Ambika Cotton Mills Limited (AMBIKCO) AI Stock Analysis

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Ambika Cotton Mills Limited

(NSE:AMBIKCO)

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Rating:71Outperform

Price Target:INR 1,725.00▲(9.84% Upside)

Action:upgraded

Date:11/11/26

The score is driven primarily by solid financial fundamentals led by a very strong, low-risk balance sheet, offset by uneven earnings/cash-flow consistency (notably volatile multi-year cash flows and weaker FY2026 free cash flow). Valuation is favorable with a low P/E and a decent dividend yield, while technical signals are mixed with modest momentum but a negative MACD and the price still below the 100-day average.

Positive Factors

Debt-Free Balance SheetEffectively zero debt reduces solvency and refinancing risk while preserving flexibility to fund operations, maintain assets, or pursue growth without heavy interest obligations. This provides resilience during textile-cycle weakness and supports more reliable long-term capital allocation.

Negative Factors

Volatile Cash GenerationLarge swings in operating and free cash flow make the company’s earnings conversion less predictable and increase execution risk. Even with recent positive operating cash flow, weaker free cash flow can constrain reinvestment, dividends, or other uses of internally generated funds.

Ambika Cotton Mills Limited (AMBIKCO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 9.01B
Dividend Yield: 2.36%
Average Volume (3M): 747
Price to Earnings (P/E): 11.1
Beta (1Y): 0.91
Revenue Growth: 22.73%
EPS Growth: 35.27%
Country: India
Employees: 1,665
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Ambika Cotton Mills Limited Business Overview & Revenue Model

Company Description

Ambika Cotton Mills Limited is an Indian enterprise specializing in the production and global supply of specialized cotton yarns, recycled cotton fiber, and various knitted fabrics. Its textile products reach markets across India, various other Asian...

Ambika Cotton Mills Limited Financial Statement Overview

Summary

Strong balance sheet with effectively zero debt supports resilience (Balance Sheet Score 86). Profitability remains positive with FY2026 gross margin ~27.8% and net margin ~9.2%, but margins and returns have cooled from FY2022 peaks (Income Statement Score 71). The main drag is volatile cash generation and a sharp FY2026 free-cash-flow decline despite recent positive operating cash flow (Cash Flow Score 52).

Income Statement

71Positive

Balance Sheet

86Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.47B	7.81B	7.02B	8.23B	8.17B	8.79B
Gross Profit	2.51B	2.17B	1.92B	2.62B	1.64B	3.28B
EBITDA	1.33B	1.14B	1.30B	1.33B	1.81B	2.75B
Net Income	813.40M	715.60M	657.40M	629.74M	1.12B	1.80B
Balance Sheet
Total Assets	0	11.04B	11.51B	10.69B	9.80B	8.24B
Cash, Cash Equivalents and Short-Term Investments	1.99B	1.99B	2.07B	2.17B	2.77B	2.80B
Total Debt	0	0	507.20M	819.76M	0	0
Total Liabilities	-9.54B	1.50B	2.47B	2.11B	1.64B	986.75M
Stockholders Equity	9.54B	9.54B	9.04B	8.59B	8.17B	7.25B
Cash Flow
Free Cash Flow	1.27B	571.20M	1.02B	-1.89B	-982.50M	2.89B
Operating Cash Flow	1.68B	1.23B	1.29B	-1.38B	-798.20M	3.02B
Investing Cash Flow	-472.20M	-746.90M	-389.80M	-258.71M	-39.20M	-30.06M
Financing Cash Flow	-581.40M	-719.00M	-512.90M	428.68M	-264.40M	-213.69M

Ambika Cotton Mills Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price1570.50

Price Trends

50DMA1525.67Positive

100DMA1595.34Negative

200DMA1492.07Positive

Market Momentum

MACD0.61Negative

RSI62.99Neutral

STOCH59.71Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AMBIKCO, the sentiment is Positive. The current price of 1570.50 is above the 20-day moving average (MA) of 1481.37, above the 50-day MA of 1525.67, and above the 200-day MA of 1492.07, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AMBIKCO.

Ambika Cotton Mills Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AMBIKCO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:AMBIKCO	71Outperform	INR 8.94B	11.06	―	2.36%	22.73%	35.27%
IN:PRECOT	59Neutral	INR 7.67B	14.90	―	0.63%	-1.31%	47.06%
IN:RUBYMILLS	58Neutral	INR 16.06B	37.62	―	0.52%	43.42%	-5.19%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BASML	54Neutral	INR 1.81B	7.95	―	1.10%	-2.19%	132.56%
IN:RSWM	51Neutral	INR 9.41B	14.94	―	―	-5.08%	―
IN:NAHARSPING	50Neutral	INR 9.12B	6.16	―	0.39%	2.49%	249.40%

* General Sector Average

Performance Comparison

IN:AMBIKCO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AMBIKCO	Ambika Cotton Mills Limited	1570.50	290.00	22.65%
IN:BASML	Bannari Amman Spinning Mills Limited	22.79	-2.11	-8.49%
IN:NAHARSPING	Nahar Spinning Mills Ltd	258.15	54.94	27.04%
IN:PRECOT	Precot Ltd.	630.95	194.25	44.48%
IN:RSWM	RSWM Ltd	200.40	37.85	23.29%
IN:RUBYMILLS	Ruby Mills Limited	484.35	257.94	113.92%

Ambika Cotton Mills Limited Corporate Events

Ambika Cotton Mills Submits Unaudited September 2026 Results

Nov 11, 2026

Ambika Cotton Mills Limited submitted unaudited financial results and a limited review report for the quarter and six months ended September 30, 2026. The Board considered and took the results on record at its meeting on November 11, 2026.Revenue fro...

Ambika Cotton Mills Posts Strong FY 2025–26 Growth on Export Recovery

Oct 2, 2026

Ambika Cotton Mills Limited reported renewed growth in FY 2025–26, highlighting a solid recovery in both domestic and export operations. Management reiterated its long-standing focus on financial discipline, product quality and operational efficiency...

Ambika Cotton Mills Commissions 6,480 New Spindles to Boost Capacity

Sep 26, 2026

Ambika Cotton Mills Limited has commissioned 6,480 imported spindles following the arrival of new plant and machinery on 22 September 2026. The commissioning marks an expansion of its spinning capacity, which is expected to enhance operational effici...

Ambika Cotton Mills Sets Virtual 38th AGM, Updates E-Voting and Dividend Dates

Sep 2, 2026

Ambika Cotton Mills Limited has announced that its 38th Annual General Meeting will be held on 29 September 2026 via video conferencing or other audio-visual means, in line with current regulatory guidance. The meeting notice has been published in le...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 11, 2026

Ambika Cotton Mills Limited AI Stock Analysis