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Last Updated on: 22 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 542285 | NSE: AXITA

Fundamental Analysis of Axita Cotton Ltd

Basic Stock Data

Last Updated: April 21, 2024, 9:24 am

Market Cap 590 Cr.
Current Price 22.6
High / Low62.2/18.5
Stock P/E28.1
Book Value 2.23
Dividend Yield0.33 %
ROCE49.1 %
ROE38.4 %
Face Value 1.00

Data Source: screener.in

Competitors of Axita Cotton Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nagreeka Exports Ltd 102 Cr. 32.649.8/17.910.6 36.70.00 %3.82 %2.92 % 5.00
Akshar Spintex Ltd 72.0 Cr. 2.407.08/2.1012.1 1.420.35 %3.66 %6.58 % 1.00
Suryalakshmi Cotton Mills Ltd 131 Cr. 69.889.5/50.916.0 1410.00 %10.3 %5.91 % 10.0
Padam Cotton Yarns Ltd 14.4 Cr. 37.357.0/13.6 12.20.00 %83.3 %61.6 % 10.0
Lambodhara Textiles Ltd 159 Cr. 153241/13244.8 1050.49 %18.4 %17.4 % 5.00
Industry Average95.68 Cr59.0216.7059.260.17%23.90%18.88%6.20

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales127.17236.08168.36286.07204.6391.64130.45125.88227.87388.72266.09
Expenses125.38234.38165.96282.26199.3588.31124.75120.95220.86381.27262.81
Operating Profit1.791.702.403.815.283.335.704.937.017.453.28
OPM %1.41%0.72%1.43%1.33%2.58%3.63%4.37%3.92%3.08%1.92%1.23%
Other Income1.580.764.945.510.990.300.942.781.021.731.36
Interest0.720.190.210.560.170.110.12-0.070.120.110.10
Depreciation0.100.120.140.140.110.300.320.330.300.300.31
Profit before tax2.552.156.998.625.993.226.207.457.618.774.23
Tax %17.25%26.51%22.75%26.80%25.71%28.57%24.35%24.97%24.57%25.77%26.00%
Net Profit2.121.575.406.324.452.294.705.605.756.513.13
EPS in Rs0.080.060.210.240.170.090.180.210.220.250.12

Last Updated: April 10, 2024, 6:18 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 10:59 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1232134846198185531,009
Expenses120210481610808533986
Operating Profit3349101923
OPM %2%1%1%1%1%3%2%
Other Income10001357
Interest2233200
Depreciation0110011
Profit before tax1115202328
Tax %-4%32%35%31%24%26%
Net Profit1004151721
EPS in Rs0.120.020.010.140.590.650.80
Dividend Payout %0%0%0%0%64%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192021-20222022-2023
YoY Net Profit Growth (%)-100.00%275.00%13.33%
Change in YoY Net Profit Growth (%)0.00%375.00%-261.67%

Growth

Compounded Sales Growth
10 Years:%
5 Years:35%
3 Years:4%
TTM:41%
Compounded Profit Growth
10 Years:%
5 Years:71%
3 Years:265%
TTM:18%
Stock Price CAGR
10 Years:%
5 Years:66%
3 Years:124%
1 Year:-57%
Return on Equity
10 Years:%
5 Years:30%
3 Years:39%
Last Year:38%

Last Updated: April 17, 2024, 3:19 am

Balance Sheet

Last Updated: April 22, 2024, 12:46 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital271313202020
Reserves11159173339
Borrowings17151514066
Other Liabilities2532717222115
Total Liabilities23386410710981179
Fixed Assets44333109
CWIP0000000
Investments0000000
Other Assets18346110410671170
Total Assets23386410710981179

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1-116497
Cash from Investing Activity -0-0-0-0-0-1
Cash from Financing Activity 011-3-2-16-2
Net Cash Flow0021-65

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-14.00-12.00-11.00-5.0010.0013.00

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 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days321831423329
Inventory Days20184625
Days Payable1621343210
Cash Conversion Cycle50301414324
Working Capital Days464819131326
ROCE %9%11%26%61%49%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2020Sep 2020Mar 2021Sep 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters73.26%73.26%73.26%72.37%72.37%72.37%72.37%69.65%69.65%69.97%69.97%64.77%
FIIs0.00%0.00%0.00%0.00%6.04%10.02%10.61%11.63%12.45%3.43%5.32%0.46%
Public26.74%26.74%26.74%27.63%21.58%17.60%17.01%18.71%17.90%26.60%24.70%34.77%
No. of Shareholders98991181011181,2253,67618,13321,80866,07564,0571,05,410

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)0.877.402.850.270.43
Diluted EPS (Rs.)0.877.402.850.270.43
Cash EPS (Rs.)0.927.653.190.671.57
Book Value[Excl.RevalReserv]/Share (Rs.)2.6618.5616.6513.8027.17
Book Value[Incl.RevalReserv]/Share (Rs.)2.6618.5616.6513.8027.17
Dividend / Share (Rs.)0.000.500.000.000.00
Revenue From Operations / Share (Rs.)28.11418.61472.22369.67325.76
PBDIT / Share (Rs.)1.2311.007.003.074.66
PBIT / Share (Rs.)1.1810.756.662.663.79
PBT / Share (Rs.)1.169.894.150.411.05
Net Profit / Share (Rs.)0.867.402.850.260.70
PBDIT Margin (%)4.382.621.480.821.42
PBIT Margin (%)4.192.561.410.721.16
PBT Margin (%)4.132.360.870.110.32
Net Profit Margin (%)3.081.760.600.070.21
Return on Networth / Equity (%)32.5239.8517.111.952.59
Return on Capital Employeed (%)39.6857.9138.0919.2913.70
Return On Assets (%)21.0813.323.480.541.20
Long Term Debt / Equity (X)0.000.000.040.000.01
Total Debt / Equity (X)0.000.000.610.780.83
Asset Turnover Ratio (%)5.827.617.219.447.05
Current Ratio (X)3.161.461.231.321.71
Quick Ratio (X)2.851.391.141.201.21
Inventory Turnover Ratio (X)0.232.088.1611.478.13
Dividend Payout Ratio (NP) (%)5.760.000.000.000.00
Dividend Payout Ratio (CP) (%)5.430.000.000.000.00
Earning Retention Ratio (%)94.240.000.000.000.00
Cash Earning Retention Ratio (%)94.570.000.000.000.00
Interest Coverage Ratio (X)72.2412.862.791.361.70
Interest Coverage Ratio (Post Tax) (X)51.759.652.131.121.26
Enterprise Value (Cr.)1107.98280.7956.7983.1467.45
EV / Net Operating Revenue (X)2.000.340.090.170.31
EV / EBITDA (X)45.6912.996.1920.6822.10
MarketCap / Net Operating Revenue (X)2.020.340.080.140.24
Retention Ratios (%)94.230.000.000.000.00
Price / BV (X)21.337.792.443.982.99
Price / Net Operating Revenue (X)2.020.340.080.140.24
EarningsYield0.010.050.070.000.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 24.14

The stock is undervalued by 6.82% compared to the current price ₹22.6

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 27.50, which is a positive sign.
  3. The company has higher reserves (16.43 cr) compared to borrowings (10.43 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (401.57 cr) and profit (11.29 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 22.50, 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 Axita Cotton Ltd:
    1. Net Profit Margin: 3.08%
      • 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: 39.68% (Industry Average ROCE: 24.87%)
      • 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%: 32.52% (Industry Average ROE: 21.9%)
      • 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): 51.75
      • 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: 2.85
      • 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: 28.1 (Industry average Stock P/E: 18.66)
      • 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: 0.00
      • 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

Axita Cotton Ltd. is a Public Limited Listed company incorporated on 16/07/2013 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L17200GJ2013PLC076059 and registration number is 076059. Currently Company is involved in the business activities of Cotton ginning, cleaning and bailing. Company’s Total Operating Revenue is Rs. 822.82 Cr. and Equity Capital is Rs. 19.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Cotton BlendedServey No. 324, 357, 358, Kadi Gujarat 382715cs@axitacotton.com
http://www.axitacotton.com
Management
NamePosition Held
Mr. Nitinbhai Govindbhai PatelChairman & Managing Director
Mr. Kushal Nitinbhai PatelManaging Director
Mr. Utsav Himanshu TrivediIndependent Director
Mr. Vinod Kanubhai RanaIndependent Director
Mr. Kunjal Jayantkumar SoniIndependent Director
Ms. Apeksha Sanjaykumar VyasIndependent Director

Axita Cotton Ltd. Share Price Update

Share PriceValue
Today₹22.71
Previous Day₹22.71

FAQ

What is the latest fair value of Axita Cotton Ltd?

The latest fair value of Axita Cotton Ltd is 24.14.

What is the Market Cap of Axita Cotton Ltd?

The Market Cap of Axita Cotton Ltd is 590 Cr..

What is the current Stock Price of Axita Cotton Ltd as on 21 April 2024?

The current stock price of Axita Cotton Ltd as on 21 April 2024 is 22.6.

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

In FY 2024, the High / Low of Axita Cotton Ltd stocks is ₹62.2/18.5.

What is the Stock P/E of Axita Cotton Ltd?

The Stock P/E of Axita Cotton Ltd is 28.1.

What is the Book Value of Axita Cotton Ltd?

The Book Value of Axita Cotton Ltd is 2.23.

What is the Dividend Yield of Axita Cotton Ltd?

The Dividend Yield of Axita Cotton Ltd is 0.33 %.

What is the ROCE of Axita Cotton Ltd?

The ROCE of Axita Cotton Ltd is 49.1 %.

What is the ROE of Axita Cotton Ltd?

The ROE of Axita Cotton Ltd is 38.4 %.

What is the Face Value of Axita Cotton Ltd?

The Face Value of Axita Cotton Ltd is 1.00.

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 Axita Cotton 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