Ambika Cotton Mills Limited (AMBIKCO) AI Stock Analysis

• Market Cap: ₹7.39B
• Dividend Yield: 2.91%
• Average Volume (3M): 424.00
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.98
• Revenue Growth: -15.70%
• EPS Growth: -4.19%
• Country: IN
• Employees: 1,802
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 26.50
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹1,500.00 ▲(20.58% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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

Strong profitability and margins

Consistently healthy gross and net margins and strong EBITDA/EBIT indicate durable cost control and operating efficiency. That margin strength supports resilience to cotton and energy cost swings, enables reinvestment and sustained cash generation over the next several months.

Solid balance sheet with low leverage

A robust equity ratio and low debt provide financial flexibility and lower refinancing risk. This balance sheet strength helps absorb commodity price shocks, fund working capital or selective capex, and supports stable operations and strategic choices over the medium term.

Focused on higher-value fine-count and compact yarns

A product mix centered on compact and fine-count yarns positions the company toward higher-value, less commoditized segments. This structural differentiation tends to sustain better realizations, stickier customer relationships, and margin insulation versus plain commodity yarn over coming quarters.

Negative Factors

Declining revenue trend

A persistent revenue decline reduces scale benefits and may signal soft demand, lost market share, or pricing pressure. Continued negative top-line trends can limit ability to leverage fixed costs, compress margins, and constrain reinvestment and growth initiatives over the next several months.

Volatile operating cash flow and cash conversion

Significant swings in operating cash flow weaken predictability of internal funding for working capital and capex. Even with recent improvement, volatile cash conversion raises short-to-medium term funding risk, limiting capacity to smooth costs or pursue growth without external financing.

Recent decrease in shareholders' equity

A falling equity base can reflect retained losses or capital changes, eroding the financial cushion against shocks. Continued declines would reduce leverage capacity and raise vulnerability to adverse cycles, constraining strategic flexibility and investment in the medium term.

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, the company faces challenges in revenue growth and cash flow stability. Continued focus on enhancing cash flow generation and improving revenue growth could strengthen the company's financial position further.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.84B	7.02B	8.23B	8.17B	8.79B	6.15B
Gross Profit	2.27B	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	620.00M	657.40M	629.74M	1.12B	1.80B	679.47M
Balance Sheet
Total Assets	11.33B	11.51B	10.69B	9.80B	8.24B	6.29B
Cash, Cash Equivalents and Short-Term Investments	2.02B	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	1.97B	2.47B	2.11B	1.64B	986.75M	639.22M
Stockholders Equity	9.36B	9.04B	8.59B	8.17B	7.25B	5.65B
Cash Flow
Free Cash Flow	1.27B	1.02B	-1.89B	-982.50M	2.89B	782.32M
Operating Cash Flow	1.68B	1.29B	-1.38B	-798.20M	3.02B	1.05B
Investing Cash Flow	-472.20M	-389.80M	-258.71M	-39.20M	-30.06M	-246.29M
Financing Cash Flow	-581.40M	-512.90M	428.68M	-264.40M	-213.69M	-837.32M

Ambika Cotton Mills Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1244.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1244 is below the 20-day moving average (MA) of 1356.75, below the 50-day MA of 1300.66, and below the 200-day MA of 1389.55, indicating a bearish trend. The MACD of -2.70 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 4.18 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	₹7.39B	11.65	―	2.91%	-15.70%	-4.19%
MAGADSUGAR	63 Neutral	₹6.08B	7.06	―	2.49%	8.96%	-19.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NAHARPOLY	60 Neutral	₹6.01B	7.41	―	0.41%	8.64%	182.96%
NAHARSPING	53 Neutral	₹7.46B	-13.61	―	0.51%	3.67%	―