, Ambika Cotton Mills opened with a gap up of 2.43%, reaching an intraday high of Rs.1264. Despite this initial positive momentum, the stock ultimately settled at its new low of Rs.1220. This closing price places the share below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend in the short to long term.
The stock’s performance today was broadly in line with its sector, Garments & Apparels, which also faced pressure amid a generally cautious market environment. The broader Sensex index opened flat but declined by 222.57 points, or 0.36%, closing at 85,402.27. Notably, the Sensex remains close to its 52-week high of 86,159.02, trading just 0.89% below that peak and maintaining a bullish stance above its 50-day and 200-day moving averages.
Extended Downtrend and Relative Performance
Ambika Cotton Mills has been on a downward path for the last nine consecutive sessions, resulting in a total return of -6.41% over this span. Over the past year, the stock has recorded a return of -23.75%, contrasting sharply with the Sensex’s positive 4.50% return during the same timeframe. This divergence highlights the stock’s underperformance relative to the broader market.
The 52-week high for Ambika Cotton Mills was Rs.1824, which the stock reached earlier in the year. The current price of Rs.1220 represents a decline of approximately 33% from that peak, underscoring the challenges faced by the company in maintaining investor confidence and market valuation.
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Financial Performance and Growth Trends
Over the last five years, Ambika Cotton Mills has recorded a compound annual growth rate of 4.22% in net sales, while operating profit has shown a growth rate of 3.90% during the same period. These figures suggest modest expansion in revenue and profitability, which may not have met market expectations for a more robust growth trajectory.
Profit after tax (PAT) has declined by 4.2% over the past year, reflecting some pressure on the company’s bottom line. Despite this, the company reported positive quarterly results in September 2025 following two consecutive quarters of negative outcomes. The operating cash flow for the year reached Rs.129.05 crores, the highest recorded, while the operating profit to interest ratio for the quarter stood at 7.87 times, indicating a comfortable coverage of interest expenses. The quarterly PAT was Rs.15.94 crores, also the highest in recent periods.
Valuation and Balance Sheet Metrics
Ambika Cotton Mills maintains a low average debt-to-equity ratio of zero, signalling a debt-free capital structure. The return on equity (ROE) is 6.6%, which aligns with a fair valuation given the company’s current financial profile. The stock trades at a price-to-book value of 0.8, suggesting it is valued below its book value, yet it remains at a premium compared to the historical average valuations of its peers in the Garments & Apparels sector.
The company’s dividend yield stands at 3% based on the current price, providing a modest income component for shareholders amid the price decline.
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Shareholding and Sector Position
The majority shareholding in Ambika Cotton Mills is held by promoters, indicating concentrated ownership. The company operates within the Garments & Apparels industry, a sector that has faced varied market conditions over the past year. While the broader market indices have shown resilience, Ambika Cotton Mills has not mirrored this trend, reflecting sector-specific and company-specific factors influencing its stock price.
Despite the stock’s recent lows, the broader Sensex index continues to trade above its key moving averages, suggesting that the overall market environment remains relatively stable. This contrast highlights the stock’s individual performance challenges within its sector and market context.
Summary of Key Price and Performance Metrics
To summarise, Ambika Cotton Mills’ stock price has declined to Rs.1220, its lowest level in 52 weeks, following a nine-day losing streak. The stock’s 1-year return of -23.75% contrasts with the Sensex’s positive 4.50% return. The company’s financial data reveals modest sales and profit growth over five years, a low debt profile, and a dividend yield of 3%. However, the stock trades below all major moving averages and at a discount to its 52-week high of Rs.1824.
These factors collectively illustrate the current market assessment of Ambika Cotton Mills, reflecting a period of subdued price performance amid a broader market that remains relatively buoyant.
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