Ambika Cotton Mills Ltd (AMBIKCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sunrakshakk Inds

Nahar Spinning

RSWM Ltd

Ambika Cotton

Vishal Fabrics

GHCL Textiles

Sarla Performanc

Credo Brands

Ruby Mills

VTM

Karnika Industri

Why is Ambika Cotton Mills Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 4.22% and Operating profit at 3.90% over the last 5 years

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.90% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ambika Cotton for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ambika Cotton

-20.9%

-0.67

31.26%

Sensex

4.76%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.22%

EBIT Growth (5y)

3.90%

EBIT to Interest (avg)

36.03

Debt to EBITDA (avg)

0.41

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.01

Tax Ratio

26.47%

Dividend Payout Ratio

32.22%

Pledged Shares

Institutional Holding

2.05%

ROCE (avg)

24.38%

ROE (avg)

12.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.76

EV to EBIT

6.46

EV to EBITDA

5.08

EV to Capital Employed

0.69

EV to Sales

0.74

PEG Ratio

Dividend Yield

2.99%

ROCE (Latest)

10.69%

ROE (Latest)

6.62%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CF(Y)

Highest at Rs 129.05 Cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 7.87 times

PAT(Q)

Highest at Rs 15.94 cr.

DPS(Y)

Highest at Rs 37.00

DPR(Y)

Highest at 32.22%

DEBT-EQUITY RATIO(HY)

Lowest at 0.00 times

PBT LESS OI(Q)

Highest at Rs 18.15 cr.

EPS(Q)

Highest at Rs 27.82

-4What is not working for the Company

ROCE(HY)

Lowest at 10.53%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 174.91 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 19.00 times

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Here's what is working for Ambika Cotton

Operating Profit to Interest - Quarterly

Highest at 7.87 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

Highest at Rs 15.94 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 129.05 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 18.15 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 27.82

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.00 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per Share (DPS) - Annually

Highest at Rs 37.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 32.22%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Ambika Cotton

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 174.91 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 19.00 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio