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Ambika Cotton Mills Ltd

AMBIKCO

BSE
NSE

Consumer Discretionary / Textiles

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NSE / BSE

About

Ambika Cotton Mills Ltd

Company Overview

Ambika Cotton Mills Limited (ACML) was incorporated as Ambika Cotton Mills Private Ltd on October 6, 1988, and subsequently converted into a public limited company on September 5, 1994. Headquartered in Coimbatore, India, the company is engaged in manufacturing and selling specialty cotton yarn, catering to the needs of manufacturers of premium branded shirts and t-shirts globally.

The company operates as a specialized textile manufacturer, focusing on premium cotton yarn production. It manufactures 100% cotton Compact yarn counts varying from the 20s to 120s combed, which is primarily used for the manufacture of premium branded shirts and t-shirts. Ambika Cotton Mills produces premium quality compact yarn by optimal blending of imported and indigenous cotton, particularly suitable for finer shirting requirements.

Business Operations and Infrastructure

Ambika Cotton Mills operates with a total installed spindle capacity of approximately 108,288 compact facilities housed in four units. Its knitting facility converts 40,000 kilograms (Kgs) of yarn per day into fabrics, showcasing a robust manufacturing infrastructure with multiple production facilities strategically located across Tamil Nadu.

The spinning plants are located at Kanniyapuram and Dindigul, while the windmills are situated in Tirunelveli, Dharapuram, and Theni in the State of Tamil Nadu. The company has installed 27.4 megawatts (MW) of wind power capacity for captive consumption of the spinning segment. This renewable energy infrastructure demonstrates the company's commitment to sustainable manufacturing practices and cost optimization.

The company operates through two segments: Textiles and Windmills. The textile segment remains the core business focus, while the windmill segment supports the company's energy requirements and provides additional revenue streams.

Financial Performance and Market Position

Latest Financial Results

Ambika Cotton Mills reported a profit of ₹65.74 Crore for FY25 and declared a dividend of ₹37 per share, investing ₹26.1 Crore in capital expenditure. The revenue for Q4 FY25 (March 2025) was ₹136.31 Crore, with a net profit of ₹15.86 Crore. The company has maintained profitability throughout the fiscal year despite market challenges.

Key Financial Metrics

* FY25 Annual Profit: ₹65.74 Crore

* Q4 FY25 Revenue: ₹136.31 Crore

* Q4 FY25 Net Profit: ₹15.86 Crore

* Dividend Declared (FY25): ₹37 per share

* Capex Investment (FY25): ₹26.1 Crore

* Market Capitalization: ₹900.14 Crore (as of May 26, 2025)

* P/E Ratio: 14.29

* P/B Ratio: 1.05

* 52-Week High: ₹2197.65

* 52-Week Low: ₹1273.05

Dividend and Shareholder Returns

The current dividend yield of Ambika Cotton Mills Ltd (AMBIKCO) is 2.23%. The last dividend per share was ₹35.00. The company has consistently rewarded shareholders with dividend payments, reflecting its commitment to returning value to investors.

Stock Performance and Trading Information

Ambika Cotton Mills Ltd (AMBIKCO) belongs to the Consumer Discretionary sector and Textiles sub-sector. The stock is actively traded on both NSE and BSE exchanges under the symbol AMBIKCO. The wide trading range over the past year (52-week high of ₹2197.65 and 52-week low of ₹1273.05) indicates significant volatility in the stock price.

Recent Quarterly Performance

* Q3 FY25 (December 2024): Net profit rose 9.68% to ₹14.28 Crore from ₹13.02 Crore in Q3 FY24. Sales declined 20.40% to ₹156.26 Crore from ₹196.31 Crore in Q3 FY24.

* Q2 FY25 (September 2024): Net profit rose 7.24% to ₹14.07 Crore from ₹13.12 Crore in Q2 FY24. Sales rose 0.50% to ₹200.41 Crore from ₹199.41 Crore in Q2 FY24.

Shareholding Pattern

As of the last reported quarter, the shareholding pattern for Ambika Cotton Mills Ltd is as follows:

* Promoter Holding: 50.2%

* FII Holding: 0.4%

* DII Holding: 1%

* Public Holding: 48.4%

The promoter shareholding indicates strong management control while maintaining reasonable public participation.

Industry Position and Growth

Over the last 5 years, Ambika Cotton Mills has demonstrated a strong performance, with revenue growing at a yearly rate of 5.19%, outperforming the industry average of 3%. During the same period, its market share increased modestly from 0.46% to 0.48%, indicating the company's ability to maintain and slightly expand its presence in a competitive textile industry.

The company's focus on premium cotton yarn production, particularly in the finer count range, positions it well to serve the growing demand for high-quality textile products in both domestic and international markets. Ambika Cotton Mills is almost debt-free, a strong balance sheet position that provides financial flexibility for future growth investments and operational efficiency.