Ambika Cotton Mills

• Ambika Cotton Mills Ltd manufactures and sells speciality cotton yarn. 
• It is a debt free co on net basis with cash of 218 Cr on books. It works out to be 380 Rs per share. 
• For last ten years, revenue has grown at a CAG of 6% and net profit at a rate of 2%.
• OPM is 14.2% a present as compared to ten year average of 20%.
• For last four years, co is paying DPS of 35 Rs per share. At CMP of 1447, it works out to be 2.42%.
• P/BV is 0.93 times at present. 
• P/BV varies from a low of 0.5 times to peak of 2.5 times. With this criteria, share price bottom and top is 800 and 4000 Rs per share. 
• One can say it is fairly valued at present.
• It has very good support @ 1300-1350 Rs band.
• Sustainable rally in share price can be witnessed only when there is a sustainable demand for textiles.