Ambika Cotton Mills Limited (AMBIKCO) AI Stock Analysis

• Market Cap: ₹7.46B
• Dividend Yield: 2.89%
• Average Volume (3M): 424.00
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.11
• Revenue Growth: -15.70%
• EPS Growth: -4.19%
• Country: IN
• Employees: 1,802
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 27.84
• Shares Outstanding: 5,725,000
• 10 Day Avg. Volume: 482
• 30 Day Avg. Volume: 424
• PEG Ratio: 2.59
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 7.33
• 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): 22,292.6
• Revenue Forecast (FY): ₹818.91B

• Rating: 63 Neutral
• Price Target: ₹1,360.00 ▲(9.16% Upside)

Ambika Cotton Mills Limited's overall stock score is primarily influenced by its strong financial performance, characterized by profitability and operational efficiency. However, the bearish technical indicators and challenges in revenue growth and cash flow stability weigh down the score. The stock's reasonable valuation and attractive dividend yield provide some support, but the current market momentum is a significant concern.

Positive Factors

Operational Efficiency

Ambika Cotton Mills' operational efficiency and profitability indicate effective cost management and robust business operations, supporting long-term sustainability.

Balance Sheet Health

The company's solid balance sheet with low leverage risk provides financial stability and flexibility to navigate market challenges and invest in growth opportunities.

Market Reach

By leveraging partnerships and export sales, Ambika Cotton Mills expands its market presence, diversifying revenue streams and reducing dependency on any single market.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential market or operational challenges, which could impact long-term competitiveness and profitability if not addressed.

Cash Flow Volatility

Volatile cash flows can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability and strategic flexibility.

Stockholders' Equity Decline

A decline in stockholders' equity may indicate underlying financial issues, potentially affecting investor confidence and the company's ability to raise capital.

Ambika Cotton Mills Limited Business Overview & Revenue Model

Company Description

Ambika Cotton Mills Limited manufactures and sells specialty cotton yarns, waste cotton, and knitted fabrics in India, other Asian countries, Europe, and North America. It also operates wind mills with an installed capacity of 27.4 MW in Tirunelveli, Dharapuram, and Theni in the State of Tamilnadu. The company serves the manufacturers of branded shirts and T-shirts. Ambika Cotton Mills Limited was incorporated in 1988 and is headquartered in Coimbatore, India.

How the Company Makes Money

Ambika Cotton Mills Limited generates revenue primarily through the manufacturing and sale of cotton yarn. The company's key revenue streams include the production of compact and specialty yarns, which are sold to textile manufacturers and apparel producers globally. Ambika Cotton Mills benefits from its strategic focus on quality, enabling it to command premium pricing for its products. Additionally, the company has established significant partnerships with leading fashion and textile brands, further enhancing its market presence and contributing to its earnings. Factors such as efficient production processes, a strong supply chain, and a focus on sustainable practices also play a crucial role in the company's financial performance.

Ambika Cotton Mills Limited Financial Statement Overview

Summary

Ambika Cotton Mills Limited demonstrates strong profitability and operational efficiency, with a solid balance sheet and manageable debt levels. However, challenges in revenue growth and cash flow stability need attention.

Income Statement

Ambika Cotton Mills Limited has shown consistent revenue generation, with a slight decrease in recent years. Gross Profit Margins and Net Profit Margins are healthy, indicating efficient cost management. However, the revenue growth rate has been negative in the last two fiscal years, which is a concern. The EBITDA and EBIT margins are strong, reflecting good operational efficiency.

Balance Sheet

The company maintains a strong equity base with a low level of debt, as indicated by a favorable debt-to-equity ratio. The equity ratio is robust, suggesting financial stability. However, a decrease in stockholders' equity in recent years needs monitoring. Overall, the balance sheet reflects sound financial health with low leverage risk.

Cash Flow

Cash flows have been volatile, with significant fluctuations in operating cash flow. The free cash flow position improved in the latest fiscal year but has experienced negative growth in previous years. The operating cash flow to net income ratio indicates room for improvement in converting income into cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.85B	7.02B	8.23B	8.17B	8.79B	6.15B
Gross Profit	2.38B	1.92B	2.62B	1.64B	3.28B	1.82B
EBITDA	1.20B	1.30B	1.33B	1.81B	2.75B	1.25B
Net Income	601.30M	657.40M	629.74M	1.12B	1.80B	679.47M
Balance Sheet
Total Assets	0.00	11.51B	10.69B	9.80B	8.24B	6.29B
Cash, Cash Equivalents and Short-Term Investments	2.07B	2.07B	2.17B	2.77B	2.80B	25.63M
Total Debt	0.00	507.20M	819.76M	0.00	0.00	1.01M
Total Liabilities	-9.04B	2.47B	2.11B	1.64B	986.75M	639.22M
Stockholders Equity	9.04B	9.04B	8.59B	8.17B	7.25B	5.65B
Cash Flow
Free Cash Flow	0.00	1.02B	-1.89B	-982.50M	2.89B	782.32M
Operating Cash Flow	0.00	1.29B	-1.38B	-798.20M	3.02B	1.05B
Investing Cash Flow	0.00	-389.80M	-258.71M	-39.20M	-30.06M	-246.29M
Financing Cash Flow	0.00	-512.90M	428.68M	-264.40M	-213.69M	-837.32M

Ambika Cotton Mills Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1245.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AMBIKCO, the sentiment is Negative. The current price of 1245.9 is below the 20-day moving average (MA) of 1300.95, below the 50-day MA of 1363.37, and below the 200-day MA of 1416.38, indicating a bearish trend. The MACD of -27.67 indicates Positive momentum. The RSI at 27.01 is Positive, neither overbought nor oversold. The STOCH value of 5.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AMBIKCO.

Ambika Cotton Mills Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMBIKCO	63 Neutral	₹7.46B	12.04	―	2.89%	-15.70%	-4.19%
MAGADSUGAR	63 Neutral	₹7.67B	7.80	―	2.49%	8.96%	-19.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NAHARPOLY	60 Neutral	₹7.73B	13.50	―	0.39%	8.64%	182.96%
NAHARSPING	48 Neutral	₹7.39B	34.11	―	0.49%	3.67%	―