AB Cotspin India Ltd. (ABCOTS) AI Stock Analysis

• Market Cap: ₹8.84B
• Dividend Yield: N/A
• Average Volume (3M): 2.12K
• Price to Earnings (P/E): 69.9
• Beta (1Y): 0.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 383
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Manufacturing - Textiles
• EPS (TTM): 1.49
• Shares Outstanding: 21,963,620
• 10 Day Avg. Volume: 1,372
• 30 Day Avg. Volume: 2,120
• PEG Ratio: 1.02
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -7.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹420.00 ▲(2.14% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by negative operating/free cash flows and high leverage despite strong revenue growth and solid operating margins. Technically, the stock shows weak momentum and is trading below key moving averages. Valuation is also a headwind due to the high P/E and lack of dividend yield support.

Positive Factors

Revenue Growth

A 17.5% top-line expansion indicates structurally rising demand for the company’s cotton yarns and widening market reach. Sustained revenue momentum supports scale economies, better negotiation with suppliers, and creates headroom to invest in capacity or product quality over the next several months.

Operational Margin Strength

Robust gross and healthy EBIT/EBITDA margins reflect efficient manufacturing and cost control. These operating efficiencies create a durable buffer versus raw‑material swings, enabling reinvestment in productivity and sustaining competitiveness across cycles over the medium term.

Capital Efficiency / Equity Base

A 9.2% ROE with a moderate equity ratio suggests the company generates reasonable returns on shareholder capital while maintaining balanced financing. This combination supports incremental growth funding from internal returns and limits dilution risk over the coming months.

Negative Factors

Cash Flow Conversion

Persistent negative operating and free cash flows indicate difficulty converting profits into cash, stressing liquidity and forcing reliance on external funding. Over 2–6 months this constrains capital spending, working‑capital management and erodes financial flexibility for growth initiatives.

High Leverage

A 1.50 debt/equity ratio represents material leverage that raises interest expense and refinancing risk. In a structurally uncertain cost environment, high leverage limits strategic optionality, increases vulnerability to rate moves, and can constrain investment or dividend policy over months.

Low Net Profitability

A thin 3.4% net margin leaves little room to absorb input cost inflation or customer price pressure, reducing retained earnings and free cash. Structurally low bottom‑line resilience can impair the firm's ability to self‑fund growth and makes earnings volatile versus peers.

AB Cotspin India Ltd. Business Overview & Revenue Model

Company Description

A B Cotspin India Limited engages in the manufacture, purchase, and sale of cotton yarns and knitted fabrics in India. It offers cotton, and cotton seed and waste; oil gadh; cloth; mustard seed cake and oils; and oilcakes. The company was formerly known as Ganga Cottex Limited and changed its name to A B Cotspin India Limited in December 2010. A B Cotspin India Limited was incorporated in 1997 and is based in Bathinda, India.

How the Company Makes Money

AB Cotspin India Ltd. generates revenue primarily through the sale of its cotton yarns to garment manufacturers, textile mills, and exporters. The company's revenue model is driven by its ability to produce high-quality products that meet the specific requirements of its clients. Key revenue streams include direct sales to bulk buyers, long-term contracts with major textile manufacturers, and exports to international markets. Additionally, ABCOTS may benefit from strategic partnerships with distributors and suppliers, enhancing its market reach and operational efficiency. The company also focuses on maintaining competitive pricing while ensuring quality, which helps in driving sales volume and profitability.

AB Cotspin India Ltd. Financial Statement Overview

Summary

Strong revenue growth (+17.5%) and healthy EBIT/EBITDA margins (7.2%/11.0%) are positives, but low net margin (3.4%), high leverage (debt-to-equity 1.50), and negative operating/free cash flows materially weaken the overall financial profile.

Income Statement

AB Cotspin India Ltd. has demonstrated strong revenue growth with a 17.5% increase from 2024 to 2025. The gross profit margin stands at 20.8%, indicating efficient production processes. However, the net profit margin is relatively low at 3.4%, suggesting room for improvement in cost management. The EBIT and EBITDA margins are healthy at 7.2% and 11.0%, respectively, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio is high at 1.50, indicating significant leverage which could pose risks if not managed carefully. Return on equity is strong at 9.2%, showing effective use of equity to generate profits. The equity ratio is moderate at 38.4%, suggesting a balanced approach to financing assets through equity.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting challenges in converting profits into cash. Free cash flow to net income ratio is also negative, suggesting difficulties in sustaining operations without external financing.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022
Income Statement
Total Revenue	1.34B	2.96B	2.52B	1.68B	1.40B
Gross Profit	359.60M	617.23M	566.23M	308.69M	347.82M
EBITDA	200.82M	325.24M	273.89M	109.33M	141.58M
Net Income	57.34M	102.13M	66.98M	19.33M	68.33M
Balance Sheet
Total Assets	3.04B	2.88B	1.98B	1.49B	828.03M
Cash, Cash Equivalents and Short-Term Investments	22.03M	1.18M	233.00K	1.03M	6.59M
Total Debt	1.37B	1.66B	1.22B	980.93M	310.09M
Total Liabilities	1.56B	1.78B	1.30B	1.07B	439.79M
Stockholders Equity	1.48B	1.11B	684.64M	425.78M	388.24M
Cash Flow
Free Cash Flow	-904.00M	-665.15M	-367.56M	-627.40M	-16.42M
Operating Cash Flow	-157.35M	-164.72M	-321.84M	-237.03M	135.71M
Investing Cash Flow	-743.47M	-494.66M	-31.60M	-411.54M	-151.53M
Financing Cash Flow	920.65M	660.32M	352.64M	643.00M	21.74M

AB Cotspin India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ABCOTS	54 Neutral	₹8.84B	69.89	―	―	―	―
ALPSINDUS	45 Neutral	₹134.55M	-0.10	―	―	―	―
EUROTEXIND	43 Neutral	₹129.06M	-3.16	―	―	-53.77%	―
GANGOTRI	43 Neutral	₹20.22M	-25.42	―	―	―	―

AB Cotspin India Ltd. Corporate Events

AB Cotspin Publishes Postal Ballot and E-Voting Notice for Special Business

AB Cotspin India Ltd. has published newspaper advertisements in Financial Express and Nawan Zamana announcing the dispatch of a Postal Ballot notice via email and providing e-voting details to seek shareholder approval for special business resolutions. The move, made in compliance with SEBI listing regulations, underscores the company’s use of electronic voting and postal ballot mechanisms to engage shareholders and secure necessary approvals, with the related information also made available on its website.

A B Cotspin India’s Bank Ratings Reaffirmed as Expansion Plan Deferred Amid US Tariff Uncertainty

A B Cotspin India Limited has received an updated credit rating from Infomerics Valuation and Rating Pvt Ltd, which has reaffirmed the company’s long-term bank facilities of Rs 93.68 crore at IVR BBB with a Stable outlook and its short-term bank facilities of Rs 14 crore at IVR A3+. The ratings, covering total bank facilities of Rs 107.68 crore, have been removed from the earlier ‘Rating Watch with Developing Implication’ status and reaffirmed following the company’s decision to defer its capacity expansion plan in response to uncertainty around US tariffs and a review of its FY2025 audited financial performance, indicating a more settled risk profile for lenders and investors despite a cautious operating environment.

AB Cotspin Corrects FY24 Filing Omission, Auditor Affirms True and Fair Financials

AB Cotspin India Ltd has submitted a clarification to the National Stock Exchange regarding its quick financial results for the quarter ended 31 March 2024, acknowledging an inadvertent omission of the date and place in the earlier submission made on 28 May 2024. The company has apologized for the oversight and filed revised financial results, supported by an independent auditor’s report from P. L. Mittal & Co., which confirms that the half-yearly and annual financial statements for FY24 present a true and fair view in accordance with applicable Indian accounting standards and SEBI listing regulations, thereby reinforcing compliance and transparency for investors and regulators.

A B Cotspin Closes Trading Window Ahead of December-Quarter Results

A B Cotspin India Limited has announced the closure of its trading window for designated persons and their immediate relatives from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the quarter ended December 31, 2025, in line with its code of conduct and SEBI’s Prohibition of Insider Trading Regulations, 2015. The company said the date of the board meeting to consider and approve these quarterly results will be notified to the stock exchanges in due course, underscoring its adherence to regulatory norms on trading restrictions ahead of financial disclosures.