BSE:531978

Stock Analysis Report

Executive Summary

Ambika Cotton Mills Limited manufactures and sells specialty cotton yarns, waste cotton, and knitted fabrics in India, other Asian countries, Europe, and North America.

Rewards

Trading at 33.2% below its fair value

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (₹5B)



Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.

Share Price & News

How has Ambika Cotton Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 531978 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

531978

0.3%

IN Luxury

-1.3%

IN Market


1 Year Return

-28.1%

531978

8.6%

IN Luxury

5.2%

IN Market

Return vs Industry: 531978 underperformed the Indian Luxury industry which returned 8.6% over the past year.

Return vs Market: 531978 underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

531978IndustryMarket
7 Day-1.4%0.3%-1.3%
30 Day-1.6%-0.4%-0.2%
90 Day-3.6%7.8%7.6%
1 Year-25.7%-28.1%9.4%8.6%7.2%5.2%
3 Year-13.4%-18.4%58.9%56.8%30.3%23.4%
5 Year84.3%67.5%101.1%97.2%39.3%26.8%

Price Volatility Vs. Market

How volatile is Ambika Cotton Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ambika Cotton Mills undervalued compared to its fair value and its price relative to the market?

33.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 531978 (₹854.8) is trading below our estimate of fair value (₹1280.56)

Significantly Below Fair Value: 531978 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 531978 is good value based on its PE Ratio (8.9x) compared to the Luxury industry average (10.4x).

PE vs Market: 531978 is good value based on its PE Ratio (8.9x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531978's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531978 is overvalued based on its PB Ratio (1x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Ambika Cotton Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.7%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ambika Cotton Mills has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ambika Cotton Mills performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531978 has high quality earnings.

Growing Profit Margin: 531978's current net profit margins (8.8%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: 531978's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: 531978's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 531978 had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Luxury industry average (1%).


Return on Equity

High ROE: 531978's Return on Equity (11%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ambika Cotton Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 531978's short term assets (₹3.6B) exceed its short term liabilities (₹973.2M).

Long Term Liabilities: 531978's short term assets (₹3.6B) exceed its long term liabilities (₹325.5M).


Debt to Equity History and Analysis

Debt Level: 531978's debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: 531978's debt to equity ratio has reduced from 13.4% to 3.8% over the past 5 years.

Debt Coverage: 531978's debt is well covered by operating cash flow (312.9%).

Interest Coverage: 531978's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet

Inventory Level: 531978 has a high level of physical assets or inventory.

Debt Coverage by Assets: 531978's debt is covered by short term assets (assets are 19x debt).


Next Steps

Dividend

What is Ambika Cotton Mills's current dividend yield, its reliability and sustainability?

3.51%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 531978's dividend (3.51%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 531978's dividend (3.51%) is in the top 25% of dividend payers in the Indian market (2.48%)


Stability and Growth of Payments

Stable Dividend: 531978's dividend payments have been volatile in the past 10 years.

Growing Dividend: 531978's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.2%), 531978's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Ambika Cotton Mills's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Puthan Chandran (69yo)

31.2yrs

Tenure

₹2,500,000

Compensation

Sri. Puthan Veedu Chandran has been a Managing Director and an Executive Director at Ambika Cotton Mills Ltd. since October 6, 1988 and serves as its Chairman and is its Promoter. 


CEO Compensation Analysis

Compensation vs Market: Puthan's total compensation ($USD34.97K) is about average for companies of similar size in the Indian market ($USD33.57K).

Compensation vs Earnings: Puthan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.3yrs

Average Tenure

Experienced Management: 531978's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

11.9yrs

Average Tenure

Experienced Board: 531978's board of directors are seasoned and experienced ( 11.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,808,23429 Aug 19
Puthan Chandran
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares2,000
Max Price₹904.12
Buy₹6,903,79827 Aug 19
Puthan Chandran
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares8,000
Max Price₹862.97

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Puthan Chandran (69yo)

    Chairman & MD

    • Tenure: 31.2yrs
    • Compensation: ₹2.50m
  • Radheshyam Padia

    Company Secretary

    • Tenure: 7.3yrs
  • M. Vijayakumar

    Chief Financial Officer

    • Tenure: 0yrs
  • R Swaminathan

    Compliance Officer

    • Tenure: 1.1yrs

Board Members

  • Puthan Chandran (69yo)

    Chairman & MD

    • Tenure: 31.2yrs
    • Compensation: ₹2.50m
  • Karuppiah Venkatachalam

    Non-Executive & Independent Director

    • Tenure: 17.4yrs
    • Compensation: ₹200.00k
  • Kangeyam Sreedharan

    Non-Executive & Independent Director

    • Tenure: 25.2yrs
    • Compensation: ₹150.00k
  • Bhavya Chandran

    Non Executive Director

    • Tenure: 11.9yrs
    • Compensation: ₹100.00k
  • Vidya Pillai

    Non Executive Director

    • Tenure: 7.8yrs
    • Compensation: ₹200.00k
  • E. Nagasivam

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹150.00k

Company Information

Ambika Cotton Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ambika Cotton Mills Limited
  • Ticker: 531978
  • Exchange: BSE
  • Founded: 1988
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹4.894b
  • Shares outstanding: 5.73m
  • Website: https://www.acmills.in

Number of Employees


Location

  • Ambika Cotton Mills Limited
  • Sivanandha Colony
  • 15, Valluvar Street
  • Coimbatore
  • Tamil Nadu
  • 641012
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531978BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2005
AMBIKCONSEI (National Stock Exchange of India)YesEquity SharesININRApr 2005

Biography

Ambika Cotton Mills Limited manufactures and sells specialty cotton yarns, waste cotton, and knitted fabrics in India, other Asian countries, Europe, and North America. The company operates in two segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:30
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.