Tuesday, 27 September 2022

Ambika Cotton Mills

Reasons for buying:

Buy PE was reasonable at 5.08.

The 5-year earnings average is 26% and earnings increasing since 2013 with a slight blip in 2020.

Return on equity is good at 27% but the 5-year average is 16%.

The market cap of the company is ₹931Cr.

The debt of the company is zero with ₹279 Cr cash.

Buy date: 27-Sep-2022

Qty: 6 Buy Price: ₹1,625.45 Buy EPS: ₹319.51 Buy PE: 5.08

I will stop adding when EPS drops below ₹81.27 or R1 does not satisfy.

Ambika Cotton Mills engages in the manufacture of cotton yarns for hosiery and weaving. The Textiles produces compact cotton; hard and soft twist; cylindrical dye cone; and s and z twist yarns. Geographically, the company's business is spread across the world including Asia which accounts for the majority of its revenues.

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