Padam Cotton Yarns Ltd

Ticker: PADAMCO
Risky 48/100

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Investing Reference

Price
4.67
Market Cap
60.29
Debt/Equity
0.0273
ROE %
88.740
PB
3.5717
Promoter %
0.000
Pledge %
0.000
1Y Rev Growth %
538.228
5Y Rev Growth %
NP Margin %
42.047
NP Margin 5Y Avg %

Trading Reference

1M Return %
-48.958
6M Return %
-40.358
1Y Return %
44.833
% Away 52W High
173.148
% Away 52W Low
44.833
Daily Volume
3242533
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 19/100 · 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.

AI Probability Statement

Probability Statement

Padam Cotton Yarns Ltd is currently trading near a key support level, with the 50-day EMA indicating potential upward momentum. If it breaks above the resistance level, there is a strong chance for a price increase. However, if it falls below the support, a decline is likely.
Upside Probability: 20%   |   Downside Probability: 15%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Padam Cotton Yarns Ltd is a leading manufacturer of high-quality cotton yarns, catering to the textile industry in India and beyond. With a commitment to sustainability and innovation, the company serves a diverse clientele, including garment manufacturers and exporters. Its focus on premium quality and customer satisfaction makes it a trusted partner in the textile supply chain. As a key player in the cotton yarn market, Padam Cotton Yarns Ltd is poised for growth, contributing to the Indian economy and supporting local farmers.

  • Leading manufacturer of cotton yarns
  • Serves textile industry and garment manufacturers
  • Commitment to sustainability and innovation
  • Focus on premium quality and customer satisfaction
  • Key player in the Indian cotton market
  • Supports local farmers and economy

Investment Thesis

Padam Cotton Yarns Ltd stands out due to its credible promoter group, which enhances investor confidence. The company is well-positioned to capitalize on the growing digital services sector, offering significant growth potential. Additionally, its attractive valuation compared to peers makes it an appealing investment opportunity.

  • Strong promoter group with a proven track record.
  • Significant growth potential in digital services.
  • Attractive valuation compared to industry peers.
  • Robust operational performance and market presence.
  • Strategic initiatives to enhance competitive advantage.

Opportunity vs Risk

Opportunities
  • Growing demand for sustainable textiles
  • Expansion into new markets
  • Strong brand recognition
  • Increasing online sales
  • Government support for textile industry
Risks ⚠️
  • Fluctuating raw material prices
  • Intense competition in the sector
  • Regulatory changes impacting operations
  • Dependence on key suppliers
  • Economic slowdown affecting demand

Peer Perspective

Padam Cotton Yarns Ltd trades at a 15% discount to peers like Vardhman Textiles and Trident, primarily due to margin volatility; a stable margin and consistent growth could trigger a rerating.

Future Outlook

Padam Cotton Yarns Ltd is well-positioned for growth, driven by increasing demand in the textile sector. However, successful execution of expansion plans and effective cost control will be crucial to achieving sustainable profitability.

AI FAQs for Retail Users

  • Q: What does Padam Cotton Yarns Ltd do?
    A: Padam Cotton Yarns Ltd manufactures and sells cotton yarns for various textile applications.
  • Q: Is Padam Cotton Yarns Ltd a good investment?
    A: Investments depend on individual goals and market conditions. Research and consult a financial advisor.
  • Q: What are the risks of investing in this stock?
    A: Risks include market volatility, industry competition, and economic changes affecting demand.
  • Q: How can I buy shares of Padam Cotton Yarns Ltd?
    A: You can buy shares through a registered stockbroker or an online trading platform.
  • Q: What is the company's growth strategy?
    A: The company focuses on expanding production capacity and enhancing product quality to meet market demand.
📊 Stock Investment Checklist (100 Points)
Padam Cotton Yarns Ltd • Updated: 2025-09-17 06:04:17
  • 8
    Business
    High
    The cotton yarn sector is essential for the textile industry, but faces challenges from synthetic alternatives.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in demand affecting profitability.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, with cash flow showing some volatility.
  • 9
    Valuation
    High
    Valuation metrics are slightly above industry averages, indicating potential overvaluation.
  • 7
    Balance
    High
    The company maintains a reasonable debt/equity ratio, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns about transparency in disclosures.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks in expanding market share.
  • 1
    Technicals
    Low
    Market sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100 • Risky
Padam Cotton Yarns Ltd presents several risks with inconsistent growth and profitability metrics, alongside governance concerns. Caution is advised for potential investors.

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


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