AMBIKA COTTON MILLS LTD

VISION:

PRODUCT SEGMENTS:

 cotton yarn manufacturing

 Premium quality compact and Eli Twist yarn, which is used in making
premium shirts.
 Company uses extra-long staple (ELS) cotton in its yarn manufacturing by
importing high quality Giza and Pima cotton from Egypt and US
respectively.
 ELS fiber provides extra strength while keeping the yarn thin. Thin yarn
finds usage in premium quality cloth of higher counts.
 capability to manufacture yarn for counts varying from 24’s to 140’s
REVENUE SEGMENTS:

 Contribution by each segment to total revenue

 Margins for each segment

CUSTOMERS:

 Customer diversification
 Customer stickyness

COMPETITORS:
 Rajapalayam mills

RISKS TO COMPANY / PRODUCTS:

Cost of capital for the company = Interest + Finance expense/Total Debt

ROE
ROCE

ROA

FINANCIAL ANALYSIS

 Sales Growth
 OPM
 PAT growth
 Effect of Raw Material price / Pricing power / Moats
 Capex through internal accrual or debt
 Cash in hand
 Free cash flow
 FCF / Sales
 Receivables & Receivable days
 Inventory & Inventory days

VALUATION ANALYSIS

 Margin of Safety
 EPS
 PE

MANAGEMENT ANALYSIS

 Dividend Payout
 Promoter stake
 Promoter holding pattern
 Directors qualification

BUSINESS ANALYSIS
  Capacity Addition
 Scope for government regulations
 Key factors for growth
o High quality raw materials imported.
 Size of opportunity
 Economics of scale

2016

 Change between Export and domestic to realize better margin.

 Company to suit its manufacturing plan according to the varied
needs of the customer.
 Power cost increased due to lack of sufficient wind power.