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Axita Cotton Ltd.
(AXITA)
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Rating:39Underperform
Price Target:
₹7.50
▼(-41.45% Downside)
Action:Reiterated
Date:08/06/26
The score is held down primarily by weakened financial performance (sharp revenue decline, very thin margins, and negative operating/free cash flow) and a weak technical setup (below key moving averages with negative MACD). Valuation is also a significant drag due to the very high P/E and lack of dividend support in the provided data.
Positive Factors
Manageable leverage
Moderate leverage gives Axita some balance-sheet flexibility while it navigates volatile cotton markets and weaker earnings. Lower debt exposure can reduce financing pressure, preserve borrowing capacity, and allow management to continue funding operations without excessive reliance on external capital.
Negative Factors
Sharp revenue contraction
The steep FY2026 revenue decline demonstrates substantial volatility in Axita’s business scale and demand environment. Lower sales can reduce operating leverage, weaken procurement efficiency, and make it harder to sustain customer relationships and earnings unless volumes or cotton-market conditions recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage
Moderate leverage gives Axita some balance-sheet flexibility while it navigates volatile cotton markets and weaker earnings. Lower debt exposure can reduce financing pressure, preserve borrowing capacity, and allow management to continue funding operations without excessive reliance on external capital.
Read all positive factors
Axita Cotton Ltd. (AXITA) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.85B
Dividend Yield0.68%
Average Volume (3M)171.09K
Price to Earnings (P/E)67.7
Beta (1Y)0.37
Revenue Growth-58.44%
EPS GrowthN/A
CountryIN
Employees22
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)0.06
Shares Outstanding382,673,520
10 Day Avg. Volume120,183
30 Day Avg. Volume171,085
Financial Highlights & Ratios
PEG Ratio2.57
Price to Book (P/B)5.02
Price to Sales (P/S)0.88
P/FCF Ratio-398.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Axita Cotton Ltd. Business Overview & Revenue Model
Company Description
Axita Cotton Limited, an Indian enterprise, specializes in the production, processing, and final preparation of cotton bales and cotton seeds. The company also extends its reach globally, distributing its products to diverse international markets....
How the Company Makes Money
Axita Cotton Ltd. makes money mainly by selling cotton and cotton-related products produced or handled through its cotton processing and trading activities. Its revenue model is centered on (1) processing/handling raw cotton (e.g., converting seed...
Axita Cotton Ltd. Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
30
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.70B | 6.53B | 11.01B | 5.43B | 7.97B |
| Gross Profit | 119.92M | 146.26M | 311.30M | 235.08M | -21.16M |
| EBITDA | 9.89M | 32.32M | 290.53M | 244.32M | 224.92M |
| Net Income | 19.02M | 10.93M | 203.36M | 170.35M | 154.15M |
Balance Sheet | |||||
| Total Assets | 857.36M | 770.12M | 983.76M | 808.04M | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 249.76M | 145.99M | 57.70M | 81.44M | 36.99M |
| Total Debt | 180.85M | 20.15M | 253.23M | 60.24M | 56.03M |
| Total Liabilities | 208.24M | 145.20M | 338.12M | 284.34M | 725.09M |
| Stockholders Equity | 649.12M | 626.77M | 645.64M | 523.70M | 362.65M |
Cash Flow | |||||
| Free Cash Flow | -8.18M | 422.32M | -135.49M | 64.95M | 84.03M |
| Operating Cash Flow | -5.27M | 448.11M | -132.03M | 72.56M | 93.87M |
| Investing Cash Flow | -109.49M | -118.04M | 7.48M | -10.55M | -1.42M |
| Financing Cash Flow | 168.95M | -280.75M | 100.91M | -16.15M | -155.79M |
Axita Cotton Ltd. Technical Analysis
Negative
12.81
Price Trends
7.67
Negative
7.64
Negative
8.38
Negative
Market Momentum
-0.08
Positive
21.52
Positive
9.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AXITA, the sentiment is Negative. The current price of 12.81 is above the 20-day moving average (MA) of 7.84, above the 50-day MA of 7.67, and above the 200-day MA of 8.38, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 21.52 is Positive, neither overbought nor oversold. The STOCH value of 9.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AXITA.
Axita Cotton Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | ₹376.30B | 39.46 | ― | 0.47% | 4.20% | 10.65% | |
56 Neutral | ₹24.26B | 22.03 | ― | 0.33% | 1.48% | 7.56% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ₹1.48B | 63.68 | ― | 0.25% | 0.65% | -4.33% | |
47 Neutral | ₹165.45M | -0.09 | ― | ― | -98.74% | 20.85% | |
41 Neutral | ₹382.03M | 0.88 | ― | 0.40% | -100.00% | ― | |
39 Underperform | ₹2.85B | 67.73 | ― | 0.68% | -58.44% | ― |
* General Sector Average
IN:AXITA
Axita Cotton Ltd.
7.42
-0.19
-2.45%
IN:KPRMILL
K.P.R. Mill Limited
1,053.45
53.68
5.37%
IN:SALONA
Salona Cotspin Limited
276.95
27.66
11.09%
IN:SPAL
S.P. Apparels Ltd.
920.95
220.38
31.46%
IN:SVPGLOB
SVP Global Textiles Limited
3.15
-0.72
-18.60%
IN:WINSOME
Winsome Yarns Ltd
2.34
-644.33
-99.64%
Axita Cotton Ltd. Corporate Events
Axita Cotton Sets AGM to Approve FY26 Results, Dividend and New Auditor
Sep 5, 2026
Axita Cotton Limited has scheduled its 13th Annual General Meeting for September 30, 2026, to be conducted via video conferencing and other audio-visual means, with the registered office in Gujarat deemed as the venue. The meeting will consider ad...
Axita Cotton Sets Record Date for FY 2026 Final Dividend
Sep 5, 2026
Axita Cotton Ltd. has set September 11, 2026 as the record date to determine shareholder eligibility for a proposed final dividend of Rs 0.05 per fully paid equity share for FY 2025-26. The payout remains subject to shareholder approval at the upc...
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.