Ambika Cotton Mills Ltd CMP 815

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Guru Vachaal, Sep 7, 2016.

?

Is it a value pick?

  1. Yes

    55.6%
  2. No

    44.4%
  3. Will study more

    0 vote(s)
    0.0%
  1. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    Ambika Cotton Mills Limited (ACML) based out of Coimbatore in Southern India, is engaged in the manufacture of premium quality Compact and Elitwist cotton yarn for hosiery and weaving. They are an established player in the international and domestic yarn market with exports constituting roughly sixty percent of its revenues.

    The company was incorporated in 1988 and its 4 manufacturing units are situated in Dindigul, Tamil Nadu with a total spindle capacity of 1,08,288 of Compacting System.

    Ambika Cotton Mills has the unique distinction of being the number one in the shirting segment and is the preferred client of all top quality shirt manufacturers around the world. They hold a very niche segment in the industry, thanks to their impeccable track record of product quality and delivery fulfillment.

    They also take going-green commitment very seriously and produce over 110% of its power requirement by clean wind power with installed capacity of 27.4 MW. We have 100% governmental and legal compliance record.

    Product -
    They manufacture 100% cotton compact yarn counts varying from 20s to 120s combed which goes for the manufacture of premium branded shirts and t-shirts globally.

    Their products are made from various imported and indian cotton. Contamination free cotton yarn that gives them a special niche in the market.

    Ambika’s yarn has been widely accepted and appreciated in the industry by prominent top shirt manufacturers and knitted garment manufacturers, domestically and world-wide. It is well reputed for its contamination free 100% cotton ring spun & compact yarn manufactured exclusively for shirting. Hard twist and Soft twist with 4’20 min and cylindrical dye cones for weaving, and S & Z twist yarn from counts 24’s to 140’s for knitting are also their regular notable features.

    Ambika holds the Supima certificate from Supima Association (USA), GOTS Certificate from Control Union (formerly SCAL) for organic yarn, and Oeko-Tex Certificate of Standard 100 Product Class I.

    They maintain more than adequate quantities of cotton raw materials in the extra long staple as well as medium and short range through out the year.

    Their manufacturing process is thoroughly monitored by quality control system which is unparalleled in the industry.

    CMP 815
    Market Cap 479cr
    PE 10.6
    Industry PE 12
    BV 591
    FV 10

    Dividend Track record is also good.

    Promoters 48.6 %

    Other Shareholders are:-
    Catamaran Management Services Private Limited ( Infosys co-founder Narayan Murthy is invested through this )
    Morgan stanely Asia (Singapore) PTE
    VALUE QUEST INDIA MOAT FUND LIMITED (Prof. Sanjay Bakshi is invested through this)
    VLS FINANCE LIMITED

    Mutual Fund Holding IDFC

    I am holding this stock and very bullish on it. This is mainly for mid- long term investors.

    For Traders
    Check the attachment for technicality. Price is consolidating and a nice breakout should take place in coming days/ weeks.

    [​IMG]
     

    Attached Files:

    Last edited: Sep 18, 2016
    w4wealth likes this.
  2. kharb

    kharb Well-Known Member

    Joined:
    Aug 15, 2015
    Messages:
    973
    Likes Received:
    692
    In my view in textiles, Vardhman is undisputed leader and RSWM Ltd a distance second.
     
  3. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    Weekly Chart
    [​IMG]

    Daily Chart
    [​IMG]

    I have this stock since 810 levels and feel long positions can still be made to make some profit.

    Is Rs 1000 on cards ?
    Fundamentals are not bad at all.

    CMP 894
     

    Attached Files:

    Faisal likes this.
  4. Faisal

    Faisal New Member

    Joined:
    Jun 13, 2016
    Messages:
    14
    Likes Received:
    7
    Hope dis link can be helpful too
     
  5. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    Had already gone through with this report before buying.
    Thanks for sharing it here.
     
  6. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    Faisal likes this.
  7. saturn

    saturn Member

    Joined:
    Sep 9, 2016
    Messages:
    108
    Likes Received:
    22
  8. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    Ambika Cotton Mills announced that the Board of Directors of the Company at its meeting held on 11 November 2016, has accorded its approval for the buy-back of 1,50,000 Equity Shares of face value Rs. 10 each , from all shareholders of the Company except promoters, promoter group, persons in control and persons acting in concert at a price not exceeding Rs. 1100 (Rupees One thousand One hundred only) per Equity Share ("Maximum Buyback Price") excluding transaction cost, such as brokerage, transactional charges and taxes, if any, ("Transaction Cost", for an aggregate amount of Rs. 16,50,00,000/- (Rupees Sixteen Crores Fifty Lakhs only) ("Maximum Buyback Size"), representing 4.92% of the aggregate of the total paid-up equity capital and free reserves of the Company based on the audited financial statements of the Company as on 31 March 2016.

    Further, subject to provisions of Regulation 15B(8) of the SEBI Buyback Regulations, the Company proposes to buy-back 75,000 Equity Shares for a minimum of Rs. 8,25,00,000 (Rupees Eight Crores Twenty Five Lakhs only), being [50]% of the Maximum Buyback Size ("Minimum Buyback Size").
     
  9. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    Q2 Results Declared :- 40% Jump in EPS and 8% rise in Sales + Buy Back
     
  10. D Mohan

    D Mohan Member

    Joined:
    Apr 4, 2017
    Messages:
    47
    Likes Received:
    7
    On 7th April 2017, Ambika Cotton Mills hit a 52 week of 1398.
    Opened at 1351, hit a 52 week high at 1398 and closed at 1360.
    What you think GV, Should hold or sell Ambika Cotton Mills.
     
    Guru Vachaal likes this.
  11. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    Hitting 52 weeks high is not a signal to sell. Technically, stock goes even higher when it break 52 weeks psychological barrier.

    I am not a seller here till near - mid term.

    CMP 1,400
     
    Last edited: Apr 10, 2017
    Srouta Mukherjee likes this.
  12. Kishan Ravia

    Kishan Ravia New Member

    Joined:
    Apr 16, 2017
    Messages:
    14
    Likes Received:
    16
    Excellent company to hold Onn...

    Hard to replace this stock with any other stock....

    Must hold for decent compoundings...
     
    Srouta Mukherjee and Sagar shah like this.
  13. Sagar shah

    Sagar shah New Member

    Joined:
    Apr 16, 2017
    Messages:
    9
    Likes Received:
    6
    Hard to replace ACML management with any other company's management.

    Must hold this stock in the portfolio.

    I am a stockholder at Ambika and a fan of Mr. Chandran. When I learnt about his gesture towards his junior partners, I wrote a thank you note to him.


    Here’s what he wrote back:


    I intend to live a simple life and the expenditure for that is very limited. The dividend that I receive from my Company is excess for my expenditure. The Shareholders of my company have reposed faith in me while investing in my Company and I should live up to their expectations. While they receive only dividends, I felt it should be the same for me as well.
    Source: Fundoo professor (Sanjay Bakshi)
     
    Last edited: Apr 17, 2017
  14. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

    Joined:
    Mar 28, 2015
    Messages:
    1,806
    Likes Received:
    727
    Better to hold such stock and forget instead of encash for small gain. Such good quality stock is difficult to find easily.
     
    Sagar shah likes this.
  15. Kishan Ravia

    Kishan Ravia New Member

    Joined:
    Apr 16, 2017
    Messages:
    14
    Likes Received:
    16
    forget the stock is not right strategy...its important to Re-check the fundamentals, and take the action is advisable...

    we have seen so many examples where Good company turns Grewsome...

    Hope it helps.
     
    Srouta Mukherjee and Sagar shah like this.
  16. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

    Joined:
    Mar 28, 2015
    Messages:
    1,806
    Likes Received:
    727
    100% agreed. Forget means to not look at price movement to encash gain even if fundamentals are fine. Avoid booking of profit if fundamental are fine.
     
  17. D Mohan

    D Mohan Member

    Joined:
    Apr 4, 2017
    Messages:
    47
    Likes Received:
    7
    A
    Ambika cotton is now 4.35 down. So you think it is a hold even though it falls more.
     
  18. Sagar shah

    Sagar shah New Member

    Joined:
    Apr 16, 2017
    Messages:
    9
    Likes Received:
    6
    @D Mohan you should hold it or you can accumulate more at lower levels.
     
  19. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

    Joined:
    Apr 3, 2015
    Messages:
    316
    Likes Received:
    201
    ACML stock on fire.

    20% UC

    CMP 1655.55
     
  20. Pably1981

    Pably1981 New Member

    Joined:
    Jan 5, 2018
    Messages:
    1
    Likes Received:
    0
    never heard of it. do you think it's worth starting to study it now? thanks i see in april it went down and now its up again?
     
Loading...