Posts in category All News
Rupee marginally up at 66.02 against dollar in early trade (28-08-2015)
What China’s market crash means for India (28-08-2015)
Tea with BS: Rohit Nandan, Outgoing Chairman and MD, Air India (28-08-2015)
Oberoi Realty jumps 2% after block deal (28-08-2015)
![](http://10.0.1.104:85/_media/iifl/img/article/2014-10/20/full/1413786761-6585.jpg)
Projects sale will reduce debt by Rs 1700cr: Gammon Infra (28-08-2015)
![Projects sale will reduce debt by Rs 1700cr: Gammon Infra Projects sale will reduce debt by Rs 1700cr: Gammon Infra](http://www.moneycontrol.com/news_image_files/2014/g/gammoninfra_kkmohanty_200.jpg)
Q2 volumes to remain low; expect 3-4% FY16 sales: Escorts (28-08-2015)
![Q2 volumes to remain low; expect 3-4% FY16 sales: Escorts Q2 volumes to remain low; expect 3-4% FY16 sales: Escorts](http://www.moneycontrol.com/news_image_files/2014/b/bharatmadan_200.jpg)
TTK Prestige gains on signing settlement with workers (28-08-2015)
![](http://10.0.1.104:85/_media/iifl/img/misc/2015-04/21/full/ttk-prestige-1429592258-4465300.jpg)
Ambika Cotton Mills (28-08-2015)
Trying to join this conversation and to keep it as simple as possible. -
1. Ambika Cotton is a commodity provider.
2. There seems to be a global slowdown, specially in China and Europe, US also has tepid growth.
3. Domestic demand in india is slowing down..
4. Due to 1 above, Ambika Cotton would be a cyclical.
5. Due to 2,3 above Ambika Cotton would have a rise in inventories (about the same levels as in 2010 and 2011 is seen in the balance sheet). Last 4 quarters show flattening revenue growth and I would suspect declining revenues going forward.
6. Due to slowdown in Commodity and Consumer Demand, people might want to switch to cheaper alternatives.
Which means headwinds ahead, Sales Slowdown and therefore Earnings/CFO slow down. So this should have an impact on Ambika stock prices going forward. Inventories going up and flattening sales means lack of demand..supply side constraints don't apply if demand is slow. One way to check this would be to find out who the clients of Ambika Cotton are and see their income statements for the last 10 quarters...
I know this is simple without elaborate calculations....but I am trying to understand whether this is worth my time before diving deeper. If I have made any mistakes here pls. point out and I will be grateful.