Ambika Cotton Mills Ltd
Ticker: AMBIKCO
Decent
70/100
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Investing Reference
Price
1347.40
Market Cap
771.39
Debt/Equity
0.0561
ROE %
7.458
PB
0.8532
Promoter %
50.347
Pledge %
0.000
1Y Rev Growth %
-13.901
5Y Rev Growth %
3.152
NP Margin %
9.023
NP Margin 5Y Avg %
11.923
Trading Reference
1M Return %
-4.240
6M Return %
-0.355
1Y Return %
-14.816
% Away 52W High
33.368
% Away 52W Low
5.840
Daily Volume
5453
Investment Verdict
Buy
Score 81/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 17/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Ambika Cotton Mills Ltd shows strong fundamentals with consistent growth in revenue and profitability, but faces challenges from rising raw material costs.
✅ Positives
- Strong revenue growth over the past few years
- Robust profit margins and cash flow generation
- Established brand with loyal customer base
⚠️ Negatives
- Increasing raw material prices impacting margins
- Dependence on cotton prices and supply chain
- Limited geographical diversification
Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 29/10/2025
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Business Overview
Ambika Cotton Mills Ltd is a leading textile manufacturer in India, specializing in high-quality cotton yarns and fabrics. Catering to both domestic and international markets, the company is known for its commitment to sustainability and innovation. With a strong focus on quality and customer satisfaction, Ambika Cotton Mills plays a crucial role in the textile supply chain, ensuring reliable products for various applications. Investors and stakeholders can trust in its robust operational framework and growth potential in the ever-evolving textile industry.
- Established leader in cotton textile manufacturing
- Focus on high-quality, sustainable products
- Strong domestic and international market presence
- Commitment to innovation and customer satisfaction
- Robust operational framework for growth
- Key player in India's textile supply chain
Investment Thesis
Ambika Cotton Mills Ltd presents a compelling investment opportunity driven by a strong promoter group with a proven track record, significant growth potential in digital services, and attractive valuation metrics compared to its peers. This combination positions the company for sustained growth and profitability.
- Strong promoter credibility ensures effective governance and strategic direction.
- Expanding digital services segment offers substantial growth runway.
- Attractive valuation metrics highlight potential for price appreciation.
- Robust fundamentals and market positioning enhance competitive advantage.
- Consistent financial performance underpins investor confidence.
Opportunity vs Risk
Opportunities
- Strong demand for cotton products
- Expanding export markets
- Sustainable production practices
- Growing online retail presence
Risks ⚠️
- Fluctuating cotton prices
- Regulatory changes in agriculture
- Dependence on seasonal demand
- Competition from synthetic fibers
Peer Perspective
Ambika Cotton Mills Ltd trades at a premium to peers like Vardhman Textiles and KPR Mill, reflecting its strong margins. A sustained focus on growth acceleration and margin stability could trigger further rerating.
Future Outlook
Ambika Cotton Mills Ltd is well-positioned for growth, driven by strong demand in the textile sector. Successful execution of expansion plans and effective cost control will be crucial to maximizing shareholder value.
AI FAQs for Retail Users
- Q: What does Ambika Cotton Mills Ltd do?A: Ambika Cotton Mills Ltd is involved in the manufacturing and selling of cotton yarn.
- Q: Is Ambika Cotton a good investment?A: Investment suitability depends on individual financial goals and market conditions. Do your research.
- Q: What is the company's financial performance?A: Review the latest financial reports for insights on revenue, profit margins, and growth.
- Q: How can I buy shares of Ambika Cotton Mills?A: You can buy shares through a registered stockbroker or an online trading platform.
- Q: What are the risks of investing in this stock?A: Risks include market volatility, industry competition, and changes in cotton prices.
📊 Stock Investment Checklist (100 Points)
Ambika Cotton Mills Ltd • Updated: 2025-09-16 19:26:45
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10BusinessHighThe cotton industry is stable but faces challenges from synthetic alternatives.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in demand.
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10ProfitabilityHighROE and ROCE are decent, but cash flow has been volatile.
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10ValuationHighValuation metrics are in line with peers but show limited upside.
-
8BalanceHighThe balance sheet is relatively strong with low debt.
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7GovernanceHighPromoter holding is good, but there are some concerns about disclosures.
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5DriversGoodGrowth drivers are limited; execution risks are present.
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3TechnicalsLowMarket sentiment is weak with low liquidity.
Final Score & Verdict
Score 70 / 100
• Decent
Ambika Cotton Mills Ltd shows decent fundamentals but faces challenges in growth and market sentiment.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 75/100
- Governance: 80/100
- Market Confidence: 70/100