Axita Cotton Ltd
Ticker: AXITA
Risky
48/100
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Investing Reference
Price
8.41
Market Cap
292.48
Debt/Equity
0.0323
ROE %
PB
4.6804
Promoter %
41.924
Pledge %
0.000
1Y Rev Growth %
5Y Rev Growth %
NP Margin %
0.141
NP Margin 5Y Avg %
Trading Reference
1M Return %
-4.545
6M Return %
-15.900
1Y Return %
-41.475
% Away 52W High
72.652
% Away 52W Low
2.561
Daily Volume
716099
Investment Verdict
Hold
Score 68/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 22/100 · 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
Axita Cotton Ltd shows potential for growth in the cotton industry, driven by increasing demand and strategic expansions.
✅ Positives
- Strong demand for organic cotton products
- Expanding production capacity and facilities
- Experienced management team with industry expertise
⚠️ Negatives
- Volatility in raw cotton prices
- Dependence on monsoon for crop yield
- Limited market presence outside India
Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips.
Upside Probability: 30% | Downside Probability: 20%
Last generated: 30/10/2025
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Business Overview
Axita Cotton Ltd is a prominent player in the Indian cotton industry, specializing in the production and supply of high-quality cotton products. Catering to farmers, textile manufacturers, and exporters, Axita Cotton is committed to enhancing the agricultural value chain. With a focus on sustainability and innovation, the company plays a crucial role in supporting the livelihoods of farmers and meeting the growing demand for cotton in various sectors.
- Established leader in the Indian cotton market
- Supports farmers with fair trade practices
- Focus on sustainable and eco-friendly production
- Innovative solutions for textile manufacturers
- Strong commitment to quality and customer satisfaction
Investment Thesis
Axita Cotton Ltd presents a compelling investment opportunity due to its credible promoter group, significant growth potential in digital services, and attractive valuation compared to peers. This positions the company for robust future performance in the evolving textile industry.
- Strong credibility of the promoter group enhances investor confidence.
- Digital services segment poised for substantial growth, tapping into e-commerce trends.
- Valuation metrics indicate a favorable position relative to industry peers.
- Established market presence with a focus on sustainable and organic cotton.
- Potential for long-term capital appreciation as the company expands its footprint.
Opportunity vs Risk
Opportunities
- Growing demand for sustainable textiles
- Expansion into international markets
- Strong brand recognition in India
- Innovative product offerings
- Government support for textile industry
Risks ⚠️
- Fluctuating raw material prices
- Intense competition in the market
- Regulatory changes affecting operations
- Dependence on monsoon for cotton supply
- Global economic slowdown impacts exports
Peer Perspective
Axita Cotton Ltd trades at a discount to peers like Khandwala Securities and Vardhman Textiles, primarily due to margin volatility. A re-rating could occur with improved margin stability and consistent growth in demand.
Future Outlook
Axita Cotton Ltd is well-positioned for growth, leveraging its sustainable practices and expanding market presence; however, successful execution and stringent cost control will be crucial to fully realize its potential in the coming years.
AI FAQs for Retail Users
- Q: What does Axita Cotton Ltd do?A: Axita Cotton Ltd is involved in the production and trading of cotton and cotton-related products.
- Q: Is Axita Cotton Ltd listed on stock exchanges?A: Yes, Axita Cotton Ltd is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
- Q: What factors influence Axita Cotton Ltd's stock price?A: Stock price can be influenced by market demand, cotton prices, and overall economic conditions.
- Q: Are dividends paid by Axita Cotton Ltd?A: Dividends may be declared based on company performance and board decisions; check recent announcements for updates.
- Q: How can I invest in Axita Cotton Ltd?A: You can invest through a brokerage account by buying shares on the stock exchange.
📊 Stock Investment Checklist (100 Points)
Axita Cotton Ltd • Updated: 2025-09-17 11:21:16
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8BusinessHighThe cotton industry has growth potential but faces challenges from climate change.
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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 is volatile.
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9ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels but adequate liquidity.
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6GovernanceGoodPromoter holding is strong, but some pledging exists.
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5DriversGoodLimited scalability and execution risks due to market competition.
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1TechnicalsLowWeak market sentiment and low liquidity.
Final Score & Verdict
Score 48 / 100
• Risky
Axita Cotton Ltd shows potential but is hindered by inconsistent growth and market risks.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 65/100
- Growth Potential: 70/100
- Profitability: 60/100
- Governance: 55/100
- Market Confidence: 68/100