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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sunrakshakk Inds

GHCL Textiles

Ambika Cotton

Century Enka

Monte Carlo Fas.

Nahar Spinning

Borana Weaves

Precot

Mafatlal Inds.

Sarla Performanc

Himatsing. Seide

Why is Ambika Cotton Mills Ltd ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -0.60% of over the last 5 years

Positive results in Mar 26

OPERATING PROFIT TO INTEREST(Q) Highest at 13.07 times
PBT LESS OI(Q) At Rs 27.34 cr has Grown at 60.0% (vs previous 4Q average)
PAT(Q) At Rs 24.53 cr has Grown at 56.0% (vs previous 4Q average)

With ROE of 7.5, it has a Expensive valuation with a 1 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.46%, its profits have risen by 8.9% ; the PEG ratio of the company is 1.5

Majority shareholders : Promoters

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ambika Cotton should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ambika Cotton for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ambika Cotton

-3.46%

-0.10

33.04%

Sensex

-10.54%

-0.81

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.28%

EBIT Growth (5y)

-0.60%

EBIT to Interest (avg)

46.93

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.98

Tax Ratio

25.61%

Dividend Payout Ratio

32.22%

Pledged Shares

Institutional Holding

2.04%

ROCE (avg)

23.91%

ROE (avg)

12.12%

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

0.96

EV to EBIT

7.70

EV to EBITDA

6.32

EV to Capital Employed

0.95

EV to Sales

0.92

PEG Ratio

1.45

Dividend Yield

2.30%

ROCE (Latest)

12.39%

ROE (Latest)

7.50%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Bullish

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

19What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 13.07 times

PBT LESS OI(Q)

At Rs 27.34 cr has Grown at 60.0% (vs previous 4Q average

PAT(Q)

At Rs 24.53 cr has Grown at 56.0% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Lowest at 0.00 times

NET SALES(Q)

Highest at Rs 215.16 cr

PBDIT(Q)

Highest at Rs 35.55 cr.

EPS(Q)

Highest at Rs 42.81

-1What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 168.41 cr

Loading Valuation Snapshot...

Here's what is working for Ambika Cotton

Operating Profit to Interest - Quarterly

Highest at 13.07 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 27.34 cr has Grown at 60.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 17.09 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 24.53 cr has Grown at 56.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 15.72 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 215.16 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 215.16 cr has Grown at 22.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 175.53 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 35.55 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 27.34 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 24.53 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 42.81

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

Here's what is not working for Ambika Cotton

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 168.41 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents