Ambika Cotton Mills Ltd

Ambika Cotton Mills Ltd
Textiles
FV – Rs 10; 52wks H/L –1148.25/630.5; TTQ – 273; CMP – Rs 835(As On March 8 2016; 12:00) ;    

Market Cap – Rs 490.71 Crs                        

Standalone Financials and Valuations for 9Months FY16 (Amt in Rs.Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total  
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
5.87 358 1.3 372 33.93 610 78.29 10.7 35.65 1.4 48.63 0.45

 

Standalone Financials and Valuations for FY15 (Amt in Rs Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total  
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
5.87 301 4 496 51.18 513 87.2 9.6 35.65 1.6 48.63 0.45

 

Valuation Parameters:

  1. Market Cap/Sales – 0.99
  2. Long Term Debt to Equity – 0.01
  3. ROE% – 17

 

The Company declared 140% dividend during 2014-15 i.e Rs.14 for each share held.

The Company, on account of manufacturing speciality cotton yarn, continues to have good demand for its products and continues to strengthen its production base by modernization and adding balancing equipments. The Company has installed windmills for 100% of its captive requirements and installed EHT line (110 KVA Sub-Station) for smooth flow of quality power. These measures will continue to support the operations of the company.

 

Overview:

  • Ambika Cotton Mills Limited (ACML) is an India-based company engaged in manufacturing and selling specialty cotton yarn. The Company operates through two segments, including Textiles and Windmills.
  • The Company’s products are made from various imported and Indian cotton. The Company manufactures Compact and Elitwist cotton yarn for hosiery and weaving.
  • The Company manufactures 100% cotton yarn counts varying from 24s to 140s combed, which are used for the manufacture of shirts and t-shirts globally.
  • The Company’s Spinning Plants are located at Kanniyapuram, Dindigul, and Windmills are located in Tirunelveli, Dharapuram and Theni in Tamil Nadu. The power generated from windmills is for captive consumption for manufacturing of cotton yarn.
  • Its four manufacturing units are situated in Dindigul, Tamil Nadu, with a total spindle capacity of 110,000, of which 100,000 spindles is of compacting system.

Management:

  • P V Chandran – CMD
  • M Vijaykumar – CFO

 

The Equity Capital is @ Rs 5.87 Crs consisting of 5875000 equity Shares of FV Rs 10 currently held as under

 

None Of the Promoter’s Holding is Pledged.

 

Major Non-Promoter Holdings:

Sr.No Non – Promoters No. of Shares held % of shares held
1 Valuequest India Moat Fund Ltd 142801 2.43
2 Catamaran Management Services Pvt.Ltd 117498 2
3 Saffron Agencies Ltd 111930 1.91
4 Apple Finance Ltd 180233 3.07
5 Eicher Goodearth Pvt Ltd 130093 2.21
6 Globe Capital Market Ltd 95610 1.63
Total 778165 13.25

 

 

 

Standalone Financial Trends (In Rs.Crs) :

Particulars FY15 FY14 FY13 FY12 FY11
Equity Paid Up 5.87 5.87 5.87 5.87 5.87
Networth 301 260 220 196 175
Total Debt 49 68 70 120 260
Net Sales 496 477 398 390 327
Other Income 3 0.2 0.3 0.7 9
PAT 51.18 48.14 30.98 23.88 53.02
Book Value (Rs) 513 443 375 334 298
EPS (Rs) 87.2 82.0 52.8 40.7 90.3

 

Risks:

  • Government policies.
  • Volatile Economic Environment.
  • Evacuation of 100% Wind energy generated to State Grid.