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:
- Market Cap/Sales – 0.99
- Long Term Debt to Equity – 0.01
- 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.
