Ambika Cotton Mills Limited
Ambika Cotton Mills Limited Fundamental Analysis
Ambika Cotton Mills Limited (AMBIKCO.NS) shows weak financial fundamentals with a PE ratio of 12.76, profit margin of 8.96%, and ROE of 6.91%. The company generates $7.0B in annual revenue with weak year-over-year growth of -14.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMBIKCO.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakAMBIKCO.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMBIKCO.NS shows balanced valuation metrics.
Growth Score
WeakAMBIKCO.NS faces weak or negative growth trends.
Financial Health Score
ExcellentAMBIKCO.NS maintains a strong and stable balance sheet.
Profitability Score
WeakAMBIKCO.NS struggles to sustain strong margins.
Key Financial Metrics
Is AMBIKCO.NS Expensive or Cheap?
P/E Ratio
AMBIKCO.NS trades at 12.76 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMBIKCO.NS's PEG of 8.86 indicates potential overvaluation.
Price to Book
The market values Ambika Cotton Mills Limited at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.22 times EBITDA. This is generally considered low.
How Well Does AMBIKCO.NS Make Money?
Net Profit Margin
For every $100 in sales, Ambika Cotton Mills Limited keeps $8.96 as profit after all expenses.
Operating Margin
Core operations generate 11.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.91 in profit for every $100 of shareholder equity.
ROA
Ambika Cotton Mills Limited generates $5.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ambika Cotton Mills Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Ambika Cotton Mills Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
AMBIKCO.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How AMBIKCO.NS Stacks Against Its Sector Peers
| Metric | AMBIKCO.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.76 | 24.85 | Better (Cheaper) |
| ROE | 6.91% | 1165.00% | Weak |
| Net Margin | 8.96% | 749.00% | Weak |
| Debt/Equity | 0.00 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 5.13 | 9.23 | Strong Liquidity |
| ROA | 5.55% | 1271.00% | Weak |
AMBIKCO.NS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ambika Cotton Mills Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.44%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
25.80%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
160.20%
Industry Style: Cyclical, Growth, Discretionary
High Growth