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Axita Cotton Ltd. (AXITA) AI Stock Analysis
Axita Cotton Ltd.
(NSE:AXITA)
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.
Axita Cotton Ltd. (AXITA) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 2.94B
- Dividend Yield
- 0.70%
- Average Volume (3M)
- 199.74K
- Price to Earnings (P/E)
- 65.7
- Beta (1Y)
- 0.32
- Revenue Growth
- -52.97%
- EPS Growth
- ―
- Country
- India
- Employees
- 22
- Sector
- General
- Sector Strength
- 55
- Industry
- Manufacturing - Textiles
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. Es...
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 co...
Axita Cotton Ltd. Financial Statement Overview
Summary
Overall financial quality is weak. Income statement profitability and growth deteriorated sharply (FY2026 revenue -43.4% with very thin net margins ~0.1%–0.5%), and cash flow is a major risk with negative operating/free cash flow in FY2026 despite positive net income. The balance sheet is comparatively steadier with generally manageable leverage, but it does not offset pressured earnings power and poor cash conversion.
Income Statement
38NegativeBalance Sheet
63PositiveCash Flow
30Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.70B | 3.70B | 6.53B | 11.01B | 5.43B | 7.97B |
| Gross Profit | 129.78M | 119.92M | 146.26M | 311.30M | 235.08M | -21.16M |
| EBITDA | 37.05M | 9.89M | 32.32M | 290.53M | 244.32M | 224.92M |
| Net Income | 16.19M | 19.02M | 10.93M | 203.36M | 170.35M | 154.15M |
Balance Sheet | ||||||
| Total Assets | 857.36M | 857.36M | 770.12M | 983.76M | 808.04M | 1.09B |
| Cash, Cash Equivalents and Short-Term Investments | 249.76M | 249.76M | 145.99M | 57.70M | 81.44M | 36.99M |
| Total Debt | 180.85M | 180.85M | 20.15M | 253.23M | 60.24M | 56.03M |
| Total Liabilities | 208.24M | 208.24M | 145.20M | 338.12M | 284.34M | 725.09M |
| Stockholders Equity | 649.12M | 649.12M | 626.77M | 645.64M | 523.70M | 362.65M |
Cash Flow | ||||||
| Free Cash Flow | -8.18M | -8.18M | 422.32M | -135.49M | 64.95M | 84.03M |
| Operating Cash Flow | -5.27M | -5.27M | 448.11M | -132.03M | 72.56M | 93.87M |
| Investing Cash Flow | -109.49M | -109.49M | -118.04M | 7.48M | -10.55M | -1.42M |
| Financing Cash Flow | 168.95M | 168.95M | -280.75M | 100.91M | -16.15M | -155.79M |
Axita Cotton Ltd. Technical Analysis
Price Trends
Market Momentum
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 7.18 is below the 20-day moving average (MA) of 7.33, below the 50-day MA of 7.67, and below the 200-day MA of 8.07, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 23.41 is Positive, neither overbought nor oversold. The STOCH value of 29.11 is Neutral, 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
Overall Rating
IN:KPRMILL76Outperform
IN:SPAL61Neutral
IN:SALONA48Neutral
IN:WINSOME47Neutral
IN:SVPGLOB42Neutral- IN:AXITA39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:KPRMILL | 76Outperform | INR 381.12B | 36.66 | ― | 0.45% | 6.43% | 24.09% |
| IN:SPAL | 61Neutral | INR 20.44B | 19.42 | ― | 0.37% | 1.48% | 7.56% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IN:SALONA | 48Neutral | INR 1.34B | 55.41 | ― | 0.27% | 0.65% | -4.33% |
| IN:WINSOME | 47Neutral | INR 165.45M | -0.09 | ― | ― | -98.74% | 20.85% |
| IN:SVPGLOB | 42Neutral | INR 519.92M | 1.13 | ― | ― | -100.00% | ― |
| IN:AXITA | 39Underperform | INR 2.76B | 65.72 | ― | 0.70% | -52.97% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:AXITA | Axita Cotton Ltd. | 7.20 | -0.40 | -5.23% | |
| IN:KPRMILL | K.P.R. Mill Limited | 1115.00 | 43.69 | 4.08% | |
| IN:SALONA | Salona Cotspin Limited | 254.80 | 3.11 | 1.24% | |
| IN:SPAL | S.P. Apparels Ltd. | 813.00 | 104.71 | 14.78% | |
| IN:SVPGLOB | SVP Global Textiles Limited | 4.11 | 0.41 | 11.08% | |
| IN:WINSOME | Winsome Yarns Ltd | 2.34 | -660.99 | -99.65% |
Axita Cotton Ltd. Corporate Events
Axita Cotton Sets AGM to Approve FY26 Results, Dividend and New Auditor
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 adopt...
Axita Cotton Sets Record Date for FY 2026 Final Dividend
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 upcomi...
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: Aug 06, 2026