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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 531978 | NSE: AMBIKCO

Ambika Cotton Mills Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:32 am

Market Cap 925 Cr.
Current Price 1,616
High / Low2,198/1,386
Stock P/E14.5
Book Value 1,500
Dividend Yield2.17 %
ROCE11.2 %
ROE6.90 %
Face Value 10.0
PEG Ratio-11.46

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ambika Cotton Mills Ltd

Competitors of Ambika Cotton Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hisar Spinning Mills Ltd 28.0 Cr. 74.884.0/38.014.5 59.60.00 %12.5 %9.50 % 10.0
Rudra Ecovation Ltd 673 Cr. 64.182.6/13.6791 2.150.00 %1.92 %4.05 % 1.00
H P Cotton Textile Mills Ltd 56.6 Cr. 144194/99.924.4 35.10.00 %4.39 %6.57 % 10.0
Gujarat Hy-Spin Ltd 25.1 Cr. 15.015.4/8.50148 11.40.00 %4.31 %0.90 % 10.0
Gem Spinners India Ltd 30.6 Cr. 4.987.35/3.26 0.260.00 %9.62 %% 5.00
Industry Average3,093.17 Cr201.25103.06126.180.28%35.05%10.57%7.41

All Competitor Stocks of Ambika Cotton Mills Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales188220252260254219188186222199196206209
Expenses131152176192196176146155197173169175175
Operating Profit56687669584342312526273034
OPM %30%31%30%26%23%20%22%17%11%13%14%15%16%
Other Income01223344114447
Interest0000112335655
Depreciation7777777777776
Profit before tax49627063533837252718182230
Tax %26%26%26%26%27%26%27%27%23%28%28%26%28%
Net Profit36465247392827182113131622
EPS in Rs62.6079.4890.5781.5767.9049.0546.8531.6736.2422.9222.7428.1037.61

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales398477495492528584656623633921848823811
Expenses311373395399423471531517507650672713693
Operating Profit8710410093105113125106126271176111118
OPM %22%22%20%19%20%19%19%17%20%29%21%13%15%
Other Income0012111105142318
Interest1913764610107272021
Depreciation27322930292929282929302827
Profit before tax4160645972808769902441528588
Tax %24%19%20%25%23%23%27%24%25%26%27%26%
Net Profit3148514456616352681801126364
EPS in Rs52.7381.9487.1175.6897.36106.67110.3691.28118.69314.22195.44109.99111.37
Dividend Payout %18%15%16%20%0%33%27%16%30%11%18%32%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)54.84%6.25%-13.73%27.27%8.93%3.28%-17.46%30.77%164.71%-37.78%-43.75%
Change in YoY Net Profit Growth (%)0.00%-48.59%-19.98%41.00%-18.34%-5.65%-20.74%48.23%133.94%-202.48%-5.97%

Ambika Cotton Mills Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:5%
3 Years:9%
TTM:-1%
Compounded Profit Growth
10 Years:2%
5 Years:-2%
3 Years:-5%
TTM:-32%
Stock Price CAGR
10 Years:14%
5 Years:13%
3 Years:-7%
1 Year:7%
Return on Equity
10 Years:15%
5 Years:14%
3 Years:16%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 4:06 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital666666666666
Reserves215254295329369423469500559719811853
Borrowings94100632092889690-0-082
Other Liabilities1089586699310750516499164129
Total Liabilities4234554504244765656136266298249801,069
Fixed Assets291289270255254259260246245227215232
CWIP010-0-00164003
Investments000000000001
Other Assets131165180169222305352373380596765833
Total Assets4234554504244765656136266298249801,069

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 8738436767161050103302-80-138
Cash from Investing Activity -9-28-9-13-28-32-46-3-25-3-4-26
Cash from Financing Activity -79-8-34-52-321036-46-84-21-2643
Net Cash Flow-11026-511-5277-110-121

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-7.004.0037.0073.0096.0085.0036.0037.00126.00271.00176.0029.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days644142887118181711
Inventory Days143175173150167233239281285165280344
Days Payable7743272349596921438755
Cash Conversion Cycle72136150141146182239283272140211300
Working Capital Days225379959914217119619194147223
ROCE %18%22%20%18%21%20%19%14%17%38%21%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters50.17%50.17%50.17%50.17%50.17%50.17%50.17%50.17%50.17%50.17%50.17%50.17%
FIIs1.12%2.30%3.42%3.99%3.89%3.45%3.06%2.67%0.88%0.46%0.35%0.45%
DIIs0.02%0.02%0.13%0.08%0.02%0.02%0.09%0.11%0.14%0.13%0.01%0.01%
Public48.69%47.51%46.27%45.76%45.92%46.36%46.68%47.06%48.81%49.23%49.47%49.37%
No. of Shareholders19,22322,42524,82726,88527,89428,32327,65827,74327,29826,09326,41926,037

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Taurus Flexi Cap Fund10,0000.552.1410,0002024-10-080%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)110.00195.45314.21118.6891.28
Diluted EPS (Rs.)110.00195.45314.21118.6891.28
Cash EPS (Rs.)158.53247.54365.55169.23139.46
Book Value[Excl.RevalReserv]/Share (Rs.)1501.561426.401266.14987.26883.96
Book Value[Incl.RevalReserv]/Share (Rs.)1501.561426.401266.14987.26883.96
Dividend / Share (Rs.)35.0035.0035.0035.0015.00
Revenue From Operations / Share (Rs.)1439.621480.351607.891106.311088.37
PBDIT / Share (Rs.)230.80329.60479.67219.69185.27
PBIT / Share (Rs.)182.38277.51428.33169.14137.09
PBT / Share (Rs.)149.04266.34426.18157.88120.76
Net Profit / Share (Rs.)110.10195.45314.21118.6891.28
PBDIT Margin (%)16.0322.2629.8319.8517.02
PBIT Margin (%)12.6618.7426.6315.2812.59
PBT Margin (%)10.3517.9926.5014.2711.09
Net Profit Margin (%)7.6413.2019.5410.728.38
Return on Networth / Equity (%)7.3313.7024.8112.0210.32
Return on Capital Employeed (%)11.7718.8332.6116.3814.63
Return On Assets (%)5.8811.4121.8410.808.34
Total Debt / Equity (X)0.090.000.000.000.13
Asset Turnover Ratio (%)0.800.931.271.011.01
Current Ratio (X)4.485.538.219.724.02
Quick Ratio (X)1.622.635.021.530.65
Inventory Turnover Ratio (X)1.172.111.951.151.49
Dividend Payout Ratio (NP) (%)0.0017.9011.1312.6332.86
Dividend Payout Ratio (CP) (%)0.0014.139.578.8621.51
Earning Retention Ratio (%)0.0082.1088.8787.3767.14
Cash Earning Retention Ratio (%)0.0085.8790.4391.1478.49
Interest Coverage Ratio (X)6.9229.50223.1019.5111.35
Interest Coverage Ratio (Post Tax) (X)4.3018.49147.1411.546.59
Enterprise Value (Cr.)674.09511.061067.68508.14365.60
EV / Net Operating Revenue (X)0.810.601.160.800.58
EV / EBITDA (X)5.112.713.894.043.45
MarketCap / Net Operating Revenue (X)0.980.931.460.800.48
Retention Ratios (%)0.0082.0988.8687.3667.13
Price / BV (X)0.940.961.860.900.59
Price / Net Operating Revenue (X)0.980.931.460.800.48
EarningsYield0.070.140.130.130.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ambika Cotton Mills Ltd as of October 11, 2024 is: ₹1,533.32

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, Ambika Cotton Mills Ltd is Overvalued by 5.12% compared to the current share price ₹1,616.00

Intrinsic Value of Ambika Cotton Mills Ltd as of October 11, 2024 is: ₹1,513.92

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, Ambika Cotton Mills Ltd is Overvalued by 6.32% compared to the current share price ₹1,616.00

Last 5 Year EPS CAGR: -1.27%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.92%, which is a positive sign.
  2. The company has higher reserves (483.00 cr) compared to borrowings (46.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (637.62 cr) and profit (91.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 126.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 189.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ambika Cotton Mills Ltd:
    1. Net Profit Margin: 7.64%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.77% (Industry Average ROCE: 33.16%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.33% (Industry Average ROE: 8.28%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.3
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.62
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 14.5 (Industry average Stock P/E: 75.21)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.09
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ambika Cotton Mills Ltd. is a Public Limited Listed company incorporated on 06/10/1988 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L17115TZ1988PLC002269 and registration number is 002269. Currently company belongs to the Industry of Textiles - Spinning - Cotton Blended. Company’s Total Operating Revenue is Rs. 920.52 Cr. and Equity Capital is Rs. 5.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton Blended9-A, Valluvar Street, Coimbatore Tamil Nadu 641012ambika@acmills.in
http://www.acmills.in
Management
NamePosition Held
Mr. P V ChandranChairman & Managing Director
Mrs. Vijayalakshmi NarendraDirector
Dr. K VenkatachalamDirector
Mr. E M NagasivamDirector
Mrs. Bhavya ChandranDirector
Mrs. Vidya Jyothish PillaiDirector

FAQ

What is the latest fair value of Ambika Cotton Mills Ltd?

The latest fair value of Ambika Cotton Mills Ltd is ₹1533.32.

What is the Market Cap of Ambika Cotton Mills Ltd?

The Market Cap of Ambika Cotton Mills Ltd is 925 Cr..

What is the current Stock Price of Ambika Cotton Mills Ltd as on 11 October 2024?

The current stock price of Ambika Cotton Mills Ltd as on 11 October 2024 is ₹1,616.

What is the High / Low of Ambika Cotton Mills Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ambika Cotton Mills Ltd stocks is 2,198/1,386.

What is the Stock P/E of Ambika Cotton Mills Ltd?

The Stock P/E of Ambika Cotton Mills Ltd is 14.5.

What is the Book Value of Ambika Cotton Mills Ltd?

The Book Value of Ambika Cotton Mills Ltd is 1,500.

What is the Dividend Yield of Ambika Cotton Mills Ltd?

The Dividend Yield of Ambika Cotton Mills Ltd is 2.17 %.

What is the ROCE of Ambika Cotton Mills Ltd?

The ROCE of Ambika Cotton Mills Ltd is 11.2 %.

What is the ROE of Ambika Cotton Mills Ltd?

The ROE of Ambika Cotton Mills Ltd is 6.90 %.

What is the Face Value of Ambika Cotton Mills Ltd?

The Face Value of Ambika Cotton Mills Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ambika Cotton Mills Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE