Ambika Cotton Mills

when we see the trend of cotton inventory ( value) to turn over, it is around 30% ( max 40%) range over reasonably long period, it is almost 64% now. So it is reasonably clear that they are speculating with cotton prices. Moreover , In one AGM, Mr.Chandran himself spoke that he favours converting cash into cotton inventory rather than holding it in bank FDS…Plus when you see past annual reports of Ambika, there are good number on instances in which they have gains on inventory sales, which show that they have speculated earlier …Holding stocks for production is fine , but holding stocks for speculation is a double edged sword…If lucky, it shall benefit, otherwise , it may backfire…Lets hope Mr.Chandran and Ambika share holders are lucky …